Digital Disruption – Industry 4.0
Transforming Genentech for Digital Economy
www.websitename.com 1
Technology evolution through innovation
Neeraj Agarwal 2
Social Media
Analytics
Cloud
Internet of Things Mobile
Cognitive
Evolution of
technologies is
coming at us.
That can give an edge for short term
Neeraj Agarwal 3
Cloud Individual technology
can be a point
solution giving a
jump start. But can
not be a strategy.
And individual technology is not a competitive
advantage
Neeraj Agarwal 4
Cloud
It’s about confluence
of these technologies
that eliminate the
technology
limitations.
Corporates need Digital Strategy
Neeraj Agarwal 5
Rightfully integrating
technologies what
makes most sense to
the business.
Social
Why digital transformation nowLow initial investment enabling service model
Neeraj Agarwal 6
Drones:
2007: $100
2013: $700
3D Printing:
(cost averages for
equivalent functionality)
2007: $40k
2014: $100
Industrial
Robots:
2007: $550k
2014: $20k
DNA
Sequencing:
2000: $2.7bn
2007: $10mm
2014: $1k
Solar Power:
(cost per kWh )
1984: $30
2014: $0.16
Sensors :
(3D lidar)
2009: $30k
2014: $80
Smartphone
(model with similar
specifications)
2007: $499
2015: $10
$1.5T $30B
/Year
$1.7T $700
M
$5T
01
Logistics
02
Healthcare
03
Electricity
04
Automotive
05
Consumer
7
02
03
04
05
01
7Neeraj Agarwal
Increases 2M jobs
Reduces 10M tons carbon emission
Total Value impact $1.5T
Source: World economic forum
US healthcare savings $30B/year
Reduces hospital admission by 35%
Increases 3.5M jobs
Reduces 16B metric ton carbon emission
Total Value impact $1.7T
1.2M lives saved
Reduces 540M metric ton carbon emission
Total Value impact $700M
Total Value impact $5T
Digital Transformation enables efficiencies for
several industries
What is digital disruption
Neeraj Agarwal 8
Changes in
competitive
environment
resulting from the
use of digital
technologies.
S
W O
T
What do you do about this disruption – Need
Digital Strategy
Neeraj Agarwal 9
Integrated business strategy
inspired by the capabilities
of powerful, readily
available technologies and
responsive to constantly
changing market
environment
what makes us unique
Two types of digital strategies
Neeraj Agarwal 10
Customer
Engagement
Digitized Solutions
Operational Backbone
1. Ideally organizations should pick one of
the two strategies.
2. Operational excellence is the backbone,
required, and not considered as a
strategy in the new era of digitization.
Market Driven Product Driven
Digital Solution Backbone - Enabler
Customer engagement – Patient centricity
Neeraj Agarwal 11
Customer
Engagement
Digitized Solutions
Operational Backbone
Serving to the customer life events rather than selling products and
services. In the process identify the technologies that make customer life
easier. And that defines business strategy and technology roadmap.
Market Driven
Digitized Solutions – Business Models
Neeraj Agarwal 12
Customer
Engagement
Digitized Solutions
Operational Backbone
Digitized Solutions is to solve specific problems. For
example, Drug Security.
Product Driven
Operational Backbone
Neeraj Agarwal 13
Customer
Engagement
Digitized Solutions
Operational Backbone
A great operational backbone is not optional, rather a
must to enable Digital Strategy.
Digital Solution Backbone - Enabler
0201
0306
05 04
Finding the right leadership
01
Enhancing customer experience
02
Engagement of employees
03
Handling competition.
04
Changing company culture
05
Ensuring availability of resources
06
14
Why is digital transformation challenging
Neeraj Agarwal
Digital transformation requires change in employees mind set, and organization design to support the transformational
journey.
Bringing it all together – Digital CoC
Technology & Data Strategy
 Enterprise-wide agile & dev ops transformation
 Digital Reinvention™ through emerging tech
 IT operating model and governance
 Emerging tech strategy
Digital Business Strategy
 Digital growth strategy
 Business model innovation
 Data monetization
Talent Reinvention
 Digital organization design
 Digital talent strategy
 Cognitive HR
Connected Ops Strategy
 Next generation supply chain strategy
 Digital operations
 Process digitization
1
2 3
4
Customer
Engagement Digitized Solutions
Operational Backbone
Neeraj Agarwal 15
Digital CoC provides leadership in Digital Reinvention. Strategy development, operations excellence and evolving
revolutionary technology roadmap are the primary responsibilities.
