When we spoke with executives across Europe who lead digitising efforts, they described a diverse range of deployments, but digital can, and must, deliver far more than it has so far. In this ebook, we explore how businesses can explore digital's full potential across their value chain.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Going Digital: General Electric and its Digital TransformationCapgemini
How can a company that is over a century old transform itself to thrive in a digital economy?
For GE, responding to change is part of its modus operandi. This is a company that has famously made change a core capability and a constant in its history. For over 120 years, GE has ploughed forward under a banner of “Building, powering, moving and curing the world. Not just imagining. Doing.” This constant focus on innovation and transformation has made the company the only one to still remain in the Dow Jones Industrial Index since the original index was established in 1896.
GE is betting big on software and analytics to bring about its transformation, with Jeff Immelt stating: “I took over an industrial company, now it will be known as an analytics company”. GE’s focus on data analytics was clear back in 2012 when it set aside up to $1.5 billion for small take-overs to boost its presence in analytics. GE currently monitors and analyzes 50 million data elements from 10 million sensors on $1 trillion of managed assets daily to move customers toward zero unplanned downtime.
GE’s digital transformation is not the result of being in the right place at the right time. Instead, it is the result of a structured approach that involved a strong top-down digital vision, capability development, achieving all-round buy-in and a constant focus on innovation.
While many digital natives, from FaceBook to Uber, continue to take much of the limelight, this 120-year-old giant of the corporate world shows that digital agility is not just confined to the new Millennial corporates.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Going Digital: General Electric and its Digital TransformationCapgemini
How can a company that is over a century old transform itself to thrive in a digital economy?
For GE, responding to change is part of its modus operandi. This is a company that has famously made change a core capability and a constant in its history. For over 120 years, GE has ploughed forward under a banner of “Building, powering, moving and curing the world. Not just imagining. Doing.” This constant focus on innovation and transformation has made the company the only one to still remain in the Dow Jones Industrial Index since the original index was established in 1896.
GE is betting big on software and analytics to bring about its transformation, with Jeff Immelt stating: “I took over an industrial company, now it will be known as an analytics company”. GE’s focus on data analytics was clear back in 2012 when it set aside up to $1.5 billion for small take-overs to boost its presence in analytics. GE currently monitors and analyzes 50 million data elements from 10 million sensors on $1 trillion of managed assets daily to move customers toward zero unplanned downtime.
GE’s digital transformation is not the result of being in the right place at the right time. Instead, it is the result of a structured approach that involved a strong top-down digital vision, capability development, achieving all-round buy-in and a constant focus on innovation.
While many digital natives, from FaceBook to Uber, continue to take much of the limelight, this 120-year-old giant of the corporate world shows that digital agility is not just confined to the new Millennial corporates.
Ctrl-alt-del: Rebooting the Business Model for the Digital AgeCapgemini
Our research with the MIT Sloan Management Review reveals that only 16% of organizations are leveraging digital technologies to develop new business models. Most organizations follow traditional approaches to innovation that focus on new products and services, rather than on business models. However, research suggests that the returns from traditional approaches have been diminishing with time. As Serguei Netessine, Professor at INSEAD Singapore says, “Pharmaceutical companies spend as much as 30% of their revenues on R&D, trying to develop new products or technologies. But the return from this enormous expenditure has been very elusive and it is a common problem across industries.” Business model reinvention can be as good a route as technology, product or service innovations. This research highlight five different approaches that organizations can adopt to reinvent their business model with digital technologies.
The Digital Transformation Symphony: When IT and Business Play in SyncCapgemini
Digital Masters, such as Starbucks, that leverage digital technologies effectively, differentiate themselves from their peers by consciously striving to build a close relationship between IT and the business. However, Digital Masters are exceptions. The IT-business relationship in most organizations is often a fractious relationship rather than a marriage of equals. Business teams often find the IT department’s high costs and long implementation timelines unacceptable. In addition, IT leaders are often faulted for not speaking the language of business. Leading CIOs take this disconnect head on and try and fix it. Our research shows that leading CIOs take three key actions to align the IT department with the needs of the business: 1. redesign the IT department to unlock digital innovation; 2. create strong digital platforms; 3. rationalize IT Infrastructure to fund digital initiatives. We explore each of these actions in this research paper.
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedCognizant
Changing market dynamics are propelling Asia-Pacific businesses to take a highly disciplined and focused approach to ensuring that their AI initiatives rapidly scale and quickly generate heightened business impact.
As the rise in sophisticated digital technologies drives an exponential change in online customer behaviour, the need for businesses to embrace digital transformation has never been greater.
Report 3 the fourth industrial revolution - things to tighten the link betwe...Rick Bouter
This report was all about the fourth stage of the Industrial Revolution made possible by the far-reaching integration of Operational Technology (OT) and Information Technology (IT). The IT/OT convergence and the end-to-end ecosystems that are under development – from design and production to client interaction and advanced Maintenance, Repair & Overhaul (MRO) – enable a future in which appliances, devices, things and machines for professionals and private people will communicate with central systems, with one another, and with users for the purpose of providing the best possible facilities to makers, service providers, legislators and customers.
Source, Sogeti ViNT: http://vint.sogeti.com/internet-things-4-reports/
AI in Media & Entertainment: Starting the Journey to ValueCognizant
Up to now, the global media & entertainment industry (M&E) has been lagging most other sectors in its adoption of artificial intelligence (AI). But our research shows that M&E companies are set to close the gap over the coming three years, as they ramp up their investments in AI and reap rising returns. The first steps? Getting a firm grip on data – the foundation of any successful AI strategy – and balancing technology spend with investments in AI skills.
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
The Digital Advantage: How digital leaders outperform their peers in every in...Capgemini
Capgemini Consulting and the MIT Center for Digital Business Global Research
New digital technologies like social media, mobile, and analytics are advancing rapidly on the economic landscape. These innovations are used widely by consumers and employees alike. Facebook has more than 1 billion users. There are more than 6 billion mobile phones. Employees often have better digital solutions at home than they do at work, and many customers are more technology savvy than the people trying to sell to them.
Executives in every industry – from media to electronics to paint manufacturing – face a bewildering array of new digital opportunities. They are paying attention, but they have few signposts to guide them. Most stories in the business media focus on fast-moving startups like Zynga and Pinterest, or on a few large high-tech firms like Apple, Google, or Amazon. Unfortunately, to many leaders, stories of these nimble and innovative firms just do not make sense for traditional companies that are older, larger, and burdened with inflexible legacies.
