Build Your Digital Business Future Tim Sheedy, Principal Analyst

September, 2016

Digital businesses win, serve, and

retain customers by continuously

creating and exploiting digital assets to

simultaneously deliver new sources of

customer value and increase their

operational agility.

© 2016 Forrester Research, Inc. Reproduction Prohibited 4

Digital business is different

Bolt-on Digitally enhanced

products and services

Functional efficiency Cross-functional

agility

Safety and cost

reduction

Speed and

innovation

Digital

touchpoints

Operational

Excellence

Technology

attitude

Digital business Traditional business

Better products Enhance customer's

ecosystem of value Value proposition

Predator?

Or prey?

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The percentage of

companies pursuing

bolt-on as digital

strategy

The percentage of

companies learning

to create new value

through digital

27% 48%

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Customers value outcomes

Old New

Digital prey Digital predator

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The digital transformation journey

Progress so far

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Sales not influenced by digital

Sales influenced by digital

By 2020,

47% of execs expect

digital to influence

>50% of sales.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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By industry, B2B will see a dramatic shift

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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Big companies will see the most disruption

Large orgs must

learn to become

agile and

innovative.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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Just

26% of CEOs set

a clear vision for

digital to employees.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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25% understand potential

for digital to change

how the company

creates and delivers

value to customers.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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21% have the right

culture.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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21% have the right

people defining strategy.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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19% have the right

tech.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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16% have the right

people and skills to execute.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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14% have the right

processes.

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

You need a digital strategy…

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This is not the answer.

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Roadmap ≠ Strategy

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Components of strategy

Business strategy

Digital vision

DCX

strategy

DOX

strategy

Business case

Capability map

Organization

Culture

Technology

Measurement

Business strategy

Digital vision

DCX

strategy

DOX

strategy C

om

po

ne

nts

of

the

str

ate

gy

Bu

ild

ing

blo

ck

s o

f

ex

ec

uti

on

• Current and future state capability maps and benchmarks

• Future-state organization structures

• A stakeholder map

• An education plan

• An innovation strategy

• Architecture viewpoints linked to journey maps to highlight critical

technology transformation or risks

• A customer-centric KPI framework

• A data architecture to define required services and APIs

• Key corporate strategic objectives, such as new market entry, new

product development, existing market efficiency, etc.

• Video, powerpoint, highly engaging assets

• Journey maps

Business case • Proof points

Capability map • A graphical representation of the as-is and to-be capabilities required

to support the business.

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While companies face a wide range of widening skills gaps …

…Vision,

Strategy &

Culture Are #1 Source: “Organizing Your Digital Future” Forrester report

Find partners who can transfer skills

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Accelerate by changing employee metrics

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Marketing owns many digital activities . . . working alongside tech mgmt . . . and digital/eBiz teams

Digital business is a team sport . . .

Source: “The State Of Digital Business, 2015 To 2020” Forrester report

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Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester report

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Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester report

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Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester report

Digital business transformation is a journey,

not a destination.

forrester.com

Thank you

Tim Sheedy

Principal Analyst

tsheedy@forrester.com

@timbo2002