The document discusses seven traits of successful digital enterprises as identified by studying dozens of digital transformation successes. The seven traits are: 1) being unreasonably aspirational, 2) acquiring capabilities, 3) "ring fencing" and cultivating digital talent, 4) challenging everything, 5) being quick and data-driven, 6) following the money by focusing investments on areas that create the most value, and 7) being obsessed with improving the customer experience. The document provides examples for each trait and argues that to truly transform digitally, companies must excel at all seven traits.
The Robot and I: How New Digital Technologies Are Making Smart People and Bus...Cognizant
Our latest study shows that when enterprise robots are applied to automating core business processes, they can extend the creative problem-solving capabilities and productivity of human beings and deliver superior business results.
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 Robot and I: How New Digital Technologies Are Making Smart People and Bus...Cognizant
Our latest study shows that when enterprise robots are applied to automating core business processes, they can extend the creative problem-solving capabilities and productivity of human beings and deliver superior business results.
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.
A look at what's needed to build digital ecosystems which go beyond building basic user needs into building the brand through distinctiveness and creativity
The New Delivery Reality: Achieving High Performance in the Post And Parcel I...accenture
Powerful digital trends continue to reinvent the post and parcel industry. Technology-driven innovations redefine products, realign customer expectations and reshape the competitive landscape. As retail shifts toward digital, post and parcel organizations are reengineering their core businesses to meet the new reality of rapidly growing B2C parcel delivery.
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleCognizant
Full IoT value cannot be realized by connecting a few devices. Organizations need to get beyond instrumentation, and focus on the impact these technologies can have on their business strategies, which will require leadership, vision and partnership.
The State (and Future) of Digital Marketplaces by Brian SolisBrian Solis
The rise of digital marketplaces is an overnight success more than twenty years in the making. Today, their potential for growth and diversity is outpacing traditional e-commerce in every respect. Marketplaces are more than platforms for hosting sellers and attracting customers. Marketplaces as platforms are changing market dynamics and pushing sellers and service providers to rethink their mission, value propositions and overall experience.
Marketplaces will only continue to expand and diversify, introducing new retail and service experiences to sellers and buyers alike. As they do, marketplaces will open doors to new breeds of sellers and service providers, broaden customer choice for more varied product and service offerings, foster healthy competition and promote continuous innovation.
With their phenomenal growth, and the promising future of marketplaces and their role in shaping the future of retail, Kahuna and Altimeter set out to capture the state of digital marketplaces. We surveyed 100 executives and managers of mar- ketplaces across the US and across eight market segments. What we learned in this research, through a quantitative survey and third-party analysis, is that marketplac- es have been underappreciated in their role in reshaping retail and are set to define next generation experiences.
The goal of this report is to provide a lens into the rising marketplace segment to guide incumbent brands and inspire emergent marketplaces as they pave the way for the future of retail, services and customer experiences.
Using Digital Tactics in Retail to drive growth. Growth in Retail is going to come from the digital E-commerce sector. Here are some ways in which high street retailers can take advantage of this growth for their own business.
As many different products and environments get smarter, there are inevitable implications on how consumers find out about, research or purchase products.
In this SlideShare presentation, we have highlighted some of the most interesting trends related to digital commerce.
Commentary: Making Dollars & Sense of the Platform EconomyCognizant
As market dynamics change, organizations must figure out how and where to plug and play with emerging platforms that create economies of scale and new forms of value.
Unlock new Business Potential in the Offline World Through Wi-Fi & Bluetooth ...Anup Deshmukh
Retailers in stores need deep insight into consumer behaviour and foot traffic patterns to better engage shoppers and combat their drift toward shopping online. The exponential growth of smartphones, Wi-Fi & Bluetooth infrastructure offer an opportunity for retailers to capture this insight in the physical world, much as online retailers have been able to do for some time.
