Digital Transformation

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igitalTransformation,WorkinProgress,©AllRightsReserved
Digital Transformation
Redefining Industries
Prepared and Published By : Vishal

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Agenda
 Drivers
 Digital Transformation
 Impact on Industries, IT and Stakeholders
 Digital Transformation – Model
 Digital Transformation – UX, SO, LO, MO, Gamification, Cloud
 Benefits, Adoption, Challenges
 Readiness, Operating Model Design
 Governance and Maturity
 Summary
Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to avoid copyright
infringement. Any instances that violate terms can be removed when notified. All discussed thoughts & opinions are my own & not that of my
employer or others parties.

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Profile
Summary
Vishal has more than 14 years of experience in Business and IT Advisory with a focus on providing advisory
services to clients, securing lucrative client engagements and ensuring successful business transition. An able strategic
advisor & business evangelist enthused by the potential of new emerging business trends and technologies to deliver
expandable and streamlined business solutions with greater return on assets and investments.
Vishal provides thought leadership with a focus to create new growth areas and untapped market segments.
For further information or feedback, please contact:
Name: Vishal
Email: mail@sharmavishal.com
Twitter Handle: sharmavishal
Linkedin: http://au.linkedin.com/in/sharmavishal01
Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to avoid
copyright infringement. Any instances that violate terms can be removed when notified. All discussed thoughts & opinions are my
own & not that of my employer or others parties.

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Digital
Evolution (Physical to Bits)
70 – Mid 80’s
Finance
(Transactions)
Customer
(Engagement)
Internal (Ops.)
Learning,
Collaboration
&
Infrastructure
Mid 80’s - 00 00 - Today
TV, Telephone
ATM, EFT Driven
Collaboration. Driven by
Voicemail, and Pagers
Infra as PC and Magnetic
Tapes
Online (web), Telephone, TV
Web Driven
(e-commerce)
email, IM, Cellphone
Infra as Latptop, CD/DVD
Web, Social Media Channels,
Smart Devices
Mobile and Smart Devices
Driven
(from m-commerce
to cashless commerce)
VOIP, Live Meeting, Social
Networks
Infra as Tablets, USB, Cloud
• Digital world has evolved enormously from early 70’s to this date.
• Today it has led to transformation of physical entities to bits (digitised).

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Bandwidth
Evolution (Internet)
Only FTTH
(250 MBPS)
Late Cable,
FTTH
(100-200 MBPs)
VDSL, Cable
(25-50 MBPS)
Bandwidth
ISDN
(128 KBPS)
Basic Web
Browsing
Years
ADSL
(6-16 MBPS)
DSL
(1-2 MBPS)
Advanced
Basic Web
Browsing
P2P Music
Sharing
Basic 3D
Video on
Demand
Video
Streaming
3D Worlds
& P2P
IPTV
3D
Emulation
&
Entert.
Advanced
to Basic
App
Hosting
3D Virtual
Collab.
End to end
Remote
Computing
Source: NBN CO
• Evolution of Internet is merging the gap between Physical and Digital world.
• Internet led Digital disruption is resulting in new generation of digital services.
• Internet has initiated a path of redefining industries and livelihood of human beings.

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Disruption Led
Disruption across industries by digital evolution is swift and deadly
• It is operating at the speed of thought
• It turns assets into liabilities
• It comes from any firm of any size and from anywhere
Digital Disruption is driving fundamental shift in Business Model. This shift has led to deep impact on organisations operation,
structure and, their culture. Its low barrier to entry is driving constant innovation and opening doors for non digital business.
Source: Disruptors Handbook, Forrester.com 2012

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Customer Behaviour Led
Stage 1
Internet
&
Dot Com
e-Commerce
with
Control &
Choice
DriversOutcome
Stage 2
Mobile
Device
m-
Commerce
Anywhere,
Anytime
Stage 3(Today)
Smart Device
with App
Stores
Cashless
Commerce,
User Exp.
&
Ubiquitous
• Consumers driven by customer experience are
adopting new platforms and technology.
• Ubiquity of internet has led to Digital
Transformation across vertical industries and
merging the gap between physical and digital world.
• Owning the digital ecosystem (like app stores) has
become a vital channel for customer engagement,
retention and revenue generation.
Credit: Banking 2.0

