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IBM Systems Consulting

Digital Transformation Strategy

Stefan Idzig

IBM SloveniaThessaloniki, 07.04.17

© 2017 IBM Corporation 2

The Agenda

The emerging challenges of Digital Transformation

The Digital Transformation Strategy

Digital Transformation Technologies and Capabilities

Success Stories

Key Value Proposition & Next Steps

IBM Systems | 3

of CEOs feel technological disruption

is making them reassess strategic

direction

“We see the business models changing as a result of the

creative use of new technologies.”

-Eelco Blok, CEO, KPN, Netherlands1

of global business leaders say that a

substantial part of their revenue is at

risk from technology shifts252%

67%

Technology is the most important

external influence among the C-Suite

today

Source: 1) IBM Institute for Business Value, Redefining Competition, Insights from the Global C-suite Study – The CEO Perspective, 2015Source: 2) Harvard Business Review Analytic Services, The Ecosystem Equation: Competing in the Connected Economy, 2016


New technologies are here to stay and companies are

solid in their investments

IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q10. How important are the following technology trends to your company’s business strategy?Q13/Q15. Which of the following digital operations initiatives have received the greatest level of investment over the past 3 years? Next 3 years? Select up to 3.

Investment levels reflect early stage of maturity curve

Foundational technologies are

still being put in place. Cloud,

Big Data, and IoT are top areas

of investment—both yesterday

and tomorrow.

Drones, location technologies,

and robotics are still in early

days.

High performers are more likely

to have invested in Big Data

over the past three years.

Among the top three areas of

investment, Healthcare is most

likely to have invested heavily

in cloud (63%), Industrial in Big

Data (51%), and Consumer

Products in IoT (45%) over the

past three years.

Big Data has been a top

investment in APAC (53%). Select up to 3 for each time period

Cloud

BD&A

IoT

Mobile

Social

M2M

Cognitive

Additive

Drones

Location

Robotics

Investment levels reflect early stage of maturity curve

Foundational technologies are

still being put in place. Cloud,

Big Data, and IoT are top areas

of investment—both yesterday

and tomorrow.

Drones, location technologies,

and robotics are still in early

days.

High performers are more likely

to have invested in Big Data

over the past three years.

Among the top three areas of

investment, Healthcare is most

likely to have invested heavily

in cloud (63%), Industrial in Big

Data (51%), and Consumer

Products in IoT (45%) over the

past three years.

Big Data has been a top

investment in APAC (53%). Select up to 3 for each time period

Top investmentsTop technology trends

Big Data and Analytics

Location technologies (RFID)

Cognitive computing

Collaboration & social technologies

Machine-to-Machine connectivity

Cloud computing

Mobile technologies & applications

Internet of Things

Drones

Additive manufacturing (3D printing)

Robotics

34%

34%

30%

28%

27%

20%

22%

19%

16%

5%

“Highly important responses”

First Tier

Second Tier

Third Tier

35%


Digital Transformation business initiatives center on

innovation and growth

IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q9. Which business initiatives do you expect to be of greatest importance to your firm over the next three years?

Increasing innovation, entering new markets and customer responsiveness – all growth stories – are top-ranked business initiatives

for the coming years


Some industries are leaping ahead, while others

consternateDigital transformation industry maturity at a glance

IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q10. How important are the following technology trends to your company’s business strategy?Q17. How mature are your applications of digital operations in the following areas today?


Business leaders are turning to IT to capitalize on

revenue disruption, but is IT ready?

Source: 1) IDC CIO Sentiment Survey, 2015

Perception of the IT Infrastructure Executive1

What I Really DoWhat LOB Leaders Require Me to Do

Innovator 41%

Operator 28%

Innovator 25%

Operator 41%


The Agenda



Digital Transformation Technologies and Capabilities

Success Stories



What is Digital Transformation?

Leadership capabilities

Digital capabilities

Customer experience

Operational processes

New business models


The Digital Transformation Strategy Engagement

considers a Hybrid IT approach that supports the current

and future business missions

Social

Cloud Enabled

Analytics

Mobile

Enterprise IT

Fundamentals

Optimized Systems

Service Predictability

DevOps

Business Objectives and Imperatives


What is the best way to develop an effective Digital

Transformation Strategy?

Identify and understand key business risks and opportunities presented by digital

technologies, industry trends and competitive disintermediation risks

Understand key business priorities and initiatives

Identify and confirm key strategic digital transformation initiatives

Define measureable success factors for chosen digital transformation initiatives

Assess strategic intent and commitment from business to address/exploit digital

transformation opportunities

Identify, confirm and assess current and future state requirements for IT, people

and process to achieve strategic digital transformation initiatives

Perform current-future state gap analysis identifying and prioritizing key actions

and initiatives needed to close exposures

Develop and manage to a structured roadmap of execution to manage digital

transformation


Digital Transformation Strategy Structure and Timeline

12

1 week

Finalize workshop

logistics and timeline

Complete IT

environment

questionnaire

Complete Business

Objectives

questionnaire

Complete IT provider

relationship survey

Collect and analyze

discovery documents

Conduct an

engagement kick-off

with client IT leadership

team

Review workshop

objectives, approach

and timeline

Distribute discovery

documents to the client;

