How Microsoft views and approaches Digital Transformation both internally and with our customers. The case for Digital Business, critical enabling capabilities and an approach to drive repeatable transformation

1. Imagine if…
Digital Transformation
Paul Farnan | 26th March 2018

2. Intro..
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Dublin City University
Bachelor of Science (BSc)
PAUL FARNAN
Sapient
Dublin City University
Transformation
Marathons
HolisticHealth
RichardBranson
@paulfarnan
Leixlip, Kildare
email – paul.farnan@microsoft.com
LinkedIn – linkedin.com/in/paulfarnan
@paulfarnan
Performix FINEOS
Physical
Therapy (Dip.)
Prosci Change
Practitioner
Beards
Plant food
Leadership
Disruption
Lifestlye
Mobility
Family
Travel

3. WATER
LEVEL
FULL
pH
NEUTRAL
14
0
SMART COLLAR
Retuned home at 5:07pm
3 NEW MESSAGES
Re: Medical Education
26° INDOOR
TEMPERATURE
FAVORITE STATION
Jazz Classics
MORNING COFFEE
Normally wakes up at 7:00am
PURCHASED ON AMAZON
Reminder: Shall I reorder
more detergent?
THE DIGITAL ERA IS HERE
What does this mean to you?

4. Artificial
Intelligence
3D Printers
1% of 2007 Cost
Smartphones
2% of 2007 Cost
Sensors
.3% of 2007 Cost
Solar
.5% of 1984 Cost
DNA Sequencing
.01% of 2007 Cost
Industrial Robots
3% of 2007 Cost
Mixed Reality
1% of 2007 cost
Drones
1% of 2007 cost
Cloud
Transformative
Technologies
Democratized

6. Business Value Creation
RoleofTechnologyinBusinessValueCreation
1900’s
PRESENT
Product Economy8-25 Yrs 8-25 Yrs 8-25 Yrs8-25 Yrs 8-25 Yrs 8-25 Yrs
Information Economy3-8 Yrs 3-8 Yrs 3-8 Yrs3-8 Yrs 3-8 Yrs 3-8 Yrs 3-8 Yrs
1-3 Yrs 1-3 Yrs Experience Economy 1-3 Yrs1-3 Yrs 1-3 Yrs 1-3 Yrs
Digital Era
Continuous Business Model
and Offer Innovation
Enabling Customer
Experiences
Automating
processes
Product Features
and Functionality
You are here

7. Digital companies grow fast and disrupt further
YEARSINBUSINESS
VALUATION $25b $50b $75b $100b $150b $200b $250b
50
75
100
125
150
175
25

8. Streaming Recommendations Analytics $5b movie studioMail DVD Delivery
What did they
do right?
Intelligent
cloud
Data
Analytics
Agile
Cross-device
Multi-sense
AI
Intelligent cloud
Data
Analytics
Agile
Cross-device
Multi-sense
AI
AI
Multi-sense
AI
#NETFLIX
The Most Feared Force In Hollywood?
#5billionMovieStudio
Home About
TWEETS
16.4K
FOLLOWING
687
FOLLOWERS
2.05M
LIKES
6,477
LISTS
2
FOLLOW
Tweets Tweets & replies Media

9. Transform
products
Optimize
operations
Engage
customers
Empower
employees
Digital Transformation

10. Modern workplace
Business applications
Applications
& infrastructure
Data & AI
Transform
products
Optimize
operations
Engage
customers
Empower
employees
Enabling Digital Transformation

11. Modern workplace
Business applications
Applications
& infrastructure
Data & AI
Transform
products
Empower
employees
Optimize
operations
Engage
customers
Enabling Digital Transformation

