Digital Transformation In search of Digital Excellence. Didier Bonnet Les Fontaines, June

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1 Digital Transformation In search of Digital Excellence Didier Bonnet Les Fontaines, June

2 Digital Transformation: Key Messages There is a large and growing market for Digital Transformation projects: 100% interest from our clients It is a top of the organization issue and a top-down transformation: Cross-silo transformation Potentially touches all points of the organization We have a pretty unique competitive positioning and compelling assets: Transformative vision Partnership with the MIT IP developed on projects, e.g. digital organization accelerator Digital Maturity Assessment model We are creating traction in the marketplace: Focus on 2 case studies: PRISA and Volvo Cars 2

3 Customers: 70% Competitors: 72% Common pressures and Broadly Common Activities Customer Experience Operational Process Business Model Customer understanding Analytics-based segmentation Socially-informed knowledge Process digitization Performance improvement New features Digitally-modified businesses Product/service augmentation Transitioning physical to digital Top line growth Digitally-enhanced selling Predictive marketing Streamlined customer processes Worker enablement Working anywhere anytime Broader and faster communication Community knowledge sharing New Digital Businesses Digital products Reshaping organizational boundaries Customer touch points Customer service Cross-channel coherence Self service Performance management Operational transparency Data-driven decision-making Digital Globalization Enterprise Integration Redistribution decision authority Shared digital services Unified Data & Processes Analytics Capability Digital Capabilities Business & IT Integration Solution Delivery Source: Capgemini Consulting/ MIT Center for Digital Business Research Employees: 32% 3

4 Different results: In the way technology is used Customer Experience Operational Process 18% 18% 14% 20% 4% 22% 14% 16% 8% 18% 2% 28% 36% 28% 36% 4% 12% 8% Analytics Mobile Social Media Embedded devices 36% 40% 22% 4% 4% 6% Analytics Mobile Social Media Embedded devices Substitution Extension Breakthrough Substitution Extension Breakthrough Note: Charts plot how firms are using each technology in customer experience or operational process initiatives. For each firm, only the most radical usage is counted Source: Capgemini Consulting/ MIT Center for Digital Business Research 4

5 Different Results: In the way transformation is conducted Unclear Business Case Transformative Digital Vision 40% Of The companies envision a radical digital transformation Customer Experience Operational Process Business Model Digital Governance Coordination KPIs Customer understanding Analytics-based segmentation Socially-informed knowledge Top line growth Digitally-enhanced selling Predictive marketing Streamlined customer processes Customer touch points Customer service Cross-channel coherence Self service Process digitization Performance improvement New features Worker enablement Working anywhere anytime Broader and faster communication Community knowledge sharing Performance management Operational transparency Data-driven decisionmaking Digitally-modified businesses Product/service augmentation Transitioning physical to digital New Digital Businesses Digital products Reshaping organizational boundaries Digital Globalization Enterprise Integration Redistribution decision authority Shared digital services Digital Engagement skills Multi-way communicatio n Ineffective coordination Digital Capabilities Top-down leadership but mass-mobilisation Missing skills (77%), culture issues (55%) and ineffective it (50%) Source: Capgemini Consulting/ MIT Center for Digital Business Research 5

6 Resulting in different Digital Transformation Maturity levels Digital intensity Fashionistas Digirati 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 Good governance Many digital initiatives generating business value in measurable ways Strong Digital culture Beginners Conservatives 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, but traditional capabilities many be Strong governance across silos Taking active steps to build digital skills and culture Transformation management intensity Source: Capgemini Consulting/ MIT Center for Digital Business Research 6

7 Digital Transformation Case study: Prisa Customer Experience Operational Process Business Model Increased customer engagement Used digital technologies to understand user experience and influence customer behavior Single log in access to entire portfolio of online products Created a federated digital organization Created a next generation Digital monetization platform Invested in innovation of digital business Built internal competencies Established a central digital unit A digital business unit as a P&L model A centralized digital service centre as a shared service model Measure the transformation 7

8 Digital Transformation case study: Volvo Customer Experience Business Model Done Envisioned Done Envisioned Customer understanding Mass-customized marketing & segmentation Better customer knowledge via social media Top line growth Customer touch points Conversing on social media Cross-channels coherence Increasing revenues by selling digitally-enabled services and enhanced products Digitally-modified businesses From B2B to B2B+B2C Mobile-enabled services (remote control, status, etc.) New Digital Businesses Digital Globalization Global shared services (call centers) New services (Volvo on Call, anti-theft, etc.) Digital Capabilities Done Global customer database Envisioned Global CRM Advanced analytical capabilities 8