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Convergence Led
• Emergence of Social Platforms like Facebook,
Twitter and Linkedin has redefined how
customers are engaged in a digital world.
Customers used these as a learning, sharing
and collaborating platform.
• Emergence of Smart Mobile Device(incl.
Tablets) with superior and engaging UX has
led customers to use this as a preferred
platform for commerce and service
consumption.
• App Store led Commerce and Services in
digital world is increasing in double digits
(yoy).
• Owning the digital ecosystem (like app stores)
has become a vital channel for customer
engagement, retention and revenue generation.
• Emergence of GPS enabled devices have
allowed localised targeting of services.
• Convergence of SO, LO, MO is driving digital
disruption across every industry.
Source: TOP MOBILE INTERNET TRENDS , KPCB, 2011
Social
Local Mobile
LO MO
SO
Transformed
Superior and
Engaging Customer
Experience
Anywhere,
Any device,
Anytime

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Value Proposition
Different organisation require different approach for leveraging benefits
from digital transformation in their evolution.
• Pure Digitisation leads to expansion of core business to digital
platforms.
• Pure Transformation leads to change in traditional business model
to a new type of business model.
• Combination of executing Digitisation (services and platforms) and
Business Transformation (culture and business model) in parallel is
less agile and difficult task to achieve. However this is the best
option, executing either option individually or sequentially will not
give the desired outcome.
Core Business Diversification
OrganicGrowthInorganic
Digitisation
Transformation
Sweet Spot

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Attributes
• Simple
• Ubiquity – universal access to apps and services by consumers and enterprises
• Personal
• Affordabiltiy – pricing to make them affordable
• Speed – extent to which digital services can be accessed in real time
• Usabiltiy – ease of use
• Empowering
• Skill
• Reliability – Quality of available digital services

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Industries
Cost Structure
Profit
Rent
Media
& Entertmt.
Telecom
Financial
Services
Education
Healthcare &
Pharma
Retail &
Distribution
Energy &
Utilities
Utilities
Dep.
Other
Wages
Purchases
AverageCost(%ofRevenue)
11.70% 9.60% 12.20% 12.40% 20.00% 8.60% 4.80%
3.70% 1.20% 0.70% 1.00% 3.00% 10.60%
2.20% 0.10% 0.50% 1.80% 0.90% 71.00%
4.30% 0.80% 14.40% 2.70% 9.70% 3.40% 1.20%
56.50% 82.50% 47.30% 10.40% 44.70% 13.50% 0.90%
13.50% 6.10% 15.00% 17.40% 6.20% 52.50% 3.60%
8.50% 0.10% 9.20% 54.30% 19.40% 18.10% 7.90%
Its vital to understand cost structure across the industries. Digital Transformation is driving a
fundamental shift in Business Model and how services are offered and consumed.
Example: Banks are prime place for this transformation before telco’s. As “money ” (physical form) is
becoming more digital (non-physical) before voice (analogue to digital). Across the whole value chain of a
bank, transactions will be digitised from end to end. This has led Banks to focus on digitisation of assets and
services with customer centricity and customer experience as a prime driver and differentiator.
Source: IBIS World

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Industries
Operating Condition
Toady various industries are going through different operating
conditions impacted by various market forces. This matrix provides
indicative view of current operating condition of following
industries:
• Media & Entertainment is Hazardous as content has become
totally digital and media houses are still applying Old Media
Model (explained later).
• Telecom have become Stagnant as vertically integrated
monopolies have gone or are going though structural separation
(AT&T, BT, Telstra), impacting their top and bottom line.
• Financial Services are Stagnant (Post GFC) as their Balance Sheet
is heavily leveraged and their traditional market has matured.
• Education -
• Healthcare & Pharma -
• Retail & Distribution -
• Energy & Utilities are going through a Rollercoaster journey.
High
LowRevenueVolatilityHigh
Hazardous Rollercoaster
Blue ChipStagnant
Low 5 Year Annualised Growth
Financial Services
(Post GFC)
Financial Services
(Pre GFC)
Media &
Entertainment
Telecom
Energy &
Utilities

