Digital Transformation in 4 Steps

Secrets of
Successful Digital Transformation
Tunç Noyan

"It is not the strongest of the species that survive, nor the most
intelligent, but the one most responsive to change.”
Charles Darwin
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Exponential Evolution
More capability than our needs
Our imagination is the limit
Continue to double its capacity
Source: https://en.wikipedia.org/wiki/Transistor_count
1
10
100
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
TransistorCount
Thousands
Year of Introduction

“Disruption is the new norm. Today, if you’re not disrupting
yourself, someone else is; your fate is to be either the disrupter
or the disrupted. There is no middle ground.”
Salim Ismail
Exponential Organizations: Why new organizations are ten times better, faster and cheaper
than yours

Accelerating Cycles
1955à 61 years
Todayà 17 years
Source: https://cims.ncsu.edu/will-your-company-be-a-survivor/
S&P Average Corporate Lifespan

Conventional vs Born-digital
Linear Exponential
Stability first Fluent & agile
More staff More software
Acquire Freely
Growth pattern
Business model
Response to growth
Access to resources
Conventional
Digital

Large companies are dying…
52% of Fortune 500 companies
disappeared since 2000.
The decline of large companies
has increased in the last 12 years.
Corporate innovation does not
work because firms are still too
slow to move and change their
working practices.
Source: Narry Singh - Global Head of Growth and Strategy for Accenture Digital

Corporate Innovation and R&D
Source: “Transformation with a capital T” - McKinsey & Company
Success
30%
Failure
70%
The reported failure rate of large-scale
change programs has hovered around
70 percent
over many years.

Waste of Money
9
“What percentage of the money spent on digital projects by your company over the past 12 months
has been wasted?”
Source: “A Crisis in Digital Transformation” June 2017 – Wipro Digital
• Only 1/3 of executives believing they are getting
close to 100% of their ROI.
• Almost 1/4 of executives think that 25% or more of
their investments fail to meet their targets.
• 2% of executives say that 100% of their investment
is wasted.
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Waste of Time
• 41 percent of the executives can’t see a
clear benefit after the digital
transformation projects.
• Even worse, 29 percent of CEOs think their
projects are waste of time.
Source: “A Crisis in Digital Transformation” June 2017 – Wipro Digital
10
“I secretly think that most digital transformation projects in my company are waste of time.”
Agree strongly
9% Agree
somewhat
10%
Neither agree or
disagree
22%Disagree
somewhat
29%
Disagree
strongly
30%

Why Does It Fail?
• Lack of clear transformation strategy
• Misalignment of multiyear projects with corporate
management cycles
• Lack of consensus in leadership team
• Working without solid outcomes
• Demotivation caused by ambiguity
• Lack of right skills
• Organisational inertia
• Too much technology focus
• Fear of failure
11 Copyright © 2018 ValuesBox All rights reserved.

13
LEADERSHIP
is the
KEYSTONE
of a successful
Digital Transformation

Three Critical Points
Communication
People
Leadership
• Must be regular and clear
• Involve everyone
• Based on main purpose
• Positive messages
• Engage and empower
• Develop skills
• Support innovation
• Listen to them
• Must be a team
• Lead the change
• New ways of working
• Work in the field
14
For a successful digital transformation

Secret Formula
Start with leadership team
Define “the Purpose”
Focus on customer
Engage people and empower them
Communicate regularly and clearly
Foster innovation
Take small steps first

Digital Transformation in 4 Steps

4 Steps at a Glance
Envision
• Assemble leadership
• Focus on customer
• Gather information
• Define "The Purpose"
Prototype
• Start with quick wins
• Fail fast! Learn fast!
• Build trust &
momentum
• Plan the future
Launch
• Tear down and rebuild
• Exponential growth
• Build digital
capabilities
• Reconstruct processes
Maintain
• Enable full potential
• Simplify everything
• Adopt new culture
• Develop talent & skills
17
Make this fly!
Disrupt your own business!
Don’t run before you can walk!
Why do we need to transform?

Envision
Kick off with “Why?”
Assemble the leadership team
Focus on customer experience
Involve stakeholders
Gather information
Benchmark against best practices
Consider trends and potentials
Define “the Purpose” and strategy

Prototype
Select and initiate quick-wins
Fail fast! Learn fast!
Get results in 3-12 months
Build up expertise
Fund future projects with quick wins
Build trust and momentum
Define “Minimum Viable Products” (MVP)
Plan the future, create a roadmap

Launch
Tear-down and rebuild business model
Focus on exponential growth
Develop agile ways of working
Build new digital capabilities
Reconstruct commercial processes
Change management approach
Engage stakeholders

Maintain
Transformation is a continuous process
Enable the full potential of the organisation
Cultivate the necessary talent and skills
Adopt digital ways of working
Simplify everything, implement “Lean” and “Agile”
Define new values and behaviours
Make innovation an effective part of the culture

Tunç Noyan
Tunç is a dynamic and solutions-oriented professional with more
than 20 years of comprehensive experience in all areas of IT
management and business management operations within highly
reputed organizations such as Microsoft, FIAT-Chrysler
Automobiles, IBM and Erdemir Group.
He possesses success stories in managing IT strategy and
transformation, as well as building and leading top-performing
teams, large scale technology projects, and driving business
process enhancement.

ValuesBox Ventures
www.valuesbox.com
info@valuesbox.com
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@valuesbox
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