Didier bonnet oracle open world presentation on #leading digital - Capgemini Consulting - Digital Transformation

1. TURNING TECHNOLOGY INTO BUSINESS
TRANSFORMATION
LEADING DIGITAL
ORACLE OPENWORLD ‘14
DIDIER BONNET KEYNOTE
30TH SEPTEMBER ‘14

2. Copyright © 2014 Capgemini Consulting. All rights reserved.
2011
Define
‘Digital mastery’
“Leading Digital” Was Born
Out Of 3 Years Of Research
2011 Digital
Transformation
Framework
Define
“Digital Mastery”
50 Companies
160 Interviews
Performance/
Sector Maturity/
DNA
500 Companies
2013 Digital
Transformation
Execution
Uncover execution
Challenges
>2,500
CompaniesRESEARCH
OBJECTIVES
RESEARCH
THEMES
2011
Digital Transformation
Framework
2012
Digital Transformation
Performance
2013
Digital Transformation
Execution
FASHIONISTAS
DIGITAL
MASTERS
CONSERVA
TIVES
BEGINNERS

3. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Transformation di-jə-təl tran(t)s-fər-ˈmā-shən (1) the use of digital technology
to radically improve the performance and/or reach of a company.
What Is Digital Transformation?

4. Copyright © 2014 Capgemini Consulting. All rights reserved.
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business

5. Copyright © 2014 Capgemini Consulting. All rights reserved.
Are you ready for it?
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business

6. Copyright © 2014 Capgemini Consulting. All rights reserved.
Are you ready for it?
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business
Few firms are demonstrating digital mastery,
but those who do are racing ahead

7. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital transformation
is not an arcane art
Are you ready for it?
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business
Few firms are demonstrating digital mastery,
but those who do are racing ahead

8. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital transformation
is not an arcane art
Are you ready for it?
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business
Few firms are demonstrating digital mastery,
but those who do are racing ahead
Time to start pursuing digital mastery is now.
The longer you wait, the tougher it will become

9. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital transformation
is not an arcane art
Are you ready for it?
Firms that do not
adapt will fall behind
Leading Digital: Why Should You Care?
Inflection point: Digital technology will
radically change the way we do business
Few firms are demonstrating digital mastery,
but those who do are racing ahead
Time to start pursuing digital mastery is now.
The longer you wait, the tougher it will become

10. Copyright © 2014 Capgemini Consulting. All rights reserved.
What Do These Two Companies
Have In Common?
“Be the first company to
be fully digital end to end”
“From a physical-intensive
model to a knowledge and
technology-intensive one”
WHAT HAVE THEY DONE?
• Engaging customers with social
• Fusion of online and instore experience
• Unifying data globally
HOW HAVE THEY DONE IT?
• Governing cross-channel consistency
• Engaging employees
• Developing new skills
• Strengthening IT-Business relationships
“Digital has been a catalyst for everything in the company”
Angela Ahrendts, CEO
WHAT HAVE THEY DONE?
• Real time view of operations (1.0)
• Automation of processes & machinery (2.0)
• Intelligent mining model (3.0)
HOW HAVE THEY DONE IT?
• Developed a radical digital vision
• Invested in cultural change
• Developed new competencies
• Strong governance & execution
“Our business in the past was related to physical labor
today our business is more related to knowledge and
technology”
Marco Antonio Orellana Silva, CIO

11. Copyright © 2014 Capgemini Consulting. All rights reserved.
What Do These Great Companies
Have In Common?

12. Copyright © 2014 Capgemini Consulting. All rights reserved.
DigitalCapability
Leadership Capability
The DNA Of Digital Masters
The What:
Using digital technology to transform the customer
experience, operational processes and business models
The How:
Successful transformations depend as much
on how firms manage digital transformation than solely on
implementing new technologies

