Role of data integration in enabling your digital business march 18 12 noon v1

© PA Knowledge Limited 2015 1

ROLE OF DATA INTEGRATION IN ENABLING YOUR DIGITAL BUSINESS

Mark Skilton

Digital Expert

PA Consulting

[email protected]

+44 7808039240

https://www.brighttalk.com/webcast/9059/147845

March 18 12 noon

BrightTALK Business Intelligence & Analytics Community

mailto:[email protected]




Aims of this session

The aim of this session is to explore thought leadership around

the impact of digitization and Data Integration

If you would like to find out more about PA Consulting and our Digital Solutions

• Visit out digital innovation hub

http://www.paconsulting.com/digital-insights/

• follow us @GoDigitalPA

https://twitter.com/GoDigitalPA

• Or get in contact our Digital Solutions experts at Digital Solutions PA Consulting

http://www.paconsulting.com/it-consulting/digital-solutions/















• How does your business shape up in the digital economy

• What holistic considerations really matter in digital

thinking for your business and the role of data in the new

digital enterprise.

• Case studies of practical evidence of how to join up

business spaces with an integrated thinking approach

Agenda


We live in the Information Economy era – a Digital data driven disruption

The Future is

“Live Advertizing”

“click on an video or advert

on a web page in a tablet

or mobile embedded code

allows you to click the

picture and then it

automatically brings up a

catalog, options of

merchants to buy it from

and then pay and go.. all

frictionless”

Digital Clustering

in the Services

Economy

“Clustering in Cities

matter….the (agglomeration)

model is driving growth in the

Services sector (to create more

jobs and company inward

investment) supporting much

more closer networks of people

, accelerated by digital to help

networks exist BUT all want to

be physical in context”

Privacy and

geolocation

will become

differentiators

“ 2 /3rds of the daily calls and

messages between parents and

children deal with the physical

location of the family members “

Digital

Convergence

is happening

“ There will be 25 Billion objects

predicted within 5 years,

potentially that’s 25 Billion points

of sale PoS… it’s about digital

convergence “

Mobile will be

the remote

control to the World

“ We analyzed data and feedback from more than

40 million..members, as well as guest surveys,

social media posts, and review sites, and it's clear

that guests want greater choice and control “

Digitization and

Innovation

“I don’t see

Digitalization is about

Enterprise, it’s all

about increasing

Innovation”


1 Zettabytes at Year of global Internet traffic

by 2016

Triple in 3 years 2018

1 Billion gigabytes per month

400 Gigabytes per second

By 2020

2 Billion gigabytes per month , 800 to 1000

Gigabytes per second

In 3 minutes to present tis slide = 7200

Gigabytes, = 70 laptops of data (/1

Terabyte)

Or 1125 iPhones of data (/64Gigabytes)

Internet Traffic has grown 64x since 2005

Today it’s about 17 Gigabytes of Data per

capita

The Impact of data - In ONE DIGITAL SECOND …

50 Billion Objects and growing in next few years


Digitization is everywhere


Digital Economics

PROTECT VALUE

RELEASE

& GROW VALUE

NEW VALUE Shadow IT

6-11% GDP

20-40% CAGR

Subsegment

eCommerce

Growth

30-40% Shift in

IT to Business led

HOW CREATE VALUE THROUGH

DIGITIZATION

New efficiencies

Reliability, standards, and consistency

New mechanisms for scaling eCommerce

Existing and new physical & Virtual asset

and relationships value

New Disruptive Business Models

New Disruptive Business Technology methods

New Social – data & technology value creation

50-80% Shift

In skills &

Operations

driven by

Digitization

of Products

& Services

& Business

Models

Growing

Digital

markets

PERSPECTIVES OF DIGITAL

ECONOMY Digital

Economy

Physical

Economy


Digital Business changing trends

3-11% of Global GDP

is Digital eCommerce

30-40% cagr of revenue

growth eCommerce

Business

Digital Divide

45% internet users

in Asia

3rd Global Population

no Access

Changing population

demographics &

8 Billion by 2050

Sustainability

30-50% Growth

Air traffic

100-150% CO2

by 2050

85% business

expect cyber

attack. on Privacy

1% Global GDP

6x increase

in digital &

Mobile

payments

Digital Markets

B2C 60-80%

sales

Influence by

Digital

ECONOMY eCOMMERCE SOCIAL

INTELLIGENCE SUSTAINABILITY ACCESS &

INCLUSION

CYBER

THREATS

FINANCE SOCIETY

In next 5 years - Understanding where the next $1 Trillion

Global GDP will come from?


