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Transforming service
deliveryErin Hedger & Alison McCormack
May 2015
Why must we
transform?
Why transform?
Why transform?
Charitable services
Charitable services
Charitable Services
-base
Digitally-transformed businesses
outperform their peers in every
industry“Firms that are more mature on either dimension outperform their
competitors in specific and different ways. The Digirati – the 25%
of firms that are more mature in both dimensions – far outperform
the others. On average, Digirati are 26% more profitable than
their industry competitors.”
MIT Sloan/Capgemini – The Digital Advantage
Profitability
Why transform?
-base
“The average lifespan of an S&P 500 company has decreased by more than 50 years in the
last century, from 67 years in the 1920s to just 15 years today.
Professor Richard Foster, Yale University
Q: What is Digital
What is digital transformation?
Definitions of digital transformation
Evidence-
based
“Business success today requires a customer-focused digital transformation. It starts
with prioritising a superior and relevant customer experience, and aligning the
organisation, processes and technology to power it.”
Accenture, Digital Transformation
“The realignment of, or new investment in, technology and business models to more
effectively engage digital customers at every touchpoint in the customer experience
lifecycle.”
Altimeter – 2014 State Of Digital Transformation
“Digital transformation is uniquely challenging, touching every function and business
unit while also demanding the rapid development of new skills and investments that are
very different from business as usual.”
Mckinsey.com – 7 traits of effective digital enterprises
“Innovation is a game changer. There’s a new sense of urgency. We are in the middle of a
digital transformation and businesses need to face it – or get disrupted.”
ZDNet, July 2014
Start and end states
Evidence-
based
Image source: The End of Competitive Advantage – Rita Gunther McGrath
Digital Darwinism
-base
Digital transformation is disruptive whatever the industry. Even Apple, for all its digital
savvy, is not safe. Its very own iPod was disrupted by the iPhone… after the iPod had
rendered most music players obsolete. But disruptions never stop, with new
challengers like Spotify vying for a bigger piece of the music industry pie. Apple’s
solution? Transform again and acquire Beats Electronics to leapfrog the digital
disruption of its iTunes business model.
ZDNet – Digital Transformation, July 2014
Lego, not Airfix
-base
The Depression Alliance Story
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The Depression Alliance Story
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Making it real… Depression Alliance Story
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Making it real… Depression Alliance Story
-base
“Sometimes people only need some organisation and
encouragement to enable them to help themselves. It is
great having this site as people can always check if we are
still about and know they will always be welcome”
“Coffee was really nice, I met up with someone from FiN
(first time I've done that) and it was lovely talking in person
about all that sucks about depression and the NHS, and all
the things non-depressed people don't get!”
Making it real… Action for Children
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Making it real… Action for Children
-base
Making it real… Action for Children
-base
Making it real… Drinkaware
-base
Making it real… Drinkaware
-base
How can you deliver digital
service transformation?
-base
How can you deliver digital transformation?
-base
Manifesto for Agile Software
Development
Individuals and interactions over
processes and tools
Working software over
comprehensive documentation
Customer collaboration over
contract negotiation
Responding to change over
following a plan
That is, while there is value in the
items on the right, we value the
items on the left more.
Barriers to digital transformation
-base
Altimeter – 2014 State Of Digital Transformation
How can you deliver digital transformation?
-base
Six Best Practices For Digital Transformation
Develop an incremental digital journey: world class digital companies deliver integrated digital and business
strategies, digital by evolution companies, must start with a cross-functional digital and build from here.
Define the rules for digital: world class digital companies do not have separate digital teams. Digital is embedded
within all teams. Digital by evolution companies, should first build a digital centre of excellence to establish a cross-
functional support model to nurture and grow digital expertise.
Increase agility to overcome structural inertia: world class digital companies embed innovation and agile digital
delivery through physical and collaborative integration between teams, digital by evolution companies should consider
co-locating key business and IT resources to encourage collaboration and rewarding innovation.
Dare to fail: world class digital companies have leaders who encourage ideas and accept that risk is part of the route
to success. Digital by evolution companies must move towards an acceptance of continuous live beta testing and
accept risk as a part of the iterative route to success.
Measure what you prioritise, prioritise what you measure: world class digital companies have frequent, dynamic
project and delivery cycles. They measure customer satisfaction and prioritise projects based on customer experience.
Digital by evolution companies must increase frequency of planning and begin to incorporate customer value in the
project prioritisation process.
Build your business based on digital data insight: world class digital companies have a single view of the
customer relationship. Digital by evolution companies must build a single customer database, and a holistic data
management approach to capture, analyse, and leverage customer data across all touchpoints.
Becoming a World Class Digital Organisation – Bearing Point, 2014
Conclusion
-base
“Becoming a digital master isn’t an overnight process. Digital transformation requires a
long-term commitment and, above all, a focus on strong leadership. Companies that
profit from digital see it as a leadership challenge, not a technology one. They
understand the opportunities that digital can provide, and strive to make them real. And
they find that each new action creates new possibilities to digitally transform their
companies and industries.
TechCrunch – Leading Digital Transformation, Nov 2014
“Digital Masters spend time understanding customer behavior and designing the
customer experience from the outside in. A Digital Master figures out what customers
do and why, where, and how they do it. The company then works out where and how
the experience can be digitally enhanced across channels.”
George Westerman, Leading Digital: Turning Technology into Business
Transformation
@wearemc2 | @erinhedgital
07813 184578 | 078 0074 1872
Thank-you. Q?
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Digital
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