We decided to find out what fast-moving digital innovations mean for large traditional companies. In two years of study covering more than 400 large firms, we found that most large firms are already taking action. They are using technologies like social media, mobile, analytics and embedded devices to change their customer engagement, internal operations and even their business models. But few firms have positioned themselves to capture the real business benefits. Our research points to a real “digital advantage” to those that do.
Digital maturity matters. It matters in every industry. And the approaches that digitally mature companies use can be adopted by any company that has the leadership drive to do so.
Cognizant is the only company to earn a place in the list of Forbes fastest growing technology companies every year since the list’s inception. Its intriguing growth leaves us inquisitive – is there a framework to excel? Has Cognizant found the same? It is known that the book Built to Last by Jim Collins and Jerry Porras influenced Francisco D’Souza (CEO of Cognizant) the most. He is committed to establish a “cult like” culture focused on core values. But, beyond this, does their dual mandate of run better and run different have any role in their monumental growth? Cognizant is not only preaching about helping their clients to transform in order to run better and run different but also walking the talk by practicing the dual mandate within organization from its early days. This paper digs into Cognizant’s history and current trends to understand what they have done to run better and run different.
Industry 4.0 is the name of the next industrial revolution which is fueled by the advancement of digital technologies. It
is dramatically changing how companies engage in business activities. As a result, the disruptive nature of Industry 4.0
demands a reassessment of the requirements for IT. On the one hand, there is the possibility that the responsibilities of Chief Information Officers (CIOs) could be taken over by other executives such as the Chief Digital Officer (CDO) or the Chief Technology Officer (CTO). On the other hand, this
recent development creates entirely new perspectives for positioning themselves and their IT departments
within the business.
The impact of digital technologies is reaching a magnitude at which IT is considered a substantial
business driver, potentially placing CIOs in the driver’s seat.
IT that matters in the new machine age prioritizes cybersecurity, innovation, time-to-market and customers over cost-cutting, according to our latest study. Here’s what the future looks like for IT infrastructure, including our HEROES framework to guide you along the way.
Operations Workforce Management: A Data-Informed, Digital-First ApproachCognizant
As #WorkFromAnywhere becomes the rule rather than the exception, organizations face an important question: How can they increase their digital quotient to engage and enable a remote operations workforce to work collaboratively to deliver onclient requirements and contractual commitments?
A Portfolio Strategy To Execute Digital TransformationCapgemini
Senior Executives in pretty much all industries have now elevated digital transformation to the top of their strategic agenda. And they’re right to do so. The risk of falling behind the curve is so great that senior leaders are not debating whether digital technologies will affect their competitive position, but rather how to conduct an effective digital transformation and how fast it can be done.
However, an organization’s determination to get on the front foot with a bold digital strategy often falters when it comes up against the multi-dimensional complexity of the questions it faces and the risks it must manage. Should we prioritize short-term improvements at the expense of potentially larger strategic shifts? How fast will our industry be disrupted: months, years, or even decades? What level of risk are we willing to take on innovative new business models? Can we deliver our digital strategy in house or do we need to partner?
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
Paul Hermelin Capgemini Chairman and CEO at the Capgemini Infrastructure Summit last January highlighted the conflicting tensions within IT organizations, particularly in light of the fact that IT system limitations are among the top three most significant barriers to business digitization.
IT departments have a short window to become “ sexy” again in the eyes of their clients. To overcome challenges by shadow IT and the rapid pace of business change, CIOs must pull two triggers simultaneously—technological innovation and organizational transformation.
To overcome those challenges this paper illustrates:
- The need for IT organizations to accelerate their move to the Cloud to deliver value in the digital age
- Use cases where IT can act as a business partner for digital innovation
- Principles to shape your next IT delivery model
- Key success factors on how to get there
Ctrl-alt-del: Rebooting the Business Model for the Digital AgeCapgemini
Our research with the MIT Sloan Management Review reveals that only 16% of organizations are leveraging digital technologies to develop new business models. Most organizations follow traditional approaches to innovation that focus on new products and services, rather than on business models. However, research suggests that the returns from traditional approaches have been diminishing with time. As Serguei Netessine, Professor at INSEAD Singapore says, “Pharmaceutical companies spend as much as 30% of their revenues on R&D, trying to develop new products or technologies. But the return from this enormous expenditure has been very elusive and it is a common problem across industries.” Business model reinvention can be as good a route as technology, product or service innovations. This research highlight five different approaches that organizations can adopt to reinvent their business model with digital technologies.
The Digital Transformation Symphony: When IT and Business Play in SyncCapgemini
Digital Masters, such as Starbucks, that leverage digital technologies effectively, differentiate themselves from their peers by consciously striving to build a close relationship between IT and the business. However, Digital Masters are exceptions. The IT-business relationship in most organizations is often a fractious relationship rather than a marriage of equals. Business teams often find the IT department’s high costs and long implementation timelines unacceptable. In addition, IT leaders are often faulted for not speaking the language of business. Leading CIOs take this disconnect head on and try and fix it. Our research shows that leading CIOs take three key actions to align the IT department with the needs of the business: 1. redesign the IT department to unlock digital innovation; 2. create strong digital platforms; 3. rationalize IT Infrastructure to fund digital initiatives. We explore each of these actions in this research paper.
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedCognizant
Changing market dynamics are propelling Asia-Pacific businesses to take a highly disciplined and focused approach to ensuring that their AI initiatives rapidly scale and quickly generate heightened business impact.
As the rise in sophisticated digital technologies drives an exponential change in online customer behaviour, the need for businesses to embrace digital transformation has never been greater.
Report 3 the fourth industrial revolution - things to tighten the link betwe...Rick Bouter
This report was all about the fourth stage of the Industrial Revolution made possible by the far-reaching integration of Operational Technology (OT) and Information Technology (IT). The IT/OT convergence and the end-to-end ecosystems that are under development – from design and production to client interaction and advanced Maintenance, Repair & Overhaul (MRO) – enable a future in which appliances, devices, things and machines for professionals and private people will communicate with central systems, with one another, and with users for the purpose of providing the best possible facilities to makers, service providers, legislators and customers.
Source, Sogeti ViNT: http://vint.sogeti.com/internet-things-4-reports/
AI in Media & Entertainment: Starting the Journey to ValueCognizant
Up to now, the global media & entertainment industry (M&E) has been lagging most other sectors in its adoption of artificial intelligence (AI). But our research shows that M&E companies are set to close the gap over the coming three years, as they ramp up their investments in AI and reap rising returns. The first steps? Getting a firm grip on data – the foundation of any successful AI strategy – and balancing technology spend with investments in AI skills.
