Digital leaders outperform peers in every industry through digital maturity. Digital maturity has two dimensions - digital intensity involving technology initiatives, and transformation management intensity involving vision, governance, and skills. Companies that are mature in both dimensions, called "Digirati", significantly outperform less digitally mature competitors in financial measures. While every industry can benefit from digital maturity, some like high tech, banking and retail already have higher levels, while others like manufacturing and utilities have more to progress. Companies that drive digital transformation through both investment and leadership capabilities reap substantial financial advantages.
The digital advantage How digital leaders outperform their peers in every ind...Nicola Barozzi 🚘✔
Digital leaders outperform their peers through higher digital maturity across two dimensions: digital intensity and transformation management intensity. Companies that are digitally mature in both areas, called "Digirati", significantly outperform competitors on financial measures like profitability, revenue generation, and market valuation. While all industries can benefit from digital transformation, some industries like high tech, banking and retail already exhibit higher digital maturity on average, while others like manufacturing, pharmaceuticals, and utilities tend to be less digitally mature currently. Companies in any industry can improve performance by developing their digital and transformation capabilities.
The document contains advance praise from numerous leaders in business, government, technology, and academia for the book "Digital Transformation" by Thomas Siebel. The praise highlights how the book explains the technologies of artificial intelligence, cloud computing, big data, and the internet of things that are driving massive changes in nations, industries, and corporations. Several of the endorsements emphasize that the book is an essential read for any leader seeking to understand and navigate the challenges and opportunities of digital transformation.
2015 acm po v building digital businesses in large companiesAnselm Magel
Large corporate Europe lacks any businesses that are digital natives. To avoid being marginalized by digital disruptors, traditional companies must embrace digital transformation. However, becoming digital requires more than just technological changes - it is a pervasive change to the business. For large corporations to both digitize existing models and develop new digital business lines requires comprehensive digital change management to develop digital versatility among the workforce and leadership.
Industry 4.0: from Factory to Smactory
It is August the 18th of 2014 when a German government official press ‘post’ on an update called: "Zukunftsprojekt Industrie 4.0”, not knowing that this Industry number will complete transform the way we traditionally did business. Where business transformation in prior times mostly affected individual entities of businesses, this transformation affects the whole business eco-system. The announcement, posted on the “Bundesministerium fur Bildung und Forschung ” or, in English, the:”Federal ministry of education and Research” quoted the following key message:
“The future project Industry 4.0 aims to enable the German industry in a position to be ready for the future of production. Industrial production will be characterized by strong personalization of products under the conditions of high flexibilised (high-volume) production, the extensive integration of customers and business partners in business and value creation processes and the coupling of production and quality services.”
Industry 4.0, where disruption meets the manufacturing industry
According the Cambridge Online Dictionary is revolution something that is: ‘a very important change in the way that people do things’ or ‘one complete circular movement of something’. That Industry 4.0 is a industrial revolution is an understatement. Industry 4.0 is a big disruption in the economy & the way we (will) do business in the future. Before deep dive directly into Industry 4.0 let us have a closer look to the road towards it...
What is digital transformation training interactive workshop belgrade serbiaMiodrag Kostic, CMC
Presentation from the "What is digital transformation?" workshop, interactive training course on how to digitally transform your organisation for Dare To Be Original conference in Belgrade Serbia?
http://www.businessknowledge.biz/
http://www.miodragkostic.com/
1) Fujitsu provides a digital business platform called MetaArc to help customers drive digital transformation through mobile, data analytics, IoT, and AI technologies in a scalable cloud environment.
2) Fujitsu focuses on delivering business and social outcomes through a portfolio of technologies and services including cloud, mobile, IoT, analytics, AI, security, and integrated computing.
3) Fujitsu's approach to digital transformation is called "Human Centric Innovation", which aims to empower people and improve quality of life through connecting infrastructure, creative intelligence derived from information, and the creativity of people.
This emerging tech research from CompTIA describes the growing role of artificial intelligence in the technology strategies that businesses are building.”
Workshop digital transformation strategy digital road-map trainingMiodrag Kostic, CMC
Miodrag Kostić is a certified digital transformation expert who has been helping companies digitally transform since 1995. This document outlines his experience founding online stores in the 1990s and digital consulting company in 1997. It then covers a workshop on digital transformation strategies, developing a digital roadmap for Mokrin house, and the Austrian Chamber of Commerce's process for digital consulting including trend analysis and priority setting.
The digital advantage How digital leaders outperform their peers in every ind...Nicola Barozzi 🚘✔
Digital leaders outperform their peers through higher digital maturity across two dimensions: digital intensity and transformation management intensity. Companies that are digitally mature in both areas, called "Digirati", significantly outperform competitors on financial measures like profitability, revenue generation, and market valuation. While all industries can benefit from digital transformation, some industries like high tech, banking and retail already exhibit higher digital maturity on average, while others like manufacturing, pharmaceuticals, and utilities tend to be less digitally mature currently. Companies in any industry can improve performance by developing their digital and transformation capabilities.
The document contains advance praise from numerous leaders in business, government, technology, and academia for the book "Digital Transformation" by Thomas Siebel. The praise highlights how the book explains the technologies of artificial intelligence, cloud computing, big data, and the internet of things that are driving massive changes in nations, industries, and corporations. Several of the endorsements emphasize that the book is an essential read for any leader seeking to understand and navigate the challenges and opportunities of digital transformation.
2015 acm po v building digital businesses in large companiesAnselm Magel
Large corporate Europe lacks any businesses that are digital natives. To avoid being marginalized by digital disruptors, traditional companies must embrace digital transformation. However, becoming digital requires more than just technological changes - it is a pervasive change to the business. For large corporations to both digitize existing models and develop new digital business lines requires comprehensive digital change management to develop digital versatility among the workforce and leadership.
Industry 4.0: from Factory to Smactory
It is August the 18th of 2014 when a German government official press ‘post’ on an update called: "Zukunftsprojekt Industrie 4.0”, not knowing that this Industry number will complete transform the way we traditionally did business. Where business transformation in prior times mostly affected individual entities of businesses, this transformation affects the whole business eco-system. The announcement, posted on the “Bundesministerium fur Bildung und Forschung ” or, in English, the:”Federal ministry of education and Research” quoted the following key message:
“The future project Industry 4.0 aims to enable the German industry in a position to be ready for the future of production. Industrial production will be characterized by strong personalization of products under the conditions of high flexibilised (high-volume) production, the extensive integration of customers and business partners in business and value creation processes and the coupling of production and quality services.”
Industry 4.0, where disruption meets the manufacturing industry
According the Cambridge Online Dictionary is revolution something that is: ‘a very important change in the way that people do things’ or ‘one complete circular movement of something’. That Industry 4.0 is a industrial revolution is an understatement. Industry 4.0 is a big disruption in the economy & the way we (will) do business in the future. Before deep dive directly into Industry 4.0 let us have a closer look to the road towards it...
What is digital transformation training interactive workshop belgrade serbiaMiodrag Kostic, CMC
Presentation from the "What is digital transformation?" workshop, interactive training course on how to digitally transform your organisation for Dare To Be Original conference in Belgrade Serbia?
http://www.businessknowledge.biz/
http://www.miodragkostic.com/
1) Fujitsu provides a digital business platform called MetaArc to help customers drive digital transformation through mobile, data analytics, IoT, and AI technologies in a scalable cloud environment.
2) Fujitsu focuses on delivering business and social outcomes through a portfolio of technologies and services including cloud, mobile, IoT, analytics, AI, security, and integrated computing.
3) Fujitsu's approach to digital transformation is called "Human Centric Innovation", which aims to empower people and improve quality of life through connecting infrastructure, creative intelligence derived from information, and the creativity of people.
This emerging tech research from CompTIA describes the growing role of artificial intelligence in the technology strategies that businesses are building.”
Workshop digital transformation strategy digital road-map trainingMiodrag Kostic, CMC
Miodrag Kostić is a certified digital transformation expert who has been helping companies digitally transform since 1995. This document outlines his experience founding online stores in the 1990s and digital consulting company in 1997. It then covers a workshop on digital transformation strategies, developing a digital roadmap for Mokrin house, and the Austrian Chamber of Commerce's process for digital consulting including trend analysis and priority setting.
In the digital world, it has long been said that ‘Content is King’
The debate then moved onto whether ‘Control of Distribution’ was more important…
The reality is that value propositions in the Digital arena are more complex than just ‘Content or Distribution’
To help guide the way, KPMG has created a checklist of 20 ways – “the 20Cs” in which a company might provide value through a digital model.
This we have called the Digital Convergence Equalizer.
Digital Transformation - Rethink The Business in The Digital Age
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.
www.heruwijayanto.com
From the changing landscape of ICT infrastructure to tackling tricky supply chain issues, we explore every corner of the IT industry in issue 002 of the Probrand Group magazine: http://www.probrand.co.uk/imag/issue02/index.html
14 Essential Leadership Skills During The 4th Industrial RevolutionBernard Marr
Tomorrow’s leaders will need new skills to deal with the realities of the fast-moving, interconnected and technology-driven workplace. The good news is that these leadership skills can be learned and are still required even when bots and machines are part of the workforce. Here are 14 leadership skills of the future workplace.
CIO Summit 2015 (MY) Post Event Report (DD - EMC)Ai-Ling See
The document provides an overview and summary of the CIO Summit Malaysia 2015 event. It includes:
- An agenda that featured presentations on digital transformation, cybersecurity challenges, and a panel discussion.
- Over 125 attendees from various industries participated.
- Presentations covered topics like competing in the digital era, cloud strategies, and Malaysia's data center ecosystem.
- A panel discussed the role of the CIO and which technology pillars are most important for digital transformation.
- Attendees engaged in polls and networking sessions and provided positive feedback on the event.
Surviving and thriving in the 4th Industrial Revolution means a change in culture, adoption of new technologies and an ecosystem wide collaboration. We take a look at the market and the success and improvements surrounding the 3DEXPERIENCE Platform from Dassault Systemes.
Connect - Talk - Think - Act: Developing Internet of Things & Industrial Inte...Rick Bouter
1) GE recognized the innovation potential of an instrumented, connected and intelligent world and is acting decisively through its Predix predictive maintenance platform and seven business segments.
2) GE Aviation developed the Integrated Vehicle Health Management application to monitor aircraft engines and equipment using sensors and analytics to predict maintenance needs and failures.
3) GE aims to transform from an equipment manufacturer to a digital industrial company by leveraging the Industrial Internet to offer new data-driven services that improve customer operations and experience.
Top 5 Emerging Technologies - Future Horizons 2019Mike Parsons
So what's next in emerging technology for 2019? Discover the leading technologies and how they work. Virtual Reality, Blockchain, Voice as an Interface, Augmented Reality, Autonomous Vehicles, Face Recognition, IOT, Artificial Intelligence, Sensors, Smart Cities, Edge Computing, Quantum Computing, Mixed Reality, Ethics and Privacy.
Digital transformation training digital roadmap workshop in Serbia BelgradeMiodrag Kostic, CMC
Presentation from the digital transformation workshop, interactive training course on how to create and implement digital road map?
http://www.miodragkostic.com/
http://www.businessknowledge.biz/
We are pleased to give to you the 2015 Innovation Forecast Report. We used the principle of the triple helix while inviting influencers to co-author this edition. Thus, in the report you can find publications of entrepreneurs, scientists and government representatives. Such a combination allows to show different perspectives of thinking and bringing innovation into life.
