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Enterprise digital Labs
The document discusses the establishment of enterprise digital labs as a crucial step for traditional enterprises undergoing digital transformation. It outlines the need for a structured approach involving new roles, cross-functional teams, and iterative implementation to foster innovation and agility. Key factors such as data utilization, strategic technology adoption, and cultural integration are emphasized to enhance business impact and customer engagement.
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Enterprise digital Labs
- 1. 1 Enterprise Digital Lab: Yourway to Enterprise Digital Transformation!
- 2. Agenda Enterprise Digital Lab:An Overview Enablers for creating an Enterprise Digital Lab 1 2 2 Conclusion3
- 3. A Digital Enterpriseis one that leverages customer, contextual and enterprise data and use new-age technologies to drive exponential business impact 3 Customer Targeting & Engagement Supply Chain Optimization Workforce & Partner Enablement Digital Products & Services Risk Management Operational Excellence AREAS OF IMPACT FOR AN ENTERPRISE CRM Data Partner Data Warehouse Data Weather/ Seasonality Data Natural Resources Data Traffic Data Digital Platform Digital Business Process / Operations Loyalty Program Data Point-Of-Sale Social Media App Usage Data On-board Systems Data Process- Related Data Corporate Updates & Notifications Contextual Data Customer Data Enterprise Data Modern IT Virtualization Hybrid Cloud Sensors Mobility Enterprise Security Analytics Platform Software Defined Network
- 4. Zinnov recommends thefollowing four steps for all traditional enterprises that are undertaking the digital transformation journey • Learning industry best practices • Determining key enabling technology • Understanding internal and external data sources • Strategies, initiatives and activities of digitally native enterprises & start-ups 4 • Evaluating current state & desired state of business initiatives and prioritizing them in terms of: • Business Impact: Benefits and Risk • Ease of Implementation: People, Structure & Technology • Determining a step-by-step map for creating a digital enterprise: • People • Processes • Infrastructure • Ecosystem Connect • Part by part implementation of digital solutions incrementally and iteratively along with the required IT infrastructure for those solutions Knowledge Build EDT knowledge base and understand possibilities Digital Priority Assess business & digital priorities Organizational Readiness Establish a step-by-step framework for digital readiness Implementation Implement digital solutions incrementally and iteratively 1 2 3 4
- 5. To facilitate thisdigital transformation, enterprises are increasingly setting up Digital Labs/Hubs in geographies with rich product capabilities, such as the Bay Area (US) and Bangalore (India) 5 US (Bay Area, NY, Seattle) Bangalore Large number of product companies, a developed and mature ecosystem, abundance of fresh as well as installed talent pool, and a widespread start-up culture has resulted in several traditional enterprises setting up their digital labs in the Bay Area Increased globalization of tech enterprises, a booming start-up landscape, proliferation of new-age technologies, availability of digital skillsets (due to the presence of product companies as well as institutes such as the IISc.) are the collective force behind centers setting up digital hubs in Bangalore 13 acquisitions 300+% CAGR in Headcount USD 80 MN Annual Investment* Launched in Feb, 2015 to create analytics- driven personalized shopping solutions and omni-channel experience Note: Estimated annual investment
- 6. Reasons for settingup digital labs include developing digital capabilities to serve millennial customers better, fostering and implementing new ideas, and building and disseminating digital culture throughout the organization 6 • Started in the Bay Area with the USD 300 MN acquisition of Kosmix; acquired more new-age start- ups such as OneRiot, Grabble, Set Direction, Social Calendar, Adchemy, Stylr, etc. • Predominant focus is on Omnichannel retailing and expansion of web services • Walmart also caters to its global e-commerce platform from its Bangalore center • Set up lab in the Bay Area by partnering with Sapient Nitro in 2013 • Focus areas include Mobility, Digital Shopping Services, Online Search and social media development • Employees range across the spectrum of designers, data scientists and marketing experts (Cartwheel is one of their marquee products) • Focus on collaboration with start-ups and VC firms • Investing USD 100 MN to set eight new labs worldwide, including those in Bangalore and NY for enabling clients work • Focus areas include design, mobile and digital marketing • "Our researchers are developing capabilities to harness the value of data to help clients create personalized experiences, while designers are working with clients to develop the design that makes a difference in business outcomes“ - Bridget van Kralingen, VP, Global Business Services
