The document discusses value-driven transformation in business, emphasizing the need for organizations to adapt strategies to achieve measurable value amidst market disruptions. It outlines frameworks and approaches, including the importance of developing a multi-disciplinary team, focusing on customer segmentation, and maintaining agility in execution. Key takeaways highlight the significance of defining value success criteria and fostering collaboration across departments for effective transformation.

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VALUE DRIVEN BUSINESS
TRANSFORMATION
AE Foyer, 2 December 2015
#aefoyer

2. SPEAKERS
Stefaan Bergmans
Principal Consultant
Regine Dhaene
Principal Consultant
Pieter Jaeken
Principal Consultant

3. PROGRAMME
 Setting the scene
 Retail case
 Social sector case
 Wrap-up

4. WHAT IS VALUE DRIVEN
TRANSFORMATION?
Stefaan Bergmans

5. THE CHALLENGE
Business Opportunities
- New channels
- New thinking patterns
- New technologies, digital
Business Threats
- Market disruption
- Faster competitors
- Data loss, cyberattacks
Execution Challenges
- Complexity
- Inertia
- Unpredictability

6. WHAT IS VALUE?
• Value is not only ROI
• Depends on the organization
• Strategy is a way to realize Value
• Measurable success criteria
• Examples
ROI TCOProfit
Low cost to serve Share of customer
wallet

7. WHAT IS VALUE DRIVEN TRANSFORMATION?
Programs/Projects
Enterprise Arch Portfolio Mgmt
Operations
SHAPING
VALUE
Strategy
DELIVERING
VALUE

8. REQUIRED TALENTS & SKILLS
Strategy
People skills
Domain knowledge
Craftsmanship
Strategic & Business
Management
Listening & empathy
Personal leadership
Culture
Change Mgmt
Engaging
Politics
Conflict Resolution
Enterprise Architecture
PPP Mgmt
Analytics, Insights
Coaching, Mentoring
Maturity Levels
Context
Industry knowledge
Market evolutions
Domain network
Domain tools
Senior Mgmt Buy-in
Strategic insight
Strategic alignment

9. TARGET GROUP?
ITBusiness

10. WHO?
Everyone
Enterprise
Architecture
Team

11. MINDSET?
InvestorImplementator

12. PRIMARY APPROACH?
WaterfallAgile

13. FOCUS?
Solutions
Processes
Software
Packages
Objectives &
Benefits

14. Questions?

15. RETAIL CASE
Regine Dhaene

16. STRATEGY DEVELOPMENT
Value to whom?
• Customer, shareholders, …
• New Value
• More Value
• Better Value
Transformation
Value
Shape & model parts to a valuable
offer, product or service
Driven

17. Strategy describes the choices about
HOW you want to create ‘Value’

18. CONTEXT
Strategy Development Strategy Execution
• A lot of good ideas
• Velocity, pace of execution• Strategy definition, choices
• Documented, communicated, roadshows
etc.
• Transform the idea’s & choices into actions
• Expectation: the organisation takes over and
rolls out what was communicated
• But that hardly ever happens...
Relatively
Difficult, isn’t it?
Initiate a Group portfolio of +/- 10 programs
Product information, CRM, Finance, HR, Supply
chain, communication, new technical platforms,
e-commerce, information & insights …
Resulting in a Group strategic roadmap
Each program begins to organize & initiate
projects
The organization begins to look as a big complex
construction site

19. REALITY
Transformation
Value
Driven

20. WHAT HAPPENED IN BETWEEN?
Organization structures
Culture
People
Business processes
Methods
IT landscape
• Collective focus?
• Scattered actions
• Different paces
Changes
Converged to a point in time:
The right business momentum

21. NEW BRAND INTRODUCTION
Create more and better Value by:
• Introduction of a new “Brand”
• Phased transition of own brands
towards new Brand
• Improve Product quality at the same
time
Competitive and differentiating strategy in
response to market dynamics
• Phased rollout in product categories, in
time, location, market channels
• Quality improvements on products
• Adjustments in supply chain
• .......
How does this
Brand perform
on the market?
Do we really
create more
and better
value?
Strategy Development
Strategy Execution

22. A FEW MONTHS LATER…
Strategy Development
Strategy Execution
Aggregated reporting:
• Profit ↑
• Gross margin ↑
Is value creation a fact?
• New Brand available, phased in different product
categories, locations & market channels
• Product quality enhanced (changing ingredients)
• Supplier changes & logistic replenish process
carried out
Everybody happy, new brand is a success!
convinced that all is running smoothly

23. FEEL GOOD & FIRST SYMPTOMS
 Top management gets good news confirmed by reports
 A lot of coffee moments later ....
We need to do something!
QA lab Purchasing Logistics
Pricing
center
Call center Analysts …

24. FEEL GOOD & FIRST SYMPTOMS
… but what?
 Which approach?
 Urgent!
 How to bring the news?
“We knew we had to stick our neck above ground level, get mandate, find someone at top level
supporting our initiative, ... because this wasn’t planned (resources, budget restrictions).”