Driving growth in Indian manufacturing industry Sumit Roy
Indian manufacturing is just perfectly poised to Unlocking the transformation value with technology .While businesses understand that in order to build an organisation that is agile and suited to withstand current market and economic volatilities, there are several things to be considered before taking a digital leap. More than just a strategy for any individual technology trend or for combining more than one of them, companies need a systematic approach to adopt technologies in a holistic fashion. The industry trends and challenges primarily drive the appropriate selection of technology solutions, which need to be fine-tuned to a company’s needs based on its scale, capabilities and its specific issues. This joint CII-PwC report takes a closer look at two industries in particular, manufacturing and infrastructure, and tries to decode the prevalent challenges in these two sectors, the kind of initiatives being taken to drive growth and development, and how IT adoption is playing an important role to overcome these challenges
In our latest white paper, our expert authors share insights on why an integrated, real-time approach is key to business planning in the digital age. This special report is the great work of our supply chain experts, who are leading some of our firm’s most innovative thinking and solutions with top global clients.
Learn About:
The evolution of planning capabilities in the enterprise
Why an integrated business planning (IBP) framework should include end-to-end business processes across the organization
A view into the different maturity levels an organization can achieve and strategies for developing a digital-driven IBP framework
How companies can get started and accelerate their journey to advanced business planning
A look at what's needed to build digital ecosystems which go beyond building basic user needs into building the brand through distinctiveness and creativity
The New Delivery Reality: Achieving High Performance in the Post And Parcel I...accenture
Powerful digital trends continue to reinvent the post and parcel industry. Technology-driven innovations redefine products, realign customer expectations and reshape the competitive landscape. As retail shifts toward digital, post and parcel organizations are reengineering their core businesses to meet the new reality of rapidly growing B2C parcel delivery.
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleCognizant
Full IoT value cannot be realized by connecting a few devices. Organizations need to get beyond instrumentation, and focus on the impact these technologies can have on their business strategies, which will require leadership, vision and partnership.
The State (and Future) of Digital Marketplaces by Brian SolisBrian Solis
The rise of digital marketplaces is an overnight success more than twenty years in the making. Today, their potential for growth and diversity is outpacing traditional e-commerce in every respect. Marketplaces are more than platforms for hosting sellers and attracting customers. Marketplaces as platforms are changing market dynamics and pushing sellers and service providers to rethink their mission, value propositions and overall experience.
Marketplaces will only continue to expand and diversify, introducing new retail and service experiences to sellers and buyers alike. As they do, marketplaces will open doors to new breeds of sellers and service providers, broaden customer choice for more varied product and service offerings, foster healthy competition and promote continuous innovation.
With their phenomenal growth, and the promising future of marketplaces and their role in shaping the future of retail, Kahuna and Altimeter set out to capture the state of digital marketplaces. We surveyed 100 executives and managers of mar- ketplaces across the US and across eight market segments. What we learned in this research, through a quantitative survey and third-party analysis, is that marketplac- es have been underappreciated in their role in reshaping retail and are set to define next generation experiences.
The goal of this report is to provide a lens into the rising marketplace segment to guide incumbent brands and inspire emergent marketplaces as they pave the way for the future of retail, services and customer experiences.
Using Digital Tactics in Retail to drive growth. Growth in Retail is going to come from the digital E-commerce sector. Here are some ways in which high street retailers can take advantage of this growth for their own business.
As many different products and environments get smarter, there are inevitable implications on how consumers find out about, research or purchase products.
In this SlideShare presentation, we have highlighted some of the most interesting trends related to digital commerce.
Commentary: Making Dollars & Sense of the Platform EconomyCognizant
As market dynamics change, organizations must figure out how and where to plug and play with emerging platforms that create economies of scale and new forms of value.
