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What's Digital Transformation?


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- The stories of digital transformation
- What is digital transformation?
- Digital transformation governance

Published in: Technology
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What's Digital Transformation?

  2. 2. HAI PHAM 1. ITLC is my brother! 2. Business Technology Consultant 3. Funny boy ;-) 4. https://www.facebook. com/haipham.openco nsultant 5. haipham@openconsu 2
  3. 3. CONTENT • The stories of digital transformation • What is digital transformation? • Digital transformation governance 3
  5. 5. 1. Starbucks Company Overview • Coffee business • The world largest specialty food retailer • One of the most globally recognized brand • Billion dollar enterprise Problems & Opportunities “Everything we are doing in digital is about enhancing and strengthening those connections with our customers in only the way that digital can and only the way that Starbucks can” - Adam Brotman - Chief Digital Officer 5
  6. 6. 1. Starbucks Strategies/ Actions • Organize digital capabilities CIO created “Starbucks Digital Ventures” as an internal incubator for digital technology • Leverage mobile channel to enhance customer’s Starbucks experience Mobile payment via Square payment system Integrate application with Apple’s native Passbook feature, which consolidates ticket, coupon and loyalty cards information on iPhone for convenient access. 6
  7. 7. 1. Starbucks Strategies/ Actions • Engage customer via social media Use social media to fuel customer-driven innovation via “My Starbucks Idea” site to collect over 50 thousand customer-submitted ideas to improve products, customer experience and corporate initiatives • Bridging offline and online customer experience The “Starbucks Digital Network” offers in-store customers premium digital content delivered via free WiFi connection. 7
  8. 8. 1. Starbucks Results • “Digital has to help our store partners and help the company be the way we can tell our story, build our brand, and have a relationship with a customer”. Adam Brotman – CDO • Reduce transaction charges, lower operating costs 8
  9. 9. 2. Walmart Company Overview • The world’s largest company by revenue • Biggest private employer • The world largest grocery retailer in U.S Problems & Opportunities • In 2011, Walmart was struggling to break new ground with online business • E-commerce site was lacking intuitive search and unable to connect with store or supply chain 9
  10. 10. 2. Walmart Strategies/ Actions • Established Global eCommerce Division in 2010 Run ten websites worldwide Build and test technology at WalmartLabs • WalmartLabs Digital innovation center Idea incubator • build products that seamlessly integrate the online and in-store shopping experiences for millions of customers • mobile app with personalized experiences such as ShopyCat, Goodie • Focus on Digital & Offline • “Save money. Live better” • Social media + Big data >> Personalize customer experience 10
  11. 11. 2. Walmart 11 • 245 million customers visiting 10,900 stores • 10 active websites across the globe How Big Data Analysis helped increase Walmart’s Sales turnover? Walmart started making use of big data analytics much before the term Big Data became popular in the industry • In 2012, 10 node Hadoop cluster to a 250 node Hadoop cluster. • 10 different websites into a single website so that all the unstructured data generated is collected into a new Hadoop cluster  Walmart processes multiple Terabytes of new data and petabytes of historical data every day.  The analysis covers millions of products and 100’s of millions customers from different sources.  The analytics systems at Walmart analyse close to 100 million keywords on daily basis to optimize the bidding of each keyword.
  12. 12. 2. Walmart 12 How Big Data Analysis helped increase Walmart’s Sales turnover? Big Data Analytics Solutions How Walmart is tracking its customers? How Walmart is making a real difference to increase sales? How walmart become amazon compete?
  13. 13. 2. Walmart 13 How Big Data Analysis helped increase Walmart’s Sales turnover? Social Genome Social Media Big Data Solutions Shopycat- Gift Predictive Mobile Big Data Analytics Solutions Social Genome is a big data analytics solution developed by WalmartLabs Shopycat app will help you buy the ideal gift for your friend during the holiday buying rush