- 7. In accordance withthis market trend and its 4-step EDT roadmap, Zinnov recommends setting up an Enterprise Digital Lab within the traditional enterprise to provide the catalysis necessary for effective digital transformation 7 Characteristics an Enterprise Digital Lab turns digital transformation initiatives into a program that can be repeated within the organization. It provides the necessary people, processes, technology and infrastructure for digital initiatives packed into a short time frame. It liaisons with different BUs and functions of the organization to understand their digital requirements and initiatives Sales & Marketing IT Enterprise Digital Lab CMO Supply Chain BU 1 CIO CDO Supply Chain Head CXO / BU Head CEO Customer Targeting & Engagement Workforce & Partner Enablement Operational Excellence Supply Chain Optimization Risk Management Digital Products & Services BU 2 CXO / BU Head Enterprise Digital Lab: Structure Why is this structure recommended? • Digital Team is cross-functional and effective in breaking siloes • Results in standardized digital initiatives across all Business Units and consistent brand messaging • More responsive to changes in market as it is a separate entity in the organization • Direct and clear view of the organization’s goals and objectives as the CDO directly reports to the CEO • Rapid dissemination of digital best practices across the organization • Separate digital budget allocated Note: Digital Horizontals such as Workforce & Partner Enablement, Operational Excellence and Risk Management have a one-to-many relation with different functions and BUs. For instance, depending on the requirement, the Risk Management division of the Enterprise Digital Lab can report to Supply Chain function or a BU. The EDL is led by the Chief Digital Officer, who directly reports to the CEO GE operates with a CDO-led structure
- 8. Agenda Enterprise Digital Lab:An Overview Enablers for creating an Enterprise Digital Lab 1 2 8 Conclusion3
- 9. We have identifiedfour key enablers critical for setting up an EDL Technology 9 People Processes Ecosystem Connect C A B D • New Roles & Responsibilities • Digital Talent: Acquisition and Development • Digital Skillsets • Technical Career Path • Distributed Agile • Scaled Agile Framework • Multi Speed IT • New Age Technology and Tools • Platform Partnership • Service Provider Partnership • Start Up Connect • University Connect
- 10. In order tocreate the EDL, several new roles and responsibilities need to be created 10 Chief Digital Officer Digital head who drives end-to-end strategy, design & implementation of the digital roadmap to help traditional businesses transform • Technology & Business Expert • Collaborative skills (with CIO & CMO) Skills Required Data Scientist Examines and analyses breadth and depth of data from multiple sources using analytics platforms, in order to derive actionable insights • Data Analytics • Platform Expertise Data Visualizer Presents data in a lucid and understandable manner for employees, partners, customers, etc. in order to help them notice trends and patterns • UI/UX • Multimedia (Audio & Visual) Skills Product Engineer Helps in the development of the digital solution incrementally and iteratively • Software Product development • Agile Methodologies Solution Architect Defines the architecture required to implement solutions to meet digital requirements while ensuring alignment with the enterprise architecture • Mobility • Software Product development DevOps Enables collaboration between development and operations staff through all stages of the development lifecycle of the digital solutions • Software Product development • Agile methodologies Scrum Master Helps the digital team in adopting Agile methodologies better, which are required for the iterative and incremental development of digital solutions • Software Product development • Data Analytics • Mobility • UI/UX Product Manager Strategizes, assigns and drives the development of digital solutions • Software Product development • Agile Methodologies • Business Knowledge • Communication Skills Responsibilities People
- 11. A well-defined teamstructure also needs to crystallized, along with an extensive Digital L&D initiative 11 People Close Collaboration SMAC-skilled technologists User Experience Experts Other Skills- REST APIs, Linux, etc. SCRUM Master, DevOps and other Agile roles CEO Chief Information Officer Chief Digital Officer Cross- Functional Digital Strategy Team Digital L&D Team Digital Effectiveness Monitoring Team 1 Define • The HR, BU Leaders, CDO & the CIO should Define & design L&D structure collectively • Determine course structure and focus areas keeping in mind business requirements, existing & required talent, presence of CoEs • Ascertain Delivery model: On-the-job, External Training, Formal (Live Classroom, e-Learning) 2 Allocate Dollars • Allocate budget to the L&D program • Budget could come from the HR, the CDO, the business or a combination 3 Spread Awareness • Actively spread organization-wide awareness on the purpose of the program and its goals 4 Implement • Sample workshops include those on Agile frameworks, customer relevance, tools such as R & SAS, domain knowledge, digital career path, etc. • Deploy innovative learning (gamified learning, exchange programs with product companies) • Popularize e-Learning tools & real-time knowledge- sharing platforms 5 Assess • Assess success for program as well as employees • Metrics for program evaluation include alignment to business, employee development plan, faculty evaluation, budget utilization, etc. • Metrics for employee evaluation include appraisals, training hours, courses taken, new skills developed
- 12. Create and integratethe Digital Operations first (focus on Bottomline), then think of redefining value proposition (Topline) With time and increasing digital maturity of the enterprise, the role of the CDO needs to evolve into one that caters to both topline and bottomline focus (depending on the business model) 12 People Path 1 Path 3 Path 2 Custom Path Path 1 Enhance, extend & reshape the value proposition with increase in customer base & satisfaction and Digital Products & Services, then focus on integrating Digital Operations Path 2 Build new set of capabilities around transformed Operational model (Bottomline) and Value Proposition (Topline) in a lock-step Path 3 Depending on the business priority and market, reach the EDT goal with iterative steps between Operations model (Bottomline and Value Proposition (Topline) Custom Path ValueDeliveryFocus(Bottomline) Value Proposition Focus (Topline) Enhance Extend Redefine CreateLeverageIntegrate Note: Map from Persistent Systems
