KPMG Digital series. Welcome. 31 January 2018

Transcription

1 KPMG Digital series Welcome 31 January 2018

2 Agenda Welcome & Introduction Eric Wesselman Lead partner Digital Transformation The route to digital Jan Paul van Term, William Koot, Tim de Koning Market trends, why digital and how to start your journey Coffee break Come to action - Discuss the outcome of your assessment Wrap up & next steps Drinks & Bitterballs 2

3 KPMG Digital series Route to digital William Koot Jan-Paul van Term Tim de Koning 31 January 2018

4 Disruptive technologies drive organizations to redesign the business First Second Third Fourth Water and steam power Division of labour Electronics Datafication Mechanical production Mass production Electricity Information technology Automated production Hyper-connectivity Digital labour and professional augmentation : First mechanical loom : First assembly line : First programmable logic controller Tomorrow starts today Source: World Economic Forum,

5 Technology develops exponential Some examples: The trick is to Uber yourself before you get Kodak-ed" Daniel Kraft Exponential $ (2007) to $100 (2014) 400X in 7 years Disruption Linear 0 Source: Singularity University, 2017 TIME $30 per KWh (1984) to $0.16 per KWh (2014) 200X in 30 years 5

6 Digital Transformation is on the CEO s Agenda What we are hearing from senior executives 1.. are concerned about new entrants disrupting their 65% business models are concerned about their organization keeping up with new technologies 77% 80% believe current operating models need to change have implemented / are implementing mobile, cloud and social media solutions 90% Almost every client / organization either wants to or is doing some work around digital transformation Notes: 1. Source: KPMG Survey across 103 C- Level executives from large companies (annual revenue over $1 Bn), 2017; KPMG Global CEO Outlook Report,

7 The maturity of Digital various per industry Digital maturity relative to full digitalization potential 1. Digitally aware 2. Digitally initiated 3. Digitally scaled 4. Digitally integrated 5. Digitally transformed 7

8 Many organizations struggle with their Digital Strategy and Execution Digitization Digitization is a critical element in most corporate strategies Management understand that Digital is important, but haven t defined a strategy with concrete actions Biggest challenges in responding to digital disruption: 1. Lack of vision 2. Poor understanding of the impact 3. Insufficient sense of urgency 4. Culture resistance 5. Lack of funding 6. Lack of critical skills As we strongly believe in working collaboratively, approach that focusses on execution 8

9 Our point of view Focus of digital over time Digital has shifted from a focus on the front to the whole value chain and execution 1 st Transformation Wave 2 nd Transformation Wave Enterprise Digital Transformation Digital Marketing Digital Customer Engagement Mobile Activity was centred on front office and customer experience Organizations pursued digital opportunities through strategic acquisitions (e.g. start ups) Start ups entered the market and played a big role A digital focus on just the front office will not provide sustainable competitive advantage Organizations must focus on restructuring operations beyond customer-facing functions to enable enterprise-wide digital transformation Organizations will spend more on digital in the middle and back office than the front office Digital Business Strategy Digital Supply Chain Omni- Business Disruptive Business Models 9

10 Our point of view transformation journey components KPMG addresses Technology, Way of Working, and Culture Technology Way of working Culture Using technologies for business improvement and growth Adoption of agile structures, governance and working practices Agility is an employee capability and cultural challenge Digital Transformation 10

11 Enablers of a digital transformation Many organizations address digital as independent initiatives without a holistic approach Digital is not a thing, but is simply a word that describes our world today. Advancements in technology have blurred the lines between physical and virtual, creating an emergence of digital disruptors that provide new pathways for organizations to create value. Internet of Things 11

12 Customer experience We are experiencing the Age of the Customer Customers expect more from businesses than ever before. They demand excellent experiences which involve minimal time and effort, always meet expectations, demonstrate integrity and authenticity, reach resolution, are empathetic and personalized 12

13 Understanding our customers requires a multi-faceted approach The 5 Mys identify and explore the complex forces, reasoning processes and trade offs governing how people make choices 13

