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Kick-starting the digital transformation of a more traditional business
This document discusses strategies for digital transformation of traditional businesses. It identifies five personas that companies may exhibit in their approach: The Ostrich, The Reinventing the Wheel, The Monday Dieters, The Leaders, and The Visionaries. Key challenges are also examined, such as changing company culture and lack of data. The document advocates defining a clear strategy and priorities as the first step. It explores how technologies like IoT, cloud, and analytics can create value across the supply chain, manufacturing, and customer experience. Overall, the document provides an overview of considerations and best practices for digitally transforming a traditional company.
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Kick-starting the digital transformation of a more traditional business
- 1. 1 Kick-starting the digitaltransformation of a more traditional business @luisella luisella.giani@gmail.comlinkedin.com/in/luisellagiani Luisella Giani Cologne 28° June 2017
- 2. Agenda Putting the focuson strategy and vision first Digital Transformation Personas Digital Transformation evaluation framework Where does the supply chain fit into the transformation cycle Technology drivers for future business success 1 2 3 4 5
- 3. IF WHERE WHAT WHO WHEN WHY HOW YES TRANSFORM NOT DISRUPT MATURITY C-LEVEL,DIGITAL DEPT. YESTERDAY DARWINISM STRATEGY FIRST
- 4. To define theHOW, first question is: WHERE ARE we ?
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- 6. THE REINVENTING THEWHEEL
- 7. THE MONDAY DIETIERS MONDAYWEDNESDAY
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- 10. THE OSTRICH APPROACH THEREINVEINTING THE WHEEL THE MONDAY DIETERS THE LEADERS THE VISIONARIES Don’t realise the threats. Think transformation won’t touch them. RISK OF EXTINCTION FRAGMENTATION LACK IN EXECUTION MAINTAIN SUPREMACY DRIVE INNOVATION Transformation projects in several BU, silos structure, no vision, lack of execution, overlap, projects not impacting core business. Vision and strategy defined. Often no digital dedicated team in place, lack of digital skills, lack of execution, lack of consistency. Slow in delivering. Only 14% succeed. Vision and strategy defined. Digital team in place, digital skills programs in place. New processes for decision making and execution defined. Driving innovation for the future. Ahead of the game. Risk takers: experimenting new business models, new technologies, new markets. DIGITAL TRANSFORMATION PERSONAS DEFINE CONSISTENT STRATEGY DEFINE PROCESSESS AND PRIORITIES MONITOR NEW TECHNOLOGIES, STARTUP ECOSYSTEM CONTINUOS LEARNING, ANTICIPATE CHANGES IN COMPETION AND MARKET LANDSCAPE WAKE UP. LEAP FROG
- 11. Feels LACK OF DATA. Notknowing the customer. 51% Cross department COLLABORA TION is difficult. 56% Digital transformation is CONFUSED with hits and run campaign. 59% Change COMPANY CULTURE is extremely difficult. 63% Source Altimeter 2016 DIGITAL TRANSFORMATION BIGGEST CHALLENGES
- 12. WHY and HOW. Strategy,priorities, processess.
- 13. PRODUCTION DISTRIBUTION CUSTOMER EXPERIENCE Cost OrganizationRevenues KPIs Growth rateof spend (big data, monitoring, IoT..) Growth unit/hour. Predictive mantainance. Increase machine uptime, improve machine safety. % digitised competitors KPIs % of fleet tracking via IoT, digitised inventory, connected shipping for efficient consolidation (Y/N) geolocalization (Y/N) %digitised competitors. Reduction out of stock critical SKUs Faster order to delivery % digitised competitors KPIs Growth rate digital sales, digital Vs. non digital, lead gen and conversion, avg order value, customer satisfaction. Growth rate opt ins registrations, followers, website visitors, length per visit. Growth rate findability . %digital predictive maintance and diagnostics. % digitised competitors KPIs % asset connected %time saving via digitized cycles % digital mantainance and diagnostics Regulatory compliance, reduce energy usage. %digitized competitors KPIs % of fleet tracking via IoT, digitised inventory, connected shipping for efficient consolidation (Y/N) geolocalization (Y/N) %digitised competitors. Manage inventory real time KPIs Avg cost per order digital vs non digital. Avg cost per lead: digital vs non digital complains handling % digitised competitors KPIs Dedicated team for MVP: Y/N Digital spend for vendors management %digital quality and compliance Digital tools for employess Y/N % digitised competitors hire vs reskill KPIs % remote access via digital technologies, digital always on (Y/) cross-functional teams (Business and tech) (Y/N) % digitized competitors. Hire vs reskill KPIs Growth rate digital quotation. Growth rate digital booking. Growth rate digital customer support. Cross-functional teams (Y/N), digital tools for employees, (Y/N) . % digitised competitors. Hire vs reskill DIGITAL TRANSFORMATION FRAMEWORK
- 14. CHALLENGES in TIREINDUSTRY E-TAIL, ECOMMERCE AGGREGATORS COMPETITION: CHINA COSTUMER &CONSUMERS EXPECTATIONS SHRINKING MARGINS COMMODITIZATION DISTRIBUTION PRODUCTION CUSTOMER EXPERIENCE SUPPLY CHAIN PARADOX
- 15. PRODUCTION DISTRIBUTION CUSTOMER EXPERIENCE Simulation System Integration Internet of Things Cyber Security Cloud computing Augmented Reality Big Data Autonomous Robotics Additive Manufacturing INDUSTRY4.0 TECHNOLOGIES Artificial Intelligence INTEROPERABILITY INFORMATION TRANSPARENCY TECHNICAL ASSISTANCE DECETRALIZED DECISIONS
- 16. IoT, big data,cognitive computing, artificial intelligence empower to change the output. Welcome to the outcome economy. Companies create value not just by selling products and services, but by delivering solutions that directly produce quantifiable results.
