NASSCOM ILF 2016: Driving Profound Transformation

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DRIVING PROFOUND TRANSFORMATIONNAME: Jeremy BurtonCOMPANY: EMCDESIGNATION: President, Products & Marketing

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PRODUCT companies

CREATING SMART DEVICES

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Service companies

CREATING NEW DIGITAL CONSUMER EXPERIENCES

# Copyright 2016 EMC Corporation. All rights reserved.Consumer app revolution

Hilton took 93 years to get to 610K rooms in 88 countriesABB took 4 years to get to 650k rooms in 192 countries wo capital #TITLE

TRANSFORMING CITIZEN SERVICE

GOVERNMENTS

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All customers Are on a journey to

1000XMORE DATAREAL TIMEOPERATIONANALYTICINSIGHTS

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BREAKS TRADITIONAL IT INFRASTRUCTURE

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BREAKS TRADITIONAL DEVELOPMENT

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BREAKS TRADITIONAL ORGANIZATIONS

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# Copyright 2016 EMC Corporation. All rights reserved.Now youre all familiar with GE one of the oldest, grandest most influential American manufacturing companies in the world.Theyre a company we made an investment with about 3 years ago into a company called Pivotal. Now, they recognized the incredible cultural change they were going to have to go through in order to transform into a company that is relevant in todays world a fact they made quite humorously in a commercial theyve been running in the United States for a few months now.Lets take a watch

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# Copyright 2016 EMC Corporation. All rights reserved.[GE Commercial Video Imbedded In This Slide]#TITLE

# Copyright 2016 EMC Corporation. All rights reserved.What I love about the commercial is it does an incredible job of highlighting just how big the cultural challenge can be in transforming a company. You simply cant transform if you hire the same type of people to do something totally different. You need totally different people.

Jeff Immelt agrees of course and to be both a digital company and an industrial company

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Weve got to bring thousands of people in from the outside. Thats the only way were going to get there fast enough.

Mode 1INDUSTRIAL

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# Copyright 2016 EMC Corporation. All rights reserved.he knew he needed to be move incredibly aggressively to make the transformation possible. Bring in people from the outside to inject the culture thats needed to succeed.

Underneath the commercials humor is acknowledgment that the old GE does not like what they see out of new GE because new GE doesnt do things the old way. And, as the commercial makes perfectly clear they cant. The reason GE has new GE [click] is because they recognize that old GE [click] simply isnt capable of thinking, acting and doing the right thing to make GE what it needs to be in the future. So rather than try and teach the man with the hammer to write software, GE simply created a whole new team whose mission in life is make GE a digital company. The members of the industrial company will stay right where they are. But they are NOT the future.

Will this cause unhappiness? Yes, but the alternative is for everyone to be unhappy when the whole company fails because it wasnt willing to make the unpopular, but necessary decision.

So thats the first step: culturally, recognize that the people that got you to where you are today are not the people that will get you to where you need to go in the future. Act quickly to bring the new people you need, in.

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Immelt Quotes Options (from: http://www.mckinsey.com/insights/organization/ges_jeff_immelt_on_digitizing_in_the_industrial_space):Weve got to bring thousands of people in from the outside. Thats the only way were going to get there fast enough.So we brought people in from the outside. We built a center in California. We started populating our businesses.Product managers have to be different; salespeople have to be different; on-site support has to be different. Weve had to drill and change a lot about the company.What weve found is weve got to hire new product managers, different kinds of commercial people. Its going to be in the thousands.On Culture:So what weve tried to do inside the company is really just drive what we call a culture of simplification: fewer layers, fewer processes, fewer decision points. Weve adapted the lean tools in what I would call a Silicon Valley approach, what we call Fast Works.

Now the commercial takes a humorous approach to comparing old GE with new GE.But underneath the humor is acknowledgment that the old GE does not like what they see out of new GE because new GE doesnt do things the old way. And, as the commercial makes perfectly clear they cant. The reason GE has new GE [click] is because new recognize old GE [click] simply isnt capable of thinking, acting and doing the right thing to make GE what it needs to be in the future. So rather than try and teach the man with the hammer to write software, GE simply created a whole new team whose mission in life is make GE a digital company. The members of the industrial company will stay right where they are. But they are NOT the future.

And thats very much on purpose.Because we Jeff Immelt probably recognizes is that the the GE that will be the core of the company in the future, is not the GE of today.

And as the commercial makes clear Owen is completely different from his father and even his grandfather before him! He cant even lift the hammer! But thats exactly the point GE isnt looking for him to lift the hammer. Thats what Dad and Grandpa are for. And they should keep doing that and they need to keep doing that. But GE isnt going to look to Dad and Grandpa to write the code - thats the skill and the culture that Owen brings to the table. And what is going to take GE into the future.

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A New Iterative development modelSPEED OF ITERATION = COMPETITIVE ADVANTAGE

SpeedAppsAnalyticsData

# Copyright 2016 EMC Corporation. All rights reserved.And these new digitally-enriched products and services are built on a wholly new iterative development model one that values speed over everything. You build new applications that transform your business.[click] Those generate massive amounts of data[click] That you then reason over to gain new insight about what your customers want out of your product or service.[click] If youre a services company, you use this model to release and enhance improved services everyday.If youre a product company, you use this model to update your products in real time.

Now the speed with which you move through this cycle thats your competitive advantage. And thats what disruptive companies are using today to transform entire industries.

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A New Cloud-Native Architecture

MicroServicesThingsData

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The ModernData Center

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Scale-OutFlashSoftware-Defined

FlashScale-OutSoftwareDefinedCloudEnabled

Trusted

Pillars of The Modern Data Center

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Copyright 2016 EMC Corporation. All rights reserved.Now we at EMC and VMware have seen ourselves as strategic partners to help companies build their data centers of the future. But even we recognized it wasnt quite yet in our DNA to help customers get to where they needed to be so we actually started a wholly new company [click] Pivotal, that was to help us be better strategic partners to our customers. So even we built two different modes of operation to set up ourselves up for success.

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Great tie-up article: http://techcrunch.com/2014/11/07/the-path-to-successful-digital-transformation-starts-with-pockets-of-innovation/

Talks GE, EMC, VMware investment in PivotalTalks about Humana as well.

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Mode 2EMERGING TECHNOLOGYDIVISION

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CORE TECHNOLOGYDIVISION

# Copyright 2016 EMC Corporation. All rights reserved.Now you might be saying to yourself Jeremy, its great you can tell us about how all these other leaders have made these changes but why should we believe you? Well, first we helped these companies make their transformations. But also, we at EMC we had to make the change ourselves! [click]Splitting the company into two divisions one focused on evolving the core technology that made us what we are up to this point the other focused on developing the new technologies so that will take us into the future.

[Talk about the lessons youve learned leading this change]

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# Copyright 2016 EMC Corporation. All rights reserved.Finally, a bit of humourLooking at the comic, Ill tell you you guys arent the one in the chair. Youre the one listening. Keep that in mind. Because as the pace of change accelerates, its your employees that will be looking to you to understand how to make sense of it, and then what to do about it.

Source: http://techcrunch.com/2016/01/31/digital-transformation-requires-total-organizational-commitment/#TITLE