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Building a digital enterprise competing on capabilities dynamic cio research presentation

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Enterprises are no more in experimentation mode as far as digital is concerned. The digital technologies, and digital transformation strategies seem to be taking the center stage in the enterprise mindset. At a time when businesses doing e-commerce show a very healthy growth across Asia and other parts of the world, digital transformation is in the heart of it all. If corporations – small to medium to large – have to take the real advantage of the digital revolution, they need to come out of their apprehensions about the digital technologies and look at a total digital transform.

Investments in the digital infrastructure and commensurate focus on leadership, strategy and culture can reap huge benefits for the enterprises. Becoming a Digital Enterprise can provide market-winning capabilities an enterprise may require to compete.

Kapil Dev Singh is a sought-after authority on Organization Change and Development. He regularly advises CXOs on leadership development in the context of their roles and business needs of their organizations. He is the Founder of Coeus Age, which brings new age perspectives on Change Consulting, Change Leadership and Change Technology. Kapil has over two decades of rich experience and headed IDC in India for close to 8 years as a Country Manager. He is an Engineer, and an MBA. He is also a doctorate from Management Development Institute, Gurgaon, India. His doctoral thesis dealt with the phenomenon of CIO Role Effectiveness.

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Building a digital enterprise competing on capabilities dynamic cio research presentation

