The document discusses the importance of collaboration between IT and business for successful digital transformation. It provides Starbucks as an example where the CIO, Stephen Gillett, collaborated closely with the CMO to set up a digital innovation unit called Digital Ventures. This unit fused IT and marketing expertise and delivered innovations like a mobile payments program that helped drive Starbucks' growth. The document emphasizes that digital masters like Starbucks have a shared understanding between IT and business of how digital technologies can increase productivity and competitiveness.
Digital Leadership Interview : Pablo Rodriguez, Director of Innovation at Tel...Capgemini
"I believe that opening up innovation, working
more with partners, and being agile enough to include everybody’s contribution represents a big shift in innovation in this digital age."
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
The digital transformation symphony when it and business play in syncRick Bouter
The document discusses how Starbucks successfully transformed digitally under the leadership of CIO Stephen Gillett from 2008 to 2012. Gillett collaborated closely with other executives to set up Digital Ventures, a new business unit focused on digital innovation. Digital Ventures delivered innovations like a mobile payments program that helped drive Starbucks' turnaround. The document argues that strong IT-business collaboration, as exemplified by Starbucks, is key to digital transformation success. It also notes that most organizations lack such collaboration between IT and business teams.
The Last Word: Enabling the Digitally Enhanced BusinessCognizant
For established companies, digital transformation isn't straightforward and simple. But by applying the following lessons, they can quickly embrace new thinking, strategies and skills that yield short-and long-term business results.
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
TechnoVision 2014: Technology Building Blocks for Digital TransformationCapgemini
Our TechnoVision 2014 introduces a fresh, provocative and innovative approach to today's business technology landscape. Here's a platform business and technology leaders can use to create a new, different dialogue on how these disruptions will affect the near- and long-term business environment, and how you can leverage them to exploit market opportunities for sustainable competitive advantage. TechnoVision 2014 is a strategic asset that can help drive Digital Transformation across your entire enterprise.
http://www.capgemini.com/technovision
The innovation game: Why and how business are investing in innovation centersRick Bouter
The document discusses why companies are increasingly launching innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk being disrupted themselves. Innovation centers are teams and sometimes physical spaces located in tech hubs that allow companies to leverage local startups, investors, and academics to accelerate innovation. They pursue goals like developing new products/services, designing business models, connecting with startups, and understanding customers. The document outlines different types of innovation centers and how they can speed up innovation processes.
Digital Leadership Interview : Pablo Rodriguez, Director of Innovation at Tel...Capgemini
"I believe that opening up innovation, working
more with partners, and being agile enough to include everybody’s contribution represents a big shift in innovation in this digital age."
In prior research, we showcased how digital leaders are using investments in digital technologies to transform key capabilities across customer experience and operations. However, in today’s volatile and disrupted world, capability leadership is not enough. As well as having the capabilities in place, organizations need to be nimble and flexible – dexterous – if they are to respond to ever-changing technology advances, emerging competitive disruptions, and changing customer needs. Enterprises that excel in both qualities – capability and dexterity – are digital organizations. This ‘digital elite’ reported that they outperformed their competitors on multiple key performance indicators including profitability, customer satisfaction, innovativeness and growth.
The digital transformation symphony when it and business play in syncRick Bouter
The document discusses how Starbucks successfully transformed digitally under the leadership of CIO Stephen Gillett from 2008 to 2012. Gillett collaborated closely with other executives to set up Digital Ventures, a new business unit focused on digital innovation. Digital Ventures delivered innovations like a mobile payments program that helped drive Starbucks' turnaround. The document argues that strong IT-business collaboration, as exemplified by Starbucks, is key to digital transformation success. It also notes that most organizations lack such collaboration between IT and business teams.
The Last Word: Enabling the Digitally Enhanced BusinessCognizant
For established companies, digital transformation isn't straightforward and simple. But by applying the following lessons, they can quickly embrace new thinking, strategies and skills that yield short-and long-term business results.
Digital Transformation Drives 2021 IT Investmentsrun_frictionless
Digital transformation efforts continue to dominate the technology landscape as more IT leaders recognize the need to update hardware and software infrastructure to accelerate strategic products and services for the business. SoftwareTrends conducted a survey of some 1,020 IT executives, directors, and managers between August and November 2020 to better understand the current state of digital transformation efforts across companies of all sizes—and forecast the technology investment plans for 2021.
https://runfrictionless.com/b2b-white-paper-service/
TechnoVision 2014: Technology Building Blocks for Digital TransformationCapgemini
Our TechnoVision 2014 introduces a fresh, provocative and innovative approach to today's business technology landscape. Here's a platform business and technology leaders can use to create a new, different dialogue on how these disruptions will affect the near- and long-term business environment, and how you can leverage them to exploit market opportunities for sustainable competitive advantage. TechnoVision 2014 is a strategic asset that can help drive Digital Transformation across your entire enterprise.
http://www.capgemini.com/technovision
The innovation game: Why and how business are investing in innovation centersRick Bouter
The document discusses why companies are increasingly launching innovation centers. It notes that 52% of Fortune 500 companies have been disrupted since 2000, so companies need to innovate or risk being disrupted themselves. Innovation centers are teams and sometimes physical spaces located in tech hubs that allow companies to leverage local startups, investors, and academics to accelerate innovation. They pursue goals like developing new products/services, designing business models, connecting with startups, and understanding customers. The document outlines different types of innovation centers and how they can speed up innovation processes.
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?
Delivering on the Promise of Digital TransformationBMC Software
This document discusses how digital transformation through technologies like cloud, big data, mobile and social media is changing how companies operate. It makes three key points:
1. Fully adopting these technologies requires transforming a company's operating model in a way that is comparable to the shift from steam to electric power a century ago.
2. For digital transformation strategies to succeed, CIOs must collaborate with business leaders to build a strategic vision, modernize infrastructure to integrate new and existing technologies, and restructure IT organizations to be more responsive.
3. Leading companies approach digital transformation as an enterprise-wide initiative requiring changes across the organization, not just from IT, in order to capitalize on new opportunities and stay
Using game mechanics to drive your digital transformationBen Gilchriest
Enterprise gamification - the application of game design techniques to a business setting in order to make tasks more fun and engaging - is garnering attention from business leaders the world over.
This paper from Capgemini Consulting defines the key elements of gamification and game design, the benefits it can drive and the common pitfalls to watch.
Leading Digital - Turning Technology into Business TransformationCapgemini
The annual festival of digital inspiration and innovation, hosted in Wales this week saw Capgemini partner with Welsh Government to showcase the Rural Payments Wales (RPW) project. As well as a stand demonstrating our solution, we also had a keynote by Cliff Evans and Matt Howell joined the panel session to discuss digital entrepreneurship. Capgemini were key sponsors; others included Accenture and Dell.
