How transformative is your digital vision? Have you considered: The Transformation of Market The Transformation of Business Models The Transformation of Offering The Transformation of Work The Transformation of Velocity The Transformation of Demand The Transformation of Finance The Transformative Mindset considers: Massive Transformative Purpose The Exponential Organisarion (Salim Ismail) Adaptive and emergent (Org change capability) Episodic to Continuous Strategy, Marketing, Budgeting, Capabilities Good for now, MVP, lean validation Culture of Holacracy Accountability and Self Managed Teams

1. How transformative is your digital vision?
Adapted from Terry White and George Westerman Leading Digital: Turning Technology into Business Transformation.

2. The Transformative Drivers
• The Transformation of Markets
• The Transformation of Business Models
• The Transformation of Offering
• The Transformation of Work
• The Transformation of Velocity
• The Transformation of Demand
• The Transformation of Finance

3. The Transformation of Humanity
Change Unions Nations Tribes
Phases of
Development
Before 1980
Factory and Office
Automation
Workers
From 1990…
Robotics, Robo
Advisors, Virtual
Assistants
Sapiens
From 2000…
AI and Machine
Learning,
Robots,
Digital Cyborgs
Homo Deus
From Now…

4. The Transformation of Markets
From Regulated To Self Regulating
From Brand To Commodity
From Regional To micro-Global
How customer approximated is your market?

5. The Transformation of Business Models
From Monolith To Unicorn
From Structure To Agile
From Rigid To Adaptive
How customer centric is your Business Model?

6. So, what needs to change?
Systems of record supporting your hierarchical organisation
with rigid packages that have been customised to be
outdated and bloated
Systems of engagement that support clients telephonically
backed by email and disconnected from your systems of
record but sometimes enhanced by excel
Adapted from Terry White and Leading Digital.
Traditional
?? %
20%?
80%?

7. The Transformation of Offering
From we have To want
From self serving To customer
From generalized To Personalized
How customer engaging is your offering?

8. We need to move from inside out, to outside in…
Customer and
Product
(Outside-in)
Adapted from Terry White and Leading Digital.
• Client Persona
• Client want
• Product Offer
• Service Experience
Process & methods

9. The Transformation of Work
From Projects To Products
From Deliverables To Outcomes
From Hierarchy To Flat
Is your service focus on the Products your customers want?

10. We need to shift to capabilities…
Customer and
Product
(Outside-in)
Organisation and
Operations
(Inside-out)
Adapted from Terry White and Leading Digital.
People & skills People & skills
• Digital Skills
• Human Skills
• People Profile
• Culture of Holacracy

11. The Transformation of Velocity
From Years To Weeks
From Months To Days
From Minutes To Seconds
How quickly can you adapt your offering?

12. We need fast, reliable and consistent time saving capabilities…
Customer and
Product
(Outside-in)
Organisation and
Operations
(Inside-out)
Platform and
enabling services
Technology & Tools Technology & Tools Technology & Tools
Adapted from Terry White and Leading Digital.

13. The Transformation of Demand
From Buildings To Bricks
From a Trickle To a Torrent
From Centralized To Distributed
How quickly can you deliver new products?

14. What is a capability?
People & skills
Finance and budget
Technology & Tools
Process & methods
The effective application and orchestration of your available resources

15. How much resource is currently allocated per capability bucket?
Customer and
Product
(Outside-in)
Organisation and
Operations
(Inside-out)
Platform and
enabling services
People & skills
Finance and budget
Technology & Tools
Process & methods
People & skills
Finance and budget
Technology & Tools
Process & methods
People & skills
Finance and budget
Technology & Tools
Process & methods
Are your resources allocated for customer impact?

16. The Transformation of Business Computing
Phases of
Commoditization
Transformation
Construction
Projects
Customization
Projects
Capabilities and
Continuous
Adaptation
Before 1980
Data Processing
and Industrial
Automation
Hardware and
Infrastructure
From 1980…
Information and
Communications
Technology (ICT)
Applications,
Packages and
Processes
From 2000…
Digital Business
Platforms,
Services and
People
From Now…
Adapted from Andy Kyte - Gartner

17. How much resource is currently transformative versus traditional capabilities?
Transformative Purpose ~ business imperative ~ strategic intent
Transformative
Traditional
Customer and
Product
People & skills
Finance and budget
Technology & Tools
Process & methods
People & skills
Finance and budget
Technology & Tools
Process & methods
Platform and
enabling services
People & skills
Finance and budget
Technology & Tools
Process & methods
People & skills
Finance and budget
Technology & Tools
Process & methods
Organisation and
Operations
People & skills
Finance and budget
Technology & Tools
Process & methods
People & skills
Finance and budget
Technology & Tools
Process & methods
Adapted from Terry White and Leading Digital.
?? %

18. The Transformation of Finance
From Brand To CLV
From Budget To Micro Venture
From Rigid To Adaptive
Are you practicing innovation accounting and continuous budgeting?

19. Transformative versus Traditional Capabilities?
Customer and
Product
Organisation and
Operations
Platform and
enabling services
Adapted from Terry White and Leading Digital.
Product Innovation
Capability
Innovation EngineOrg Change Capability
?? %
Transformative
Traditional

20. So, what needs to change?
Systems of record supporting organisational processes
Systems of engagement supporting clients
Adapted from Terry White and Leading Digital.
Traditional

21. The Transformation of Capabilities
From Blind Spots To Insights
From Rip and Replace To Fail Fast
From Rigid To Adaptive
How quickly can you adapt as a truly agile business?

