Digital Transformation - what are the key building blocks?

CIO Focus Summit | Bowden Hall Hotel Gloucester| 15 November 2017

David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter

innovation | digital transformation | value creation | (r)evolution

Agenda

• About the new business landscape

• Digital Enterprise Wave

• Who owns the future?

• The Management Shift

• Leading Digital

• Digital Transformation – a definition

• How do you transform?

• 8 Strategic Building Blocks

• The key message

Hang on - can you explain this new digital landscape?

"Move bits, not atoms."

January 1995

Forums – Usenet in the 70s, web based forums & bulletin board services start ‘94 – online journals ‘94

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Being Digital – Nicholas Negroponte – moving atoms to bits – published Jan ‘95

Wikis – Ward Cunningham installs first wiki Mar ‘95

Blogging – term “weblog” John Barger Dec ’97, “blog” used as noun and verb Peter Merholz Apr ‘99

Wikipedia – opens Jan ‘01

WordPress – first released May ‘03

LinkedIn – launches May ‘03

Flickr – launches Feb ‘04, acquired by Yahoo Mar ‘05

Facebook – launches Feb ‘04

iPhone – announced Jan ‘07, available Jun ‘07

iPad – launches Apr ‘10

Twitter – 1st tweet Mar ‘06, SXSW Mar ’07, Apr ‘07

Instagram – Oct ‘10

Snapchat – Jul ‘11

Tumblr – Feb ’07

WhatsApp – Feb ‘09

Pinterest – Mar ‘10

20 years of a World Gone DigitalThe development of social media, social networks and mobile computing

YouTube – launches Feb ’05, acquired by Google Oct ‘06

Skype – launches Aug ’03, acquired by eBay ‘05, Microsoft May ‘11

Your business model is under threat!

Necessity is the mother of invention

Reinvention is the mother of necessity

The Digital Enterprise Wave

ride it

or go under!

Infrastructure

Connectivity

Internet

WiFi

3G & 4G

Human Factors

Entrepreneurship

Crowdsourcing

Millennials

Economic

Outsourcing

Offshoring

Low cost

The Digital Enterprise Wave

The Big Shift

Cloud Social Mobile

The Digital Enterprise Wave

Emerging Technologies

Internet of Things

Big Data & Analytics

3D Printing

Artificial Intelligence

Everything will have an IP address

Gartner predicts 25 billion connected devices by 2020

The Digital Enterprise Wave

“Business as Usual” Thinking

Point Social Media Solutions

Siloed Communities

Lack of Integration

Legacy Systems of Record

Business as Usual

The Digital Enterprise Wave

We need “Digital” Thinking

Digital and Social inside and out

Business Model Innovation

Systems of Engagement

Design Thinking

Strategy

Skills

Staff

“Shared Values”

Structure

Systems

Style

Hard Systems

Soft Systems

Integrates “hard” and “soft” business systems in a structured way

“technology neutral”

Includes employee engagement

Proven approach

Especially useful for lessons in managing major change

McKinsey 7 “S” Model

The Digital Enterprise Wave

The shift to Digital - what are we calling it today?

• Enterprise 2.0 → Social Business → Digital Transformation

• You need an ESN or social collaboration platform at the heart

• It’s about much more than technology

Nexus of forces

“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”

Peter Drucker

“At the height of its power, the photography company Kodak employed more than 140,000 people and was worth $28 billion. They even invented the first digital camera. But today Kodak is bankrupt, and the new face of digital photography has become Instagram. When Instagram was sold to Facebook for $1 billion, it employed only 13 people. Where did all those jobs disappear? And what happened to the wealth that all those middle-class jobs created?”

Jaron Lanier

Leading Digital

Digital Transformation – a definition

Digital transformation is the process of shifting your organisation from a legacy approach to new ways of working and thinkingusing digital, social, mobile and emerging technologies. It involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitisation of assets and an increased use of technology to improve the experience of your organisation's employees, customers, suppliers, partners and stakeholders.

What are the building blocks?

Culture

eats Strategy for lunch

Leadership

mindset, teamwork, vision, purpose, openness, sharing

No One Size Fits All

End to End Solution

Strategy

Skills

Staff

“Shared Values”

Structure

Systems

Style

Continuous Reinvention

Get Creative

make innovation, thinking, experimenting a natural part of your working practice

Balance – Inside and Out

not just the customer experience, but employees, suppliers, stakeholders

Design Thinking

The 8 Building Blocks

References

Not for reading – just for reference

http://en.wikipedia.org/wiki/Nicholas_Negropontehttp://en.wikipedia.org/wiki/Being_Digitalhttp://adjuvi.com/what-is-digital-business-is-it-e-commerce-the-collaborative-economy-or-apis-yes/http://www.industrytap.com/everything-internet-will-be-14-4-trillion-market-by-2020/3054http://www.zdnet.com/article/25-billion-connected-devices-by-2020-to-build-the-internet-of-things/http://www.zdnet.com/article/the-new-cio-mandate/ http://www.jaronlanier.com/futurewebresources.htmlhttp://www.themanagementshift.com/ http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie=UTF8&qid=1416926793&sr=1-1&keywords=leading+digitalhttp://spartinaconsulting.com/our-services/culture-leadership-valueshttps://www.flickr.com/photos/marine_corps/6032659138http://www.compendian.com/2014/12/do-you-provide-a-one-size-fits-all-approachhttp://gapingvoid.com/2011/07/28/permanent-state/http://themindunleashed.org/2014/10/understanding-flow-eight-steps-enhancing-creativity-productivity.htmlhttp://scn.sap.com/people/community.user/blog/2008/12/31/knowledge-management-in-crmhttp://dschool.stanford.edu/fellowships/2013/10/23/a-design-thinkers-cheat-sheet/

David TerrarAgile Elephant | Cloud Industry Forum

p: +44 (0)1727 866309 m: +44 (0)7715 159423

e: dt@d2c.org.ukw: www.theagileelephant.comskype: david_terrartwitter: http://twittter.com/DT @DT linkedin: http://www.linkedin.com/in/davidterrarblog: http://theagileelephant.com/blog& http://medium.com/@DT

innovation | digital transformation | value creation | (r)evolution