201308 Deloitte Tech Trends 2013 - Elements of Post Digital.pdf Francisco Calzado
This document provides a summary of the 2013 Technology Trends report from Deloitte. It identifies the main themes of the report as the "Elements of postdigital" which examines how the convergence of analytics, mobile, social, cloud and cyber technologies can help businesses achieve a "Postdigital Enterprise". The summary identifies the 10 trends covered in the report, which are split into 2 categories: "Disruptors" which can create positive disruption, and "Enablers" which are more evolutionary technologies. It provides a brief high-level description of each trend and notes that the report includes examples, perspectives and potential future directions for each trend.
Zappos has made customer service a core part of its organizational culture and DNA. It invests heavily in training all employees, including senior leadership, on customer service. This people-centric approach sees call center volume as a way to enhance customer experience rather than a problem. As a result, Zappos continually ranks among the best for customer service according to various publications. Its focus on customer service from the start, even at the cost of short term losses, has paid off through strong customer loyalty and word-of-mouth marketing.
Let the Games Begin Using Game Mechanics to Drive Digital TransformationCapgemini
Why Gamification Matters Now
Over-hyped or duly justified, enterprise gamification - the application of game design techniques to a business setting in order to make tasks more fun and engaging - is garnering attention from business leaders, world over.
Enterprise gamification is expected to exponentially increase over the next couple of years. Research indicates that by 2015, more than 40% of global 2000 organisations will have at least one application where gamification will be used.
We believe that enterprise gamification, when designed and implemented effectively, can help accelerate digital transformation by driving employee engagement and supporting change.
Microsoft Mobile Oy Story: IT Operations Fit for the 3rd PlatformHCL Technologies
This case study looks at how Microsoft Mobile Oy engaged with HCL to transform and manage its IT infrastructure operations. It examines the journey the two companies made to modernize the IT operations of this global high-tech manufacturing firm
Going Digital: General Electric and its Digital TransformationCapgemini
GE has undertaken a major digital transformation to transition from being an industrial equipment provider to a provider of data-driven services and solutions. Key aspects of GE's transformation include developing software and analytics products, opening its Predix big data platform to third parties, and attaching sensors to machines to capture performance data and provide analytics to improve efficiency. GE has also hired new digital leaders, set up centers of excellence for software and digital initiatives, and trained employees in startup methodologies to foster innovation. The transformation aims to allow GE to capitalize on data from its industrial equipment and maintain relevance in a changing industry.
The gap in skills needed to compete in an increasingly digital world is a major issue for most organisations. Recognising this gap is one thing, doing something about it is a much bigger challenge.
This White Paper contains a structured approach
that has been learned across different businesses
over 17 years.
Iron Mountain: The Essential Guide To Understanding Digital TransformationMighty Guides, Inc.
This document is a beginner's guide to digital transformation that provides insights from top experts. It discusses signs that it's time for a business to undergo digital transformation, such as having duplicate workflows, not utilizing data insights, and being constrained by legacy systems. The guide is organized into chapters covering goals, preparation, data assets, automation, and benefits. It aims to help organizations develop and implement successful digital transformation strategies.
McK - 'Transformer in chief'- The new chief digital officerSotiris Syrmakezis
The document discusses the changing role of the chief digital officer (CDO). The CDO role is no longer focused on basic digital capabilities, but is now responsible for comprehensive digital transformations across a company. Today's CDO must coordinate changes to how a company works and develop new business lines quickly. The document outlines five key skills needed for CDOs to drive successful digital transformations: 1) integrating digital into all aspects of business strategy; 2) obsessively focusing on customers; 3) building agility, speed and data usage; 4) extending networks outside the company; and 5) developing digital talent.
Digital Transformation ( DT) – the use of technology to radically improve and differentiate performance or reach of enterprises is becoming a hot topic for companies across the globe. Executives in all industries are using digital advances such as Analytic, Mobility, Social media and smart embedded devices and improving their use of traditional technologies such as ERP – to change customer relationships, internal processes, and value propositions. We continue to see how fast digital technology disrupted media industries in the past decade and it now spreading to all businesses irrespective of the domain and sectors.
How can top / senior management successfully lead digital transformation? While we all know and urge the team to get started on the digital transformation journey , few tell how to do it. This book gives a clear “ How” part .
I have also given in the summary few good case studies where digitization has impacted the business outcomes like Burberry , Asian Paints, Nike, Codelco, Starbucks , UPS etc.
The how part –Leading digital transformation
• Sharing a digital transformation vision across the enterprise ( not in piece mail – all businesses across the group need to envision the journey and be in sync)
• Gaining critical mass – inclusiveness
• Frame the digital challenges
• Focus investment on resources
• Sustaining the transformation
An excellent one to read.
The document discusses how financial services firms can adapt to a customer-centric world undergoing digital transformation. It outlines several key components for a successful digital transformation strategy, including commitment from top leadership, developing a large-scale customer-led vision, adopting the right organizational structure, building a team of diverse digital leaders, developing a compelling talent strategy, and aligning company culture around innovation. The overall goal is for financial institutions to attract and retain top digital talent that can help reinvent customer experience and compete against new digital disruptors.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
2015 q3 McKinsey quarterly - Raise your digital quotientAhmed Al Bilal
This document provides an overview of McKinsey Quarterly magazine issue number 3 from 2015. It includes summaries of several articles in the issue on topics related to digital transformation, machine learning, cybersecurity, business model innovation, and organizational redesign. It also lists additional short articles on social media influence, resource productivity, diversification strategies, emerging market acquisitions, industry trends in banking and oil/gas, and infrastructure projects. The document outlines the publication's leadership and details on how to access digital editions and engage with McKinsey Quarterly online.
The Digital Transformation Symphony: When IT and Business Play in SyncCapgemini
Digital Masters, such as Starbucks, that leverage digital technologies effectively, differentiate themselves from their peers by consciously striving to build a close relationship between IT and the business. However, Digital Masters are exceptions. The IT-business relationship in most organizations is often a fractious relationship rather than a marriage of equals. Business teams often find the IT department’s high costs and long implementation timelines unacceptable. In addition, IT leaders are often faulted for not speaking the language of business. Leading CIOs take this disconnect head on and try and fix it. Our research shows that leading CIOs take three key actions to align the IT department with the needs of the business: 1. redesign the IT department to unlock digital innovation; 2. create strong digital platforms; 3. rationalize IT Infrastructure to fund digital initiatives. We explore each of these actions in this research paper.
Are you a Digital Transformation leader? Can you create a high-performance strategy in the digital age? Have you got what it takes to avoid the tumbling barrels of distracting digital tactics, over hyped technology or the belief that your market is immune to disruption? Have you allocated the right resources to deliver a focused plan of transformation?
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.
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?
