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ACCELERATING DIGITAL TRANSFORMATIONMEREDITH WHALENSENIOR VICE PRESIDENT, IT EXECUTIVE, INDUSTRY, SOFTWARE AND SERVICES RESEARCH
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Two and a Half Years Ago We Were all Experimenting
The power of crowdsourcing design
Keyless entry as a loyalty program perk
Robotic bartender for cruise ship “wow factor”
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Source: IDC DX Leadership Sentiment Study. A/P sample n= 277, March, 2017. Q: Is Digital Transformation a priority for your organization?
Today,Digital Transformation is a Priority for 82% of Organizations in Asia Pacific
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2017: Australian Organizations Are Advancing in their DX Journey
Source: IDC, Australia Digital Transformation Maturity Model Benchmark, 2017; n= 100, May 2017
5%
33%30% 28%
4%
Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter
32%
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Many Australian Organizations Are at a DX Impasse
Source: IDC, Australia Digital Transformation Maturity Model Benchmark, 2017; n= 100, May 2017
5%
33%30% 28%
4%
Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter
63%
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Organizations are Being Held Back by a Series of Challenges
Outdated KPIsDX Performance
Scorecard
Siloed DX Initiatives
DX Organization
Structure
Tactical PlansDigital
Roadmaps
Limited Expertise
Digital Capabilities
Silos of Innovation
Digital Platform
DIGITAL NATIVE
ENTERPRISE
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How Do We Accelerate Our Digital Transformation Efforts?
IT Organizational Approach
InnovationMethods Applied
Technology Investments Made
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Enables Executional Capability Determines Time to Market Provides Unique Differentiator
EXECUTION SPEED COMPETITIVE ADVANTAGE
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Digital Acceleration Methods
8
IT Organizational Approach
InnovationMethods Applied
Determines Time to Market
Technology Investments Made
Provides Competitive AdvantageEnables Executional Capability
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Digital Organization Structure
The DX Special Projects Team
DX
Discovering DX
Define DX Mission
The Office of Digital Transformation
DX
Establishing DX Governance
Establish DX Prioritiesfor Enterprise
DX DX DX DX
The Embedded Digital Business
Accelerating DX
Implement DXAcross Enterprise
DX
The Digital Business Unit
Creating innovative offerings
Create a disruptivebusiness
22% 51% 13%14%
Source: IDC DX Leadership Sentiment Study. APJ sample n= 168, March, 2017.
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Pushing for Consent, Not Consensus
• Created a multifunctional organization group called Digital Innovation Team – digital product managers, digital marketing, creative content, web designers, digital analytics experts, restaurant operations
• Technology, Marketing and Restaurant Operations are the three stakeholders invested in making the digital unit successful. All have a voice at the inception of every idea.
BLOOMIN’ BRANDS DIGITAL INNOVATION TEAM
ADVICE ABOUT ORGANIZATIONAL STRUCTURE
• Consent over consensus. “When you are dealing across multiple business functions, you can waste a lot of time seeking consensus.”
• Collaborative humility. The leader of the digital unit has to be humble and collaborative. “His great skill is his character – even more than his functional knowledge”
Donagh HerlihyEVP Digital and CIOBloomin’ Brands
“We started to say,‘Let’s understand which moves or decisions are
safe to try’.”
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From Projects to Products
• 3500 IT professionals shifted focus from IT projects and support to digital products and engineering
• Functional/departmental org replaced with “experience value streams” –client, advisor, and employee.
• Hundreds of positions eliminated and refilled with digital skills• Offshored commoditized infrastructure and development moving to
managed services.
IT ORG NOW CALLED CLIENT AND DIGITAL EXPERIENCE GROUP
SELF-AUTONOMOUS TEAMS FOCUSED ON BUSINESS OUTCOMES
• 20+ job descriptions down to 7 core jobs• All in with Agile/Lean and DevOps• Teams are assembled and reassembled by workload needs and backlogs
Karl GourverneurVP and Head of Digital Innovation and Workplace
Northwestern Mutual
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Digital Acceleration Methods
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IT Organizational Approach
InnovationMethods Applied
Determines Time to Market
Technology Investments Made
Provides Competitive AdvantageEnables Executional Capability
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Innovate through Acquisition
http://www.bmw.com/com/en/insights/corporation/bmwi_ventures/
BMW i Ventures has invested in 16 car-related start ups in the past several years.
