Dave Wheable: Can We Manage the Future
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Dave Wheable: Can We Manage the Future
- 1. © 2018 FORRESTER. REPRODUCTION PROHIBITED.
- 2. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Can We Manage The Future? David Wheable, Vice President and Principal Consultant November 2018
- 3. 3© 2018 FORRESTER. REPRODUCTION PROHIBITED. The gap is widening between leaders and those incrementing forward Customers are making the rules Digital is destroying industry lines and business models Digital platforms are separating brands from customers Companies are struggling to become digital first The combination of empowered customers and digital are remaking markets and creating existential risk for companies
- 4. 4© 2018 FORRESTER. REPRODUCTION PROHIBITED. Business and technology leaders are making decisions that will decide the destiny of their companies Seeing, interpreting, and acting on external forces is the critical capability Powerful external forces require immediate action Decisions are made with little precedence, but massive consequence Decisions are not cosmetic — they go to the very nature of your company
- 5. 5© 2018 FORRESTER. REPRODUCTION PROHIBITED. Design principles in the age of the customer Connected: Orchestrate internal operations and your ecosystems Insights-driven: Harness data to drive strategic advantage Fast: Rapidly respond to changing customers and market disruption Customer-led: Make customer obsession an everyday competency
- 6. 6© 2018 FORRESTER. REPRODUCTION PROHIBITED. Traditional Versus Digital Transformation Principles
- 7. 7© 2018 FORRESTER. REPRODUCTION PROHIBITED. Everyone is becoming a digital business 22% of companies think they completed their digital transformation, which indicates they do not understand the nature of being a digital business
- 8. 8© 2018 FORRESTER. REPRODUCTION PROHIBITED. 3 distinct patterns have emerged … Beginner firms build new experiences on today's business model Intermediate firms transform their business from the outside in Advanced firms invent new ways to deliver outcomes
- 9. 9© 2018 FORRESTER. REPRODUCTION PROHIBITED. …which progress as the organisation’s maturity and strategy develop Beginner: Supports existing models Intermediate: Digital technologies are used to innovate products and services Advanced: Rejig operating models, embrace digital eco-systems and build new sources of revenue
- 10. © 2018 FORRESTER. REPRODUCTION PROHIBITED. Most companies struggle to get beyond a DT vision Source: Forrester Report, Digital Business 2018_Benchmark Your Digital Journey, 2018 Question: % of respondents who answered “Mostly Agree” or “Completely Agree” to the question “We have the right {COMPETENCY} to execute our digital strategy.“ VISION CULTURE STRUCTURE PEOPLE SKILLS TECHNOLOGY Advanced Intermediate Beginner DIGITAL TRANSFORMATION MATURITY 93% 94% 84% 90% 91% 89% 85% 44% 29% 64% 29% 42% 76% 12% 5% 19% 7% 15%
- 11. 11© 2018 FORRESTER. REPRODUCTION PROHIBITED. Emerging technology investment has superseded customer understanding as the number one thing firms want to do to be more innovative
- 12. 12© 2018 FORRESTER. REPRODUCTION PROHIBITED. Networks of exponential technology changes contribute to cycles of creative destruction “An analysis of the history of technology shows that technological change is exponential, contrary to the common-sense “intuitive linear” view. So we won’t experience 100 years of progress in the 21st century — it will be more like 20,000 years of progress (at today’s rate).” Kurzweil, The Law Of Accelerating Returns Storage Servers Cloud Big Data Machine Learning AI Quantum IOT Edge Blockchain Exponential changes in: • Reduced cost of storage, compute • Network speed • Software release rates • Data to insight • Insight to action time • Process efficiency • Compute capacity • Technology acquisition effort • Information quantity and transparency • Algorithm complexity • …and lots more Chips
- 13. 13© 2018 FORRESTER. REPRODUCTION PROHIBITED. <1 year 1–3 years 3–5 years 3–5 years Emerging tech will unleash massive changeChange theworld Change industries Major advantage Source: “The Top Emerging Technologies To Watch: 2017 To 2021” Forrester report Real-time interaction management Personal identity & data management Intelligent agents Augmented & virtual reality IoT software & solutions Systems of engagement Insight platforms Customer journey analytics Spatial analytics IoT analytics AI/cognitive Systems of insight Security automation & orchestration Containers & container management Cloud native application platform Edge computing Hybrid wireless Systems of support
- 14. 14© 2018 FORRESTER. REPRODUCTION PROHIBITED.