25. UNLEASHING THE VDT APPROACH
 Mandate & sponsorship
 Small team & multi-disciplinary
 Permission “quick & d....”
 Speedy approach: 3-4 months

26. RETAIL VALUE CHAIN
Macro &
micro
economic
trends
Insights on
performance
Product
Quality
Supplier FIFO
Fased in
time
Price
comparisons
Customer
segmentation
Purchasing –
switch
behaviour
Complains &
customer satisfaction
Happy
Customer
After sales support Contact Center
POS transactions & restocking
Promotion & pricing
Warehousing to retail store distribution
Product procurement
Product development & QA
IT supporting systems
Facilities
HR
Management & governance
Retail Value Chain
What did we learn?
E2E Strategic flow

27. EXAMPLE: “UNKNOWN POTENTIAL VALUE” (1)
Macro &
micro
economic
trends
 What is the relation between customer confidence &
market performance?
 Same pattern for our competitors?
 Right timing for brand switch surfing on increased
customer confidence?
Right business momentum?

28. EXAMPLE: “UNKNOWN POTENTIAL VALUE” (1)
Conclusion:
 Timing of brand switch: choosing a more optimal business momentum could have
created more value re-enforced by the customer confidence cycle
 Multiple M€ and timing adjustments of about 3 months
 One competitor understood this very well & adapted their strategy, creating more value

29. EXAMPLE: “UNKNOWN POTENTIAL VALUE” (2)
Customer segmentation – in relation with product mix
Cannibalism
Switching behavior
Customer segmentation: different groups than the ones we knew of
Looking differently at Customer segmentation (not arbitrary)

30. EXAMPLE: “UNKNOWN POTENTIAL VALUE” (2)
Conclusion:
 Discovering “floating” customers lost during brand transition AND it seem to be the
customers who are not price sensitive!
 Cannibalism of strong existing brands
 Better understanding the customers, could have created additional several M€

31. “(UN)KNOWN POTENTIAL LOSS OF VALUE”
 Silos-teams going into action at different pace
 Silo-information not linked/exchanged between, not integrated
 Over-acting project approach for many years:
no feed of strategic data into BI&analytics platform
Known somewhere in the back of our head.... but no time, resources, €, focus, …

32. BEWARE!
 “Fast” approach: insights delivered across organization to act at the right moment
 Beware: no permit to forget structural improvements needed, assuring
long-term value creation
 Still requires disciplined execution!

33. Value Driven Transformation
Dynamic
Strategic Roadmap
at drumbeat of
Business Momentums
Speedy – agile changes (0-6m)
Follow process/information flows transversal through the
organization with strategically relevant insights
Legacy
Integrations
Stability
ITIL driven structures
“continuum portfolio”
NO x year roadmapping!
Focus, speedy and agile actions:
Data identified, accessed, data cleansing
Organizational: awareness & Coaching
Insights built up across the chain & shared
On present technologiesPORTFOLIO
Strategy Development Strategy Execution
Plan structural changes:
• Project Life cycle method & Funding model
• Running product program: brand
• Running customer program: segmentation
• Running supply chain program: brand switch
process
Requirements – structural changes

34. TAKEAWAYS
Focus on the value you want to achieve1
Predict your ‘right’ business momentum(s)2
Follow your strategic information flow3
Put together a multi-disciplinary team4
Allow 2 different paces at once (Bi-modal)5

35. Questions?

36. SOCIAL SECTOR CASE
“SOC-Y”
Pieter Jaeken

54. Questions?

55. WRAP-UP
Stefaan Bergmans

56. VDT BUILDING BLOCKS
DEFINE VALUE
Success criteria
E2E VALUE CHAIN
DEFINITION
CREATE AGILE
PORTFOLIO
Short vs long term
L
E
A
D
E
R
S
H
I
P
I
N
S
I
G
H
T
S

57. VDT: SHAPING VALUE
Content
Management
People
Business
Information/Insights
Application
Technology
Communication
Organizational change
Politics
Culture
Objectives, benefits
Budget, timing
Risk
Quality
Holistic approach

58. Value Driven Transformation
Speedy – agile changes (0-6m)
Follow process/information flows transversal through the
organization with strategically relevant insights
Legacy
Integrations
Stability
ITIL driven structures
“continuum portfolio”NO x year roadmapping!
Strategy Development Strategy Execution
Requirements – structural changes
Value
Definition
Agile
Strategic
Portfolio

59. TAKEAWAYS
Start by precisely defining value.
What are your success criteria in terms of measurable value?
1
Value Driven Transformation crosses all departmental and company
boundaries
2
Create an agile portfolio: short-term transitions using long-term flagstaffs3
Challenge and (re-)direct projects/programs from a Value Driven
Transformation perspective
4

60. THANK YOU!

61. Questions?

62. ae.be

63. EXTRA

64. HISTORY
Gartner EA Hype Cycle

65. IT, Technology, IT Efficiency
EA Frameworks
Outside-in
EA as driver for investments
Instead of
silos,
duplication, …
Instead of
reinventing the
wheel
Instead of
internal IT
focus
Instead of ivory
tower
Zachman, TOGAF, FEA, NIST,…
Waterfall PPPM
Iterative PPPM
Agile PPPM
Bi-modal PPPM
Instead of
ad hoc
Instead of
long-lasting
Instead of
top-down
Instead of not
adapted to
context
Value Driven Transformation
Everyone, culture
instead of only
EA’cts
Integrated PPPM &
EA