Unlock new Business Potential in the Offline World Through Wi-Fi & Bluetooth ...Anup Deshmukh
Retailers in stores need deep insight into consumer behaviour and foot traffic patterns to better engage shoppers and combat their drift toward shopping online. The exponential growth of smartphones, Wi-Fi & Bluetooth infrastructure offer an opportunity for retailers to capture this insight in the physical world, much as online retailers have been able to do for some time.
Driving growth in Indian manufacturing industry Sumit Roy
Indian manufacturing is just perfectly poised to Unlocking the transformation value with technology .While businesses understand that in order to build an organisation that is agile and suited to withstand current market and economic volatilities, there are several things to be considered before taking a digital leap. More than just a strategy for any individual technology trend or for combining more than one of them, companies need a systematic approach to adopt technologies in a holistic fashion. The industry trends and challenges primarily drive the appropriate selection of technology solutions, which need to be fine-tuned to a company’s needs based on its scale, capabilities and its specific issues. This joint CII-PwC report takes a closer look at two industries in particular, manufacturing and infrastructure, and tries to decode the prevalent challenges in these two sectors, the kind of initiatives being taken to drive growth and development, and how IT adoption is playing an important role to overcome these challenges
In our latest white paper, our expert authors share insights on why an integrated, real-time approach is key to business planning in the digital age. This special report is the great work of our supply chain experts, who are leading some of our firm’s most innovative thinking and solutions with top global clients.
Learn About:
The evolution of planning capabilities in the enterprise
Why an integrated business planning (IBP) framework should include end-to-end business processes across the organization
A view into the different maturity levels an organization can achieve and strategies for developing a digital-driven IBP framework
How companies can get started and accelerate their journey to advanced business planning
Every day, men and women who have achieved great things both personally and professionally
and reached the very top of the ladder are being put out to pasture to rarely, if ever again,
use the significant gifts and talents that helped them for the first 50 or so years of their lives
Digital Transformation: A $1 Trillion Opportunity (Note: 2015 deck - somewhat...Ketan Kakkad
This is a 2015 deck - somewhat outdated but contextually still very relevant.
According to World Economic Forum, we are in the midst of 4th Industrial Revolution triggered by FUSION of technologies! Convergence of these Digital Technologies is already disrupting existing and well established business models! Please note that this deck has not been touched since early 2016 (uploading just now in mid-2017), so some aspects might be little bit outdated. I would love to hear your thoughts in comments, and do not hesitate if you wish to discuss specifics or engage in a deeper conversation on how we can help you shine through your Digital Journey.
In order to acknowledge companies that are working round the clock to make the retail industry a better place, Insights Success has enlisted, “The Companies with Most Disruptive Retail Solutions 2019”.
The rapidly shifting technology environment raises serious questions on how to help their companies capitalize on the transformation under way. Advancing technologies and their swift adoption are upending traditional business models. So, today we bring you Five Hottest Tech-Enabled Business Trends in 2017.
Digital technologies have deconstructed market structures that were once firmly established. Not only did they introduce new types of business models, but they also crippled the old ones - as is evidenced by several cases, such as those of Apple and Nokia, or Uber and traditional taxi businesses.
Today, every business faces the following 2 challenges, which digital technologies can help to tackle:
1. Bringing down costs to compete. Technologies have progressed fast: Cloud computing replaced proprietary data centers, and pocket mobile devices are now favored over cumbersome desktops. With the right technologies in place, businesses can scale up and perform more efficiently, ultimately cutting operational costs.
2. Building digital platforms to adapt to the changing competitive landscape. Customers and employees are the 2 drivers of changes: their demands have changed, which requires businesses to change accordingly to adapt. For example, customers expect intuitive online shopping experience, while employees ask for productive and engaging workplace experience. Businesses can meet these demands only if they leverage digital platforms.
This paper will examine the changing face of technologies, learn how digital platforms have inspired digital transformation, and discuss the architecture of a digital platform.
Reading this paper will give you a better idea of how technology has so far transformed the business landscape, what you need to do with your own digital transformation, and what to look for in 2020.