22. Business Transformation Profile…
Customer and
Product
Organisation and
Operations
Platform and
enabling services
Adapted from Terry White and Leading Digital.
?? %
Traditional
Transformative
Systems of record supporting organisational processes
Systems of engagement supporting clients
Product Innovation
Capability
Innovation EngineOrg Change Capability

23. Increasingly transformative resource capability per layer
Customer and
Product
Organisation and
Operations
Platform and
enabling servicesTransformative
Traditional Adapted from Terry White and Leading Digital.
End of life or retire
Service traditional cash cows
Maintain regulatory compliance or meet SLA’s
Business as usual, expand and reduce risk
Improve service efficiency or cost effectiveness
Game changer / Time to market

24. How much resource is currently transformative versus traditional capabilities?
Customer and
Product
Organisation and
Operations
Platform and
enabling servicesTransformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
Adapted from Terry White and Leading Digital.

25. Transformative resource capability per bucket per layer?
Customer and
Product
Organisation and
Operations
Platform and
enabling servicesTransformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
Adapted from Terry White and Leading Digital.
Sunset Product Retire Process Retire Tool
Current Product Value Delivery Current Service Value Delivery Shared Service Value Delivery
Product regulatory compliance
Service regulatory compliance
SLA’s
Maintain or fix enabling services
Upgrade or derisk Products Upgrade or de-risk Operations
Upgrade or de-risk enabling
services
Improve Product efficiency Improve service effectiveness
Improve or enhance enabling
strategies and resources
Time to market (new products) Game changer (new markets) Enhanced or new business model
Product Innovation Capability Innovation EngineOrg Change Capability

26. Transformative measures per category?
Customer and
Product
Organisation and
Operations
Platform and
enabling servicesTransformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
Adapted from Terry White and Leading Digital.
Negative Cost to Revenue Negative Cost to Revenue Negative Cost to Revenue
Cost to Revenue – Net Profit
Margin
Benchmark Cost to Revenue Benchmark Cost to Revenue
Cost to fix versus ops cost /
customer retention cost
Reduce or contain cost to serve Reduce or contain cost to enable
MVP validation rate Revenue per employee ROI, Fixed-assets / turnover
Product validation & failure rates Improved cost to serve Payback
CAC, CLV Cash Value Added Cash Value Added

27. Customer and
Product (40 %)
Organisation and
Operations (25 %)
Platform and
enabling services
(35 %)
Transformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
3 % 5 %
10% 10 %
5 % 9 %
8 % 3 %
2 % 2 %
2 % 1 %
Increase platform and enabling services
Considering budget cycles and resource planning and allocation how much
transformative versus traditional capability is planned in the next 6 months?
Substitution, extension, transformation
Customer and
Product (30 %)
Organisation and
Operations (40 %)
Platform and
enabling services
(30%)
Transformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
3 % 5 %
10% 10 %
5 % 9 %
8 % 4 %
2 % 2 %
2 % 0 %
Adapted from Terry White and Leading Digital.
Transformative Attain 10% more customer focus

28. Report on measurable benefit progress per period
Adapted from Terry White and Leading Digital.
Transformative
• Traditional vs Transformative ratio
• Customer vs Organisation vs Enabling
• % delta Product Innovation capability
• % delta Organisational change capability
• % delta Innovation Engine
• Innovation Index ~ % Product Innovation /
Change capability + Innovation Engine
• Dissect the above :
• Per Product
• Per Department
• Per Customer segment
• By number of people
• By Geography
Customer and
Product (40 %)
Organisation and
Operations (25 %)
Platform and
enabling services
(35 %)
Transformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
3 % 5 %
10% 10 %
5 % 9 %
8 % 3 %
2 % 2 %
2 % 1 %Product
Innovation
Capability
Innovation EngineOrg Change
Capability
Period 1 to 2
Customer and
Product (40 %)
Organisation and
Operations (25 %)
Platform and
enabling services
(35 %)
Transformative
Traditional
Legacy sludge
Deliver & run
Fix & maintain
Improve continuously
Service & grow
Digital Delta
3 % 5 %
10% 10 %
5 % 9 %
8 % 3 %
2 % 2 %
2 % 1 %Product
Innovation
Capability
Innovation EngineOrg Change
Capability
Period 2 to 3

29. Great digital visions include both intent and outcome
• Intent is a picture of what needs to change
• Outcome is a measurable benefit to the company, its
customers, or its employees
• IT needs to rethink its operating model in an agile and
disruptive environment – Terry White - Ovum
George. Leading Digital: Turning Technology into Business Transformation
Harvard Business Review Press.

30. The Transformative Mindset
• Massive Transformative Purpose
• The Exponential Organisarion (Salim Ismail)
• Adaptive and emergent (Org change capability)
• Episodic to Continuous
• Strategy, Marketing, Budgeting, Capabilities
• Good for now, MVP, lean validation
• Culture of Holacracy
• Accountability and Self Managed Teams

31. Craig Terblanche
craig.terblanche@outsystems.co.za
Its time…