The People Side of Digital Transformation

© 2016 Information Services Group, Inc. All Rights Reserved.

Ola Chowning and Randy Geoghagan

The People Side of Digital Transformation

© 2016 Information Services Group, Inc. All Rights Reserved 33

Agenda1.The digital agenda is driving operating model transformation2.Operating model change = people change3.Introducing TracePoint4.How to transition to delivery—observations and improvements5.Digital transformation—observations and improvements


Multiple sourcing transitions are changing everyone’s roles and responsibilities.

New technology is changing how clients and providers get work done.

The as-a-Service model makes IT a broker; client and provider are

both learning.

Legacy still exists!

Agile and DevOps are driving decision making down the chain; collaboration > process.

The digital agenda is driving operating model change.


Enterprise

Processes Cloud

CustomerAnalytics

Collaborative Product

Innovation

BusinessInsights

CustomerExperience

Product Analytics IoT

Automation

Platforms

Access Channels

Social MediaCollaboration

@@Partners

Customers

Suppliers

Employees

Operating model change = people change

New roles & responsibilities New skill sets

New processes & work flows Coordinated change


TracePoint Consulting Niche consulting firm acquired by ISG in May 2016 Focused service offering in 3 areas:

Organizational Change Management Communications (project level) Custom End-User Training and Education

Broad experience delivering OCM to companies with 1,000-150,000 end users

Seasoned team of professionals with average 18.5 yrs of experience in OCM

Deep relationships with largest enterprise software vendors (SAP, Infor)


OCM works for diverse industries and companies:

AerospaceAutomotiveBiotechnologyChemicalsConsumer ProductsEducationFood & BeverageHealthcareInsurance

Life SciencesManufacturingOil & GasPharmaceuticalsPublic SectorRetailUtilities


Change management drives success.

Elizabeth Davis

Ola and Randy, I am trying to tighten the copy as much as possible. Please review the copy on the right to make sure it still says what you mean. (I put your original copy in the speaker notes.) Not sure what kind of success you mean by the first bullet...can you be more specific?

Ola Chowning

Randy - this now doesn't feel right on the right side, I'll let you fix


Findings from ISG survey:

Fewer than 60% of all transitions include formal OCM.

0.0%20.0%40.0%60.0%

OCM Elements Performed


Transition challenges: Clients and provider teams don’t understand the end-state vision.

Clients continue to perform work that should be performed by providers.

Clients continue to manage the “how” instead of the “what.”

Client is not prepared for integrated governance or new activities required by the new delivery model.


How to address these challenges? Set expectations for how the client’s

role will change.

Clarify the client’s understanding of the operating model.

Ensure the transition team understands the future-state roles and responsibilities.

Align the provider and the client.


Challenges of digital transformation Lack of understanding in how the new digital

capability impacts the legacy operating model Changing client and provider roles or skills Unclear expectations from client on provider’s role

in shifting to legacy Others?


How to address these challenges? Proactively educate the client on the digital

solution. Educate the client about the changes necessary to

their operating model, roles, skills. Educate the provider’s legacy delivery staff about

the digital transformation and the changes to their delivery.

Help clients understand the relationship between business objectives and digital technologies.

Employ appropriate levers to support the shift to digital while still delivering on legacy.

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The People Side of Digital Transformation

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