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
The Digital Advantage: How digital leaders outperform their peers in every in...Capgemini
Capgemini Consulting and the MIT Center for Digital Business Global Research
New digital technologies like social media, mobile, and analytics are advancing rapidly on the economic landscape. These innovations are used widely by consumers and employees alike. Facebook has more than 1 billion users. There are more than 6 billion mobile phones. Employees often have better digital solutions at home than they do at work, and many customers are more technology savvy than the people trying to sell to them.
Executives in every industry – from media to electronics to paint manufacturing – face a bewildering array of new digital opportunities. They are paying attention, but they have few signposts to guide them. Most stories in the business media focus on fast-moving startups like Zynga and Pinterest, or on a few large high-tech firms like Apple, Google, or Amazon. Unfortunately, to many leaders, stories of these nimble and innovative firms just do not make sense for traditional companies that are older, larger, and burdened with inflexible legacies.
We decided to find out what fast-moving digital innovations mean for large traditional companies. In two years of study covering more than 400 large firms, we found that most large firms are already taking action. They are using technologies like social media, mobile, analytics and embedded devices to change their customer engagement, internal operations and even their business models. But few firms have positioned themselves to capture the real business benefits. Our research points to a real “digital advantage” to those that do.
Digital maturity matters. It matters in every industry. And the approaches that digitally mature companies use can be adopted by any company that has the leadership drive to do so.
Cognizant is the only company to earn a place in the list of Forbes fastest growing technology companies every year since the list’s inception. Its intriguing growth leaves us inquisitive – is there a framework to excel? Has Cognizant found the same? It is known that the book Built to Last by Jim Collins and Jerry Porras influenced Francisco D’Souza (CEO of Cognizant) the most. He is committed to establish a “cult like” culture focused on core values. But, beyond this, does their dual mandate of run better and run different have any role in their monumental growth? Cognizant is not only preaching about helping their clients to transform in order to run better and run different but also walking the talk by practicing the dual mandate within organization from its early days. This paper digs into Cognizant’s history and current trends to understand what they have done to run better and run different.
Industry 4.0 is the name of the next industrial revolution which is fueled by the advancement of digital technologies. It
is dramatically changing how companies engage in business activities. As a result, the disruptive nature of Industry 4.0
demands a reassessment of the requirements for IT. On the one hand, there is the possibility that the responsibilities of Chief Information Officers (CIOs) could be taken over by other executives such as the Chief Digital Officer (CDO) or the Chief Technology Officer (CTO). On the other hand, this
recent development creates entirely new perspectives for positioning themselves and their IT departments
within the business.
The impact of digital technologies is reaching a magnitude at which IT is considered a substantial
business driver, potentially placing CIOs in the driver’s seat.
IT that matters in the new machine age prioritizes cybersecurity, innovation, time-to-market and customers over cost-cutting, according to our latest study. Here’s what the future looks like for IT infrastructure, including our HEROES framework to guide you along the way.
Operations Workforce Management: A Data-Informed, Digital-First ApproachCognizant
As #WorkFromAnywhere becomes the rule rather than the exception, organizations face an important question: How can they increase their digital quotient to engage and enable a remote operations workforce to work collaboratively to deliver onclient requirements and contractual commitments?
A Portfolio Strategy To Execute Digital TransformationCapgemini
Senior Executives in pretty much all industries have now elevated digital transformation to the top of their strategic agenda. And they’re right to do so. The risk of falling behind the curve is so great that senior leaders are not debating whether digital technologies will affect their competitive position, but rather how to conduct an effective digital transformation and how fast it can be done.
However, an organization’s determination to get on the front foot with a bold digital strategy often falters when it comes up against the multi-dimensional complexity of the questions it faces and the risks it must manage. Should we prioritize short-term improvements at the expense of potentially larger strategic shifts? How fast will our industry be disrupted: months, years, or even decades? What level of risk are we willing to take on innovative new business models? Can we deliver our digital strategy in house or do we need to partner?
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
Paul Hermelin Capgemini Chairman and CEO at the Capgemini Infrastructure Summit last January highlighted the conflicting tensions within IT organizations, particularly in light of the fact that IT system limitations are among the top three most significant barriers to business digitization.
IT departments have a short window to become “ sexy” again in the eyes of their clients. To overcome challenges by shadow IT and the rapid pace of business change, CIOs must pull two triggers simultaneously—technological innovation and organizational transformation.
To overcome those challenges this paper illustrates:
- The need for IT organizations to accelerate their move to the Cloud to deliver value in the digital age
- Use cases where IT can act as a business partner for digital innovation
- Principles to shape your next IT delivery model
- Key success factors on how to get there
For businesses that want to stay relevant in a Digitized Market, it's imperative to consider Digital Transformation. At Cygnet we deliver 100% Agile solutions in line with your business goals
Shared Services: How Digital Can Accelerate the Leap to Value-Added Different...Cognizant
Shared services centers must embrace social, mobile, analytics, cloud and intelligent process automation techniques to navigate three critical shifts that can turbocharge innovation and reinforce market differentiation.
The Four Essential Pillars of Digital TransformationIan Thomas
Based on years of practical experience this whitepaper distils four key pillars we have observed time and again in successful digital initiatives, providing a structured foundation for an orderly, end-to-end digital transformation of the enterprise.
10 Application Modernization Principles that Enhance the Digital JourneyCognizant
The COVID-19 crisis has made experience-centricity and IT agility paramount to nearly every business. But getting there with ancient applications infrastructure is easier said than done. Here's how organizations can overhaul heritage applications to meet customers' lofty digital experience and service expectations.
Digital Transformation in Manufacturing - A Whitepaper by RapidValue SolutionsRapidValue
This whitepaper aims to answer some of the common questions around digital transformation specifically for the business leaders in the manufacturing industry. Because of the role that technology plays today in a organization's ability to evolve, business leaders must lead their organizations through this era of digital transformation.
5 Steps to Effectively Handle Digital Transformation and Business Disruption:...SVRTechnologies
Digital technology continues to change the business world dramatically. This article provides business and IT leaders’ helpful tools to drive and manage digital transformation effectively.
On the Road to Digital: Practical EncountersCognizant
Even with digital initiatives entering the mainstream, many business and IT leaders are still encountering headwinds. Here are the five most common challenges organizations face and potential workarounds that can help captains of industry more quickly and effectively digitally enhance their businesses.
Being Digital, Fast-forward to the Right Digital Strategy Fabio Mittelstaedt
Do my Company have the right Digital Strategy? Is it compelling enough to beat my competitors? Or to conquer the new digital customers from millenniums to baby boomers? Competing in a world shaped by digital technologies requires a fundamentally different approach to how strategies are developed and executed. 55% of business leaders admit that they do not yet have an enterprise-level digital strategy to support their corporate strategy. But there is a difference between developing some digital capabilities or being a digital lead in your industry. Digital disrupts business strategy. Business leaders must consider a new strategic approach.