Among the invited authors are:
Paweł Adamowicz - The Mayor of the City of Gdańsk
Sebastian Grabowski - Director of the Research and Development Centre, Orange Poland
Paweł Tkaczyk - guru of branding and allfather of Midea
Izabela Disterheft - Director of Gdansk Science and Technology Park
Sebastian Brzuzek - Head of Innovation in Meritum Bank ICB
Krzysztof Kanawka - scientist and Leader in Blue Dot Solutions
Agata Kukwa - CEO, dlaodmiany.pl
Bartosz Rychlicki – CEO, Quantum Lab
Wojciech Drewczyński – Product Owner, Gamereer
and
Marcin Kowalik – Managing Partner, Black Pearls VC
All of the authors pointed out an important trend that is worth following. Using help of Jamel interactive agency and their solution called Social Board we gathered references to these trends published by internet users worldwide. With simple click on a hashtag under each forecast you will see how the trend is growing around the world and how ideas that are connected to that topic are developing.
http://innovation.socialboard.pl/
The document summarizes a webinar on using analytics to solve problems in the telecommunications industry. It introduces the speakers and discusses challenges telecom companies face from new technologies, customer expectations, and competition. It outlines how analytics can help telecom companies better understand customers, change their culture, manage technologies, and deliver new services to meet customer needs and drive growth. Specifically, IBM's analytics for telecommunications provides unique algorithms, models, and an open platform to create a 360-degree view of customers and help with customer experience, marketing, network management, and other areas.
Digital transformation consulting digital consultants serbia belgradeMiodrag Kostic, CMC
Presentation from the "Digital transformation consulting" Consulting workshop, interactive training course on how to create digital road map for digital transformation?
Miodrag Kostic, CMC, CDC
Certified digital transformation expert - consultant
http://www.businessknowledge.biz/
http://www.miodragkostic.com/
Artificial intelligence has
become a red-hot topic for
the board room as it has
the capacity to quickly
solve complex problems
while still offering huge
cost saving efficiencies.
Like many, I’m hugely excited
about its potential but also acutely
aware of the overblown media hype
that surrounds it. While AI certainly has the
potential to help identify a cure for cancer and
end global food shortages, it’s not likely to do
either any time soon.
Instead, AI is invisibly becoming an integral
part of our daily lives. It already powers
Google’s search, serves up personalised
suggestions on Amazon and Netflix, detects
faces in photos and makes sense of the verbal
commands we give our smartphones.
AI techniques are playing major roles in
science and medicine, helping physicians
understand which patients are at the highest
risk of complications and finding important
needles in the massive data haystacks.
AI has the potential to create deep structural
shifts in business models yet as these take
place, the very nature of the workplace
and employment will change. We’re seeing
glimpses of this with the development
of chatbots to replace human call centre
operators and self-driving vehicles that are
predicted to decimate haulage jobs. As AI
improves, a much broader set of ‘thinking’
rather than ‘doing’ jobs is likely to be affected
and maybe even replaced by AI.
As we consider all of this, it is worth
remembering Amara’s law that “We tend to
overestimate the effect of a technology in
the short run and underestimate the effect
in the long run.” It’s exciting to imagine the
possibilities of AI but what happens when this
technology surpasses human abilities and
knowledge? While this isn’t a pressing issue in
2017, now is certainly the time to safeguard
against a future where we will no longer be the
smartest species on the planet.
Who is driving innovation in your business? Probrand Group
Probrand Group magazine provides credible articles written by leading tech journalists around driving innovation and transformation, mobility, supply chain and procurement, security, cloud and infrastructure.
Telkom faces challenges in entering Society 5.0 and adapting to digital trends:
1) Society 5.0 will be driven by artificial intelligence and machines, requiring Telkom to develop new capabilities.
2) Digital trends are disrupting traditional business models and requiring faster transformation.
3) Telkom must develop its people, culture, and organization to meet the needs of Society 5.0 and succeed in the digital era.
Monetizing the Internet of Things: Extracting Value from the Connectivity Opp...Capgemini
Cisco has estimated that the Internet of Things (IoT) has the potential to generate about $19 trillion of value over the coming years. The staggering potential size-of-the-prize has certainly caught the attention of the world’s business community. In a recent survey of senior business leaders around the globe, 96% said their companies would be using IoT in some way within the next 3 years. However, there is a catch – most organizations are yet to derive significant commercial value from IoT. Our research shows that 70% of organizations do not generate service revenues from their IoT solutions. We have looked at why organizations are falling short in monetizing the IoT, and have tried to capture some initial observations on monetization models in what is still a very fast-developing marketplace.
The document discusses emerging technologies in the ICT market in the Netherlands, focusing on the third platform of technologies including big data, social media, mobility, and cloud computing. It provides an overview of each of these areas and examples of real-world implementations. The document also addresses challenges for Dutch companies in adopting these new technologies.
The digital advantage how digital leaders out perform their peers in every in...PlatformE2E
The document discusses how digital leaders outperform their peers across industries. It finds that companies with higher "digital maturity" through investment in digital technologies and transformation management capabilities have significantly higher financial performance. Digital maturity has two dimensions: digital intensity focusing on technology initiatives, and transformation management intensity involving vision, governance, and culture change. Companies that score highly on both dimensions, called "Digirati", generate more revenue, profits, and market valuation than their less digitally mature competitors. While digital maturity varies by industry, the research finds it provides benefits across all industries.
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.
The digital advantage: how digital leaders outperform their peers in every in...Ben Gilchriest
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.
In two years of study covering more than 400 large firms (See About the Research), 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.
In the digital world, it has long been said that ‘Content is King’
The debate then moved onto whether ‘Control of Distribution’ was more important…
The reality is that value propositions in the Digital arena are more complex than just ‘Content or Distribution’
To help guide the way, KPMG has created a checklist of 20 ways – “the 20Cs” in which a company might provide value through a digital model.
This we have called the Digital Convergence Equalizer.
Digital Transformation - Rethink The Business in The Digital Age
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.
www.heruwijayanto.com
From the changing landscape of ICT infrastructure to tackling tricky supply chain issues, we explore every corner of the IT industry in issue 002 of the Probrand Group magazine: http://www.probrand.co.uk/imag/issue02/index.html
14 Essential Leadership Skills During The 4th Industrial RevolutionBernard Marr
Tomorrow’s leaders will need new skills to deal with the realities of the fast-moving, interconnected and technology-driven workplace. The good news is that these leadership skills can be learned and are still required even when bots and machines are part of the workforce. Here are 14 leadership skills of the future workplace.
CIO Summit 2015 (MY) Post Event Report (DD - EMC)Ai-Ling See
The document provides an overview and summary of the CIO Summit Malaysia 2015 event. It includes:
- An agenda that featured presentations on digital transformation, cybersecurity challenges, and a panel discussion.
- Over 125 attendees from various industries participated.
- Presentations covered topics like competing in the digital era, cloud strategies, and Malaysia's data center ecosystem.
- A panel discussed the role of the CIO and which technology pillars are most important for digital transformation.
- Attendees engaged in polls and networking sessions and provided positive feedback on the event.
Surviving and thriving in the 4th Industrial Revolution means a change in culture, adoption of new technologies and an ecosystem wide collaboration. We take a look at the market and the success and improvements surrounding the 3DEXPERIENCE Platform from Dassault Systemes.
Connect - Talk - Think - Act: Developing Internet of Things & Industrial Inte...Rick Bouter
1) GE recognized the innovation potential of an instrumented, connected and intelligent world and is acting decisively through its Predix predictive maintenance platform and seven business segments.
2) GE Aviation developed the Integrated Vehicle Health Management application to monitor aircraft engines and equipment using sensors and analytics to predict maintenance needs and failures.
3) GE aims to transform from an equipment manufacturer to a digital industrial company by leveraging the Industrial Internet to offer new data-driven services that improve customer operations and experience.
Top 5 Emerging Technologies - Future Horizons 2019Mike Parsons
So what's next in emerging technology for 2019? Discover the leading technologies and how they work. Virtual Reality, Blockchain, Voice as an Interface, Augmented Reality, Autonomous Vehicles, Face Recognition, IOT, Artificial Intelligence, Sensors, Smart Cities, Edge Computing, Quantum Computing, Mixed Reality, Ethics and Privacy.
Digital transformation training digital roadmap workshop in Serbia BelgradeMiodrag Kostic, CMC
Presentation from the digital transformation workshop, interactive training course on how to create and implement digital road map?
http://www.miodragkostic.com/
http://www.businessknowledge.biz/
We are pleased to give to you the 2015 Innovation Forecast Report. We used the principle of the triple helix while inviting influencers to co-author this edition. Thus, in the report you can find publications of entrepreneurs, scientists and government representatives. Such a combination allows to show different perspectives of thinking and bringing innovation into life.
Among the invited authors are:
Paweł Adamowicz - The Mayor of the City of Gdańsk
Sebastian Grabowski - Director of the Research and Development Centre, Orange Poland
Paweł Tkaczyk - guru of branding and allfather of Midea
Izabela Disterheft - Director of Gdansk Science and Technology Park
Sebastian Brzuzek - Head of Innovation in Meritum Bank ICB
Krzysztof Kanawka - scientist and Leader in Blue Dot Solutions
Agata Kukwa - CEO, dlaodmiany.pl
Bartosz Rychlicki – CEO, Quantum Lab
Wojciech Drewczyński – Product Owner, Gamereer
and
Marcin Kowalik – Managing Partner, Black Pearls VC
All of the authors pointed out an important trend that is worth following. Using help of Jamel interactive agency and their solution called Social Board we gathered references to these trends published by internet users worldwide. With simple click on a hashtag under each forecast you will see how the trend is growing around the world and how ideas that are connected to that topic are developing.
http://innovation.socialboard.pl/
The document summarizes a webinar on using analytics to solve problems in the telecommunications industry. It introduces the speakers and discusses challenges telecom companies face from new technologies, customer expectations, and competition. It outlines how analytics can help telecom companies better understand customers, change their culture, manage technologies, and deliver new services to meet customer needs and drive growth. Specifically, IBM's analytics for telecommunications provides unique algorithms, models, and an open platform to create a 360-degree view of customers and help with customer experience, marketing, network management, and other areas.
Digital transformation consulting digital consultants serbia belgradeMiodrag Kostic, CMC
Presentation from the "Digital transformation consulting" Consulting workshop, interactive training course on how to create digital road map for digital transformation?
Miodrag Kostic, CMC, CDC
Certified digital transformation expert - consultant
http://www.businessknowledge.biz/
http://www.miodragkostic.com/
Artificial intelligence has
become a red-hot topic for
the board room as it has
the capacity to quickly
solve complex problems
while still offering huge
cost saving efficiencies.
Like many, I’m hugely excited
about its potential but also acutely
aware of the overblown media hype
that surrounds it. While AI certainly has the
potential to help identify a cure for cancer and
end global food shortages, it’s not likely to do
either any time soon.
Instead, AI is invisibly becoming an integral
part of our daily lives. It already powers
Google’s search, serves up personalised
suggestions on Amazon and Netflix, detects
faces in photos and makes sense of the verbal
commands we give our smartphones.
