Digitalization – what is this about! 2017-03-14
Why are some companies successful in their digital transformation and others not? Do you want to know the secret?
CIO plats a pivotal role in the corporate digital transformation The biggest challenge of CIO 2017 : The focus of CIO 2017 : • Digitalization of the company • Cloud Services (SaaS, IaaS, PaaS) Support corporate innovation Mobile Technology • • • Support corporate transformation • Modernizing old IT systems Source: IDG CIO 2017 report and IT Radar 2017 DEFINITIONS: IT Digitalization : A concept of using IT technology to digitizing IT FOCUS! business/customer processes with an internal perspective – increase internal Digitalization in capabilities and productivity. IT Digitalization is all about implementing new IT tradition business! services in Cloud, Business Intelligence/Big Data, Security, Business Systems (ERP), Internet of Things, Mobility and more. These are indirectly enablers to creating customer value. BUSINESS Digital Transformation: A concept of transforming the leadership and CHALLENGE! governance of the company or organization with an aim to optimize customer experience over time (unpredictable). Digital Transformation is about change in Transformation to leadership, culture, governance, agility to respond quicker to new trends and the digital business! customer behavior. Collaboration across boarders!
We need to understand the nature of digitalization from an external perspective to master the digital journey (Speed, agility & innovation) DIGITAL BUSINESS ! Trust & motivate Capabilities * Source: IDG CIO 2017 report **CSC CIO report 2016 All future business models Digital will depend on smart use of IT** WARNING! LOSING PROFITS (Productivity, stability) Command & Control ! Capabilities Traditional 31% of all companies have WARNING! a digitalization strategy* PHASING OUT OF MARKET TRADITIONAL BUSINESS Traditional Competitiveness Digital Competitiveness (high predictability: > 12 months) (low predictability < 12 months) Slow moving! Protected! Price & Quality! Fast moving! No loyalty! Experience! DIGITAL TRANSFORMATION DIAGRAM (Gillior, 2016)
In the end, digitalization is a leadership and organization challenge – mastering the forces of digital change Forces resisting change Forces driving change Internal: culture & leadership External: digitalization The Digital • Organizational Stress and Fatigue / FEAR New competitive landscape – Dilemma losing revenue and shares! Conservative, Passive and Misaligned Leadership • Market and Organizational unpredictability – no period • Sub-optimized digital capabilities – what is digital? stability. More frequent Disruptive trends. Protective, Political, Lack of Trust and Direction Low value-adding investments (not supporting NO loyal customers! • business/customer value creation) Non-Dynamic Organization Increased need for digital capabilities, innovation and • Slow steering – not able to react to new trends collaboration cross boarders No processes or structure to support change • The driving forces together create a fearful and The resisting forces together shape an stressful need for digital transformation – organization without the tools, leadership or starting now! motivation to change. “Organizations show the “80% of corporate same symptoms as people leadership do not understand with ‘burn out syndrome’. It is how to win the digital battle – all about people and a or where to start. They assert culture and leadership more control, stress and issue.” information”
Digital Transformation is easy with the right focus – leadership, capabilities and governance! Digital Leadership A leadership leading continuous change through motivating and Digital Capability coaching of employees. Taking The digital ownership of the digital challenge with capabilities must be digital awareness and taking right viewed from a decisions based own analysis of customer experience digitalization. and value perspective – not sub-optimizing IT but actually including the complete value Digital Governance chain. An agile management system enabling fast response to trends and challenges. Digital Governance is based on units and functions collaborating across boarders in a true value chain. How is your leadership, governance and capabilities aligned to the new digital pre-requisites?
My recommendation! • Understand the complexity and pre-requisites of your industry – and how it is influenced by digitalization (competition, customer behavior, etc.). Based the understanding on your own analysis and conclusions! • What are the expectations of business, executive leadership? Are these expectations aligned with ITs ambitions and plans? Understand the forces within your organization – what are the driving and • resisting forces? How to create right energy and momentum? • Bring in people “Digital SWOT Team” who have the right experience and knowledge to drive digital transformation, and deliver change and results – it is the best investment! A recommended first step is a Digital Stress Test to evaluate the digital performance in the digital arena. The Digital Stress Test identify strengths, weaknesses and bottleneck in the organization to master the digital industry and market (see next page).
Recommendation Digital Stress Test The offering leverage “best practice” method to evaluate the digital performance of the company or organization based on real-life digital scenarios. Where are the bottle-necks, unclear responsibilities and other weaknesses/strengths in running the digital company? 1 Digial Stress Test Details: 2 The Digital Stress Test (3 weeks work) will go through 10 different 3 4 Digital Scenarios digital scenarios and evalutate the performance from six dimensions 5 (process, decision making, speed, information, innovation and 6 7 motivation). The outcome is mapping, analysis and recommendation. 8 9 10 Process Decision making Speed Information Innovation Motivation Assessment Criteria
Contact information Hans Gillior – Senior Advisor/Digital Transformation Email: hans.gillior@sofigate.com Phone: 0768 643 778 Blog: hansgillior.wordpress.com
THANK YOU!!
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