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Impact on Industry Structure
Characteristics:
• Integrated Components
• Proprietary Interfaces
• High Barriers to entry
• All or Nothing
Emerging Product Mkt.
Emphasis:
• Performance
• Functionality
Horizontal Industry Structure Vertical Industry Structure
• Double Helix: All industries move between Horizontal to
Vertical Structures. This shift from one structural side to
another is w.r.t time is defined as clock speed.
• Digital Transformation has distrupted clock speeds across
all the industries fueled by evolution and penetration of
internet. Clock speed has become faster for every vertical
industry.
Source: Clock Speed – Charles Fine
Double Helix: Industries Move between Horizontal to Vertical Structures
Characteristics:
• Modular Components
• Standardised Interfaces
• Low Barriers to entry
• Mix and Match
Maturing Product Mkt.
Emphasis:
• Price
• Flexibility
• Customisation
• Convenience

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Heat Map - Impact on Industries
Finance
(Business
Model)
Customer
(User
Experience)
Telecom
Media &
Entertmt.
Financial
Services
Education
Healthcare
& Pharma.
Retail &
Distribution
Energy &
Utilities
Internal
(Ops.)
Learning
&
Growth
(Culture)
Extreme
Rating
Low
Moderate
High
Considerable

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Impact on Industries Cost Structure
Profit
Rent
Media
& Entertmt.
Telecom
Financial
Services
Education
Healthcare &
Pharma
Retail &
Distribution
Energy &
Utilities
Utilities
Dep.
Other
Wages
Purchases
Extreme
Rating
Low
Moderate
High
Considerable

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Impact on Telecom
Develop Build SellOperate Integrate Serve
Content &
Communities
Devices &
Local Ntwks
End User Svc
Applications
Platform
Network
Data Centers
• There is a fundamental shift in Telco’s traditional model which was about generating revenue from
analogue based voice and services.
• Emergence of IP based networks has led to digitistiaon of voice. This has led to emergence of new
players like Skype, Facebook and Google which is impacting their bottom and top line.
• Infrastructure stack for services as highlighted on right hand side is now on the verge of becoming
digital end to end. This is driving digitisation of services and business processes across the whole value
chain.
• End to end digitisation will allow telco’s to set up end to end service offerings in a virtual box.
• Data growth will require massive investment in cloud computing and Network Infrastructure upgrade

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Threat to Telco’s
Facebook
• Social Networking (communication) as a
core business service, largely asynchronous
group comm.
• Subsidised (free) to the end user and
funded by advertisers
• 600 M users on Mobile
Source: Google, Microsoft.com, Cisco.com, Telco2research.com, STL Partners
Telco
• Communications as core business service,
largely synchronous Peer-to-Peer (P2P)
communication
• Paid for by the end user
Calls
Conversations
Relationships
Communities
Telephony
SocialNetworks
Rendezvous
Volume
• Telco’s conventional business model (PSTN based) is on
decline because new digital players like Google, Skype and
Facebook have innovated. Conversation and Engagement
is driven by these digital platforms.
• On Mobile front they are facing serious threat because of
data growth driven by services launched in Mobile and
Social domain. ROI to meet data growth is dinsiminishing

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Opportunity for Telco’s
Vertical Industry Solutions
• Energy
• Healthcare
• Education
• Transport
• Government
• Entertainment
Own Brand
Over The Top
• Social Networking Apps
• Access independent
communications services
• Other app and appstores
• M2M Service Enablement
Core Services
• Improvement of Core
Product Portfolio
• Redefine Customer
Experience
• Leverage online
• Engaging Marketing
Infrastructure Services
• Data Centre Capabilities
• Mobile Offload
B2B Enabling Services
(3rd Party)
• Identity & Authentication
• Marketing & Advertising
• Payments
• Customer Care
Embedded
Communications
• Communications enabled
business processes
• Voice and messaging
with games
• M2M and Embedded
mobility connectivity
Source:Stlpartners,RoadmaptoTelco2.0