- 13. Case Study: Aseismic shift in vision, culture and roadmap led by the CDO, has transformed the “Starbucks Experience” from a simple brick & mortar one to a remarkable digital one 13 Responsible for Starbucks’ core digital businesses, including mobile payments, web, card, loyalty, e-commerce, Wi-Fi strategy, & the Starbucks Digital Network Adam Brotman: The man behind Starbucks’ digital revolution Roles & Responsibilities Evolution of the Chief Digital Officer’s role at Starbucks Collaboration between the CDO and CIO Adam Brotman CDO, Starbucks “Online world gives us the opportunity to build an authentic relationship with our customers in new, interactive and scalable ways. But there are still no shortcuts or different rules just because that relationship is built up over time over digital touch-points vs. the offline world. You still have to be responsive, authentic, and, in our case, the best online barista in terms of our tone, pace, and mix of posts” Future Roadmap: Extending Starbucks’ customer loyalty program to other companies thereby creating a digital wallet Latest Endeavor: Allow customers in one undisclosed geographic test market to start placing pickup orders from the Starbucks app later this year 2008 2009 2012 Starbucks Digital Ventures group created Lead by the then CIO Separate from IT and Marketing, but collaborated closely with both The roles SVP & GM created for Digital Ventures Charter: Web, mobile, social media, e-commerce, Wi-Fi, Starbucks’ digital network & emerging store technologies The role of CDO created Charter: Digital Ventures, Global Digital Marketing, Starbucks Cards & mobile payments and loyalty. The last three functions were previously managed by three separate groups Unofficial (monthly) & official (quarterly) Digital Scrums held between the Digital and the IT team, chaired by the CDO and CIO both Agenda includes whiteboard sessions to create the next opportunities for better customer experience Daily collaboration between the CDO and CIO Frequent visits to the store managers by the CDO & CIO together Weekly review of the digital roadmap by the digital & IT team collectively Moved from a waterfall disjoint model of digital technology delivery through separate centers of excellence to an agile model of Tiger or SWAT teams which are a lot more collaborative and innovative The CDO, CIO and CSO collectively work for Starbucks’ rapidly evolving digital strategy & report to the CEOHeadcount Digital: 110+ IT: 760+ People
- 14. Bay Area, NewYork City and Bangalore have the highest concentration of Digital talent owing to the presence of product companies, top universities and a booming startup culture City Legend High Medium-to-High Medium Low Companies with digital / innovation labs 14 San Francisco Bay Area New York City Toronto London Stockholm Prague Bangalore Shanghai Beijing People Tesco Target Walmart JCP Walmart McDonalds J P Morgan Nestle Target Kohl’s American Eagle Capital One Big Data, Machine Learning & NLP 218 K Mobility 312 K User Experience Design 220 K 2013 2020 2025 2030 Global EDT Talent Pool* 1250K 1850K 2850K 750K Note: *Contains major EDT talent hubs, i.e. USA, UK, India and China
- 15. The Digital Talentis radically different from the typical IT talent in terms of skills, approach, business- acumen and compensation structure 15 People Digital Talent IT Talent • Strong computing skills (esp. Natural Language Programming, Machine Learning, Artificial Intelligence) in addition to JavaScript, HTML5, C++, etc. • Strong background in Statistics • Adept at Java, Python, C, C++, HTML, etc. • Knowledge of statistics not required • Have a Product approach • Adept at Agile, Kanban, etc. • Work in short cycles • Follow Agile or Waterfall • Have long project cycles • Domain expertise/ business acumen is a must-have • Cross-functional working • Domain expertise/ business acumen is nice-to-have • Work in silos • Usually Masters degree from top universities such as Stanford, IITs, IISc, King College, CMU, etc. • A substantial fraction also has a PhD. • Computer Science graduates from Tier1 or Tier2 engineering colleges • Startups and Tech Mafias such as Apple, Facebook, Google, etc. • Typically spread across service providers • Compensation is high. The median* for the following experience levels are: • Entry: $ 90K • Mid-Career: $ 112K • Experienced: $ 112K (Goes up to $ 300K ) • Compensation is lower. The median* for the following experience levels of a Software Engineer: • Entry: $ 70K • Mid-Career: $ 80K • Experienced: $ 90 - 100K Skillset Approach Business Knowledge Education Talent Concentration Compensation Note: *US specific
- 16. Enterprises need todeploy innovative strategies to acquire and hone this talent 16 People Aqcui-Hire & Strategic Acquisitions Bought 80% stake in BlinkBox, 91% stake in We7 & Mobcast Acqui-hired Lucky Sort; retained Big Data Visualization Team; Lucky Sort was shut down Incubation Accelerator to partner with tech start-ups through an Incubator Program $100M fund to invest in Digital Commerce Startups Geo-Presence Set up a Digital Lab in Bay Area to leverage the ecosystem Increasing number of digital initiatives from Bangalore Innovative Recruitment Loreal’s website “Reveal” has gamified its recruitment process, lets visitors communicate with employees and participate in real-life problem-solving cases Digital L&D Employee Exchange Program Investment in Digital Training Presence of a structured Digital Career Path The HR should be involved with the business in creating & implementing well-defined digital training Employee Exchange Programs should be launched with product companies E.g.: P&G with Google Corporate buy-in to ensure investment in digital training programs A well-structured Digital TCP* with its own rewards Acquisitionof DigitalTalent Developing& Retaining DigitalTalent Note: *Technical Career Path