12. How We Work
Can you change the way people
work, so that the digital
transformation advantages
can be realized?
Manage Data
How do you sense, collect,
organize, maintain, and process
data so that employees can lead
innovation, make informed
decisions, and design business
processes?
Create Experiences
What if you could create
seamless employee experiences
for HR, procurement, and other
internal interaction workflows
Recruit and Retain
Do you recruit and retain digital-savvy
employees that use information to
positively impact individual, team, and
company performance?
EMPOWER
YOUR
EMPLOYEES
“The Zero Footprint project here at Zeiss
was aimed for integrating new branches
rather quickly. And thanks to the cloud
services and the help of our German
Digital Advisory Services, we had the
chance to do it in less than two months.”
-Matthias Feldmann,
Head of Enterprise Workplace
Zeiss
“Through digital innovation, our business
has the fantastic opportunity to get closer
to our consumers and provide an even
better value proposition.”
-Vittorio Cretella
CIO
MARS
“We needed to change a mission-critical
application and Microsoft Services is
enabling this digital transformation. We
will have one source of truth for each
audit. And that source of truth will be on
the Azure environment.”
-Antony Nettleton,
Global Assurance Leader
Grant Thornton
“Microsoft was the only company, the
only provider who could support the size
and scope of the Court of Justice of Sao
Paulo and the population of San Paulo
without any stops in service.”
-Rosely Padilha de Sousa,
CIO, State Court of Justice,
Sao Paulo

13. Customize
What if you could address your
digital customers differently from
your traditional customers?
Increase Relevancy
Will you create apps that provide
relevant personalized and
seamless experiences, regardless
of how and when the customer
interacts with the organization?
Design for Segments of One
Can you design for
mass personalization at scale?
Gain Insight
How do you gain insight into
customers’ habits and preferences,
enabling actionable customer
segmentation more informed interactions,
and new opportunities for targeted
product offerings and cross-selling?
ENGAGE YOUR
CUSTOMERS
“We wanted to go beyond the industry
standard of preventative maintenance, to
offer predictive and even pre-emptive
maintenance, so we can guarantee a
higher uptime percentage on our
elevators.”
-Andreas Schierenbeck
CEO
ThyssenKrupp Elevators
“With a good partner like Microsoft, we
never need to think about the technology.
We can tell our story and focus on our
customer.”
-Reuben Arnold
SVP, Marketing and Customer
Experience
Virgin Atlantic
“(Fans) want to know their clubs and their
heroes through social networks. They want
to know what happens in between games.
Microsoft brings us knowledge, social
listening, business intelligence, this allows
us to focus on sending the information
that the fan really desires.”
-Javier Tebas Medrano,
President
LaLiga
“These digital assets are going to create a
new engagement experience and make us
smarter about how we engage with our
customers.”
-Anshu Budhraja
CEO
Amway India

14. Dynamic Pricing
Can you adjust pricing in
real time?
Create Experiences
How do you enable near-
instantaneous direct-to-consumer
fulfillment by integrating consumer
insights and trading partner data
with marketing, finance and
production information?
OPTIMIZE
OPERATIONS
“These systems are helping us be more
citizen-centric and making Auckland a
more attractive place to live. They reduce
citizen frustration, provide information to
make choices, increase ridership, and let
citizens know that the city is working on
their behalf.”
-Roger Jones,
CIO
Auckland Transport
“With Microsoft, it isn’t just about the
infrastructure, it’s end-to-end and global.
There are the skills, the capabilities, the
service offering, the development
environment, the security. It all just fit
together.”
-Nick Farrant,
SVP
Rolls-Royce
“With Azure Machine Learning, we proved
that we have the right tool to get us
where we want to go in terms of
predicting student success. It’s a tool our
educators will be able to use to start
tackling the problem of student
disengagement.”
-Shaun Taylor
CIO
Tacoma Public Schools
“JTC foresees new challenges with our
growing portfolio of estates and
buildings, as well as the management of
increasingly complex buildings, higher
customer expectations and the need to
manage our developments’ sustainability.”
-Yim Cheng Siew
CIO
JTC
Create Meaningful Insights
What if you could use insights of
end-to-end processes to develop
continuous manufacturing suites with
footprints less than half the size of
conventional factories?
Fraud Management
Do you use data and software to
improve risk and fraud management?

