The document emphasizes the importance of digital transformation for businesses, detailing how leveraging digital technology can enhance customer experience, operational processes, and business models. It identifies four levels of digital mastery and highlights that companies adept in digital capabilities experience significantly improved financial performance. Additionally, it stresses the need for strong leadership, employee engagement, and innovative skills development as key drivers for successful digital transformation.

1. Copyright © 2014 Capgemini Consulting. All rights reserved.
TURNING TECHNOLOGY INTO BUSINESS
TRANSFORMATION
LEADING DIGITAL
DR CLIFF EVANS

2. Video – you ain’t seen nothing yet
https://www.capgemini-consulting.com/video/digital-transformation-we-havent-seen-anything-yet

3. Copyright © 2014 Capgemini Consulting. All rights reserved.
What Do These Great Companies
Have In Common?

4. Copyright © 2014 Capgemini Consulting. All rights reserved.
DigitalCapability
Leadership Capability
The DNA Of Digital Masters
The What:
Using digital technology to transform the customer
experience, operational processes and business models
The How:
Successful transformations depend as much
on how firms manage digital transformation than solely on
implementing new technologies

5. Copyright © 2014 Capgemini Consulting. All rights reserved.
4 Levels Of Digital Mastery
DigitalCapability
Leadership Capability
FASHIONISTAS DIGITAL MASTERS
CONSERVATIVESBEGINNERS

6. Copyright © 2014 Capgemini Consulting. All rights reserved.
* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample
The Time To Act Is Now: Digital Masters Have
Significantly Better Financial Performance
Basket of indicators:
• EBIT Margin
• Net Profit Margin
DigitalCapability
Leadership Capability
REVENUE GENERATION EFFICIENCY
+6%
Basket of indicators:
• Revenue / Employee
• Fixed Asset Turnover
+9%
-10%-4%
DigitalCapability
Leadership Capability
PROFITABILITY
% +26%
+9%-24%
-11%

7. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital has informed and
amplified customer
expectations
Digital is removing
traditional constraints in
operations
Digital business models can
reorder value chains and
create new opportunities
BUSINESS
MODEL
CUSTOMER
EXPERIENCE
OPERATIONS
Digitally-modified businessCustomer Understanding Process digitization
New digital businessTop Line Growth Worker enablement
Digital globalisationCustomer Touch Points Performance management
The What: Building Blocks Of Digital
Capability

8. Copyright © 2014 Capgemini Consulting. All rights reserved.
Create a shared
transformative vision of
the digital future
Engage employees at scale
to make vision a reality
Fuse IT & business
communities to build
digital skills & transform
technology platforms
Establish strong digital
governance to steer the
course
The How: Leadership Capabilities Is What Turns
Digital Investments Into Digital Advantage
IT/BUSINESS VISION
ENGAGEMENTGOVERNANCE

9. Copyright © 2014 Capgemini Consulting. All rights reserved.
Create a shared
transformative vision of
the digital future
Engage employees at scale
to make vision a reality
Fuse IT & business
communities to build
digital skills & transform
technology platforms
Establish strong digital
governance to steer the
course
The How: Leadership Capabilities Is What Turns
Digital Investments Into Digital Advantage
IT/BUSINESS VISION
ENGAGEMENTGOVERNANCE

15. Copyright © 2014 Capgemini Consulting. All rights reserved.
Vision Sets Direction,
Engaged People Make It Happen
FOSTER NEW WAYS
OF WORKING
CONNECT THE
ORGANIZATION
ENCOURAGE WIDER
CONVERSATIONS
• Closing knowledge gaps
• Increasing engagement
• Solving business issues
• Generating new ideas
• Wikis
• Microblogs
• Social Networks
• Video Conferencing
• Executive involvement
• Digital champions
• Reverse mentoring
• Use cases
SCALINGWIRING ADOPTING
New innovation process is creating
more innovation, collaboration, and
employee engagement across the
company’s business units.
“Communities that are created on the
network are free from geographical,
functional or hierarchical
boundaries.”
“With executive engagement, you
don’t have to mandate activity.”

16. Copyright © 2014 Capgemini Consulting. All rights reserved.
• New ways of working
• Rethinking
infrastructure /
replatforming
IT Business
Relationship
Digital
Platform
Digital
Skills • Digital IQ program
Business And IT Leaders Together Drive
Transformation Efforts Better Than They Do Apart

18. Copyright © 2014 Capgemini Consulting. All rights reserved.
Companies That Build Digital Skills Faster Will
Get Ahead of the Pack
PLUGGING
THE SKILL
GAP
Innovative
Recruitment
Methods
Target
Company
Acquisitions
Ecosystem
Partnerships
Incubating for
the Future
Training
Programs
Made several
Acquisitions
of Mobile, Social and
Technology Firms
Gamified their Recruitment
Process
Launched a Digital IQ training.
Over 20,000 employees trained
in 2 years
Implemented reverse
mentoring programs
Launched an incubator program for
mobile startups
77% of the
companies
highlighted “skills”
as the key hurdle
to digital
transformation
...YET...
Only 30% of HR
functions were
actively involved in
digital skills
development
Ecosystem of JVs
for core technology
developments

19. Copyright © 2014 Capgemini Consulting. All rights reserved.
Our Research Has Driven a Number of Firm
Convictions Around Digital Transformation
Enablers
The ‘WHAT’
Consumers At The Heart
Data As A New Currency
Digital Across The Value Chain
Open Innovation
The ‘HOW’
Led From The Top
People Engagement
Governance Drives Performance
Experiment & Scale Quickly
+
• Wiring The Enterprise
• Building Digital Capabilities