Today, many established companies struggle with their digital transformation efforts. Being challenged by startups as well as big techs like Amazon and Google, they understand that in order to stay competitive, they need to turn into a truly digital enterprise. Obviously, this includes process automation ambitions, which is why Camunda is often at the heart of these transformation programs.
For years I have seen many successful projects drive digital transformation, as well as many failures, and I have come to understand which fundamental mechanics any organization needs to observe when they embark on this journey.
5. If you ask senior executives in the insurance
industry - who are currently driving digital
transformation projects - about their main
objective, the usual answer is: “Getting an
insurance needs to be as simple as buying a
product on Amazon.com”
https://www.sueddeutsche.de/wirtschaft/digitalisierung-versichertvon-amazon-1.3747260
10. How to become a Digital Enterprise
1) ?
2) ?
3) ?
4) ?
6
11. Forrester has announced “The Age of the Customer”
Source: https://www.slideshare.net/SoftwareAG/iw14-session-mike-gualtieri-forrester-research
12. Examples
● Offer more convenient ways to consume
your products (e.g., omnichannel, self-
service portals)
● Reduce process cycle times (e.g., activate
bank account services right away)
● Provide real-time transparency (e.g.,
progress tracker for claim settlement)
● Increase flexibility to offer new products
(e.g., new data plans for telco customers)
Customer-focused innovation
Counter-Examples
● Run a creative new brand building
campaign
● Start a joint venture that purchases for
telco companies in order to increase
negotiation leverage
● Start a used cars trading business to
cross-sell to your car insurance customers
● Replace employees with software robots
in order to reduce costs
13. How to become a Digital Enterprise
1) Prioritize Customer-focused Innovation.
2) ?
3) ?
4) ?
8
14. The History and Future of “Business vs. IT”
1970s 1980s 1990s 2000s 2010s 2020s
15. The History and Future of “Business vs. IT”
● In 70s, first broad-scale business interactions with Programmers
● Many misunderstandings and growing uneasiness on both sides due to disappointments
● Development of Waterfall Software Development Techniques
1970s 1980s 1990s 2000s 2010s 2020s
16. The History and Future of “Business vs. IT”
● Not “We are one team” but “I am the customer, and you are my supplier”
● General culture of politics and power plays between business and IT
● Growing trend of buying core business software off-the-shelf, e.g. SAP R/3 (SAP revenue
grew 1990-2000 from €300 million to €7 billion)
● Growing trend of outsourcing internal IT departments to subsidiaries or external suppliers
● First evolvements of “lightweight” software development methods, e.g. Scrum in 1995
1970s 1980s 1990s 2000s 2010s 2020s
17. The History and Future of “Business vs. IT”
● In 2001, Publication of “The Manifesto for Agile Software Development”.
● In 2001, Borders agrees to hand over its online business to Amazon under the theory that
online book sales are non-strategic and unimportant.
● In 2004, Jakob is taught at university the waterfall software development approach.
● Low-code BPMS products come up (“Creating programs without programming!”)
1970s 1980s 1990s 2000s 2010s 2020s
24. The History and Future of “Business vs. IT”
● In 2011, Marc Andreessen publishes his article “Why Software Is Eating the World”.
● In 2014, a German insurance company is “very proud of our waterfall software
development approach”.
● In 2017, Goldman Sachs CEO proclaiming “GS is a Technology Company”.
● In 2018, Commerzbank announce they will re-insource their IT systems subsidiary.
● In 2018, Lidl dumps €500 million SAP project.
● In 2019, same German insurance company going all-in on Agile.
1970s 1980s 1990s 2000s 2010s 2020s
25. A Vicious
Cycle
Invest in Workarounds for
Core Business Automation
Off-the-Shelf Software
IT Outsourcing
Low-Code / RPA
Inferior Automation
Infrastructure
Delayed / Failed IT Projects
Legacy Systems
Bad Customer Experience
Weak Software
Development Capabilities
Lack of Software Developers
No Business-IT Collaboration
Growing Technical Debt
26. The History and Future of “Business vs. IT”
● Established Companies eventually realize that they need to put Technology at the Heart of
their Organization.
● Significant invest in in-house software development capacities and modernization.
● Breaking down the barriers between Business and IT - forming “one team”.
● SaaS purchased for areas that are not unique to the core business model.
● Automation Solutions being created in-house for running core business models.
1970s 1980s 1990s 2000s 2010s 2020s
27. Case Study: LV 1871
German life insurance company
Need: Bring new digital products to the market, faster
Breaking up monolithic legacy systems in microservices
that are orchestrated by Camunda
Setting up joint teams of business and IT professionals
Moving to the hybrid cloud, adopting DevOps and agile
development
Buying software off-the-shelf would not have made sense
because the available products are “too old already”
Peter Blenninger, Head of IT at LV 1871 Insurance
https://www.cio.de/a/wir-haben-nur-noch-agile-teams,3604218
28. How to become a Digital Enterprise
1) Prioritize Customer-focused Innovation.
2) Bring Technology to the Heart of your Company.
3) ?
4) ?
17
29. Ensuring Structure in a Human Task User focused Process
Source: https://www.slideshare.net/camunda/camundacon-2018-profile-print-and-explorative-data-mining-duni-viadee
32. Camunda Technical Use Case Categories
Human Workflow E2E Process Automation High Throughput
Example Use Cases B2B, KYC, Approval B2C, Trading, BSS/OSS Events, Unbatch, µS
Human Involvement Default Exception None
Transactions per Year Thousands Millions Billions
Value per Transaction High Medium Low
General Benefit Visibility Visibility Visibility
Specific Benefit Structure Scalability Resilience
33. Camunda Technical Use Case Categories
Digital Automation Platform
Human Workflow E2E Process Automation High Throughput
Example Use Cases B2B, KYC, Approval B2C, Trading, BSS/OSS Events, Unbatch, µS
Human Involvement Default Exception None
Transactions per Year Thousands Millions Billions
Value per Transaction High Medium Low
General Benefit Visibility Visibility Visibility
Specific Benefit Structure Scalability Resilience
20
35. Getting there, one Project at a Time
35
Digital Transformation
Invest (t, $)
Pilot Project
(Example: IT Purchase Approval, Human Workflow)
Lighthouse Project
(Example: Order Execution, STP)
Broadscale Transformation
(Example: Digital Automation Platform)
36. Camunda: The next Challenges we’re tackling
● Enable Developers to “hack a process” as fast as possible
● Involve any Stakeholder in Process Automation Design
● Provide Process Visibility “broad and deep” in Real-time
● Allow Business Process Automation at High Throughput Scale
● Minimize the Barrier to operate
37. How to become a Digital Enterprise
1) Prioritize Customer-focused Innovation.
2) Bring Technology to the Heart of your Company.
3) Automate your Business, one Project at a Time.
4) ?
22
39. “To our Shareholders”
Amazon - 22 Year Stock Price History | AMZN
Source: https://www.macrotrends.net/stocks/charts/AMZN/amazon/stock-price-history
“We will continue to make investment
decisions in light of long-term market
leadership considerations rather than
short-term profitability considerations
or short-term Wall Street reactions.”
47. How to become a Digital Enterprise
1) Prioritize Customer-focused Innovation.
2) Bring Technology to the Heart of your Company.
3) Automate your Business, one Project at a Time.
4) Put Executives in Charge who care about long-term Success, their People and the World.
48. We help you to become a Digital Enterprise.
Our Mission
49. We help the Startup that disrupts your Business.
Our other Mission
50. We help you to become a Digital Enterprise.
Our Mission