- 17. Descriptive What happened? Inquisitive How and Why it happened? Predictive Whenwill it happen? Prescriptive How do we prevent it from happening? Define Region of Uncertainty Creative Finding Correlations Proving Causation / Predicting Create and Connect Actions / Prevent Remove Root Cause Muddy Fuzzy Clear Problem Life Cycle Disruption ROI Progression How do we improve? Describe the Problem HOW IOT AND CLOUD CREATE VALUE
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- 19. Platform Devices ClientLibrariesandGatewaySoftware IoTApps IoT Cloud Service ConnectAnalyze Integrate Track & Detect Visualize & Predict Integrate & Act Business Applications Manufacturing, Supply Chain, Asset Mgmt Customer Relationship Mgmt, Sales, Service Vertical Apps – Utilities, Healthcare, Retail IOT CLOUD SOLUTION
- 20. Asset Monitoring Monitor assets, their utilization,availability Production Monitoring Manufacturing equipment Monitoring & prognostics Fleet Management Monitor fleet vehicles, driver behavior and costs Connected Worker Enhance worker safety through monitoring of workers and environment IOT CLOUD APPLICATIONS
- 21. THE SUPPLY CHAINPARADOX PRODUCTION PLANS BASED ON HISTORICAL DEMAND INFORMATION AND SALES FORECAST MAKE TO STOCK ENVIRONMENT ACTUAL CUSTOMERS ORDERS. Volatility market demand. Forecast drives all other supply chain planning activities. Poor statistical forecast accuracy. Customer DATA not integrated in the forecast. Without an accurate forecast, unable to create an optimized supply plan or executable schedule. VERSUS UNPREDICTABLE FACTORS
- 22. Integrate customer data intoforecasting Customer Centricity Responsiveness and Flexibility People and Talent Enablement Value Chain Improve order fill, reduce stock out of critical SKUs, increase forecast accuracy, Improve customer service level. Transform your supply chain into a dynamic customer centric value chain Provide powerful analytics to knowledge workers for best insights and decisions Improve supply chain control and efficiency. Be adaptable and agile to quickly adjust and respond to market volatility. OPTIMIZING THE SUPPLY CHAIN
- 23. More Engaging MoreMobile More Insights More Collaborative Innovation Through Engagement Ubiquitous Visibility and Access Real-Time Information for Best Decisions Responsiveness Through Collaboration TRANSFORMING INTO A MODERN SUPPLY CHAIN Right information, at the right time, to the right people!
- 24. Procurement & Order Management LogisticsProductDesign & Planning (PLM) Service & Maintenance Manufacturing DigitalThread DigitalThread Connected Devices and equipment provide real time visibility and responsiveness in the supply chain Analytics on IOT event streams provides insights for product improvement and predictive maintenance Remote Diagnostics Predictive Models Real time analytics Track & Detect Digital Field Service Production Monitoring Fleet Monitoring Asset Monitoring Product Usage Data COMPLETE AND INTERCONNECTED SUPPLY CHAIN
- 25. Customer Experience isthe last source of sustainaible differentiation and the new competitive battleground. T. Bova, Gartner “
- 26. CONSUMER SITES, MOBILEAPPS, ADVERTISEMENT… B2B FEEDBACK/LOYALTY ONLINE REVIEW PRODUCT AND SERVICE THE B2B2C CHALLENGES
- 27. Recurrent Orders Promo sales Up-selling,cross- selling RETAIN DELIVER eOrdering, eCommerce , eLearning BUY & LEARN Distribution POD, end customer Loyalty programs RETAIN Customer care SUPPORT Complains and claims SUPPORT New customer acquisition. Up-selling/cross-selling GROWTH
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