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Create and
Develop
Production Packaging
Publishing
Studios &
Networks
Entertainment
Impact on Media
Distribution
and Sell
Display

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Media Failure - Myspace
Reason
• Applied Old Media Business Model (advertising and Fees only) as Rupert grew his newspaper empire leveraging that locked
in Advertisers (via Google Search) on Upstream Side, and let the Customers create content (primarily blogs). Didn’t let or
opened Upstream Side to other Customers. No fees from Downstream Side consumer as they were subsidised.
• Network effects on Downstream side are not leveraged on Upstream side – leading deterioration in asset and momentum
shifting towards other platform like Facebook and Twitter
Only 1
Customer
(Advertisers)
Content Distribution
Customers
(Subsidised)
Revenue
MYSPACE
Platform
Upstream Downstream
Cost
Source: Google, Strategies for 2 Sided Markets, Thomas Eisenmann, HBR
• Rupert Murdoch identified an opportunity with Myspace
(Social Media), but couldn’t leverage it.
• Turned out to be a losing bet.

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Media Success - Facebook
Source: Google, Strategies for 2 Sided Markets, Thomas Eisenmann, HBR
• Mark Zuckerberg and his understood the potential of
multi sided model opened Facebook's platform via APIs
• Until now its paying him well.
• Next challenge is leveraging Mobility and increasing
revenue share from that.
Reason
• Applied New Media Model in a 2 sided market
• Opened Platform for various Upstream Customers – Hosted Content from various players, Ads, 3rd party app Developers
• Opened Platform for various Downstream Customers – Market Research Companies
• Networks effects on Downstream side are leveraged on Upstream side – built mass and momentum
Various
Customers
Content Distribution
Customers
Paid Data
Research
Revenue
FACEBOOK
Platform
Upstream Downstream
Cost
Revenue
Revenue
Cost

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Opportunity for Media

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Impact on Financial Services

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Impact on Financial Services

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Impact on Banks end to end Operations
Channels
Mgmt. Info.
Systems
Security
Infra.
Fin Mgmt.
(ERP)
HR Info.
Systems
Business
Rules Engine
Risk &
ComplMgmt
Fraud
Mgmt.
Tele. Internet Mobile ATM POSAgents
External
Sales
Customer Management
Branch Govt .&
Utilities
SWIFT
Network
Collection
Agents
Visa/MC
Network
Clearing
House
Central
Bank
Market
Feeds
Foreign
Banks &
Branches
Other
Customer Sales/Service Collections
Originating &
Decisioning
Dispute
Resolution
Systems & Asset Mgmt. and Monitoring
Data
Directory
Services
Customer
Information
Operational
Svcs Data Store
HR
Management
Enterprise Data
Warehouse
………………
Integration Layer (Batch & Real Time)
Enterprise Content Management BPM Workflow
Core Banking
Demand
Deposits
Time
Deposits
Retail Lend
& Leasing
Time
Deposits
Other
Deposits
Other
Services
Payments & Transfers
Customer Info File (CIF)
General Ledgers (GL)
Comm.
Demand
Deposits
Commercial
Lending
Comm.
Time Deposits
Corporate
Lending
Retail Commercial Front Office Apps
Cards, Cash Mgmt,
Wealth Mgmt., Product
Specific (Insurance)
Back Office Apps
Stmts, Card Processing,
Underwriting, Chq.
Clrng & Issuance
ExternalInterfaces

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Impact on Education

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Evolution of Retail
Match Mismatch
Mismatch Match
Functional
Products
Innovative
Products
Responsive
SupplyChain
Efficient
SupplyChain
• Products - From Functional to Innovative Products
• Services are becoming Personalised
Source: HBR - What is the Right Supply Chain For Your Product

