So You Think You Need A Digital Strategy

So You Think You Need A Digital Strategy

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney



I Want A Digital Strategy

… And It Must Include The Internet of Things …

… And Big Data

…

… And It Must Be Agile …

What About Cloud?

Bingo

… And Innovative…

January 21, 2016 2

Be Careful Of The Bumpy Ride On The Hypecycle

• Just because consultants and vendors are all talking about digital does not mean you should rush recklessly into it

January 21, 2016 3

Some Meaningless Slide About Classical Greek Military Terms

• Originally strategy meant generalship

• Tactics meant the organisation of military forces

• Strategoi (generals) could be punished, exiled or even executed for failure to use initiative, even if they succeeded in battle, by soldiers or the assembly

• How many digital strategists face a similar fate?

• How many Chief Marketing Officers and consultants are made drink hemlock if their digital strategy fails?

January 21, 2016 4

General Aspects Of A Strategy

Definition/ Diagnosis

Governing Policies and Principles

Action Plans

January 21, 2016 5

Define the circumstances of the issue that give rise to the need for a strategy

Detail the core objectives of the strategy to address the circumstances

Expand into a series of co-ordinated and integration actions to achieve the core objectives

What Success Looks Like And How You Intend To Achieve It

Digital Strategy

• Digital strategy is a statement about the organisation’s digital positioning, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion

January 21, 2016 6

Not All About Digital

• Business priorities − Keep the business running − Improve customer service − Reduce costs − Increase productivity and efficiency − Increase revenue − Develop new and enhance existing products and services − Find new business opportunities

• An effective and balanced approach to digital can assist with delivering on business priorities

• Remember that technology generally accelerates existing business momentum rather than being the originator of momentum

• Digital is not a panacea

January 21, 2016 7

Digital Has Become a Catch-All Term For …

January 21, 2016 8

Enhanced and extended web

presence, digital brand awareness and

development

Customer portal, greater customer intimacy, greater geographic reach

Multi-media and enterprise

content management

Greater web-based

transactional functionality Enabling

operational efficiencies and cost reductions

Greater enablement of

non-PC web access such as

mobile technologies

Multi-channel information

access

Customer self service, greater automation of

web interactions

Collection and analysis of web interaction data

Greater use of and integration

with social media

platforms Direct sales, ecommerce,

ebusiness

Mobile selling,

B2B, B2C, M2M

Unrealistic Digital Expectations Have Become A Bit Of An Elephant In The Room

January 21, 2016 9

First Things First

• Know what you mean by digital and have a common understanding to avoid confusion

• Enables business expectations to be understood and managed

January 21, 2016 10

Digital In Business and IT Context

• Any digital initiatives sit within an overall business and IT context and their multiple balancing acts between:

January 21, 2016 11

Control Freedom Reduce Cost Deliver More

Security Openness

Delivery Strategy

Efficiency Responsiveness

Standardisation Customisation

Focus On Overall Organisation Focus On Individual Business Units

Predictability Agility

Business and IT Balancing Act

January 21, 2016 12

Organisation Business Landscape

January 21, 2016 13

Organisation

Business Customer

Contractor

Outsourcer

Regulator Partner

Dealer

Agent

Franchisee Representative Sub-Contractor

Intermediary

Client

Distributor

Researcher

Shareholder

Collaborator

Counterparty

Retail Customer

Service Provider Competitor

Supplier

Public


• Organisations typically operate in a complex environment with multiple interactions with different communication with many parties of many different type over different channels − External Actors - xActors

• Digital is concerned with new ways of interacting with some or all of these xActors

• Digital is not just about customer interactions, though this may be its main focus

January 21, 2016 14


Business Customer

Retail Customer

Shareholder

Shareholder

Partner Dealer

Outsourcer

Competitor

Supplier

Regulator

Contractor

Service Provider

Distributor

Intermediary Collaborator

Sub-Contractor

Franchisee

Counterparty

Intermediary Representative Agent Researcher

Client

Public

January 21, 2016 15


• Not xActors the organisation interacts with have equal importance or of equal value

