The Digital Transformation Dilemma

Transcription

1 The Digital Transformation Dilemma CLMVT Forum 2018 AUGUST, 2018

2 4.92 billion global mobile users in /3rd of the world is on mobile devices Technology is transforming the world around us 1.6+ billion e-commerce shoppers worldwide in 2017 Over 90% of people buying on Amazon wouldn t purchase an item with less than 3 stars Online community is highly engaged Not just engaged, users are smart 1 Copyright 2018 by The Boston Consulting Group, Inc. All rights reserved.

3 Customer expectations are growing exponentially Situation Before Now Benefit The search journey Research a topic 2 days 2 hours 25x Faster The entertainment journey: Listen to a specific song A whole afternoon 5 minutes 70x Faster The social journey: Organize event for 200 people A whole day 30 minutes 25x Faster The purchase & delivery journey: Research and purchase a TV 48 hours to 1 week 20 minute 100x Faster Source: Fabernovel GAFAnomics October

4 and digital newcomers have displaced legacy organizations at the top Top 5 publically traded companies (by market cap) Rankings as of 2018 Q2 Sources: Financial Times, Forbes, Yahoo Finance/Business Insider Primarily Digital Other 3

5 Digital disruptions have unlocked multiple possibilities Shifting to the digital way of working is necessary for organizations today to unlock scale and achieve success 4 Copyright 2018 by The Boston Consulting Group, Inc. All rights reserved.

6 What does it take to win? Linear vs. Nonlinear Thinking Collaboration vs. Competition Global vs. Local Approach 5

7 Non-linear thinking Key implications Look at the big picture, not immediate gains Define clear long term strategy to work towards and be prepared to take the right risks at the right time Reduce external dependence in delivering value to the customers Reduce dependence on policy support and continually focus on providing value to customers Think unconstrained Continually keep disrupting your business model identify adjacencies, expand the art of possible 6

8 Collaboration Key implications Collaborate externally: Perish alone or conquer together Identify the larger stakeholder ecosystem where effective collaboration is essential. Full potential of digital can be unlocked only with 100% seamless collaboration Collaborate internally: Harness collective power of the organization Multiple interdependencies exist in building a well functioning platform. Avoid organizational silos and build a cohesive organization 7

9 Global approach Key implications Leverage the digital infrastructure of the nation Digital landscape in most emerging economies today (especially in SEA) is ready to tap this opportunity. Leverage digital to increase catchment area and gain rapid access to consumers. Be ready for competition: Can come from anywhere, anytime Competition can come from any country, any alternative industry at any point of time in the age of digital. Stay alert, and stay ready, and respond immediately. 8

10 What capabilities need to be built? Scale vs. Complexity Relevance vs. Experience Analytics vs. Data 9

11 Scale vs Complexity Key implications Unlock scale using technology instead of size Digital disruption allows us to unlock scale with a lean organizational setup. Just need to build a 'Lets get it done' attitude Scale exists in providing an integrated solution Embrace the complexity inherent with providing an integrated solution for the customers 10

12 Relevance vs Experience Key implications Become digitally relevant Only years of experience not enough, need to proactively combine experience with digital relevance to generate the most relevant and impactful solutions Be flexible to change Continuously evaluate the environment around us, remove unnecessary processes and procedures and remain flexible to change 11

13 Analytics vs Data Key implications Build capabilities to leverage full power of digital Focus on building the required capabilities critical in leveraging the power of new age technologies like AI/ML 12

14 Be ready to think non-linearly and take appropriate risks Focus on providing value to the customers 6 Key Takeaways Collaborate within the ecosystem critical to succeed Unlock scale using technology Embrace complexity of providing an integrated solution Build talent relevant to digital age 13

15 The Digital Transformation Dilemma How can legacy organizations set themselves up for transformation? Start acting now Make the bold decisions Stay committed & focused 14

16 Thank You bcg.com