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Impact on Retail

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Impact on Utilities

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Source: BCG
Impact on IT, Relationships and Stakeholders
Applications
Speed&
Cycle Time
Methodology
and Tools
Skills
Customer to
Business
Business to
IT
IT to IT
IT to
3rd Parties
Industrial (non Digital) Speed Digital Speed
• Mature technologies with long life cycles • Emerging, short life time, built on fast changing
technology with legacy technologies
• Release cycle of 6 to 12 months driven by
planned business needs
• Quick cycles (<1 mth) from idea to deployment,
driven by rapidly changing users needs and comp.
• A hierarchical organisation using established
frameworks and standardised approaches to design
• Self organising teams using agile tools, fast
evolving SDK and automated
• Individuals with specialised skills
• Jack of all trades who combines upto date
knowledge of technologies and business
• Predictable demand via established channels,
products and processes
• Unpredictable demands due to evolving trends,
technologies and channels
• Siloed and Fenced driven by mid and long term
strategies
• Highly collaborative and constantly changing
• Siloed and Fenced, vertically integrated, tech stack
is stable
• Collaborative and horizontally integrated, tech
stack is constantly evolving
• Buyer – vendor relationship, IT controls the pace of
interaction
• Participating in 3rd party ecosystem, the ecosystem
sets the pace

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Customer Engagement ViewMobile
Social
Web
User
Experience
Local
Gamification
Customer Engagement in Digital Transformation Era

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Functional View
Mobile
Social
Local
Customer Experience
Cloud as a Platform
Services
BigDataandAnalytics
BoundaryLess
(Information)
Web
Gamification

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Source: Boersma’s T-Model of UX - 2004
Information
VisualDesign
Introduction
InformationArchitecture
UsabilityDesign
Copywriting
Marketing&Communication
Mobile,PC,SmartDevices
User Experience Design
User Experience - Design Model

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Why Social Media
Source: Capgemini - Social Business Transformation
Low High
Low
Competitiveness
SocialCustomersHigh
Customer
Engagement
Corporate
Branding
Urgent
Enterprise Wide
Cost
Reduction
Customer Engagement
• Marketing
• Sales
• Production
• Service
Enterprise Wide
• All Process
Corporate Branding
• HR
• Corporate Communication
Cost Reduction
• Product Develop.
• Production
• Procurement
• Logistics
Social Media is not a fad anymore, it is on the verge of becoming a
mainstream medium in a B2B and B2C environment. It is driving major
changes in 4 main areas, Customer Engagement, Branding, Cost Reduction
and Enter prise wide processes. Following areas under each heading is
leveraging this medium for facilitating Digital Transformation
Social Media must be a part of Digital Transformation roadmap so that enterprise
goals are aligned across all the business units. Risk of running a silo based Social
initiative within an organisation or by marketing team only will not give benefits
in terms of ROI.

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Social Media – More To Come
Captures FutureCaptures PresentCaptures Past
• There is more to come in Social Media. Digital platforms to this date have captured past and
present of a customer quite well, courtesy of Facebook (Primarily Photos) and Twitter
(Primarily Announcements).
• For capturing future, like announcements, events, meetings, tasks, more work is required.
Leveraging Data Analytics and Artificial Intelligence will drive emergence of a sustainable
platform.
Facebook
(Photos)
Twitter
(Announcement)
?

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Social Networks
(Facebook, Twitter, Foursquare, Linkedin)
Monitoring & Analytics
(Brand Monitoring, Insights)
Aggregation
(Identity Brokers,
Aggregators)
Publication
(Apps, Management)
Social Platforms
(Community, Collaboration, Blogging, Innovation, Social
Commerce )
Services
Infrastructure
Source: Altimeter Group, Business Stack
Social Media Business Stack
This stack can be used to map current footprint of Social Media penetration within an organisation.

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Gamification
• Gamification is composed of the incentives and rewards that
the users are awarded for performing tasks or challenges,
and achieving goals. It is critical to understand user
objectives and motivations to create a game economy that
implements a user-centric design.
• One of the key distinctions of a gamified transformation is
the calculated use of intrinsic rewards to create a meaningful
experience for the users. Just like in real economies, in game
economies, these currencies can easily become inflated and
lose their value if they are overused. Scarcity is a key
motivator to maintain the value of currencies in a game
economy.
• Four basic currencies that users accumulate in game
economies — fun, things, social capital and self-esteem —
that are implemented through game mechanics, such as
points, badges and leaderboards.
Source: Gartner 2012
Self Esteem
Social Capital
Fun
Things
Game Economy

