DIGITAL TRANSFORMATION. Business Transformation in the Digital Age: CIO Challenges & Opportunities
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1 DIGITAL TRANSFORMATION Business Transformation in the Digital Age: CIO Challenges & Opportunities
2 HELPING YOU NAVIGATE DIGITAL TRANSFORMATION New technologies like cloud computing, social networks, and mobile applications are changing the way companies do business. Today s enterprises can reach more people and deliver superior performance faster than ever before. No matter what product or service you provide, the digital revolution is transforming your industry. As a CIO, your challenge will be to leverage digital technology to streamline your business model and enhance your customers experience. But that s not the only headwind CIOs face. On top of pressure to stay on the winning side of disruptive technology, you must also meet ever-tighter budget constraints. That means using your business-critical assets in new ways while successfully managing the risks associated with change. At MEGA, we re here to help. Our digital transformation experts will guide you through this fast-changing landscape, with tools that let you analyze the impact of change and prioritize projects that drive the most business. A single view of your business Managing digital transformation Enhanced risk and corporate governance Scenario-based decision making 2
3 Gartner Predicts By 2015, CEOs will redirect 30% of BPI project funding to transformation projects as digital process reinvention becomes a top-three business priority. Gartner Predicts 2014: Business Process Reinvention Is Vital to Digital Business Transformation, November 15, 2013 Cantara, Searle, Hill, Robertson, Dunie, Burton MAKING DIGITAL PROCESSES A BUSINESS ADVANTAGE In today s globalized world, products and services can be delivered almost instantly from anywhere to anywhere. That has major implications for companies business models especially for companies that want to remain at the top of their industries. Meanwhile, increasingly advanced and increasingly cheap technology is prompting CEOs to set ever-more ambitious objectives, upending traditional business processes. As a CIO, you need to manage this transition to a new digital era. But does your company have the resources it needs? And is it ready to undertake an unprecedented transformation program while coping with the inherent risks? IMPROVING THE CUSTOMER EXPERIENCE IN A DIGITAL WORLD Many companies have seized the best technological breakthroughs to push digital applications into customers homes, eyes, ears, and minds, in an effort to improve the customer experience. But most of those companies are just starting to make the most of their IT investments. They could enhance the customer experience even further through innovative digital business processes. Digital transformation is nothing less than a paradigm shift. Change is the new normal. Your challenge is to get employees to welcome change, viewing it as an opportunity to spur creativity and innovation and set your business on track to delivering an outstanding customer experience. 3
4 TURNING CHANGE INTO A STRATEGIC OPPORTUNITY 1. ALIGN BUSINESS AND IT What are my business goals and how do my programs, applications, software lifecycles, and investments relate to the required capabilities? 2. PLAN THE TRANSFORMATION What are my most costly, risky, and critical applications? Where should we implement change first? 3. ASSESS DIGITAL SKILLS Do we have the right skills in-house? How can we acquire new skills while ensuring business continuity? 4. IMPLEMENT THE TRANSFORMATION How will we deal with unforeseen changes and weigh different alternatives? Any business transformation project will involve profound changes to the IT system. To implement your transformation successfully, you need to thoroughly assess your company s strategy, strengths, and weaknesses, as well as the transformation opportunities and risks. Otherwise you won t be able to evaluate the expected benefits against your business objectives. You must also make sure the lines of communication are open and running smoothly between your IT department and all of your company s business lines. Since most business transformations today focus on breaking down organizational barriers via technology, CIOs are positioned well to lead the transformations ALIGN BUSINESS AND IT Improving business and IT alignment has been a top priority for CIOs for the past decade. But now that digital transformation is reshaping business models, it has become more critical than ever. The fast pace of business change combined with an explosion in new technology is making it increasingly difficult for CIOs to align business and IT strategies. What you need is a single, comprehensive view of your company that shows the tightly-woven links between business and IT. That view should be drawn from a reliable, complete, and unique database. It will enable you to perform impact analysis, plan out different scenarios, generate reports, and outline tangible, actionable transformation steps. 1 Forrester Research, Inc. The CIO s Role In Business Transformation, by Marc Cecere, June 12, The process of building such a view will help you gather, analyze, prioritize, and share business and IT transformation requirements, and lay them out as a target operating model. 4