Delivering on the Promise of Digital TransformationBMC Software
This document discusses how digital transformation through technologies like cloud, big data, mobile and social media is changing how companies operate. It makes three key points:
1. Fully adopting these technologies requires transforming a company's operating model in a way that is comparable to the shift from steam to electric power a century ago.
2. For digital transformation strategies to succeed, CIOs must collaborate with business leaders to build a strategic vision, modernize infrastructure to integrate new and existing technologies, and restructure IT organizations to be more responsive.
3. Leading companies approach digital transformation as an enterprise-wide initiative requiring changes across the organization, not just from IT, in order to capitalize on new opportunities and stay
Using game mechanics to drive your digital transformationBen Gilchriest
Enterprise gamification - the application of game design techniques to a business setting in order to make tasks more fun and engaging - is garnering attention from business leaders the world over.
This paper from Capgemini Consulting defines the key elements of gamification and game design, the benefits it can drive and the common pitfalls to watch.
Leading Digital - Turning Technology into Business TransformationCapgemini
The annual festival of digital inspiration and innovation, hosted in Wales this week saw Capgemini partner with Welsh Government to showcase the Rural Payments Wales (RPW) project. As well as a stand demonstrating our solution, we also had a keynote by Cliff Evans and Matt Howell joined the panel session to discuss digital entrepreneurship. Capgemini were key sponsors; others included Accenture and Dell.
201308 Deloitte Tech Trends 2013 - Elements of Post Digital.pdf Francisco Calzado
This document provides a summary of the 2013 Technology Trends report from Deloitte. It identifies the main themes of the report as the "Elements of postdigital" which examines how the convergence of analytics, mobile, social, cloud and cyber technologies can help businesses achieve a "Postdigital Enterprise". The summary identifies the 10 trends covered in the report, which are split into 2 categories: "Disruptors" which can create positive disruption, and "Enablers" which are more evolutionary technologies. It provides a brief high-level description of each trend and notes that the report includes examples, perspectives and potential future directions for each trend.
Zappos has made customer service a core part of its organizational culture and DNA. It invests heavily in training all employees, including senior leadership, on customer service. This people-centric approach sees call center volume as a way to enhance customer experience rather than a problem. As a result, Zappos continually ranks among the best for customer service according to various publications. Its focus on customer service from the start, even at the cost of short term losses, has paid off through strong customer loyalty and word-of-mouth marketing.
Let the Games Begin Using Game Mechanics to Drive Digital TransformationCapgemini
Why Gamification Matters Now
Over-hyped or duly justified, enterprise gamification - the application of game design techniques to a business setting in order to make tasks more fun and engaging - is garnering attention from business leaders, world over.
Enterprise gamification is expected to exponentially increase over the next couple of years. Research indicates that by 2015, more than 40% of global 2000 organisations will have at least one application where gamification will be used.
We believe that enterprise gamification, when designed and implemented effectively, can help accelerate digital transformation by driving employee engagement and supporting change.
Microsoft Mobile Oy Story: IT Operations Fit for the 3rd PlatformHCL Technologies
This case study looks at how Microsoft Mobile Oy engaged with HCL to transform and manage its IT infrastructure operations. It examines the journey the two companies made to modernize the IT operations of this global high-tech manufacturing firm
Going Digital: General Electric and its Digital TransformationCapgemini
GE has undertaken a major digital transformation to transition from being an industrial equipment provider to a provider of data-driven services and solutions. Key aspects of GE's transformation include developing software and analytics products, opening its Predix big data platform to third parties, and attaching sensors to machines to capture performance data and provide analytics to improve efficiency. GE has also hired new digital leaders, set up centers of excellence for software and digital initiatives, and trained employees in startup methodologies to foster innovation. The transformation aims to allow GE to capitalize on data from its industrial equipment and maintain relevance in a changing industry.
The gap in skills needed to compete in an increasingly digital world is a major issue for most organisations. Recognising this gap is one thing, doing something about it is a much bigger challenge.
This White Paper contains a structured approach
that has been learned across different businesses
over 17 years.
Iron Mountain: The Essential Guide To Understanding Digital TransformationMighty Guides, Inc.
This document is a beginner's guide to digital transformation that provides insights from top experts. It discusses signs that it's time for a business to undergo digital transformation, such as having duplicate workflows, not utilizing data insights, and being constrained by legacy systems. The guide is organized into chapters covering goals, preparation, data assets, automation, and benefits. It aims to help organizations develop and implement successful digital transformation strategies.
McK - 'Transformer in chief'- The new chief digital officerSotiris Syrmakezis
The document discusses the changing role of the chief digital officer (CDO). The CDO role is no longer focused on basic digital capabilities, but is now responsible for comprehensive digital transformations across a company. Today's CDO must coordinate changes to how a company works and develop new business lines quickly. The document outlines five key skills needed for CDOs to drive successful digital transformations: 1) integrating digital into all aspects of business strategy; 2) obsessively focusing on customers; 3) building agility, speed and data usage; 4) extending networks outside the company; and 5) developing digital talent.
Digital Transformation ( DT) – the use of technology to radically improve and differentiate performance or reach of enterprises is becoming a hot topic for companies across the globe. Executives in all industries are using digital advances such as Analytic, Mobility, Social media and smart embedded devices and improving their use of traditional technologies such as ERP – to change customer relationships, internal processes, and value propositions. We continue to see how fast digital technology disrupted media industries in the past decade and it now spreading to all businesses irrespective of the domain and sectors.
How can top / senior management successfully lead digital transformation? While we all know and urge the team to get started on the digital transformation journey , few tell how to do it. This book gives a clear “ How” part .
I have also given in the summary few good case studies where digitization has impacted the business outcomes like Burberry , Asian Paints, Nike, Codelco, Starbucks , UPS etc.
The how part –Leading digital transformation
• Sharing a digital transformation vision across the enterprise ( not in piece mail – all businesses across the group need to envision the journey and be in sync)
• Gaining critical mass – inclusiveness
• Frame the digital challenges
• Focus investment on resources
• Sustaining the transformation
An excellent one to read.
The document discusses how financial services firms can adapt to a customer-centric world undergoing digital transformation. It outlines several key components for a successful digital transformation strategy, including commitment from top leadership, developing a large-scale customer-led vision, adopting the right organizational structure, building a team of diverse digital leaders, developing a compelling talent strategy, and aligning company culture around innovation. The overall goal is for financial institutions to attract and retain top digital talent that can help reinvent customer experience and compete against new digital disruptors.
Digital Disruption in Asset and Wealth ManagementCapgemini
The groundswell that is today impacting massively retail banking is now impacting all banking businesses. Opportunities offered by new digital technology such as Big data & analytics have not been fully explored yet by Asset & Wealth Management actors, and new technologies are mainly confined to improve shared platforms and reporting flexibility. But the turn might come soon now with the aggressive launches of Fintechs investing all parts of the banking business, including its most exclusive territories.