Zinnov examines the growing trend of enterprises setting up digital labs to drive the next leg of their digital journey. Geographies with rich product development capabilities and a talent pool with key skills are emerging as hot spots for the establishment of innovative digital labs
Building a Digital Organization
Digitalization Trends & Opportunities
The Digital Electric Company of the Future
Questions
•
What kinds of cities do we want to live in tomorrow?
•
What if assumptions behind the projections about urbanization are wrong, and the current trend of urbanization is reversed by 2030 or 2050?
•
What if the global south achieved the same level of prosperity, wealth, and standard of living as the global north?
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How to embrace digital transformation in the Financial Services sectorBrandworkz
Digital has the power to transform business. Businesses in every sector are starting to go through a digital transformation. The Financial Services sector particularly is waking up to the potential of digital to integrate and streamline the entire business process. This slideshare offers insights from industry experts and tips for how to achieve digital transformation success if you are in Financial Services.
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is evolving into a strategy that reaches across technology companies. We offer guidance on the rise of experience and its role in business modernization, with details on how orgnizations can build the ecosystem to support it.
Enhancing Desirability: Five Considerations for Winning Digital InitiativesCognizant
To be a modern digital business in the post-COVID era, organizations must be fanatical about the experiences they deliver to an increasingly savvy and expectant user community. Getting there requires a mastery of human-design thinking, compelling user interface and interaction design, and a focus on functional and nonfunctional capabilities that drive business differentiation and results.
The Work Ahead in Manufacturing: Fulfilling the Agility MandateCognizant
According to our research, manufacturers are well ahead of other industries in their IoT deployments but need to marshal the investment required to meet today’s intensified demands for business resilience.
The Work Ahead in Higher Education: Repaving the Road for the Employees of To...Cognizant
Higher-ed institutions expect pandemic-driven disruption to continue, especially as hyperconnectivity, analytics and AI drive personalized education models over the lifetime of the learner, according to our recent research.
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
In recent years, insurers have invested in technology platforms and process improvements to improve
claims outcomes. Leaders will build on this foundation across the claims landscape, spanning experience,
operations, customer service and the overall supply chain with market-differentiating capabilities to
achieve sustainable results.
Profitability in the Direct-to-Consumer Marketplace: A Playbook for Media and...Cognizant
Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
Policy Administration Modernization: Four Paths for InsurersCognizant
The pivot to digital is fraught with numerous obstacles but with proper planning and execution, legacy carriers can update their core systems and keep pace with the competition, while proactively addressing customer needs.
The Work Ahead in Utilities: Powering a Sustainable Future with DigitalCognizant
Utilities are starting to adopt digital technologies to eliminate slow processes, elevate customer experience and boost sustainability, according to our recent study.
Five Priorities for Quality Engineering When Taking Banking to the CloudCognizant
As banks move to cloud-based banking platforms for lower costs and greater agility, they must seamlessly integrate technologies and workflows while ensuring security, performance and an enhanced user experience. Here are five ways cloud-focused quality assurance helps banks maximize the benefits.
The Work Ahead in Intelligent Automation: Coping with Complexity in a Post-Pa...Cognizant
Intelligent automation continues to be a top driver of the future of work, according to our recent study. To reap the full advantages, businesses need to move from isolated to widespread deployment.
The Work Ahead in M&E: Scaling a Three-Dimensional ChessboardCognizant
Post-pandemic, the rules of the game for media and entertainment businesses have intensified, and competing will require even bolder moves and investments in digital, according to our research.
The Work Ahead in Banking & Financial Services: The Digital Road to Financial...Cognizant
Banking and financial services organizations are moving beyond the basics of digital banking and one-size-fits-all services, according to our recent study. Using AI, automation and analytics, they aim to speed processes, blend human-centric and tech-driven customer engagement and deliver personalized financial wellness.
The Work Ahead in Banking & Financial Services: The Digital Road to Financial...
Realising Digital’s Full Potential in the Value Chain
1. April 2021
Realising Digital’s Full
Potential in the Value Chain
When the COVID-19 pandemic struck, manufacturers, retailers and service
providers revamped delivery and operations models virtually overnight to ensure
their consumers had access to familiar goods and services. Many companies found
they had to upgrade the infrastructure supporting the new “path to consumption”
value chain, and turned to digital to accomplish this. As we spoke with executives
across Europe who lead such digitising efforts, they described a diverse range of
deployments, but digital can — and must — deliver far more. In this ebook, we
explore how businesses can realise digital’s full potential across their value chain.
2. < Back to Contents
2 / Realising Digital’s Full Potential in the Value Chain < Back to Contents
Contents
Click a link below to jump to that section.
3 Introduction
5 Think bigger about digital
10
Put experience at the center of digital initiatives
14 Supercharge decision-making with AI
16 Overcome barriers to optimising digital returns
20 Successes and lessons shared
24 What’s next
“Looking at
transformation
holistically is
key to aligning
customer systems
to core systems.”
CTO, travel and hospitality group
3. 3 / Realising Digital’s Full Potential in the Value Chain Back to Contents
Introduction
Digital has become an important tool in the “path to consumption” value chain — and yet still has more to offer.
Manufacturers, service providers and retailers have doubled down on their digital initiatives.
That became apparent in our conversations late
in 2020 with more than 40 senior executives who
told us about the recent top digital initiatives in
their companies. The executives represented
companies in a variety of consumer-facing goods
and services industries across Europe. All had
embarked on ambitious projects, some of which
spanned multiple operating areas. Most of these
projects had been launched before the COVID-19
pandemic struck, then continued, with project
teams collaborating from remote locations via
tools like Microsoft Teams. Some projects took on
new urgency in the pandemic, such as retailers
solving the logistics of last-mile delivery from
their retail stores instead of warehouses. At least
one robotics process automation (RPA) project
launched because of COVID-19, when a company
simply didn’t have the human power to tackle
paperwork associated with a divestiture.
Executives shared these details, explaining why
these projects took priority; where they ran into
implementation obstacles; and lessons learned
and success measures. These common themes
emerged from our conversations:
❙ Digital is everywhere in the value chain but
only rarely supports an end-to-end digital
strategy. Organisations have matured beyond
using digital for simple point solutions but
could still expand their vision for how to use
digital to retool value chains.
❙ Experience is ultimately the end game for
most digital initiatives. Experience is broadly
defined, from closing contracts in the field
to tracking machine parts throughout their
lifecycle. Creating a common vision of the
customer experience across the organisation
can drive more cohesion among digital efforts.
