digital strategies - closing the gap between business and it

May 12, 2015

Sten Hubendick

David Permansson

Digital Strategies - Closing

the Gap Between Business

and IT

2 Copyright © Capgemini 2015. All Rights Reserved

Digital Customer Experience & Mobile Solutions TLI | April 2015

Technology is changing the people, businesses and society

% of Tech Companies

1956 2011 1982

3.3% 3.3% 27%

100%

80%

33%

• No major change in the DJIA between 1956-1982

• Significant change in DJIA, several leaders lost dominance

• % of tech companies increased tremendously

% of Companies Surviving in the DJIA 1956-2011

Consumerization of technologies Business landscape changing Disruption across industries

2

Bandwidth Devices Content & services

Consumerization of technology

! !

User experience

https://www.uber.com/

TURNING TECHNOLOGY INTO BUSINESS TRANSFORMATION

LEADING DIGITAL 5 YEARS OF JOINT RESEARCH…



Our Research with MIT Center for Digital Business

Source: Capgemini Consulting-MIT Center for Digital Business Analysis – Digital Transformation: A roadmap for billion-dollar organisations (c) 2012

Click here to view our latest

MIT thought leadership

Fas

hio

nis

tas

Dig

ital M

as

ters

Beg

inn

ers

Co

ns

erv

ati

ve

s D

igit

al in

ten

sit

y

Transformation management intensity

+26% -11%

http://www.capgemini-consulting.com/digital-transformation

http://www.capgemini-consulting.com/digital-transformation



Bringing it together – common components of a Digital Master



Digital has informed and

amplified customer

expectations

Digital is removing

traditional constraints in

operations

Digital business models can

reorder value chains and

create new opportunities

BUSINESS

MODEL

CUSTOMER

EXPERIENCE OPERATIONS

Digitally-modified business Customer Understanding Process digitization

New digital business Top Line Growth Worker enablement

Digital globalisation Customer Touch Points Performance management

… understanding technology drivers that fuel digital transformation …



TECHNOLOGY VISION

ENGAGEMENT GOVERNANCE

… and creating a sustained Business / IT fusion …



Introducing TechnoVision 2015 …

The latest edition of a Business Technology

Dialogue Tool that is provocative, insightful,

compelling, and different; helping you to

- Master the latest technology trends

- Create an ongoing dialogue between Business and IT

- Identify the most relevant technology drivers for your digital

journey

- Re-assess existing strategies, portfolio plans and architectures

- Find new and unexpected perspectives on technology



A simple framework to position technology drivers that underpin Digital

Transformation …



.. categorized in 30 trends and 7 design principles ..

1. All In A Catalog

2. Reborn In The Cloud

3. Elastic Business

4. API Economy

5. No Apps Apps Applications

Unleashed

1. No Keyboard

2. Object Of Desire

3. Get A Life

4. End User, End Producer

5. Digital Self You

Experience

1. Social Is The New Oil

2. Egosystem

3. Social Workers

4. No Work

5. Friend That Machine We

Collaborate

1. My Data Is Bigger Than

Yours

2. Real Real Time

3. Now You See Me

4. Data Apart Together

5. Cognito Ergo Sum

I

0

I

0

I

0

I

0

I

0

I

0

Thriving on

Data

1. Shades Of Process

2. Process Is The New App

3. Co-Process

4. Silo Busters

5. No Process Process on

the Fly

1. Virtual Lego

2. Let’s Get Physical

3. Build Release Run Repeat

4. Orchestrate for Simple

5. What Would Amazon Do? Invisible

Infostructure

1. Digitally Intense

2. Business Mon Amour

3. What’s Your Story?

4. From Train To Scooter

5. Bon Risk Appétit

6. Platform No 3

7. Hack My Business Model

Design For Digital



Design for Digital

Four simultaneous technology disruptions – Cloud, Mobile, Big Data, Social - call for and enable

Digital Transformation

Through Digital Transformation, enterprises are becoming Digital Enterprises

In Digital Enterprises, technology takes a new place and assumes a new role; it is no longer just

aligned with business change, it is an integral, end-to-end part of it

The Design for Digital principles reflect this new role and place: UPSTREAM / SYNERGETIC /