• Each xActor and communications channel has different characteristics: − “Distance” from the core of the organisation – composite

measure of value and importance to the organisation −Volume of interactions − Complexity of interactions − Type of interaction – informational or transactional

• Every organisation will have a different xActor and distance profile

• Follow the value

January 21, 2016 16

xActor Data Models

• Build logical data model for each external party to link possible requirements to required capabilities and associated processes

• Will be different for each organisation

• Enable identification of current and future interactions, the impact and data requirements

• Enable effective decisions on costs and benefits of digital

January 21, 2016 17

xActor Data Models – Sample For Energy Utility Post-Pay Customer

January 21, 2016 18

Depth And Breadth Of Implementation And Operation Of Digital Strategy

Customer

Service Provider

Partner

Regulator

Agent

…

January 21, 2016 19

Number Of Processes Automated

Co

llab

ora

tio

ns

Imp

lem

en

ted

Digital Strategy And Business Processes

• A key aspect of implementing a digital strategy is the extension of internal processes to specific parties over specific channels outside the organisations

• This extension will be phased based on standard delivery criteria: − Cost

− Resource

−Amount of change the organisation can absorb

January 21, 2016 20

Extended Dimensions Of Digital Strategy

January 21, 2016 21

External Parties Participating in

Digital Interaction/

Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in

Digital Strategy

Channels Included in

Digital Strategy

Dimensions Of Digital Strategy

• External Parties Participating in Digital Interaction/ Collaboration – who of the many parties in your organisation landscape do you interact with digitally

• Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy – which types of interactions and associated business processes do you digitally implement

• Channels Included in Digital Strategy – what digital channels do you interact over

January 21, 2016 22

Dimensions Of Digital Strategy

• You cannot realistically achieve work across all dimensions

• The change, cost, risk, resources and time required to implement digital across combinations is too great

A - External Parties Participating in Digital Interaction/ Collaboration

B - Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy

C - Channels Included in Digital Strategy

A x B x C

• Is just too large a number

• You need to prioritise implementation based on factors such as value

• You need to be realistic about what can be achieved

• You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work

January 21, 2016 23

Dimensions Of Implementation Of Digital Strategy

January 21, 2016 24

Phase 1

Phase 2

Phase 3 External Parties Participating in

Digital Interaction/

Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in

Digital Strategy

Channels Included in

Digital Strategy

Digital Initiative xActor Delivery Radar

• Mapping the planned and phased depth and breadth of digital interactions with xActors relevant to the organisation

January 21, 2016 25

Organisation Operational Silos

January 21, 2016 26

Operational Silos

• There are too many operational units that operate independently with walls effectively between them

• There is too much lobbing of work over the walls between operational units with no cross-functional/cross-capability, end-to-end view and no seamless operation

• When you extend business processes outside the organisation, you need to ensure cross-functional/cross-capability operation

• External parties are not concerned with process limitations caused by a siloed organisation not operating efficiently

• Lack of seamless operation of business processes not evident (to a lesser or greater extent) to the outside world

January 21, 2016 27


January 21, 2016 28

Business Processes Within The Organisation

Digital Means Extending and

Exposing Business Processes Outside the Organisation – The Organisation Is being Opened-Up

Extending The Organisation’s Boundaries

January 21, 2016 29

Business Processes Within The Organisation

How Far to Push the Boundary and How Porous

Should the Boundary

Be?

Digital Creates User Expectations

• Understand, manage, control and deliver on the expectations

January 21, 2016 30

• Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties

Digital User Expectations

January 21, 2016 31

First time problem resolution or response to

request Support is available

whenever it is needed

All information is accurate and available online all the

time

Products and services can be ordered and their

delivery tracked

Access is available from anywhere at any time

Proactive notifications

Range of channels and functions affects decision to

do business Demand multi-channel

experience

Simple, consistent, easy to use

Provide advice and assistance

Loyalty and rewards

Immediate access and response

Be Careful These User Expectations Do Not Explode In Your Face

January 21, 2016 32

First time problem resolution or response to

request Support is available

whenever it is needed

All information is accurate and available online all the

time

Products and services can be ordered and their

delivery tracked

Access is available from anywhere at any time

Proactive notifications

Range of channels and functions affects decision to

do business Demand multi-channel

experience

Simple, consistent, easy to use

Provide advice and assistance

Loyalty and rewards

Immediate access and response

Expectations Of Digital

• Don’t let your digital strategy be crushed by the weight of internal and external expectations