❙ Creating intelligence by unlocking data
silos is an imperative. Organisations only
rarely mentioned AI and machine learning
applications, tools that could help them
supercharge returns from work they are doing
to consolidate data stores to tap them for
historical analysis, forecasting and customer
insights.
❙ Legacy system inertia slows and
complicates digital initiatives. Modernisation
is overdue. Heritage systems and processes
they support often have a larger-than-expected
impact on modern technology.
4. Consumer Goods
Construction
Utilities
Travel Hospitality
Retail
Real Estate
Manufacturing
Logistics
Energy
4 / Realising Digital’s Full Potential in the Value Chain Back to Contents
❙ Project and change management remain challenges as
the stakes for their success grow larger. Organisations
must adopt experience-oriented approaches to ensure
stakeholder adoption and full return on digital investments.
❙ Sustainability and the circular economy are emerging.
Companies need a strong digital foundation on which
to build sustainable, environmentally sensitive practices
to satisfy growing consumer demand for products and
services from green businesses.
We explore these themes throughout this ebook. We examine
how to engineer a modern business through a holistic digital
strategy centered on delivering a well-defined customer
experience. We discuss building this experience with insights
based on deep, rich data stores, tapped with intelligent
decisioning tools. We also look at how to overcome common
barriers to digital success and lessons shared. Executing these
steps will help position companies to realise maximum return
from their digital investments in the future of experience,
technology and work.
5. 5 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“Essentially we had to create
a new organisation with a
functional ERP, industrial IT
and modernised processes.”
Operations director, manufacturing
Think bigger about digital
“Our goal was a stable
infrastructure with best of
breed online and backend
technologies.”
IT director, retail conglomerate
“The key to transformation
was to improve the
experience for customers
and employees, and define
the way we operate the
digital company.”
Global digitisation lead, energy company
“Being more predictive
about plant maintenance
would help us manage
those costs.”
Head of IT digital, energy producer
“Our people must close
contracts while they’re
in the field to capture
business away from our
competitors.”
Digital transformation lead,
agricultural supply company
“A master data pool
would supply intelligence
to all our operational and
supply chain needs.”
Director, global shared services,
energy producer
Respondent Voices
6. 6 / Realising Digital’s Full Potential in the Value Chain Back to Contents
Supply Chain/Logistics Operations Internal Support Services Sales, Marketing Customer Services
❙ RPA
❙ Robotics
❙ IoT track n trace
❙ SAP Ariba
❙ Goods-to-person system
❙ Field personnel augmentation
❙ Predictive analytics
❙ Digital finance
❙ RPA
❙ ERP consolidation
❙ Enterprise asset management
❙ Master data management
analytics
❙ SAP optimisation
❙ Workflow automation
❙ PLM consolidation
❙ AWS migration
❙ Data platform modernisation
❙ Microservices adoption
❙ Remote/work from home support
❙ Customer portals
❙ Mobile apps
❙ Track n trace
❙ CRM system
consolidation
❙ Direct-to-consumer
sales/e-commerce
❙ Mobile app development
❙ Business intelligence
❙ Paperless contracting
❙ Virtual events
❙ Web transformation
❙ Business intelligence
visualisation
*Some projects encompassed more than one category.
Response base: 40 European executives
Figure 1
Digital projects from the respondents’ organisations
15
10
21
36
59
Number of Projects in Scope*
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7 / Realising Digital’s Full Potential in the Value Chain
We asked each executive about the three top digital projects under way in their
company. Many projects were ambitious and required some integration with systems in
other segments of the value chain. Clearly, digital is no longer synonymous with “point
solution.” Yet organisations could drive still more value out of these ambitious digital
projects. Here’s how:
❙ Articulate a vision and business case for
the comprehensive digitisation of the
value chain. Many projects concentrated
on one value chain segment, with links to
other segments being incidental vs. being
deliberately targeted and strengthened.
Projects focused on supply chain logistics
did not necessarily incorporate a finance or
customer-facing component. Customer-
facing initiatives did not always have obvious
operations and logistics integration. Chief
digital officers, chief information officers and
chief operating officers may all be leading
different digital initiatives with their own distinct
perspectives. This reality makes it extremely
difficult to develop a coherent strategy. Large
islands of tactical digital may arise that don’t
map to the organisation’s business strategy.
❙ Create digital capabilities in the service
of an overarching guiding vision. Digital
is delivered via a new technology stack that
gives companies the power to reimagine how
they can be better at delivering the product
or service that has made them great. A few
executives did describe visions for using digital
to drive new experiences and intelligence
throughout their value chain, even if their
efforts are nascent. These visions can be bolder
and should help guide the choices made and
capabilities created in each segment of the
value chain.
Projects focused on
supply chain logistics
did not necessarily
incorporate a
finance or customer-
facing component.
Customer-facing
initiatives did not
always have obvious
operations and
logistics integration.
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8 / Realising Digital’s Full Potential in the Value Chain
Figure 2
Consumer/worker/investor value realized through...
enabled by...
powered by...
Data
Instrumentation
fueled by...
acquired from...
running on...
A foundation of tech fit-for-purpose for the modern enterprise.
Foundation Technology
(Cloud, Platforms, ERP systems, 5G, Blockchain and more)
Business Value
Experiences
Software Engineering
Intelligence
On a new architecture for work
Every organisation must master this stack at scale to drive business in the Fourth Industrial Revo-
lution. Applying this — process by process, experience by experience — across every value chain is
how we build the modern enterprise.
❙ Aim to iterate vs. overthink. An organisation
that takes two years to develop an overarching
vision will find technology advances have likely
outpaced its thinking. Yet reckless development
is wasteful and unsatisfactory. Focusing on
delivering an optimal customer experience
(also likely a moving target) should provide
direction about what processes to reimagine
and capabilities to build. Companies can then
move forward via rapid prototyping, feedback
and iterations of minimum viable products.
9. 9 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“We had to match digital competition and build deeper
partnerships with customers vs. transaction-based
relationships — without hiring more field personnel”
Digital transformation lead, agricultural conglomerate
Put experience at the center of digital initiatives
“Our customers have high expectations for fast resolution
of issues with their components, so we needed full
traceability throughout the product lifecycle.”
Global SCM digitisation lead, manufacturing
“We wanted to understand
individual customers so
we could personalise our
interactions with them.”
Deputy CIO, retailer
“We were seeing a 30%
drop rate during the
customer journey and had
to optimise that experience.”
CTO, travel hospitality group
“The goal is to make our customer-facing systems
more responsive, with more efficient integration
with data and backend supply chain systems.”