AI techniques are playing major roles in
science and medicine, helping physicians
understand which patients are at the highest
risk of complications and finding important
needles in the massive data haystacks.
AI has the potential to create deep structural
shifts in business models yet as these take
place, the very nature of the workplace
and employment will change. We’re seeing
glimpses of this with the development
of chatbots to replace human call centre
operators and self-driving vehicles that are
predicted to decimate haulage jobs. As AI
improves, a much broader set of ‘thinking’
rather than ‘doing’ jobs is likely to be affected
and maybe even replaced by AI.
As we consider all of this, it is worth
remembering Amara’s law that “We tend to
overestimate the effect of a technology in
the short run and underestimate the effect
in the long run.” It’s exciting to imagine the
possibilities of AI but what happens when this
technology surpasses human abilities and
knowledge? While this isn’t a pressing issue in
2017, now is certainly the time to safeguard
against a future where we will no longer be the
smartest species on the planet.
Who is driving innovation in your business? Probrand Group
Probrand Group magazine provides credible articles written by leading tech journalists around driving innovation and transformation, mobility, supply chain and procurement, security, cloud and infrastructure.
Telkom faces challenges in entering Society 5.0 and adapting to digital trends:
1) Society 5.0 will be driven by artificial intelligence and machines, requiring Telkom to develop new capabilities.
2) Digital trends are disrupting traditional business models and requiring faster transformation.
3) Telkom must develop its people, culture, and organization to meet the needs of Society 5.0 and succeed in the digital era.
Monetizing the Internet of Things: Extracting Value from the Connectivity Opp...Capgemini
Cisco has estimated that the Internet of Things (IoT) has the potential to generate about $19 trillion of value over the coming years. The staggering potential size-of-the-prize has certainly caught the attention of the world’s business community. In a recent survey of senior business leaders around the globe, 96% said their companies would be using IoT in some way within the next 3 years. However, there is a catch – most organizations are yet to derive significant commercial value from IoT. Our research shows that 70% of organizations do not generate service revenues from their IoT solutions. We have looked at why organizations are falling short in monetizing the IoT, and have tried to capture some initial observations on monetization models in what is still a very fast-developing marketplace.
The document discusses emerging technologies in the ICT market in the Netherlands, focusing on the third platform of technologies including big data, social media, mobility, and cloud computing. It provides an overview of each of these areas and examples of real-world implementations. The document also addresses challenges for Dutch companies in adopting these new technologies.
The digital advantage how digital leaders out perform their peers in every in...PlatformE2E
The document discusses how digital leaders outperform their peers across industries. It finds that companies with higher "digital maturity" through investment in digital technologies and transformation management capabilities have significantly higher financial performance. Digital maturity has two dimensions: digital intensity focusing on technology initiatives, and transformation management intensity involving vision, governance, and culture change. Companies that score highly on both dimensions, called "Digirati", generate more revenue, profits, and market valuation than their less digitally mature competitors. While digital maturity varies by industry, the research finds it provides benefits across all industries.
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.
The digital advantage: how digital leaders outperform their peers in every in...Ben Gilchriest
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.
In two years of study covering more than 400 large firms (See About the Research), 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.
Linking Business strategy to digitalization, innovation & industry 4.0Vikram Bhonsle
The document discusses General Electric's digital transformation efforts to become a "digital industrial" company. Some key points:
- GE is developing software operations in each business line and aims to build a $15 billion digital/software business by 2020.
- GE is building an industrial operating system called Predix to connect sensors and software in factories and equipment.
- A GE plant retrofitted with Predix detected an argon gas leak, saving $350,000 per year in costs. Overall automation reduced work time by 530,000 hours.
- While startups emphasize minimum viable products, GE must ensure safety for products like jet engines. However, GE is encouraging engineers to experiment more and accept failure as part
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.
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.
Ron Tolido presented this at our Meetup on Sept. 16th, 2013.
With digital transformation, the use of digital technologies to radically improve the performance or reach of enterprises, companies can become more customer-centric, more valuable and more profitable. Ron Tolido (@rtolido) discusses digital maturity, digital governance and the role of the chief digital officer (CDO), design principles and a digital transformation roadmap.
This document discusses the impact of digital transformation across industries and the need for organizations to adapt their human capital and leadership. It outlines how digital has altered how customers and businesses interact through tools like social media, mobile, big data, and cloud computing. To successfully navigate digital transformation, the document argues that companies need digitally savvy leadership at all levels, including the CEO, board of directors, C-level digital roles, and business unit heads. It positions Oceans Group as being able to assist companies in identifying and developing the right human capital strategies and leadership to create a digital future.
Disruptive Digital is an innovation that occurs when new technologies and digital systems affect or alter an enterprise's business model.
To know more details, visit : https://mitidinnovation.com/recreation/what-is-disruptive-digital/
Lessons for successfully executing digital transformation in HealthcareHenk Bakker
Many common perceptions about digital transformation are
actually myths. Fortunately, our global survey of nearly 400 large firms, supplemented by 157 in-depth interviews
with senior executives in more than 50 large companies, provides factbased answers.
Digital innovation leadership: How to master digital transformation in the fa...3gamma
In the new digital economy, long-established ways of doing business are quickly becoming obsolete and disruption is taking place across every sector. But what separates the digital frontrunners from the laggards and how can organisations stay ahead in a digitally transformed future?
Digital innovation leadership: How to master digital transformation in the fa...Jesper Nordström
- Digital disruption is occurring across all industries as new digital technologies change business models and customer needs. Incumbents are often slow to respond to disruption while digital leaders embrace innovation.
- To successfully transform, companies must have leadership that champions digital strategies, develop new digital products/services, improve customer experience, transform processes, and leverage data analytics. Initiatives should start small and test hypotheses through prototyping before large-scale implementation.
- Anticipating disruption involves scanning for digital trends, observing competitors, understanding unmet customer needs, collaborating through open innovation, and continuously questioning assumptions about the business model.
Oceans group & digital talent transformation sgSean Garvey
This document discusses the impact of digital transformation on leadership and talent. It argues that digital technologies like social media, mobile devices, big data and cloud computing have fundamentally altered how companies interact with customers and operate. To successfully navigate digital transformation, companies need leadership at all levels with digital skills, including the CEO, board of directors, functional leaders, and business unit managers. The author's company assists other organizations by advising them on the type of leadership required for digital transformation and how to identify, recruit and retain digitally savvy talent.
A Conceptual Framework for Digital Business TransformationJay Singh
- Digital business transformation is defined as organizational change through the use of digital technologies and business models to improve performance. It involves transforming aspects of an organization like its business model, structure, people, processes, IT capabilities, offerings, and engagement model.
- The digital business transformation journey involves answering three questions: why transform (the motivation), what to transform (the priorities), and how to transform (the plan). Understanding these questions helps organizations effectively embark on their digital transformation.
- The document provides examples like Disney, Kodak, and FujiFilm to illustrate aspects of digital transformation, its risks of failure to transform, and potential performance improvements from transformation.
This document discusses an IMD and Cisco initiative called the Global Center for Digital Business Transformation. The Center conducted a survey of over 900 business leaders from 12 industries to assess the state of digital disruption. Key findings include that digital disruption is occurring faster than ever and displacing incumbent companies, but many companies are not adequately addressing this threat. The document advocates that all industries will experience disruption as innovations become exponential, so companies must assess their vulnerability and either disrupt themselves or risk being displaced by new business models.
The digital startup implementation handbook 2018Mondher Khanfir
All what Founders, Mentors and Investors need to know to better design and implement a business model for their digital startup. The eBook contains practical insights on the digital economy, and provides a didactic set of instruments that could be played with an exclusive role game www.mudircards.com
Digital technologies are having a pervasive impact on businesses and yet many organizations fail to capture the full potential of digital technologies because their leaders lack a transformative vision. Some insights from Capgemini on the importance, structure, and value of a #DigitalT vision.
The document discusses developing a transformative digital vision. It notes that while awareness of digital trends is growing, few organizations have developed a true transformative digital vision. The "Digirati" are distinguished by translating awareness into a vision of the future where digital plays a fundamental role. Visions can focus on digitizing operations, customer experience, or transforming business models. Crafting a vision involves defining a clear target outcome, engaging the organization, and evolving the vision over time as capabilities change. Developing a transformative digital vision is key to successfully managing digital transformation.
“The Vision Thing”: Developing a Transformative Digital VisionCapgemini
The document discusses developing a transformative digital vision. It provides examples of how some companies have expressed their digital visions, focusing on digitizing operational processes, digitizing the customer experience, or a combination to transform business models. The document also outlines three steps for executives to take in framing a transformative digital vision: 1) Define a clear target outcome and intent, 2) Engage the organization, and 3) Evolve the vision over time. Developing an inspiring vision where digital plays a fundamental role can help drive successful digital transformation.
Similar to The digital advantage:how digital leaders outperform their peers in every industry (20)
In his public lecture, Christian Timmerer provides insights into the fascinating history of video streaming, starting from its humble beginnings before YouTube to the groundbreaking technologies that now dominate platforms like Netflix and ORF ON. Timmerer also presents provocative contributions of his own that have significantly influenced the industry. He concludes by looking at future challenges and invites the audience to join in a discussion.
Essentials of Automations: The Art of Triggers and Actions in FMESafe Software
In this second installment of our Essentials of Automations webinar series, we’ll explore the landscape of triggers and actions, guiding you through the nuances of authoring and adapting workspaces for seamless automations. Gain an understanding of the full spectrum of triggers and actions available in FME, empowering you to enhance your workspaces for efficient automation.
We’ll kick things off by showcasing the most commonly used event-based triggers, introducing you to various automation workflows like manual triggers, schedules, directory watchers, and more. Plus, see how these elements play out in real scenarios.
Whether you’re tweaking your current setup or building from the ground up, this session will arm you with the tools and insights needed to transform your FME usage into a powerhouse of productivity. Join us to discover effective strategies that simplify complex processes, enhancing your productivity and transforming your data management practices with FME. Let’s turn complexity into clarity and make your workspaces work wonders!
Programming Foundation Models with DSPy - Meetup SlidesZilliz
Prompting language models is hard, while programming language models is easy. In this talk, I will discuss the state-of-the-art framework DSPy for programming foundation models with its powerful optimizers and runtime constraint system.
Climate Impact of Software Testing at Nordic Testing DaysKari Kakkonen
My slides at Nordic Testing Days 6.6.2024
Climate impact / sustainability of software testing discussed on the talk. ICT and testing must carry their part of global responsibility to help with the climat warming. We can minimize the carbon footprint but we can also have a carbon handprint, a positive impact on the climate. Quality characteristics can be added with sustainability, and then measured continuously. Test environments can be used less, and in smaller scale and on demand. Test techniques can be used in optimizing or minimizing number of tests. Test automation can be used to speed up testing.
Ocean lotus Threat actors project by John Sitima 2024 (1).pptxSitimaJohn
Ocean Lotus cyber threat actors represent a sophisticated, persistent, and politically motivated group that poses a significant risk to organizations and individuals in the Southeast Asian region. Their continuous evolution and adaptability underscore the need for robust cybersecurity measures and international cooperation to identify and mitigate the threats posed by such advanced persistent threat groups.
