Opening Keynote: What is Digital Transformation, Really?

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1 Opening Keynote: What is Digital Transformation, Really? Wikipedia defines Digital transformation as referring to the changes associated with the application of digital technology in all aspects of human society. Digital transformation may be thought as the third stage of embracing digital technologies: digital competence digital literacy digital transformation. It’s application to business is a subset of that but in execution has fallen into the buzzword trap. Jim will walk through the real drivers, the real needs, the real uses in the real world, why it is important and what, when, where, why and how of IT departments’ role in making it real. 9:00 AM Opening Keynote: What is Digital Transformation, Really? Room: 1-5 Speaker: Jim Stikeleather 9:45 AM Coffee Break and Networking

Transcript of Opening Keynote: What is Digital Transformation, Really?

Page 1: Opening Keynote: What is Digital Transformation, Really?

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• Opening Keynote: What is Digital Transformation, Really?

• Wikipedia defines Digital transformation as referring to the changes associated with the application of digital technology in all aspects of human society. Digital transformation may be thought as the third stage of embracing digital technologies: digital competence → digital literacy → digital transformation. It’s application to business is a subset of that but in execution has fallen into the buzzword trap. Jim will walk through the real drivers, the real needs, the real uses in the real world, why it is important and what, when, where, why and how of IT departments’ role in making it real.

• 9:00 AM

• Opening Keynote: What is Digital Transformation, Really?

• Room: 1-5

• Speaker: Jim Stikeleather

• 9:45 AM

• Coffee Break and Networking

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Change fixes the past. Transformation creates the future. Innovation is the root of Transformation.

Jim StikeleatherChief Innovation Officer for Dell

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Begin with the end in mind…

“Generalship is more like gardening than playing chess”

The digital services economy is forcing organizations to re-evaluate traditional operating models, including their approach to enterprise content management, to not only survive but get ahead of the competition. For organizations to stay relevant and competitive they need to be constantly innovating. That means traditional models of infrastructure, applications and operations need to change, moving toward a more dynamic and adaptable operating model.

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CEO Perspectives

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Corporate Churn

of Fortune 500 firms that existed in 1955 do not exist in 2014*

89%

* www.aei-ideas.org/2014/08/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction** www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever

S&P 500 Firms Avg. Life**

1958 – 61 Years

2013 – 18 Years

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70% of CIOs

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Digital transformation is not about “better, faster, cheaper”*…

Business

Models

Management

Products and

ServicesProcesses

Marketing

New ideas + Forward-thinking + Feasible + Viable + Valuable

Innovation is the process that takes new ideas and implements them in a way that creates value by solving unmet needs.

it is about innovation

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Fishing Trip

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The CEO Perspective of this:

The purpose of the 20th century firm:

The purpose of the 21st century firm:

To minimize transaction costs and achieve scalable efficiency

To accelerate capability building and effectively apply that capability to innovation

Creating new value —better & faster

New view: Socially-enabled enterprise operating in a digital business ecosystem

IT is essential to enabling firms to evolve and innovate with information driven value creation

Systems of Record Systems of Engagement

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PrescriptiveAnalytics

DescriptiveAnalytics

PredictiveAnalytics

ExploratoryAnalytics

And coming–Systems of “complete” automation

Internet of Things Tagged items: RFID, NFC, wireless sensors, household appliances

Industrial Internet Integration of complex machinery with network sensors and software, includes: IoT, M2M and has machine learning, big data capabilities in real-time

Web of Things Every day devices with embedded device or computer, connected by fully integrating to the web, utilizes web standards

Machine to Machine Networking: Wired and wireless technologies that link systems of the same type

Big data

Analog data

Machine learning

Real-time

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Descriptive

Predictive

PrescriptiveExploratory

Cynefin

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Organic behavior: Organization, Service, Product

Co

nc

ep

tua

liz

e &

De

cid

e

Ob

serv

e &

Co

mp

reh

en

d

Orient & Communicate

Act in Collaboration

Derived from:Trilogy Model Knowledge

Creation ProcessMethusael B. CebrianCollege of Education

Capitol University, Phillipines

Integration of the

• OODA Loop

US AirForce Colonel John Boyd

• SECI ModelSocialization, Externalization, Combination and InternalizationProfessor Ikujiro Nonaka of Japan Institute of Science &Technology

• Oinas-KukkonenOrganizational Knowledge Creation and Management Framework Harri Oinas-KukkonenUniversity of Oulu, Finland Stanford University, USA

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Digital Transformation Goal – A Software Defined Enterprise

A software-defined enterprise is one that uses the power of software to keep redefining itself, rather than being locked into operating in a specific way. It instantiates its business processes in easily reconfigurable and extensible software that gives it the agility to rapidly morph its operations to adapt to newly emerging business opportunities and challenges.

Now The Future

Know Competition Unpredictable

Owned Assets Shared

Planned Innovation Iterative

Paced Deployment Instant

Countable Customer Infinite

Enterprise

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But reality*Digital transformation is being used for catching up to customers and staff

De

gre

e o

f a

do

pti

on

Time

Technological development

Technological adoption by people

Technological adoption typical company

Technological adoption laggard company

Digital transformation

Digital business transformation

* Alain Veuve – www.alainveuve.ch

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Engineeredefficiency @ scale• Management control• Standardization• Specialization• Centralization• Expertise• Hierarchy• Alignment• Conformance• Predictability• Extrinsic rewards• Closed

Emergentefficacy @ moment• Engagement• Freedom• Diversity• Mash-ability• Disaggregation• Collective intelligence• Community• Experimentation• Opt-in• Serendipity• Intrinsic rewards• Open

Scale Adaptability

Efficiency Innovation

Discipline Engagement

Delivery Application

Transactional models Production separate from consumption

Systems of record

Social/Eco-modelsProduction co-resident with consumption

Systems of engagement

Transformation of business/management/ operational models & IT

Past Future• Absolute integrity• Data at rest• Structured data• Static

• Absolute insight• Data in motion• Unstructured data• Dynamic

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Three necessary dimensions of success:

Visionary business leader

Attitude

Pragmatist

• Interactions & relationships

• Resources & allocations

• Outcomes & activities

• Questions & focus

Focus

Innovation and what creates value for your customers

What you do betterthan anyone else

What you are required to for legal or regulatory reasons

Received Wisdom?

Tradition?

Physics?

What to Start, Stop, Do Differently?

Technology & business models

Standardize

Simplify

Automate

Future-ready

What will you give up?

What will you do new?

What will you do differently?

What can others do for you?

Anticipate Lead Architect Govern Procure Provision Monitor Manage

Build Own Deliver

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Change is reversible,Transformation is not.

[email protected]

Twitter: @stikeyoda

www.InnovateBusinessIT.com

http://www.managementexchange.com/users/jim-stikeleather

http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185