building a digital enterprise competing on capabilities dynamic cio research presentation
DESCRIPTION
Enterprises are no more in experimentation mode as far as digital is concerned. The digital technologies, and digital transformation strategies seem to be taking the center stage in the enterprise mindset. At a time when businesses doing e-commerce show a very healthy growth across Asia and other parts of the world, digital transformation is in the heart of it all. If corporations – small to medium to large – have to take the real advantage of the digital revolution, they need to come out of their apprehensions about the digital technologies and look at a total digital transform. Investments in the digital infrastructure and commensurate focus on leadership, strategy and culture can reap huge benefits for the enterprises. Becoming a Digital Enterprise can provide market-winning capabilities an enterprise may require to compete. Kapil Dev Singh is a sought-after authority on Organization Change and Development. He regularly advises CXOs on leadership development in the context of their roles and business needs of their organizations. He is the Founder of Coeus Age, which brings new age perspectives on Change Consulting, Change Leadership and Change Technology. Kapil has over two decades of rich experience and headed IDC in India for close to 8 years as a Country Manager. He is an Engineer, and an MBA. He is also a doctorate from Management Development Institute, Gurgaon, India. His doctoral thesis dealt with the phenomenon of CIO Role Effectiveness.TRANSCRIPT
Competing on CapabilitiesBuilding a Digital Enterprise
&
A Research initiative of
Kapil Dev SinghCoeus Age
The Research
What is a Digital Enterprise? How to Operationalize the
Definition of a Digital Enterprise? Understanding Capability?
OBJECTIVES
DESIGN
30+ face to face Interviews Secondary Research/ Literature
Review 116 CIOs’ Survey
Put Capability in the Centre
Social, mobile devices and apps, analytics/ big data, cloud, open standards,
RFID/ sensors , semantic web, interoperability, web
services, middleware, other new technologies
Social shifts leading to empowerment of youth, global shifts, connected and content consuming generation, aspirational, value seeking, power defiant
Many yet fleeting opportunities, collaborations and weak ties,
pressure on revenue, cost challengers, new aggregators,
digital value chain
Customers
Institutionalized Entrepreneurship
Digital Enterprise
Capability
Stable Enterprise
EnablingLeadership
DigitalInfrastructureEmpowered
People
Digital Strategy
Digital Boundary
Communication/ Collaboration
Digital Culture
Enabling Mechanisms
Performing and Innovation culture
Processes Build Capability
Relevance, Awareness, Leverage and Imitability
Capabilities are- Processes (as the building blocks)
- Competitive success on transforming key processes into strategic capabilities
- Strategic investments in support infrastructure that links SBUs and functions
- Champion of a capability based strategy is the CEO
Intentions
Capability
Outcomes
New Product/ Service Development & Differentiation
Customer Centricity Cost Leadership Change Readiness Leadership Development
7 Aspects Define a Digital Enterprise
Institutionalized Entrepreneurship
Digital Enterprise
Capability
Stable Enterprise
Digital Leadership
DigitalInfrastructure
EmpoweredPeople
Digital Strategy
Digital Boundary
Communication/ Collaboration
Digital Culture
Enabling Mechanisms
Performing and Innovation culture
Digital Market Place/ Value Chain
1
2
3
4
5
6 7
Customers
Digital Enterprise as the Engine of Capability
Digital Enterprise is an IT driven business model created either in response to the emerging digital market place and digital value chains or with the desire to create such shifts or both
The Digital Enterprise is built upon the use of IT to automate the processes (both internal and external) to create a digital boundary enabling all stakeholder interactions. This also creates immense amount of information to be consumed and acted upon
The automational and the informational side of a digital enterprise is converted into a transformational drive through the right digital leadership, a fitting digital strategy and a supportive digital culture
Digital Enterprise thrives upon digital capabilities to compete in the market place, which requires an ‘inside-out’ view of strategy to compliment the ‘outside-in’ view
Digital Enterprise is built upon an agile and responsive digital infrastructure to support the automational, informational and the transformational drive
Digital Enterprise Framework
Digital Leadership
Digital Strategy
Digital Boundary
Digital Culture
Digital Infrastructure
Digital Capability &
its Leverage
Digital Market Place/ Value Chain
116 Enterprises
Low Digital Score
Medium Digital Score
High Digital Score
18%
51%
31%
Be the First Mover
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. IT savvy Customers
2. Customers willing to transact online
3. Competitors use IT to compete
4. Competitors invest significantly on IT
5. Players from other industries are entering
6. The distributors are IT savvy
7. New IT based distributors emerging
8. Suppliers in our industry are IT savvy
9. New IT based supply intermediaries emerging
10. Institutions promote use of IT
Response Low Medium High
Respond to Others 33.3 10.2 5.6
First Movers 14.3 33.9 52.8
Competitive Market 52.4 54.2 41.7
New Digital Business 0.0 1.7 0.0
116 Enterprises
Generate CXO Pull
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. CEO’s participation and guidance
2. CXOs’ participation and guidance
3. Pull for IT projects from the users
4. Cordial relationships between IT and Business
5. No power struggle regarding IT
6. Agreement on CIO’s role
7. Adequate IT budgetsLow Medium High
3.54.8
5.9
116 EnterprisesOn a 7 point scale
Create Digital Boundary
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. Core Business Operations2. Supporting Operations3. Finance & Accounts4. Business Planning, Demand Forecasting, Other
