Digital Transformation: The imperative to Change. Why, What, How
Daniel-Zoe JimenezAssociate Director, Digital Transformation, Big Data/Analytics
IDC Asia [email protected]
@DZ_Jimenez
2
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?
5 Warning signs - Time for a major change?
@DZ_JimenezSource: IDC Digital Transformation Practice Research 2016
Change is necessary, but why now? Adaptation vs Transformation
@DZ_Jimenez
Transforming is no longer an option, it’s a requirement to stay relevant1
Your battleground will be the relationship with the customer2
Data is at the center of transformation. To succeed organizations need to
focus on their most critical asset: People
3
By 2018 33% of top 20 organizations in each industry
segment will be disrupted by new competitors.
@DZ_JimenezSource: IDC Digital Transformation FutureScape Predictions 2015, & DX Practice Research
5
Leadership Transformation
Omni-Experience Transformation
InformationTransformation
Operating ModelTransformation
WorkSourceTransformation
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
information-based
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.gcrowdsourcing).
The Rise of Digital Transformation - Transform or perish
@DZ_JimenezSource: IDC Digital Transformation FutureScape Predictions 2015
6
People
Improve employee
productivity & profitability
Omni-X
Integrate digital channels to
deliver omni-experiences
Data
Create a data-driven &
customer-centric Org.
CX
Providing personalized
customer experiences
20% 14%16%New
RevenuesDrive new sources of revenues
(connectivity)
Ecosystem
Gaining a holistic view of
the business ecosystem
13% 10%13%
What is Driving DX - Top initiatives in Asia/Pacific
@DZ_JimenezSource: IDC APeJ DX Pulse Survey 2015-2016 n=740
7
How do you transform? Priority areas
Source: IDC Digital Transformation Research Practice, 2015 @DZ_Jimenez
Operating ModelTransformation
New Digital Revenue Streams
InformationTransformation
Informationas a Competitive
Advantage
WorkSource Transformation
Ecosystem-based
Workforce
Omni-Experience Transformation
Blend Physical and Digital
Experiences
Leadership Transformation
An “Outside In” Business
Environment
Many organisations are just beginning their digital transformation journey
Digital Explorer
Digital Transformer
Digital Resister
Digital Player
Digital Disruptor
Ad hoc(Shallow)
Opportunistic(Enriched)
Repeatable(Multidimensional)
Managed(Amplified)
Optimised(Disruptive)
Source: IDC Digital Transformation MaturityScape, 2015
IDC’s MaturityScape for Transforming Digitally
@DZ_Jimenez
9
14%
32% 32%
14%
8%
45%
33%
15%
6%
1%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Ad Hoc Opportunistic Repeatable Managed Optimized
US APeJ
How mature are organizations in Asia/Pacific?
@DZ_JimenezSource: IDC APeJ Digital Transformation MaturityScape Benchmark, 2016
Digital Explorer Digital TransformerDigital Resister Digital Player Digital Disruptor
What are the barriers blocking your IT organization from moving forward?
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
People
We do not have enough people with
the right skills
CultureWe do not have a risk
taking, innovation
culture
Legacy Systems
We have legacy systems to
support that consume our
efforts
Incentive SystemsOur current evaluation
system does not measure us on
innovation
32% 25%28%
Source: IDC IT Executive Survey, Jan, 2016, n=103
Partnerships
Our LOB peers do not perceive
us as adding value in DX
Leadership
Our IT leadership
does not have the right vision
5% 2%8%
@DZ_Jimenez
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
People - Rebalance your talent portfolio for DX Competencies
Source: IDC, IT Staffing Survey 2015 – N=90
INVEST
CULTIVATE
RETRAIN
OUTSOURCE
@DZ_Jimenez
12
Culture – Driving a Digital Transformation mindset
@DZ_JimenezSource: IDC IEP and Digital Transformation Practice Research
CHALLENGE TRADITIONAL BUSINESS (Digital Resisters)
DIGITAL TRANSFORMATION MINDSET(Digital Transformers)
FAILURE • Minimize Failure• Strongly discouraged
• Rapid failure informs success • Focus on Experimentation - fail fast and
move on to next project
SOURCES OFINNOVATION
• Defined by leaders/Mgmt.• Small steps
• Domain leaders collaborate in Cross-functional teams, Digital COE, Labs to drive Skunk-works / blue sky projects
RECOGNITION & METRICS
• Inconsistent & infrequent• Metrics focused on outputs
only
• Recognition & celebration of Innovative approaches
• Metrics focused on efficiency & ecosystem
Tech - Top tech priorities - Asia/Pacific 2016-2017
1
2
3
13Source: IDC APeJ Digital Transformation Survey, and AP Software Pulse Survey 2016
5
4
Ease of use & Design
Faster time to value
Better Integration
Scalability & Easy deploy
Ease to customize
For ERP/Apps
@DZ_Jimenez
1
2
3 Datacenter infrastructure
Customer Facing apps
Back office apps (e.g. ERP)
For DX
The Digital Transformation Journey
Strategy
People
ProcessTechnology
Data
Leadership Transformation
Omni-Experience Transformation
InformationTransformation
Operating ModelTransformation
WorkSourceTransformation
@DZ_Jimenez
