Opening Keynote: What is Digital Transformation, Really?
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Transcript of 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
Change is reversible,Transformation is not.
Twitter: @stikeyoda
www.InnovateBusinessIT.com
http://www.managementexchange.com/users/jim-stikeleather
http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185