15. Create new Revenue Streams
What products would you sell if your
company had the necessary
capabilities?
Data as a Product
Can you sell insights, whether its
raw information, analysis and
insights, benchmarking data?
Create Marketplaces
Would you like to use insights to
create new marketplaces, broker
deals, and advertise?
Insights from Data
What if you could use new insights to
drive demand, create new service
offerings improve customer
satisfaction, drive lower cost models,
improve the supply chain?
TRANSFORM
YOUR
PRODUCTS “Indeed, this will give industrial-sized
companies the means to create and
animate the digital profile of their
products, a real source of information for
all stakeholders in the product life cycle.”
-Christophe Devins
Founder and CEO
Adents
“Eventually Maersk’s vessels and
containers will be generating terabytes of
data on activities in real time, and
machines and people will be talking to
each other, learning things about our
operations and our customers that we
can’t even imagine now.”
-Ibrahim Gokcen
CDO
Maersk
“A car is becoming increasingly
connected, intelligent and personal.
Partnering with Microsoft allows us to
accelerate the development of the
associated key technologies needed to
enable scenarios our customers want and
build all-new ones they haven’t even
imagined. We aim to become the provider
of connected mobility for everyone with
one single global platform.”
-Ogi Redzic,
Senior Vice President, Connected
Vehicles and Mobility Services
Renault-Nissan Alliance
“We transform our cities into real smart
cities.
With modern sensors and the right cloud,
we can make multipurpose service
stations out of simple street lamps.”
-Uli Huener,
Head of Innovation Management
EnBW

16. How do we go
from one project
to a continuous
program of
change?
How do we get to our
desired state…. Repeatedly!

17. Working together to unlock opportunities
Digital Transformation Program of Change
DIGITAL PLATFORMDIGITAL CULTURE
CUSTOMER-
FOCUSED
InsightsDriven
Business + Technology Skills
Rapid Experimentation
EXTENDED
HUMAN
SUPPLY CHAIN
Boundaryless
REWARD
collaboration
Embrace micro-
revolutions
Rapid
Experimentation
URGENCY
TRANSPARENCY
Digital Culture
A g i l e O r g a n i z a t i o n
INNOVATIONBUDGETING
Entrepreneurship
Commitment
Inclusive Design
Growth
Mindset
DigitalIsBusiness
INNOVATION
BUDGETING
CEO
DIGITAL APPROACH
DESIGN
Recruit and form your
digital transformation
team to create roadmaps
for the journey ahead.
DREAM
Ideate, imagine and
envision your Digital
Transformation journey.
DELIVER
Bring your ideas to
reality as you
continuously imagine,
design and deliver.

18. Digital
Transformation
= technology
Cultural Shift
Growth mindset
company
values
Growth mindset
diversity
trust
Executive buy-in
reputation
Expanding
the human
supply
chain
inclusion
Skills
shortage
company values
trust
Growth
mindset
inclusion
Skills
shortage
Company values
Digital Transformation
= Cultural shift
inclusion
company
values
Digital
Transformation
= Cultural
shift
trust
Growthmindset
inclusion
trust
Growth mindset
Extended human supply chain
Expanding the
human supply
chain
trust
Skills
shortage
Digital Culture
Boundaryless
Know-it-all
Learn-it-all
fluid
Insights Driven
Fluidity of network
reward
collaboration
Embrace
micro-revolutions
diversity
Business +
Technology Skills
Fail Fast or
Double Down
I have come to understand that my primary job is
to curate our culture so that one hundred thousand
inspired minds—Microsoft’s employees—can better
shape our future.
Satya Nadella
trust
trust
Executive buy-in
urgency
transparency
Rapid Experimentation
Speed
Autonomy

19. WATER
LEVEL
FULL
pH
NEUTRAL
14
0
26°
INDOOR
TEMPERATURE
FAVORITE STATION
Jazz Classics
PURCHASED ON
AMAZON
Reminder: Shall I reorder
more detergent?
Intelligent Cloud
MULTI-DEVICE,
MULTI-SENSE
SERVER-LESS
ARTIFICIAL
INTELLIGENCE
Intelligent Edge
TRUSTED &
SECURE

20. Microsoft Digital Approach
DELIVER
Bring your ideas to reality as you
continuously dream, design and
deliver.
DESIGN
Recruit and form your Digital
Transformation team to create
roadmaps for the journey ahead.
DREAM
Imagine and envision
your Digital
Transformation journey.