SOCIAL / FAST

Whatever technology-driven change you are planning in your business, these design principles

should be considered, validated and applied throughout



Born In The Cloud

The Cloud has set a new benchmark for how quick, flexible, cost-effective and scalable solutions

should be available. This has a transformative impact on the demand and supply sides, as

expectations shift. Many organizations are not ready to get all their solutions from the Cloud, but the

new normal is already there and the expectations particularly on the business side have considerably

changed. For new solutions, the Cloud should be the default scenario, only then to be ‘softened’ by

pragmatic considerations around integration, security, legislation and manageability.



Rebuilding the foundations…



What Would Amazon Do?

Global public cloud providers such as Amazon Web Services and Microsoft benefit from their

economies of scale to provide ever-growing catalogs of advanced cloud IT services. Although many

considerations may slow down the rapid uptake of (public) cloud, these catalogs already set the new

benchmark to beat in terms of cost effectiveness, flexibility, scalability and speed-to-market.

Businesses are expecting powerful services that they can activate themselves with minimal upfront

investment and pay for per use. So ask yourself regularly in your data center:

"What would Amazon do?"



Cloud benchmark to beat



Vanilla Tastes Good

Many core applications – both custom built and package based – used to have a differentiating value

to the business. Now they are often consuming the bulk of available IT budget due to excessive

maintenance costs, while the differentiating ‘edge’ is already found elsewhere, in other solutions

around mobile, social, BPM and Big Data. Time to drastically move to good old ‘vanilla,’ using out-of-

the-box, non-customized versions of standard (cloud-based) software or by step-by-step rationalization

of homegrown applications to leaner, simpler versions that are easier and less costly to maintain.



Salesforce.com: Cloud pioneer in sales and marketing…



… and a lively applications market …



… with the API managed as a product …



… and applications becoming micro services …



… and big players quickly joining …



… it’s all about the recipes



Agile high-productivity development



3rd

Life after the Mainframe and the PC …



Moving between platforms



… solve problems like humans do



… augmenting the ‘self’



SE SFDC Team IoT Showcase – Enterprise Health Tracking and

Campaigns Running on SFDC



The consumerization of IT and the availability of Cloud solutions have brought technology closer to the

business than ever before. True Digital Transformation creates a fusion between digital capabilities and

business change, rather than just aligning it. The IT function in an organization is successful if the

business side happily takes the stage to testify about its benefits, and also takes the lead in

business/IT projects and holds a significant part of the budget for innovation. An ongoing dialogue is

crucial for this, together with an architected platform to enable digital change and a shared,

end-to-end transformation approach.



The World Retail Banking Report 2015

Global customer experience levels have stagnated. Customers

likely to leave their bank in the next six months increased to over 15%

in some regions.

Gen Y continues to report lower positive customer experience

levels versus other age groups, underscoring banks’ challenge to

meet Gen Y’s expectations. Less than 50% of Gen Y customers

globally are likely to remain with their primary bank in the next six

months.

Banks still have work to do in transitioning customers from

branches to digital channels. Customers perceive the branch as

offering better service than the internet for both complex and simple

services.

The competitive threat to banks is accelerating due to the bank’s

inability to quickly adapt and innovate while burdened with legacy

infrastructures and the introduction of agile and digitally-savvy non-

traditional players and new entrants such as Apple Pay or

crowdfunding sites



Customer Overview



MISSION CAIXA´s Mobile Program



Situation Preview

SCENARIO ASPECTS

One institutional App with 200 functionalities

Reflect the web portal aspects

Current development methodology does not fit mobile needs

None internal app



Define a new way to do mobile banking

Alignment with the new mobile explosion

Expand the user base

Increase the number of products offered in the channel

Surpass the market

Strategic Aims



Challenge

ENVIRONMENT ASPECTS

Several line of business

Very distinct audience target

Lots of products and services to go live



APPROACH Mobile Strategy



The next generation of Business Technology solutions has a short time to market, is created and

delivered in an agile way and is developed and owned in the nearest proximity of the business. These

solutions are much like Scooters and Cars, where the current applications landscape typically is

populated with Trains and Buses. Think about when to apply the right rhythm, build the ‘hub’ platforms

to support and start to explore new, flexible ways to build solutions, applying agile approaches such as

SCRUM and rapid development tools.