Director of technology for retail digital, retailer
Respondent Voices
10. 10 / Realising Digital’s Full Potential in the Value Chain Back to Contents
Cost pressure
Technology innovation opportunity
Technology obsolescence
Adapt to new customer needs
Adapt to competition
Business continuity
Reorganisation
4%
6%
6%
17%
17%
19%
31%
Response base: 40 European executives
Figure 3
Multiple drivers of digital business change
Many decision-makers explicitly named improved customer
experience as a key objective of a digital initiative. The
pandemic has sharpened this focus because the “Amazon
experience” has become the benchmark for any digital
experience. This is true for experiences across both the
business-to-business and business-to-consumer links in the
path-to-consumption value chain.
Organisations targeted a variety of stakeholders to please:
customers, internal business users, field personnel and
suppliers. Yet very often, we heard companies assume
experience would improve as a byproduct of digital delivery.
It was not surprising to us that several executives said they
“missed” their improved experience targets. Here’s how to
help ensure ancillary goals, such as reduced costs and new
technology features, deliver expected returns:
❙ All digital initiatives must center on the organisation’s
customer experience vision. Insights into the customer
journey will determine what the experience should be
and all the touchpoints at which the experience must be
delivered. With that clear picture, companies may then
define the capabilities required to support that experience.
These capabilities are interrelated, so companies must take
a holistic approach to each initiative, considering how a
change in one capability may require changes elsewhere.
Stated reason for transformation
11. 11 / Realising Digital’s Full Potential in the Value Chain Back to Contents
❙ The cost of not thinking holistically about digital is high. Without
the digital ecosystem in mind, it’s all too easy to create a process or
function that contradicts the goals for the customer experience. A supply
chain initiative may be designed to minimise delivery costs paid by the
customer by shifting to a different last-mile carrier. Yet sales intelligence
shows customers are willing to pay a premium for greater visibility and
fast delivery — qualities the new process does not deliver. The customer
experience is undermined because the supply chain initiative was not
aligned with the sales insight.
❙ The effort to coordinate digital across value chain segments is
higher — but so is the payback. Take the objective of delivering a
seamless, continuous experience no matter which facility, store or
branch a customer visits across Europe. An IT team might propose a new
master data management or CRM system. Yet such systems alone could
not deliver a harmonised experience at every touchpoint unless they
incorporated human-centered experience design. That design also will
help identify all the customer data required to provide the intelligence
needed to refine products and services and retool fulfillment processes,
such as consolidating or adding distribution centers. These refinements
then are executed with customer experience in mind, forming a virtuous,
value-creating loop.
❙ Prepare to know your customer forever. Some companies already
have invested in understanding customer journeys. Customers are
continuously generating data and new tools, which are still rapidly
advancing, enable new insights. As one retailer explained, the company
had never before been able to know its customers as unique individuals.
Also, data gathered during the COVID-19 pandemic will be extremely
valuable to understand which customer behaviour shifts will be lasting
and how new expectations and habits should shape a company’s next
generation of products and services.
12. 12 / Realising Digital’s Full Potential in the Value Chain Back to Contents
The experience-driven digital ecosystem
Digital initiatives across the value chain should align with a common,
company-wide vision of the desired customer experience.
Figure 4
Interest
Awareness
Search
Reputation
Purchase
Experience
Socialize
Journey
Channels
Digital Tech
Capabilities Product
Development
Distribution
and Logistics
Service
Quality
Product Portfolio
Management
Physical Stores
Network
Data and Analytics
Experience
13. 13 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“Our teams required a
transparent, common way
of looking at a single source
of truth so they had deeper
insights and could make
better decisions.”
Senior manager,
digital transformation, automaker
Supercharge decision-making with AI
“We were able to say
‘no’ with confidence to
initiatives based on data
we collected and insights
data provided us. ”
CTO, Energy services and solutions
company
“The goal was to increase
plant production through
analysis of historical data
that could show how to
overcome a recurring
bottleneck.”
Head of IT digital, energy producer
Respondent Voices
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14 / Realising Digital’s Full Potential in the Value Chain
Manufacturers have meticulously tracked
material and finished product movements
for years. Utilities, logistics service providers,
and major retail and hospitality players have
increasingly moved much of their customer
engagement online. All these efforts have
created a treasure trove of data from across
the value chain.
Organisations are using digital to unlock
these vast data stores and are applying tools
to understand processes and customers with
more granularity to generate insights and
intelligence they can act on. One energy
producer created a big data platform and
used it to analyse historic data about oil flow
during the extraction process. Processing the
data with AI indicated how it could increase the
flow without additional equipment, improving
potential revenue from the production facility.
Despite such potential, only a handful of
companies mentioned using AI tools to drive
more value from their data. Here’s how to
address that gap:
❙ Put data in the cloud. Modern cloud-
based platforms make more data accessible
throughout an organisation, streamlining
data extraction from key systems, including
legacy applications. Cloud offers flexible data
structures and architectures that enable
organisations to quickly tap into and monetise
data resources.
❙ Invest in improving data quality. Machine
learning tools and algorithms must learn
from clean and structured data sources.
Tools exist to make it easier for organisations
to clean older pools of data. Going forward,
companies need data quality management
teams to evangelise data quality and provide
governance for long-term data integrity. Team
members work with product owners and users
to help them understand why data quality is
essential and how it will enable more accurate
predictions and analysis. Data quality must be
a company-wide initiative, not the responsibility
of a single department.
❙ Focus on use cases when building insights
from disparate data sources. Focusing on
a pain point and identifying the data needed
to solve it is an effective way to avoid “boiling
the data ocean” and to see faster returns from
AI tools. This is especially true when one data
source turns out to support several use cases.
Too often, data engineering teams load data
that is not relevant to the problem at hand.
❙ Make data beautiful for business users.
Providing intuitive, attractive tools will help
convert stakeholders used to making decisions
based on instinct or anecdotes to using
business intelligence and analytics. Several
executives explained business users did
not always automatically comprehend how
analytics tools could derive insights from data.
15. 15 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“We tried too many
transformations at
the same time.”
Innovation director,
sports equipment maker
Overcoming barriers to optimising digital returns
“Our pace of change was
constrained because of
our complex old internal
IT estate.”
Head of IS delivery, utility
“It was very difficult for our
engineers to let go of their
experience and trust the data.”
Head of IT digital, energy producer
“We saw quite a lot of resistance
to change, both in adopting the
technology and in accepting the
new processes.”
Change transformation program director,
real estate hospitality
Transformation
management/planning
Legacy
technology
Change
management
Respondent Voices
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16 / Realising Digital’s Full Potential in the Value Chain
Bring realistic resources to transformation
Many executives told us project scoping,
requirement gathering and stakeholder
expectations management were challenging
and sometimes led to delays in project
implementation. One company’s global
enterprise resource planning (ERP) rollout
was delayed because it launched too many
concurrent transformations, all of which required
the same resources. For others, rolling out a new
digitised process across regions often went slowly,
if it occurred at all, because processes had not
been harmonised before or during the project’s
development. This meant some projects fell short
of expected productivity gains.