January 21, 2016 33

User Expectations

Business Expectations

Digital Strategy is All About Connectivity And Integration

January 21, 2016 34

Connectivity Between

External Parties and the

Organisation Connectivity

Between Business Functions

Connectivity Between Applications and Data

Digital Enablement Technology Iceberg

January 21, 2016 35

In Order to Extend and Expose Capabilities and Business

Processes Outside the Organisation …

… You Will Need a Substantial Amount of Enabling Technology, Systems,

Resources and Supporting Processes and Organisation Change

Successful Digital Operations Require

Investment and Commitment


• Extending and exposing existing possibly siloed and functionally not integrated business processes outside the organisation may uncover problems with their operation

• Digital interactions with third parties gives rise to expectations of: − Velocity − Responsiveness − Accuracy − Completeness

• Digital will make weaknesses in business processes and underlying technology very evident very quickly

• Failure to deliver expectations will affect the success of the digital strategy

January 21, 2016 36

Operational Silos – Breaking Through The Walls To Enable Cross-Functional/Cross-Capability Working

January 21, 2016 37


• You need to break through the organisation barriers preventing cross-functional/cross-capability business process operation as a pre-requisite for successful and efficient digital implementation and operation

January 21, 2016 38

General Aspects Of A Digital Strategy

Definition/ Diagnosis

Governing Policies and Principles

Action Plans

January 21, 2016 39

Define the circumstances of the issue that give rise to the need for a

strategy

Detail the core objectives of the

strategy to address the circumstances

Expand into a series of co-ordinated and integration actions to achieve the core

objectives

Why are we doing it? What gives rise to the need for a digital strategy?

What problems are we trying to solve? What challenges are we trying to address?

What constraints are we looking to remove?

What are our objectives? Who are we looking to connect with digitally and how?

What is our long-term digital strategy? How will be communicate our strategy?

What type of connections are we looking to implement? How will we measure the achievement of the objectives?

How will the implementation be phased?

What is the schedule for implementation – which parties, what types of interaction over what channels? What are the technology, system, resource and

organisation pre-requisites to achieving success? What are the risks and dependencies?

How can this work be formulated into a realistic and achievable plan?

What Success Looks Like And How You Intend To Achieve It

Fallacies Of Distributed Computing Digital

January 21, 2016 40

• Fallacies of distributed computing are assumptions made by developers of distributed applications identified by Peter Deutsch at Sun Microsystems

• Assumptions are false and the consequences of making them include some or all of system failure, increased costs, project delays, reduction in scope or substantial redesign and rework

• Fallacies apply equally to digital initiatives

• Don’t relearn forgotten lessons the hard way

Fallacy In the Digital World 1.The network is reliable The external network is outside your control. It is inherently unreliable. It has uncertain

performance

2.Latency is zero Latency is pervasive

3.Bandwidth is infinite Assumptions about bandwidth lead to network-intensive applications that lead to poor and erratic performance

4.The network is secure No it is not. Lack of concern about widespread security threats will leads to weaknesses

5.Topology doesn't change It changes all the time and no one tells you

6.There is one administrator

There are many administrators and they are not all under your control. In some cases no one is in control

7.Transport cost is zero Network bandwidth can have significant costs

8.The network is homogeneous

The digital network is mixed, much of it is outside your control and there are many pinch points

Objectives Of Digital Strategy

January 21, 2016 41

Digital Strategy

Objectives

Relationships And Information

Commerce And Transactions

Content and Management

Marketing and Communications

Efficiency

Brand

Innovation

Profit

Achieved By

Technology

Processes

People

Objectives Of Digital Strategy

• The objectives of a digital strategy are: − Relationships And Information – manage and maintain relationships with existing

external parties, provide external parties access to information on accounts and transactions including analysis and reporting, provide personalised experience, have a consistent message across all channels

