Design2Disrupt Summit: Didier Bonnet - Leading Digital

TURNING TECHNOLOGY INTO BUSINESS TRANSFORMATION

LEADING DIGITALSOGETI EXECUTIVE SUMMITMUNICH, OCTOBER 9TH, 2014

Copyright © 2014 Capgemini Consulting. All rights reserved.

What Do These Great CompaniesHave In Common?


The DNA Of Digital Masters

The What:Using digital technology to transform the customer experience,

operational processes and business models

The How:Successful transformations depend as much

on how firms manage digital transformation than solely on implementing new technologies


4 Levels Of Digital Mastery

FASHIONISTAS DIGITAL MASTERS

CONSERVATIVESBEGINNERS

• Many advanced digital features (such as social, mobile) in silos

• No overarching vision• Underdeveloped coordination• Digital culture may exist in silos

• Strong overarching digital vision• Excellent governance across silos• Many digital initiatives generating

business value in measurable ways• Strong digital culture

• Management skeptical of the business value of advanced digital technologies

• May be carrying out some experiments

• Immature digital culture

• Overarching digital vision exists, but may be underdeveloped

• Few advanced digital features, though traditional capabilities may be mature

• Strong governance across silos• Active steps to build digital skills and

culture


* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample

The Time To Act Is Now: Digital Masters Have Significantly Better Financial Performance

Basket of indicators:• EBIT Margin

• Net Profit Margin

REVENUE GENERATION EFFICIENCY

+6%

Basket of indicators:• Revenue / Employee• Fixed Asset Turnover

+9%

-10%-4%

PROFITABILITY

% +26%

+9%-24%

-11%


The Time To Act Is Now: Every Industry We’ve Studied Already Has Digital Masters


Digital has informed and amplified customer

expectations

Digital is removing traditional constraints in

operations

Digital business models can reorder value chains andcreate new opportunities

BUSINESS MODEL

CUSTOMER EXPERIENCE OPERATIONS

Digitally-modified businessCustomer Understanding Process digitization

New digital businessTop Line Growth Worker enablement

Digital globalisationCustomer Touch Points Performance management

The What: Building Blocks Of Digital Capability


Four Interventions That Together ChangeThe Customer Value Equation

Designcustomer

experiencefrom the

“outside-in”

Increase reach& engagement

with smartdigital

investment

Put customerdata at theheart of the experience

Seamlesslymesh thedigital and

the physical experience

• Forensic understanding of customer behaviour

• Segment: Journeys / Personae

• New Digital Channels

• Reach & engage where it matters

• Make customer experience and personalisation more scientific

• Harvest and enrich data

• Old & new matter

• Omni channel integration


Operations: The Less Visible Competitive Advantage

People

To Break Traditional Operational Constraints…

Process

TechnologyInformation

Using Digital Capabilities…

To Get To The “Hidden,” Digital Operational Advantage

Knowledge Coordination

Pager Risk

Time Distance

• Process & Productivity Improvement - Cost / Quality / Safety

• Better Employee Collaboration - Connected & Empowered

• Better Decision Making - Agility & Responsiveness


THE COMPETITIVE LANSCAPEIS IN PERPETUAL MOTION

Globalized Competition

Falling Barriers To Entry

Access Vs. Ownership Of Assets

Blurring Industry Boundaries

FIVE ARCHETYPE CHOICES

Re-inventingIndustries

Substituting Products& services

Crafting New Digital Businesses

ReconfiguringDelivery Models

Challenge Your Business Model BeforeSomeone Else Does


Create a shared transformative vision of

the digital future

Engage employees at scale to make vision a reality

Fuse IT & business communities to builddigital skills & transform technology platforms

Establish strong digital governance to steer the course

The How: Leadership Capabilities Is What Turns Digital Investment Into Digital Advantage

TECHNOLOGY VISION

ENGAGEMENTGOVERNANCE


Evolve The Vision Over

Time

Identify Strategic Assets

Define A Clear Intent And Outcome

Create A Transformative Vision

• Industrial Internet – marriage of industrial engineering and Big

Data analysis

• Sales team customer relationships were high value• Shift to sell digital services not books

• Fully digital end-to-end• Align same experience across channels worldwide

• 1.0: Real time operation• 2.0: Full automation• 3.0: Human free mines

Only the senior-most executives cancreate a compelling vision of the future


Vision Sets Direction.Engaged People Make It Happen

FOSTER NEW WAYSOF WORKING

CONNECT THE ORGANIZATION

ENCOURAGE WIDERCONVERSATIONS

• Closing knowledge gaps• Increasing engagement• Solving business issues• Generating new ideas

• Wikis• Microblogs• Social Networks• Video Conferencing

• Executive involvement• Digital champions• Reverse mentoring• Use cases

SCALINGWIRING ADOPTING

New innovation process is creating more innovation, collaboration, and employee engagement across the

company’s business units.

“Communities that are created on the network are free from geographical,

functional or hierarchical boundaries.”“With executive engagement, you don’t have to mandate activity.”


MULTIPLE MECHANISMSTO SUIT CULTURE & REACHGOVERNANCE GOALS

COORDINATION• Prioritizing

• Synchronizing• Aligning

SHARING• Capabilities

• People• Processes• Technology• Information

KEY MECHANISMS

Digital LeadershipRoles

Shared DigitalUnits

Digital Governance Committees

SHARED DIGITAL UNIT

Unit/Region/Brand

Unit/Region/Brand

Unit/Region/Brand

Unit/Region/Brand

Strong Digital Governance Steers a Unified Approach to Digital Transformation


• New ways of working

• Rethinking infrastructure / replatforming

IT Business Relationship

• Digital IQ program

Business And IT Leaders Together DriveTransformation Efforts Better Than They Do Apart


Sustain the Transformation

• Build Foundation Skills• Align Incentives & Rewards• Measure, Monitor & Iterate

Frame the Digital Challenge

• Build Awareness/Understand Impact

• Know your Starting Point• Craft Vision & Align Top Team

Focus Investments

• Translate Vision into Action• Build Your Governance• Fund the Transformation

Mobilize the Organization

• Signal your Ambitions• Earn the Right to Engage• Set New Behavior & Evolve Culture

Digital Transformation Is A Job For Now: The Digital Transformation Compass


Digital Technology Will Remain The Endless Agitator Of The Business World

Augmented Reality

Robotics Artificial Intelligence

Sharing Economies Wearables

3D Printing

You Ain’t Seen Nothin’ Yet

Thank you!

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Design2Disrupt Summit: Didier Bonnet - Leading Digital

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