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So You Think You Need A Digital Strategy
The document outlines the essential elements and considerations of developing a digital strategy for organizations, emphasizing the importance of understanding both internal and external expectations. It highlights the need for a strategic approach that incorporates technology while managing relationships and interactions with various stakeholders. Additionally, it warns against unrealistic digital expectations and stresses the necessity of addressing operational silos to enhance efficiency and effectiveness in digital initiatives.
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So You Think You Need A Digital Strategy
- 1. So You ThinkYou Need A Digital Strategy Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney
- 2. I Want ADigital Strategy … And It Must Include The Internet of Things … … And Big Data … … And It Must Be Agile … What About Cloud? Bingo … And Innovative… January 21, 2016 2
- 3. Be Careful OfThe Bumpy Ride On The Hypecycle • Just because consultants and vendors are all talking about digital does not mean you should rush recklessly into it January 21, 2016 3
- 4. Some Meaningless SlideAbout Classical Greek Military Terms • Originally strategy meant generalship • Tactics meant the organisation of military forces • Strategoi (generals) could be punished, exiled or even executed for failure to use initiative, even if they succeeded in battle, by soldiers or the assembly • How many digital strategists face a similar fate? • How many Chief Marketing Officers and consultants are made drink hemlock if their digital strategy fails? January 21, 2016 4
- 5. General Aspects OfA Strategy Definition/ Diagnosis Governing Policies and Principles Action Plans January 21, 2016 5 Define the circumstances of the issue that give rise to the need for a strategy Detail the core objectives of the strategy to address the circumstances Expand into a series of co-ordinated and integration actions to achieve the core objectives What Success Looks Like And How You Intend To Achieve It
- 6. Digital Strategy • Digitalstrategy is a statement about the organisation’s digital positioning, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion January 21, 2016 6
- 7. Not All AboutDigital • Business priorities − Keep the business running − Improve customer service − Reduce costs − Increase productivity and efficiency − Increase revenue − Develop new and enhance existing products and services − Find new business opportunities • An effective and balanced approach to digital can assist with delivering on business priorities • Remember that technology generally accelerates existing business momentum rather than being the originator of momentum • Digital is not a panacea January 21, 2016 7
- 8. Digital Has Becomea Catch-All Term For … January 21, 2016 8 Enhanced and extended web presence, digital brand awareness and development Customer portal, greater customer intimacy, greater geographic reach Multi-media and enterprise content management Greater web- based transactional functionalityEnabling operational efficiencies and cost reductions Greater enablement of non-PC web access such as mobile technologies Multi-channel information access Customer self service, greater automation of web interactions Collection and analysis of web interaction data Greater use of and integration with social media platforms Direct sales, ecommerce, ebusiness Mobile selling, B2B, B2C, M2M
- 9. Unrealistic Digital ExpectationsHave Become A Bit Of An Elephant In The Room January 21, 2016 9
- 10. First Things First •Know what you mean by digital and have a common understanding to avoid confusion • Enables business expectations to be understood and managed January 21, 2016 10
- 11. Digital In Businessand IT Context • Any digital initiatives sit within an overall business and IT context and their multiple balancing acts between: January 21, 2016 11 Control Freedom Reduce Cost Deliver More Security Openness Delivery Strategy Efficiency Responsiveness Standardisation Customisation Focus On Overall Organisation Focus On Individual Business Units Predictability Agility
- 12. Business and ITBalancing Act January 21, 2016 12
- 13. Organisation Business Landscape January21, 2016 13 Organisation Business Customer Contractor Outsourcer Regulator Partner Dealer Agent FranchiseeRepresentative Sub-Contractor Intermediary Client Distributor Researcher Shareholder Collaborator Counterparty Retail Customer Service ProviderCompetitor Supplier Public
- 14. Organisation Business Landscape •Organisations typically operate in a complex environment with multiple interactions with different communication with many parties of many different type over different channels − External Actors - xActors • Digital is concerned with new ways of interacting with some or all of these xActors • Digital is not just about customer interactions, though this may be its main focus January 21, 2016 14