21. Imagine and envision your desired future
Trends & Insights
What key trends
and insights are
relevant to
the organization?
Digital Journey
Map
How do your
customers engage
with the
organization?
Where are the
friction spots in
the customer
journey?
Digital Vision
How do you
envision the future
reality of your
organization? How
will you monetize
your assets and
capabilities? How
will you create new
revenue streams?
Scenario Planning
What are the
business drivers?
What are your
investment
objectives? What
are the benefits of
each of your
ideas?
Value Scorecard
What’s the value of
doing this? What
outcomes do you
want to achieve?
Solution
Storyboard
What does the
future state look
like? Illustrate the
desired state.
Scenario Narrative
What customer
pains and needs
are you solving?
What is the
desired outcome
for the customer?
Roadmap
What are the
phases and
milestones to
get there?
DREAM DESIGN DELIVER
Imagine and envision your
desired future.
Your Book of Dreams.

22. DREAM DESIGN DELIVER
EnvisioningTrends & Insights Scenario Prioritization
Imagine and envision your
desired future.
Your Book of Dreams.

23. Build the road for the journey ahead
Digital Transformation
Team
Who are the business and
technology team members?
How will this team get you
to your desired future state?
Rapid Storyboarding &
Prototyping
How do we test ideas and
assumptions? What will the
experience look like? How
do customers react? What
do we need to change?
Value Modeling
What is the detailed
business case? How does
the economic opportunity
change in light of learnings
from the prototypes?
Digital Maturity Model
Assessment
What are the organization’s
digital capabilities? What
are its constraints?
Change Management Plan
and Program Roadmap
How can the organization
anticipate and address
challenges? How will you
drive the change, and
manage risk, governance,
compliance, and adoption-
throughout the
organization?
DREAM DESIGN DELIVER
Recruit and form your
Digital Transformation team
to create roadmaps for the
journey ahead.

24. VALUE MODELING AND DIGITAL
MATURITY ASSESSMENT
RAPID STORYBOARDING AND
PROTOTYPING
DIGITAL TRANSFORMATION
PLANNING AND ROADMAP
DREAM DESIGN DELIVER
Recruit and form your
Digital Transformation team
to create roadmaps for the
journey ahead.
MicrosoftCustomer
Partners
Core
DT Team

25. Continuously Deliver and iterate
Agile Solution Development
Iteratively develop, test, and release
your ideas.
Adoption & Change Management
Drive adoption and change through
the organization.
Value Delivery and Management
Measure, track, monitor, and report
on value realization as you deliver.
Digital Culture
Drive the cultural change necessary
to achieve your goals.
DREAM DESIGN DELIVER
Bring your ideas to reality
as you continuously dream,
design and deliver.

26. Imagine if…your Digital Fast Lane
continuously created new value
Imagine if…your fans, aka your
customers, felt like they are a
part of your team
Imagine if…your ship delivered
value beyond what fits
inside a box
Imagine if… your vision created
new possibilities for homes and
cities of the future
What’s Next? What’s Next? What’s Next? What’s Next?
Improved commercial
building service experience
Predictive/preemptive
maintenance
Customized mechanized
home stair lifts transformed
Monetizing Data
Supply Chain
Blockchain
Engage Fans
Maximize Player
Performance
Branch of the Future
Wealth Management Bots
DREAM DESIGN DELIVER
Bring your ideas to reality
as you continuously dream,
design and deliver.

27. © 2015 Microsoft Corporation. All rights reserved.