Driving Business Innovation: Latest Generative AI Advancements & Success StorySafe Software
Are you ready to revolutionize how you handle data? Join us for a webinar where we’ll bring you up to speed with the latest advancements in Generative AI technology and discover how leveraging FME with tools from giants like Google Gemini, Amazon, and Microsoft OpenAI can supercharge your workflow efficiency.
During the hour, we’ll take you through:
Guest Speaker Segment with Hannah Barrington: Dive into the world of dynamic real estate marketing with Hannah, the Marketing Manager at Workspace Group. Hear firsthand how their team generates engaging descriptions for thousands of office units by integrating diverse data sources—from PDF floorplans to web pages—using FME transformers, like OpenAIVisionConnector and AnthropicVisionConnector. This use case will show you how GenAI can streamline content creation for marketing across the board.
Ollama Use Case: Learn how Scenario Specialist Dmitri Bagh has utilized Ollama within FME to input data, create custom models, and enhance security protocols. This segment will include demos to illustrate the full capabilities of FME in AI-driven processes.
Custom AI Models: Discover how to leverage FME to build personalized AI models using your data. Whether it’s populating a model with local data for added security or integrating public AI tools, find out how FME facilitates a versatile and secure approach to AI.
We’ll wrap up with a live Q&A session where you can engage with our experts on your specific use cases, and learn more about optimizing your data workflows with AI.
This webinar is ideal for professionals seeking to harness the power of AI within their data management systems while ensuring high levels of customization and security. Whether you're a novice or an expert, gain actionable insights and strategies to elevate your data processes. Join us to see how FME and AI can revolutionize how you work with data!
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
Let's Integrate MuleSoft RPA, COMPOSER, APM with AWS IDP along with Slackshyamraj55
Discover the seamless integration of RPA (Robotic Process Automation), COMPOSER, and APM with AWS IDP enhanced with Slack notifications. Explore how these technologies converge to streamline workflows, optimize performance, and ensure secure access, all while leveraging the power of AWS IDP and real-time communication via Slack notifications.
Unlocking Productivity: Leveraging the Potential of Copilot in Microsoft 365, a presentation by Christoforos Vlachos, Senior Solutions Manager – Modern Workplace, Uni Systems
TrustArc Webinar - 2024 Global Privacy SurveyTrustArc
How does your privacy program stack up against your peers? What challenges are privacy teams tackling and prioritizing in 2024?
In the fifth annual Global Privacy Benchmarks Survey, we asked over 1,800 global privacy professionals and business executives to share their perspectives on the current state of privacy inside and outside of their organizations. This year’s report focused on emerging areas of importance for privacy and compliance professionals, including considerations and implications of Artificial Intelligence (AI) technologies, building brand trust, and different approaches for achieving higher privacy competence scores.
See how organizational priorities and strategic approaches to data security and privacy are evolving around the globe.
This webinar will review:
- The top 10 privacy insights from the fifth annual Global Privacy Benchmarks Survey
- The top challenges for privacy leaders, practitioners, and organizations in 2024
- Key themes to consider in developing and maintaining your privacy program
AI 101: An Introduction to the Basics and Impact of Artificial IntelligenceIndexBug
Imagine a world where machines not only perform tasks but also learn, adapt, and make decisions. This is the promise of Artificial Intelligence (AI), a technology that's not just enhancing our lives but revolutionizing entire industries.
HCL Notes und Domino Lizenzkostenreduzierung in der Welt von DLAUpanagenda
Webinar Recording: https://www.panagenda.com/webinars/hcl-notes-und-domino-lizenzkostenreduzierung-in-der-welt-von-dlau/
DLAU und die Lizenzen nach dem CCB- und CCX-Modell sind für viele in der HCL-Community seit letztem Jahr ein heißes Thema. Als Notes- oder Domino-Kunde haben Sie vielleicht mit unerwartet hohen Benutzerzahlen und Lizenzgebühren zu kämpfen. Sie fragen sich vielleicht, wie diese neue Art der Lizenzierung funktioniert und welchen Nutzen sie Ihnen bringt. Vor allem wollen Sie sicherlich Ihr Budget einhalten und Kosten sparen, wo immer möglich. Das verstehen wir und wir möchten Ihnen dabei helfen!
Wir erklären Ihnen, wie Sie häufige Konfigurationsprobleme lösen können, die dazu führen können, dass mehr Benutzer gezählt werden als nötig, und wie Sie überflüssige oder ungenutzte Konten identifizieren und entfernen können, um Geld zu sparen. Es gibt auch einige Ansätze, die zu unnötigen Ausgaben führen können, z. B. wenn ein Personendokument anstelle eines Mail-Ins für geteilte Mailboxen verwendet wird. Wir zeigen Ihnen solche Fälle und deren Lösungen. Und natürlich erklären wir Ihnen das neue Lizenzmodell.
Nehmen Sie an diesem Webinar teil, bei dem HCL-Ambassador Marc Thomas und Gastredner Franz Walder Ihnen diese neue Welt näherbringen. Es vermittelt Ihnen die Tools und das Know-how, um den Überblick zu bewahren. Sie werden in der Lage sein, Ihre Kosten durch eine optimierte Domino-Konfiguration zu reduzieren und auch in Zukunft gering zu halten.
Diese Themen werden behandelt
- Reduzierung der Lizenzkosten durch Auffinden und Beheben von Fehlkonfigurationen und überflüssigen Konten
- Wie funktionieren CCB- und CCX-Lizenzen wirklich?
- Verstehen des DLAU-Tools und wie man es am besten nutzt
- Tipps für häufige Problembereiche, wie z. B. Team-Postfächer, Funktions-/Testbenutzer usw.
- Praxisbeispiele und Best Practices zum sofortigen Umsetzen
CAKE: Sharing Slices of Confidential Data on BlockchainClaudio Di Ciccio
Presented at the CAiSE 2024 Forum, Intelligent Information Systems, June 6th, Limassol, Cyprus.
Synopsis: Cooperative information systems typically involve various entities in a collaborative process within a distributed environment. Blockchain technology offers a mechanism for automating such processes, even when only partial trust exists among participants. The data stored on the blockchain is replicated across all nodes in the network, ensuring accessibility to all participants. While this aspect facilitates traceability, integrity, and persistence, it poses challenges for adopting public blockchains in enterprise settings due to confidentiality issues. In this paper, we present a software tool named Control Access via Key Encryption (CAKE), designed to ensure data confidentiality in scenarios involving public blockchains. After outlining its core components and functionalities, we showcase the application of CAKE in the context of a real-world cyber-security project within the logistics domain.
Paper: https://doi.org/10.1007/978-3-031-61000-4_16
How to Get CNIC Information System with Paksim Ga.pptxdanishmna97
Pakdata Cf is a groundbreaking system designed to streamline and facilitate access to CNIC information. This innovative platform leverages advanced technology to provide users with efficient and secure access to their CNIC details.
How to Get CNIC Information System with Paksim Ga.pptx
The digital advantage:how digital leaders outperform their peers in every industry
1. The Digital Advantage:
How digital leaders outperform
their peers in every industry
MITSloan
M A N A G E M E N T
Transform to the power of digital
2. Few firms have positioned themselves to capture
the real business benefits. Our research points to
a real “digital advantage” to those that do.
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.1
There are more than 6
billion mobile phones.2
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 (See About the Research), 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.
Introduction
2
3. 3
Some companies are what we call the
“Digirati.” They have the digital maturity
not only to build digital innovations,
but also to drive enterprise-wide
transformation. And they benefit from
their actions. Digirati have significantly
higher financial performance than their
less digitally-mature competitors.
Digital maturity is a combination of two
separate but related dimensions (See
figure 1). The first, digital intensity,
is investment in technology-enabled
initiatives to change how the company
operates – its customer engagements,
internal operations, and even business
models. Burberry (See page 5) used
technology to improve the in-store
experience and increase operational
excellence. Codelco (See page 5)
is automating mining operations to
improve efficiency and safety while
creating new business opportunities.
What is Digital Maturity?
Companies in all industries are
investing in interesting digital initiatives.
However, in many firms, these
investments are uncoordinated and
sometimes duplicative.
Firms maturing in the second
dimension, transformation
management intensity, are creating
the leadership capabilities necessary
to drive digital transformation in the
organization. Transformation intensity
consists of the vision to shape a new
future, governance and engagement
to steer the course, and IT/business
relationships to implement technology-
based change. Volvo developed a
vision and governance capabilities
before it began to implement new
digital services in its cars.3
Nike built
a digital division called Nike Digital
Sport to coordinate and extend
the successful activities it had built
Technology-enabled initiatives in:
• Customer Engagement
• Internal Operations
• Vision
• Governance
• Engagement
Connected products
Digital Design
Mobile sales
Optimized Pricing
Communities in social media
Vision of the firm’s future
Evolving the culture
…
…New skills
DIGITAL INTENSITY
Leadership capabilities including:
• IT-Business Relationships
TRANSFORMATION MANAGEMENT INTENSITY
Location-based marketing
Real-time monitoring of operations
Cross-silo coordination
Figure 1. The What-and-How of Digital Transformation
separately in social media, digital
product design, custom manufacturing,
and other areas (See page 19).
The elements of transformation
management intensity work together
– through a combination of top-
down leadership and bottom-up
innovation – to drive ongoing digital
transformation. However, in many
companies, these elements are overly
slow or conservative, preventing
the company from investing in
innovative opportunities.
4. The two dimensions spell out four
different types of digital maturity
(See figure 2). Companies in the
lower left are Digital Beginners. These
firms do very little with advanced
digital capabilities, although they
may be mature with more traditional
applications such as ERP or electronic
commerce. Although companies may
be Beginners by choice, more often
than not they are in this quadrant by
accident. They may be unaware of the
opportunities, or may be starting some
small investments without effective
transformation management in place.
Firms in the top left are Digital
Fashionistas. These companies have
implemented or experimented with
many sexy digital applications. Some of
these initiatives may create value, but
many do not. While they may look good
together, they are not implemented
FASHIONISTAS DIGIRATI
BEGINNERS CONSERVATIVES
TRANSFORMATION MANAGEMENT INTENSITY
DIGITALINTENSITY
Figure 2. Four Types of Digital Maturity
with the vision of gaining synergies
among the items. Digital Fashionistas
are motivated to bring on digitally-
powered change, but the digital
transformation strategy is not founded
on real knowledge of how to maximize
business benefits. Companies lacking
enterprise-level governance may
find they are in this quadrant at the
corporate level, even if digital efforts are
more mature in some business units.
Companies in the bottom right
are Digital Conservatives. They
favor prudence over innovation.
Conservatives understand the need for
a strong unifying vision as well as for
governance and corporate culture to
ensure investments are managed well.
However, they are typically skeptical
of the value of new digital trends,
sometimes to their detriment. Though
aiming to spend wisely, their careful
approach may cause them to miss
valuable opportunities upon which their
more stylish competitors will pounce.
Firms at the top right are Digirati.
They truly understand how to drive
value with digital transformation. They
combine a transformative vision,
careful governance and engagement,
with sufficient investment in new
opportunities. Through vision and
engagement, they develop a digital
culture that can envision further
changes and implement them
wisely. By investing and carefully
coordinating digital initiatives, they
continuously advance their digital
competitive advantage.