- 17. They also needto create a well-structured Technical Career Path for their digital employees 17 People Implementation & Maintenance Development/Design & Ownership Conceptualization Developer Senior Developer Technical Lead Architect -> Senior Architect -> Chief Architect • Fixes small bugs & does small-scale implementation • Works with the UI/UX designer with the Project Manager acting as liaison • Undertakes module ownership and process design responsibility of the module • Undertakes overall ownership of most of the system; does short- term decision-making • Hereon, can decide to be a Manager or an Architect • Complete ownership of the entire system with all decision-making power at the process design and conceptualization level (which framework to choose, etc.) • With progressive seniority, the breadth of responsibilities increase. Senior Architect is responsible across products whereas the Chief Architect is responsible across the BU Business Analyst • Operates & maintains pre- defined statistical models • Develops statistical data models and analyses them using regression, K means clustering, etc. • Ownership increases with progression to Principal role Senior Business Analyst • Creates cloud-based analytics platforms • Develops algorithms for data modelling, simulation & optimization • Designs experiments, generates business insights and visualizes results Note: Some of the tools commonly used include SCOPE, R, JMP, SQL, WEKA, MATLAB, SAS, Mahout, Scikit-learn, etc. Note: Some of the tools commonly used include JavaScript, HTML5, CSS3, Angularjs by Google, etc. AnalyticsEngineering Principal Business Analyst Illustrative
- 18. Future TCP Model- Model* Companies will need to develop and enhance the technical career path for their digital talent to expedite digital implementations 18 People Quick time to market is leading the wave of change • High Level Understanding of the Technology Stack Areas • Depth of understanding in one area of the stack such as mobility or application framework etc. • Distinct roles for development, quality assurance within a single stack area Data O.S / InfrastructureMobility App Framework UI/ UX design , development, integration, deployment, validation & monitoring Data migration, mining, modeling, storage & analytics Private or hybrid cloud development, customization, testing & maintenance Horizontal/ Vertical specific app design, build ,roll out & support O.S/ Infra Mobile Data …. Illustrative Current TCP Model - T Model TraditionalModelTraditionalModel Mobility OR Data OR OS/Infrastructure OR App Framework • High Level Understanding of the Technology Stack Areas • Depth of understanding in at least two areas of the technology stack such as Data as well as App framework • Amalgamation of development and quality assurance roles to support continuous integration which is imperative for digital implementation O.S/ Infra Mobile Data …. NewAgeDigitalModel OR UI/ UX design , development, integration, deployment, validation & monitoring Data migration, mining, modeling, storage & analytics Private or hybrid cloud development, customization, testing & maintenance Horizontal/ Vertical specific app design, build ,roll out & support Note: Model is currently being implemented at Persistent Technologies Tech Stack Tech Stack
- 19. Successful implementation ofTCP requires a comprehensive approach that tackles the challenges inherent at each stage of TCP maturity 19Note: *Individual Contributors HR Groundwork Pilot Role Models Scalability Institutionalization & Growth To create policies regarding Digital TCP to ensure a good launch To spread awareness, exposure and create processes to enhance Digital TCP To create the core members of Digital TCP to ensure quick wins and demonstrate value in this path To inspire the workforce by interaction with successful people in Digital TCP (in and outside the org.) To design processes around ICs such that the Digital TCP model keeps growing Communication - Basic To create general awareness about Digital TCP among the broader workforce Communication - Advanced To provide better understanding of Digital TCP to targeted workforce who are inclined towards it Societal Acceptance To create awareness and increase acceptance among employees’ peers/family about the roles & responsibilities of an IC in the company and the value it generates 1 2 3 4 5 6B6A 7 People
- 20. We have identifiedfour key enablers critical for setting up an EDL Technology 20 People Processes Ecosystem Connect C A B D • New Roles & Responsibilities • Digital Talent: Acquisition and Development • Digital Skillsets • Technical Career Path • Distributed Agile • Scaled Agile Framework • Multi Speed IT • New Age Technology and Tools • Platform Partnership • Service Provider Partnership • Start Up Connect • University Connect
- 21. The process shouldbe executed incrementally and iteratively using Agile methodology Prioritized EDT solutions should implemented in an iterative and incremental manner People Tech Implementation Complete Digital Solution 1 Digital Solution 2 Digital Solution 3 Digital Solution 4 Implementation in process Agile methodology is used in the development of the digital solutions Digital Priorities Update Product Backlog AGILE DEVELOPMENT Create Sprint Backlog Prepare People, Technology & Org Structure feature by feature Implement Digital Solution incrementally and iteratively feature by feature Sprint Review Working Solution Prioritized bucketlist of features, bugs and development work by the Product Manager A list of prioritized features to be built for the next sprint Digital Capabilities should be augmented incrementally to enable the implementation of the feature being currently built Review for early warning of broken/ incompatible features Incremental execution of prioritized digital solutions Process 21 Continuous Tracking Processes