The goal of this white paper is to demonstrate why the only successful way to approach a major ecommerce project today is to pursue a rigorous "integration first" strategy, rather than relying on traditional procurement methods. Based on our experience helping hundreds of companies achieve their online commerce goals, we'll also provide you with practical, hands-on advice for managing your project and evaluating software using this approach.
Ghostery Enterprise - Defining The Marketing CloudGhostery, Inc.
You no longer have a website, you have a marketing cloud.
In 2004 you had a website. In 2014, you have a marketing cloud. You interact with your customers across various channels and device types, and rely on hundreds of vendor partners to do so. If you are like most enterprises, your marketing cloud is sub-optimally controlled. A poorly controlled cloud can cause you to send customers to competitors, dilute your customer data value, open security breaches, and slow down your site. Good cloud management ensures that you keep and grow your customer base, secure data, and improve site performance.
In this research series, we will be defining the marketing cloud and providing benchmark data and best practices for marketing cloud management. This is part one of the three part series.
Defining the Marketing Cloud
Benchmarking Your Marketing Cloud
Marketing Cloud Management: Best Practices
UNLOCK YOUR DIGITAL VALUE POTENTIAL - BOOZ DIGITAL AMSTERDAM 2013Femke-Anna van Zanten
Most players see digital as incremental instead of transformative. Digital is not just an add-on, and as such, incremental steps will not be enough. Re-imagining in a broader context is key. Learn here how to Re-imagine your business, and create Digital Value: new insights, frameworks and case examples.
With highly interactive online communities taking the world by storm at large, technology has made great strides in reshaping the world’s future. Here's a Point of View on how technology leaders within enterprises or vendors adapt and lead business change being caused by the Digital revolution
Automotive companies have started to respond to changing customer buying behavior by piloting new online business models. However, most current initiatives are still removed from what customers expect.
Human drivers have always been an essential requirement in the operation of a motor vehicle. At the same
time, research has repeatedly demonstrated that driver error plays a role in more than 90% of road crashes
(NHTSA 2008; Blanco et al. 2016). As such, in the past two decades, vehicle manufacturers have designed new
and increasingly sophisticated features that provide more assistance to drivers to help mitigate such errors. Such
features are an important precursor to the development of automated vehicles and, currently, expectations are
high that the advent of semi- or fully- automated vehicles will dramatically reduce road crashes
The race is on
Clearly, Canadian executives are feeling that the race is on; but it remains to be seen whether they act quickly enough and with the right focus to effectively transform and evolve. Among our findings:
75 percent of CEOs agree that the next three years will be more critical to their industry than the previous 50 years;
74 percent of CEOs believe their company will remain largely the same in the next 3 years;
98 percent are concerned about the loyalty of customers;
13 percent feel confident that they are fully prepared for a cyber-event.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
The 7 Traits of Successful Digital Businesses
1. To stay competitive, companies must stop experimenting
with digital and commit to transforming themselves into full
digital businesses. Here are seven traits that successful digital
enterprises share.
The age of experimentation with digital is over. In an often bleak landscape of slow
economic recovery, digital continues to show healthy growth. E-commerce is growing at double-
digit rates in the United States and most European countries, and it is booming across Asia.
To take advantage of this momentum, companies need to move beyond experiments with digital
and transform themselves into digital businesses. Yet many companies are stumbling as they try
to turn their digital agendas into new business and operating models. The reason, we believe,
is that digital transformation is uniquely challenging, touching every function and business
unit while also demanding the rapid development of new skills and investments that are very
different from business as usual. To succeed, management teams need to move beyond vague
statements of intent and focus on “hard wiring” digital into their organization’s structures,
processes, systems, and incentives.
There is no blueprint for success, but there are plenty of examples that offer insights into the
approaches and actions of a successful digital transformation. By studying dozens of these
successes—looking beyond the usual suspects—we discovered that effective digital enterprises
share these seven traits.
