DIGITAL TRANSFORMATION

Transcription

1 DIGITAL TRANSFORMATION Dr.ir. Gerard M. Wijers Anderson MacGyver

2 YOUR LECTURER DR.IR. GERARD WIJERS A passion for creating business value through technology and data Consultancy Co-Founder Anderson MacGyver (2013- ) Partner KPMG ( ) Director Morgan Chambers / EquaTerra ( ) Founder ID Research / Ordina Institute ( ) Academy Core teacher Nyenrode MBA for Business & IT: Organization and value of IT Faculty member Antwerpen Management School Program Director Master IT Management Delft TopTech Education MSc en PhD Computer Science Delft University (cum laude) Areas of Interest IT Strategy, Sourcing, IT Governance, Architecture, Benchmarking, Portfolio management Private Married, 2 children Hobbies: Skiing, Trumpet playing, CrossFit 2

3 INDEX + Who am I + Introduction digital business + Digital transformation + Two main concepts - Business model canvas - Operating model canvas 3

4 INTRODUCTION Digital is key The world has become the new playing field where every business can find new opportunities to compete and IT is disruptive for the way organizations do business We see examples like Netflix (video-shops), AirBnB (hotels), Booking.com (travel agencies), Spotify (record industry), CoolBlue and Zalando (retail) rapid growth of small companies disrupting entire establised markets is very much the norm nowadays Digital is however not restricted to being digital native; Existing organizations have to adapt and become digital as well; Examples of successful incumbents investing in transforming into the digital world are Walmart, Albert Heijn, ING, PostNL, Incumbents have strengths that they can play on as they defend against digital natives. They have, for example, a customer base. They have a brand. And they have data. The trick, however, is to make sure that all of those assets are leveraged and used equally well in the digital world 4

5 What makes a business digital? Discussion 5

6 What are examples of digital companies? 6

7 WHAT DO YOU THINK OF? Eneco? PostNL? Wehkamp? Fairzekering? AEGON? 7

8 DIGITAL BUSINESS STRATEGY The way to do business in the digital future* Digital strategy refers to the strategy to become a digital company; Digital connotes deeper interactions with customers and the ecosystem, more customized and personalized offerings and interactions, data driven decision making, and organizational models and processes that are more reactive to changes in the company's environment A digital business strategy is about capabilities needed to build and grow the digital ecosystem of customers, suppliers and business partners at scale, using growth models of the Internet startup world Digital strategy is concerned with creating the digital platforms, understanding the ecosystem and building communities; the partners connected in the ecosystem do the work Key elements of modern digital business are: Support the entire digital customer journey Omni-channel touchpoints on all major and high growth emerging channels A strong, multidisciplinary digital business foundation and well resourced supporting capabilities for digital business * Based on What is Digital Business by Dion Hinchcliffe 8

9 CREATING THE NEW DIGITAL PLATFORMS The platforms of the future Digital business requires end-to-end automated processing of data and transactions. New platforms will facilitate new ways of working and sharing standardised data The orientation towards the digital platforms for the future should be focussed onto those digital domains which will contribute to the business strategy, e.g. Data backbones and standardization (Big Data) Sensors (Internet of Things) Digital market places (ecommerce platforms) Social listening (Social media, Social CRM) Financial technology (FinTech) Networked logistics (Track & Trace, Logistic Network operations) Digital Warehousing (Robotics) Data analytics (Predictive analysis, algorithms) 9

10 LEGACY Application rationalisation While existing IT landscape is too complex, renovating the core of processes and IT will be crucial in enabling the digital platforms for the future Incumbents often have an extensive and complex application landscape supporting processes which are not organised in an end-to-end way This landscape of processes and IT needs to be renovated in order to enable the digital business strategy KPN is met het huidige Vereenvoudigingsprogramma goed op weg om eind dit jaar ongeveer EUR 450 miljoen te besparen, vergeleken met het kostenniveau eind Vandaag kondigt KPN een volgende stap in het Vereenvoudigingsprogramma aan voor de periode Dit zal leiden tot additionele besparingen van ten minste EUR 300 miljoen, waardoor de totale jaarlijkse kostenbesparingen eind 2019 ten minste EUR 750 miljoen zullen zijn, vergeleken met het kostenniveau eind Deze extra kostenbesparingen worden met name gerealiseerd door verdere vereenvoudiging en rationalisatie van IT processen en systemen, en netwerken. De verdere vereenvoudiging zal naar verwachting resulteren in een verbeterde dienstverlening en hogere klanttevredenheid. 10

11 THE DIGITAL TRANSFORMATION Some necessary steps to take Fix what is broken about IT Messy legacy systems Broken accountability A clear enterprise wide approach A well understood funding model Building a Digitized Platform Stable core operations Core business processes Shared data Exploiting the Platform for Profitable Growth Drive value from the digitized platform 11

12 Digital Mastery Westerman G, Bonnet, D., McAfee, A., Leading Digital, 2014, ISBN

13 INTRO TO THE BOOK IN 3 MINUTES A first impression 13

14 Digital Capability Digital Capability FOUR LEVELS OF DIGITAL MASTERY From Beginners to 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 FASHIONISTAS BEGINNERS DIGITAL MASTERS CONSERVATIVES Leadership Capability Leadership Capability 14

15 Digital Capability Digital Capability DIGITAL MASTERY PERFORMANCE Digital Masters Have Significantly Better Financial Performance REVENUE GENERATION EFFICIENCY PROFITABILITY +6% +9% - 11% +26 % -4% - 10% - 24% +9% Leadership Capability Basket of indicators: Revenue / Employee Fixed Asset Turnover Leadership Capability Basket of indicators: EBIT Margin Net Profit Margin * 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 15

16 DIGITAL MASTERY The Main Building Blocks Of Digital Capability CUSTOMER EXPERIENCE OPERATIONS BUSINESS MODEL Customer Understanding Process digitization Digitally-modified business Top Line Growth Worker enablement New digital business Customer Touch Points Performance management Digital globalisation 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 16