- 22. Enterprises should adoptframeworks like Scaled Agile Framework (SAFe) for implementing Distributed Agile 22 Processes Key Drivers for Distributed Agile in EDT Solution Development • Barriers to communication and collaboration • Misunderstood Requirements • Differences in standards, processes and tools • Cultural differences and/or insensitivity • Lack of common ownership • Lack of trust, coordination and visibility across geographies Best Practices for adopting and implementing Distributed Agile Fostering cross-pollination and face-to-face real time communication Tools for platform integration, sprint & release planning, real/near time team communication, reporting and security Using collaboration tools (with real-time feedback) for scrum artifacts such as product backlog, sprint backlog, burndown reports, etc. Remote pairing for common resource ownership Proxy product owner for each geography Some Effective Agile Tools
- 23. Case Study: TheScaled Agile Framework has proved to be successful in large-scale Agile adoption (1/2) 23 Processes SAFe: Critical for EDTScaled Agile Framework (SAFe): Enterprise level Agile Implementation Agile estimating, planning and Agile Release trains Tackles architecture, integration, funding, governance and roles at scale Continuous value flow and lightweight business cases Increased speed to market while keeping budget and resources static 2 1 3 4 Companies that follow SAFe
- 24. Case Study: TheScaled Agile Framework has proved to be successful in large-scale Agile adoption (2/2) 24 Processes Program Execution Alignment Code Quality Transparency Core Qualities of SAFe, a proven, publicly-facing framework for applying Agile practices at enterprise scale: 01 02 03 Enterprise-Scale Implementation Allows large-scale incremental and iterative development of digital solutions irrespective of geographically dispersed teams Facilitates Optimization Unlike most other frameworks available, SAFe is not limited to the judgment of the user for optimization across cost efficiency, quality and speed Alignment & Quality Effective in alignment of IT objectives with Business goals while maintaining emphasis on code quality across all teams Increase in employee engagement 20-50% increase in productivity 30-75% faster time to market 50%+ defect reduction Credit Leffingwell et al. © 2014 Scaled Agile Inc.
- 25. We have identifiedfour key enablers critical for setting up an EDL Technology 25 People Processes Ecosystem Connect C A B D • New Roles & Responsibilities • Digital Talent: Acquisition and Development • Digital Skillsets • Technical Career Path • Distributed Agile • Scaled Agile Framework • Multi Speed IT • New Age Technology and Tools • Platform Partnership • Service Provider Partnership • Start Up Connect • University Connect
- 26. Enterprises need toadopt Multi Speed IT in order to cater to rapidly changing digital requirements 26 Technology Speed = Slowest Speed = Faster Speed = Fastest Service Integrate Access & Expose Consume Data Backend Service ESB/SOA Service Curated Data (Internal/ External) Standardized API Layer & Management IP Apps Consumer Apps Enterprise Products Partner Services Web Mobile Point of Sale Partner Devices & Things Note: Credit: Persistent Systems Rapid development environment to speed up development process, coupled with full-coding Integrated Development Environment for flexibility Allows continuous integration & feedback Business participates in application development while IT supports them (& ensures compliance) Browser-based dev. environment Aggressive time-to-market Adaptable to constant change Tools such as Apigee and Mulesoft integrate legacy systems with cloud & SaaS apps, Business Management software (SAP, Salesforce), etc. The API Layer effectively exposes the data to developers and partners API-led connectivity enables legacy system access, unlocks data value & reduces legacy service disruptions Legacy System Integration Agile Speed
- 27. New Age technologyand tools are imperative for laying the foundation of a Digital Enterprise 27 Technology UI Frameworks MVC Pattern Data Visualization Web Apps Native Apps App Dev. Platform StandardsMobile First Design User Experience App Framework Web Services Security & Identity Management Open APIs Mean Stack Middleware Data Storage Data At Scale Data to Insights ETL Cloud Deployment OS Data OS/ Infrastructure Project Management Enterprise Scale Programs Automated Configuration Management Cont. Integration Automated Unit Testing Alerts & Monitoring Code Repository Version Control DevOps Agile PROCESSES & TOOLS • Understanding mobile users • Time Space constraints • Touch, Location, Proximity sensors • Mobile Design Patters Fundamentals: Virtualization & Tenancy Models Software Defined Note: Digital tech map from Persistent Systems
- 28. We have identifiedfour key enablers critical for setting up an EDL Technology • New Roles & Responsibilities • Digital Talent: Acquisition and Development • Digital Skillsets • Technical Career Path 28 People Processes Ecosystem Connect C A B D • Distributed Agile • Scaled Agile Framework • Multi Speed IT • New Age Technology and Tools • Platform Partnership • Service Provider Partnership • Start Up Connect • University Connect
- 29. Enterprises need toestablish partnerships across the ecosystem in order to leverage their talent, technologies, expertise and services 29 Partnerships Service Providers University Connects Platform Partners StartUp Connect 1 2 43 Partnerships
