PAC s View on Digital Transformation
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1 PAC s View on Digital Transformation SAP HANA Journey, Amsterdam, September 1, 2015 Frank Niemann, Vice President Software & SaaS Markets PAC
2 Agenda Key trends in digital transformation Opportunities & challenges for companies Impact on IT requirements Impact on IT architecture Relevance of in-memory systems Q & A 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 2
3 Key trends in digital transformation 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 3
4 Strategic business imperatives in the digital age Customer centricity Strategic business imperatives in the digital age Agility and innovativeness Data intelligence PAC s View on Digital Transformation - SAP HANA Journey PAC
5 The three stages of digital transformation Digital frontend transformation Projects focused on customer-facing areas Driven by individual LoBs, e.g. sales, marketing, or customer service Omni-channel strategies, customer analytics Implementation of specific innovation teams Digitally integrated enterprises Integrated end-to-end customer centricity Digitization and integration of backend and frontend processes Cross-functional data intelligence, integrated analytics Company-wide innovation culture Digital ecosystems Collaborative business models and service networks Cross-industry value creation Innovation and co-creation networks PAC s View on Digital Transformation - SAP HANA Journey PAC
6 From value chains to service networks and collaborative business models Internet companies Telco vendors/ carriers Infrastructure Customer access Software Cloud Utilities IT vendors OEMs Solutions Research institutions Products Services Manufacturers PAC s View on Digital Transformation - SAP HANA Journey PAC
7 Opportunities & challenges for companies 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 7
8 Opportunities Innovation Digitize value chains New business models Build or join new ecosystems Efficiency Better integration of business processes Merge analytics and IT-driven processes Collaboration to manage unstructured processes Increase business Connect existing and new channels, extend your reach Simplify customer access Create new products & services Competitiveness Tap into new markets, increase customer intimacy React faster to customer demands, competition Improve brand recognition in the traditional & digital worlds Become an attractive employer PAC s View on Digital Transformation - SAP HANA Journey PAC
9 Challenges IT Implementation of new business processes/new requirements Total cost of change Integration of processes & analytics, data integration Overcome siloed IT & analytics Integration of mobile, Web, devices/sensors, etc. Corporate strategy Definition of an overall strategy Corporate culture (team players versus competitors) Perception of digital transformation in LoBs, IT, management board Business organization Collaboration between LoBs (silos) Alignment & communication between business and IT New incentive systems beyond money and position People Collaboration between people, staff and management Skills, willingness to change Attract and retain talents, experts, etc. PAC s View on Digital Transformation - SAP HANA Journey PAC
10 Impact on IT requirements 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 10
11 Customer-centricity & data intelligence across the value chain Planning & strategy Removal of silos Analytics Innovation & product dev t. Production Logistics Distribution Billing/ invoicing Supply chain & operations Inventory... Sales & marketing Customer service Finance & controlling IT & technology Cross-functional analytics, end-to-end customer centricity, cross-functional collaboration PAC s View on Digital Transformation - SAP HANA Journey PAC
12 The digitally integrated enterprise requires... Data & process integration at different levels Frontend: sales, marketing, service, customer feedback Backend: finance, supply chain, shipping, inventory R&D: product development, planning and product strategy Internet of Things: devices, products and machines Even more security Secure data access, sharing and integration across company borders Identity management for people, systems and devices PAC s View on Digital Transformation - SAP HANA Journey PAC
13 Impact on IT architecture 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 13
14 New technological environment Industry 4.0 Mobile Customer Experience Management Social Big Data Intelligence Cloud Hybrid PAC 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC
15 System of record Traditional IT Employees Customers Suppliers/partne rs Traditional IT Efficiency, automation Internal processes, workflows ERP Operational data DWH/reporti ng Incremental innovation System management Structured processes Structured Mature Manageable PAC s View on Digital Transformation - SAP HANA Journey PAC
16 System of engagement System of record Digital transformation goes beyond traditional IT Employees Customers Suppliers/partne rs Traditional IT Efficiency, automation Internal processes, workflows ERP Operational data DWH/reporti ng Incremental innovation System management Structured processes Ecosystems IT, Web & IoT PAC s View on Digital Transformation - SAP HANA Journey PAC