- 15. Organisation Business Landscape Business Customer Retail Customer Shareholder Shareholder PartnerDealer Outsourcer Competitor Supplier Regulator Contractor Service Provider Distributor Intermediary Collaborator Sub-Contractor Franchisee Counterparty Intermediary Representative Agent Researcher Client Public January 21, 2016 15
- 16. Organisation Business Landscape •Not xActors the organisation interacts with have equal importance or of equal value • Each xActor and communications channel has different characteristics: − “Distance” from the core of the organisation – composite measure of value and importance to the organisation − Volume of interactions − Complexity of interactions − Type of interaction – informational or transactional • Every organisation will have a different xActor and distance profile • Follow the value January 21, 2016 16
- 17. xActor Data Models •Build logical data model for each external party to link possible requirements to required capabilities and associated processes • Will be different for each organisation • Enable identification of current and future interactions, the impact and data requirements • Enable effective decisions on costs and benefits of digital January 21, 2016 17
- 18. xActor Data Models– Sample For Energy Utility Post-Pay Customer January 21, 2016 18
- 19. Depth And BreadthOf Implementation And Operation Of Digital Strategy Customer Service Provider Partner Regulator Agent … January 21, 2016 19 Number Of Processes Automated CollaborationsImplemented
- 20. Digital Strategy AndBusiness Processes • A key aspect of implementing a digital strategy is the extension of internal processes to specific parties over specific channels outside the organisations • This extension will be phased based on standard delivery criteria: − Cost − Resource − Amount of change the organisation can absorb January 21, 2016 20
- 21. Extended Dimensions OfDigital Strategy January 21, 2016 21 External Parties Participating in Digital Interaction/ Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy Channels Included in Digital Strategy
- 22. Dimensions Of DigitalStrategy • External Parties Participating in Digital Interaction/ Collaboration – who of the many parties in your organisation landscape do you interact with digitally • Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy – which types of interactions and associated business processes do you digitally implement • Channels Included in Digital Strategy – what digital channels do you interact over January 21, 2016 22
- 23. Dimensions Of DigitalStrategy • You cannot realistically achieve work across all dimensions • The change, cost, risk, resources and time required to implement digital across combinations is too great A - External Parties Participating in Digital Interaction/ Collaboration B - Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy C - Channels Included in Digital Strategy A x B x C • Is just too large a number • You need to prioritise implementation based on factors such as value • You need to be realistic about what can be achieved • You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work January 21, 2016 23
- 24. Dimensions Of ImplementationOf Digital Strategy January 21, 2016 24 Phase 1 Phase 2 Phase 3 External Parties Participating in Digital Interaction/ Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy Channels Included in Digital Strategy
- 25. Digital Initiative xActorDelivery Radar • Mapping the planned and phased depth and breadth of digital interactions with xActors relevant to the organisation January 21, 2016 25
- 26. Organisation Operational Silos January21, 2016 26
- 27. Operational Silos • Thereare too many operational units that operate independently with walls effectively between them • There is too much lobbing of work over the walls between operational units with no cross-functional/cross-capability, end-to-end view and no seamless operation • When you extend business processes outside the organisation, you need to ensure cross-functional/cross- capability operation • External parties are not concerned with process limitations caused by a siloed organisation not operating efficiently • Lack of seamless operation of business processes not evident (to a lesser or greater extent) to the outside world January 21, 2016 27
- 28. Digital Strategy AndBusiness Processes January 21, 2016 28 Business Processes Within The Organisation Digital Means Extending and Exposing Business Processes Outside the Organisation – The Organisation Is being Opened-Up
- 29. Extending The Organisation’sBoundaries January 21, 2016 29 Business Processes Within The Organisation How Far to Push the Boundary and How Porous Should the Boundary Be?