- 30. List of shortlisted analyticsplatform companies with whom Persistent can partner for EDT Platform Partners: It is critical for enterprises to build platform partnerships in order to leverage their capabilities 30 Initial platform company inclusion criteria • Offer advanced analytics functionality as a stand-alone product that can be deployed and used separately from other BI or business applications • This product must be vertical agnostic • Generate at least $2 million in total advanced-analytics-related software license revenue annually, or have more than 1,000 active deployments Organizational capabilities Innovation potential in- house Ecosystem Connection Strategy US Market Understanding Platform capabilities Functionality of product (feature sets and capabilities) Customer Experience/ Product Reliability 1 2 3 1 2 Partnerships Note: Platform Partnership framework from Persistent Systems Zinnov recommends the following framework for selecting platform partners
- 31. IBM, SAP andSalesforce.com are some of the best platform partners across Analytics, Mobile App Development and Collaboration 3131 Partnerships 2 3 1 Mobile Application Development Platform (MAPD) Advanced Analytics Platform (AAP) Collaboration Platform SAS, a leader in AAP, provides a wide range of advanced analytics (predictive analytics, optimization, forecasting, text analytics, simulation, etc.) to yield insights for solutions for risk management, customer intelligence, retail & other domain-specific offerings SAP, a leader in MAPD, provides development & services for user- centric mobile apps for employees, partners and customers on an integrated, open, standards-based platform* Salesforce is a Collaboration Platform leader in both Platform Capabilities and Organizational Capabilities Note: *Development of apps across People Productivity, Processes, Analytics, Consumer (Loyalty, e-care, etc.), Custom Mobile Apps (transformative) & Partner Apps
- 32. 32 Service Provider Selection Framework Scaled Agile Framework Product Development Capabilities Platform Partnerships Solution Accelerators Global Footprint Digital Skill- sets Thisparameter would measure the number and effectiveness of the Solution Accelerators of the service providers This parameter would evaluate whether or not the service provider has a geo- presence in the desired geographies, or its proximity to the same This parameter would evaluate the presence and effectiveness of Scaled Agile Network This parameter would measure the presence and capabilities of the platform partnerships the service providers has This parameter would measure the Product Development capabilities of the service provider This parameter would be used to measure the presence of digital skill-sets (Big Data Analytics, Machine Learning, Natural Language Processing, Mobility & UI/UX) Service Providers: It is also critical to engage with niche Service Providers with product development capabilities Partnerships Zinnov recommends the following framework for selecting service providers
- 33. Digital and TraditionalService Providers vary vastly in their digital capabilities, processes and platform partnerships Partnerships Parameter Digital Service Providers Traditional Service ProvidersService maturity Service maturity Digital skill set Skillful at advanced technologies such as Natural Language Programming, Machine Learning, Artificial Intelligence Nascent understanding of growing technologies Solution Accelerators Strong PES capabilities around solutions accelerators (both vertical specific & agnostic ) Moderate focus on solution accelerators. Larger focus on services as compared to solutions. Global Footprint Primary presence in the Bay Area, New York and Bangalore due to concentration of skill sets in these areas Wide spread global presence due to non-dependency on emerging skill sets Scaled Agile Framework Dynamic adoption of distributed and SAFe amongst product and IT teams Gradual transformation towards agile, primarily standard waterfall model in existence at large Platform Partnerships Leverage Product/ Platform players in 360 degree partnerships – To “Sell with“ & “Sell through” Traditional revenue sharing “ Sell with “ strategy observed with technology players Product development capabilities Significant non-linear revenue Continuous integration, rapid prototyping and incremental development Mature business models (Outcome based etc.) Inconsequential non-linear revenue Leverages waterfall or spiral methodologies Traditional business models (T&M, Fixed Price etc.) 33
- 34. 34 Persistent, Symphony Teleca,Epam and ThoughtWorks exhibit high product capabilities Partnerships Niche vendors such as Persistent Systems, Symphony Teleca & EPAM, specializing in Product Development capabilities are the most suitable for forging partnerships for EDT Note: Symphony Teleca’s capabilities have been evaluated taking into account Symphony Teleca’s acquisition of ADITI Leads the pack in People Capabilities, IP/Solutions & maturity of services Leads the pack in Business Model and also has mature services Leads the pack in Alliances forged and Clients Though not evaluated by GSPR, it exhibits product capabilities & works with clients across several verticals Zinnov’s Global Service Provider Rating 2014 evaluates the service providers according to their ISV-Enterprise Software capabilities