BUSINESS DIGITAL BUSINESS MODELS

Suppliers Operations Customers Consumers

DIGITAL BUSINESS

Channels

Outlets

System & Network Effects

(connectivity vs domains & channels)

Paradox of Control

(control vs. openness)

Paradox of Change

(stability vs. flexibility)

Competitive complexity intensifies

Ubiquitous IT

“Nature of data”

Industries are going through Digitization , transforming business models

Commodity, mobile, modular

Cost structures challenged

e.g. Switching, technology, sunk,

marginal or transaction costs

Massive, crowd, insight

CONVERGENCE


CASE STUDY: Thinking Holistically about your Business as a Digital Business Value Chain Network

Just thinking about digital technologies and insight as “a list” without a

proper business context is meaningless or at best a micro-strategy

Thinking digitally needs to be a joined up business capability model to enable Insight to action

BUSINESS

MODEL

DIGITAL

BUSINESS

MODEL

Advanced

Product Data

management

Mobile

enabled

Field Services

Support

Omni-channel

marketing –

Social media

Smart Buildings

Smart Assets

Smart Data Analytics


CASE STUDY : How does your Business operate across the market and to each customer client?

The Wider Digital Business Ecosystem

The DIGITIZATION AFFECT –

How ASSETS, DATA , SOFTWARE & ANALYTICS

come together

Examples of Business Systems …

Examples of Digital Systems


Digital technology trends

84% Mobile

Market

Penetration 1 in 4 using

Social Media

1 in 3 by 2017

7 Zettabytes

Internet

Data Storage

X44 to x80

increase in

mobile traffic

MOBILE SOCIAL CLOUD TELECOMS BIG DATA

20% Growth

150 Exabyte's

per Month

CYBER INTERNET

OF THINGS

WEARABLES

50 Billion Objects

100 million

Connected car 2022

10%-43%

Adoption next

5 years

49% attacks

are Cyber crime

35% Hacktivist

16% Espionage

& Cyber Warfare

DIGITIZATION THROUGH NEW TECHNOLOGICAL CAPABILITIES


The Customer Experience Centricity of Digital Business – is just one perspective


Business needed to think holistically as a up Digital capabilities model…

Digital

Business

Spaces

Objects

Rooms,

Walls, Floors

Contextual Actions

Personal, social,

Business Communities

Building, facilities

Knowledge

In-transit and

Transport

Joined up Digital capabilities

Digital technology is placed in and works in these context , not as an add-on.

digital solutions

need

to be in context

and joined up


CX and CX Context Matter

DIGITIZATION OF SOCIAL BEHAVIOR DIGITIZATION OF SUPPLY CHAIN NETWORK

Objects, Sensors

Rooms,

Walls, Floors

Contextual Actions

Personal, social,



Knowledge

In-transit and

Transport

Value Chain

CX CONTEXT CX

“Forrester “The Line of Visibility between CX and CX context) “ 2015

that digital solutions need to be in context and joined up


So when we design responsive digital solution they are in context

DIGITIZATION OF SOCIAL BEHAVIOR DIGITIZATION OF SUPPLY CHAIN NETWORK

Objects, Sensors

Rooms,

Walls, Floors

Contextual Actions

Personal, social,



Knowledge

In-transit and

Transport

Mobile

Device

Objects Consumable

Objects Fixed

Objects

Contextual

Assisted actions

Building

Spaces

Bio-

Sensors

Room

Spaces

Knowledge

Assisted

In-Transit

Spaces Social

Community

Spaces

Machine

Sensors

Business

Commerce

Spaces

Value Chain

Digital strategy and Digital design are aligned and not seen as separate


The Digital Supply chain is changing in Experience

Commerce Space

Object Space Living Space

Room, space objects Consumables, fixed objects

Social, cultural Space

Interactions and associations

Working Space Society, transit Space

Transport, Logistics, access Social and Business communities In place, complementary, partner services