  1. 1. Competing on Capabilities Building a Digital Enterprise & A Research initiative of Kapil Dev Singh Coeus Age
  2. 2. The Research  What is a Digital Enterprise?  How to Operationalize the Definition of a Digital Enterprise?  Understanding Capability? OBJECTIVES DESIGN  30+ face to face Interviews  Secondary Research/ Literature Review  116 CIOs’ Survey
  3. 3. Put Capability in the Centre Social, mobile devices and apps, analytics/ big data, cloud, open standards, RFID/ sensors , semantic web, interoperability, web services, middleware, other new technologies Social shifts leading to empowerment of youth, global shifts, connected and content consuming generation, aspirational, value seeking, power defiant Many yet fleeting opportunities, collaborations and weak ties, pressure on revenue, cost challengers, new aggregators, digital value chain Customers Institutionalized Entrepreneurship Digital Enterprise Capability Stable Enterprise Enabling Leadership Digital Infrastructure Empowered People Digital Strategy Digital Boundary Communication/ Collaboration Digital Culture Enabling Mechanisms Performing and Innovation culture
  4. 4. Processes Build Capability  Relevance, Awareness, Leverage and Imitability  Capabilities are - Processes (as the building blocks) - Competitive success on transforming key processes into strategic capabilities - Strategic investments in support infrastructure that links SBUs and functions - Champion of a capability based strategy is the CEO Intentions Capability Outcomes  New Product/ Service Development & Differentiation  Customer Centricity  Cost Leadership  Change Readiness  Leadership Development
  5. 5. 7 Aspects Define a Digital Enterprise Institutionalized Entrepreneurship Digital Enterprise Capability Stable Enterprise Digital Leadership Digital Infrastructure Empowered People Digital Strategy Digital Boundary Communication/ Collaboration Digital Culture Enabling Mechanisms Performing and Innovation culture Digital Market Place/ Value Chain 1 2 3 4 5 6 7 Customers
  6. 6. Digital Enterprise as the Engine of Capability  Digital Enterprise is an IT driven business model created either in response to the emerging digital market place and digital value chains or with the desire to create such shifts or both  The Digital Enterprise is built upon the use of IT to automate the processes (both internal and external) to create a digital boundary enabling all stakeholder interactions. This also creates immense amount of information to be consumed and acted upon  The automational and the informational side of a digital enterprise is converted into a transformational drive through the right digital leadership, a fitting digital strategy and a supportive digital culture  Digital Enterprise thrives upon digital capabilities to compete in the market place, which requires an ‘inside-out’ view of strategy to compliment the ‘outside- in’ view  Digital Enterprise is built upon an agile and responsive digital infrastructure to support the automational, informational and the transformational drive
  7. 7. Digital Enterprise Framework Digital Leadership Digital Strategy Digital Boundary Digital Culture Digital Infrastructure Digital Capability & its Leverage Digital Market Place/ Value Chain 116 Enterprises Low Digital Score Medium Digital Score High Digital Score 18% 51% 31%
  8. 8. Be the First Mover  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. IT savvy Customers 2. Customers willing to transact online 3. Competitors use IT to compete 4. Competitors invest significantly on IT 5. Players from other industries are entering 6. The distributors are IT savvy 7. New IT based distributors emerging 8. Suppliers in our industry are IT savvy 9. New IT based supply intermediaries emerging 10.Institutions promote use of IT Response Low Medium High Respond to Others 33.3 10.2 5.6 First Movers 14.3 33.9 52.8 Competitive Market 52.4 54.2 41.7 New Digital Business 0.0 1.7 0.0 116 Enterprises
  9. 9. Generate CXO Pull  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. CEO’s participation and guidance 2. CXOs’ participation and guidance 3. Pull for IT projects from the users 4. Cordial relationships between IT and Business 5. No power struggle regarding IT 6. Agreement on CIO’s role 7. Adequate IT budgets 3.5 4.8 5.9 Low Medium High 116 EnterprisesOn a 7 point scale
  10. 10. Create Digital Boundary  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. Core Business Operations 2. Supporting Operations 3. Finance & Accounts 4. Business Planning, Demand Forecasting, Other Management Processes 5. HR & Admin. 6. Purchase 7. Sales/ Marketing/ Customer Services 8. Inter-organizational processes with the customers 9. Inter-organizational processes with the suppliers 10.Inter-organizational processes with the distributors/ dealers 11.Inter-organizational processes with external institutions 12.Inter-organizational processes with business partners 116 Enterprises 10%= transactions are completely manual and very low level of digitization 30%= transactions are generally manual with some isolated digitization 60%= transactions are generally digitized with some manual intervention 90%= transactions are completely digitized with very low of manual intervention 29% 51% 61% Low Medium High
  11. 11. Define New Structure & Architecture  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. The business strategy clearly indicates the role of IT 2. The IT strategy is developed in concurrence with the business strategy 3. The IT strategy is developed using inputs from all concerned 4. Specific roles and responsibilities to support the business and IT strategy are well defined 5. The governance structure to support the IT strategy implementation is well defined 6. The governance structure to support the IT strategy implementation is well practiced 7. The processes and practices to support the IT strategy implementation are in place 8. Enterprise Architecture Defined and Implemented 116 EnterprisesOn a 7 point scale 4.0 5.5 6.2 Low Medium High
  12. 12. Skillfully Leverage Information  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. Business decisions are generally based on facts, with or without IT 2. There is adequate level of collaboration among the employees, groups and functions, with or without IT 3. The top management exploits the information available from the enterprise IT system to take decisions 4. There is one instance of any information available from the enterprise IT system 5. The top management encourages middle and junior managers to participate and use information from the enterprise IT system 6. The employees participate in IT enabled processes and transactions 7. The employees leverage the information available from the enterprise system 8. The employees generally talk positive about their experience with IT 9. The meetings and discussions often use information available from the enterprise system 10.The employees are skilled to identify the right information and use it effectively 11.IT has created collaboration among employees, groups, functions 12.The partners/ suppliers participate in IT driven processes` 13.The partners/ suppliers generally talk positive about their experience with IT 14.The customers generally talk positive about their experience with IT 116 EnterprisesOn a 7 point scale 4.0 5.4 6.0 Low Medium High