4
5. Codelco:
Revolutionizing Mining Through Digital Technologies
Burberry:
The Digital Transformation of an Iconic Luxury Brand
Codelco, the largest copper producer
in the world, has its roots back in the
1800s. Owned by the Chilean State, it
operates internationally and employs
over 18,000 people. At the beginning
of the millennium – facing increasing
challenges around workers’ security,
environment and productivity – Codelco
took a hard strategic look at what the
future of mining could be. An important
goal was to automate mining operations,
shifting from a physical-intensive
model to a knowledge and technology-
intensive one. To turn vision into reality,
Burberry is an iconic British luxury
brand established in 1856. When CEO
Angela Ahrendts took over in 2006,
it was significantly underperforming
against its peers: while the overall
sector was growing at around 12-13%
a year, Burberry’s rate was about 1-2%.
To address these issues, Ahrendts
launched a significant transformation
program covering multiple business
areas, from customer experience to
operational excellence, and largely
driven by digital technologies. As well
Codelco Digital was created in 2003.
It has both operational and strategic
objectives: to drive initiatives in mining-
automation and also to support the
CEO in developing, evolving and
communicating a digital vision. Today,
four mines in Chile are operated
automatically: trucks drive themselves,
operations are controlled remotely,
information is shared in real-time,
and so on. This was more than just a
technology implementation challenge.
It involved a new culture, employee
engagement, and new skills. As CIO
Marco Antonio Orellana Silva explains:
“Our company is very conservative, so
changing the culture is a key challenge.
We created internal innovation awards
to promote new ideas and encourage
our workers to innovate.”4
Today, the firm is shifting from the
traditional “Codelco 1.0” model to
“Codelco 2.0”, a real-time mining model
with highly automated processes and
remotely-controlled machines. And
there is already a vision for “Codelco
3.0”: an intelligent mining model relying
on integrated information networks and
fully-automated processes.5
as online, Burberry also leveraged
digital technologies to enrich the
in-store customer experience, while
at the back end, it rolled-out a global
ERP program to unify processes and
integrate data across the globe.
Achieving this transformation was
much more than new technology
implementation. This was a closely
managed change program to achieve
cross-channel consistency, engage
employees, secure the right skills,
and develop strong IT-business
relationships. Specific governance
was put in place, new roles were
created, and missing skills were
developed or acquired. According to
Ahrendts, “Digital has been a catalyst
for everything in the company and,
when we got everyone on board with
this concept, they were clamoring to
become even more connected.” While
this transformation is now bearing fruit,
Ahrendts already has one eye on the
future possibilities: “Consumer data
will be the biggest differentiator in
the next two to three years. Whoever
unlocks the reams of data and uses it
strategically will win.”6
5
6. Companies take different paths
to digital maturity. Nike started
by developing digital intensity in
silos. Then it added elements of
transformation management intensity
to link the silos and launch new
capabilities. Indian paint manufacturer
Asian Paints went the other way,
creating vision, governance and IT
capabilities to become a more unified
company.7
Then it repeatedly built on
its capabilities to transform its customer
engagement, internal operations
Digital Maturity Matters
FASHIONISTAS
CONSERVATIVESBEGINNERS
DIGIRATI
and business models. Both firms are
reaping huge benefits.
These companies are not alone.
The 391 companies in our survey vary
widely on digital maturity (See figure 3).
Figure 3. Digital Maturity Varies Widely
6
To understand the relationships
between digital maturity and financial
performance, we analyzed industry-
adjusted financial performance of
the 184 publicly traded firms on our
sample (See About the Research).
Comparing digitally mature companies
to their less-mature competitors, we
found striking differences (See figure
4). Companies that are mature in
either of the two dimensions outstrip
industry competitors along different
dimensions of financial performance.
Digirati – those companies that are
mature in both dimensions – have the
highest performance, far outperforming
less-mature firms on multiple financial
measures.
7. Figure 4. Financial Performance
Basket of indicators:
• Revenue / Employee
• Fixed Assets Turnover (Revenue /
Property, Plant & Equipment)
+6% +9%
-4% -10%
Companies with stronger digital intensity derive
more revenue from their physical assets
Basket of indicators:
• EBIT Margin
• Net Profit Margin
Companies with stronger transformation
management intensity are more profitable
-12% +12%
-7% +7%
Basket of indicators:
• Tobin’s Q Ratio
• Price / Book Ratio
Companies with stronger transformation management
intensity achieve higher market valuations
-11% +26%
-24% +9%
REVENUE GENERATION
MARKET VALUATION
PROFITABILITY
7
8. Digital Intensity and
Revenue Generation
Companies that are mature on the
digital intensity dimension (vertical
axis in the matrix) are better at driving
revenue through their existing assets.
On a basket of measures including
revenue per employee and fixed
asset turnover, Fashionistas and
Digirati outperform average industry
performance by 6-9%. Hospitality firm
Caesars Entertainment, for example,
has launched a location-based mobile
marketing capability (See page 16).
Customers get offers when and where
they need them, and Caesars is able to
learn – in real time – about the personal
preferences of each customer.
Digital intensity helps companies
to gain and manage more volume
with existing physical capacity. The
difference is substantial. For example,
Fashionistas – strong on digital intensity
but not on transformation management
intensity – drive 16% more revenues
through their human and physical
assets than Conservatives do.
Transformation
Management Intensity and
Profitability
Moving in the other dimension,
companies that are mature in
transformation management intensity
are more profitable. On average,
Conservatives and Digirati are 9-26%
more profitable than their average
industry competitors on a basket of
measures including EBIT margin and
net profit margin. For these firms,
strong vision and governance help to
align investments along a common
direction. They weed out activities that
run counter to the future vision of the
transformed firm. Then they engage
their employees in identifying new
opportunities. Executives of French
yellow pages firm Pages Jaunes
declared that all future investment,
other than maintenance, must focus on
growing digital revenues and profits,
not improving the traditional paper-
based business. Meanwhile, through
communication and training, executives
engaged the workforce to enact the
vision and generate new ideas.
Digital intensity helps
companies to gain and
manage more volume
with existing physical
capacity.
Companies that
are mature in
transformation
management intensity
are more profitable.
Digirati outperform all
others
Firms that are more mature on
either dimension outperform their
competitors in specific and different
ways. The Digirati – the 25% of
firms that are more mature in both
dimensions – far outperform the
others. On average, Digirati are 26%
more profitable than their industry
competitors. They generate 9% more
revenue through their employees and
physical assets. And they create more
value, generating 12% higher market
valuation ratios. The Digirati advantage
is more than just the sum of
performance gains for Conservatives
and Fashionistas. Digirati combine
digital intensity and transformation
intensity to achieve performance that
is greater than either dimension can
deliver on its own.
8
9. Digital Maturity Matters in
Every Industry
* Average digital maturity for all industries with 20 or more companies represented in the survey
Consumer
Packaged Goods
Manufacturing
Pharmaceuticals
Retail
TelecomTravel and
hospitality
Utilities
Insurance
Banking
High Technology
Figure 5. Maturity by Industry
data points. High Technology firms
lead in digital maturity, as might be
expected. Banking and retail are in the
Digirati space, but are not as mature as
high tech. The bankers’ Digirati status
may be because digital features such
as online or mobile banking are good
for both banks and their customers.
Digital offerings provide convenience to
customers while serving as lower-cost
channels for the banks.
Telecom and travel are in the
Fashionista space. They have launched
important technology-based features
and business model changes, but
on average their transformation
management intensity is not quite
enough to move them into the Digirati.
Insurance and utilities are in the
Conservative space. Some insurers
are focused on innovating with new
technologies, but many are being held
back by regulatory concerns or difficult
organizational legacies. Similarly,
utilities may be hindered by legacies of
culture or regulatory environment that
force a focus on cost reduction rather
than broader innovation.
Other industries are less mature.
The results are clear. On average,
Digirati are 26% more profitable than
their industry competitors. For the large
traditional companies we studied –
most of which are $1 Billion or larger in
revenues – the difference can be many
millions of dollars on the bottom line.
But, does this mean every industry is
equally affected? Can companies in
some industries afford to wait?
Digital transformation is moving more
rapidly in some industries than in
others. Companies in the travel and
music industries were hit early by
threats from digital competition, and
have already undergone profound
transformation, but still have more
challenges to face. Industries such
as financial services and retail
underwent major transformation due
to electronic commerce in the 2000s,
and are now starting to innovate with
technologies such as social media,
mobility and analytics. Other industries,
however, have yet to be hit hard by
fast-changing technologies.
Figure 5 shows digital maturity, by
industry, for our survey. Each dot
represents the average maturity of
industries for which we have 20 or more
Manufacturers and CPG firms, for
example, are still in the Beginner
quadrant on average, although
some firms are more advanced.
Pharmaceutical firms, while still
Beginners on average, look more
like Fashionistas than the other two
industries. Pharma companies are
starting to invest, but may be having
difficulty in linking organizational silos –
a legacy of a long history of acquisition
and decentralization – or executives
may believe they have time before they
need to transform.
Beginners
Pharmaceuticals – Executives
see threat in digital transformation
but less opportunity than other
industries do, perhaps because
of regulation. Many are building
capabilities in analytics and
worker enablement, but most
firms are just beginning their
digital journeys, leaving many
opportunities untapped.
CPG – Digital opens new
possibilities for firms to engage
directly with customers. 24% of firms
surveyed stand out as Digirati, while
others lag far behind. Generally,
less-mature CPG firms can improve
through stronger visions, greater
digital investments and more robust
transformation management.
Manufacturing – Traditionally slow
to react to digital,8
Manufacturing
is on the cusp of emerging from
Beginner status. Efforts in digital
remain focused on operational
efficiencies and worker enablement,
but the B2B nature of many
companies may limit their attention
to digital customer engagement.
Manufacturers see less opportunity
and threat in digital transformation
than other industries. To mature,
firms may need a transformative
digital vision, plus the engagement
and governance to develop impetus
for digital investments.
9
10. 38%
35%
33%
31%
30%
26%
24%
20%
12%
7%
25%
23%
33%
19%
17%
30%
16%
40%
26%
17%
21%
23%
13%
50%
48%
17%
28%
20%
17%
43%
17%
19%
21%
0%
4%
26%
32%
20%
45%
33%
High Technology
Banking
Insurance
Travel and hospitality
Telecom
Retail
Consumer Packaged Goods
Utilities
Manufacturing
Pharmaceuticals
Digirati Conservative Fashionista Beginner
Figure 6. Maturity Breakdown by Industry
Figure 6 helps to clarify maturity
differences among industries. It
shows the percentage of firms in each
industry by quadrant. Note that more
than 80% of travel and hospitality
firms are Digirati or Fashionistas, and
there are no Beginners in the industry.
Many travel and hospitality firms have
made extensive investments in digital
intensity, but not all have invested in
transformation management intensity
necessary to drive additional value from
digital transformation. They may even
be Digirati in disconnected silos. These
firms, having already implemented
digital innovations, can invest in
ways to develop a more coordinated
and efficient approach to digital
transformation. Given the large number
of Digirati in the travel and hospitality
industry, Fashionistas should carefully
consider investing in transformation
leadership capabilities.
Conservatives
Insurance – High expectations
for digital and strong vision and
governance suggest that the
insurers should be leading the digital
revolution. Yet, this is not the case
for most firms. Generally, scores
for engaging customers through
social media and mobile are lower
than average, suggesting that
the combination of strong digital
governance capabilities, regulatory
worries, and a risk-averse culture
could be an innovation-stifler.
