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The Five Components of a Great Digital Strategy

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When people talk about a “digital transformation”, they typically focus on a few parts of the process – and a lot of the cool technology. This presentation talks about the five core components that a Great Digital Strategy should include – and a (possibly) surprising idea about where that focus truly belongs.

(Interested in seeing this preso, or talking more? Contact me via LinkedIn!!)

Published in: Leadership & Management
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The Five Components of a Great Digital Strategy

  1. 1. digital The Five Components of a Great Digital Strategy 28 Feb 2017
  2. 2. A Digital Business will only succeed when it understands how to connect with people.
  3. 3. A Digital Business will only succeed when it understands how to connect with people.
  4. 4. digital
  5. 5. digital
  6. 6. digital The Five Components of a Great Digital Strategy 28 Feb 2017
  7. 7. Customers Operations Products
  8. 8. Data Customers Operations Products
  9. 9. Team Data Customers Operations Products
  10. 10. Team Customers
  11. 11. A Digital Strategy will only succeed with the right emphasis on  design thinking  human factors  teams that matter
  12. 12. A Digital Business will only succeed when it understands how to connect with people.
  13. 13. Ideas Applied Technology – Internal Operations – Customer Relationships – Products & Services Binding Agent – Seven Links in the Data Value Chain Heart and Soul – Human Factors – Building Great Teams – Engagement Five Components of a Great Digital Strategy
  14. 14. Operations
  15. 15. Enterprise Resource Planning (ERP) … information technology must be conceived of broadly to encompass the information that businesses create and use as well as a wide spectrum of increasingly convergent and linked technologies that process the information ... An important concept that highlights the role of information technology in competition is the “value chain.” This concept divides a company’s activities into the technologically and economically distinct activities it performs to do business. … To gain competitive advantage over its rivals, a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation and a premium price (more value). Transforming the Value Chain How Information Gives You Competitive Advantage, Porter + Millar, HBR July 1985
  16. 16. 17 3 Critical Process Review 4 Business Structure ` 5 Organization Design 6 Budget (Capital / Expense) 7 Benefits Identification 8 Success Metrics Defined 10 Business Structure (Configuration) 11 Master Data (Design / Validation) 12 To Be Processes (Detail Review) 13 Final Implementation Plan 15 Master Data (Build) 16 To Be Process (Configuration) 17 Gap Development 18 System Test 19 Training Development 20 Go Live Planning 21 On-Site Kaizen / DITL 23 Go Live Team Coordination 24 System Training 25 Physical Inventory 26 Go Live Weekend 27 On Site Support 29 On Site Support 30 Process Review 32 RF for Warehouses / LTs 33 Desktop Access to SAP 34 Training Facilities Resource Extimates ==> Finance (includes Master Data) Operations (Manufacturing, Warehouse) Back Office (Customer Service, Procurement, PIC) HR / IT 28 31 Christmas Thanksgiving 1 2 9 14 22 Operations IT Infrastructure MemorialDay Sun, 5/1Fri, 4/1Candidate go-live dates >>> Apr May JunNov Dec Jan Feb MarAug Sep Oct Opportunity Concept Design Development Implementation LaborDay Q2 11 Apr May JunJan Feb Mar Q3 10 Q1 11Q4 10 Aug Sep Oct Nov Dec Go-Live May 1, 2011 Concept Tollgate September 2010
  17. 17. 18 3 Critical Process Review 4 Business Structure ` 5 Organization Design 6 Budget (Capital / Expense) 7 Benefits Identification 8 Success Metrics Defined 10 Business Structure (Configuration) 11 Master Data (Design / Validation) 12 To Be Processes (Detail Review) 13 Final Implementation Plan 15 Master Data (Build) 16 To Be Process (Configuration) 17 Gap Development 18 System Test 19 Training Development 20 Go Live Planning 21 On-Site Kaizen / DITL 23 Go Live Team Coordination 24 System Training 25 Physical Inventory 26 Go Live Weekend 27 On Site Support 29 On Site Support 30 Process Review 32 RF for Warehouses / LTs 33 Desktop Access to SAP 34 Training Facilities Resource Extimates ==> Finance (includes Master Data) Operations (Manufacturing, Warehouse) Back Office (Customer Service, Procurement, PIC) HR / IT 28 31 Christmas Thanksgiving 1 2 9 14 22 Operations IT Infrastructure MemorialDay Sun, 5/1Fri, 4/1Candidate go-live dates >>> Apr May JunNov Dec Jan Feb MarAug Sep Oct Opportunity Concept Design Development Implementation LaborDay Q2 11 Apr May JunJan Feb Mar Q3 10 Q1 11Q4 10 Aug Sep Oct Nov Dec Go-Live May 1, 2011 Concept Tollgate September 2010 Master Data starts early … … and never really stops …
  18. 18. Internal Operations Inform Customer, Product Systems  Master Data Management  Transactional Discipline  Planning for Complexity  Standard Work, Consistent Process
  19. 19. Internal Operations Inform Customer, Product Systems  Master Data Management  Transactional Discipline  Planning for Complexity  Standard Work, Consistent Process Engaging User Interface Process Flexibility Reducing Complexity