- 30. Digital Creates UserExpectations • Understand, manage, control and deliver on the expectations January 21, 2016 30 • Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties
- 31. Digital User Expectations January21, 2016 31 First time problem resolution or response to request Support is available whenever it is needed All information is accurate and available online all the time Products and services can be ordered and their delivery tracked Access is available from anywhere at any time Proactive notifications Range of channels and functions affects decision to do business Demand multi-channel experience Simple, consistent, easy to use Provide advice and assistance Loyalty and rewards Immediate access and response
- 32. Be Careful TheseUser Expectations Do Not Explode In Your Face January 21, 2016 32 First time problem resolution or response to request Support is available whenever it is needed All information is accurate and available online all the time Products and services can be ordered and their delivery tracked Access is available from anywhere at any time Proactive notifications Range of channels and functions affects decision to do business Demand multi-channel experience Simple, consistent, easy to use Provide advice and assistance Loyalty and rewards Immediate access and response
- 33. Expectations Of Digital •Don’t let your digital strategy be crushed by the weight of internal and external expectations January 21, 2016 33 User Expectations Business Expectations
- 34. Digital Strategy isAll About Connectivity And Integration January 21, 2016 34 Connectivity Between External Parties and the Organisation Connectivity Between Business Functions Connectivity Between Applications and Data
- 35. Digital Enablement TechnologyIceberg January 21, 2016 35 In Order to Extend and Expose Capabilities and Business Processes Outside the Organisation … … You Will Need a Substantial Amount of Enabling Technology, Systems, Resources and Supporting Processes and Organisation Change Successful Digital Operations Require Investment and Commitment
- 36. Digital Strategy AndBusiness Processes • Extending and exposing existing possibly siloed and functionally not integrated business processes outside the organisation may uncover problems with their operation • Digital interactions with third parties gives rise to expectations of: − Velocity − Responsiveness − Accuracy − Completeness • Digital will make weaknesses in business processes and underlying technology very evident very quickly • Failure to deliver expectations will affect the success of the digital strategy January 21, 2016 36
- 37. Operational Silos –Breaking Through The Walls To Enable Cross-Functional/Cross-Capability Working January 21, 2016 37
- 38. Digital Strategy AndBusiness Processes • You need to break through the organisation barriers preventing cross-functional/cross-capability business process operation as a pre-requisite for successful and efficient digital implementation and operation January 21, 2016 38
- 39. General Aspects OfA Digital Strategy Definition/ Diagnosis Governing Policies and Principles Action Plans January 21, 2016 39 Define the circumstances of the issue that give rise to the need for a strategy Detail the core objectives of the strategy to address the circumstances Expand into a series of co-ordinated and integration actions to achieve the core objectives Why are we doing it? What gives rise to the need for a digital strategy? What problems are we trying to solve? What challenges are we trying to address? What constraints are we looking to remove? What are our objectives? Who are we looking to connect with digitally and how? What is our long-term digital strategy? How will be communicate our strategy? What type of connections are we looking to implement? How will we measure the achievement of the objectives? How will the implementation be phased? What is the schedule for implementation – which parties, what types of interaction over what channels? What are the technology, system, resource and organisation pre-requisites to achieving success? What are the risks and dependencies? How can this work be formulated into a realistic and achievable plan? What Success Looks Like And How You Intend To Achieve It
- 40. Fallacies Of DistributedComputing Digital January 21, 2016 40 • Fallacies of distributed computing are assumptions made by developers of distributed applications identified by Peter Deutsch at Sun Microsystems • Assumptions are false and the consequences of making them include some or all of system failure, increased costs, project delays, reduction in scope or substantial redesign and rework • Fallacies apply equally to digital initiatives • Don’t relearn forgotten lessons the hard way Fallacy In the Digital World 1.The network is reliable The external network is outside your control. It is inherently unreliable. It has uncertain performance 2.Latency is zero Latency is pervasive 3.Bandwidth is infinite Assumptions about bandwidth lead to network-intensive applications that lead to poor and erratic performance 4.The network is secure No it is not. Lack of concern about widespread security threats will leads to weaknesses 5.Topology doesn't change It changes all the time and no one tells you 6.There is one administrator There are many administrators and they are not all under your control. In some cases no one is in control 7.Transport cost is zero Network bandwidth can have significant costs 8.The network is homogeneous The digital network is mixed, much of it is outside your control and there are many pinch points