− Commerce And Transactions – enable external parties transact online – pay bills, order and buy products and services in new ways

− Content and Management – provide external parties with current, relevant, quality, meaningful content with easy access to maintain external party conversation

− Marketing and Communications – provide external parties with personalised and customised information and offers on new products and services based on an intelligent analysis of their likelihood to avail of the offer

− Efficiency – make existing business processes more efficient, remove siloed operation, implement cross-functional/cross-capability processes that mirror external party interactions and transactions

− Brand – articulate the organisation brand more effectively − Innovation – make products and services better, develop new products and

services − Profit – make more money and/or reduce cost

• These objectives and outcomes of a digital strategy are actualised by technology, processes and people

January 21, 2016 42

Digital Strategy – Some Questions

• What parts of the business make the most margin?

• What parts of the business give rise to the greatest costs?

• What return are existing digital investments currently providing?

• How can digital investment increase revenue, increase margin and/or decrease costs?

• What reducible friction do our collaborators hate?

• What is possible to realistically envision and achieve in 1-2 years?

January 21, 2016 43

Digital Strategy Must Fit With Organisation Brand Strategy And Not The Other Way Around

January 21, 2016 44

Core Brand Strategy

Digital Brand Strategy

Digital Channels and Media

Technology, Processes, People

Elements Of Brand

• Targeted – being appropriate to the market and product set

• Clear – delivering an instantly comprehensible message

• Desirable – something customers want to have or to be part of

• Unique – differentiated standing out in the crowd

• Meaningful – matching customers’ expectations

• Consistent – across all aspects of the company

• Recognisable – clear, easily identified, repeatable

• Actionable – can be leveraged and supported

• Extensible – supports new products and partners

• Digital must support and enhance this

January 21, 2016 45

Beware Of Digital For Its Own Sake

• A potential false promise of a digital strategy is that content will magically turn into revenue without effort

• The reality is that views does not equal customers

• The digital strategy has to produce revenue from all the content and functionality

• Need to concentrate resources on the greatest opportunities to increase revenue and margin and achieve a sustainable competitive advantage

January 21, 2016 46

Beware Of The Illusion of Outcomes

• Outcomes cannot be managed, only influenced

• Outcomes include: − Sales

− Sales conversion rate

− Revenue

− Profit

− Cashflow

• Outcomes can only be influenced through activities: − Improved customer satisfaction

− More sales activity

− Greater value for money

• Focussing on digital-enabled cross-functional processes is a key way to influence outcomes and deliver value

• But digital might generate a lot of activities that do not generate outcomes

January 21, 2016 47

January 21, 2016 48

Illusion Of Attempting To Manage Outcomes

Sell More Products/

Services and More

Profitably

Generate More Profit

Identify the Right Customers

Fulfil Orders Correctly and Satisfactorily

Manage Customer Relationships

Be Easy to Do Business With

Be an Organisation Customers Want to Do Business With

Generate and Maintain High Customer Satisfaction

Develop and Sell the Right Product at the Right Price

Digital Activities Outcomes

You cannot force customers to buy

more products and services …

… But you can make it easier for

customers to do so with an

appropriate digital strategy

Key Digital Design And Operating Principles

• Flexible and adaptable for addition of new features quickly

• Short development cycle for new features

• Ease of static content generation and maintenance with federated and devolved approach - COPE (Create Once and Publish Everywhere)

• Focus on content and value-added information and function for positive customer experience – content and usefulness drives usage

• All information available online

• All transactions available online

• Flexible and adaptable for addition of new features quickly

• Short development cycle for new features

• Measure everything

• Integrated messaging across all channels

• Recognise the offline customers

• Digital is not a project – it is an ongoing organisation-wide activity

• Digital is not easy – it is hard

January 21, 2016 49

Security And Privacy

• Implementation of digital strategy needs to have external party security and privacy as a fundamental design and operating principle