1. Be unreasonably aspirational
Leadership teams must be prepared to think quite differently about how a digital business operates.
Digital leaders set aspirations that, on the surface, seem unreasonable. Being “unreasonable” is a way
to jar an organization into seeing digital as a business that creates value, not as a channel that drives
activities. Some companies frame their targets by measures such as growth or market share through
digital channels. Others set targets for cost reduction based on the cost structures of new digital
competitors. Either way, if your targets aren’t making the majority of your company feel nervous,
you probably aren’t aiming high enough.
The seven traits of effective
digital enterprises
’Tunde Olanrewaju, Kate Smaje, and Paul Willmott
M A Y 2 0 1 4
2. 2
When Angela Ahrendts became CEO of Burberry, in 2006, she took over a stalling business whose
brand had become tarnished. But she saw what no one else could: that a high-end fashion retailer could
remake itself as a digital brand. Taking personal control of the digital agenda, she oversaw a series of
groundbreaking initiatives, including a website (ArtoftheTrench.com) that featured customers as
models, a more robust e-commerce catalog that matched the company’s in-store inventory, and the
digitization of retail stores through features such as radio-frequency identification tags. During
Ahrendts’s tenure, revenues tripled. (Apple hired Ahrendts last October to head its retail business.)
Netflix was another brand with an unreasonably aspirational vision. It had built a successful online
DVD rental business, but leadership saw that the future of the industry would be in video streaming,
not physical media. The management team saw how quickly broadband technology was evolving and
made a strategic bet that placed it at the forefront of a surge in real-time entertainment. As the
video-streaming market took off, Netflix quickly captured nearly a third of downstream video
traffic. By the end of 2013, Netflix had more than 40 million streaming subscribers.
2. Acquire capabilities
The skills required for digital transformation probably can’t be groomed entirely from within.
Leadership teams must be realistic about the collective ability of their existing workforce. Leading
companies frequently look to other industries to attract digital talent, because they understand
that emphasizing skills over experience when hiring new talent is vital to success, at least in the
early stages of transformation. The best people in digital product management or user-experience
design may not work in your industry. Hire them anyway.
3. Tesco, the UK grocery retailer, made three significant digital acquisitions over a two-year span:
blinkbox, a video-streaming service; We7, a digital music store; and Mobcast, an e-book platform.
The acquisitions enabled Tesco to quickly build up the skills it needed to move into digital media.
In the United States, Verizon followed a similar path with strategic acquisitions that immediately
bolstered its expertise in telematics (Hughes Telematics in 2012) and cloud services (CloudSwitch
in 2011), two markets that are growing at a rapid pace.
This “acqui-hire” approach is not the only option. But we have observed that significant lateral
hiring is required in the early stages of a transformation to create a pool of talent deep enough
to execute against an ambitious digital agenda and plant the seeds for a new culture.
3. ‘Ring fence’ and cultivate talent
A bank or retailer that acquires a five-person mobile-development firm and places it in the middle
of its existing web operations is more likely to lose the team than to assimilate it. Digital talent must
be nurtured differently, with its own working patterns, sandbox, and tools. After a few false starts,
Wal-Mart Stores learned that “ring fencing” its digital talent was the only way to ensure rapid
3
4. improvements. Four years ago, the retail giant’s online business was lagging. It was late to the
e-commerce market as executives protected their booming physical-retail business. When it did
step into the digital space, talent was disbursed throughout the business. Its $5 billion in online
sales in 2011 paled next to Amazon’s $48 billion.
In 2011, however, Wal-Mart established @WalmartLabs, an “idea incubator,” as part of its growing
e-commerce division in Silicon Valley—far removed from the company’s Bentonville, Arkansas,
headquarters. The group’s innovations, including a unified company-wide e-commerce platform,
helped Wal-Mart increase online revenues by 30 percent in 2013, outpacing Amazon’s rate of growth.