- 41. Objectives Of DigitalStrategy January 21, 2016 41 Digital Strategy Objectives Relationships And Information Commerce And Transactions Content and Management Marketing and Communications Efficiency Brand Innovation Profit Achieved By Technology Processes People
- 42. Objectives Of DigitalStrategy • The objectives of a digital strategy are: − Relationships And Information – manage and maintain relationships with existing external parties, provide external parties access to information on accounts and transactions including analysis and reporting, provide personalised experience, have a consistent message across all channels − Commerce And Transactions – enable external parties transact online – pay bills, order and buy products and services in new ways − Content and Management – provide external parties with current, relevant, quality, meaningful content with easy access to maintain external party conversation − Marketing and Communications – provide external parties with personalised and customised information and offers on new products and services based on an intelligent analysis of their likelihood to avail of the offer − Efficiency – make existing business processes more efficient, remove siloed operation, implement cross-functional/cross-capability processes that mirror external party interactions and transactions − Brand – articulate the organisation brand more effectively − Innovation – make products and services better, develop new products and services − Profit – make more money and/or reduce cost • These objectives and outcomes of a digital strategy are actualised by technology, processes and people January 21, 2016 42
- 43. Digital Strategy –Some Questions • What parts of the business make the most margin? • What parts of the business give rise to the greatest costs? • What return are existing digital investments currently providing? • How can digital investment increase revenue, increase margin and/or decrease costs? • What reducible friction do our collaborators hate? • What is possible to realistically envision and achieve in 1-2 years? January 21, 2016 43
- 44. Digital Strategy MustFit With Organisation Brand Strategy And Not The Other Way Around January 21, 2016 44 Core Brand Strategy Digital Brand Strategy Digital Channels and Media Technology, Processes, People
- 45. Elements Of Brand •Targeted – being appropriate to the market and product set • Clear – delivering an instantly comprehensible message • Desirable – something customers want to have or to be part of • Unique – differentiated standing out in the crowd • Meaningful – matching customers’ expectations • Consistent – across all aspects of the company • Recognisable – clear, easily identified, repeatable • Actionable – can be leveraged and supported • Extensible – supports new products and partners • Digital must support and enhance this January 21, 2016 45
- 46. Beware Of DigitalFor Its Own Sake • A potential false promise of a digital strategy is that content will magically turn into revenue without effort • The reality is that views does not equal customers • The digital strategy has to produce revenue from all the content and functionality • Need to concentrate resources on the greatest opportunities to increase revenue and margin and achieve a sustainable competitive advantage January 21, 2016 46
- 47. Beware Of TheIllusion of Outcomes • Outcomes cannot be managed, only influenced • Outcomes include: − Sales − Sales conversion rate − Revenue − Profit − Cashflow • Outcomes can only be influenced through activities: − Improved customer satisfaction − More sales activity − Greater value for money • Focussing on digital-enabled cross-functional processes is a key way to influence outcomes and deliver value • But digital might generate a lot of activities that do not generate outcomes January 21, 2016 47
- 48. January 21, 201648 Illusion Of Attempting To Manage Outcomes Sell More Products/ Services and More Profitably Generate More Profit Identify the Right Customers Fulfil Orders Correctly and Satisfactorily Manage Customer Relationships Be Easy to Do Business With Be an Organisation Customers Want to Do Business With Generate and Maintain High Customer Satisfaction Develop and Sell the Right Product at the Right Price Digital Activities Outcomes You cannot force customers to buy more products and services … … But you can make it easier for customers to do so with an appropriate digital strategy
- 49. Key Digital DesignAnd Operating Principles • Flexible and adaptable for addition of new features quickly • Short development cycle for new features • Ease of static content generation and maintenance with federated and devolved approach - COPE (Create Once and Publish Everywhere) • Focus on content and value-added information and function for positive customer experience – content and usefulness drives usage • All information available online • All transactions available online • Flexible and adaptable for addition of new features quickly • Short development cycle for new features • Measure everything • Integrated messaging across all channels • Recognise the offline customers • Digital is not a project – it is an ongoing organisation-wide activity • Digital is not easy – it is hard January 21, 2016 49
