the future enterprise - a blueprint for digital success · idc global dx leaders survey....

The Future Enterprise - A Blueprint for Digital Success Daniel-Zoe Jimenez,

AVP, Asia/Pacific Head Digital Transformation, Future Enterprise & SMB

© IDC

1. http://www.information-age.com/holding-off-digital-transformation-prepare-fail-123467567 2. https://hbr.org/2018/03/why-so-many-high-profile-digital-transformations-fail 2

Why so Many DX Initiatives Fail?

INFORMATION AGE

…90% of digital projects fail to meet expectations and only deliver incremental improvements.¹

HARVARD BUSINESS REVIEW

Why So Many High-Profile Digital Transformations Fail³ by Thomas H. Davenport and George Westerman March 9, 2018

@DZ_Jimenez

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

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60% of DX initiatives will fail

Source: IDC Digital Transformation Research Practice, 2018 @DZ_Jimenez

Project Mngt. Integration

Collaboration

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Race Towards the “Future Enterprise”

Future of culture - Leadership at scale


Priority All AP BFSI MANU TELCO GOV

Improving productivity & profitability 1 1 1 3 4

Developing a culture of innovation 2 3 2 1 2

Delivering Omni-experiences 3 2 4 4 1

Creating new revenue streams 4 5 3 2 5

Holistic ecosystem views – data-driven 5 4 9 7 3

Top 3 Priorities in Next 18 Months to Achieve This Goal

Source: IDC DX Pulse Survey 2017-2018

1 1 1

1

1 2

3

@DZ_Jimenez

Transforming Experiences Leaders create market-altering interactive experiences through disruptive tech (e.g. BDA/AI)

Chow Sang Sang Delivering personalized experiences - AR

Dominos Pizza Delivering great CX - Social crowdsourcing/Gamification & me-tailing


Transforming Operating Models Leaders challenge traditional business & operating models through disruptive tech (e.g. BDA/AI)

Progressive Insurance Usage-based insurance – Customized insurance rate based on how much, and when the car is driven.

TeatreNeu Disrupting the arts scene with an innovative business & operating model


© IDC 8

PLAY VIDEO – “Pay per laugh”

Source: IDC DX MaturityScape 2018 (2017N=1,138; 2016N=643); IDC WW Digital Leaders’ Sentiment Survey 2017-2018 (N=168 in APJ) QB8; IDC Asia/Pacific C-suite Barometer Research 2017-2018 (N=1,001 CxO; 326 CIO/CTO; 675 CEO/LoB) A1, A11a

IDC DX MaturityScape Benchmark in Asia/Pacific

@DZ_Jimenez

2018

STRATEGY A Single Strategy

FINANCIALS Inherent Value

PLATFORM Integrated for Scale

ORGANIZATIONAL STRUCTURE AND CULTURE

The Digital Determination Blueprint

@DZ_Jimenez 10

IDC Global DX Leaders Survey. Asia/Pacific. May, 2018

Short Term DX DX initiatives are tied to enterprise strategy but with short-term focus

Impromptu DX DX initiatives are

tactical and disconnected from enterprise strategy

LOB DX DX initiatives are initiated at the

function or LOB level

7% 23% 32%

62% The Digitally Distraught

DX is the Strategy The enterprise

strategy is to use DX to transform

markets with new business models

and services

Integrated Strategy Integrated, continuous

enterprise wide DX innovation is

in place

9% 29%

38% The Digitally Determined

Unified Digital Strategies Are Uncommon

@DZ_Jimenez 11

32%

46%

20%

2%

None

Loosely Connected

Loosely connected but independent

project roadmaps across individual business units

Coordinated roadmaps led by

individual business units

A single digital roadmap for the enterprise,

centrally led with a clear mission and formal

accountability

Coordinated

Single

No Digital Roadmap

Source: IDC IT Executive Study on DX, March. 2018. n= 250

Develop a Single Roadmap Tied to Digital Strategy

@DZ_Jimenez 12

HORIZON 1 Use cases that are

deployed today.

HORIZON 2 Use cases that

are being incubated

HORIZON 3 Use cases that

imagine the possibilities.