13. Copyright © 2014 Capgemini Consulting. All rights reserved.
4 Levels Of Digital Mastery
DigitalCapability
Leadership Capability
FASHIONISTAS DIGITAL MASTERS
CONSERVATIVESBEGINNERS
• Many advanced digital features
(such as social, mobile) in silos
• No overarching vision
• Underdeveloped coordination
• Digital culture may exist in silos
• Strong overarching digital vision
• Excellent governance across silos
• Many digital initiatives generating
business value in measurable ways
• Strong digital culture
• Management skeptical of the
business value of advanced digital
technologies
• May be carrying out some
experiments
• Immature digital culture
• Overarching digital vision exists, but
may be underdeveloped
• Few advanced digital features,
though traditional capabilities may be
mature
• Strong governance across silos
• Active steps to build digital skills and
culture

14. Copyright © 2014 Capgemini Consulting. All rights reserved.
Source: “The Digital Advantage: How digital leaders outperform their peers in every industry” G. Westerman, M. Tannou,D. Bonnet, P. Ferraris, A. McAfee, MIT Center for Digital
Business and Capgemini Consulting, Nov. 2012.
Mastering Both Dimensions Is The Key
Firm-Level
Digital
Transformation
1. DIGITAL CAPABILITY
2. LEADERSHIP CAPABILITY
Social Media
Digital Product
Design
Customized
Manufacturing
Digital Division:
Nike Digital
Sport
• Digital marketing
• Digital product innovation/design
• Digital commerce (e/m-commerce)
• Digital technologies (GPS, mobile, etc.)
• Customer analytics
+

15. Copyright © 2014 Capgemini Consulting. All rights reserved.
* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample
The Time To Act Is Now: Digital Masters Have
Significantly Better Financial Performance
Basket of indicators:
• EBIT Margin
• Net Profit Margin
DigitalCapability
Leadership Capability
REVENUE GENERATION EFFICIENCY
+6%
Basket of indicators:
• Revenue / Employee
• Fixed Asset Turnover
+9%
-10%-4%
DigitalCapability
Leadership Capability
PROFITABILITY
% +26%
+9%-24%
-11%

16. Copyright © 2014 Capgemini Consulting. All rights reserved.
The Time To Act Is Now: Every Industry We’ve
Studied Already Has Digital Masters

17. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital has informed and
amplified customer
expectations
Digital is removing
traditional constraints in
operations
Digital business models can
reorder value chains and
create new opportunities
BUSINESS
MODEL
CUSTOMER
EXPERIENCE
OPERATIONS
Digitally-modified businessCustomer Understanding Process digitization
New digital businessTop Line Growth Worker enablement
Digital globalisationCustomer Touch Points Performance management
The What: Building Blocks Of Digital
Capability

18. Copyright © 2014 Capgemini Consulting. All rights reserved.
There Are Clear Patterns In How And Where
Digital Masters Invest In Digital Capabilities
BUSINESS MODEL
CUSTOMER-FACING PROCESSES OPERATIONAL PROCESSES
Social Media
Internal
Collaboration
Mobile Channel
Customer
Experience
Process
Digitalization
Data Integration
Sensors
Analytics

19. Copyright © 2014 Capgemini Consulting. All rights reserved.
Four Interventions That Together Change
The Customer Value Equation
Design
customer
experience
from the
“outside-in”
Increase
reach
& engagement
with smart
digital
investment
Put customer
data at the
heart of the
experience
Seamlessly
mesh the
digital and
the physical
experience
• Forensic
understanding
of customer
behaviour
• Segment:
Journeys /
Personae
• New Digital
Channels
• Reach & engage
where it matters
• Make customer
experience and
personalisation
more scientific
• Harvest and
enrich data
• Old & new
matter
• Omni channel
integration

20. Copyright © 2014 Capgemini Consulting. All rights reserved.
Operations: The Less Visible Competitive Advantage
People
To Break Traditional
Operational Constraints…
Process
Technolog
y
Information
Using Digital
Capabilities…
To Get To The “Hidden,” Digital
Operational Advantage
Knowledge Coordination
Pager Risk
Time Distance
Orchestrating
or AND
Unleashing
Controlling
or AND
Innovating
Standardizing
or AND
Empowering
• Process & Productivity
Improvement
- Cost / Quality / Safety
• Better Employee Collaboration
- Connected & Empowered
• Better Decision Making
- Agility & Responsiveness