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Big Data
Structured Unstructured
Batch
Data Variety
& Volume
VelocityRealTime
In Memory
Analytics
(Payments, POS,
Weather)
Hadoop
Map Reduce
(Video, Forums,
SharePoint, Text Doc)
Data
Warehouse
Big Data
(Google+, Twitter,
Facebook, Text
Message, Clicks)
Analytical
Factory
Big Data
Top Down
Business Issue
• Big Data growth is predominantly driven new
and emerging information goods like
Facebook, Twitter. Integration with existing
digital assets has become a business issue.
• Big Data growth needs to be addressed with
speed, agility and regular iteration as part of
digital transformation journey. This data
requires robust approach of design and
analytics to give insights to business (known
as BI).
Bottom Up
Internal & External
Source: Booz & Co 2012

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Big Data - Analytics
Low High
Low
Business Value
ComplexityHigh
Report
(what happened)
Monitoring
(what’s happening now)
Analytics
(what didn’t happen)
Forecasting
and Prediction
(what might happen)
Prescriptive
What Actions
(Should be Taken)

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Mobile
Low High
Low
Computing
Power
PortabilityHigh
Mobile/
Smart
Device
PC/Desktop
Source: Forrester 2011
Contextual
Pull and
Push
Relevant
Entertmnt.
Local
Personal
Mobile
Printer
Wearable
Devices Tablets

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Mobile - User Experience
Motion
(Gesture based)
VoiceTouch
Source: Forrester 2011 Future of Mobile is User Context
To
(iPhone)
Vo
(Siri)
Mo
(Samsung 4S)

42
Mobile – App Ecosystem
• App store based ecosystem is driving the shift towards
massive uptake of smart devices by Consumers and
Enterprises.
• App Stores are a control point for
o Discovery of apps
o Distribution of apps
o Monetisation of apps
o Exit barrier for users
o Consumer insights
• In future, we'll see smarter, connected apps. There will be
a shift from native to hybrid and web apps.
Multiplatform apps will reign supreme.
Low High
Low
Intelligence
EngagementHigh
Mobile
Engagement
Transformative
App
Mobile
Intelligence
Simple
App
Traditional/
Legacy Systems
Source: Frog, Mobile Strategy - 2013, IBM

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Mobile – App Type and Distribution
Source: Frog, Mobile Strategy - 2013, IBM
Interoperability
Functionality
App Store Distribution Driven Web Distribution Driven
Native App
Cross
Compiled
App
Hybrid
App
Web
App
Mobile
Site

44
Mobile - Cash and Card less Currency
Contactless
Payments
SMS
Transactions
Direct Mobile
Billing
Mobile Web
Payments
• Mobile device (especially a smart device with NFC
capability) has become a mode of payment
transactions.
• Users don't need to carry cash or a debit/credit card
Credit: Bank 3.0
Virtual
Payments
P2P
Payments
In App
Payments

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Source: Mobile Strategy, Dion Hinchcliffe
Mobile Stack – Functional View
Security Ops
Business
Apps
Messaging
Customer
Apps
Content
Enablement
Platform
Support
Location
ServicesApp
Store

46
Localisation
Place
Vicinity Context
Localisation
Things
Position
Proximity

47
Source: APIs and Open Platform –Federico Cargnelutti
• Moving from licensing model to Utility and Brokerage
(using API’s)
• Commodity Software or Business Process will be
enabled via Cloud
Cloud - Turning Products into Platforms

48
Cloud as a Platform – Types, Benefits
Source: Alan Quayle Blog
Private
Public
Hybrid
• Ease of Access,
Anytime, Any
where
• Standard SLA
• Cheap
• Highly Secured
• Customisable SLA
• Expensive
• Secured
• Customisable SLA
• Moderately
Expensive
• Shared Services
and Expertise
• Commodity
Systems
• Full Control
• Sensitive and
Mission Critical
Systems
• Moderately in
Control
• Scalability
Means to Business BenefitsCloud Type
Decentralised Centralised
Slow
IT
TimetoMarket&
Innovation
Rapid
Traditional/
Legacy Systems
Cloud
Hosted Systems
2nd Era
Revenue
Generation Side
Business
Transformative
Systems/Apps
1st Era
Cost Side
Opex Control
Driven Apps