Physical Business Digital Business The Digital Business Model is releasing new kinds of value

The store space has

effectively “moved” to the

contextual spaces

Of social gatherings, rooms,

and objects that it serves

The Digital Enterprise

is a very different

Mind set and supply

Chain business model

This movement is

towards the creation

of digital workspaces These are enabled

by Digital Culture, organizational

and technology


Outcome based Economics and Digital monetization mechanisms

OUTCOMES

Digital

business

MECHANISMS METRICS

Enterprise Operational Customer

Outcomes

Brand Awareness

o Lifestyle

o Consumer choice

o Spontaneous purchase

Delivering right product to

market

o Product portfolio mix

o SKU packaging

o Pricing and bundles

Changing consumer tastes

o For example, Sugar

reduction

Sustainability

o CO2 reduction,

reusable materials,

waste reduction

Corporate Social

Responsibility

o Support for Societal

needs and events

Supply chain efficiency

o On-time delivery

o Planned Maintenance,

workforce skills,

automation

Partner network collaboration

o Outlets, Kiosks,

Vending machines

o Partner revenue

performance

Consumer Outcomes

“I want a product that fits

my lifestyle”

o Personal lifestyle

demographic match.

For example “social

friends, my sports,

fun time”

“I want to choose a product

packaging that fits my

lifestyle.

o For example “small

bottle container for

sports or utility bags”

“I want products that meet

my values”

“I want a product that is

sustainable”

“I want environmentally

friendly products

”I want products when and

where I want to purchase

and consume”

Innovation, scaling, Adoption digital mechanisms

Revenue., growth, profit, new markets, EPS,..

Protect Value, Release, grow value,


At PA Digital Business we move this to the full Ecosystem a Digital Society and Digital Economy perspective

UX

CX

Digital Workspace

Design

Digital Ecosystems

INCREASING IMPACT ON MONETIZATION & VALUE

INC

RE

AS

ING

IM

PA

CT

OF

DIG

ITA

L T

HIN

KIN

G

Contextualization

Situational A

ware

ness

FROM SOLUTIONS TO BUSINESS VALUE THINKING

How industries

work…


DIGITAL VALUE D

igita

l Space

Desig

n

Traditional Systems

Design Thinking

Digital Business

Design

Before Thinking about product

Thinking about product

After consuming product

Selecting Product

Purchasing Product

Before Thinking about product

Thinking about product

Selecting & Purchasing Product

After consuming product

Before Thinking about product- Incentives

Selecting & Purchasing Product

After consuming product & Incentives

Online Purchase coupons 3rd party Marketplace store

Promotional events – lifestyles Discounts incentives Faster ordering Faster payment Faster delivery X reduce time wasted X reduce wasted stock Repeat purchases, loyalty Cross brand purchases

Cu

sto

me

r Exp

erie

nce

De

sig

n

Business Technology

Design Thinking

Use

r Inte

rface

De

sig

n


DIGITAL VALUE Protect Value, Release & Grow Value, New Value

“Influence at a Distance” Digital Consumers

Digital Convergence

“Live marketing” &

Multi-sided marketplaces

Trust, Privacy, Sustainability

Infrastructure and connectivity

“Designed around You”

“Co-presence and social Intelligence” Employees, Partners,

Smart Assets, Track &

Trace…


So what data and data integration matters in Digital Business ?


• How does your business shape up in the digital economy

• What holistic considerations really matter in digital

thinking for your business and the role of data in the new

digital enterprise.