Utilities – For the Conservative
Utilities industry, efficiency is
the name of the game in digital
transformation. Constant pressure
to reduce costs and the advent
of smart metering create digital
opportunities in customer
experience, worker enablement,
analytics and process improvement.
Retailers, surprisingly, look more
like utility companies in their digital
maturity profile than like faster-moving
technology companies. Although
many retailers have mastered both
dimensions of maturity when managing
multichannel e-commerce, some others
still struggle with the multichannel
integration. Investing in transformation
management intensity may help these
retailers master multichannel business
while launching new ways to enhance
sales and service through social media,
mobile and analytics.
Other retailers may have slipped from
Digirati to Conservative quadrants
if they were slow to invest in newer
technologies like social media, mobile,
and analytics. The large number of
Conservatives in retail – already having
transformation management intensity to
gain value from technology investments
– could move quickly into the Digirati
quadrant by increasing their digital
intensity in newer technologies.
10
11. Fashionistas
Telecom – Facing ever-increasing
levels of connectivity and data
consumption, Telecom firms have been
quick to respond. Of the organizations
in our study, 78% are high on digital
intensity (Digirati or Fashionistas) and
Beginners are almost non-existent.
To complement their digital strengths,
Telecom firms can focus on stronger
digital leadership to integrate and align
initiatives across silos.
Travel and hospitality – Since the
advent of the web, digital has turned
the industry upside down. The industry
has responded, with 81% of firms in
the Digirati or Fashionista quadrants
and no Beginners. Opportunities exist
to improve worker enablement in
many companies. To make the jump
into Digirati territory, Fashionistas will
need to build levels of excellence in
transformation management to match
their high digital intensity, including a
transformational vision for the future.
Every industry – from
manufacturing to
high technology –
has firms that have
already begun to gain
the benefits of digital
transformation.
Do we have time to wait?
Executives in industries such as CPG,
pharmaceuticals and manufacturing
might be tempted to believe they
do not yet need to engage in digital
transformation. Their industries are less
digitally mature than others, so they
might have time to wait.
Digirati
Banking – Digital is revolutionizing
the relationship between customers
and retail banks, who have
responded with strong capabilities
in customer service, analytics and
even social media. Banks have
an opportunity to parlay these
successes into new innovations
in mobile or social customer
engagement and internal knowledge
sharing. In addition, opportunities
exist to integrate initiatives and
processes across corporate silos.
Retail – A decade-long history with
digital disruption has seasoned
retailers and produced a number
of Digirati (26% of firms surveyed).
Retailers are generally confident in
the potential for social and mobile,
as well as their digital skill set.
Moving forward, firms may want to
focus on cross-channel consistency
and worker enablement while
building analytics capabilities.
High-Tech – For High-tech, digital is
close to home. Firms generally enjoy
well-developed capabilities and high
digital maturity. They are also – not
surprisingly – enthusiastic about
digital’s potential. This momentum
may create further opportunities in
mobile and embedded devices.
However, Figure 6 shows an
important message even for
these industries. Every industry,
regardless of how digitally mature,
hosts companies that are Digirati. In
other words, every industry – from
manufacturing to high technology
– has firms that have already
begun to gain the benefits of digital
transformation.
This should be a call to action for
executives in every firm. It takes
several years to build maturity,
especially in the transformation
management intensity dimension.
Digital Beginners in any industry
are several years from gaining the
digital maturity that their Digirati
competitors already possess.
Digital Beginners
in any industry are
several years from
gaining the digital
maturity that their
Digirati competitors
already possess.
11
12. Digital maturity matters. It matters
for every industry. But how can you
develop your own digital maturity?
We have identified common patterns
for how companies have built their
digital advantage. All Digirati invest
in the elements of transformation
management – vision, governance,
and engagement. They also perform
well on the digital intensity dimension.
But, Digirati status is more than simply
a combination of sound management
and digital capability – there is
something inherently different about
Digirati DNA that separates them from
the rest. Digirati make strategic choices
about how they will be excellent in
digital intensity. They build their digital
intensity through a set of common
patterns that exploit complementary
capabilities to deliver ever-greater levels
of digital value.
Strong transformation
management capabilities
We identified four key transformation
management practices that enable
companies to align their digital
efforts under a common vision and
coordination structure, and engage the
company in making that vision a reality.
These practices are:
ƒƒ Transformative vision. A strong
vision helps to frame in people’s
minds a picture of how the company
will be different in the future. It also
helps people understand what
former assumptions may no longer
be valid. Executives in the French
yellow pages, Pages Jaunes, seeing
their traditional print model lose
10% of revenues annually in the
face of digital search competitors
like Google, re-envisioned their
business. CEO Jean-Pierre Remy
helped employees understand they
were not in the business of producing
heavy yellow books. They were in
the business of connecting small
businesses to local customers.
Books were just a technology that
could be replaced by websites or
location-aware smartphone apps.9
ƒƒ Digital governance. Effective
investment rules and coordination
mechanisms improve efficiency
and ensure digital efforts are
moving in the right direction. When
Spanish media conglomerate Prisa
launched its digital transformation
program, one of the first initiatives
was to create a central digital unit
to coordinate and assist in building
digital businesses. Appointing a
Group-level Chief Digital Officer,
reporting directly to the CEO,
was a major signal. Local CDOs
were appointed in each division,
coordinating with the central unit.10
ƒƒ Engagement. When employees
are engaged in a shared vision they
help to make the vision a reality. They
offer less resistance to change and
often identify new opportunities that
were not previously envisioned. At
Codelco, engaging employees in the
digital vision was critical to succeed,
but difficult because of the firm’s
Conservative culture. Codelco’s top
management launched innovation
contests for employees in order
to foster a culture of change and
innovation in the firm.11
ƒƒ IT-Business relationships. Digital
transformation is about re-defining
big parts of the business, and IT
is essential in doing it. In some
companies, the CIO is the perfect
Building Digital Maturity:
Digital DNA
person to suggest and even drive
digital initiatives; in other cases
the digital agenda will be driven by
business or joint IT-business teams.
In any case, shared understanding
between IT and business executives
is critical to success.
By definition, both Conservatives
and Digirati perform well on the
four components of transformation
management intensity. What separates
Digirati, however, is Vision. Where
Conservatives focus on control and
alignment, Digirati have also developed
a strong transformative vision that
energizes employees to make change
happen.
12
13. Digirati make strategic
choices on where to excel
digitally
To understand how Digirati distinguish
themselves in digital intensity, we
examined six digital intensity domains:
customer experience, social media,
mobile, customer analytics, process
digitization and internal collaboration
(See figure 8 overleaf).
Our analysis of these capabilities
yielded two important findings. First,
although both Digirati and Fashionistas
have strong digital intensity, Digirati
distinguish themselves by excelling in
one or more areas (See figure 7).
Two-thirds of the Digirati exhibit one
or more domains of excellence. 70%
of Fashionistas have none, despite
comparable average levels of digital
intensity. This gap is even more
significant compared to Conservatives
and Beginners.
33%
27%
39%
DIGIRATIFASHIONISTAS
70%
11%
19%
BEGINNERS
87%
11%
2%
CONSERVATIVES
2%
79%
18%
No Excellence Mono Excellence Multi-Excellence
Note: charts represent percentage of companies that exhibit Excellence in one or more of the six digital
intensity domains. We define excellence as an average score > 6 (on a 1-7 scale) on all questions of a
given domain, after dropping the question with the lowest score.
Figure 7. Focus on Excellence
13
14. Second, there are clear patterns
in how and where Digirati invest
in these domains. Though every
company’s journey is unique, certain
combinations of investment appear
to be complementary. Companies
seem to combine digital capabilities to
Executives can use this model to build
their digital vision and define their digital
transformation journey: What do you
want to be famous for? Where to start?
What to do next? A careful analysis of
the company’s strategic assets can
help answering these questions.
For example, when Burberry initiated
its transformation journey in 2006, the
management team identified how to
build on its strategic assets to succeed
in the digital world. According to
CEO Angela Ahrendts, “we began to
develop our five-year strategy, asking:
exploit synergies between them. Figure
8 illustrates patterns we identified
between the six domains, plus data
integration. Although not an end in
its own right, data integration is – not
surprisingly – an important enabling
capability for a number of domains.
What do we have that our peers
don’t?… And we did have a number
of key differentiators in the luxury
sector we could exploit.” Building on
these strengths, Burberry decided to
transform its customer experience,
both in-store and online, including
advanced customer interactions in
social media. Internally, Burberry rolled
out a large ERP program to improve
data integration and find ways to excel
in operational processes. According to
Ahrendts, “we wanted to be as admired
and respected for the back end of our
business as for the front end.”
Analytics
-
-
-
-
Process Digitization
-
-
-
Internal Collaboration
-
-
-
-
Social Media
-
-
-
-
-
Mobile Channel
Data Integration
OPERATIONAL PROCESSESCUSTOMER-FACING PROCESSES
-
-
Customer Data
Other data (finance, supply-chain, operations)
Monitor reputation
Promote products and services
Sell products and services
Provide customer service
Build customer communities
Target marketing more
effectively
Personalize marketing
communications
Optimize pricing
Better qualify sales prospects
Automating processes
Monitoring operations in
real-time
Adaptability to external
changes
Active knowledge sharing
Use of internal social
networks and video
conferencing
Working anywhere, anytime,
any device
-
-
-
Promote products and
services
Sell products and services
Provide customer service
-
-
-
Ensure cross-channels
consistency
Personalize the customer
experience
Offer self-service
Customer Experience
Figure 8. Most Common Linkages Between Domains of Excellence
While Burberry started with the left
of our model and moved to the right,
other firms go the other way. Indian
paint manufacturer Asian Paints
started with process excellence and
moved leftward. Manish Choksi, CIO
and Head of Strategy, explained: “in
the early 2000s, our focus was on
internal efficiencies. We implemented
a traditional enterprise-wide ERP and
advanced supply chain. This was the
basis for further improvements in sales
and customer processes.”12
What do you want to
be famous for? Where
to start? What to do
next?
14
15. In both cases, strong data integration
is critical to linking customer-facing and
operational processes. Analytics are
often considered the next important
game changer. Companies mastering
these domains have many strategic
options both on the customer and
operational sides. In the mid-2000s,
Caesars Entertainment developed
analytics excellence that helped it to
offer highly personalized customer
experiences to its clients both online
and in its facilities (See page 16). In
the early 2010s, Caesars extended its
excellence to the mobile channel by
providing new services and information
and even engaging in personalized
location-based marketing.
Transforming Business
Models
Changing customer experience or
operational process – two key elements
of digital intensity – is difficult. Changing
a business model or globalizing
a company is even more difficult.
Little business model change
(averagescore<5ona 1-7scale)
Some business model changes
(averagescorebetween5and6 on a 1-7 scale)
Extensive business model changes
(averagescore>6ona 1-7scale)
DIGIRATI
BEGINNERS CONSERVATIVES
70%
20%
10%
FASHIONISTAS
38%
42%
20%
96%
4%
72%
17%
11%
Figure 9. Business Model Changes
Percentage of companies in each quadrant achieving business model changes through the use of digital technologies
Digirati are far better
than other types of
firms at changing their
business models.
