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The Incidental Science of Organizational Growth via Digital Transformation


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Simply boosting top-line metrics, such as profitability, aren't enough to position digital transformation as a success. Pervasive access to data and insights are critical as consumer demands shift alongside technological advancements. We explore the mechanisms for knowledge dissemination that answer the rapid evolution of today's world and how to push organizations up the S Curve of Growth through digital transformation.

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The Incidental Science of Organizational Growth via Digital Transformation

  1. 1. The Incidental Science of Organizational Growth via Digital Transformation
  2. 2. Fostering consistent growth means navigating inflection points using a data-informed, insights-centric strategy within a framework, such as the StoryVesting business transformation framework . The Foundation of Organizational Growth Along the S Curve of Business. S-Curve of Growth Inflection Points StoryVesting Framework
  3. 3. The people within the organization are the conduits of innovation and transformation, so employee engagement is critical to enabling digital transformation. Incremental growth of hard and soft skills of the employees is a prerequisite of transformation and the StoryVesting framework. Personnel Enablement: Enabling Your Biggest Asset. 34% of U.S. workers are engaged in their jobs U.S. EMPLOYEE ENGAGEMENT TREND % Engaged % Actively Disengaged
  4. 4. Organizations that can drive engagement among team members can reduce the stress of being present but overworked or ineffective at work. “An estimated one million workers miss work each day because of stress, costing companies an estimated $602 per employee per year.” -Health Advocate Employee Enablement & Engagement. 1,000,000 Workers miss work each day resulting in ~$602 lost funds per employee per year
  5. 5. T-Shaped employees are hyper-specialized in their area which makes it difficult to share knowledge from one department to the other creating a insights gaps between departments. V-Shaped employees are highly skilled in one area with knowledge about other roles related to theirs. T-shaped Teams vs. V-Shaped Teams. Client support ● Pains ● Motivations ● Solutions First-time buyer ● Pains ● Motivations ● Solutions V-Shaped TeamsT-Shaped Teams
  6. 6. V-Shaped team roles overlap with each other, enabling them clear communication about critical tasks driving transformation initiatives A Team Growth Mindset Accelerates Collaboration.
  7. 7. The processes you use to leverage your talent pool have a big impact on the rate of business transformation. There is an 800% productivity gap between mediocre and exceptional performers for high complexity tasks. Business Process Management. 800% 125% 85% 50%Low Complexity Medium Complexity High Complexity Very High Complexity Productivity Gap Between Complexity
  8. 8. As processes become more complex and convoluted the need for transformation management increases. Agile operations allow organizations to become more productive throughout complex initiatives. Simplifying the Complex. Agility 94% of executives say that agility is critical to their organization’s success, but only 6% believe their organization is agile today.
  9. 9. Without the right platforms to facilitate communication, you could unintentionally stunt transformation. The formation and dissemination of knowledge requires dynamic cooperation among teams and the reduction of data silos. Platforms: Democratizing Innovation. $530,000,000,000 Will be spent on cloud technologies by 2021- IDC ~90% Will be spent on multi-cloud solutions
  10. 10. Up to 35% of value-added collaborations came from only 3% - 5% of employees. - Harvard Business Review Leaders regarded by colleagues as the best information source have the lowest engagement and satisfaction scores. In Demand, Yet Disengaged. Share of colleagues wanting greater access to the person 100% Share of colleagues who consider the person an effective source of information 80% 60% 40% 20% 0 20% 40% 60% 80% 100%
  11. 11. The phenomena of the digitally-driven world changed the very fabric of how organizations reach and engage consumers, disrupting industries and putting an end to new SMBs surrendering to legacy enterprises. Digital Transformation is Changing the Playing Field. 20% Growth “Even for the tech business, this is hyper-growth. And for financial services, it’s unheard of.” - CEO Bill Harris
  12. 12. Bill Schmarzo deems that the more data and analytics get used, the more accurate, more complete, more robust, more predictive and consequently more valuable they become Schmarzo Economic Digital Asset Valuation Theorem
  13. 13. Cost Reductions Driving Digital Transformation. * Tech Pro, Cloud Industry Forum, and Ensono 70% of organizations are undergoing a digital transformation initiative with cost savings as the primary driver.* The challenge is, most of the key performance indicators (KPIs) tracking digital transformation don’t align with cost savings as the primary objective. 72% of IT respondents quoted cost savings as the primary driver... -while only 68% of business decision makers said the same Key Metrics of Digital Transformation Success Cost Savings Customer Satisfaction Profitability Customer Retention
  14. 14. We, as people, crave human interaction and the buying process is no different. Although cost reduction feels like a silver bullet solution, the exclusive focus takes the personalized interaction out of the purchase process destroying the experience. The Problem With Cost Savings As the End Goal. * Tech Pro, Cloud Industry Forum, and Ensono
  15. 15. Focusing on key elemental human behaviors is where automation, data looping, and AI deliver the most value. Aligning the organization with the emotional and cognitive triggers of the consumer can be enough to shift momentum. Digital Growth Depends on Business Models. The Growth of Organizations That Solve Fundamental Problems for Their Consumers Lyft Annual Completed Ride Growth Number of Guests Staying with Airbnb Hosts During the Summer 500M 50M 250M 100M 17M