  13. 13. Build an Agile IT Infrastructure  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability 1. IT planning and management processes 2. Regular update of IT management policies and processes 3. Adequate IT infrastructure (computing, storage and networking) 4. Consolidated, rationalized and optimized data centre 5. BCDR site outside the organizational premises 6. Adequate IT security infrastructure, processes and policies 7. New generation technologies underlying the IT infrastructure 8. Complete suite of enterprise applications 9. Complete range of supplier facing applications 10.Complete range of customer facing applications 11.Applications well integrated within the enterprise boundaries 12.Enterprise applications well integrated with external stakeholders’ (partners, suppliers, banks etc.) systems 13.New generation technologies underlying the enterprise applications 14.Multiple digital channels for the customers (web, mobile apps, call centre) 15.Multiple digital channels for the partners & suppliers (web, mobile apps, call centre) 16.Architecture defined at data level 17.Architecture defined at application level 18.Architecture defined at technology level 19.Architecture defined at communications level 20.A unified communications technology platform 21.IT skills development and training processes 22.New technology identification and development processes 23.BYOD policy 116 EnterprisesOn a 7 point scale 3.7 5.3 5.9 Low Medium High
  14. 14. Invest in Catalyst Technologies 3.1 3.0 3.0 2.9 2.9 2.9 2.9 2.8 2.8 2.7 2.7 2.6 2.5 2.5 2.2 2.2 2.1 2.0 1.9 1.0 2.0 3.0 4.0 Server Virtualization Network Optimization Enterprise Portal Video/ Web Conferencing Web Services Storage Virtualization Content and Document… IT Workflow Management Web Publishing Business Process Management Application Modernization Data Management Platform Middleware Services Oriented Architecture Storage Defined Storage Desktop Virtualization Software Defined Network NoSQL Database RFID/ Sensors Neither Owning/ Nor Planning Owning and Planning 116 Enterprises
  15. 15. Use Core and Catalyst Technologies to Build 6 Foundation Layers • Information, Aesthetics, Access, SpeedExperience Layer • Digitized, Secured, Dynamically RetrievableDocuments Layer • Automated, Agile, Managed , ContextualizedProcess Layer • Integrated, Open, Managed, Optimized, OrchestratedApplication Layer • Secured, Quality, RationalizedData Layer • Automated, Consolidated, Standardized, Optimized, VirtualizedIT Infra Layer
  16. 16. Deploy SMAC+ Technologies Neither Owning/ Nor Planning Owning and Planning 2.9 2.8 2.8 2.6 2.5 2.5 2.4 2.4 2.2 2.1 2.1 2.0 1.9 1.9 1.8 1 2 3 4 Mobile Applications Business Intelligence Mobile Apps APIs Infrastructure on Cloud Application on Cloud Mobile Devices Management Platform on Cloud Enterprise Social Platform Mobile Platform Middleware Big Data Business Processes on Cloud Social CRM Social Analytics Cloud Orchestration/ Broker 116 Enterprises
  17. 17. The SMAC+ Journey Move from Casual Flirting to Serious Performing First experience with SMAC+ by adopting on a piece-meal basis. Mostly at the periphery, these are low hanging fruits and isolated initiatives. The exuberance, however, is high. The flirting with individual elements of SMAC+ and the resulting experience and learning often evolves into focused build up around one or more elements. However, the build up remains largely separate and isolated The maturity in more than one elements of SMAC+ and the resulting learning prompts enterprises to look at converging them together. E.g. how mobility and social CRM or cloud and analytics converge A highly converged SMAC+ platform also means that the underlying IT also has evolved to support it. A new enterprise architecture, a matured IT base, digital leadership, strategy, culture and skills sets are natural allies for SMAC+ to give performance benefits Flirting Building Converging Performing Digital Infrastructure Experience Applications Data IT Infrastructure Document Management Process Information, Aesthetics, Access, Speed Digitized, Secured, Dynamic Retrieval Automated, Agile, Managed , Contextualized Integrated, Open, Managed, Optimized, Orchestrated Secured, Quality, Rationalized Automated, Consolidated, Standardized, Optimized, Virtualized
  18. 18. Identify the Limiting Factors Flirting Building Converging Performing Digital Infrastructure Experience Applications Data IT Infrastructure Document Management Process Information, Aesthetics, Access, Speed Digitized, Secured, Dynamic Retrieval Automated, Agile, Managed , Contextualized Integrated, Open, Managed, Optimized, Orchestrated Secured, Quality, Rationalized Automated, Consolidated, Standardized, Optimized, Virtualized Limited by Silos or by Weak Foundation Limited by Focus Limited by Leverage
  19. 19. Can You Reverse the Pareto? Flirting Building Converging Performing Digital Infrastructure 45% 37% 14% 03% 116 Enterprises Low 61.9% 28.6% 9.5% 0.0% Medium 42.4% 49.2% 8.5% 0.0% High 41.7% 22.2% 27.8% 8.3%
  20. 20. Strategically Exploit Digital Capability Capability and its Strategic Exploit Low Medium High % % % No Unique Business Capability 14.3 10.2 0.0 Unique Business Capabilities but not Leveraged 57.1 23.7 19.4 Unique Business Capabilities for Temporary Edge 14.3 30.5 25.0 Unique Business Capabilities for Sustained Edge 14.3 35.6 55.6 IT and Capability Low Medium High % % % Minimal IT Impact 0.0 1.7 2.8 Isolated Processes Made Efficient 30.0 3.4 2.8 Multiple Processes Made Efficient 30.0 11.9 11.1 Process Capabilities in Certain Fns. 25.0 20.3 2.8 Process Capability at the Orgn. Level 10.0 35.6 50.0 Revenue Enhancement 5.0 27.1 30.6 1 2  Digital Market Place/ Value Chain  Digital Leadership  Digital Boundary  Digital Strategy  Digital Culture  Digital Infrastructure  Digital Capability
  21. 21. Putting Capability at the Centre of the Enterprise 1. What are your organization’s capabilities? Structures and Practices Culture Leadership and Strategy Strategy (Change) Leadership Technology 2. Is your organization exploiting its capabilities? 3. Is your organization aware of its capabilities? 4. Are these capabilities in synch with the market realities? 5. What current capabilities does the organization need? 6. How to build these capabilities? 7. How to develop the 6 defining aspects to build the required capabilities?
  22. 22. Influence Change!  Digital Enterprise is a business paradigm and a much broader concept than currently understood and appreciated  The Digital Enterprise Framework and the instrument can help an organization map its current digital reality  Focus on Organization Capability as the central theme, answer the 7 questions
  23. 23. Thank You ! Kapil Dev Singh Founder, Coeus Age 98117 71187 | kds@kdsnext.com www.coeusage.com www.cioleadingchange.com www.emergententerprise.com #dskapil & A Research initiative of

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