- 35. Startup Connect: Aholistic approach needs to be adopted by enterprises to engage with startups 35 Partnerships 2 3 5 Drive the internal change Create an Internal Marketplace Connect with startups across the entire value chain Partner with existing startup facilitators 41 • Facilitate interaction between startups and internal teams • Promote and incentivise Intrapreneurship • Ideate, Build and Execute on new ideas Acquire Targets • Create a network of accelerators focussed on emerging technologies • Align your CoEs with accelerators to provide startups with the soft and hard infra • Create a marketplace for startups to connect with and be mentored by business units • Validate the startup ideas/products by deploying them in the organizational digital workflow • Partner with industry initiatives such as NASSCOM- 10k, Productnation etc • Partner with MNCs existing accelerator programs • Connect with university incubation programs • Make strategic acquisition of growth stage/Mature companies • Buy IPs to grow non linear revenues • Partner with startups for a joint GTM strategy by providing SI services on top of products Set up an accelerator (Grants4Apps) for Operational Excellence and Customer Targeting & Engagement EDT horizontals GE, Mayo Clinic, Abbot, UnitedHealth Group, etc. have partnered with Digital Health Accelerator Rock Health Acquired Cellfire to boost omni- channel Intrapreneurship to create value within the organization Has created an internal marketplace for startups
- 36. Startup Connect: Targethas recently launched its Accelerator Program in Bangalore in order to compete with retail giants such as Amazon and Walmart 36 Partnerships TARGET ACCELERATOR PROGRAM Preliminary Stage Shortlist Stage Pool of 159 Indian Tech Startups Helps online retailers & other merchants use 3D modeling & offers a 360-degree view of products Helps some of India’s online retailers leverage social conversations Personalized search results and highly accurate recommendations Arrests website bounce rates & increases customer engagement Facilitate social recommendations Two-way communication with mobile users by offering a two-way messaging inbox in the app Nurture Stage Specially designed space for 4-month immersive program Help them generate ideas by providing them access to mentors, tools, resources & operational support Provide up to USD 30,000 in funding Also to help Target identify potential M&A targets at early, cheap valuations 1 2 34 5 Name: Target Accelerator Program Aim: To compete & catch up with Amazon & WalmartLabs faster Location: Bangalore Focus Areas: Search, Content, Data, Social, Mobility, 3D Imaging, Omnichannel, Digital Marketing and Supply Chain Year of Establishment: 2014 Startups for the next batch include Twiddly, Whodat’s Spaces, Wazzat, Torch & Visarity “ At Target, innovation is core to our culture and strategy and we are always looking for new ideas to enhance the shopping experience of our guests. We are in discussions with a variety of partners and start-ups for a Target India Accelerator program..” - Beth Jacob Ex- CIO
- 37. University Connect: Itis also critical to establish connects with universities with rich digital profiles 37 Partnerships PEOPLE INFRASTRUCTURE & PROGRAM ENGAGEMENT OTHERS 40% 30% 20% 10% Professor Rating: 20% Parameters to be considered include: WIP (to be added Student Profile Rating: 20% Parameters to be considered include: • Related Research Propensity • Available Skillsets Infrastructure Rating: 15% Parameters to be considered include: • Relevant Digital Labs & Tools • Relevant Digital CoEs/ Cells Program Rating: 5% Parameters to be considered include: • Related course program Finance Considerations Rating: 15% Amenability to desired Engagement Model: 5% Mindshare Rating: 5% Parameters to be considered include: • Related digital publications & Papers Partnership Rating: 5% Parameters to be considered include: • Existing related partnerships with other companies List of shortlisted universities for partnership Zinnov recommends the following framework for targeting & selecting universities
- 38. Partnered with UA’sCulverhouse Data Analytics lab for data analytics, providing collaboration and research across government, industry and academia to help companies anticipate and solve critical problems University Connect: Enterprises are increasingly partnering with universities for researches in the digital arena 38 Partnerships Key Drivers Narrow skills gap by building talent for new digital skillsets Create branding in universities fresh talent pool Leverage cutting edge technology & research professors Industry Examples Academic Initiative collaborations with more than 1,000 academic partners to design and teach curriculum to undergraduates and graduates on big data and analytics skills Develop curriculum in data science and analytics, focused on real-world problem areas, in addition to the research on solving industry issue Based on identified needs of customers drawn from Infosys’s engagement with enterprises across industries Samsung has partnered with University of California, San Francisco (UCSF) to set up a digital health innovation lab
- 39. University Connect: OperationalExcellence and Customer Targeting & Engagement are the primary focus areas of university researches across the globe 39 Partnerships Key Universities with research focus on enterprise digital transformation EDT Horizontals Sample Universities Sample Research Areas Operational Excellence • Analytics for genetics & proteomics & preventive healthcare using medical wearable devices • Predictive analytics for pharma & finance verticals Customer Targeting & Engagement • Wearable Device to predict & notify (to family) the risk of falling in elderly patients & send automatic alerts to family • Wearable vapor sensor being developed for continuous disease monitoring for diabetic patients Note: Workforce & Partner Enablement and Digital Products and services are very low focus areas for universities Risk Management • Skills to collect, analyze, and interpret data in the Risk modeling • Large Scale Analysis of Forensic Data for Event-Based Representation and Discovery Supply Chain Optimization • Focus on Supply Chain Management Analytics Illustrative Research Propensity