Asset and Wealth Management might be the next targets, facing the up-rise of new Robo-Advisors quickly gaining market
share on their devoted playground until now.
Traditional Asset and Wealth Managers should anticipate and react, building on their knowledge and assets in order to contain this new trend but this will require that they adapt and probably more globally rethink their business model, to avoid the commoditization of their activity.
The aim of this document is to present how Asset and Wealth Managers can take advantage of the digital revolution / emergence of Fintechs to become more competitive and attract more clients.
2015 q3 McKinsey quarterly - Raise your digital quotientAhmed Al Bilal
This document provides an overview of McKinsey Quarterly magazine issue number 3 from 2015. It includes summaries of several articles in the issue on topics related to digital transformation, machine learning, cybersecurity, business model innovation, and organizational redesign. It also lists additional short articles on social media influence, resource productivity, diversification strategies, emerging market acquisitions, industry trends in banking and oil/gas, and infrastructure projects. The document outlines the publication's leadership and details on how to access digital editions and engage with McKinsey Quarterly online.
The Digital Transformation Symphony: When IT and Business Play in SyncCapgemini
Digital Masters, such as Starbucks, that leverage digital technologies effectively, differentiate themselves from their peers by consciously striving to build a close relationship between IT and the business. However, Digital Masters are exceptions. The IT-business relationship in most organizations is often a fractious relationship rather than a marriage of equals. Business teams often find the IT department’s high costs and long implementation timelines unacceptable. In addition, IT leaders are often faulted for not speaking the language of business. Leading CIOs take this disconnect head on and try and fix it. Our research shows that leading CIOs take three key actions to align the IT department with the needs of the business: 1. redesign the IT department to unlock digital innovation; 2. create strong digital platforms; 3. rationalize IT Infrastructure to fund digital initiatives. We explore each of these actions in this research paper.
Are you a Digital Transformation leader? Can you create a high-performance strategy in the digital age? Have you got what it takes to avoid the tumbling barrels of distracting digital tactics, over hyped technology or the belief that your market is immune to disruption? Have you allocated the right resources to deliver a focused plan of transformation?
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.
Transformer in chief The new chief digital officerCliff Busse
The role of the chief digital officer (CDO) is changing dramatically and now demands new skills. The CDO must lead comprehensive digital transformations across the entire company rapidly. To succeed, the CDO must integrate digital into all aspects of business strategy, obsess over customers to drive change, and build agility through speed, data, and networks both internal and external. CDOs are judged by their ability to guide projects and deliver results.
Leveraging Design Thinking for Value Enhancement of Digital Transformation Innomantra
EXECUTIVE SUMMARY
Digital Transformation has been making waves and has found widespread recognition in most industries. What started as a driver of marginal efficiency is now rapidly shifting to become an enabler of fundamental innovation and disruption within an organization. The scope and scale of digital-driven change continue to grow immensely. However, organizations are still grappling with the nuances of the journey of digital transformation implementation, its implications or its impact. Digital transformation is not about adopting technologies but having an integrated approach involving people and leadership.
This white paper presents the context of digital transformation in manufacturing organizations. It redefines the process to incorporate important aspects such as breaking the silos, rescoping the challenge/ objectives, having an iterative approach and using design thinking to better understand the value implication of such an exercise. Case studies from clients have been used to illustrate the same.
Keywords: Design Thinking, Industry 4.0, Manufacturing industries, Smart factory, Value Assessment, Digital Transformation, Value Implementation
Organizing for digital why digital dexterity mattersRoel Palmaers
Digital organizations outperform competitors on key metrics like customer satisfaction and innovation by redesigning their organizations around digital technologies. The document discusses how companies like Starbucks, GE, and HSBC redesigned organization structures and processes to better harness digital opportunities. It also describes the four stages - stalling, initiating, engaging, and self-reinforcing - that companies progress through to become fully digital organizations. Finally, it identifies four dimensions critical for organizations to transform digitally: adopting a digital-first mindset, digitizing practices, empowering digital talent, and providing data and collaboration tools.
Organizing for digital why digital dexterity matters - capgemini consultingRick Bouter
- The document discusses how organizations that underwent major redesigns to take advantage of new technologies, like electrification and digitalization, saw large increases in productivity and performance.
- It provides examples of companies like Starbucks, GE, and HSBC that redesigned their organizational structures and processes to harness digital technologies and become "digital organizations", improving metrics like customer satisfaction and innovation.
- Digital organizations report better performance on key indicators compared to all firms, showing the competitive edge of undergoing digital transformation and redesign.
Organizing for Digital: Why Digital Dexterity MattersRick Bouter
- The document discusses how organizations that underwent major redesigns to take advantage of new technologies, like electrification and digitalization, saw large increases in productivity and performance.
- It provides examples of companies like Starbucks, GE, and HSBC that redesigned their organizational structures and processes to fully harness digital technologies, bringing together fragmented teams and standardizing systems.
- Research shows that "digital organizations" that have significantly invested in technology while redesigning themselves outperform peers on metrics like customer satisfaction and innovation.
This document discusses digital transformation strategies for businesses. It covers several topics:
1. It outlines BCG's four-phase approach to digital transformation: education, clarification, acceleration, and scaling up projects. This helps companies integrate new technologies and prepare for future innovations.
2. It also discusses an IBM study that found customer experience should be the central focus of digital transformation, not just products or processes. Data and cognitive processes can be used to better understand customers and adapt interactions accordingly.
3. IBM's pillars for supporting digital transformation are also summarized: design thinking, platforms, academies, and factories to experiment, innovate and industrialize digital changes.
Organizational Change Management: A Make or Break Capability for Digital SuccessCognizant
To realize the full benefits of digital transformation programs, businesses must manage the impact of digital change on their operational structure, culture and employees.
A digital strategy provides a roadmap for digital transformation by outlining investments in talents, processes, and customers to maximize competitive advantage. It specifies visions, actions, and tactics for becoming a digital business. Formulating a digital strategy involves three stages: defining value by gaining commitment, defining goals and investments; launching initiatives with light projects and assembling a digital team; and scaling up through organizing further initiatives, building capabilities, and adopting new operating models. A digital strategy guides a company's transformation through technology adoption and cultural shifts.
Digital transformation report sweden july 2017Ola Reppling
Digital Transformation Report 2017
@Qvartz and Microsoft have interviewed leading Swedish companies in many industries about Digital Transformation and the practical aspects of it. Understanding the What, Why and How of Digital Transformation. There are many commonalities across industries and between companies, but my key take-away is that there is no silver bullet. You can’t use the cookie cutter and use the same solution over and over again. Each company and situation is different and therefor each company approach needs to be different, both in What, How and timing. This report strengthens my view that Microsoft is in a unique position to support our customers as we continue to invest in both our platform, but more importantly, in our customer relationships.