- 15. 15© 2018 FORRESTER. REPRODUCTION PROHIBITED. More than one third say reorganizing IT over the next 12 months is a high priority Base: 18,610 business technology decision makers; Source: Forrester’s Global Business Technographics® Priorities And Journey Survey, 2016 26% 33% 38% 2% Not on our agenda/Low priority (1,2) Moderate Priority (3) High priority (4,5) Don''t know (98)
- 16. 16© 2018 FORRESTER. REPRODUCTION PROHIBITED. IT’s success is not measured by how well it responds to ”the business” – but how well it enables us to compete in this environment
- 17. 17© 2018 FORRESTER. REPRODUCTION PROHIBITED. But most companies admit they’re not yet equipped 90% of companies say customer experience is a top strategic priority for their company. But only 1% manage to deliver excellent customer experience. 74% of business executives say their company has a digital strategy But only 16% feel they have the skills and capabilities to execute it
- 18. 18© 2018 FORRESTER. REPRODUCTION PROHIBITED. CIOs have to focus on key new capabilities to become a digital business Source: Develop Key Tech Management Capabilities To Accelerate Your Business Technology Strategy, Forrester Report Applied market insights Scenario design Journey mapping Customer experience Systems of engagement Innovation Continuous planning Project portfolio mgmt. Outcome-based governance DevOps Business engagement Continuous testing Variable resources Continuous governance Responsive to shifting demands & priorities Zero trust approach across all resources Strict access control Customer-in Strategy & Design Continuous Planning & Governance Continuous Delivery Flexible Sourcing Information Security
- 19. 19© 2018 FORRESTER. REPRODUCTION PROHIBITED. Operating Models Budget Driven Shared Service Service Integrator Service Broker Maturity Operational Strategic Low High Focus
- 20. 20© 2018 FORRESTER. REPRODUCTION PROHIBITED. Sourcing is an Increasing Part of Operating Models Strategic Tactical Operational Integrate, manage & operate IT’s business or business oriented service catalog SLAs between IT and Business Service levels reflecting business requirements IT service catalog SLAs/OLAs between service providers Service levels derived from business Service catalog OLAs or UPCs Operational level derived from IT Service catalog
- 21. 21© 2018 FORRESTER. REPRODUCTION PROHIBITED. Spend is not enough - categorise suppliers by scale, impact and business value Niche Supplier Business results focussed Customer facing Innovative Strategic Partner Innovation Alignment with client success Trust in the relationship Collaboration Breadth of skills Tactical Vendor Staff augmentation consultants & contractors Cost focussed Key Operational Supplier Managed service Quality & reliability Staff assignment Operational excellence Contract flexibility to support agility Differentiation Operational effectiveness Broad Niche Scale Value
- 22. 22© 2018 FORRESTER. REPRODUCTION PROHIBITED. Value is the New Currency of IT Most IT organizations don’t focus enough here………..which leads to more issues downstream
- 23. 23© 2018 FORRESTER. REPRODUCTION PROHIBITED. Microservice architecture built on individual components and delivered independently via DevOps
- 24. 24© 2018 FORRESTER. REPRODUCTION PROHIBITED. © 2017 Forrester Research, Inc. Reproduction Prohibited
- 25. 25© 2018 FORRESTER. REPRODUCTION PROHIBITED. © 2017 Forrester Research, Inc. Reproduction Prohibited What is my seat number? What time do we land? Will there be food on the plane? Is there a m on the plan Can I get a mobile boarding pass? What tim need to le the airp need cash can I use a edit card? room service ll be open at the hotel? Is my bag under the weight limit? Where is my hotel in San Francisco? How will I get to the airport? Do I need a visa? What is the limit in weight for a carry on? What time do I What is the bes way to get to downtown?