49
Cloud as a Platform – Services Model
Characteristics
Example
Strategy
• Procurement
• E-mail
• HR
• Billing
• Low Level of Change
• Non Differentiating
• Available in Cloud
• SAAS, PASS, IAAS
• (drives
standardisation)
• e-Channels
• BPM
• B2B services
• High level of change
• Differentiating
• Need for speed
• Build agile IT
Platform with IAAS
and PAAS
• Large core banking
platforms
• Analytics and
modeling
• High stable volumes
• Differentiating
• High Performance
• Build internal cloud
Commodity Agile Scale
• R&D
• New markets and
propositions
• Uncertain demand
• Uncertain
requirements
• Scalability
• Maximise cloud
sourcing for variable
costs
Growth
Source: BCG
IT Services Model

50
Challenges
Finance
(Transactions)
Customer
(Engagement)
Internal (Ops.)
Learning,
Culture
&
Infrastructure
Rapidly Changing Customer
Desire and Needs. Digital
generation is always on the
move.
Business process are
fragmented, need to digitise
all, leveraging new digital
platforms
Resistance to Cultural Change
Fail Fast is Missing
Lack of unified Marketing, and
fragmented Channels
Old operating Model.
Lack of Analytics and
Intelligence on Digital
Operations
Ageing infrastructure
and Information Overload.
Ad hoc strategy to leverage
and integrate social and
mobile ecosystems. No well
defined KPIs
Lack of Customer Centric
Services. Most services are
functionality driven and aren’t
intuitive
Lack of collaboration and Silo
based Approach hindering
Boundary less information
flow

51
Why It’s Difficult
Source: Creating Corporate Advantage , David J. Collis & Cynthia A. Montgomery
Structure,
System
&
Procedure
Linkages
&
Alignment
Intro Growth Maturity Decline
C
C
Drives
Behaviour
People Shapes
Culture
Time
Culture Shapes People
Culture is the biggest
challenge for any
transformation to be
successful.
For matured organisation cultural challenge
is magnified enormously as it drives the
behavior of people. Any change to that is
resisted vigorously.
Cultural

52
Benefits

53
Adoption and Management

54
Readiness

55
Organisation Maturity
Low High
Low
Transformation
Intensity
Digital
Intensity
High
Beginners Conservatives
Advanced
(Desired State)Fashionists
Source: Capgeminu Digital Transformation 2013

56
Capability Maturity
Source: UQ and EY, Digital Capability Maturity Framework. 2013
Strategy
Digital
User
Experience
Low Moderate Considerable High Extreme
Design
Meaningful
Content
Channel
Integration
Operations
Governance
Digital
Infrastruc.

57
IT Maturity
Business
Silos
Standardised
Technology
Optimised
Core
IT Maturity
Business
Modularity

58
Operating Model Design

59
Financial
Learning & Development
Customer
Internal
Value
Optimisation
Governance - Bus. & IT Goals
Enterprise Goals Governance Objective
Risk
Optimisation
Resource
Optimisation
Corporate
Learning & Development
Customer
Internal
Financial
IT Goals Enterprise Goals
Customer
Internal
Learning&
Develop.
Evaluate, Direct & Monitor
Deliver, Service & Support
Align, Plan & Organise
Build Acquire & Implement
COBIT (IT) Process IT Goals
Corporate
Customer
Internal
Learning&
Develop.
1
2
3
Stakeholder
Goals Mapping
Cascade to
Process Level
Via Business &
IT
Transformation
Source: COBIT

60
Summary

61
Appendix

62
Services
Product
Design
Service Strategy
Service
Portfolio
Customer
Segments &
Insights
GTM
Approach
Pricing
Delivery
Process &
Tools
Op.
Excellence
& Metrics
Service Organisation
Service Culture
Offering Sales Delivery
Service
Excellence
Impact on Service Industry

Digital Transformation

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