Presented at the SIM Austin IT Symposium. All rights reserved.

1. 1
• Opening Keynote: What is Digital Transformation, Really?
• Wikipedia defines Digital transformation as referring to the changes associated with the application of
digital technology in all aspects of human society. Digital transformation may be thought as the third
stage of embracing digital technologies: digital competence → digital literacy → digital
transformation. It’s application to business is a subset of that but in execution has fallen into the
buzzword trap. Jim will walk through the real drivers, the real needs, the real uses in the real world,
why it is important and what, when, where, why and how of IT departments’ role in making it real.
• 9:00 AM
• Opening Keynote: What is Digital Transformation, Really?
• Room: 1-5
• Speaker: Jim Stikeleather
• 9:45 AM
• Coffee Break and Networking

2. 2
Change fixes the past.
Transformation creates the
future. Innovation is the root of
Transformation.
Jim Stikeleather
Chief Innovation Officer for Dell

3. 3
Begin with the end in mind…
“Generalship is more like gardening than
playing chess”
The digital services economy is forcing
organizations to re-evaluate traditional
operating models, including their
approach to enterprise content
management, to not only survive but get
ahead of the competition. For
organizations to stay relevant and
competitive they need to be constantly
innovating. That means traditional models
of infrastructure, applications and
operations need to change, moving
toward a more dynamic and adaptable
operating model.

4. 4

5. 5
CEO Perspectives

6. 6
Corporate Churn
of Fortune
500 firms that
existed in
1955 do not
exist in 2014*
89%
* www.aei-ideas.org/2014/08/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction
** www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever
S&P 500 Firms Avg.
Life**
1958 – 61 Years
2013 – 18 Years

7. 7
70% of CIOs

8. 8
Digital transformation is not about “better, faster, cheaper”*…
Business
Models
Management
Products and
Services
Processes
Marketing
New ideas + Forward-thinking + Feasible + Viable + Valuable
Innovation is the process that takes new ideas and implements them
in a way that creates value by solving unmet needs.
it is about innovation

9. 9
Fishing Trip

10. 10

11. 11
The CEO Perspective of this:
The purpose of the
20th century firm:
The purpose of the
21st century firm:
To minimize
transaction costs
and achieve scalable
efficiency
To accelerate
capability
building and
effectively
apply that
capability to
innovation
Creating
new
value —
better &
faster
New view:
Socially-
enabled
enterprise
operating in a
digital
business
ecosystem
IT is essential to
enabling firms to
evolve and
innovate with
information
driven value
creation
Systems of Record Systems of Engagement

12. 12
Prescriptive
Analytics
Descriptive
Analytics
Predictive
Analytics
Exploratory
Analytics
And coming–Systems of “complete” automation
Internet of Things
Tagged items: RFID,
NFC, wireless sensors,
household appliances
Industrial Internet
Integration of complex
machinery with network
sensors and software,
includes: IoT, M2M and has
machine learning, big data
capabilities in real-time
Web of Things
Every day devices with
embedded device or computer,
connected by fully integrating
to the web, utilizes web
standards
Machine to
Machine
Networking: Wired
and wireless
technologies that
link systems of the
same type
Big
data
Analog data
Machine
learning
Real-time

13. 13
Descriptive
Predictive
PrescriptiveExploratory
Cynefin

14. 14
Organic behavior: Organization, Service, Product
Conceptualize&Decide
Observe&Comprehend
Orient & Communicate
Act in Collaboration
Derived from:
Trilogy Model Knowledge
Creation Process
Methusael B. Cebrian
College of Education
Capitol University, Phillipines
Integration of the
• OODA Loop
US AirForce Colonel John Boyd
• SECI Model
Socialization, Externalization,
Combination and Internalization
Professor Ikujiro Nonaka of
Japan Institute of Science &Technology
• Oinas-Kukkonen
Organizational Knowledge Creation and
Management Framework
Harri Oinas-Kukkonen
University of Oulu, Finland
Stanford University, USA

15. 15
Digital Transformation Goal – A Software Defined
Enterprise
A software-defined enterprise is one that uses the power of software to keep redefining itself, rather than being
locked into operating in a specific way. It instantiates its business processes in easily reconfigurable and extensible
software that gives it the agility to rapidly morph its operations to adapt to newly emerging business opportunities
and challenges.
Now The Future
Know Competition Unpredictable
Owned Assets Shared
Planned Innovation Iterative
Paced Deployment Instant
Countable Customer Infinite
Enterprise

16. 16
But reality*
Digital transformation is being used for catching up to customers and staff
Degreeofadoption
Time
Technological
development
Technological adoption
by people
Technological adoption
typical company
Technological adoption
laggard company
Digital
transformation
Digital business
transformation
* Alain Veuve – www.alainveuve.ch

17. 17
Engineered
efficiency
@ scale
• Management control
• Standardization
• Specialization
• Centralization
• Expertise
• Hierarchy
• Alignment
• Conformance
• Predictability
• Extrinsic rewards
• Closed
Emergent
efficacy
@ moment
• Engagement
• Freedom
• Diversity
• Mash-ability
• Disaggregation
• Collective intelligence
• Community
• Experimentation
• Opt-in
• Serendipity
• Intrinsic rewards
• Open
Scale Adaptability
Efficiency Innovation
Discipline Engagement
Delivery Application
Transactional models
Production separate from consumption
Systems of record
Social/Eco-models
Production co-resident with consumption
Systems of engagement
Transformation of business/management/
operational models & IT
Past Future
• Absolute integrity
• Data at rest
• Structured data
• Static
• Absolute insight
• Data in motion
• Unstructured data
• Dynamic

18. 18
Three necessary dimensions of success:
Visionary
business
leader
Attitude
Pragmatist
• Interactions &
relationships
• Resources &
allocations
• Outcomes &
activities
• Questions & focus
Focus
Innovation and what
creates value for
your customers
What you do better
than anyone else
What you are
required to for legal
or regulatory
reasons
Received Wisdom?
Tradition?
Physics?
What to Start, Stop,
Do Differently?
Technology & business models
Standardize
Simplify
Automate
Future-ready
What will you
give up?
What will you
do new?
What will you do
differently?
What can others
do for you?
Anticipate Lead Architect Govern Procure Provision Monitor Manage
Build Own Deliver

19. Change is reversible,
Transformation is not.
Stike_Stikeleather@dell.com
Twitter: @stikeyoda
www.InnovateBusinessIT.com
http://www.managementexchange.com/users/jim-stikeleather
http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185