  20. 20. integration
  21. 21. Customers
  22. 22. CRM eCommerce Marketing The Internet changes our customer relationships Internet technology provides better opportunities for companies to establish distinctive strategic positionings than did previous generations of information technology. Ultimately, strategies that integrate the Internet and traditional competitive advantages and ways of competing should win in many industries. On the demand side, most buyers will value a combination of on-line services, personal services, and physical locations over stand-alone Web distribution. They will want a choice of channels, delivery options, and ways of dealing with companies. Customer-Facing Systems Strategy and the Internet, Porter, HBR Mar 2001
  23. 23. Customer Data informs Internal Operations, Products  Unstructured Data  Richer Data for Demand Planning  Design for Humans  “Fast-twitch” Development
  24. 24.  Unstructured Data  Richer Data for Demand Planning  Design for Humans  “Fast-twitch” Development Master Data Management Process Rigor and Discipline Reliability and Scalability Customer Data informs Internal Operations, Products
  25. 25. design
  26. 26. Products
  27. 27. aka “the Internet of Things” (IoT) The nature of “products” is changing; embedded sensors, processors, and connectivity to` databases “in the cloud” [on the Internet] drive dramatic improvements in functionality and performance, creating opportunities for new revenue streams, profitable growth, innovation and differentiation. At the same time, these “smart, connected products” [SCPs] can and will change how value is created and captured, how companies partners with customers and suppliers, and how competitive advantages will be redefined. Smart, Connected Products How Smart, Connected Products Are Transforming Competition, Porter + Heppelmann, HBR Nov 2014 Consumer Fitness Trackers Vehicle Monitoring Home Control Industrial Industrial Tools Fleet Management Industrial Controls How Smart, Connected Products Are Transforming Companies, Porter + Heppelmann, HBR Sep 2015
  28. 28. SCP Framework Communicating from the Field Devices In the Field On-Board Data Collection Raw Data, Multiple Sources Products that Solve Problems
  29. 29. Predictive Maintenance: Engineering View Time Performance Scheduled Maintenance Assumed Failure Preventative Maintenance Schedule Predictive Maintenance Schedule Actual Failure Scenario 1: Maintain Uptime Scenario 2: Service only when necessary Actual Failure
  30. 30. Product enhances data to/from Operations, Customers  Information as a Feature  Monitoring and Control  Predictable Performance  Ecosystems of Value
  31. 31. Whose Cloud Is It? WeFixCo Plant / Asset Manager SipperCo Customer UBrewCo System ThermoCo Component
  32. 32. Product enhances data to/from Operations, Customers  Information as a Feature  Monitoring and Control  Predictable Performance  Ecosystems of Value Security and Compliance Disruption of Value Chains Business Model Disruption
  33. 33. disruption
  34. 34. Customers Operations Products
  35. 35. Data Customers Operations Products
  36. 36. Data Sources / Uses from All Systems  Master Data Management  Standard Work, Consistent Process  Big Data = Volume  Big Data = Unstructured
  37. 37. Data Sources / Uses from All Systems  Master Data Management  Standard Work, Consistent Process  Big Data = Volume  Big Data = Unstructured Integrations Governance Challenging Skills Mix Required
  38. 38. Seven Links in the Data Value Chain Insight Architect Generate Store Process Analyze Present
  39. 39. Seven Links in the Data Value Chain Insight What can we measure … Architect How should we structure … Generate Gather the detail … Store Manage the volume … Process Scrub and crunch … Analyze Drill to the truth … Present Draw the right conclusion …
  40. 40. Seven Links in the Data Value Chain Inspiration Art Science Execution Insight   Architect    Generate   Store   Process    Analyze   Present   
  41. 41. skills mix
  42. 42. Team Data Customers Operations Products
  43. 43. Building Great Teams  Human Factors  Design Thinking  Engagement Managing with Metrics Design Thinking Changing Skills Mix
  44. 44. engagement
  45. 45. Go DO – a few simple things (reword)  Integration Connecting the dots, leveraging the data  Design Used by people, to solve human problems  Disruption Surviving in a world of change  Skills Mix Building scalable, sustainable talent  Engagement Working for something that makes a difference
  46. 46. A Digital Strategy will only succeed with the right emphasis on  design thinking  human factors  teams that matter
  47. 47. A Digital Business will only succeed when it understands how to connect with people.
  48. 48. Five Components of a Great Digital Strategy Chicago, IL 28 Feb 2017 201703 Five Components Digital Strategy - Clean.PPTX James P. MacLennan SVP & Chief Information Officer IDEX Corporation 1925 West Field Court Lake Forest, IL 60045 (847) 664 4775 jmaclennan@idexcorp.com www.cazh1.com

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