Digital ReinventionTM
– Operating Model
Organizational design can be around basic principles of operating model
FinishStart
Envision Creation Foundation
DELIVERABLES
 Experience & Industry Insights
 Digital Reinvention™ Driver Assessment
 Envisioned and prioritized Reinvention ideas
 Digital Reinvention™ Strategy
 Target Operating Model
 Pilot Outlines
 Pilot Blueprints
 Minimum Viable Product / Pilot Assessment
 Market Strategy
 Operating Model
 Capability Strategy & Execution
 Foundation project outcomes
 On-going Digital Reinvention™ Program
Neeraj Agarwal 16
PREPARE UNDERSTAND ENVISION DESIGN
PROTOTYPE,
PILOT & LEARN
REFINE & CODIFY SCALE LAUNCH
ACTIVITIES
Year ‘1
Launch : Digital Transformation
CoC
Initiate : Strategic Roadmap and
Perform Assessment
Year ‘2
Start. Backbone readiness. ERP,
CRM, MES, LIMS systems
upgrades & consolidation
Year ‘3
Start. Preparation for
data platforms
Year ‘4
Start : Aaccelerate strategic
Digital Transformation journey
Year ‘5
Start : Planning for sustaining
model for continuous
improvement
Strategic digital transformation journey
Digital transformation journey is multi-year commitment. A carefully planned roadmap provides flexibility and parallel run for the multiple programs that converges to
achieve a common goal at the end
Neeraj Agarwal 17
Digital Strategy:
• Roadmap
• Planning
• Establish CoC
2018
Nexus:
• Revenue Recognition
• Logistics & transportation
• Order routing
2019
Nexus :
• Order scheduling
• Backlog management
• Data platform
2020
Nexus :
• Order management
• Manufacturing ops
• Site transition
2021
Nexus :
• Site transition continue
• Contract manufacturing
2022
MES
- Site upgrade
MES
- Site upgrade
Robotic Process Automation
IoT sensors integration
An illustrative transformational roadmap
Blockchain Product Safety
Neeraj Agarwal 18
Consider Exit Strategy Before Initiation
Transforming Genentech for Digital Economy
www.websitename.com 19

Establish Digital Strategy CoC

  • 1.
    Digital Disruption –Industry 4.0 Transforming Genentech for Digital Economy www.websitename.com 1
  • 2.
    Technology evolution throughinnovation Neeraj Agarwal 2 Social Media Analytics Cloud Internet of Things Mobile Cognitive Evolution of technologies is coming at us.
  • 3.
    That can givean edge for short term Neeraj Agarwal 3 Cloud Individual technology can be a point solution giving a jump start. But can not be a strategy.
  • 4.
    And individual technologyis not a competitive advantage Neeraj Agarwal 4 Cloud It’s about confluence of these technologies that eliminate the technology limitations.
  • 5.
    Corporates need DigitalStrategy Neeraj Agarwal 5 Rightfully integrating technologies what makes most sense to the business. Social
  • 6.
    Why digital transformationnowLow initial investment enabling service model Neeraj Agarwal 6 Drones: 2007: $100 2013: $700 3D Printing: (cost averages for equivalent functionality) 2007: $40k 2014: $100 Industrial Robots: 2007: $550k 2014: $20k DNA Sequencing: 2000: $2.7bn 2007: $10mm 2014: $1k Solar Power: (cost per kWh ) 1984: $30 2014: $0.16 Sensors : (3D lidar) 2009: $30k 2014: $80 Smartphone (model with similar specifications) 2007: $499 2015: $10
  • 7.
    $1.5T $30B /Year $1.7T $700 M $5T 01 Logistics 02 Healthcare 03 Electricity 04 Automotive 05 Consumer 7 02 03 04 05 01 7NeerajAgarwal Increases 2M jobs Reduces 10M tons carbon emission Total Value impact $1.5T Source: World economic forum US healthcare savings $30B/year Reduces hospital admission by 35% Increases 3.5M jobs Reduces 16B metric ton carbon emission Total Value impact $1.7T 1.2M lives saved Reduces 540M metric ton carbon emission Total Value impact $700M Total Value impact $5T Digital Transformation enables efficiencies for several industries
  • 8.
    What is digitaldisruption Neeraj Agarwal 8 Changes in competitive environment resulting from the use of digital technologies. S W O T
  • 9.
