Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide
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Conviction, Alignment, Agility are the three keys to staying on the right side of the digital divide. As the world becomes more programmable, digital leaders are turning conviction into a case for change and plan of action through alignment and agility. Digital leaders achieve alignment by making digital experiences a priority for all teams and connecting digital investments to key performance indicators. They demonstrate agility through an options-based approach to ROI using criteria like satisfaction, efficiency and revenue to evaluate digital investments over multiple scenarios. A programmable world means every sector is now in a race to build digital ecosystems, and alignment and agility are critical for organizations to scale their digital assets and stay ahead of competitors.
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Conviction, Alignment, Agility: Three Keys to Getting & Staying on the Right Side of the Digital Divide
- 1. Conviction, Alignment, Agility Three Keys to Getting and Staying on the Right Side of the Digital Divide
- 2. Apigee Institute’s promise • Equip leaders with empirical data • Connect theory to practice • Turn experience into practical advice
- 3. We see something big happening
- 4. The world is becoming programmable 20B 3x Internet of Things Wearables Smart TVs $20T 13.8% 10B Tablets 3x Smartphones PCs 2018E 2017E 2016E 2015E 2014E 2013E 2012 2011 2010 2009 2008
- 5. What happens when digital capabilities diverge? Digital Leaders 53% Digital Laggards 47% Average score deploying apps, using data analytics, and operating APIs today: 24 out of 30 Average score deploying apps, using data analytics, and operating APIs today: 14 out of 30 Survey of executives in 200 large companies across 30 industries, May 2013.
- 6. A “digital divide” that is real now… “Digital Leaders” Segmentation on strength now deploying apps, operating APIs & using data analytics Outperformance past 12 months on revenue/margin, satisfaction, share, new products High Confidence in much stronger competitive position over next 5 years Digital Impact on enterprise KPIs that’s big in next 12 months & increasing a lot over 5 years 53% “Digital Laggards” 48% 63% 37% 71% 81% 29% 19%
- 7. …and that promises to grow Big digital impact next 12 months + increasing great deal over next 5 years Strong outperformers on this KPI + chose as a top area for digital impact going forward Efficiency & time to market Customer satisfaction Digital Leaders 78% Digital Laggards Digital Leaders Digital Laggards 50% 13% Digital Leaders 64% Revenue Digital Laggards 13%
- 8. Why?
- 9. Digital Leaders are turning conviction… Extremely Smart, connected devices Relevance of trend to competitive position over next 5 years Instrumentation & data insights Apps & network effects Platform strategy & digital ecosystems Not at all 53% 40% 25% 43% 53% 45% 24% 56% 43% 17% 39% 48% 46% 15% 45% 41%
- 10. …into a case for change and plan of action… Strongly Agree Compelling vision Executive priority Project priority Digital Leaders Digital Laggards 6% Digital Leaders Digital Leaders Digital Leaders Digital Laggards 6% 53% 43% 35% Digital Laggards 6% Digital Laggards 3% Strategy for creating value with apps, APIs & analytics 34% Agree 50% 43% 31% 48% 39% 33% 52% 39% Survey of executives in 321 large companies across 26 industries, Sept-Oct2 013.
- 11. …with the alignment and agility to make it happen
- 12. How?
- 13. Blueprint for alignment and agility Y • Deploying apps • Operating APIs • Using data analytics X • • • • Alignment between Marketing & IT Right ROI criteria for digital investments Connecting digital to enterprise KPIs
- 14. Alignment: In a programmable world, digital experiences win
- 15. Alignment: Digital experiences are everybody’s job Digital Leaders Digital Laggards Velocity Velocity Physical Assets Density Depth Digital Assets Physical Assets Digital Assets Density Depth
- 16. Agility: Three ROI criteria, together in the toolbox Average score on connecting digital to KPIs 1.25 1.00 Options-based strategy: Real options, Satis faction, Efficie NPV, Satisfac ncy tion, Efficienc y Competitive benchmark Neither Satisfaction nor Effiicency • Certainty impossible • Change inevitable • “Fail or scale” Options-based financials • 0.75 1.00 Average score on digital ROI decision-making 1.25 Quantify what-ifs • 0.75 Project scenarios • "Ad hoc" Build to re-purpose
- 17. Case study #1 “…All teams will henceforth expose their data and functionality through service interfaces. All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions. Anyone who doesn’t do this will be fired.” Jeff Bezos CEO, Amazon
- 18. Agility: Aligning investment criteria with enterprise KPIs Digital ROI Pattern Efficiency & time to market Market Leadership KPI Satisfaction / Share Revenue / Margin % of digital assets externalizable Scale of digital ecosystem % of profit in sector
- 19. In a programmable world, this race is on in every sector Tablets Smart phones Wearable Electronics Partner Integration Kiosks Your Digital Assets Open Innovation Connected Cars Smart Sensors Smart Appliances Gaming Consoles
- 21. Thank you
- 22. We would love your feedback! Don’t forget to fill out the session’s survey – found in the session details on the conference app #iloveapis
Editor's Notes
- Digital transformations are essential to survive and thrive in the contemporary digital economy. But how do you know that you are laying a solid foundation on which to build your digital business? Do you have the right strategy, people, and operations in place to not just withstand, but to adapt and grow with unpredictable future conditions? In this session, hear the real world findings from the Apigee Institute onwhy the digital divide is rapidly growing and how leading enterprises have the conviction, alignment, and agility required to be the dominant players of tomorrow.
- According to research !rm IDC, the size of total worldwide e-commerce, when global business-to-business and consumer transactions are added together, will equate to $16 trillion in 2013. When added to the global market for digital products and services—which IDate, the French technology research !rm, estimates at $4.4 trillion in 2013—the total size of digital economy is estimated at $20.4 trillion, equivalent to roughly 13.8% of all sales #owing through the world economy. Given the magnitude of these numbers, it is clear that the digital economy is coming of agehttp://www.corp.att.com/emea/docs/the_new_digital_economy.pdf
- Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
- Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
- Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.