- 26. 26© 2018 FORRESTER. REPRODUCTION PROHIBITED. © 2017 Forrester Research, Inc. Reproduction Prohibited
- 27. 27© 2018 FORRESTER. REPRODUCTION PROHIBITED. © 2017 Forrester Research, Inc. Reproduction Prohibited{this.options.log = This.option.lo s.options.log l’ : ‘None’;} </> const params={Functio nName:this.opt if {invocationType !==‘RequestRespo nse’){this.option {This.option.lo is.options.log ail’ : ‘None’;} (this.options.data || {})), }; </> invoke() {const invocationType = this.options.type ’) {this.options.log = ‘None’;} </> if {invocationType !==‘RequestRespo nse’){this.option </> LogType: this.options.log, </> if{ this.options.log, if {invocationType !==‘RequestRespo nse’) </> </> const params {FunctionNam {this.optio ‘None’;} </> else{This.option .log=this.option s.log ? ‘Tail’ :
- 28. 28© 2018 FORRESTER. REPRODUCTION PROHIBITED. Increasing complexity drives automation
- 29. 29© 2018 FORRESTER. REPRODUCTION PROHIBITED. Digital business platforms are a modular technology base built around business APIs and designed for rapid reconfiguration of business models, processes, and ecosystems. Forrester report “Business Platforms Power Your Digital Business”
- 30. 30© 2018 FORRESTER. REPRODUCTION PROHIBITED. The data science lifecycle is iterative and continuous
- 31. 31© 2018 FORRESTER. REPRODUCTION PROHIBITED. The data science lifecycle is iterative and continuous Machine learning
- 32. 32© 2018 FORRESTER. REPRODUCTION PROHIBITED.
- 33. 33© 2018 FORRESTER. REPRODUCTION PROHIBITED. Is this ultimate relationship platform? …
- 34. 34© 2018 FORRESTER. REPRODUCTION PROHIBITED. or the ultimate service integration platform?
- 35. 35© 2018 FORRESTER. REPRODUCTION PROHIBITED. Changing the way we work Design Thinking DevOps
- 36. 36© 2018 FORRESTER. REPRODUCTION PROHIBITED. An integrated and continuous cycle
- 37. 37© 2018 FORRESTER. REPRODUCTION PROHIBITED. The Discovery of Ignorance Sapiens A Brief History of Humankind, Yuval Noah Harari “The Scientific Revolution has not been a revolution of knowledge. It has been above all a revolution of ignorance. The great discovery that launched the Scientific Revolution was the discovery that humans do not know the answers to their most important questions.”
- 38. FORRESTER.COM Thank you © 2018 FORRESTER. REPRODUCTION PROHIBITED.
Editor's Notes
- Visit the PowerPoint resources page Backstage for quick tips and slide layout solutions for your presentations.
- Most companies have adopted digital strategies or digital technologies, to better win, serve and retain clients, to optimize processes and with that increase efficiency and lower costs. One of the driving forces behind digital transformation is the fear of disruption in the marketplace by digital native companies or companies working in other or adjacent industries that have already mastered digital business. The ambition is to become a digital business, with the ability to be a disruptive force, rather than being disrupted by someone else. And in the shorter term to increase revenues and lower costs. However, recent studies show that becoming a digital business is not just a digital transformation. It is about a complete shift of your organization to build digital into the core of the companies DNA, in other words, TO BE A DIGITAL BUSINESS. Our data shows, that when asking 2800 decision makers in a recent survey, 22% of the companies think they have finished their digital transformation and with that have achieved a mature digital state in which they can be a disruptive force. This indicates these firms might not understand the true nature of being a digital business, or simply do not have the ambition to become one.