21. Copyright © 2014 Capgemini Consulting. All rights reserved.
THE COMPETITIVE LANSCAPE
IS IN PERPETUAL MOTION
Globalized Competition
Falling Barriers To Entry
Access Vs. Ownership Of Assets
Blurring Industry Boundaries
Everything Connected
FIVE ARCHETYPE
CHOICES
Re-inventing
Industries
Substituting Products
& services
Crafting New
Digital Businesses
Reconfiguring
Delivery Models
Rethinking
Value-Propositions
Challenge Your Business Model Before
Someone Else Does

22. Copyright © 2014 Capgemini Consulting. All rights reserved.
Create a shared
transformative vision of
the digital future
Engage employees at scale
to make vision a reality
Fuse IT & business
communities to build
digital skills & transform
technology platforms
Establish strong digital
governance to steer the
course
The How: Leadership Capabilities Is What
Turns Digital Investment Into Digital Advantage
TECHNOLOGY VISION
ENGAGEMENTGOVERNANCE

23. Copyright © 2014 Capgemini Consulting. All rights reserved.
Evolve The
Vision Over
Time
Identify
Strategic
Assets
Define A Clear
Intent And
Outcome
Create A
Transformative
Vision
• Industrial Internet –
marriage of industrial
engineering and Big
Data analysis
• Sales team customer
relationships were high
value
• Shift to sell digital
services not books
• Fully digital end-to-end
• Align same experience
across channels
worldwide
• 1.0: Real time operation
• 2.0: Full automation
• 3.0: Human free mines
Only the senior-most executives can
create a compelling vision of the future

24. Copyright © 2014 Capgemini Consulting. All rights reserved.
Vision Sets Direction.
Engaged People Make It Happen
FOSTER NEW WAYS
OF WORKING
CONNECT THE
ORGANIZATION
ENCOURAGE WIDER
CONVERSATIONS
• Closing knowledge gaps
• Increasing engagement
• Solving business issues
• Generating new ideas
• Wikis
• Microblogs
• Social Networks
• Video Conferencing
• Executive involvement
• Digital champions
• Reverse mentoring
• Use cases
SCALINGWIRING ADOPTING
New innovation process is creating
more innovation, collaboration, and
employee engagement across the
company’s business units.
“Communities that are created on the
network are free from geographical,
functional or hierarchical
boundaries.”
“With executive engagement, you
don’t have to mandate activity.”

25. Copyright © 2014 Capgemini Consulting. All rights reserved.
MULTIPLE MECHANISMS
TO SUIT CULTURE & REACH
GOVERNANCE GOALS
COORDINATION
• Prioritizing
• Synchronizing
• Aligning
SHARING
• Capabilities
• People
• Processes
• Technology
• Information
KEY MECHANISMS
Digital Leadership
Roles
Shared Digital
Units
Digital Governance
Committees
SHARED DIGITAL UNIT
Unit/
Region/
Brand
Unit/
Region/
Brand
Unit/
Region/
Brand
Unit/
Region/
Brand
Strong Digital Governance Keeps
The Company On Track

26. Copyright © 2014 Capgemini Consulting. All rights reserved.
• New ways of working
• Rethinking
infrastructure /
replatforming
IT Business
Relationship
Digital
Platform
Digital
Skills • Digital IQ program
Business And IT Leaders Together Drive
Transformation Efforts Better Than They Do Apart

27. Copyright © 2014 Capgemini Consulting. All rights reserved.
Sustain the Transformation
• Build Foundation Skills
• Align Incentives & Rewards
• Measure, Monitor & Iterate
Frame the Digital Challenge
• Build Awareness/Understand
Impact
• Know your Starting Point
• Craft Vision & Align Top Team
Focus Investments
• Translate Vision into Action
• Build Your Governance
• Fund the Transformation
Mobilize the Organization
• Signal your Ambitions
• Earn the Right to Engage
• Set New Behavior &
Evolve Culture
Digital Transformation Is A Job For Now:
The Digital Transformation Compass

28. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Technology Will Remain The Endless Agitator Of The Business World
Augmented Reality
Robotics Artificial Intelligence
Sharing Economies Wearables
3D Printing
You Ain’t Seen Nothin’ Yet

29. Thank you!
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#Leadingdigital
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