Role of PPM in Digital Transformation

Presented by: Ma. Elizabeth A. Francisco, PMP, PSM I, MTM

AGENDA

• The Digital Economy• Digital in 2018 and the Digital Landscape

• Challenges of Digital Disruption

• How Should Organizations Respond to Remain Relevant?

• Evolving the Role of PPM in Digital Disruption

The Digital Economy

Digital in 2018

The 2018 Global Digital suite of reports from WeAreSocial and HootSuite reveal we have passed the 4 Billion mark in terms of Internet users.

Source: https://wearesocial.com/blog/2018/01/global-digital-report-2018

What is the Digital Economy?

According to MIT Technology Review, Digital Economy is the economic activity resulting from the billions of online connections among:

It’s changing everything.

Businesses

Data Processes

Devices

People

Source: https://www.technologyreview.com/s/545931/defining-the-digital-economy/

The Digital Landscape

o Increased flow of information and accelerated pace of business change

o The Digital Customer: Changing Behavior of Customers and Evolving Markets ▪ Focus on User & Customer Experience (UX and CX) – what is “meaningful” for

the customer?▪ Always connected “Hyperconnectivity”▪ Demanding▪ Use of Multi-device (and expecting smooth experience in switching between

devices) ▪ Empowered consumers demand digital innovation

o Catalysts for Digital Transformation▪ Omnichannel, Cloud, Mobile, AI, Robotics, Big Data & Analytics, Social Media,

IoT, 3D Printing, Augmented Reality, and more

Challenges of Digital Disruption

• Window of digital opportunities is short-lived: Competition becomes stiffer as Startups are seizing untapped markets

• Harder to retain empowered customers due to availability of information (i.e. ineffective gathering and leveraging of customer data) and ease of switching

• Lack of a clear vision for a digital future and how the organization will support the digital customer

• Lack of a critical approach to ensure the right programs and projects are pursued, to optimize resources and deliver the most value to customers, due to often confusing mix of interrelated, dependent and connected projects

Challenges of Digital Disruption

• Lack of digitally-skilled workforce

• Inflexible technology stack and development processes, i.e. maintaining the status quo

• Data Privacy, Cyber Threats and Security concerns

• Need to modernize and update regulations and industry standards

How Should Organizations Respond to Remain Relevant?

o Create a Culture of Innovation and “Experimentation”. Focus on ideas that will leapfrog the organization

o Agility is the key to surviving in the Age of Digital Disruption

o Reinvent Business Models (i.e. digitally-enabled)

o Transform products by digitizing customer experience

o Shift of Focus from Value Chain to Delivering Value to Customers through ▪ Cost value (offering the customer a lower cost or other economic gains); ▪ Experience value (offering the customer a superior experience); and ▪ Platform value (creating network effects that benefit customers)

“Creating your Customer’s future” (Source: www.strategy-business.com)

How Should Organizations Respond to Remain Relevant?

o Pursuing programs, projects and initiatives to support the Organization’s Digital Strategy

▪ Digital first: Building a digital mindset and developing digital capabilities (adopting skills in the new digital technologies)

▪ Shift toward R&D, Product & Technology Development and aligning programs and projects to the Digital, Product, and Technology Roadmaps

▪ Reinvention of business practices to derive maximum value from digital technologies such as mobile technology, cloud, AI, Big Data, and others, and being cognizant that these technologies rapidly change

o Improved cross-functional collaboration, where business units work closely with R&D teams and IT

oPut in place, flexible business processes and structures to support, and not inhibit the frequent iteration and course corrections

Evolving the Role of PPM in Digital Disruption

Evolving the Role of PPM in Digital Disruption

Enterprise PPM considers the big picture of all programs and projects grouped together, past, present and future, and calculates the optimal prioritization and sequencing of programs and projects to maximize return on investment, as well as enhancing the value delivered to customers, both inside and outside the organization.

▪ Investment Mix Optimization

▪ Strategic Alignment

▪ Schedule Optimization

▪ Project Prioritization

▪ Supply-Demand Balancing and

▪ Effective Forecasting

Evolving the Role of PPM in Digital Disruption

Enterprise PPM answers the following questions:

▪ With many competing projects and priorities stretching resources in different directions, how do you know if you’re making good decisions, prioritizing the right projects, and freezing or cancelling those that do not really support contribute to your digital transformation program?

▪ How do you know if you’re focusing your teams on programs and projects that offer the right amount of value, will support the company’s Digital Roadmap, contribute to the company’s competitiveness and help achieve the bottom line?

▪ How will you know the status of projects and if they’re in trouble, without the ability to actively monitor portfolio performance and have an alert system to inform and prevent discrepancies, gaps and conflicts?

Evolving the Role of PPM in Digital Disruption

In supporting digital transformation, PPM enables or supports

▪ Informed investment decisions by integrating enterprise analytics powered by big data and harvesting precise, granular and timely insights through regular and more frequent updates from teams

▪ Improved alignment to organizational priorities with the move toward Agility, i.e. Regular Touchpoints promotes Prompt response to Changing priorities, needs and resource levels

▪ Enhanced view of cost/benefit and value analyses, which helps the organization rethink how projects should be governed, and improve management of scope, costs, schedule, resources, and risks

Evolving the Role of PPM in Digital Disruption

▪ Top-to-bottom integration of programs and projects

▪ Iterative Development vs. Plan-driven Program & Project Execution

▪ Creation of a Digital Scorecard, to better track and monitor the desired outcomes of investing in new digital technologies and the pursuit of projects in the Digital Transformation Program

- Enhancing the Customer Experience

- Speed to Market

- Sales and Marketing Productivity

- Cost Reduction through Operational Efficiencies (e.g. thru Automation)

Online References

• 2018 Global Digital suite of reports https://wearesocial.com/blog/2018/01/global-digital-report-2018

• “Defining the Digital Economy” by MIT Technology Review https://www.technologyreview.com/s/545931/defining-the-digital-economy/

• “The Reign of Digital Disruption – 2017 and Beyond (Infographic)” by Vikram Channagiri, May 26, 2017 https://www.opteamix.com/blog/the-reign-of-digital-disruption-2017-and-beyond-infographic/

• “Empowered Consumers Demand Digital Innovation in ‘Age of Customer’: Forrester” by Jennifer O’Brien, October 6, 2016. https://www.cmo.com.au/article/608080/empowered-consumers-demand-digital-innovation-age-customer-forrester/

• “How Digital Disruption Is Evolving PPM and PMO” by Joanne Kopcho (Gartner Webinar). https://www.gartner.com/webinar/3881665/player?commId=329929&channelId=15915&srcId=1-4730952011&webinarType=ondemand

• “Advancements in Project Portfolio Management of Technology Investments” by Hakan Altintepe, January 31, 2018. https://www.cio.com/article/3251852/project-management/advancements-in-project-portfolio-management-of-technology-investments.html

• “Making Sense of Digital Disruption” by Forbes Middle East, November 15, 2016. https://www.forbesmiddleeast.com/en/making-sense-of-digital-disruption/

• “Managing an Enterprise Portfolio in the Digital Age” by Jeff Pheley 2016 https://isg-one.com/docs/default-source/default-document-library/isg-white-paper---pheley---digital-portfolio-mgmt-for-cb-042018.pdf?sfvrsn=7072f231_0