• Privacy and security represent a trade-off

• More security means greater cost and greater inconvenience for external parties − Need to balance costs and

inconvenience

• Different views on the: − Perceived risk of a security breach − Relative weight/importance of

privacy

• Steps to implement external party privacy and security − Analyse security risks − Analyse security requirements and

trade-offs − Develop a security plan − Define a security policy − Develop procedures for applying

security policies − Implement the technical strategy

and security procedures − Test the security and update it if

any problems are found − Maintain security

January 21, 2016 50

Scope of Digital Strategy

January 21, 2016 51

Digital Vision,

Strategy and

Culture

User Experience

Content and Process

Technology Platforms

Data, Services

and Operational

Systems

Digital Overlap With Customer Experience Strategy

January 21, 2016 52

Digital Strategy

Digital Customer Strategy

Customer Experience

Strategy

Digital Technical Strategy

Digital Operations

Strategy Business Strategy

Tools And

Systems

Processes

People

Customer Experience

• Digital is largely about third-party/customer experience

• Third-party/ customer experience needs to be at the heart of digital programme

• Management cite limitations from inflexible technology, siloed organisations, and insufficient investments as the biggest obstacles to delivering the best possible customer experience

January 21, 2016 53

Stated Obstacle % Identified Limitations of inflexible technology and application infrastructure 29%

Difficulty regularly tracking performance measures and customer feedback 24%

Don't have a consolidated, accurate, 360-degree customer view across all touch points 23%

Siloed systems that prevent us from easily sharing information or supporting continuous processes across touch points

18%

Siloed organisations/ conflicting key performance indicators (KPIs)/incentives between different channels/ business units

27%

Lack of money allocated to customer experience initiatives 27%

Customer Experience Survey Results

• Oracle surveyed more than 1,300 senior executives across 18 countries in North America, Latin America, Europe, and Asia Pacific to assess: − The financial impact of the customer experience − The challenges businesses face delivering great customer

experiences − The types of programs and initiatives that have been most

effective in delivering results −Where businesses are investing to improve the customer

experience

• An independent market research firm – worked on behalf of Oracle to conduct online interviews with 1,342 global senior executives from a wide variety of industries in August and September of 2012

January 21, 2016 54

Europe Customer Portal Survey Key Findings

January 21, 2016 55

Average potential annual revenue lost as a result of not offering a positive, consistent,

and brand-relevant customer experience

Formalised Customer Experience Program:

Are still assessing or planning with no active implementations

Have one or more active implementations

36%

42%

Biggest Obstacles:

Lack of money (31%) #1

Siloed organisations (25%) #2

#3

15% In the next two years, European companies will

invest in:

28% Integrated customer view across all channels

27% Business and customer analytics solutions

26% Loyalty management system

Most Successful Customer Experience Projects:

31% Implementing a technology to improve customer service

28% Building a training program/incentives for employees

27% Implementing an SLA with any customer contact

Average planned increase on customer experience technology spending in the next two years

Difficulty tracking performance/customer feedback (24%)

Consider their CX initiative advanced 20%

18%

18%

The Perception Chasm - Businesses and Customers Are Worlds Apart

January 21, 2016 56

49% 89% But …

44% 86% While…

of executives believe customers will switch brands

due to poor customer

experience

of customers say they have switched

because of poor customer experience

of executives believe customers are willing to pay

for great customer experience

of customers say they are already

doing so

Business executives underestimate the importance of the customer experience on customer behavior

Executives Underestimate The Risk and Opportunity

Digital Operational Technology Layers

January 21, 2016 57

Customer Access and Interaction

Content Aggregation and Management

Extensions to Existing Systems/Data Integration

Operational Systems

Analytic Systems

Operational/Technology Component Layers

January 21, 2016 58

Layer Function

Customer Access and Interaction Presents information and functionality to external parties of agreed types across agreed channels and access mechanisms


Provisions and manages static and dynamic information to external parties Implements COPE (Create Once and Publish Everywhere)