When we are in a strategic partnership with our customers we can really support them in all stages of the Digital Transformation Maturity Curve. Many of our larger customers have different units/divisions that are in different stages of the maturity curve and Microsoft’s flexible, scalable and versatile platform and way of working allows us to support the customer as needed in throughout the company.
The report also reinforces the validity and importance of Microsoft’s four pillars of Digital Transformation: Engage your customer, Empower your employees, Optimize your operations and Transform your products.
The report will give you a benchmark of where Swedish customers are on their Digital Transformation journey and some insights into the What, Why and How.
The document discusses the role of the CIO in leading business innovation in the postdigital era, where forces like analytics, mobile, social, cloud, and cyber are enabling disruption. It argues that CIOs are uniquely positioned to catalyze value from these forces and change how business is done by harnessing their convergence. Specifically, the CIO can help businesses understand what is possible, provoke thinking beyond existing solutions, and realize transformation. While CIOs face both opportunity and existential threats from disruption, leading CIOs will rise to the challenge by forging new identities as postdigital catalysts. The document suggests some CIOs may take on roles like Chief Digital Officer to lead digital revenue sources and products.
The gap in skills needed to compete in an increasingly digital world is a major issue for most organisations. Recognising this gap is one thing, doing something about it is a much bigger challenge.
This White Paper contains a structured approach that has been learned across different businesses over 17 years.
This document discusses the importance and opportunities of digital transformation for organizations, especially in the banking and financial services sector. It defines what constitutes a truly digital organization as one that leverages digital technology strategically and uses a two-speed architecture to ensure stability while embracing agility and change. Managing the transformation journey requires dealing with cultural issues and having a long term view that integrates systems and data sources. Leadership buy-in and ongoing adaptation are also critical to the success and sustainability of digital initiatives.
The document discusses how CIOs are uniquely positioned to drive digital transformation within organizations. It outlines that CEOs are looking to CIOs to fill the role of chief digital officer and lead holistic digital strategies. The document then profiles the traits of successful digital CIOs, including having an innovation mindset, influencing stakeholders rather than controlling projects, and partnering closely with business units. It proposes using a digital maturity model to help CIOs assess their organization's capabilities and develop strategies to accelerate their digital journey.
On the Road to Digital: Practical EncountersCognizant
Even with digital initiatives entering the mainstream, many business and IT leaders are still encountering headwinds. Here are the five most common challenges organizations face and potential workarounds that can help captains of industry more quickly and effectively digitally enhance their businesses.
This document summarizes the key findings from a study of over 3,000 Chief Information Officers worldwide. The study identified four distinct "CIO Mandates" that CIOs take on based on their organization's view of IT's role: Leverage, Expand, Transform, and Pioneer. CIOs must understand their unique mandate and ensure IT supports the organization's business objectives. While the mandates may change over time, CIOs are well-positioned to help organizations cope with complexity and generate insights from data.
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2. 2
Successful Digital Transformation Hinges on a
Strong IT-Business Relationship
CIO leadership is essential for success in
a rapidly changing digital world.
To test the truth of this statement, we
need look no further than Starbucks.
When Stephen Gillett took over as CIO
of Starbucks in 2008, the company was
going through one of its most difficult
phases. Starbucks’ stock price had lost
half its value in less than two years and
its same-store sales were declining.
The company needed to do something
dramatic to rev up growth and its CIO
stepped up to the challenge. In early
2009, Stephen Gillett pitched the idea of
setting up a new business unit focused
on digital innovation and customer
engagement to the company’s executive
council. Gillett’s vision for the unit –
which was christened “Digital Ventures”
– involved fusing the marketing team’s
product and consumer knowledge with
Figure 1: Role of the IT-Business Relationship in Digital Transformation – Comparison of Digital Masters and
non-Masters
the IT team’s technical expertise, in order
to deliver a digitally enhanced customer
experience at Starbucks stores1
. This
was IT-business collaboration in action.
As the original architect of Digital
Ventures2
, Gillett laid the foundations
of a strong digital team. He hired
Adam Brotman, an entrepreneur with
experience in running digital startups. In
the years that followed, Digital Ventures
went on to deliver a range of innovations
that played a pivotal role in Starbucks’
turnaround. These included “Starbucks
Digital Network” that gave in-store
customers access to premium digital
content, as well as a mobile payments
program linked to the company’s loyalty
cards3
.
93%
92%
93%
75%
65%
61%
59%
53%
...a shared understanding of the role of IT in our organization
…a shared view of the role of IT as a competitive weapon for
our organization
…a common view about the prioritization of IT investments
Digital Transformation is likely to involve...
% of respondents agreeing with the statement
Digital Masters are companies that leverage digital technologies to transform their businesses
Digital Masters Non-Masters
…a shared understanding of how IT can be used to increase
the productivity of our organization's operations
Source: Capgemini Consulting and MIT Center for Digital Business, 2012
After Gillett moved on from Starbucks in
2012, Brotman took over as Chief Digital
Officer and head of Digital Ventures.
Under Brotman, Digital Ventures has
continued to drive Starbucks’ digital
ambitions. Today, the company’s stock
price has risen in value by more than
10-times in less than 6 years, from $7.17
per share in November 2008 to $75 per
share in March 20144
.
Starbucks’ dramatic success is a powerful
lesson in collaboration. As CIO, Gillett
collaborated closely with Starbucks CMO
Annie Young-Scrivner to develop technical
as well as go-to-market strategies. In
Gillett’s words, “Collaboration means IT
is integrated with customer offerings and
loyalty programs. You need both sides of
the business to bring these efforts to life.5
”
3. 3
Digital Masters
differentiate themselves
from their peers by
consciously striving
to build a close
relationship between IT
and the business.
47%ofCIOsinasurvey
reportedthattheir
CEOssawthemastheir
company’sdigitalleaders
–however,only15%ofthe
CEOsinthesamesurvey
namedtheCIOastheir
company’sdigital leader.
However, Digital Masters are exceptions.
The IT-business relationship in most
organizations is often a fractious
relationship rather than a marriage of
equals. Business teams often find the
IT department’s high costs and long
implementation timelines unacceptable.
In addition, IT leaders are often faulted for
not speaking the language of business. A
recent survey highlights this disconnect.
When CIOs were asked whether CEOs
saw them as their company’s digital
leaders, 47% responded in the affirmative.
However, when CEOs were asked about
their company’s digital leaders, only 15%
named the CIO7
. Such a disconnect
contributes to business executives
overlooking the IT department’s role in
Digital Transformation.
Our 3-year research with the MIT Center
for Digital Business also underscores
the significance of a strong partnership
between IT and the business in driving
successful Digital Transformation6
. Digital
Masters, such as Starbucks, that leverage
digital technologies effectively, differentiate
themselves from their peers by consciously
striving to build a close relationship between
IT and the business. This relationship is
founded on a shared understanding of the
impact of IT on driving productivity and
Figure 2: How Can CIOs Help Build a Strong IT-Business Partnership?