Wal-Mart took ring fencing to the extreme, turning its e-commerce business into a separate vertical
with its own profit and loss. This approach won’t work for every incumbent, and even when it does, it
is not necessarily a long-term solution. Thus Telefónica this year recombined with the core business
Telefónica Digital, a separate business unit created in 2011 to nurture and strengthen its portfolio of
digital initiatives. To deliver in an omnichannel world, where customers expect seamless integration
of digital and analog channels, seamless internal integration should be the end goal.
4
5. 4. Challenge everything
The leaders of incumbent companies must aggressively challenge the status quo rather than accepting
historical norms. Look at how everything is done, including the products and services you offer and
the market segments you address, and ask “Why?” Assume there is an unknown start-up asking the
exact same question as it plots to disrupt your business. It is no coincidence that many textbook cases
of companies redefining themselves come from Silicon Valley, the epicenter of digital disruption. Think
of Apple’s transformation from struggling computer maker into (among other things) the world’s
largest music retailer, or eBay’s transition from online bazaar to global e-commerce platform.
Digital leaders examine all aspects of their business—both customer-facing and back-office systems
and processes, up and down the supply chain—for digitally driven innovation. In 2007, car-rental
company Hertz started to deploy self-service kiosks similar to those used by airlines for flight check-in.
In 2011, it leapfrogged airlines by moving to dual-screen kiosks—one screen to select rental options via
touch screen, a second screen at eye level to communicate with a customer agent using real-time video.
We see digital leaders thinking expansively about partnerships to deliver new value-added
experiences and services. This can mean alliances that span industry sectors, such as the
Energy@home partnership among Electrolux, Enel, Indesit, and Telecom Italia to create a
communications platform for smart devices and domestic appliances.
5. Be quick and data driven
Rapid decision making is critical in a dynamic digital environment. Twelve-month product-release
cycles are a relic. Organizations need to move to a cycle of continuous delivery and improvement,
adopting methods such as agile development and “live beta,” supported by big data analytics, to
increase the pace of innovation. Continuous improvement requires continuous experimentation,
along with a process for quickly responding to bits of information.
Integrating data sources into a single system that is accessible to everyone in the organization will
improve the “clock speed” for innovation. P&G, for example, created a single analytics portal, called the
Decision Cockpit, which provides up-to-date sales data across brands, products, and regions to more
than 50,000 employees globally. The portal, which emphasizes projections over historical data, lets
teams quickly identify issues, such as declining market share, and take steps to address the problems.
U.S. Xpress, a US transportation company, collects data in real time from tens of thousands of sources,
including in-vehicle sensors and geospatial systems. Using Apache Hadoop, an open-source tool set for
data analysis, and real-time business-intelligence tools, U.S. Xpress has been able to extract game-
changing insights about its fleet operations. For example, looking at the fuel consumption of idling vehicles
led to changes that saved the company more than $20 million in fuel consumption in the first year alone.
5
6. 6. Follow the money
Many organizations focus their digital investments on customer-facing solutions. But they
can extract just as much value, if not more, from investing in back-office functions that drive
operational efficiencies. A digital transformation is more than just finding new revenue streams;
it’s also about creating value by reducing the costs of doing business.
Investments in digital should not be spread haphazardly across the organization under the halo
of experimentation. A variety of frequent testing is critical, but teams must quickly zero in on the
digital investments that create the most value—and then double down.
Often, great value is found in optimizing back-office functions. At Starbucks, one of the leaders in
customer-experience innovation, just 35 of 100 active IT projects in 2013 were focused on customer-
or partner-facing initiatives. One-third of these projects were devoted to improving efficiency and
productivity away from the retail stores, and one-third focused on improving resilience and security.
In manufacturing, P&G collaborated with the Los Alamos National Laboratory to create statistical
methods to streamline processes and increase uptime at its factories, saving more than $1 billion a year.
6