- 50. Security And Privacy •Implementation of digital strategy needs to have external party security and privacy as a fundamental design and operating principle • Privacy and security represent a trade-off • More security means greater cost and greater inconvenience for external parties − Need to balance costs and inconvenience • Different views on the: − Perceived risk of a security breach − Relative weight/importance of privacy • Steps to implement external party privacy and security − Analyse security risks − Analyse security requirements and trade-offs − Develop a security plan − Define a security policy − Develop procedures for applying security policies − Implement the technical strategy and security procedures − Test the security and update it if any problems are found − Maintain security January 21, 2016 50
- 51. Scope of DigitalStrategy January 21, 2016 51 Digital Vision, Strategy and Culture User Experience Content and Process Technology Platforms Data, Services and Operational Systems
- 52. Digital Overlap WithCustomer Experience Strategy January 21, 2016 52 Digital Strategy Digital Customer Strategy Customer Experience Strategy Digital Technical Strategy Digital Operations StrategyBusiness Strategy Tools And Systems Processes People
- 53. Customer Experience • Digitalis largely about third-party/customer experience • Third-party/ customer experience needs to be at the heart of digital programme • Management cite limitations from inflexible technology, siloed organisations, and insufficient investments as the biggest obstacles to delivering the best possible customer experience January 21, 2016 53 Stated Obstacle % Identified Limitations of inflexible technology and application infrastructure 29% Difficulty regularly tracking performance measures and customer feedback 24% Don't have a consolidated, accurate, 360-degree customer view across all touch points 23% Siloed systems that prevent us from easily sharing information or supporting continuous processes across touch points 18% Siloed organisations/ conflicting key performance indicators (KPIs)/incentives between different channels/ business units 27% Lack of money allocated to customer experience initiatives 27%
- 54. Customer Experience SurveyResults • Oracle surveyed more than 1,300 senior executives across 18 countries in North America, Latin America, Europe, and Asia Pacific to assess: − The financial impact of the customer experience − The challenges businesses face delivering great customer experiences − The types of programs and initiatives that have been most effective in delivering results − Where businesses are investing to improve the customer experience • An independent market research firm – worked on behalf of Oracle to conduct online interviews with 1,342 global senior executives from a wide variety of industries in August and September of 2012 January 21, 2016 54
- 55. Europe Customer PortalSurvey Key Findings January 21, 2016 55 Average potential annual revenue lost as a result of not offering a positive, consistent, and brand-relevant customer experience Formalised Customer Experience Program: Are still assessing or planning with no active implementations Have one or more active implementations 36% 42% Biggest Obstacles: Lack of money (31%)#1 Siloed organisations (25%)#2 #3 15% In the next two years, European companies will invest in: 28% Integrated customer view across all channels 27% Business and customer analytics solutions 26% Loyalty management system Most Successful Customer Experience Projects: 31% Implementing a technology to improve customer service 28% Building a training program/incentives for employees 27% Implementing an SLA with any customer contact Average planned increase on customer experience technology spending in the next two years Difficulty tracking performance/customer feedback (24%) Consider their CX initiative advanced20% 18% 18%
- 56. The Perception Chasm- Businesses and Customers Are Worlds Apart January 21, 2016 56 49% 89%But … 44% 86%While… of executives believe customers will switch brands due to poor customer experience of customers say they have switched because of poor customer experience of executives believe customers are willing to pay for great customer experience of customers say they are already doing so Business executives underestimate the importance of the customer experience on customer behavior Executives Underestimate The Risk and Opportunity
- 57. Digital Operational TechnologyLayers January 21, 2016 57 Customer Access and Interaction Content Aggregation and Management Extensions to Existing Systems/Data Integration Operational Systems Analytic Systems
