Digital Transformation - Beyond the Hype #DF13

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    08-May-2015

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While there is increased recognition of digitals role, the challenge remains for many to translate it into business value through innovation and competitive advantage. They are caught struggling for pace, and risk falling into the chasm between initiation and termination of transformation initiatives. Didier Bonnet's shares Capgemini Consulting's insight at Dreamforce '13 into the results of the landmark study with MIT on transformation trends, along with insight from an expert customer panel that will share experiences on how they address these challenges. This is the slide deck accompanying the session in San Francisco.

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  • 1.DIGITAL TRANSFORMATION BEYOND THE HYPE

2. What do these companies have in common?The Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved2 3. What is digital mastery? Digital CapabilityLeadership CapabilityTechnology-enabled initiatives in: Customer ExperienceLeadership capabilities including: VisionInternal OperationsGovernance Engagement IT-Business RelationshipsThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved3 4. Mastering both dimensions is the key to achieving the digital advantage Nike: From Separate Initiatives to Firm-Level Transformation 1 1DIGITAL CAPABILITY Digital Product Digital Product Design DesignSocial Media Social MediaCustomized Customized Manufacturing Manufacturing+ 2 2FIRM-LEVEL TRANSFORMATIONLEADERSHIP CAPABILITY Digital Division: Digital Division: Nike Digital Sport Nike Digital Sport Digital marketing Digital product innovation/design Digital commerce (e/m-commerce) Digital technologies (GPS, mobile, etc.) Customer analytics The Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved4 5. Four levels of digital mastery FASHIONISTAS Many advanced digital features (such as social, mobile) in silos No overarching vision Underdeveloped coordination Digital culture may exist in silosDIGITAL MASTERS Strong overarching digital vision Good governance Many digital initiatives generating business value in measurable ways Strong digital cultureBEGINNERSCONSERVATIVESManagement skeptical of the business value of advanced digital technologies May be carrying out some experiments Immature digital cultureOverarching digital vision exists, but may be underdeveloped Few advanced digital features, but traditional capabilities may be Strong governance across silos Taking active steps to build digital skills and cultureThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved5 6. Digital mastery varies widely FASHIONISTASBEGINNERSDIGITAL MASTERSCONSERVATIVESThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved6 7. Digital Masters have significantly better financial performance than their peers Revenue Generation EfficiencyProfitabilityMarket Valuation+6%+9%-11%+26%-12%+12%-4%-10%-24%+9%-7%+7%Basket of indicators: Revenue / Employee Fixed Asset TurnoverBasket of indicators: EBIT Margin Net Profit MarginBasket of indicators: Tobins Q Ratio Price / book ratioThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved7 8. Some industries average higher mastery than othersTelecoms Travel and hospitalityHigh TechnologyAverage industry digital mastery: RetailPharmaceuticalsBankingConsumer Packaged Goods Insurance UtilitiesManufacturingThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved8 9. but every industry already has digital masters Percentage of firms in each industry by quadrantThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved9 10. Digital Masters have a common Digital DNA They invest in 100% of the elements of Leadership Capability Transformative Vision Shared VisionDigitising P&G will enable us to manage the business in real time and on a demand-driven basis. Well be able to collaborate more effectively and efficiently, inside and outside the CompanyVision Chief Digital Officer CDOs & Digital UnitChief Digital Officer Shared Digital Units Investment CommitteesGovernance Promoting Change Employee Participation Investing in SkillsEngagementIT / Business Innovation challenges The IT Team (...) now work hand in hand with the Creative Media team.Digital Year Shared understanding between IT and business executives on role of IT The Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved10 11. Digital Masters have a common Digital DNA and they make strategic decisions on where to excel with digital capabilities Focus Investments on Where they Choose to Excel Digitally+ Combine Digital Capabilities to Exploit SynergiesCustomer ExperienceIn-store OnlineSocial mediaMobile channelUnified Processes / Integrated DataProcess ExcellenceSupply-chain IntegrationCustomer experienceCentralized OrderingNew business modelsUnified Processes / Integrated DataAnalytics capabilitiesPersonalized Customer experienceOnline On-premiseUnified Processes / Integrated Data The Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved11 12. How to drive digital transformationSustain the TransformationFrame the Digital ChallengeBuild Capabilities Align Incentives & Rewards Measure, Monitor & IterateUnderstand the Impact Assess Digital Maturity Develop Vision & Align Around It SustainEngageEngage the Organisation Signal the Change Mobilise at Scale Evolve Culture & Adapt Work PracticesFrameFocusFocus Investments Build a Digital Roadmap Build Investment Case Set up Governance ModelThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved12 13. In conclusion DIGITAL MASTERY MATTERS DIGITAL MASTERY MATTERS IT MATTERS IN EVERY INDUSTRY IT MATTERS IN EVERY INDUSTRY ANY COMPANY CAN BUILD DIGITAL DNA ANY COMPANY CAN BUILD DIGITAL DNA TAKE ACTION NOW TO TAKE ACTION NOW TOCREATE YOUR OWN DIGITAL CREATE YOUR OWN DIGITAL ADVANTAGE ADVANTAGE The Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved13 14. The New t al Digi rs te MasThe Digital Advantage - Dreamforce_M Copyright Capgemini 2013. All Rights Reserved14 15. About Capgemini With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore, its worldwide delivery model. Learn more about us at www.capgemini.comwww.capgemini.com The information contained in this presentation is proprietary. 2013 Capgemini. All rights reserved. Rightshore is a trademark belonging to Capgemini.