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Jim Stikeleather spoke at the Gartner Symposium/ITexpo to discuss: When CEOs hear “Digital Transformation”, they focus on “transformation” and not “digital”. Businesses focus on capabilities to accelerate goals, value generation and outcomes. Where can new capabilities originate? How can the CIO discuss the digital opportunities as part of a business conversation? Discover the shifts required for the role of IT.
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Digital Transformation:What the CEO Thinks
Jim StikeleatherChief Innovation Officer for Dell
The CEO has one simple driver:
The purpose of the 20th century firm:
The purpose of the 21st century firm:
To minimize transaction costs and achieve scalable efficiency
To accelerate capability building and effectively apply that capability to innovation
Creating new value —better & faster
New view: Socially- enabled enterprise operating in a digital business ecosystemIT is essential to enabling firms to evolve and innovate with information driven value creation
Digital transformation is not about “better, faster, cheaper”*…
New ideas + forward-thinking + feasible + viable + valuable
New business, organization, operating, marketing and management models
Not invention
Products andservices
Business models
Processmodels
OperationsDevelopmentSales & Marketing
* Except group productivity – FOCIT 2013/2014
it is about innovation
From VUCA to VUCA5 macro trends that are transforming business
Enterprise 2.0Economics 2.0Management 2.0 Capitalism 2.0
$$
IT 2.0
$$ $
CapExOpEx
Engaging beats staffing New sources of funding, new definitions of value
Economic models show there is no new normal
Flexibility beats scale From CapEx to OpEx, transactions to collaboration
Future of the enterprise:
Future of the market:
Engineeredefficiency @ scale• Management control• Standardization• Specialization• Centralization• Expertise• Hierarchy• Alignment• Conformance• Predictability• Extrinsic rewards• Closed
Emergentefficacy @ moment• Engagement• Freedom• Diversity• Mash-ability• Disaggregation• Collective intelligence• Community• Experimentation• Opt-in• Serendipity• Intrinsic rewards• Open
Scale Adaptability
Efficiency Innovation
Discipline Engagement
Delivery Application
Transactional models Production separate from consumption
Systems of record
Social/Eco-modelsProduction co-resident with consumption
Systems of engagement
Impact on business/management/operational models & IT
Past Future• Absolute integrity• Data at rest• Structured data• Static
• Absolute insight• Data in motion• Unstructured data• Dynamic
Serve peers and customers – not the boss
Break up monolithic structures
Give everyone a place at the table
Radically expand the scope of employee autonomy
Provide open access to real-time information
Ditch formality
Create meritocracies where influence is based on contribution, not credentials
Drive performance through a shared sense of purpose and community
Prescriptive
Analytics
Descriptive
Analytics
Predictive
Analytics
Exploratory
Analytics
And coming – Systems of automation
Internet of Things Tagged items: RFID, NFC, wireless sensors, household appliances
Industrial Internet Integration of complex machinery with network sensors and software, includes: IoT, M2M and has machine learning, big data capabilities in real-time
Web of Things
Every day devices with embedded device or computer, connected by fully integrating to the web, utilizes web standards
Machine to Machine Networking: Wired and wireless technologies that link systems of the same type
Big data
Analog data
Machine learning
Real-time
And reality*Digital transformation is really about catching up to customers and staff
Deg
ree o
f ad
op
tion
Time
Technological developmentTechnological adoption by people
Technological adoption typical company
Technological adoption laggard company
Digital transformation
Digital business
transformation
* Alain Veuve – www.alainveuve.ch
Getting there – technology does not cause change, it only enables, facilitates and accelerates change that already wants to take place…
Current state
Now
Key business processes and business lever hierarchy
Detailed requirements and usage patterns
Organizational capabilities
Full “understanding” of existing economic environment with key metrics
Future state
2020?
Delivering on a Services platform
On demand co-creation of new value by collaborating consumers and suppliers
Transformation
Open innovation, who can add value to mine, how can I add value to theirs?
Sense making model (data proceeds framework) versus categorization model (framework proceeds data)
Forever
Digital business ecosystems
Rethinking
civilization for the
social age
Three necessary dimensions of success:
Visionary business leader
Attitude
Pragmatist
• Interactions & relationships
• Resources & allocations
• Outcomes & activities
• Questions & focus
Focus
Innovation and what creates value for your customers
What you do better than anyone else
What you are required to for legal or regulatory reasons
Received Wisdom?
Tradition?
Physics?
What to Start, Stop, Do Differently?
Technology & business models
Standardize
Simplify
Automate
Future-ready
What will you give up?
What will you do new?
What will you do differently?
What can others do for you?
Thank [email protected]
Twitter: @stikeyoda
www.InnovateBusinessIT.com
http://www.managementexchange.com/users/jim-stikeleather
http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185
