Digital Transformation: The imperative to Change. Why, What, How

Transcription

1 Digital : The imperative to Change. Why, What, How Daniel-Zoe Jimenez Associate Director, Digital, Big Data/Analytics IDC Asia Pacific dzjimenez@idc.com

2 5 Warning signs - Time for a major change? 1. Does it take longer to acquire new customers, or are your customer churn rates increasing? 2. Are your employees productivity rates stagnant, or employee turnover is higher than before? 3. Are your revenues lower compared to last year at this time? Have you made changes to your product or services offerings in the last 1-2 years? 4. Is your company focused on cost-cutting, while your competitors are focused on new markets? 5. Is your organization unable to embrace risk, or take innovation to scale? Source: IDC Digital Practice Research

3 Change is necessary, but why now? Adaptation vs

4 By % of top 20 organizations in each industry segment will be disrupted by new competitors. 1 Transforming is no longer an option, it s a requirement to stay relevant 2 Your battleground will be the relationship with the customer 3 Data is at the center of transformation. To succeed organizations need to focus on their most critical asset: People Source: IDC Digital FutureScape Predictions 2015, & DX Practice Research

5 The Rise of Digital - Transform or perish Leadership Omni-Experience Information Operating Model WorkSource 60% of the APAC top 1000 (A1000) CEOs will have DX at the center of their corporate strategy. 80% of B2C 60% B2B Org. will overhaul their digital front door to support 1K-10k X more customer interactions 65% of large enterprises will become informationbased companies 35% IT resources will be spent to support the creation of new digital revenue streams. 10% of work will be sourced from skill-based marketplaces in mature markets by 2019 (e.g crowdsourcing). Source: IDC Digital FutureScape Predictions

6 What is Driving DX - Top initiatives in Asia/Pacific 20% 16% 14% 13% 13% 10% People Improve employee productivity & profitability Data Create a datadriven & customercentric Org. Omni-X Integrate digital channels to deliver omniexperiences New Revenues Drive new sources of revenues (connectivity) Ecosystem Gaining a holistic view of the business ecosystem CX Providing personalized customer experiences Source: IDC APeJ DX Pulse Survey n=740 6

7 How do you transform? Priority areas Leadership Omni-Experience Information Operating Model WorkSource An Outside In Business Environment Blend Physical and Digital Experiences Information as a Competitive Advantage New Digital Revenue Streams Ecosystembased Workforce Source: IDC Digital Research Practice,

8 IDC s MaturityScape for Transforming Digitally Many organisations are just beginning their digital transformation journey Optimised (Disruptive) Managed (Amplified) Ad hoc (Shallow) Opportunistic (Enriched) Repeatable (Multidimensional) Digital Player Digital Transformer Digital Disruptor Digital Explorer Digital Resister Source: IDC Digital MaturityScape, 2015

9 How mature are organizations in Asia/Pacific? 50% 45% 45% US APeJ 40% 35% 32% 33% 32% 30% 25% 20% 15% 10% 5% 0% 14% 15% 14% 8% 6% 1% Ad Hoc Opportunistic Repeatable Managed Optimized Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disruptor Source: IDC APeJ Digital MaturityScape Benchmark,

10 What are the barriers blocking your IT organization from moving forward? 32% 28% 25% 8% 5% 2% People We do not have enough people with the right skills Legacy Systems We have legacy systems to support that consume our efforts Culture We do not have a risk taking, innovation culture Partnerships Our LOB peers do not perceive us as adding value in DX Leadership Our IT leadership does not have the right vision Incentive Systems Our current evaluation system does not measure us on innovation Source: IDC IT Executive Survey, Jan, 2016, n=103 IDC Visit us at IDC.com and follow us on 10

11 People - Rebalance your talent portfolio for DX Competencies RETRAIN INVEST OUTSOURCE CULTIVATE Source: IDC, IT Staffing Survey 2015 N=90 IDC Visit us at IDC.com and follow us on 11

12 Culture Driving a Digital mindset CHALLENGE FAILURE SOURCES OF INNOVATION RECOGNITION & METRICS TRADITIONAL BUSINESS (Digital Resisters) Minimize Failure Strongly discouraged Defined by leaders/mgmt. Small steps Inconsistent & infrequent Metrics focused on outputs only DIGITAL TRANSFORMATION MINDSET (Digital Transformers) Rapid failure informs success Focus on Experimentation - fail fast and move on to next project Domain leaders collaborate in Crossfunctional teams, Digital COE, Labs to drive Skunk-works / blue sky projects Recognition & celebration of Innovative approaches Metrics focused on efficiency & ecosystem Source: IDC IEP and Digital Practice Research 12

13 Tech - Top tech priorities - Asia/Pacific For DX Customer Facing apps 1 2 For ERP/Apps Better Integration Scalability & Easy deploy 2 Back office apps (e.g. ERP) 3 Ease of use & Design 3 Datacenter infrastructure 4 5 Faster time to value Ease to customize Source: IDC APeJ Digital Survey, and AP Software Pulse Survey

14 Leadership Omni-Experience Information Operating Model WorkSource Strategy Data People Technology Process The Digital Journey

15 Contact Information twitter.com/dz_jimenez 15