“Now, we aim to become the leading tech company and innovation driver in the field of mobility.”CEO, Harald Krueger
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Innovating From Within
Source: IDC DX Leadership Sentiment Study. Australia sample n= 25, March, 2017. Q: Please indicate which of the following actions you are using to drive innovation at your organization
InnovationCenters
48%
Internal Kickstarters
40%
Ideation Retreats
40%
TOP STEPS TO DRIVE INNOVATION IN AUSTRALIA
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Creating Innovation Centers that DeliverBloomin’ Brands Aligned with Needs of Customers and Business
“Not ready for Prime Time”Their customers want a more social experience
Evolve concept to messaging platform
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Understand How Technology is Already Being Used
Source: IDC ConsumerScape 360° Survey. Document # US41562216, n= 42,328 worldwide consumers. Document #US41564616, n=1122 US consumersSource: 2016 Consumer Internet of Things Survey, March 2016, N=889 16
Life Activities
12% of consumers
primarily get their TV programming through
paid online video streaming services
26% of consumers’ time spent on their own personal PC is for
work related activities
LEISURE ENTERTAINMENT
WORKING AND STUDYING
43% of health and fitness
band users track sleep at night
43% of consumers use
intelligent assistants for navigation
RESTING TRAVEL
17 Hoursa week. The average
amount of time consumers spend in social and messaging
sessions.
34% of consumers willing
to share more personal information
to get discounts
70% of health and fitness
bands consumers use them daily
SOCIAL AND FAMILY
DINING AND SHOPPING
HEALTH AND SPORTS
“We are really focused on how we can integrate our offerings smoothly and seamlessly into the digital life of our customers.”Thom Brenner, BMW Group Vice President of Digital Life
Techniques Employed By IT Organizations to Meet the Needs of Customers
17Source: IDC CIO Sentiment Survey, June, 2017 – 150 IT Executives
How do you ensure that IT digital transformation work meets business and customer needs?
DESIGN THINKING
VALUE STREAM
MAPPING
LEANSTARTUP
PRACTICES
62% 54% 47%
CUSTOMERJOUNREY
MAPS
43%
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Uncovering Moments of Truth
• Adopted design thinking principles
• Dispatched developers to learn directly from customer about what they want and need
• Evolved from client-focused systems design practices (usability testing) to uncovering “moments of truth” – situations where stepping up the client experience would make a significant positive impact and could represent a defining moment in the client’s relationship with Vanguard
HOW VANGUARD’S IT ORGANIZATION LEARNS ITS CUSTOMERS NEEDS
John MarcanteCIO, Managing DirectorVanguard
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Digital Acceleration Methods
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IT Organizational Approach
InnovationMethods Applied
DeterminesTime to Market
Technology Investments Made
Provides Competitive Advantage
Enables Executional Capability
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Dubai is Betting on Transformational TechnologiesReinvent the City
Embracing technology innovation
Making Dubai the most efficient, seamless, safe and impactful experience for residents and visitors.
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Technologies A/P Digital Leaders See as Transformational
Source: IDC DX Leadership Sentiment Study. APJ sample n= 168, March, 2017. Q: From a business impact perspective, select whether each technology is transformational, incremental, opportunistic, or not applicable in enabling your organization's Digital Transformation?
61%
40%
35%
32%
17%
IoT
Robotics
Blockchain
3D Print
AI
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Taking the Lead
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How IDC Sees Technology Transforming Industry
202150% of large
retailers use robots in customer facing roles such as store
greeters, or assistants.
202625% of paramedics
and emergency rooms use field-
ready 3D printers to deliver real-time
wound care.
2019Usage Based
Insurance (UBI) will account for at least 15% of the global vehicle insurance
market
202040% of ecommerce
is enabled by cognitive personal
shoppers and social networks
2026more than 40% of
US field service calls in manufacturing are managed by
virtual service technicians.
2020 Blockchain/
distributed ledger technology will be adopted by 20% of
trade finance worldwide
15% 40% 50% 40% 20% 25%
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Once Through the Challenges, You are Cleared to Digitally Transform
20202017 2027
Full Digital Transformation
2022
Innovation Realization
Getting Digital Done
The DigitalImpasse
63%of Australian
organizations are still in stage 2 or 3
80% of revenue growth will
depend on digital offerings and operations
75% of organizations will
have digitally transformed
50% of total technology
spending will be data related investments
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Accelerating Your Digital Transformation
Execution Speed Advantage
For More Information
LinkedInhttps://www.linkedin.com/company/idc
Twitterhttps://twitter.com/@IDC
www.idc.com
Meredith [email protected]
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