Extensions to Existing Systems/Service and Data Integration

Provides direct access to core data and functions of operational systems

Operational Systems Existing (and possibly new) business systems

Analytic Systems Provides data analytics and campaign management facilities

Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy

January 21, 2016 59

External Party-Facing Web Accessible

Applications Social Media Platforms

Process, Service and Data Integration

Core System Interfaces

Core Transaction Processing System(s)

Other Operational System(s)

Content Management System

Master Data Management

Campaign Management

xRM

Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy

• Initial architecture of the overall technology solution to implement the digital strategy − Provides a basis for solution design − Know what needs to be done −Makes the strategy implementable − Breaks it down into achievable chunks of work – “eat the

elephant” (in the room)

• Architecture needs to be validated, enhanced and modified if necessary by detailed design phase

• Business case is for analysis and design exercise to produce detailed solution architecture and implementation plan − Review available commercial products and tools available −Validate costs and benefits

January 21, 2016 60

Operational/Technology Layers And Their Components

January 21, 2016 61

Customer Access and Interaction


Extensions to Existing Systems/Data Integration

Operational Systems

Analytic Systems

External Party-Facing Web Accessible

Applications Social Media Platforms

Process, Service and Data Integration

Core System Interfaces

Core Transaction Processing System(s)

Other Operational System(s)

Content Management System

Master Data Management

Campaign Management

xRM

Measuring The Return Of A Move To Digital

Benefits Available

Increased Revenue

Improved Sales

Pricing Improvements

Better Segmentation

Faster and Cheaper Acquisition

Increased Spend

Product Groups/ Bundles

Increased Return on Marketing Spend

Campaign Granularity

Increased Campaign Response Rate

Improved Service Improved Client Satisfaction

Client Loyalty/ Brand Affinity

Client Tenure/ Retention

Client Referrals

Improved Operating Efficiency

Reduced Operating Costs

Call Optimisation

Service Levels

Capacity

Reduce Marketing Costs Campaign Cost

Product Catalog Size

January 21, 2016 62


• Agree and implement a measurement framework and associated data collection and gauge success of digital initiatives

January 21, 2016 63

Creating A Digital Implementation Statement Of Direction

• Creating a well-defined statement of direction for a digital investment involves: −Defining vision and guiding values for digital exploitation

−Define a business strategy that incorporates the use of digital to achieve business results

−Defining a digital functionality roadmap/high-level schedule

−Describing a digital reference architecture

−Assessing organisation readiness for digital

− Identifying the skills gaps that need to be filled

−Managing internal and external expectations

− Producing a business case that draws this information together with identified and quantified benefits

January 21, 2016 64

Iterate Through Digital Initiatives

• Iterate through digital initiatives, starting small and focussed, learning from experience

January 21, 2016 65

Digital Functionality Delivery Roadmap

• Defines, prioritises and creates an integrated schedule for the delivery of digital functions and related required enabling technologies for a agreed time frame −Need to agree the prioritisation process

− Roadmap is always subject to constraints such as budget, resources

−Dependencies can be identified and tracked

− Capability roadmap can be grouped by business area or process group, external party or channel

January 21, 2016 66

Digital Functionality Delivery Roadmap

Year 1 Q1

Year 1 Q2

Year 1 Q3

Year 1 Q4

Year 2 Q1

Year 2 Q2

Year 3 Q3

Year 3 Q4

Business Domain

External Party

Channel

Channel

Channel

External Party

Channel

Channel

Channel

Business Domain

External Party

Channel

Channel

Channel

External Party

Channel

Channel

Channel

Technology Dependencies

Technology Initiative 1



January 21, 2016 67

Digital Reference Architecture

• Digital Reference Architecture defines a template solution for the underlying and enabling technology solutions and components required

• Reference Architecture defines the target end-state architecture and the set of interim transitional phases required to enable the delivery of the Digital Functionality Delivery Roadmap

• Digital Reference Architecture exists within the context of the organisation’s Enterprise Architecture and other subsidiary architectures

January 21, 2016 68

Digital Reference Architecture In Context

• Enterprise Architecture needs to be involved in the development of digital architecture

• Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture January 21, 2016 69

Enterprise Architecture

Information and Data Architecture

Information Systems

Architecture

Solutions and

Application Architecture

Business Architecture

Technology Architecture

Digital Architecture

Service and Integration

Architecture

Security Architecture


January 21, 2016 70

External Party Interaction Zones, Channels and Facilities

Security, Identity ,

Access and Profile

Management

Responsive Infrastructure

Digital Specific Applications and Tools

Internal Interaction Management

Integration

Operational and Business Systems

Applications Delivery and Management Tools and

Frameworks

System Development, Deployment and

Management


• External Party Interaction Zones, Channels and Facilities – the set of facilities and applications that are presented to those external parties being interacted with and the channels used

• Security, Identity , Access and Profile Management – internal and external security tools and processes

• Responsive Infrastructure – digital application deployment and operating infrastructure

• Digital Specific Applications and Tools – the portfolio of specific tools acquired to deliver and operate digital functions

• Internal Interaction Management – the set of internal applications that are used to manage external party interactions

• Integration – the data, service and process integration layer and associated APIs

• Applications Delivery and Management Tools and Frameworks – set of tools used to deliver and manage digital applications

• System Development, Deployment and Management – the digital application development facility within the organisation

• Operational and Business Systems – the existing organisation operational and business systems

January 21, 2016 71


• The objectives of a digital (or any reference) architecture are: − Consistent, personalised and rich user experience across all channels

− Reliable and resilience operation

− Ease of management and administration

− Integration of data and services from multiple sources

− Ease of development and deployment of new services

− Collection of usage information for analysis

• This means: − Federated operation with support of multiple services

− Ability to unify services for delivery

− Standard and powerful approach to integration

− Management and administration tools

January 21, 2016 72

Digital Reference Architecture – Service Catalog

• Services here mean functions/offers accessed by external parties

• Consider a facility to author and manage functions/offers and enable access by defined set of external parties

• Link services to xActor data models defined earlier

January 21, 2016 73

Digital Reference Architecture In Context

• An enterprise digital strategy exists in a wider organisation and IT context − The organisation will have an overall IT strategy to accomplish the

organisation strategy and associated objectives − The IT function will then need its own internal IT strategy that will

structure the function in order to ensure that it can deliver on the wider organisation strategy

− The enterprise digital strategy is connected to the overall IT strategy, the enterprise architecture and the internal IT strategy

− The enterprise digital strategy will be implemented and operated through an digital architecture that is part of the overall enterprise architecture

− This context is important in ensuring that the enterprise digital strategy fits into the overall IT and wider organisational structure

− The enterprise digital strategy exists to ultimately deliver a business benefit and contribute to the achievement of the business strategy

− The strategy must be translated into an operational framework to enable the strategy to be actualised

January 21, 2016 74

Business Objectives

Business Operational

Model


Solution Implementation

and Delivery

Management And

Operations

Business Processes

Required Operational

Business Systems

Business Strategy

Systems Design/

Selection

Business IT Strategy

IT Function Strategy

Digital Strategy

Required Operational Processes

Required Support

Business Systems

Systems Design/

Selection

Digital IT Architecture

Digital Strategy In Business And IT Context

January 21, 2016 75

Organisation Readiness For Digital

• Like all major organisation transformation programmes implementing digital initiatives will change the organisation − Cross-functional and business process changes − Technology delivery changes

• The organisation must be ready for digital in three ways: − Be able to deliver digital initiatives that comprise the strategy − Be able to change itself to enable the implementation and

operation of digital initiatives − Be able to operate digital initiatives

• Need to assess the current state of the organisation, its readiness for digital and what is needed to achieve the desired state of readiness