    What do youdo about this disruption – Need Digital Strategy Neeraj Agarwal 9 Integrated business strategy inspired by the capabilities of powerful, readily available technologies and responsive to constantly changing market environment what makes us unique
  • 10.
    Two types ofdigital strategies Neeraj Agarwal 10 Customer Engagement Digitized Solutions Operational Backbone 1. Ideally organizations should pick one of the two strategies. 2. Operational excellence is the backbone, required, and not considered as a strategy in the new era of digitization. Market Driven Product Driven Digital Solution Backbone - Enabler
  • 11.
    Customer engagement –Patient centricity Neeraj Agarwal 11 Customer Engagement Digitized Solutions Operational Backbone Serving to the customer life events rather than selling products and services. In the process identify the technologies that make customer life easier. And that defines business strategy and technology roadmap. Market Driven
  • 12.
    Digitized Solutions –Business Models Neeraj Agarwal 12 Customer Engagement Digitized Solutions Operational Backbone Digitized Solutions is to solve specific problems. For example, Drug Security. Product Driven
  • 13.
    Operational Backbone Neeraj Agarwal13 Customer Engagement Digitized Solutions Operational Backbone A great operational backbone is not optional, rather a must to enable Digital Strategy. Digital Solution Backbone - Enabler
  • 14.
    0201 0306 05 04 Finding theright leadership 01 Enhancing customer experience 02 Engagement of employees 03 Handling competition. 04 Changing company culture 05 Ensuring availability of resources 06 14 Why is digital transformation challenging Neeraj Agarwal Digital transformation requires change in employees mind set, and organization design to support the transformational journey.
  • 15.
    Bringing it alltogether – Digital CoC Technology & Data Strategy  Enterprise-wide agile & dev ops transformation  Digital Reinvention™ through emerging tech  IT operating model and governance  Emerging tech strategy Digital Business Strategy  Digital growth strategy  Business model innovation  Data monetization Talent Reinvention  Digital organization design  Digital talent strategy  Cognitive HR Connected Ops Strategy  Next generation supply chain strategy  Digital operations  Process digitization 1 2 3 4 Customer Engagement Digitized Solutions Operational Backbone Neeraj Agarwal 15 Digital CoC provides leadership in Digital Reinvention. Strategy development, operations excellence and evolving revolutionary technology roadmap are the primary responsibilities.
  • 16.
    Digital ReinventionTM – OperatingModel Organizational design can be around basic principles of operating model FinishStart Envision Creation Foundation DELIVERABLES  Experience & Industry Insights  Digital Reinvention™ Driver Assessment  Envisioned and prioritized Reinvention ideas  Digital Reinvention™ Strategy  Target Operating Model  Pilot Outlines  Pilot Blueprints  Minimum Viable Product / Pilot Assessment  Market Strategy  Operating Model  Capability Strategy & Execution  Foundation project outcomes  On-going Digital Reinvention™ Program Neeraj Agarwal 16 PREPARE UNDERSTAND ENVISION DESIGN PROTOTYPE, PILOT & LEARN REFINE & CODIFY SCALE LAUNCH ACTIVITIES
  • 17.
    Year ‘1 Launch :Digital Transformation CoC Initiate : Strategic Roadmap and Perform Assessment Year ‘2 Start. Backbone readiness. ERP, CRM, MES, LIMS systems upgrades & consolidation Year ‘3 Start. Preparation for data platforms Year ‘4 Start : Aaccelerate strategic Digital Transformation journey Year ‘5 Start : Planning for sustaining model for continuous improvement Strategic digital transformation journey Digital transformation journey is multi-year commitment. A carefully planned roadmap provides flexibility and parallel run for the multiple programs that converges to achieve a common goal at the end Neeraj Agarwal 17
  • 18.
    Digital Strategy: • Roadmap •Planning • Establish CoC 2018 Nexus: • Revenue Recognition • Logistics & transportation • Order routing 2019 Nexus : • Order scheduling • Backlog management • Data platform 2020 Nexus : • Order management • Manufacturing ops • Site transition 2021 Nexus : • Site transition continue • Contract manufacturing 2022 MES - Site upgrade MES - Site upgrade Robotic Process Automation IoT sensors integration An illustrative transformational roadmap Blockchain Product Safety Neeraj Agarwal 18
  • 19.
    Consider Exit StrategyBefore Initiation Transforming Genentech for Digital Economy www.websitename.com 19