- To better understand the entire journey, we have created a digital business maturity model to guide your journey. In the first stage of maturity, we see that companies focus on building new experiences on existing business models, products and services, and on easy to digitize processes to improve efficiency and lower costs. In the next level, which we call digital intermediate, we see that firms have started to transform their business from the outside in, looking at the ways their customers, and more importantly consumers as a whole, are consumer the products and services they offer and could offer. In the advanced stage of maturity, which companies are a mixture of digital natives such as Uber and traditional companies that have become digital businesses, such as Jon Deere, firms invent new ways to deliver outcomes for customers and consumers in their space, but also in other industries and markets. They truly are digital businesses with the operational and technological agility and the innovative power to disrupt markets. Understanding these stages of maturity provides you with the context of your own journey….. (flip to next slide)
- …..since common patterns emerge at each maturity level as companies adapt their strategy with time. To have a closer look: At the beginner level of maturity, digital most often is a bolt-on. A digital team, perhaps even with a Chief Digital Officer, identifying opportunities to optimize their existing business models, expand market reach and to deliver operational efficiencies. In the intermediate level of Digital Business maturity, digital technologies are used to innovate products and services, increase operational and technological agility, and start experimenting with new sources of revenue. A good example of companies in this stage are in the financial industry, mostly retail banks and insurance companies. In the advanced stage we see companies that have rejigged their operating models to achieve full agility, have embraced digital eco-systems and are able to build new sources of revenue, and with that have the ability to disrupt markets. IMPORTANT TO KNOW, is that when firms start working on activities in the next level of maturity before completing the typical steps needed to finish the earlier stage of maturity, they will hit problems in their transformation quite quickly and easily. A good example is a company in the finance industry (we leave the name of the company out for logical reasons) who had digitized a set of processes at the front end of their business and had restructured its IT to include flexible solutions, such as cloud based solutions, to achieve agility. When the board asked to scale up their digital initiative, the company soon found major roadblocks in their attempt to do so. In the earlier stages they had not yet build and nurtured a digital culture and thus had hit a brick wall which they could not overcome. To understand the full scope and impact to become a digital business is to understand…..(flip to next slide….)
- Our research shows that all CIOs, regardless of industry, company size, place in the value chain, or geography, will have to nail five sets of capabilities in order to deliver on their BT strategy
- The easiest way that I've found to talk about this is to think in terms of the operating model of the IT organisation: Budget Driven/Cost Centre: the simplest model where the business provides budget to fund the IT organisation. This is a very operational focus where the business is making most if not all the technology decisions. For example, server/infrastructure management. Shared Services: This is where IT develops and delivers common services that are used across business units. For example, basic email/messaging. Service Integrator: Where IT integrates both internal and external services/components to deliver services to the business. As such a single business service may comprise of elements from several suppliers. For example, integration of cloud based services such as Salesforce.com or Office 365. Service Broker: Where IT has the flexibility rapidly change service components to achieve the highest value. For example, using multiple Infrastructure-as-a-Service providers and selecting the appropriate one based on cost/service as virtual instances are created. When becoming a service broker there are often multiple similar service offerings that are presented to the business and so the business decides which services it wants to use. This distinction is important as it moves the IT/technology decision responsibility from IT to the business. Although not strictly a maturity issue you can typically view the journey from one operating model to another as an increase in maturity and capability of the IT organisation. It should also be noted that the Service Management focus moves from operational to strategic as you move up the models.
- Group discussion: Does anyone have a similar categorization model? How has it helped support or improve vendor management activities Has it helped in building relationships with lines of business? Sourcing activities? Building consensus around vendor management governance? How do your categories / tiers align to this model? How does this categorization factor into your management practices? Does it: Facilitate your internal SVM tracking and management? Determine governance and/or process rigor that gets applied to suppliers? Facilitate reporting to your stakeholders? Other?
- A couple of months ago I was in Auckland and I had to get to Sydney.
- In my head, I started thinking about all the things I would need to do to get there – to make it happen.
- Then I thought about all the apps or websites I would need to use to get this stuff done.
- Then I translated all of these actions into IF/THEN statements or INPUTS for Apps that I needed to slog through to get the outputs or outcomes that I wanted. That’s how I get things done today. That’s how I get to Sydney. That is the “state of digital experiences.”
- Most of you build service in this top layer today.