• Case studies of practical evidence of how to join up

business spaces with an integrated thinking approach

Agenda


Example of Restructuring of an Industry Model by Digitization


Digital Restructuring - Modularity


Competition moving to the Ecosystem level Yoo et al

Digital Value Ecosystem


Data plays a unique part in this Digital Economy era So what is the difference between Physical Data and Digital Data


Data Integration is more than a Master data management and Analytical Data separation. What about mobile data, ,meta data , social data , IP data…

Data of

Digital

Enterprise

MetaData of

Digital

Ecosystem

Connected Data

& Analytical

Insight Data

Actionable

Contextual

Data

Culture, readiness, type of skills, value & worth

Master Data Hosted Cloud

Master Data Transactional

Data

Mobile

Data

Analytical

Data

Personal Privacy

Data

Intellectual

Property

Data Social

Data

Network

Data

Device

Data Sensor

Data

Machine 2 Machine

(M2M)

Data

Partners and Supply chain


Data Integration of the Digital Business Model

Covered functions / features per product

Co

ve

red

ste

ps

of

pro

du

cti

on

/ d

istr

ibu

tio

n

Enterprise A | Product 1

Compare: Tilson/Lyytinnen/Sorensen (2010); Varian (2010); Yoffie (1997); Yoo et al. (2010)

Covered functions / features per product

Co

ve

red

ste

ps

of

pro

du

cti

on

/ d

istr

ibu

tio

n

Enterprise B | Product 2

Enterprise

F |

Product 6

Enterprise

E |

Product 5

Enterprise G | Product 7

Enterprise

D | Product

4

Enterprise H | Product 8

Enterprise

C | Product

3 Enterprise A |

Product 1


Data Integration of the Digitalization – a Modular Layered Architecture

31 Compare: Tilson/Lyytinnen/Sorensen (2010); Varian (2010); Yoffie (1997); Yoo et al. (2010)

“modular-layered architecture”

Examples: SaaS, E-Book Covered functions / features per product

Co

ve

red

ste

ps

of

pro

du

cti

on

/ d

istr

ibu

tio

n

Enterprise B | Product 2

Enterprise

F | Product

6

Enterprise E

| Product 5

Enterprise G | Product 7

Enterprise D |

Product 4

Enterprise H | Product 8

Enterprise C |

Product 3 Enterprise A | Product

1

Content Layer

Service Layer

Network Layer

Device Layer

Logical Transmission

Physical Transport

Logical capability

Physical machinery


Conclusions

Data of

Digital

Enterprise

MetaData of

Digital

Ecosystem

Connected Data

& Analytical

Insight Data

Actionable

Contextual

Data

Digital

Services

Culture, readiness, type of skills, value & worth


If you want to know more about Digital and PA Consulting please contact us

“ We believe that there is much more to digital transformation then mobile apps and big data

alone. Whilst these might make an incremental impact, it is revised propositions, new

operating models and a digital mind-set that will enable organizations to survive and thrive in

the modern marketplace. “

Find out more about our views on digital:

• Visit out digital innovation hub http://www.paconsulting.com/digital-insights/

• follow us @GoDigitalPA


• Or get in contact or Digital Solutions experts at Digital Solutions PA Consulting


PA Consulting helps organizations reach their digital destination


















August 2015 Building the Digital Economy

http://www.palgrave.com/page/detail/Building-a-Digital-

Enterprise/?K=9781137477705

http://www.palgrave.com/page/detail/Building-a-Digital-Enterprise/?K=9781137477705









An accomplished business technology leader who has worked for

many fortune 500 companies in over 20 countries, across private and

public industry sectors. Mark is currently a Digital Expert at PA

Consulting with experience in leadership innovation and strategy for

digital platforms, big data, cloud computing, interoperability, metrics

monetization and cyber security. He has worked at board level in

strategic vision and corporate planning for Business and digital media

solutions in companies including media, telecoms, aerospace, retail ,

travel , city, central and local government, logistics. Healthcare and

financial services.

Mark is recognized international thought leader, speaking at

internationally including the EU Commission and several Industry

conferences and live TV and Radio and digital media including BBC,

Sky, FT, BBC.com and widely syndicated globally. He is an author of

two books on building Digital Enterprise for Palgrave macmillan Digital

Economy series and a co collaborator on several International

Standards with ISO and The Open group. He is also Professor of

Practice in Information Systems Management and Innovation at

Warwick Business School.

Mark Skilton

Mark Skilton

Digital Expert

PA Consulting

[email protected]

@mskilton

+44 7808039240

Role of data integration in enabling your digital business march 18 12 noon v1

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