- 58. Operational/Technology Component Layers January21, 2016 58 Layer Function Customer Access and Interaction Presents information and functionality to external parties of agreed types across agreed channels and access mechanisms Content Aggregation and Management Provisions and manages static and dynamic information to external parties Implements COPE (Create Once and Publish Everywhere) Extensions to Existing Systems/Service and Data Integration Provides direct access to core data and functions of operational systems Operational Systems Existing (and possibly new) business systems Analytic Systems Provides data analytics and campaign management facilities
- 59. Indicative View OfThe Operational/Technology Components And Interfaces To Realise A Digital Strategy January 21, 2016 59 External Party-Facing Web Accessible Applications Social Media Platforms Process, Service and Data Integration Core System Interfaces Core Transaction Processing System(s) Other Operational System(s) Content Management System Master Data Management Campaign Management xRM
- 60. Indicative View OfThe Operational/Technology Components And Interfaces To Realise A Digital Strategy • Initial architecture of the overall technology solution to implement the digital strategy − Provides a basis for solution design − Know what needs to be done − Makes the strategy implementable − Breaks it down into achievable chunks of work – “eat the elephant” (in the room) • Architecture needs to be validated, enhanced and modified if necessary by detailed design phase • Business case is for analysis and design exercise to produce detailed solution architecture and implementation plan − Review available commercial products and tools available − Validate costs and benefits January 21, 2016 60
- 61. Operational/Technology Layers AndTheir Components January 21, 2016 61 Customer Access and Interaction Content Aggregation and Management Extensions to Existing Systems/Data Integration Operational Systems Analytic Systems External Party-Facing Web Accessible Applications Social Media Platforms Process, Service and Data Integration Core System Interfaces Core Transaction Processing System(s) Other Operational System(s) Content Management System Master Data Management Campaign Management xRM
- 62. Measuring The ReturnOf A Move To Digital Benefits Available Increased Revenue Improved Sales Pricing Improvements Better Segmentation Faster and Cheaper Acquisition Increased Spend Product Groups/ Bundles Increased Return on Marketing Spend Campaign Granularity Increased Campaign Response Rate Improved Service Improved Client Satisfaction Client Loyalty/ Brand Affinity Client Tenure/ Retention Client Referrals Improved Operating Efficiency Reduced Operating Costs Call Optimisation Service Levels Capacity Reduce Marketing Costs Campaign Cost Product Catalog Size January 21, 2016 62
- 63. Measuring The ReturnOf A Move To Digital • Agree and implement a measurement framework and associated data collection and gauge success of digital initiatives January 21, 2016 63
- 64. Creating A DigitalImplementation Statement Of Direction • Creating a well-defined statement of direction for a digital investment involves: − Defining vision and guiding values for digital exploitation − Define a business strategy that incorporates the use of digital to achieve business results − Defining a digital functionality roadmap/high-level schedule − Describing a digital reference architecture − Assessing organisation readiness for digital − Identifying the skills gaps that need to be filled − Managing internal and external expectations − Producing a business case that draws this information together with identified and quantified benefits January 21, 2016 64
- 65. Iterate Through DigitalInitiatives • Iterate through digital initiatives, starting small and focussed, learning from experience January 21, 2016 65
- 66. Digital Functionality DeliveryRoadmap • Defines, prioritises and creates an integrated schedule for the delivery of digital functions and related required enabling technologies for a agreed time frame − Need to agree the prioritisation process − Roadmap is always subject to constraints such as budget, resources − Dependencies can be identified and tracked − Capability roadmap can be grouped by business area or process group, external party or channel January 21, 2016 66
- 67. Digital Functionality DeliveryRoadmap Year 1 Q1 Year 1 Q2 Year 1 Q3 Year 1 Q4 Year 2 Q1 Year 2 Q2 Year 3 Q3 Year 3 Q4 Business Domain External Party Channel Channel Channel External Party Channel Channel Channel Business Domain External Party Channel Channel Channel External Party Channel Channel Channel Technology Dependencies Technology Initiative 1 Technology Initiative 2 Technology Initiative 3 January 21, 2016 67
- 68. Digital Reference Architecture •Digital Reference Architecture defines a template solution for the underlying and enabling technology solutions and components required • Reference Architecture defines the target end-state architecture and the set of interim transitional phases required to enable the delivery of the Digital Functionality Delivery Roadmap • Digital Reference Architecture exists within the context of the organisation’s Enterprise Architecture and other subsidiary architectures January 21, 2016 68