Move from more than 200 distinct transactions

in only one app to the right set of apps

Ecosystem of Apps

Platform to support high number of Apps



We are spoiled, ‘consumerized’ users of technology nowadays. We expect compelling, aesthetic user

experiences as a default and we want to use our own, favorite devices. If that expectation is not met,

we disconnect; in our role as consumers, but just as much as enterprise workers. Create desirable

apps that facilitate specific tasks and contexts and hide what’s underneath. Apply Design Thinking,

Gamification and Responsive Design so that the apps morph into the overall experience of clients and

enterprise users. Turn your mobile app store into a candy store and enable any device.



What Makes Good UX

The critical success factors for an effective UX strategy

Decreased sales

Poor performance

Low adoption

Low credibility

Brand erosion

Low competitive

advantage

Low loyalty

High support/training

costs

High development costs

Staff attrition

Low staff morale

Relevant Do what users need

Drive Desirability

Useful / Product Fit /

Inspirational

Usable Do what users need well Drive Adoption

Efficient / Pleasant / Ease

to use, learn and

remember

Attractive Looks beautiful to users

Delivers Trustworthiness

Visual Appeal / Trustworthy /

Consistent / On Brand

Increased sales

Improved

performance

Desirability

High adoption

Credibility

Brand awareness

Engagement retention

Conversation loyalty

Competitive

advantage

Lower support/training

costs Lower

development costs

Increased exposure

High staff morale

Attractive Appealing

and on brand

UX Strategy

= Relevant Design the

right product

Usable Design the product

right

+ +



Keep it simple

Unique experience

Re-Think functionality distribution



Gamification engages everybody



With core applications becoming ‘vanilla’ again, the differentiating edge of IT solutions will come from a

next generation of applications that are not really applications anymore. They are quickly created by

gluing reusable, catalog-based IT services together. They leverage visual, model-driven platforms that

work from business process descriptions to generate code. They use self-service BI, BPM and

business rules tools to create solutions in close proximity to the business. They apply mobility and

portal platforms to create new interfaces without diving into the software underneath.



Optimize iteraction

No more weeding cakes

Give personalized Cupcakes

Consequence - Re-Think functionality distribution



Ideação

Ambientação

Validação

Imersão

CONSULTING

Elaboração

Construção

Transição

Iniciação

DEVELOPING

Preparação

Execução

Renovação

Avaliação

LABORATORY

Manutenção

Distribuição

Monitoração

Atendimento

SUPPORTING

NEW Methodology

Ideation

Environment

Validation

Immersion

Elaborate

Construct

Deploy

Initiate

Prepare

Execute

Renew

Evaluate

Maintain

Distribute

Monitor

Reception

ES

SE

NC

IAL

SE

RV

ICE

S

4

Caixa Mobile Innovation



Follow market

tendencies

Specific Ecosystem

Monitoring

stores & Users

posts

Full lifecycle

of the APP

Fast response

Distinct platforms

DEVELOPING

CONSULTING LABORATORY

SUPPORTING

Caixa Mobile Innovation Method



RESULTS Mobile Program Current State



Main Business Areas (72 identified Apps)

Banking, Mobile Payments (2)

People (8) Corporate (4) Mortgages (7)

Automobiles (4) Lottery (2) Social Programs

(5) Culture (1)

Employees (1) Agribusiness (3) Insurance, Welfare, Capitalization and

Consortium (5) Investments (4)

Education (5) Government (6) Corporate

Departments (12) Sports

Sponsorship (3)


UPM Account Dossier | March 2013

AppsTwo WinCentre – Research Support

Wrapping up...



Technovision often used in an Collaborative and

Inspirational type environment …



… providing tangible building blocks …



… for weaving together Digital storylines …



Find out more on capgemini.com/technovision and on the CTO blog

for the 2015 update series …

Sten Hubendick

DCX Lead Sweden, @stenhub

David Permansson

Mobile Team Lead Sweden,

@permansson

Thank

You!

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