Redesign the IT
Department to Boost
Digital Innovation
Create a digital IT
unit with a
cross-functional
team structure
Rely on rapid
iterations to test
digital initiatives
Shorten software release
cycles to weeks, days
or even hours
Invest in building digital
platforms that enable
business teams to meet
their growth objectives
Provide an environment
for business teams to
innovate rapidly
Develop a Strong
Digital Platform
Take radical measures to create
a simpler and more cost-effective IT
infrastructure
Consolidate and standardize
IT assets and leverage
reusable components
Rationalize the IT
Landscape to Reinvest
Savings on Digital Innovation
Leading CIOs take this disconnect
head on and try and fix it. Our research
shows that these IT leaders take three
key actions to align the IT department
with the needs of the business (see
Figure 2). These actions help improve
the IT-business relationship over time.
We explore each of these actions in the
sections that follow.
competitive advantage. Ninety-three
percent of the Digital Masters in our
research reported that their business
and IT teams shared a common
understanding about the role of IT in the
organization, in contrast to 65% of non-
Masters (see Figure 1).
Source: Capgemini Consulting Analysis; “Leading Digital: Turning Technology into Business Transformation”, George Westerman, Didier Bonnet & Andrew McAfee, Harvard
Business Review Press, October 2014
4. 4
The use of DevOps
practices helps break
down silos between
IT development and
operations teams and
leads to more rapid
deployment cycles.
Digital initiatives
call for a new working
model that harmonizes
the expertise of IT
and business teams
and promotes greater
dialogue and mutual
understanding between
them.
Redesigning the IT Department Unlocks
Digital Innovation
Leading CIOs recognize that digital
initiatives need to be run at a distinctly
differentrhythmcomparedtotraditionalIT
programs. While traditional IT programs
follow stable and predictable lifecycles
that last several years, digital initiatives,
especially those involving customer-
facing processes, have a much shorter
time-to-market and need to be more
flexible and adaptive to change. Leading
CIOs redesign the IT department so
that it can run at dual-speed. In addition
to ensuring that traditional projects
continue to run reliably, they develop
strategies that support the rapid rollout
of digital initiatives.
Create a Digital IT Unit with
a Cross-Functional Team
Structure
Successful Digital Transformation requires
that both IT and business teams work
together towards a common vision
and goal. This in turn requires a shift
from the traditional IT-business working
relationship, where the two teams operate
separately, with business providing
the requirements and IT delivering the
technology. Digital initiatives call for a
new working model that harmonizes
the expertise of both teams and
promotes greater dialogue and mutual
understanding between them.
Leading CIOs help create such a working
model by setting up a digital IT unit
with a cross-functional team structure.
Members from both IT and business
teams work together as part of the digital
IT unit, with common budgets, KPIs
and objectives. Such a cross-functional
team structure brings a business focus
to digital initiatives. It also serves to
reduce costs and duplication of efforts,
and speeds up time to market for digital
initiatives8
. UK-based Lloyds Banking
Group, for instance, owes much of its
success with digital retail banking to its
digital services unit. The unit is led jointly
by a senior IT executive and a senior
business executive, which ensures
that digital initiatives are developed
holistically. Not only does the unit deliver
the technology solutions for the bank’s
new digital retail banking initiatives, but
it also ensures that business processes
are adapted appropriately.
Use a Test-and-Learn
Strategy for Digital
Initiatives
Leading CIOs rely on experimentation to
rapidly test the business impact of digital
initiatives before they initiate large-scale
deployments. For instance, in 2012, then
Philips CIO Jeroen Tas set up the “Digital
Accelerator Lab” to speed up digital
innovation. The lab creates use-cases
for connected products and rapidly
builds prototypes of devices and apps9
.
These prototypes then go through user
testing to gauge customer responses10
.
As head of the lab, Tas worked closely
with business teams to develop and take
new product ideas to market. The lab
served to inter-connect various business
units within Philips, which otherwise
operated in silos. It brought together
their expertise to develop solutions that
offer customers a holistic connected
experience11
.
Graduate to a Continuous
Deployment Model for
Digital Initiatives
Successful Digital Transformation
requires a highly agile approach to
software development. Software
development methodologies such as
DevOps12
help organizations break
down silos between IT development
and operations teams so that they
can collaborate more effectively.
DevOps helps align development and
operations processes to common
business objectives. It ensures that
both teams operate more smoothly
together. This in turn leads to the
early detection and correction of
problems and results in more rapid
software releases. A global survey
of IT executives revealed that
teams that were following DevOps
practices for the longest duration
shipped code up to 30 times faster
than their peers13
. For instance, the
use of DevOps has enabled online
payments firm PayPal to reduce
the time taken to deploy apps from
weeks to days14
. At Lloyds Banking
Group, which has more than 10
million Internet banking users and
processes 110 million transactions
each day15
, the use of DevOps
has helped accelerate the pace of
Digital Transformation. Nick Stemp,
5. 5
principal lead architect at Lloyds
Banking Group highlights how
the use of DevOps has improved
software development efficiency at the
bank: “We’re seeing more defects in
development, which is where we want
to see them. People doing the testing
can do the fix, which saves us doing the
fixes later in the lifecycle [where it is more
costly]16
”
UK Government Digital Service:A Success Story in IT-led Digital Transformation
In late 2010, the UK Government embarked on a Digital Transformation journey when it announced that public services
should be delivered by default through digital channels. The government’s decision was in response to a report published
by Martha Lane Fox, then UK Digital Champion and one of the most influential leaders in UK IT. The report called for a
radical improvement in the government’s online services to provide higher quality and more convenient 24/7 services to
users.
Defining a Clear Digital Strategy and Vision: The government set up the Government Digital Service (GDS)
in 2011, by merging its existing, disparate digital teams. GDS was built with the vision to be “the center for digital
government in the UK, building and championing a ‘digital culture’ that puts the user first and delivers the best, low cost
public services possible.”
Laying Down a Strong Governance Framework for Transformation: Central to GDS’ governance strategy
was the setting up of a dual-speed IT structure. GDS consisted of two distinct teams - the digital unit, which was tasked
with the delivery of digital services, and the technology team, which was responsible for running traditional or “Mission IT”.
Mission IT comprised Line of Business applications that ran the internal processes of individual departments. GDS also
developed a comprehensive framework for the management of the two teams and their interactions.
Adopting a Highly Agile Approach to Software Development: GDS needed to move swiftly in order to meet its
ambitious goal of fully digitizing 25 of the most crucial public services by March 2015. To achieve its goal, GDS developed
a comprehensive “Government Service Design Manual”. The manual offered customized resources to all digital teams,
on the merits of using methods such as DevOps and Agile to achieve operational excellence. In addition, Agile coaches
were employed to complement the work of transformation teams. As a result of these initiatives, the GOV.UK website saw
more than 1500 application updates in its first year alone.
