Velocity and Volatility: Culture and Strategy in the Digital Age

UNLEASH YOUR DIGITAL VISION | #WITHOUTCOMPROMISE
Ethan Pack
Director, Enterprise Architecture
Stewart Title
September 14, 2017
© 2017 Software AG. All rights reserved. For internal use only
VELOCITY AND VOLATILITY
CULTURE AND STRATEGY IN THE
DIGITAL AGE

2 | © 2017 Software AG. All rights reserved. For internal use only
VELOCITY

3 |
DIGITAL BUSINESS IN FINANCIAL SERVICES
FINTECH AND INSURTECH IS RAISING THE BAR FOR SPEED

VOLATILITY

5 |
NUMEROUS MARKET AND REGULATORY DISRUPTORS
• New FinTech entrants are attempting to disrupt traditional financial institutions
• Demands for compliance, performance, integration, and automation
• Augmented and Virtual Reality truly blurring physical and digital worlds
• Remote locks, cameras, and Internet of Things change real estate and security
• Autonomous vehicles will change auto financing and insurance landscape
• Lenders are radically changing the mortgage approval process
• Regulators demand that consumers be informed
• Millennials demand traditional and digital experiences
• Major industry players placing big bets and digging in for turbulent times
• The “Unbanking of America”

6 |
DOING NOTHING IS MORE RISKY THAN DIGITALIZING

7 |
PSST… YOU DON’T HAVE TO REPLACE LEGACY SYSTEMS
STRANGLE THEM INSTEAD
Legacy System

8 |
THE DIGITAL BUSINESS PLATFORM
ENABLES LEGACY MODERNIZATION AND INTEGRATION

ON CULTURE AND STRATEGY
Examining the relationship between these two
constructs and their impact on digital transformation

We really need a digital strategy.
I want us to be the
Uber of our industry!
But, we have too many
other priorities to address.
What’s the expected ROI
on this digital stuff?
How do we even get
started on that?

Culture eats anything
and everything all day
- Me, Seconds Ago

The Organization and its Culture

Our common objective is to
help our organizations address
the Digital Imperative

“USER & CUSTOMER EXPERIENCE”
“ANALYTICS”
“INTEGRATION”
“APIs, AI, & IOT”

Business-As-Usual Projects
The “Safe Stuff”
Digital Transformation Projects
The “Scary Stuff”

CHANGE
MANAGEMENT
COMMUNICATION AND
COLLABORATION
COMMON
VISION
COMMITTED
WORKFORCE

COMMUNICATION AND COLLABORATION
Listening to all voices and making transparent
decisions in the best interest of the organization

23 |
Machine-Machine Machine-Human/Human-Machine
• Everything is a silo
• Business capabilities duplicated
• Increased complexity
• Decreased agility
• Poor user experience
• Dumb; not predictive or prescriptive
• Impersonal
• Burdensome
COMMUNICATION HAS BEEN SUFFERING AT ALL LEVELS
SUBPAR INTERACTIONS BETWEEN MACHINES AND HUMANS
Human-Human
• Political
• Fear-based
• Incomplete/Erroneous
• Unempathetic

Any organization that designs a
system (defined broadly) will
produce a design whose
structure is a copy of the
organization’s communication
structure.
- Melvin Conway

25 |
Organization Communication Is… The Systems Will Be…
• Siloed
• Inconsistent
• Fragmented
• Poor
• Customer Oriented
• Holistic and Ecosystem Aware
• Mindful of Data Governance
• Security-Minded
• Siloed
• Inconsistent
• Fragmented
• Poor
• Customer Oriented
• Open and Integrable
• Data Quality Enablers
• Security-Minded
CONSIDERING CONWAY’S LAW
IMPLICATIONS

Is This Your Organization Structure?

27 |
COMMUNICATE USING DATA
REMOVE EMOTIONS FOR SOUND BUSINESS DECISIONS

28 |
SUPPORTS BUSINESS-OUTCOME-ORIENTED ARCHITECTURE

COMMON VISION
Establishing the destination and helping all parts
of the organization execute the journey

I prefer Las Vegas.Sign me up for that!
Disney World!
Disney World!Disney World!
Disney World!
Disneyland is closer
for me.
Disney World would
be fun.
New York City, baby!
ESTABLISH THE DESTINATION
BUY-IN IS KEY
I vote Disney World.
Which one is in
Florida, again?
Cancun!
No beaches.

35 |
SUPPORTS BUSINESS-OUTCOME-ORIENTED ARCHITECTURE

CHANGE MANAGEMENT
Mobilizing the enterprise from current to future when
responding to disruptions as well as creating them

“HE KNOWS CHANGES AREN’T PERMANENT
BUT, CHANGE IS”
- RUSH, TOM SAWYER

38 |
DIGITAL ECOSYSTEMS REQUIRES NEW MINDSET
FOCUS ON CUSTOMERS AND PARTNERSHIPS
Source: Gartner

39 |
TRANSFORMING FIRMS HAVE POTENT DIGITAL DNA
SOLID DIGITAL BUILDING BLOCKS COME WITH CHALLENGES
STRONG CAPABILITIES
PROVEN PROCESSES
UNDERSTAND
REGULATORY
LANDSCAPE
NO DOCUMENTATION
ANALYTICS POOR
MINIMAL REUSE
DATA RICH
MAY BE OVERLY
RISK AVERSE
SIZE AND SCALE
SLOW REACTION TIME

40 |
WATCH FOR ICEBERGS
TECHNICAL DEBT COMPLICATES CHANGE – WITH INTEREST

COMMITTED WORKFORCE
Employee engagement is mandatory for success
in an organization’s digital initiatives

42 |
AN UNINFORMED WORKFORCE WILL NOT BE COMMITTED
BAD COMMUNICATION & NO COMMON VISION BLOCKS
CHANGE

43 |
SOFT FACTORS ARE THE HARD AREAS
LACK OF UNDERSTANDING AND BUY-IN HINDERS RESULTS
Source: IBM, Making Change Work Study (IBM Global Services, 2008)

44 |
COMMITTED EMPLOYEES ARE EMPOWERED
MAKING AND LEARNING FROM MISTAKES IS REQUIRED

45 |
DIGITAL BUSINESS PLATFORM
FOUNDATIONAL TO PROVIDING THE DIGITAL WORKPLACE

FINAL THOUGHTS
If you are what you eat and culture eats strategy,
then culture is strategy

47 |
THE ANALOG BUSINESS WILL NOT SURVIVE
SLOW, DISCONNECTED ENTERPRISES ARE ERODING

48 |
FOCUS ON THE FOUR Cs TO POWER UP YOUR CULTURE
YOU CANNOT MAXIMIZE YOUR SUCCESS WITHOUT THEM
• Remember Conway’s Law
• Use data to make and measure decisions
Communication and
Collaboration
• Get the key business and IT stakeholders on board
• Roadmap translates strategy into executionCommon Vision
• Look at change as an everyday occurrence
• Take a broader look at your whole ecosystem
Change
Management
• Communication & vision gaps hinder commitment
• The Digital Workplace accepts mistakes as lessons
Committed
Employees

Velocity and Volatility: Culture and Strategy in the Digital Age

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