How Digital Disruption Is Redefining Industries SAP ... · How Digital Disruption Is Redefining...
Transcript of How Digital Disruption Is Redefining Industries SAP ... · How Digital Disruption Is Redefining...
Giuseppe Bruni - Head of BTS– South East Asia and India 28 November 2016
How Digital Disruption Is Redefining Industries SAP Business Transformation Services
Customer
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Transforming to Digital
1. Digital has already happened
2. A Framework to Help you Undertake your Digital Transformation
3. Experience of companies who have used the Digital Framework
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Do you perhaps know all of these faces?
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… or are their companies better known to you?
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Ma Huateng
Jack Ma
Alibaba
Jan Koum
Steve Jobs
Apple
Brian Chesky, Joe Gebbia &
Nathan Blecharczyk
Airbnb
Travis Kalanick
Uber
Elon Musk
PayPal
Jeff Bezos
Amazon
… these individuals and their companies are shaping the Digital world
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These digital giants are creating new competitive business models
Taxi sector
Community
banking
Payment
methods
Book
market
Music
distribution
Cloud
Business
Logistics
Mobile
Software
Music
Retail
Transport
challenging changing world of transforming
inventing
redefining revolutionizing
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Digitalization is shaping the corporate landscape
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75 years
38 years
13 years
3.5 years
35 days
t
TV
Why is agile innovation so important? Market diffusion of ideas by years to reach 50 million users
19 days
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Expected Digital disruption per industry
Source: Interview with 1.200 Executives - .Forrester “The Digital Business Imperative”, 2014
86% Insurance 83% Education and social
services 83%
Banking and financial
services 82%
Government and non-
profit
81% Media, entertainment,
and leisure (excluding
travel) 81% Retail and wholesale 78% Tele-communications 77%
Professional and
business services
Utilities 77% Healthcare 76% Transportation and
travel 74%
Consumer packaged
goods 72%
Technology products 70% Pharmaceuticals and
medical equipment 70%
Oil, gas, mining, and
chemicals 65%
Construction and
engineering 63%
Industrial products 60%
Massively disrupted
Moderately disrupted
Somewhat disrupted
Digitalization is an inevitable trend.
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BENEFITS
Profitability “Virtual Assets”
Agility “Real Time”
Customer Loyalty ”Segment / Lot Size of 1”
Employee Loyalty “War for Talent”
DRIVERS
Technology
Funds
Servitization
Behavior
Entry Barriers
DIGITALIZATION AREAS
DIGITALIZE
BUSINESS PROCESSES
DIGITALIZE
BUSINESS MODELS
DIGITALIZE
WORK
DIGITALIZE
PRODUCTS
Digital isn’t new … but “Digitalization of Businesses” IS!
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SAP HANA Platform
Assets and the
Internet of Things
Customer experience
Omnichannel
Supplier collaboration
Business networks Workforce engagement
SAP HANA
Cloud Platform
Digital core
SAP offers the only end-to-end digital business solution SAP S/4HANA enables digitization across five business pillars
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What Are Your Peers Asking BTS?
Where are the business opportunities in the new
digital economy?
What is the required business model to realize
business digitalization opportunities?
How do we realize our new business model and instill an innovation culture into
our organization?
How do we need to adapt our business strategy to
be successful in the digital world?
Which enterprise architecture is required to
implement our digital strategy and how do we
realize it?
How do we transform our current business into a
digital business?
How do we articulate the business value of our
planned investment in digital?
How do we quantify and measure the business
KPIs of our digital transformation?
Which governance is required to ensure the
expected business value from digital is realized?
?
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What is the required business model to realize
business digitalization opportunities?
How do we realize our new business model and instill an innovation culture into
our organization?
Where are the business opportunities in the new
digital economy?
Digital Dream Zone
Business Model Design
Business Model Implementation
How do we need to adapt our business strategy to
be successful in the digital world?
Which enterprise architecture is required to
implement our digital strategy and how do we
realize it?