- 69. Digital Reference ArchitectureIn Context • Enterprise Architecture needs to be involved in the development of digital architecture • Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture January 21, 2016 69 Enterprise Architecture Information and Data Architecture Information Systems Architecture Solutions and Application Architecture Business Architecture Technology Architecture Digital Architecture Service and Integration Architecture Security Architecture
- 70. Digital Reference Architecture January21, 2016 70 External Party Interaction Zones, Channels and Facilities Security, Identity , Access and Profile Management Responsive Infrastructure Digital Specific Applications and Tools Internal Interaction Management Integration Operational and Business Systems Applications Delivery and Management Tools and Frameworks System Development, Deployment and Management
- 71. Digital Reference Architecture •External Party Interaction Zones, Channels and Facilities – the set of facilities and applications that are presented to those external parties being interacted with and the channels used • Security, Identity , Access and Profile Management – internal and external security tools and processes • Responsive Infrastructure – digital application deployment and operating infrastructure • Digital Specific Applications and Tools – the portfolio of specific tools acquired to deliver and operate digital functions • Internal Interaction Management – the set of internal applications that are used to manage external party interactions • Integration – the data, service and process integration layer and associated APIs • Applications Delivery and Management Tools and Frameworks – set of tools used to deliver and manage digital applications • System Development, Deployment and Management – the digital application development facility within the organisation • Operational and Business Systems – the existing organisation operational and business systems January 21, 2016 71
- 72. Digital Reference Architecture •The objectives of a digital (or any reference) architecture are: − Consistent, personalised and rich user experience across all channels − Reliable and resilience operation − Ease of management and administration − Integration of data and services from multiple sources − Ease of development and deployment of new services − Collection of usage information for analysis • This means: − Federated operation with support of multiple services − Ability to unify services for delivery − Standard and powerful approach to integration − Management and administration tools January 21, 2016 72
- 73. Digital Reference Architecture– Service Catalog • Services here mean functions/offers accessed by external parties • Consider a facility to author and manage functions/offers and enable access by defined set of external parties • Link services to xActor data models defined earlier January 21, 2016 73
- 74. Digital Reference ArchitectureIn Context • An enterprise digital strategy exists in a wider organisation and IT context − The organisation will have an overall IT strategy to accomplish the organisation strategy and associated objectives − The IT function will then need its own internal IT strategy that will structure the function in order to ensure that it can deliver on the wider organisation strategy − The enterprise digital strategy is connected to the overall IT strategy, the enterprise architecture and the internal IT strategy − The enterprise digital strategy will be implemented and operated through an digital architecture that is part of the overall enterprise architecture − This context is important in ensuring that the enterprise digital strategy fits into the overall IT and wider organisational structure − The enterprise digital strategy exists to ultimately deliver a business benefit and contribute to the achievement of the business strategy − The strategy must be translated into an operational framework to enable the strategy to be actualised January 21, 2016 74
- 75. Business Objectives Business Operational Model Enterprise Architecture Solution Implementation and Delivery Management And Operations Business Processes Required Operational Business Systems Business Strategy Systems Design/ Selection Business IT Strategy IT Function Strategy Digital Strategy Required Operational Processes Required Support Business Systems Systems Design/ Selection DigitalIT Architecture Digital Strategy In Business And IT Context January 21, 2016 75
- 76. Organisation Readiness ForDigital • Like all major organisation transformation programmes implementing digital initiatives will change the organisation − Cross-functional and business process changes − Technology delivery changes • The organisation must be ready for digital in three ways: − Be able to deliver digital initiatives that comprise the strategy − Be able to change itself to enable the implementation and operation of digital initiatives − Be able to operate digital initiatives • Need to assess the current state of the organisation, its readiness for digital and what is needed to achieve the desired state of readiness January 21, 2016 76
- 77. Organisation Readiness ForDigital – Assessment Framework January 21, 2016 77 Organisation Readiness For Digital Digital Programme Delivery and Execution Digital Management and Governance Delivery Approach, Methodologies and Processes Delivery Team Roles Delivery Organisation Structure and Change Management Delivery Transfer to Production Operations Digital Operations Operations Management and Governance Operations Business Process Use and Management Operations Team Roles Operations Organisation Structure and Change Management Operations Service Delivery and Management = = = = =