  14. 14. 2. Walmart Results • Between 2011 and 2014, Walmart’s e-commerce sales grew nearly 150% from $4.9 billion to $12.2 billion. • Gain extra revenue from digital service • Keep relationship with customer and wholesalers, retailers Lesson learnt • Digital savvy leadership • Build a culture of innovation • Strategic Acquisitions to bolster digital capabilities 14
  15. 15. 3. Volvo Cars Company Overview • Small player in 2010 • Relies on the network of 2300 local dealers in 100 countries Problems & Opportunities • “Nowadays, you don’t sell a car. You sell a transportation solution, and it should be as efficient and smooth as possible. Looking into the future, we might say we don’t sell a transportation solution, we sell an experience". Timo Paulsson, Senior Manager Ownership Services and Brand Protection for VCC global 15
  16. 16. 3. Volvo Cars Strategies/ Actions • Business model transformation from B2B to B2B and B2C • Launch new digital services Via social channels (Portal, Facebook, Twitter, Youtube) Mobility • Connected car concepts: Embedding mobile technologies in vehicles to enhance customer experience • Build capabilities at global levels: Implement global CRM Implement analytical capabilities Results • Gain extra revenue from digital service • Keep relationship with customer and wholesalers, retailers 16
  18. 18. Building Blocks of Digital Transformation 18 Business model Customer experience Operational process Digital capabilities
  19. 19. 19 Digital Transformation Framework (Capgemini Consulting)
  20. 20. Business Model 20 1
  21. 21. Business Model Transformation Offline Online 21
  22. 22. New Business Model 22 When someone needs to buy a TV…  Compare price from different stores  Review products  Better brand awareness • Traditional way Dien May, Nguyen Kim, Gia Thanh offline stores • Modern way
  23. 23. New Business Model Alezaa Cloud Reader – Instant online reading 23 Values: • Reader can buy more eBooks at cheaper price • Protect copyright • Enormous book storage (10000 items)
  24. 24. New Business Model Aim to be Vietnam Amazon Online electronics and household appliances marketplace 24
  25. 25. New Business Model Top 3 Viet Nam Real Estate Listing Connecting: Broker, End-User, Buyer 25
  26. 26. Customer Experience 26 2
  27. 27. Customer experience transformation • Better customer understanding • Increase customer touch points • Customer analytics supports decision making on manufacturing, marketing, investment etc. 27
  28. 28. Customer experience transformation L’Oréal Case Study 28
  29. 29. Operational Process 29 3
  30. 30. Operational Process Transformation • Internal data-driven • Internal analytics • Better productivity management • Collaborative workspace 30
  31. 31. Building blocks of the digital transformation 31 4
  32. 32. Digital Capabilities Transformation • The foundation of business model, customer experience and operational capabilities transformation Analytics Capabilities Business & IT integration Knowledge management Business data analysis for business planning Product/Service innovation 32
  34. 34. DT Governance 34
  35. 35. DT Governance 1. Silo 35 • Each business unit can have its own strategy and budget for digital initiatives • No enterprise-level coordination • Digital operations developed and managed in business units
  36. 36. DT Governance Central coordination 36 • Digital strategy defined at enterprise level • Digital initiatives funded and coordinated at enterprise level • Digital operations developed and managed in business units
  37. 37. DT Governance Less coordination 37 • Digital strategy defined by central unit, although local business units can have their own strategies • Local business units develop and manage operations, but must use solutions and resources from dedicated business unit when available
  38. 38. DT Governance More coordination 38 • Digital strategy set by a dedicated business unit. • Local business unit digital strategies and budgets are coordinated across the company • Local business units develop and manage operations, but must use solutions and resources from dedicated business unit when available
  39. 39. DT Investment 4 investment types: 1. Economic 2. Burning platform 3. Strategic foundation investment 4. Low-risk experiment 39
  40. 40. Digital maturity matrix 40
  41. 41. DT challenges 41 Start •Lack of financial commitment •Lack of experiences •ROI calculation Execute •Lack of required skills •Cultural issue •Limited internal IT resources •Unclear/Ambitious SOW Develop •Daunting Trials and fails process •Require high adaptabilities to changes
  42. 42. HẾT BÀI. CAFE THÔI ;-) 42