How do we transform our current business into a
digital business?
How do we articulate the business value of our
planned investment in digital?
How do we quantify and measure the business
KPIs of our digital transformation
Which governance is required to ensure the
expected business value from digital is realized?
Digital Strategy
Enterprise Architecture &
Roadmap
Business Transformation
Value Proposition
Value Design
Value Governance
SAP BTS : We Help Customers’ Business Transition Into The Digital World
Business Innovation
Re-imagine Design Transform
Digital Architecture
Value Generation
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• Business Model
• Pilots / Prototypes
• Innovation CoE Design
• Innovation Roadmap
• Implemented business
model
• Innovation CoE
• Innovation enabled
organization
• New radical business ideas
• New digital working models
• New digital capabilities
• Digital Readiness
• Market/Competitor Analysis
• Digitalization Opportunities
• Vision, Mission, Objectives
• Business Processes
• Organization & Governance
• People & Skills
• Solution Architecture
• Transformation Roadmap
• Program Mgmt.
• Organization Change Mgmt.
• People Enablement
• Risk management
• CCoE/ICC/OCC Setup
• Benchmarks
• Value Driver & Potential
• Investment Needs
• Business KPIs
• Business Case
• Value Realization Plan
• Governance Framework
• Governance
• Executive Dashboards
• Value Mgmt. Office
SAP BTS : We Help Customers’ Business Transition Into The Digital World
Business Innovation
Re-imagine Design Transform
Digital Architecture
Value Generation
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Innovate Reimagine Transform Operate
Open-minded
Creative
Desirability-focused
Avoidance of habits
Be unafraid to say no
Fail early, fail cheaply
Leverage supporters
Avoid too early decisions
Plan-build-run philosophy
On time and on budget
Rational thinking
Avoidance of failure
Focused on operating
expenses
Get-things-done attitude
Continuous improvement
Avoid disruption
The designer The innovator The transformer The operator
From reimagination to operation Digital transformation goes far beyond the MBA-trained mind
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Business Model Implementation
Business Transformation Management
Value Governance & Dashboards
Digital Dream Zone
Digital Strategy
Value Proposition
Business Model Innovation & Design
Digital Enterprise Architecture & Roadmap Design
Business Value Assessment & Design
TRANSFORM
The BTS Approach to turn Ideas into Business Value
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Consulting Development Support Education
Next Generation of MaxAttention
ICC OCC
SAP Mission Control Center
Simplify and Innovate With proven Best Practices All deployment models
Advise / Plan Build / Launch Run Optimize / Adopt
For continuous innovation
Learn
Extend
Engage ActiveEmbedded MaxAttention
Re-imagine Design
Transform
An End-to-end Coverage of Your Digital Journey
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Customer Example: Future Business Model “Create the smart, small shipping provider of the future”
Business Situation:
$4 billion revenue, 4.000 employees
70+ lines, all major trade routes
170+ offices in 100+ countries
Business Challenges:
Vessel overcapacity pressure on cost/rates
Industry consolidation
State subsidies affecting commercial dynamics
Engagement Approach:
Re-imagine business model
Create new business services (revenue)
Modernize IT landscape
Re-imagine Business Model with SAP BTS BIT
11 Business Concepts
6 Business Model
Design Workshops
100+ Business
Participants (incl. CEO)
100+ Business
Ambassadors mobilized
20+ Interviews with end-customers
28 Business
Prototypes
4 Continents
104 Value
Propositions
1
Design Thinking
5 Business Models
APPROACH
CUSTOMER OUTCOMES
Business Model
Innovation & DT
80 Consulting Days
Business
Innovation
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Business (Viability)
People (Desirability)
Technology (Feasibility)
Digital Business Modelling How to create a digital business model
Network View
to identify stakeholder
relationships
Enterprise View
to describe how an organization
creates, delivers, and captures
value
Business
Innovation
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People
Businesses
Things
Cloud
Data
Use the proven
success stories of
digital companies
Inspire ideas for your
digital transformation
(Maturity Model)