Figure 9 shows the extent to which
companies in each quadrant are able
to execute these changes. Digirati are
far better than other types of firms at
changing their business models. They
are able to link their implementation
capabilities and leadership capabilities
to fundamentally transform how the
company operates. Companies in other
quadrants are less able to do so.
The business model changes we
analyzed included topics such as
adding value to products and services,
reaching new customers, linking
operational and customer-facing
processes in new ways, and even
launching new businesses. Digirati
often engaged in more than one
change. For example, when Volvo
developed automobile connectivity
features, a key goal was to deliver a
better experience to clients: drivers can
use a smartphone to lock the car, start
the heater remotely, or locate the car,
or buy roadside assistance and theft
protection services.13
But customer
experience was not the only objective.
Connectivity brings Volvo closer to
end customers who traditionally had a
relationship only with dealers. It enables
Volvo to augment its traditional B2B
model of selling cars to dealerships
with a B2C model of interacting directly
with customers.
15
16. Global resort and gaming firm Caesars
is a leader in improving customer
loyalty and revenues by enhancing
customer satisfaction. For more than
a decade, the firm’s award winning14
loyalty program, Total Rewards, has
used analytics to deliver an extremely
personalized experience for its
customers. Now, Caesars is extending
its data-driven approach with mobile.
Texpress: Upon arrival at one of
Caesars’ 40 properties, guests that have
opted into Caesars’ Texpress service
are invited to check-in via SMS. They
can bypass registration lines and get
their keys at the bell desk. Texpress also
combines mobile location data and SMS
to deliver timely and relevant special
offers. “If you’re at Paris, we could send
you two free admissions to the Eiffel
Tower ride or if you’re at Caesars Palace
after 6 p.m., we could send you an offer
for the Bette Midler show,” explains
Neal Narayani, director of e-mail and
mobile marketing for Caesars. “We
might have some additional show
tickets left over, so knowing where the
customer is, is a great way to get those
tickets pushed.”15
Apps: Caesars’ apps put more of its
services at guests’ fingertips during
their stay. The myTR app allows Total
Rewards members to keep track of
special offers, manage reward points
and even book rooms. The firm’s Las
Vegas or Atlantic City apps16
provide
access to a mobile concierge, real-time
event information, in-room dining, and
even wake-up calls.
Linking mobile and other channels:
Caesars has optimized its website to
make mobile access “sleek and easy
to navigate.”17
It is now integrating
mobile and physical promotions. For
example, a guest may scan a QR code
associated with a Jerry Seinfeld show
promotion, directing them to a video
about the show and a website where
they can buy a ticket.
According to one executive, “Most
decisions with our guests happen on
the casino floor. That’s where you have
to reach them.”18
Every phone in the
pocket of a Caesars guest represents
a unique opportunity to deliver
personalized service. Monica Sullivan,
VP of Advertising, explained, “There
will continue to be more opportunities
with mobile devices to engage with our
guests both when they plan travel and
while travelling.”19
“Social, local, and
mobile are huge areas of innovation
and places to win.”20
16
Caesars Entertainment:
Creating the Data-Driven Mobile Experience
17. CEOs and other senior executives are
increasingly asking practical questions
about what digital transformation
means for their businesses: How and
where do I start? How do I compare
with my peers or versus best practices?
Where do I invest? Although there is no
one-size-fits-all approach, our two-year
research program provides some useful
pointers for successfully executing
a digital transformation. Conducting
your digital transformation requires
taking action in four key areas: framing,
investing, engaging, and sustaining.
Frame the digital
challenge
As with all transformation, CEOs first
need to ensure that their senior leaders
have a common vision of how to
proceed. They need to understand why
to change, and how the future will be
better than the current situation.
The first step is to understand the
threats and opportunities that digital
represents to the organization. Will
existing ways of working continue to be
effective in a digital world? Are there
new opportunities available in customer
experience, operational processes
or business models? Assess your
firm’s digital maturity – both digital
initiatives undertaken and leadership
capabilities to drive transformation.
Then, you can take steps to move
depending on your current maturity
level. For example, Conservatives
need to energize the organization to
engage in valuable digital opportunities.
Fashionistas, on the other hand,
should aim to rationalize a myriad
of digital initiatives and add proper
transformation management practices
to unite functional silos.
A critical input to driving change is
a transformative digital vision.
Without a vision of change, employees
tend to do what they have been
doing for years, even if it is no longer
useful in the digital world. Executives
typically build visions with a focus on
operational effectiveness (inside-out),
superior customer experience and
sales (outside-in), or a combination of
the two. P&G, for example, uses a clear
inside-out vision: “Centralization and
digitization will improve productivity
and create deeper, more sustainable
organizational capabilities.”21
Whatever
the focus, the senior team should
have a common vision of how
to proceed. Only then can they
help to drive change throughout
the organization.
Focus Investment
To make the digital vision a reality,
executives must ensure their
organizations invest in the right
areas. This requires cutting back in
unproductive areas while ramping up
investment where it needs to occur.
Digirati differentiate themselves by
excelling in a few areas – customer
experience, social media, mobile,
customer analytics, process digitization
or internal collaboration – but rarely in
all. Executives must identify where
the company should excel now,
based on its existing capabilities and
strategic assets. Then, as capabilities
improve, they can refocus toward new
areas of excellence.
An important question is to decide if
you need to adapt your business
model. In some industries, there is
no choice. The structural changes
in postal services, for instance, are
calling for a radical rethinking of how
Conducting Your Own
Digital Transformation
Conducting your digital
transformation requires
taking action in four
key areas: framing,
investing, engaging,
and sustaining.
organizations do business. Companies
in other sectors, where the pace
of change is less rapid, have the
opportunity to create value by adapting
their business models – adding value
to products and services, reaching
new customers, linking operational
and customer-facing processes in
new ways, and even launching entirely
new businesses.
High-performing companies have
strong enterprise-level governance
around their digital initiatives. These
governance mechanisms aim to
increase the level of coordination and
sharing across silo-run digital initiatives.
Three key governance mechanisms
are common: dedicated committees,
shared units, and new roles including
Digital Czars. P&G created a shared
digital unit to accelerate the diffusion
of digital services across the global
brands. Starbucks recently hired a
Chief Digital Officer (CDO) to create
synergies among the many ways the
company engages customers.
17
18. Engage the organization at
scale
Putting the organization in motion
early is essential. CEOs and top
teams of digital leaders often send
an unequivocal signal that change
is necessary, and that it needs to
start immediately. The CEO of L’Oréal
declared that 2010 was the “Digital
Year.” L’Oréal’s CMO explained: “That
year was therefore one of intense
effort … with strategic digital initiatives
impacting all of our 23 brands in all
countries.”22
Leaders can use a wide
array of digital channels, such as
broadcast, web, video, and social
networks to generate continuous
two-way communication at scale.
Richard Branson, CEO of Virgin Group,
encourages customers to get in touch
with him through a custom hashtag on
Twitter.23
Equally important is to encourage
employees to identify new
practices and opportunities that
will advance the vision. Technology
firm EMC runs an annual innovation
competition through which employee
teams can suggest new initiatives.
Retailer Sainsbury runs a panel of
more than 2,000 employees who give
feedback every month about key issues
affecting the organization.24
Sustain the transformation
Successful digital transformation is
built on a foundation of core skills
and capabilities. Although more than
half of the executives we surveyed
believe their firms have the necessary
digital skills, nearly all believe that they
need to improve in some areas. To
fill skills gaps, consider hiring some
experienced executives who can
make an impact quickly and coach
existing employees. Redesign your
training programs to develop skills your
company needs, such as Intel’s “Digital
IQ” program that trains and certifies
employees in social media.25
Where
useful, partner with vendors to gain
skills and cross-sector experience that
complements your capabilities. Some
companies even acquire small firms
to gain specific digital skills such as
mobile marketing or analytics.
Beyond skills, executives must focus
on building and sustaining momentum
for change. Quantify and monitor
progress toward the digital ambition
through KPIs or digital scorecards.
Scorecards such as these have power
beyond just measuring the impact
of major investments. They help to
change the culture. For example, Prisa
uses a transformation index to drive
accountability and cooperation across
all employees in the organization.
No transformation can
be planned fully in
advance.
Finally, no transformation can be
planned fully in advance. As they
proceed in their transformation and
better understand the impact of
digital, executives should look for
opportunities to iterate and improve.
Executives at Asian Paints started their
transformation by unifying information
and centralizing basic order taking.
This created new opportunities to
refocus the role of salespeople and
to rethink the way that factories were
managed. These changes opened
up new opportunities to sell new
types of services and to reduce the
risk of expanding beyond the firm’s
geographical base in India. Each
investment, each year, and each
new technology creates new ways
to transform the business for those
executives who take time to envision
and act on the possibilities.
18
19. Nike, the world’s leading maker of
athletic shoes, apparel, equipment,
and accessories, has traditionally built
its business through a combination of
strong innovative products, intensive
brand-building, and efficient operational
processes. As new digital innovations
appeared, Nike was fast to capitalize in
all three areas.
Social Media: Nike entered social
media by building a presence on major
social media platforms around the
world, and then by launching social sites
dedicated to specific sports, products,
or major events such as the soccer
World Cup. Nike then went much farther
by developing the Nike+ concept for
runners. Nike+ monitors and tracks
each workout by connecting sensors in
shoes with devices such as the iPhone
and an internet platform. Runners can
share their performance online and
even receive customized advice from
coaches. Meanwhile, Nike gathers
detailed data about how customers
use its products. According to CEO
Mark Parker, “Connecting used to be,
‘Here’s some product, and here’s
some advertising. We hope you like it.’
Connecting today is a dialogue.”26
Mass-customizing products:
Nike’s custom shoe offerings allow
customers to design and order shoes
online, share designs with friends, and
vote on others’ designs. These social
media capabilities enable customers to
engage with the product online before
and after they buy. And listening to
these online conversations allows Nike
to identify popular designs and sense
new trends.27
Digital product design: Nike started
using 3D design tools to create new
products in the early 2000s. It then
diffused digital design and collaboration
capabilities to the whole supply chain.
The transition did more than improve
the firm’s design capability. It also
supported sustainability policies and
appealed to younger designers who
expected digital design capabilities.
CEO Parker explained “Materials,
componentry, construction methods,
manufacturing methods, the whole
digital revolution … We are embedding
all that thinking into the product.”28
Connecting digital silos: Nike was
innovating successfully in silos, but
missing potential synergies between
them. In 2010, Nike created a division
called Nike Digital Sport. The new unit
provides skilled resources, budget, and
coordination across the enterprise.29
The goal was to create a unified
consumer experience that can respond
to – and even shape – rapidly-evolving
consumer preferences. The unit now
leads most customer-facing digital
projects, releasing products under
the Nike+ brand. Teams of marketers,
designers and IT people work together
to develop digital innovations. They are
also finding ways to mine mountains
of highly accurate customer data – a
key strategic asset for marketing and
product development in the highly
competitive digital space. Looking to
the future, Nike plans to become ever-
closer to each of its customers around
the world.
19
Nike:
From Separate Initiatives to Firm-Level Transformation
20. Conclusion
The pace of technological change is accelerating, and executives in every industry
are paying attention. They face a vast set of alternatives for gaining digital advantage.