5 One of our goals is to package innovative services that improve our customers digital experience. That means bringing business partners and other stakeholders into the value chain earlier, combining creativity with scenario analysis capabilities. CIO of a multinational consumer goods company 2. PLAN THE TRANSFORMATION Most experts put the success rate of transformation projects at less than 30%. According to Capgemini, there are three main reasons why so many transformation projects fail: Incomplete information Insufficient risk management A failure to prioritize and plan change Like your C-Suite peers, you as a CIO need the right compass, blueprints, and decision-making tools to design and implement a successful transformation. You must be able to plan, manage, and secure digital transformation options, and communicate with your peers to select the best one. The tools you use must be flexible and scalable, helping you pick the right technology for your target architecture while taking all dependencies into account. Your transformation plan should leverage cutting-edge innovation to mitigate risk, control costs, deliver maximum added value, and enhance the overall customer experience. 3. ASSESS DIGITAL SKILLS Seamless technology and process integration are not the only conditions for a successful digital transformation. You must also map the resources you need against your company s existing skills. Another crucial step is developing an effective change management and communication plan to help overcome resistance to change; that will be critical to ensure operational continuity during the transformation phase. 4. IMPLEMENT THE TRANSFORMATION Once the planning and assessment steps are completed, you will be ready to carry out the digital transformation process itself. Some of the main pitfalls here are a failure to properly manage new risks or to deliver a coordinated response to unforeseen changes. When obstacles arise, as they surely will, you will need to quickly decide whether it is viable to pursue your plan in its current form or if it should be updated to accommodate new business constraints. That means being able to rapidly model different scenarios and compare various alternatives that factor in dependencies and risks, so you can change your route on the fly... like using a GPS for your business. 5
6 MANAGING DIGITAL TRANSFORMATION At MEGA, we help CIOs successfully manage digital transformation by giving them a single, comprehensive view of their business. Our scenario-based software works like a GPS to help you navigate the new digital landscape, enabling you to drive change and make better, faster decisions while taking risk into account and ensuring corporate governance. With the support of our experts, you will be able to seamlessly integrate the physical and digital dimensions of your business and deliver a new level of customer experience. ALIGN BUSINESS AND IT Perform an in-depth assessment of your business needs Generate a comprehensive overview of your application portfolio, including how applications are utilized and which are business-critical Generate and compare scenarios to improve decision-making, especially for how to plan and implement the transformation PLAN THE TRANSFORMATION Outline the target IT architecture and processes for the transformation Assess the transformation s potential impact on your IT assets Make sure that the planned changes are consistent with your company s IT policy MANAGE RISK Map out all risks and associate each one to the transformation steps, so you can factor risk into your decisions Set up systems to effectively manage the risks specific to each scenario, before and during the transformation 6
7 MEGA SOLUTION FOR DIGITAL TRANSFORMATION Our software is built on MEGA s signature HOPEX platform that provides a collaborative, multilingual workspace and single enterprise repository that all stakeholders can access through an interface tailored to their user profiles. It gives you a single, integrated, and dynamic view of your business with real-time tools for improved monitoring and decision-making. MANAGE ALIGN DIGITAL TRANSFORMATION ENTERPRISE RISK MANAGEMENT INFORMATION ARCHITECTURE - BUSINESS ARCHITECTURE - IT PORTFOLIO - IT & SERVICE ARCHITECTURE - ADAPT PLAN Your organization can address these issues separately. However, tackling them in a comprehensive manner will let you manage digital transformation while controlling risks and costs. And that s where MEGA solutions come in. 7
8 ABOUT MEGA MEGA International is a global software and consulting services company that helps corporations and governments manage enterprise complexity by giving them an interactive view of their operations. We provide business leaders with the visibility and information they need to improve decision making. With our offering for enterprise governance, organizations can optimize and transform their key processes while ensuring that those processes are aligned with their strategy and objectives. Today more than 2,700 companies in 40 different countries use MEGA solutions. Learn more at: mega.com Worldwide Headquarters MEGA International 9 avenue René Coty Paris France Phone: +33 (0) Americas Headquarters MEGA International 175 Paramount Drive, Suite 302 Raynham MA United States of America Phone: Asia-Pacific Headquarters MEGA International 583 Orchard Road #08-04 Forum Singapore Phone: MEGA - March 2014
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