Transfer the business-
model concept using
value drivers to inspire
more detailed ideas for
single business-model
elements
(Design Thinking@BTS)
Identify new digital
services you can
offer to your
customers
(business-model
canvas)
Find the technology
enabler to implement
your digital business
model
(EARD)
Reimagine your business models routinely
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Customer Example: Supply Chain Business Assessment „Design the supply chain of the future“
SITUATION
Revenue: 4,4 bn € (2015)
Employees: 24,400 FTE
#3 Consumer Appliance company in EMEA
Countries: 100
Industry: Household Appliances & Consumer Electronics
SOLUTION
Align on the best practices and the value potential of Demand-Driven Supply Chain Management (DDSCM)
Share the BTS perspective on CP industry challenges and best practices with regards to DDSCM
Provide insights into SAP’s vision/ innovations in SCM
Analyze the customer’s global supply chain maturity in DDSCM in order to identify areas for improvement with high perceived value potential
Build a supply chain transformation roadmap for the identified improvement areas
Plan and agree on next steps
BUSINESS CHALLENGES
Multiple divisions & geographies
Rapid growth by acquisition
Diverse new cultures of acquired entities
International expansion beyond the traditional local market
Diversity in supply chain practices
Opportunities to optimize and align supply chain management
BTS Approach
Design-Thinking workshop with the customer’s SCM business experts
Management meeting to discuss an initial roadmap, agree on “quick wins” and decide on a DDSCM assessment
Business requirement workshops conducted to analyze specific pain points regarding prioritized quick wins (Supply Chain Visibility and Demand Prioritization).
Developing an insight into the most promising improvement areas across business entities and geographies and a roadmap to realize benefits
Support the customer during the implementation of the roadmap
Digital
Architecture
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Supply Chain Strategy and Design Digital Supply Chain Innovation
Digital
Architecture
DIGITAL SUPPLY CHAIN INNOVATION
SUPPLY SIDE / TECHNOLOGY PUSH DEMAND SIDE / CUSTOMER PULL
Mobility
Today, mobile devices are the primary method of internet access.
Cloud Computing
Any access, any workload anywhere.
Social Networks
Billions of users provide a new source of data relevant for business.
In-Memory and Big Data
Exploding volume, variety, and velocity of data, new processing capabilities.
Internet of Things
Availability of cheap sensors everywhere.
Omnichannel Commerce
New demand streams and customer requirements driven by the internet.
Real-time Business
Decisions in real-time, merge of planning and execution levels for coping with volatility and dynamics
Segment of One
Precise targeting of customers, personal recommendations, individual products.
Global Demand and Supply
Managing worldwide distributed supply networks for global markets.
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Customer Example Value Governance based on 4-Panel approach
Increase value out of existing SAP installations by decreasing the number of legacies, usability improvements, continuous process improvements and improved access to data
Jointly exploit business focused innovations making use of new technology
Get more value from recent SAP developments through portfolio optimization
Reduce operating costs by 25% & achieve top quartile operations
Each panel has a set of dedicated objectives and targets to be reached, as well as a governance model that ensures accountability at all levels.
Optimize Exploit
See Shell's CFO Simon Henry, CIO Alan Matula and SAP's Member of the Executive Board Rob Enslin providing insights.: https://www.sap-tv.com/video/#/34851/shell-accelerates-transition-into-the-cloud-with-sap
Value
Generation
Run Better (Operate)
Extend Use (Invest)
Use Better (Harvest)
Build New (Innovate)
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What can YOU do?
Revisit your Strategy for Digital
Be bold and re-imagine your Business Model
Update your IT Roadmap & Enterprise Architecture
Adopt Value Management to drive value from Digital
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Giuseppe Bruni Head of CxO Advisory SAP South East Asia and India
30 Pasir Panjang Rd, Singapore 117440, Singapore M +65 9002 3502 E [email protected]