Management Processes5. HR & Admin.6. Purchase7. Sales/ Marketing/ Customer Services8. Inter-organizational processes with the customers9. Inter-organizational processes with the suppliers 10.Inter-organizational processes with the
distributors/ dealers11.Inter-organizational processes with external
institutions12.Inter-organizational processes with business
partners
116 Enterprises
10%= transactions are completely manual and very low level of digitization
30%= transactions are generally manual with some isolated digitization
60%= transactions are generally digitized with some manual intervention
90%= transactions are completely digitized with very low of manual intervention
Low Medium High
29%
51%61%
Define New Structure & Architecture
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. The business strategy clearly indicates the role of IT
2. The IT strategy is developed in concurrence with the business strategy
3. The IT strategy is developed using inputs from all concerned
4. Specific roles and responsibilities to support the business and IT strategy are well defined
5. The governance structure to support the IT strategy implementation is well defined
6. The governance structure to support the IT strategy implementation is well practiced
7. The processes and practices to support the IT strategy implementation are in place
8. Enterprise Architecture Defined and Implemented
116 EnterprisesOn a 7 point scale
Low Medium High
4.05.5 6.2
Skillfully Leverage Information
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. Business decisions are generally based on facts, with or without IT
2. There is adequate level of collaboration among the employees, groups and functions, with or without IT
3. The top management exploits the information available from the enterprise IT system to take decisions
4. There is one instance of any information available from the enterprise IT system
5. The top management encourages middle and junior managers to participate and use information from the enterprise IT system
6. The employees participate in IT enabled processes and transactions
7. The employees leverage the information available from the enterprise system
8. The employees generally talk positive about their experience with IT
9. The meetings and discussions often use information available from the enterprise system
10.The employees are skilled to identify the right information and use it effectively
11.IT has created collaboration among employees, groups, functions
12.The partners/ suppliers participate in IT driven processes`13.The partners/ suppliers generally talk positive about their
experience with IT14.The customers generally talk positive about their
experience with IT
116 EnterprisesOn a 7 point scale
Low Medium High
4.05.4 6.0
Build an Agile IT Infrastructure
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
1. IT planning and management processes2. Regular update of IT management policies and processes3. Adequate IT infrastructure (computing, storage and
networking)4. Consolidated, rationalized and optimized data centre5. BCDR site outside the organizational premises6. Adequate IT security infrastructure, processes and policies7. New generation technologies underlying the IT infrastructure8. Complete suite of enterprise applications9. Complete range of supplier facing applications10.Complete range of customer facing applications11.Applications well integrated within the enterprise boundaries12.Enterprise applications well integrated with external
stakeholders’ (partners, suppliers, banks etc.) systems13.New generation technologies underlying the enterprise
applications14.Multiple digital channels for the customers (web, mobile apps,
call centre)15.Multiple digital channels for the partners & suppliers (web,
mobile apps, call centre)16.Architecture defined at data level17.Architecture defined at application level18.Architecture defined at technology level19.Architecture defined at communications level20.A unified communications technology platform21.IT skills development and training processes22.New technology identification and development processes23.BYOD policy
116 EnterprisesOn a 7 point scale
Low Medium High
3.75.3 5.9
Invest in Catalyst Technologies
Server VirtualizationNetwork Optimization
Enterprise PortalVideo/ Web Conferencing
Web ServicesStorage Virtualization
Content and Document ManagementIT Workflow Management
Web PublishingBusiness Process Management
Application ModernizationData Management Platform
MiddlewareServices Oriented Architecture
Storage Defined StorageDesktop Virtualization
Software Defined NetworkNoSQL Database
RFID/ Sensors
1.0 2.0 3.0 4.03.1
3.0
3.0
2.9
2.9
2.9
2.9
2.8
2.8
2.7
2.7
2.6
2.5
2.5
2.2
2.2
2.1
2.0
1.9
Neither Owning/ Nor Planning
Owning and Planning
116 Enterprises
Use Core and Catalyst Technologies to Build
6 Foundation Layers
• Information, Aesthetics, Access, Speed Experience Layer
• Digitized, Secured, Dynamically RetrievableDocuments Layer
• Automated, Agile, Managed , Contextualized Process Layer• Integrated, Open, Managed, Optimized,
Orchestrated Application Layer
• Secured, Quality, RationalizedData Layer• Automated, Consolidated, Standardized,
Optimized, Virtualized IT Infra Layer
Deploy SMAC+ Technologies
Neither Owning/ Nor Planning Owning and Planning
Mobile Applications
Business Intelligence
Mobile Apps
APIs
Infrastructure on Cloud
Application on Cloud
Mobile Devices Management
Platform on Cloud
Enterprise Social Platform
Mobile Platform Middleware
Big Data
Business Processes on Cloud
Social CRM
Social Analytics
Cloud Orchestration/ Broker
1 2 3 42.9
2.8
2.8
2.6
2.5
2.5
2.4
2.4
2.2
2.1
2.1
2.0
1.9
1.9
1.8
116 Enterprises
The SMAC+ Journey
Move from Casual Flirting to Serious Performing
First experience with SMAC+ by adopting on a
piece-meal basis. Mostly at the
periphery, these are low hanging
fruits and isolated initiatives. The exuberance,
however, is high.