17 Impact on Business Value Chain IT Architecture provides Framework for Digital Business Sales, Marketing & Service HR/Workforce Procurement, Supply Chain, Business Partner Integration IoT Industry 4.0 PAC s View on Digital Transformation - SAP HANA Journey PAC
18 Relevance of in-memory systems 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 18
19 In-memory systems PAC s findings From niche technology to mainstream Broader industry adoption Becomes an integral part of application & analytics software, middleware and databases For traditional AND new IT requirements Transactional workloads Operational reporting & analytics workloads Big data analytics Structured & unstructured data, data streams PAC s View on Digital Transformation - SAP HANA Journey PAC
20 Next-generation IT architecture and in-memory systems Bridge the gap with new IT architecture! System of record System of engagement In-memory system PAC 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC
21 Q & A 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 21
22 APPENDIX 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC 22
23 Focus areas in the three stages of digital transformation Digital frontend transformation Omni-channel customer experience Marketing and sales analytics Dedicated innovation teams/ labs Digitally integrated enterprises Digitization of processes Frontend-backend integration Integrated analytics solutions IoT infrastructures Agile processes Process innovation Digital ecosystems Cross-industry service platforms Collaborative analytics platforms Shared data access Co-innovation networks PAC s View on Digital Transformation - SAP HANA Journey PAC
24 System of engagement System of record Traditional IT architecture definition process strategic tactical Products Enterprise architecture Process architecture Information architecture Technical architecture Technology portfolio management PAC 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC
25 System of engagement System of record Extended IT architecture extended definition process strategic tactical Products Enterprise architecture Process architecture Information architecture Technical architecture Technology portfolio management New, alternative business models Big data analytics Mobility, cloud Agile development PAC 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC
26 System of engagement System of record Next-generation IT architecture definition process strategic tactical Products Enterprise architecture Process architecture Information architecture Technical architecture Technology portfolio management Governance New, alternative business models Big data analytics Mobility, cloud Agile development PAC 2015 PAC s View on Digital Transformation - SAP HANA Journey PAC
27 Level of integration IT architecture evolution with in-memory systems Complexity! Data and process integration of SoR & SoE Bridge the gap with new IT architecture! SoR, SoE share one in-memory system System of record (SoR) System of engagement (SoE) Just more speed! SoR, SoE with in-memory DB Flexibility & speed PAC s View on Digital Transformation - SAP HANA Journey PAC
28 About PAC Founded in 1976, Pierre Audoin Consultants (PAC) is part of the CXP Group, the leading independent European research and consulting firm for the software, IT services and digital transformation industry. The CXP Group offers its customers comprehensive support services for the evaluation, selection and optimization of their software solutions and for the evaluation and selection of IT services providers, and accompanies them in optimizing their sourcing and investment strategies. As such, the CXP Group supports ICT decision makers in their digital transformation journey. Further, the CXP Group assists software and IT services providers in optimizing their strategies and go-to-market approaches with quantitative and qualitative analyses as well as consulting services. Public organizations and institutions equally base the development of their IT policies on our reports. Capitalizing on 40 years of experience, based in 8 countries (with 17 offices worldwide) and with 140 employees, the CXP Group provides its expertise every year to more than 1,500 ICT decision makers and the operational divisions of large enterprises as well as mid-market companies and their providers. The CXP Group consists of three branches: Le CXP, BARC (Business Application Research Center) and Pierre Audoin Consultants (PAC). For more information please visit: PAC s latest news: Follow us on PAC France Pierre Audoin Consultants Groupe Le CXP 13 rue Le Sueur Paris, France Tel: +33 (0) info-france@pac-online.com PAC Romania Pierre Audoin Consultants Negustori Bucharest-2 - Romania Tel.: +40 (0) Fax: +40 (0) info-romania@pac-online.com PAC UK Pierre Audoin Consultants 2nd Floor, 15 Bowling Green Lane London EC1R 0BD United Kingdom Tel.: +44 (0) Fax: +44 (0) info-uk@pac-online.com PAC Germany Pierre Audoin Consultants Holzstrasse Munich, Germany Tel: +49(0) Fax: +49(0) info-germany@pac-online.com PAC U.S. Pierre Audoin Consultants 192 Lexington Avenue - Suite 1101 New York, NY 10016, USA Tel: info-us@pac-online.com PAC Brazil Pierre Audoin Consultants Rua Pedro de Toledo, 130, Office 61, Vila Clementino Sao Paulo Brazil Tel.: +55 (11) Fax: +55 (11) info-latam@pac-online.com PAC India Pierre Audoin Consultants , Ashoka Estate, 24 Barakhamba road, New Delhi , India Tel: +91 (0) infoapac@pac-online.com PAC 2015
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