The GDS has so far transformed 22 of the most significant UK public services. The overall transformation is expected to
deliver between £1.7 billion and £1.8 billion in annual savings to the government as well as service users.
Source: GOV.UK Press Release, “Digital by default proposed for government services”, November 2010; Computer Weekly,
“UKtech50: The most influential people in UK IT – the top 10”, November 2010; GOV.UK Blog, “Introducing the Government Digital
Service”, March 2011; GOV.UK Policy Paper, “Government Digital Strategy”, November 2012; Government Digital Service Blog,
“Rebalancing technology across government”, October 2013; GOV.UK, “Digital Transformation”, October 2014; GOV.UK Corporate
Report, “Government Digital Strategy: annual report 2013”, December 2013; GOV.UK Corporate Report, “Government Digital
Strategy: quarterly progress report October 2014”, October 2014; GOV.UK, “Digital by Default Service Standard”, 2012; GOV.UK,
“Government Service Design Manual”, 2012; GOV.UK Research and Analysis, “Digital Efficiency Report”, November 2012
A strong IT department, revamped
to meet the needs of the digital age,
provides a strong foundation for an
organization’s future growth (see insert
on UK Government Digital Service).
6. 6
At Kellogg’s, CIO
Brian Rice collaborated
closely with the CMO
to build a standardized,
global web-based
platform that helps
marketing teams
target customers more
effectively.
In recent years, a successful platform has
emerged as a key source of competitive
advantage for organizations.
A successful example of the power of
a platform is Amazon. By organizing
itself internally around a service-
oriented architecture, Amazon ensured
that internal teams as well as external
partners could rapidly build their own
applications using Amazon’s open APIs.
A platform-focused strategy has helped
Amazon create a vast ecosystem of
services, allowing it to scale much more
rapidly.
A Strong Digital Platform gives Digital Initiatives
a Shot in the Arm
Lloyds Banking Group:Reinventing IT for the Digital Age
In 2006, Lloyds Banking Group (then Lloyds TSB) began to realize that its online retail platform could not scale to meet
its future needs. Soon after, following a merger with Halifax Bank of Scotland, the bank’s online banking customer base
expanded dramatically from 1.5 million to 5 million. At this point, the bank was faced with two options. The first option was
to undertake a re-platforming exercise that would modernize critical aspects of the platform so that it could meet current
requirements. The second option was to build an entirely new platform that would last for decades but require a huge
upfront investment. The bank chose the second option. The decision proved to be the right one as the platform has played
a vital role in the bank’s Digital Transformation success. Today, Lloyds Banking Group has more than 10 million active digital
customers and accounts for £1.5 trillion in digital commercial client transactions per year.
Lloyds Banking Group’s Digital Transformation journey offers many useful lessons. These include:
Realizing the Central Role of IT in Digital Transformation: It is no longer sufficient for IT to just align its priorities
with business objectives. IT must be central to a firm’s Digital Transformation journey. LBG’s executive team realized this
very early. They asked a senior IT executive, Zak Mian, and a senior business executive, Ashley Machin, to set up a digital
team and work together to speed-up digital innovation.
Creating a Successful IT-Business Relationship: Having business and IT work together on digital initiatives
ensured that they were both equally involved in creating the blueprint for the bank’s Digital Transformation. It brought down
the “walls” that traditionally existed between the teams, promoted dialogue and created greater mutual understanding and
trust between IT and the business. This in turn reduced costs and process delays, and accelerated time-to-market for
digital initiatives.
Building a Successful Digital Platform to Drive Future Growth: The digital team built a scalable digital platform
as the first step towards the bank’s Digital Transformation. The team then extended the platform to new digital services,
such as credit card processing. The success of the platform initiative led to other businesses, such as mortgages and
commercial products, seeking out Mian and Machin to help with the Digital Transformation of their businesses.
Enable Business Teams to
Rapidly Rollout New Digital
Initiatives
Leading CIOs invest in building
successful platforms that can act as
engines of growth for their organizations.
At Kellogg’s, for instance, CIO Brian
Rice collaborated closely with Kellogg’s
CMO to build a standardized, global
web-based platform that supports
the marketing teams at Kellogg’s in
numerous ways. For instance, the
Source: Leading Digital: Turning Technology into Business Transformation”, George Westerman, Didier Bonnet & Andrew McAfee, Harvard
Business Review Press, October 2014; Harvard Business Review Blog Network, HBR Blog “Do You Have the IT For the Coming Digital Wave?”
by Didier Bonnet, August 2013; Lloyds Banking Group, “Group Overview”, 2014; Lloyds Banking Group, “Strategic Update, Presentation to
analysts and investors”, October 2014
7. 7
At Dell, CIO Adriana
Karaboutis’s team built
a self-service platform
that allows business
teams to test their own
product ideas.
Provide an Environment for
Business Teams to Test and
Build Digital Solutions
Leading CIOs empower business teams
to build their own solutions. Rather than
trying to own all IT and implementation
decisions, CIOs such as Dell’s Adriana
Karaboutis are comfortable with sharing
control with business teams. At Dell,
Karaboutis’s team built a self-service
platform that allows business teams
to test their own product ideas. The IT
department then helps business teams
take their ideas to production. Karaboutis
describes the rationale behind her focus
on self-service in these words: “The line
between IT and business is blurring fast.
The CIO who tries to maintain walls and
Platform
Benefits
Stimulates
Ecosystem Growth
Provides a
Base for
Advanced
Analytics
Helps Balance
Centralization
versus
Decentralization
Enhances
Customer
Engagement
Spurs Innovation
through
Self-Service
Enables Rapid
Expansion of
Digital Services
Offers open APIs to encourage
partners to rapidly develop new
products and services on its
platform
Built a self-service platform to
enable business teams to
develop their own product ideas
Built a scalable and robust retail
banking platform that enabled
the rollout of several new digital
services
Developed a crowdsourcing
platform to seek product ideas
from its online customer
community
All websites globally are served
by a single global platform – the
platform allows local units to
customize web content and
marketing campaigns
Built a global web-based platform
that provides marketing teams with
a single view of all customer data,
which enables more personalized
messaging
Source: “Leading Digital: Turning Technology into Business Transformation”, George Westerman, Didier Bonnet & Andrew McAfee, Harvard Business
Review Press, October 2014
Figure 3: What are the Benefits that CIOs can drive with a Strong Digital Platform?
platform provides marketing teams
with a single view of all customer data,
which allows them to target customers
with more personalized messaging. The
platform also enables marketing teams
to rapidly rollout new company-wide
initiatives. For instance, the platform
has enabled Kellogg’s to expand its
loyalty program online, which allows
consumers to redeem their reward
points electronically17
.