14 Horizons For the Route-to-Digital we see three horizons Theme Horizon I Incremental Improve the business Horizon II Significant Change the business Horizon III Breakthrough Transform Time now 1-3 year 3 year plus Focus Inside-out Outside-In Outside-In CUSTOMER EXPERIENCE Horizon I Incremental Horizon II Significant Horizon III Breakthrough Question How to solve current challenges How to exploit Digital New Industry Models OPERATIONAL EXCELLENCE Action Do things better Do things different Do new things Maturity Followers Leaders Start-ups NEW BUSINESS MODEL 14

15 Approach Success factors and methodology How to start your digital journey? Success factors o Digital transformation = organizational change: the impact of digital transformation on the employees and culture should not be underestimated. Make change management an integral part of the transformation Methodology 3 step approach to digitally transform the business o Listen to your employees, your key partners and your end users: often the best ideas are found in the world around you o Shoulder to shoulder collaboration: close partnership and trust is crucial to overcome the many barriers in digital transformations o Balance future back and today forward: create a clear picture of the future heat industry and define a solid starting point o Incorporate existing strategy and build on your strengths: using the current strengths and strategy as starting point for future success Phase 1 Ambition and Roadmap Vision Portfolio of digital initiatives Digital DNA requirements ICT adjustments Investment Case High level roadmap Phase 2 Implementation Plan Programme organization Detailed Roadmap Governance Owners of initiatives Detailed planning Q4 17 and Q1 18 Monitoring instruments Phase 3 Execution Implementation of initiatives Progress reporting Planning Q2 18 onwards Evaluation Digital Agenda Transforming the business an balancing act between the how and what 15

16 Example Digital Ambition High Touch through High Tech insurer in 2020 Maximum customer convenience Powerful with data and analytics Efficient through digitization Attractive for our people We will offer the most personal and excellent customer service We will have a healthy profitable portfolio through excellent risk management by data analytics Our people are able to pay more time to our customers through the use of robotics We are a magnet for talent in customer service, process improvement and data & technology 12 initiatives to realize the vision: Remarkably good online self-service Precise risk management on customer level Simplify application landscape Invest in New Services Models Effortless Digital-first client contact Claim like this Simple risk via real STP Agile way of working Personal customer approach at all times Advanced Data Analytics usage Automation via Robotics Magnet for talent 16

17 Deliverables of the engagement KPMG uses several assessments and reviews to determine the next steps Digital awareness Digital vision Digital design Roadmap and 1 and assessment 2 and ambition 3 and initiatives 4 Investment case Digital Trend deck Management Awareness Digital Customer Interaction Maturity High Level IT Strategy Review Digital Governance Structure Individual BU s Digital Maturity Assessment Digital Readiness Assessment RPA process Readiness Assessment Digital Competences Assessment Investment Case Digital Project Portfolio Review Data Maturity Assessment Open Innovation Programme Agile Journey Roadmap Customers WoW Culture Firm Tech Foundation 17

18 KPMG Key Digital Takeaways A Digital Strategy requires a clear vision from the top Digital means different things to different organizations. Digital Strategy needs to focus on the why, before the what and how A successful Digital Ambition is balancing between a holistic view and deep dives on particular topics Elaborate on the possibilities for new business model (digital) initiatives & stretch ambition by moon-shot thinking Anchor Digital in the Board but acknowledge that Digital is a journey for the entire organization 18

19 William Koot Digital Advisory Partner, KPMG Advisory N.V., The Netherlands Tel: Mob: koot.william@kpmg.nl Jan-Paul van Term Global Strategy Group Partner, KPMG Advisory N.V., The Netherlands Tel: Mob: vanterm.jan-paul@kpmg.nl Tim de Koning Digital Advisory - Agile Senior Manager, KPMG Advisory N.V., The Netherlands Tel: Mob: dekoning.tim@kpmg.nl KPMG on social media KPMG app This proposal is made by KPMG Advisory N.V., a Dutch public limited liability company under Dutch law, a member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity, and is in all respects subject to the negotiation, agreement, and signing of a specific engagement letter or contract. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm KPMG Advisory N.V., registered with the trade register in the Netherlands under number , is a member firm of the KPMG network of independent member firms affiliated with KPMG