- 78. Route To Digital January21, 2016 78 Digital Transition And Transformation Digital Architecture And IT Strategy Digital Execution, Delivery and Operations Vision and Guiding Values for Digital Exploitation Business Strategy Organisation Readiness For Digital Digital Architecture Digital Capability Delivery Roadmap Digital Solutions Supporting Solutions Measurement and Reassessment Measurement Framework Digital and IT Strategy
- 79. Digital Organisation CapabilitiesOrganisational Capabilitiesfor Digital Strategy, Culture, Change and Governance Digital Strategy Development Digital (and Other) Solution Governance Organisation Change for Digital Process Management Digital Architecture External Party Interaction Zones, Channels and Facilities Personalisation Content Management Security, Identity , Access and Profile Management Responsive Infrastructure Digital Specific Applications and Tools Internal Interaction Management Integration Operational and Business Systems Applications Delivery and Management Tools and Frameworks System Development, Deployment and Management Digital Solution Delivery Programme Management Portfolio Project Management Business Analysis and Engagement Tool Selection and Delivery Solution Architecture Solution Delivery Digital Operation Service Delivery and Management Service Analytics Organisation Management Capacity Planning Customer Experience Research and Analysis Marketing and Advertising Design Usability Customer Journey Management Analytics and Insight Single View of the Customer Analysis and Reporting Data Collection and Management Customer Segmentation and Insight Digital Technology Foundation and Infrastructure Infrastructure Security Integration Enterprise Architecture Service Delivery and Management January 21, 2016 79
- 80. Digital Organisation Capabilities •What the organisation needs to be good at in order to develop and deliver on a digital strategy − There is substantial overlap between these skills and those of other programme delivery • Framework to measure where you are and where you need to be • Develop framework in relation to the digital strategy and what you intend to achieve • Use to develop plan to address gaps January 21, 2016 80
- 81. Digital Organisation CapabilitiesOrganisational Capabilitiesfor Digital Strategy, Culture, Change and Governance Digital Strategy Development Digital (and Other) Solution Governance Organisation Change for Digital Process Management Digital Architecture External Party Interaction Zones, Channels and Facilities Personalisation Content Management Security, Identity , Access and Profile Management Responsive Infrastructure Digital Specific Applications and Tools Internal Interaction Management Integration Operational and Business Systems Applications Delivery and Management Tools and Frameworks System Development, Deployment and Management Digital Solution Delivery Programme Management Portfolio Project Management Business Analysis and Engagement Tool Selection and Delivery Solution Architecture Solution Delivery Digital Operation Service Delivery and Management Service Analytics Organisation Management Capacity Planning Customer Experience Research and Analysis Marketing and Advertising Design Usability Customer Journey Management Analytics and Insight Single View of the Customer Analysis and Reporting Data Collection and Management Customer Segmentation and Insight Digital Technology Foundation and Infrastructure Infrastructure Security Integration Enterprise Architecture Service Delivery and Management January 21, 2016 81
- 82. Bringing It AllTogether January 21, 2016 82 Dimensions of Digital Strategy Digital Organisation Capabilities Objectives of Digital Strategy Measuring The Return Of A Move To Digital Operational Layers and Components Route to Digital
- 83. Bringing It AllTogether • Use the different facets of digital analysis and impact assessment described here to generate a comprehensive and realistic understanding of what digital means, what a move to digital involves, requires and what it will deliver January 21, 2016 83
- 84. Reduce The RiskOf Your Dive Into Digital January 21, 2016 84
- 85. Summary • Remember thattechnology generally accelerates existing business momentum rather than being the originator of momentum • Digital is not a panacea • Know what you mean by digital and have a common understanding to avoid confusion • You need to be realistic about what can be achieved • Follow the value • You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work • Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture • Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties • Don’t let your digital strategy be crushed by the weight of internal and external expectations • Digital interactions with third parties gives rise to expectations • Digital will make weaknesses in business processes and underlying technology very evident very quickly • Iterate through digital initiatives, starting small and focussed, learning from experience January 21, 2016 85