At Lloyds Banking Group, senior IT
executive, Zak Mian, worked closely
with senior business executive, Ashley
Machin to build a platform that has
played a foundational role in the bank’s
digital retail banking success (see insert
on Lloyds Banking Group).
tries to own everything is the CIO who
will go down quickly. This is now about
a CIO who enables environments and
allows choice and self-service as we
move forward and look at the next best
innovations.18
”
8. 8
Leading CIOs radically
rationalize existing
IT infrastructure, so
that the resultant cost
savings can be diverted
to digital innovation.
Rationalizing IT Infrastructure Provides Sustained
Funding for Digital Initiatives
Digital innovation requires sustained
funding. Our research with the MIT
Sloan Management Review shows
that lack of funding is one of the most
significant organizational barriers to Digital
Transformation (see Figure 4)19
.
% of respondents
No “burning platform” / no sense of urgency
Not enough funding
Limitations of IT systems
Roles and responsibilities are not clear
Lack of vision
Unclear business case
Business units implementing independently in silos
Culture not amenable to change
Lack of leadership skills
Regulatory concerns
Others
40%
33%
29%
28%
28%
27%
23%
19%
17%
9%
5%
Figure 4: Organizational Barriers to Digital Transformation
Leading CIOs focus on improving the
efficiencyoftraditionalIToperations,sothat
the resultant cost savings can be diverted
to digital innovation. They do so by radically
rationalizing existing IT infrastructure in
order to reduce the complexity of the IT
landscape. This complexity stems from
the large number of redundant and heavily
customized systems and applications that
organizations accumulate over time. Infact,
in a survey of senior IT leaders conducted
by Capgemini in 2014, 48% of respondents
reported that their organizations had more
applications than the business actually
required20
. In order to reduce complexity
dramatically, leading CIOs opt for massive
IT consolidation and simplification
initiatives. Consolidation involves a
planned reduction in IT assets either by
centralization of infrastructure or by the
use of fewer, more efficient systems. IT
simplification, on the other hand, involves
the standardization of applications and
tools, and the use of reusable assets as
far as possible.
For Phil Jordan, Group CIO at Telefonica,
consolidation and simplification of IT
infrastructure have been two of the
key pillars of Telefonica’s global IT
strategy. Under Phil’s leadership, Telefonica
decommissioned 1,139 applications in
2013 alone. The number of systems in use
has reduced from 7,000 to 4,200 in three
years. Phil has also launched programs on
multi-country consolidation of IT assets,
as well as one of the largest private Cloud
implementations in Europe. The use of
off-the-shelf Cloud-based solutions
has helped Telefonica cut costs
significantly21
. Jordan’s focus on IT
rationalization has contributed to a €14
billion debt reduction for Telefonica which
helped the company return to revenue
growth22
. It has also helped drive
business transformation at Telefonica
by strengthening the company’s digital
capabilities in self-care and marketing23
.
Source: Capgemini Consulting and MIT Sloan Management Review, “Embracing Digital Technology: A New Strategic Imperative”, October 2013
9. 9
Under CIO Phil Jordan’s
leadership, Telefonica
decommissioned 1,139
applications in 2013
alone.
At semiconductor major Analog Devices,
CIO Peter Forte launched a three-
year effort to rationalize the company’s
legacy infrastructure in order to deliver
savings that could be used for new
product development. Forte’s focus on
virtualization resulted in millions of dollars
of savings, which were poured back into
innovation. As a result of the CIO’s efforts,
the proportion of the IT budget spent on
maintaining legacy infrastructure has
reduced from over 80% to 62%24
.
The role of IT in enabling Digital
Transformation cannot be overstated.
However, it is only when IT and
business come together that true Digital
Transformation can be achieved. CIOs
can play a vital role in making this
possible. By continually striving to align
the IT department with the needs of
the business, CIOs can contribute
significantly towards strengthening the
IT-business relationship and helping their
organizations advance confidently into
the digital future.
10. 10
1 InformationWeek, “Starbucks’ Stephen Gillett: InformationWeek’s IT Chief of The Year”, December 2011
2 Forbes.com, “Stephen Gillett’s Rise From CIO Of Starbucks To COO Of Symantec”, July 2013
3 Forbes.com, “What Best Buy Will Gain from Starbucks’ Loss”, March 2012
4 Starbucks.com, “Starbucks Coffee 2014 Annual Meeting of Shareholders – Howard Schultz”, March 2014
5 Microsoft, “IT and Marketing Finding Common Ground”, April 2011
6 Capgemini Consulting and MIT Center for Digital Business, “The Digital Advantage: How Digital Leaders Outperform their
Peers in Every Industry”, November 2012; “Leading Digital: Turning Technology into Business Transformation”, George
Westerman, Didier Bonnet & Andrew McAfee, Harvard Business Review Press, October 2014
7 InformationWeek, “CIOs Face Digital Leadership Problem”, October 2014
8 Harvard Business Review Blog Network, “Do You Have the IT For the Coming Digital Wave?”, August 2013
9 CIO.com, “Former Philips CIO Reveals His Path to Becoming CEO”, June 2014
10 FastCompany.com, “How Philips’ Digital Accelerator Lab Is Hacking Google Glass For Surgeons”, January 2014
11 Live Mint, “Philips eyes Google Glass app for doctors”, March 2014
12 DevOps - DevOps (development and operations) is an enterprise software development concept. The goal of DevOps is to
change and improve the relationship between development and IT operations teams by advocating better communication
and collaboration between them.
13 PuppetLabs.com, “5 KPIs that Make the Case for DevOps”, July 2013
14 OpenNetSummit.org, “DevOps and OpenStack/SDN – a real world perspective”, March 2014
15 ComputerWorld HK, “Lloyds Bank Cuts App Development Costs with Service Virtualization”, November 2013
16 ComputerWorld HK, “Lloyds Bank Cuts App Development Costs with Service Virtualization”, November 2013
17 CIO.com, “The CMO and CIO Relationship at Kellogg”, July 2014
18 CIO.in, “CIOs Who Try to Maintain Walls Shall Perish: Adriana Karaboutis : Adriana Karaboutis”
19 Capgemini Consulting and MIT Sloan Management Review, “Embracing Digital Technology: A New Strategic Imperative”,
October 2013
20 Capgemini, “The Application Landscape Report 2014”, 2014
21 Business Cloud News, “Telefónica Group CIO: Using cloud to regain ground lost to OTT players”, August 2014
22 CIO Magazine, “CIO 100 – 2014 - #2 – Phil Jordan, Telefonica”, 2014
23 Telefonica, “Telefónica January-June 2014 Results Conference Call Transcript”, July 2014
24 ComputerWorld, “How to balance maintenance and IT innovation”, October 2013
References