Strategic Goals Use

Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Omnichannel Order

Orchestration and

Fulfilment

Real Time Inventory

Management

JIT Production

Intelligent Fulfillment

Break Digital Roadmaps into Horizons

IDC Global DX Leaders Survey. Asia/Pacific. May, 2018 @DZ_Jimenez 13






@DZ_Jimenez 14

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SG

D m

illi

on

s

Digitally Determined Bank

Financials over 10-year period ($M)

REV Profit before tax

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SG

D m

illi

on

s

Digitally Distraught Bank

Financials over 10-year period ($M)

REV Profit before tax

THE FINANCIAL RETURNS OF DIGITAL

Demonstrate that Digital = Inherent Value

IDC DX Practice research 2018 @DZ_Jimenez 15

16 Source: Creating shareholder value from digitalisation Chng Sok Hui Chief Financial Officer; 17 November 2017

The Digitally Determined Financials

@DZ_Jimenez

52% of organizations do not have digital KPIs

17 IDC Global DX Leaders Survey. Asia/Pacific. May, 2018 @DZ_Jimenez

Financial KPI

Operational KPI

40% of company capital budget allocated for DX initiatives by 2020

Companies spend 10% less per year on DX failures over 3 years

20% more profitable customers each year for 3 years

Increased customer interactions for 50% of non-profitable products within 1 year

Platform strategies drive data-related IT investments to exceed 25% of total IT by 2019

APIs reduce data acquisition and sharing costs by 50% over 3 years

Achieve 50% market share for target DX product or service by 2020

Increase the % of self healing processes by 10% per year for three years.

50% of executive compensation tied to digital MBOs

10% of repetitive enterprise interactions are augmented by AI each year for 3 years.

Success Metrics

Innovation Rate

Customer Advocacy

Data Capitalization

Business Operations

Work and Labor Supply

Business KPI

40% of DX Innovation Initiatives approved for implementation by 2020

Improve customer NPS score to positive 50/100 by 2019

Platform-related revenue accounts for 10% increase in total revenue each year over 5 years.

Introduce 1 new DX product or service each year for the next 3 years

Percentage of on-demand, knowledge worker labor hour increases by 10%/year over 3 years.

The New Digital KPIs

IDC DX Practice Research 2017 @DZ_Jimenez 18






@DZ_Jimenez 19

3D Product Design Fraud

Monitoring Self

Healing Assets

Real Time Inventory

Mgmt.

Smart Warehouse

Track and

Trace

Data as a Service

Chat bots

VR Product Interaction

Mobile App

P2P Payment

Enterprise IT

Stage 1 - Islands of Innovation


Digital IT Enterprise IT Platform

Integration Services

Data Services

Stage 2 - The ‘Side-Car Approach’ – Digital IT


We have two separate technology environments (one for the core IT

platform and another for the digital innovation)

The Sidecar

We have a fully integrated

enterprise-wide technology architecture

The DX Platform

We have an external facing digital platform

The Standalone Platform

Digital Platform evolution

22 IDC Global DX Leaders Survey. Asia/Pacific. May, 2018

We employ multiple digital technologies that run separately

to our core IT platform

Islands of innovation

28% 23% 11% 23%

Design an Integrated Tech Platform for Scale

@DZ_Jimenez

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Developer services

Engagement services

Integration and orchestration services

Intelligent core (data services)

Stage 3 – The DX Platform


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Top DX Technology Investment Areas in 2019

Source: IDC WW DX Executive Sentiment Survey, 2018 (APeJ N=1,011; 776 CIO/CTO/CISO and 235 CEO/LoB); Q21 @DZ_Jimenez

Agile application architectures on PaaS using microservices and containers

1 Cloud-based API strategies that orchestrate exchange of data across your ecosystem

3

An intelligent core based on data management, cognitive, artificial intelligence, and machine learning

2

New customer experience technologies that fully support customer and ecosystem-facing business models

4

By 2021, driven by LoB needs, 60% of CIOs will deliver "agile connectivity" via APIs and architectures that interconnect digital solutions from cloud vendors, system developers, startups, and others.

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2020 2018 2027

Full Digital Transformation

2022

Innovation Realization

Getting Digital Done

The Digital Impasse

66% of 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

Once Through the Challenges, You are Cleared to Digitally Transform


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[email protected]

twitter.com/DZ_Jimenez

the future enterprise - a blueprint for digital success · idc global dx leaders survey....

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