- 40. Agenda Enterprise Digital Lab:An Overview Enablers for creating an Enterprise Digital Lab 1 2 40 Conclusion3
- 41. Setting up anEDL might look challenging, and you might face with several questions… 41 CORPORATE BUY-IN CHANGEINFRASTRUCTURE TALENT “ The HR is not aligned to the Business “ “ HR tools and processes are not in place for Digital talent “ “ How should I get corporate buy-in ? “ “ How do I get budget allocated for digital initiatives? “ “ How do I modernize my IT and where do I begin? “ “ Should I build or buy the required tools for building an EDL? “ How do I manage Change Management ? “ How do I realign my organization in order to a smooth transition? “
- 42. …however, success storiesacross verticals reinforce the fact that times are changing, and it is imperative to transform rather than perish! 42 • Having faced a substantial decline in sales and customer base, McDonald’s set up a Digital lab in the Bay Area, comprising digital experts from companies such as PayPal, Yahoo, Tesco and Ticketmaster • Focus areas include enhancing customers' restaurant experience, relevant ways to share the enterprise’s story and improve customer engagement, mobile ordering & payment app There are numerous industry examples of enterprises that have jumped at the opportunity to transform digitally, only to reap benefits • Starbucks Digital Ventures created to improve customer experience & engagement via mobile payments, web, card, loyalty, e- commerce, Wi-Fi strategy, & the Starbucks Digital Network • Nike is at the forefront of digital transformation through its digital tools for making product designs and manufacturing simpler, digital products to track workouts and share them with friends online and receive customized advice from coaches, and the Nike+ platform • Southwest Airlines has bolstered its customer experience as well as back-end operations by leveraging digital technologies such as a new suite of customer contact and workforce optimization to improve customer satisfaction using predictive analytics, social media analytics for customer targeting, and collaboration with NASA to improve airline safety using Machine Learning skills
- 43. Thank You @zinnov Bangalore Office: 69"Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout, Koramangala 5th Block, Bangalore-560 095. Phone: +91-80-41127925/6 Texas Office: 21, Waterway Ave Suite 300 The Woodlands TX-77380 USA Phone:+1-281-362-2773 California Office: 3080 Olcott Street Suite A125 Santa Clara, CA 95054 Phone: +1-408-716-8432 Gurgaon Office: First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100 Beijing Office: Meilifang Tower 4, Entrance 4, 10/F #1003, 11 Beiyuan Shuangying Road, Chaoyang District, Beijing China 100012 43
Editor's Notes
- #4 http://www.computerworld.com/s/article/9231445/Big_data_big_jobs_?taxonomyId=221&pageNumber=3 http://blogs.forrester.com/gene_leganza/13-02-13-chief_data_officers_are_a_good_idea_but_how_is_that_going_to_work http://www.cio.com/article/2370235/cio-role/emergence-of-the-chief-data-officer.html http://www.enterprisecioforum.com/en/blogs/jdodge/emergence-chief-data-officer http://www.forbes.com/sites/howardbaldwin/2013/10/29/a-wake-up-call-for-cios/ http://chiefmartec.com/2013/03/a-cmo-a-cio-and-a-chief-digital-officer/ http://blogs.gartner.com/mark_raskino/2013/11/06/5-facts-about-chief-data-officers/ http://mitiq.mit.edu/Documents/Publications/Papers/2012/Lee_et_all_2012_MISQ-E_Abstract.pdf http://www.cutter.com/content-and-analysis/resource-centers/business-intelligence/sample-our-research/biar1302.html http://www.capgemini.com/resource-file-access/resource/pdf/the_role_of_the_cdo_in_financial_services.pdf http://www.bigdata-startups.com/big-data-job-descriptions/
- #6 http://www.computerworld.com/s/article/9231445/Big_data_big_jobs_?taxonomyId=221&pageNumber=3 http://blogs.forrester.com/gene_leganza/13-02-13-chief_data_officers_are_a_good_idea_but_how_is_that_going_to_work http://www.cio.com/article/2370235/cio-role/emergence-of-the-chief-data-officer.html http://www.enterprisecioforum.com/en/blogs/jdodge/emergence-chief-data-officer http://www.forbes.com/sites/howardbaldwin/2013/10/29/a-wake-up-call-for-cios/ http://chiefmartec.com/2013/03/a-cmo-a-cio-and-a-chief-digital-officer/ http://blogs.gartner.com/mark_raskino/2013/11/06/5-facts-about-chief-data-officers/ http://mitiq.mit.edu/Documents/Publications/Papers/2012/Lee_et_all_2012_MISQ-E_Abstract.pdf http://www.cutter.com/content-and-analysis/resource-centers/business-intelligence/sample-our-research/biar1302.html http://www.capgemini.com/resource-file-access/resource/pdf/the_role_of_the_cdo_in_financial_services.pdf http://www.bigdata-startups.com/big-data-job-descriptions/
- #8 Note: Digital Horizontals such as Workforce & Partner Enablement, Operational Excellence and Risk Management have a one-to-many relation with different functions and BUs. For instance, depending on the requirement, the Risk Management division of the EDL can report to Supply Chain function or a BU.
- #15 http://cdoclub.com/wp-content/uploads/2014/05/CDOGrowth.jpg http://cdoclub.com/number-of-chief-digital-officers-doubled-in-2013-seven-cdos-became-ceo-and-four-cdos-became-board-directors-according-to-the-cdo-talent-map-2014-video/
- #16 Retail Theatre: To broadcast their multifaceted content directly to stores at exclusive in-store digital events to experience clothes, music, energy and atmosphere in real time and order from any store across the global
- #36 Bayer set up an accelerator (Grants4Apps) to focus on its Operational Excellence and Customer Targeting & Engagement EDT horizontals (post-operative care & predictive care using real-time tracking, wearable devices, m-apps, digital products, etc.)