  16. 16. When an organization says they’re too busy to undergo digital transformation, it’s a clear signal they’re resisting imminent and necessary change — and studies show many organizations don’t seem ready for the work digital transformation requires. Digital Transformation Takes Time. 82% Of organizations feel understaffed and unable to hire the software engineers they need. 72% Don’t believe they can scale to keep up with business demands. 20% Have over 50 major development requests in their backlog. * Appian and
  17. 17. Kenmore appliances saw a slow and steady decline from a healthy 40% market share to only 16% in 2016. They approached digital transformation in a last ditch effort by partnering with Amazon. While they saw a temporary spike in stock price, the partnership proved to be too little too late. Sears Slow and Steady Decline. Partnered With Amazon +15.58% $117.87B $16.7B
  18. 18. To run an intelligent operation, you shouldn’t focus on being data-driven, but rather, insights-centric. Taking an insights-centric approach is critical as you aim to tell an understandable and actionable story with data. Pervasive Insights Are the New Economies of Scale. * Tech Pro, Cloud Industry Forum, and Ensono Data - Driven vs. Insights - Centric Insights-centric cultures use data to answer the business WHY: ᅟᆞWhy behind customer behavior ᅟᆞWhy behind market shifts ᅟᆞWhy employees disengage Data-centric cultures use data to inform & validate; not drive decision making Data-driven culture goes sideways when data are used as an absolute
  19. 19. Every organizational function must work on digital transformation. Digital transformation requires the convergence of tech, data, visualization, creative, content, customer experience, user experience, human resources, and more. Accelerated Economic Value Via Pervasive Insights. * Harvard Business Review 87% Of organizations say that digitalization is do-or-die. 66% Of CEOs expect their companies to change their business models. 62% Of CEOs say they already have management transformation programs underway.
  20. 20. “GE reached too far outside its expertise and too fast, and it became a financial black hole.” - Steven Winoker, Analyst at UBS. GE threw millions of dollars at digital transformation only to be forced to cut back and take a more calculated approach. Strategic Growth is Critical in Digital Transformation. U.S.DOLLAR A Timeline of Failed Digital Transformation
  21. 21. In order to increase our level of explicit knowledge, we must cultivate an environment that’s tacit in nature. This is known as a socialisation system, which is the conversion of personal tacit knowledge and tacit knowledge shared by a group. Disseminating Tacit and Explicit Knowledge. Explicit vs. Tacit Knowledge
  22. 22. Without the right platforms to facilitate communication, you could unintentionally stunt transformation. The formation and dissemination of knowledge requires dynamic cooperation among teams and the reduction of data silos. Platforms: Democratizing Innovation. $530,000,000,000 Will be spent on cloud technologies by 2021- IDC ~90% Will be spent on multi-cloud solutions
  23. 23. The Semantic Feedback Loop. TACIT INFORMATION EXPLICIT INFORMATION Spiral Evolution of Organizational Knowledge Creation & Sharing The semantic feedback loop is how organizations build a more connected organization by disseminating both tacit and explicit knowledge. These loops continually circle and bounce between the various types of knowledge to increase productivity and drive growth.
  24. 24. The Concept of Ba. Ba is a platform and shared space for advancing individual and collective knowledge. It is the context which harbours meaning. Participating in ba means getting involved and transcending one’s own limited perspective or boundary. TACIT INFORMATION EXPLICIT INFORMATION Socialization Internalization Combination Externalization
  25. 25. Bioholonics: A Scientific Approach to the Complex. Living things create macroscopic information, consolidating the functions of each autonomous element. Like a heart, teams must beat in harmony to create a durable, trouble-free, and efficient operation.
  26. 26. Unlocking the Potential of Digital Transformation. The Four Types of Digital Maturity ●Experimented with trendier digital applications with varied success at creating value ●Have not implemented digital initiatives with a connective strategy -most digital initiatives are experiments or pilots ●They understand how to drive value with digital transformation ●They leverage proper leadership, governance, and culture to accelerate their work with digital technologies ●Use more traditional systems and unlikely to have a digital savvy leadership team in place ●Not planning any type of transformation management Digital transformation requires the intersection of two elements — digital intensity and transformation management intensity. Your organization’s digital maturity is determined by where you fall on those two axis. ● Favor prudence over innovation ● Understand the need for a strong digital vision and data governance, but are missing the advantages that can be realized from digital. TRANSFORMATION MANAGEMENT INTENSITY DIGITALINTENSITY
  27. 27. Digitari experience higher financial performance. These benefits are realized and achieved by extracting insights through the humanization of quantitative and qualitative data, and building insightful journey analytics. . Digitari Outperform the Competition. Revenue Generation Conservatives Market Value Profitability Fashionistas: Digitari: Beginners: Conservative: Fashionistas: Digitari: Beginners: Conservative: Fashionistas: Digitari: Beginners: Conservative: Fashionistas Digitari Beginners
  28. 28. The Customer Insights Map. The customer insights map is where we apply data, analytics, and insights to the traditional journey map, making knowledge more understandable and actionable organization-wide.
  29. 29. By focusing exclusively on marginalizing costs, you’re at risk of misaligning key performance indicators used to track digital transformation success. Having a holistic, combinatory system for full-scale democratization is needed to drive digital transformation. Yet few to none can say they have achieved a fully democratized digital infrastructure. Developing a synergy of efforts across the organization is the real power to driving digital transformation. Bringing it Together.
  30. 30. Insulate your business from disruption. Learn more at