Unfortunately, they also hear a bewildering barrage of advice – sometimes conflicting
and often wrong – about how to move forward digitally. In our two-year study,
we discovered that many common perceptions about digital transformation were
actually myths (See figure 10). These myths can lead executives to make unfortunate
and costly decisions.
Fortunately, our global survey of nearly 400 large firms, supplemented by 157 in-depth interviews with senior executives in
more than 50 large companies, provides fact-based answers. First, digital maturity matters. Digirati are statistically significantly
more profitable than their competitors, and the markets reward them. Second, no firm is immune from digital transformation.
Every company in every industry already has competitors who are Digirati. Since it takes time to become digitally mature, senior
executives in every industry should take active steps immediately to consider the opportunities and threats available through
digital transformation. Finally, once you decide to act, you can map a strategy for your digital transformation based on common
transformation patterns distilled from the most digitally mature firms in our research.
The future is arriving quickly. Take action now to create your own digital advantage.
There are digital leaders outperforming their
peers in every industry today
Myth Reality
Digital is primarily about the customer experience
Digital primarily matters only to technology
or B2C companies
Let a thousand flowers bloom; bottom-up activity
is the right way to change
If we do enough digital initiatives, we will get there
Digital transformation will happen despite our IT
Digital transformation approach is different for
every industry and company
In our industry we can wait and see how
digital develops
Huge opportunities exist also in efficiency,
productivity and employee leverage
Opportunities exist in all industries with
no exceptions
Digital transformation must be led from the top
Transformation management intensity is more
important for driving overall performance
Business/IT relationships are key, and in
many companies they must be improved
Digital Leaders exhibit a common DNA
1
2
3
4
5
6
7
Figure 10. Myths and Realities of Digital Transformation
No firm is immune
from digital
transformation.
20
21. Banking 8%
Insurance 7%
Other Financial
Services 2%
Telecoms 6%
High Technology
7%
Manufacturing
14%
Pharmaceuticals
8%
7%
Retail 7%
Transportation
and Logistics
3%
Travel and
Hospitality
5%
Utilities 6%
Oil, Gas and
Chemicals
2%
Government 8%
Others 10%
Consumer
Packaged
Goods
a. Industries
Figure 11. Sample Metrics
Less than
$500 million
19%
11%
30%
11%
11%
Greater than
$20 billion
18%
$500 million -
$999 million
$1 billion -
$4.99 billion
$5 billion
$9.9 billion
$10 billion -
$20 billion
-
b. Company Size
CEO, President
11%
CFO
2%
CIO, CTO,
Head of
Technology
22%
CMO
5%
COO
2%
SVP, VP, Other
C-Level Executive
17%
Other Director
23%
Other
18%
c. Respondent Titles
Last year, we set out to understand
how leaders in large traditional
companies were gaining advantage
from digital technology. We identified
what companies are doing digitally, and
what it means to be digitally mature.
That study resulted in a research
report, “Digital Transformation:
A Roadmap for Billion-Dollar
Companies”30
that was named one
of the five most influential thought
leadership papers of the past decade.31
This year, we set out to quantify
the findings – to benchmark digital
practices around the globe, to identify
the most essential components of
digital maturity, and to examine the
links between digital maturity and
financial performance. We gathered
surveys from 469 senior executives in
391 large companies around the world.
(See figure 11).
We analyzed the surveys to identify
detailed drivers of digital maturity, and
classified firms in two dimensions.
Then, we went one step further.
For each of the 184 publicly traded
companies on our sample, we obtained
2011 financial performance from
COMPUSTAT, converted all figures to
US Dollars, and calculated standard
financial ratios such as EBIT margin,
Revenue per Employee, Price/Book
and Fixed Asset Turnover. Then,
controlling for industry and geography,
we conducted rigorous statistical
analysis to establish the relations
between digital maturity and financial
performance. We then conducted a
separate analysis to quantify average
financial performance gaps between
the four digital maturity quadrants.
The findings from our statistical
analyses, supplemented by our earlier
qualitative research and additional
interviews, serve as the basis for the
findings and recommendations in
this report.
About the Research
21
22. About the Authors
George Westerman, a Research Scientist in MIT Sloan’s Center for Digital Business (CDB),
is also faculty chair for the MIT Sloan executive course Essential IT for the Non-IT Executive.
George’s research examines the role of executive leaders in driving competitive advantage
from digital technology. George is co-author of two award-winning books, The Real Business
of IT: How CIOs Create and Communicate Value, and IT Risk: Turning Business Threats into
Competitive Advantage.
Prior to earning his Doctorate from Harvard Business School, he gained more than thirteen years
of experience in innovation and technology management.
georgew@mit.edu
Maël Tannou is a Managing Consultant at Capgemini Consulting. He has worked for the last
five years at the Paris Office and is currently a visiting scientist at the MIT Center for Digital
Business, working with the researchers.
He is specialized in Digital Transformation, and graduated from the French business school
Audencia.
mael.tannou@capgemini.com
Didier Bonnet is Senior Vice-President and Global Practice Leader at Capgemini Consulting.
Didier has more than 25 years’ experience in strategy development, globalization, internet &
digital economics and business transformation for large multinational corporations and private
equity firms. He has authored several research articles and is regularly quoted in the press e.g.,
WSJ, FT, the Economist and provides commentary for broadcasters such as the BBC, CNN,
Reuters and CNBC.
Didier graduated from a French Business School and holds a DPhil from Oxford University. He is
based in London.
didier.bonnet@capgemini.com
Patrick Ferraris is the Global Leader of the Technology Transformation practice at Capgemini
Consulting. With over 20 years of consulting experience, Patrick has supported large
multinational organizations in their digital strategy and transformation with a focus in Telecom,
Media, Internet, Insurance and Transportation.
He is an alumnus from M.I.T and Ecole Nationale des Ponts & Chaussées.
patrick.ferraris@capgemini.com
Andrew McAfee, a principal research scientist in MIT, studies the ways that information
technology affects businesses. He coined the phrase “Enterprise 2.0”; his book on the topic
was published in 2009 by Harvard Business School Press. He has also held appointments as a
professor at Harvard Business School and a fellow at Harvard’s Berkman Center for Internet and
Society. In 2008, he was named the 38th most influential person in IT.
amcafee@mit.edu
Jérôme Buvat and Michael Welch, from Capgemini Consulting, deserve a special mention for their outstanding
contribution in helping to put this research paper together.
We would like also to acknowledge the invaluable support of a number of colleagues at Capgemini Consulting who
have either helped with the data collection or have contributed with their ideas and insights. They are too numerous
to mention individually, but you know who you are. A warm thank you from the research team.
22
23. 1 See “Facebook: The Making of 1 Billion Users” – Bloomberg BusinessWeek, 2012.
2 ITU. Global Mobile-Cellular Subscriptions, Total and Per 100 Inhabitants, 2001-2011, ITU World Telecomunication /ICT
Indicators database. http://www.itu.int/ITU-D/ict/statistics/ Accessed 04Jan2012.
3 See “Volvo Car Corporation – from a B2B to a B2B+B2C Business Model” – MIT Center for Digital Business and Capgemini
Consulting, 2012
4 See “Codelco CIO transforms business with business process automation” – SearchCIO.com, 2011
5 Asociación Chilena de Empresas de Tecnología de Información A.G.
6 See “Digital Leadership: An interview with Angela Ahrendts, CEO of Burberry” – Capgemini Consulting, 2012
7 See “Digital Transformation: a Roadmap for Billion-Dollar Organizations” – MIT Center for Digital Business and Capgemini Consulting,
2011
8 Are Manufacturing Companies Ready to Go Digital? Capgemini 2012
9 See “Digital Transformation: a Roadmap for Billion-Dollar Organizations” – MIT Center for Digital Business and Capgemini Consulting,
2011
10 See “Digital Transformation: a Roadmap for Billion-Dollar Organizations” – MIT Center for Digital Business and Capgemini Consulting,
2011
11 See “Codelco CIO transforms business with business process automation” – SearchCIO.com, 2011
12 See “Digital Transformation Review n°2” – Capgemini Consulting, 2012
13 See “Volvo Car Corporation – from a B2B to a B2B+B2C Business Model” – MIT Center for Digital Business and Capgemini
Consulting, 2012
14 See “Master of Enterprise Loyalty Award” – Colloquy, 2012
15 http://www.lasvegassun.com/news/2010/jan/08/harrahs-launches-iphone-app-caesars-bypasses-check/
16 “Caesar’s Palace LV” app supports all Las Vegas locations: Bally’s Las Vegas; Flamingo Las Vegas; Caesars Las Vegas Casino;
Imperial Palace; O’Sheas Casino; Paris Las Vegas, Bill’s Gamblin’ Hall & Saloon and Rio All-Suite Hotel & Casino. Total Connect app
supports 3 Atlantic City locations.
17 http://www.caesars.com/mobile/wap
18 See “Take a Gamble on Technology” – News Mail, 2010
19 http://www.4hoteliers.com/4hots_fshw.php?mwi=6132
20 http://www.4hoteliers.com/4hots_fshw.php?mwi=6132
21 See P&G 2011 annual report
22 http://www.capgemini-consulting.com/ebook/Marc-Menesguen-Interview/files/assets/basic-html/page2.html
23 See “Social Media: Secret Of The Successful CEO” – Media Post, September 2012
24 See “The vital connection between staff and the bottom line” – Marketing Week, November 2011
25 See “Intel Planning Next Steps with Social Media Recruiting” – www.ere.net, November 2010
26 http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/
27 See Nike Digital Privacy Policy at http://help-en-us.nike.com/app/answers/detail/article/privacy-policy/a_id/16378/p/3897
28 http://www.fastcompany.com/1676902/how-nikes-ceo-shook-shoe-industry
29 Paragraph based on the article published at http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/
30 See “Digital Transformation: a Roadmap for Billion-Dollar Organizations” – MIT Center for Digital Business and Capgemini Consulting,
2011
31 In 2012 Source.com, along with their large membership base, conducted a multi-stage analysis of more than 22,000 papers. “Digital
Transformation” was ranked among the five most influential papers of the decade.
References
23
24. About Capgemini Consulting
About the MIT Center for Digital Business
Capgemini Consulting is the global strategy and transformation consulting organization
of the Capgemini Group, specializing in advising and supporting enterprises in significant
transformation, from innovative strategy to execution and with an unstinting focus on
results. With the new digital economy creating significant disruptions and opportunities,
our global team of over 3,600 talented individuals work with leading companies and
governments to master Digital Transformation, drawing on our understanding of the digital
economy and our leadership in business transformation and organizational change.
For more information: http://www.capgemini-consulting.com/
Follow us on Facebook: http://www.facebook.com/capgemini.consulting.global
Follow us on Twitter: @CapgeminiConsul
Founded in 1999, the MIT Center for Digital Business (http://digital.mit.edu) joins leading
companies, visionary educators, and some of the best students in the world together in
inventing and understanding the business value made possible by digital technologies.
We are supported entirely by corporate sponsors with whom we work in a dynamic
interchange of ideas, analysis, and reflection intended to solve real problems. The Center
has funded more than 50 faculty and performed more than 75 research projects focused
on understanding the impact of technology on business value, and developing tools and
frameworks our sponsors can use for competitive advantage.
101011010010
101011010010
101011010010
A major research initiative at the MIT Sloan School of Management
Transform to the power of digital