Our recommendations:
❙ Resource management is key. Our
conversations reinforced our observation that
key decision-makers often are involved in too
many projects. That generally results in projects
not receiving sufficient attention or bottlenecks
occurring as decisions and direction lag.
Creating an enterprise project management
office (PMO) is still the clear way to prevent
this. A PMO looks at the resources each project
requires in terms of tools and finances as well
as attention from executive management. It’s
easy to develop a business case for a PMO
when an organisation thinks about the value
at risk. A PMO does require everyone to be
transparent about their available resources and
how they are being allocated.
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17 / Realising Digital’s Full Potential in the Value Chain
Uncork legacy bottlenecks
Many of our conversations revealed that projects bogged down where digital initiatives had to share data with legacy systems.
Here’s how to deal with heritage hurdles:
❙ Modernise applications to speed digital deployment.
This makes vital data in legacy systems more readily
consumable by modern applications. While we don’t
advocate reviewing the IT landscape from alpha to omega
before every project, it is important to understand what
data will come from or be supplied to a legacy system to
drive the desired customer experience. This knowledge will
help prioritise which applications to address first, often by
modernising and migrating them to cloud environments.
❙ Take a phased approach that delivers quick, visible
wins. Have a vision for what the fully modernised process
or system will accomplish, then deconstruct that into
smaller, manageable projects. That could be as simple as
training a software bot to complete a rote data entry task
that creates cost savings and returns time to stakeholders.
These successes demonstrate how digital can improve
work experiences and start building acceptance and even
demand for change.
❙ Use containers, microservices and the cloud to
accelerate modernisation efforts. These tools make
it easier to reuse existing knowledge artifacts in legacy
systems without affecting the responsiveness of modern
systems. It also enables other digital investments like AI, RPA,
IoT, etc. to interact in the ecosystem without standardising
all the underlying platforms. Our experience has shown that
application modernisation leads to 30% efficiency gains
in the IT landscape, resulting in up to a 25% increase in
revenue generation from the affected applications.
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18 / Realising Digital’s Full Potential in the Value Chain
Change management
Every executive we interviewed cited significant change management
challenges as the main reason why intended users, either internal
or external, did not adopt a digital tool as expected. Digital offerings
did not necessarily sell themselves. Some professionals did not trust
new data-driven processes vs. their own body of knowledge and
experience. Others did not take time to learn the capabilities of new
tools, while others expected far more than the tools and processes
delivered. Limited adoption typically meant slower ROI.
While digital creates new change challenges — such as the managers
at one company that had to learn how to supervise industrial robots
— it also creates ways to overcome the age-old conundrum of
how to manage change successfully. Here’s how to accelerate true
acceptance of digital change:
❙ Change management today must be delivered as an
experience vs. a process. Today, stakeholders must be engaged
as cocreators of new tools and processes. Gathering information
for an impact assessment and other traditional exercises should
not be the work of a small, centralised team. Instead, during
workshops, affected stakeholders should collaborate with each
other, drawing on their expertise to solve the challenge and/or take
advantage of an opportunity. Stakeholders learn more about how
their work affects the customer experience and value chain when
engaging with each other. Through cocreated solutions, they’ll also
have more ownership in the new process, service or product, i.e., a
vested interest in its success.
❙ Demonstrate the power of digital tools. Whenever appropriate,
change management communication and engagement
mechanisms should be delivered on digital platforms and devices.
Use high quality videos and podcasts and online training tools.
Gamify training to stimulate engagement. Build and empower
online change communities to create grassroots support; monitor
the sentiment of the community to identify and address concerns
and issues before they become entrenched obstacles.
19. 19 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“The time it took to find
the right data went
from days to seconds.”
Global SCM digitisation lead,
energy company
Successes and lessons shared
“More data for inventory
management was an
unexpected benefit from
our robotic deployment.”
CIO, robotics, manufacturer
“The conversion, stability and
scalability of the platform was
massively improved. We can
experiment with more frequent
releases and get quick feedback.
Online customer volume and
revenues have grown.”
IT director, delivery operations, ecommerce
“We have broken down the silos
between IT and the business.”
Customer service manager,
utility company
“RPA gave us a quick
implementation and faster
ROI, which gave relief
to users vs. waiting for a
long-term solution.”
Senior manager, digital
transformation, automaker
“We can now spin up
environments in 30
minutes compared
to two to four weeks
before.”
CIO, retail company
Respondent Voices
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20 / Realising Digital’s Full Potential in the Value Chain
Most decision-makers we spoke with reported at least some measure of success with
their digital initiatives. Many of these metrics struck us as being department-centric
vs. organization-wide. The pandemic and rapid pivot-to-digital across the path to
consumption value chain requires benefits to quickly percolate across the enterprise.
It’s likely different business functions will have unique metrics, such as the speed of
delivering a key report or real-time monitoring of machinery health. It can be easy to
achieve some of these and yet be disappointed in the overall digital effort. Focusing on
goals for tactical areas — even as broad as supply chain management and logistics —
could create islands of digital that don’t necessarily improve the customer experience.
Ask these two questions to help guard against that occurring:
❙ Does the digital initiative help the
company deliver the next generation
of the products or services at which
it excels? The digital technology stack
of intelligent decisioning built on data
stores on top of a cloud infrastructure
makes it possible for companies to
reimagine and create new experiences
around the products or services for
which they are known. Projects and their
success metrics must be evaluated in the
context of the company’s overarching
business strategy and digital vision.
❙ Does everyone share the vision? An
effective way to get everyone on the
same page is to fully define the customer
experience to be delivered. Then
everyone must understand this vision.
Ask four or five leaders in key areas to
explain the vision. If each has a different
answer or perspective, efforts likely will
be out of alignment. That conceivably
can lead to one area thinking it has met
the objective while another complains
the new tool or process does not deliver
their required capabilities.
21. 21 / Realising Digital’s Full Potential in the Value Chain Back to Contents
0 2 4 6 8 10 12 14 16 18
Cost/Value
Revenue
Customer experiences
Transparency
Agile mindset
Speed
100%
80-100%
60-80%
40-60%
40%
Achievement
of objectives
Number of initiatives
Response base: 40 European executives
Figure 5
Succeeding with digital initiatives
Many of the executives reported digital projects were successful, particularly in cost
reduction. Companies can derive even greater benefits by also focusing on customer
experience in their digital initiatives.