January 21, 2016 76

Organisation Readiness For Digital – Assessment Framework

January 21, 2016 77

Organisation Readiness For Digital

Digital Programme Delivery and Execution

Digital Management and Governance

Delivery Approach, Methodologies and

Processes

Delivery Team Roles

Delivery Organisation Structure and Change

Management

Delivery Transfer to Production Operations

Digital Operations

Operations Management and Governance

Operations Business Process Use and

Management

Operations Team Roles

Operations Organisation Structure and Change

Management

Operations Service Delivery and Management

= = = = =

Route To Digital

January 21, 2016 78

Digital Transition And

Transformation


And IT Strategy

Digital Execution, Delivery and Operations

Vision and Guiding Values for Digital

Exploitation

Business Strategy

Organisation Readiness For

Digital


Digital Capability Delivery Roadmap

Digital Solutions

Supporting Solutions

Measurement and Reassessment

Measurement Framework

Digital and IT Strategy

Digital Organisation Capabilities Organisational Capabilities for

Digital

Strategy, Culture, Change

and Governance

Digital Strategy Development

Digital (and Other) Solution

Governance

Organisation Change for

Digital

Process Management


External Party Interaction

Zones, Channels and

Facilities

Personalisation

Content Management


Access and Profile

Management


Digital Specific Applications

and Tools

Internal Interaction

Management Integration

Operational and Business

Systems

Applications Delivery and Management

Tools and Frameworks

System Development, Deployment

and Management

Digital Solution Delivery

Programme Management

Portfolio Project

Management

Business Analysis and Engagement

Tool Selection and Delivery

Solution Architecture

Solution Delivery

Digital Operation

Service Delivery and

Management

Service Analytics

Organisation Management

Capacity Planning

Customer Experience

Research and Analysis

Marketing and Advertising

Design

Usability

Customer Journey

Management

Analytics and Insight

Single View of the Customer

Analysis and Reporting

Data Collection and

Management

Customer Segmentation

and Insight

Digital Technology

Foundation and Infrastructure

Infrastructure

Security

Integration



Management

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Digital Organisation Capabilities

• What the organisation needs to be good at in order to develop and deliver on a digital strategy − There is substantial overlap between these skills and those of

other programme delivery

• Framework to measure where you are and where you need to be

• Develop framework in relation to the digital strategy and what you intend to achieve

• Use to develop plan to address gaps

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Digital Organisation Capabilities Organisational Capabilities for

Digital

Strategy, Culture, Change

and Governance

Digital Strategy Development

Digital (and Other) Solution

Governance

Organisation Change for

Digital

Process Management


External Party Interaction

Zones, Channels and

Facilities

Personalisation

Content Management


Access and Profile

Management


Digital Specific Applications

and Tools

Internal Interaction

Management Integration

Operational and Business

Systems

Applications Delivery and Management

Tools and Frameworks

System Development, Deployment

and Management

Digital Solution Delivery

Programme Management

Portfolio Project

Management

Business Analysis and Engagement

Tool Selection and Delivery

Solution Architecture

Solution Delivery

Digital Operation


Management

Service Analytics

Organisation Management

Capacity Planning

Customer Experience

Research and Analysis

Marketing and Advertising

Design

Usability

Customer Journey

Management

Analytics and Insight

Single View of the Customer

Analysis and Reporting

Data Collection and

Management

Customer Segmentation

and Insight

Digital Technology

Foundation and Infrastructure

Infrastructure

Security

Integration



Management

January 21, 2016 81

Bringing It All Together

January 21, 2016 82

Dimensions of Digital Strategy

Digital Organisation Capabilities

Objectives of Digital Strategy


Operational Layers and

Components

Route to Digital

Bringing It All Together

• Use the different facets of digital analysis and impact assessment described here to generate a comprehensive and realistic understanding of what digital means, what a move to digital involves, requires and what it will deliver

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Reduce The Risk Of Your Dive Into Digital

January 21, 2016 84

Summary

• Remember that technology generally accelerates existing business momentum rather than being the originator of momentum

• Digital is not a panacea

• Know what you mean by digital and have a common understanding to avoid confusion

• You need to be realistic about what can be achieved

• Follow the value

• You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work

• Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture

• Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties

• Don’t let your digital strategy be crushed by the weight of internal and external expectations

• Digital interactions with third parties gives rise to expectations

• Digital will make weaknesses in business processes and underlying technology very evident very quickly

• Iterate through digital initiatives, starting small and focussed, learning from experience

January 21, 2016 85