including

− IT environment

questionnaire

−Business objectives

survey

−IT provider relationship

survey

Plan workshop date

Begin planning

workshop logistics

Analyze workshop

outcome and IT

department direction

Produce project

recommendations

based on

observations and

analyzed data

Create an IT

roadmap for

improvements

based on IT

capabilities needed

for transformation

Produce an

executive-level

report

Present report to

client IT leadership

team

Determine

immediate next

steps

Elevate Prepare Assess Recommend

1 day 2 hrs +1 day 1 week

Week 1 Week 1 Week 2 Week 3 Week 3 or 4

Analyze

Client responsibilities are highlighted in red

Conduct workshop

with client IT

leadership team

− Provide IBM thought

leadership on digital

transformation

− Review business’

objectives and

imperatives

− Discuss IT implications

of business’ imperatives

− Conduct IT Capability

Assessment

− Prioritize projects that

will close any IT

capability gaps


Key elements within Digital Transformation Strategy –

Business Understanding, Alignment and Assessment

Direction

Business Objectives Questionnaire

IT Provider Relationship Model

IT Environment Questionnaire


Digital Transformation Strategy – Readiness & Maturity


Digital Transformation Strategy Roadmap

Workshop information is

synthesized into a sequenced

set of executable projects that

form an 18 – 24 month

roadmap

The consultant will highlight

project dependencies

All projects will be clearly

cross-referenced to the

business’ digital

transformation objectives and

imperatives

Projects will be summarized

in a single-page view of the IT

transformation vision

The final report will include an

executive summary that the

CIO can use in discussion


The Agenda



Digital Technologies and Capabilities

Success Stories



Hybrid Cloud – Cloud orchestration


IBM Watson IOT Platform edge analytics general

architecture


IBM Watson Cognitive Rental Car Service


The Agenda




Success Stories



A DTS engagement provides executive-level IT insights in

a business context, identifying projects for early action

Cloud Readiness example

Deliverables

Workload Analysis Possible Alternate Solution Options

TCO Analysis for Possible Options

Identifying the best solution

Recommended Architecture


Digital Transformation Strategy Values –

Optimized Systems Example


Digital Transformation Strategy Values - ExampleBank in SEE The Bank, all through its history of business operation, has held leading positions

within the country's banking industry in rendering export and import payment services and financing foreign trade transactions

Client Needs

Client created Business Strategy for 2016-2020

IT was requested to create IT Strategy aligned with Business Strategy

BU Leader (Audit) requested assessment from E&Y to create an understanding

where IT is

The Bank was chosen as a “Innovation Sandbox”.

Fragments from Business Strategy

Reach new level of Business-IT relationship model

Change IT service management from traditional model to new business oriented

model

Improvements in IT resources and capacity management

Development process standardization and unification

Consider different sourcing models


The Agenda




Success Stories



Digital Transformation Strategy Values

The Digital Transformation Strategy helps clients align their IT goals and objectives

with the emerging trends of global business transformation

Delivers a fact-based approach to developing an IT department better able to

support future business workloads

Identifies and prioritizes wider IT changes required for ongoing IT value and

effectiveness

A manageable set of targeted IT infrastructure improvement projects, optimizing

use of IT resources

Improved efficiency and effectiveness of IT resources


Digital Transformation Strategy Values – Example: How

was DTS delivered

• Our message to client: we will help you in assessment of your readiness for the

transformation and will provide recommendations how to increase your maturity level

• We received and processed preliminary information about business strategy and IT

technologies and processes in the company

• We arrange first meeting with business people to discuss companies business strategy

• We delivered two-days workshop where we assessed business-IT relationship model,

projects portfolio, IT domains (Enterprise, Applications, Infrastructure, IT Service

Management, some Analytics and Cloud)

• We had separate discussion with Innovations Department

• We were closely working with IT managers to create final report


Digital Transformation Strategy Values –

Example: Project results

• We created 2 presentations with results – for Business and for IT – and document with

report

• CIO delivered our outcomes and recommendations to the Board of Directors

• The major result in report was project “roadmap” recommended for consideration

• Based on the project roadmap we created prioritized list of projects


IBM Systems Consulting

It is an integral part of IBM Systems Lab Services

Our mission:

• helps clients solve IT issues by engaging early and creating actionable plans

• helping clients successfully plan, build and operate an efficient, highly available IT infrastructure


Performance works together with IBM Consulting Team to help IT

Leaders plan, design and implement infrastructure to accelerate the

Digital Transformation in a Cognitive Era

Helping Clients understand how to deploy their IT infrastructure to maximize business

outcomes.

Having proven expertise that is derived from a combination of business and extensive

practical technical experience, leveraging proven tools and methodologies.

Exploiting the true value of the IBM assets and defining solutions to help reach business

and IT goals and deliver business value.

Helping Clients solve their IT issues by engaging early in their planning cycle, facilitating

the creation of actionable plans with business and IT executive stakeholders

Working with Clients to plan, build, and operate an efficient, highly available IT

infrastructure that can meet current and emerging workloads


Next Steps for Digital Transformation

Strategy

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