Shared learnings
❙ Get the right input early. This is essential to avoid wasted
time and effort. One executive said a team spent a great
deal of time perfecting data warehouse requirements before
considering the use cases, so the features they delivered
turned out to have limited value. At another company, a
team developing a customer portal had plenty of input from
internal stakeholders but limited contact with the customers.
The first iterations of the tool did not meet the customers’
needs and slowed adoption.
❙ Balance planning with agility. Given that traditional
project management, waterfall development and change
management tend to require comprehensive initial
planning, it is challenging for companies to adopt faster,
more iterative approaches to digital initiatives. Technology is
changing too quickly to attempt to build and follow a long-
term implementation plan. Keep the customer experience
in view and determine what systems, capabilities and
data are necessary to deliver it. Use that insight to guide
planning — such as examining data structures of just the
affected applications or determining processes that must be
reimagined before automation gets under way.
❙ Have a plan for MVPs and pilots. A German manufacturer
told us that having clear criteria for when to move from
experiments and minimum viable products (MVPs) to a pilot
22. 22 / Realising Digital’s Full Potential in the Value Chain Back to Contents
and when to scale pilots was an essential learning. Initially the company
did not have a clear framework for managing innovation, nor was there
a common definition of success among all project stakeholders. Without
this framework, many MVPs remained at the initial stage and pilots were
not scaled. After addressing these issues, the manufacturer scaled more
pilots into production. A UK retailer noted that training and coaching
senior business executives on Agile practices and decision-making
increased its success rate on pilots.
❙ Identify champions and create incentives. Several executives noted
strong leadership support made it easier to hurdle change management
obstacles. Lacking that, stakeholders often “went back to their own ways”
of doing things, as one director put it. Another effective strategy was to
make regional or country leaders responsible for adoption success and
link it to their performance reviews.
❙ Accelerate deployment with diversely skilled development pods.
Having people who fully understand the business as well as full-stack
developers in a pod makes the Agile methodology even more effective.
To successfully divest a line of business, one company had to review
and sort thousands of contracts — a process fraught with warranty and
financial risk that could take potentially years to complete. By bringing
together a team with AI and RPA experts alongside power business users
and using Agile methods, the company had a prototype automation
developed in a week — and the contracts sorted within a month.
23. 23 / Realising Digital’s Full Potential in the Value Chain Back to Contents
“Sustainability is the
key driver in all our
transformation projects,
regardless of technology.”
Senior manager, digital transformation,
carmaker
What’s next
“Everything we do is
linked to ESR in some
way in terms of cost
of delivery, waste,
environmental impact and
fuel consumed.”
IT director, retail conglomerate
“Carbon emission now
must be included in
every business case.”
Head of IT digital, energy producer
“The entire five-year
plan and projects for
our industry revolves
around environment and
sustainability.”
Customer service manager, utility
“[Environmental Social
Responsibility] is part of
contracting with suppliers
and selecting packaging
materials.”
Vice president, ecommerce, consumer
goods company
“ESR is central to our
product and service
differentiation. We have
even calculated our
footprint reduction from
number of servers avoided
through this program.”
CTO, real estate and hospitality group
Respondent Voices
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24 / Realising Digital’s Full Potential in the Value Chain
Several companies told us that environmental concerns and sustainability goals are
becoming indirect or direct drivers of their digital initiatives. Customers increasingly will
demand sustainably sourced and developed goods. Organisations with digitised value
chains will have the flexibility required to meet these new challenges. Here is where to
prepare:
❙ Real-time data flows will be critical to thriving in the circular economy.
Sustainable solutions and products will be driven by insights about using energy and
other resources more efficiently, designing components for reuse and repurposing
waste. Environmental sensors and IoT, smart grids and AI all are poised to take
important roles in organisations’ sustainability efforts.
❙ Customer sentiment insights will be more important than ever. Responsible
sourcing and environmental protections will increase the cost of goods and services.
Some customers undoubtedly are willing to pay premiums for sustainable offerings.
Others may resist. As green competitors emerge, organisations will need to
understand their customers’ specific journeys and what costs their markets will bear. In
our recent sustainability research, a majority of respondents told us they expect their
sustainability investments will increase sales and improve brand reputation.
❙ Digital must go deeper and more broadly into the value chain for companies
to deliver sustainability-driven innovation. Constraints created by climate change
and consumer pressure to reduce waste and use sustainable materials and processes
will demand businesses find new and creative ways to use their resources. Data, AI
and analytics, along with Agile methods and human-centered design, will need to be
present throughout the value chain, informing all processes.
25. 25 / Realising Digital’s Full Potential in the Value Chain Back to Contents
Realising digital’s full potential will deliver
lasting value
The challenges of making digital work to its full potential across the value
chain are considerable. Yet this work can reshape not just a company’s
bottom line but also the impact it makes on the environment and natural
resources. Businesses that expand their digital visions to reimagine how
they deliver experiences, products and services will see greater immediate
returns on digital as well as have a powerful, yet flexible foundation for
meeting emerging challenges and opportunities.
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26 / Realising Digital’s Full Potential in the Value Chain
Marc Pfister
Consulting Lead for Retail, Consumer Goods Manufacturing, Switzerland, Cognizant
Marc Pfister is the consulting partner for retail and consumer goods in Switzerland, focusing on
technology and business strategy, transformation and change management, helping clients realise
their potential through digital transformation. His consulting experience includes product strategy,
digital portfolio definition, programme recovery, operating model design and implementation,
organisation design, change management and leadership development. Prior to Cognizant, Marc
worked for the Swiss Federal Office of Information Technology, Hay Group, Accenture and Siemens,
and has worked in the UK, India and all over Europe. Marc can be reached at Marc.Pfister@cognizant.com
| www.linkedin.com/in/marc-pfister-6a68831/.
Alexander Broj
Head of Consulting, DACH, Cognizant
Alexander Broj leads the market consulting team in Germany, Austria and Switzerland (DACH). He
serves clients in the manufacturing, consumer goods and retail industries and help them to build
modern business and technology architectures that generate business value. Prior to Cognizant, Alex
was a partner at PwC and BearingPoint as well as an executive in IBM’s Global Business Services. He
received a diploma in computer science at the Technical University at Darmstadt. Alex can be reached
at Alexander.Broj@cognizant.com | www.linkedin.com/in/alexanderbroj/.
About the authors
Acknowledgements
The authors would like to thank Chittaranjan Dash, Dijk Doron, Anja Fischer,Julien Jeanneret, Thomas Kramer, Laura
McLean, Ankit Pande and Arvind Pal Singh — Cognizant client partners and research participants — for their time and
contributions to this ebook.