Digital Transformation: Innovate, Integrate and Incorporate Emilie Ditton Research Director, WW Mining and Asia Pacific Energy Insights
3 rd platform has gone mainstream in ICT marketplace Source: IDC ICT Spending Guide (2P vs 3P for APJ), 2016 3
Lifting the Lid off Underground Mining Creating Visibility Transparency and Control A Canadian mining company Brownfield gold, copper and silver mine in Bulgaria Purchased in 2003 Investment was based on achieving a large margin enhancement 4
Lifting the Lid off Underground Mining What they did Connecting Assets Devices & People Integrating data, changing processes, interconnecting decisions 2x production, 0.5x costs: no increase in equipment 6
Lifting the Lid off Underground Mining The three success drivers Leadership Culture Technology & Process change Vision from the top Focused on: -People -Change management -Innovation DNA Clear intent and strategy Avoid complexity Process change Vendor engagement 7
What s Next? Digital transformation in Australia Leading in 3D: Learnings from Dundee Precious Metals Final thoughts IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
What is digital transformation? Leadership Transformation Omni-Experience Transformation Information Transformation Operating Model Transformation WorkSource Transformation
DX in Australia DX will help us compete differently 48.9% The CIO is leading DX efforts 86.3% Information DX is most critical 79.9% IDC C-Suite Survey June 2016, AU n = 201 Open innovation is a focus 65% Aim for IT to deliver business innovation as a partner 79.9% The CEO believes IT will transform the business 49%
But IT is Not Ready. 46% 2% 35% 13% 4% Only 17% of IT organizations are effective partners in DX D X WA RY D X TA C T ICIANS D X E M B R A C ERS D X CHANGE A G E N T S D X V I S I ONARIES Source: IDC, Leading in 3D Maturity Model Benchmark, 2016; n= 160 IT Executives, January, 2016 IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
What Are the Barriers Blocking Your IT Organization from Moving Forward? COMMON IT ORGANIZATION BARRIERS TO LEADING DIGITAL TRANSFORMATION 33% 28% 23% 9% 5% 2% People We do not have enough people with the right skills Legacy Systems We have legacy systems to support that consumer 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=94 IDC Visit us at IDC.com and follow us on Twitter: @IDC 12
The Three Hats We Need to Wear When Leading in 3D Innovate with Business to Create a Digital Enterprise Goal: Create an innovative and digitally competent IT Organization Focus: IT organizational development, talent management & innovation process Integrate Digital Capabilities with Enterprise IT Platform Goal: Create a reliable, scalable and secure digital infrastructure Focus: IT service management and enterprise architecture Incorporate New Techniques and Technologies into IT Organization Goal: Create a flexible and optimized IT infrastructure incorporating new tech Focus: Vendor sourcing, changing management and process change 13
Innovate: IT s goals and KPIs Create an innovative and digitally competent organization. Lessons from Dundee Precious Metals: Understand where it is you are trying to get to. Have a vision. Engage in the ecosystem Creating new revenue streams Focus on IT organization development and talent management: IT must be a partner to the business fostering IT-enabled innovation Talent is key Create an innovation culture focused on outcomes and multitier digital revenue streams. 14
Integrate: IT s goals and KPIs Create a reliable, scalable and secure digital infrastructure. Lessons from Dundee Precious Metals: Innovation does not need to be complicated. Collaborating across cross functional teams Focus on creating stable business services: Broker, integrate and orchestrate delivery of IT services. Implement cross functional DX program management. Deliver enterprise applications 15
Incorporate: IT s goals and KPIs Create a flexible and optimized IT infrastructure. Lessons from Dundee Precious Metals: Put the foundation in place Create relationships with vendors that are truly partners and deliver value far beyond the contract This is a continuous process Focus on IT and business service management as well as vendor sourcing and management: Modernize infrastructure to support digital organization. Drive innovation while running current IT environment. Incorporate new skills into existing IT organization. 16
For Success It starts at the top! Partnerships are critical Look beyond ROI metrics for justification Have a roadmap. Review regularly Fund from efficiency improvements Process, Process, Process
Emilie Ditton Research Director WW Mining & Asia Pacific Energy Insights, IDC editton@idc.com @editton www.idc.com