The flirting with individual elements of
SMAC+ and the resulting experience and learning often
evolves into focused build up around one or more elements.
However, the build up remains largely
separate and isolated
The maturity in more than one elements of
SMAC+ and the resulting learning
prompts enterprises to look at converging them together. E.g. how mobility and
social CRM or cloud and analytics converge
A highly converged SMAC+ platform also
means that the underlying IT also has evolved to support it.
A new enterprise architecture, a
matured IT base, digital leadership,
strategy, culture and skills sets are natural allies for SMAC+ to give performance
benefitsFlirting
Building
Converging
PerformingDigital Infrastructure
Experience
Applications
Data
IT Infrastructure
Document ManagementProcess
Information, Aesthetics, Access, Speed
Digitized, Secured, Dynamic Retrieval
Automated, Agile, Managed , Contextualized
Integrated, Open, Managed, Optimized, Orchestrated
Secured, Quality, RationalizedAutomated, Consolidated, Standardized, Optimized, Virtualized
Identify the Limiting Factors
Flirting
Building
Converging
PerformingDigital Infrastructure
Experience
Applications
Data
IT Infrastructure
Document Management
Process
Information, Aesthetics, Access, Speed
Digitized, Secured, Dynamic Retrieval
Automated, Agile, Managed , Contextualized
Integrated, Open, Managed, Optimized, Orchestrated
Secured, Quality, RationalizedAutomated, Consolidated, Standardized, Optimized, Virtualized
Limited by Silos or byWeak Foundation
Limited by Focus
Limited by Leverage
Can You Reverse the Pareto?
Flirting
Building
Converging
PerformingDigital Infrastructure
45%
37%
14% 03%
116 Enterprises
Low 61.9% 28.6% 9.5% 0.0%
Medium 42.4% 49.2% 8.5% 0.0%
High 41.7% 22.2% 27.8% 8.3%
Strategically Exploit Digital Capability
Capability and its Strategic Exploit Low Medium High
% % %
No Unique Business Capability 14.3 10.2 0.0
Unique Business Capabilities but not Leveraged 57.1 23.7 19.4
Unique Business Capabilities for Temporary Edge 14.3 30.5 25.0
Unique Business Capabilities for Sustained Edge 14.3 35.6 55.6
IT and Capability Low Medium High
% % %
Minimal IT Impact 0.0 1.7 2.8
Isolated Processes Made Efficient 30.0 3.4 2.8
Multiple Processes Made Efficient 30.0 11.9 11.1
Process Capabilities in Certain Fns. 25.0 20.3 2.8
Process Capability at the Orgn. Level 10.0 35.6 50.0
Revenue Enhancement 5.0 27.1 30.6
1
2
116 Enterprises
Digital Market Place/ Value Chain
Digital Leadership
Digital Boundary
Digital Strategy
Digital Culture
Digital Infrastructure
Digital Capability
Putting Capability at the Centre of the Enterprise
1. What are your organization’s capabilities?
Structures and Practices
Culture
Leadership and Strategy
Strategy
(Change) Leadership
Technology
2. Is your organization exploiting its capabilities?
3. Is your organization aware of its capabilities?
4. Are these capabilities in synch with the market realities?
5. What current capabilities does the organization need?
6. How to build these capabilities?
7. How to develop the 6 defining aspects to build the required capabilities?
Influence Change! Digital Enterprise is a business
paradigm and a much broader concept than currently understood and appreciated
The Digital Enterprise Framework and the instrument can help an organization map its current digital reality
Focus on Organization Capability as the central theme, answer the 7 questions
Thank You !Kapil Dev Singh
Founder, Coeus Age
98117 71187 | [email protected]
www.cioleadingchange.comwww.emergententerprise.com
#dskapil
&
A Research initiative of