Digital Business Edge

Copyright © 2014 Accenture All rights reserved.

In the next 45 minutes …

Humanity will:

• Send 9 billion emails

• Buy $3.6 million on

Amazon.com

• Listen to 2,745 hours

of music on line

• Spend 624 years on

Facebook alone

• Download more than

18,000 apps

• Conduct 90 million

searches on Google

Copyright © 2014 Accenture All rights reserved.

A digital business uses technology to innovate, capture and create new sources of growth and results.

Digital (adj.) increasing information intensity and

connectedness of customer and business

resources.

Digitize (verb) applying technology to customer

and business resources.

Digital Business (noun) an organization that

incorporates digital technology to create

revenue and results via innovative strategies,

products, processes and experiences.

Copyright © 2014 Accenture All rights reserved.

Becoming a Digital Business is different from digitizing marketing or operations

Efficiency

Results

Today

New &

New

Digitize Marketing

or Processes

New &

Old

Digital Business

Feeling Digital

Applying new

technology to old

operations

Being Digital

Combining new

technology with

new operations

Copyright © 2014 Accenture All rights reserved.

Digital information and connections commoditize products and disrupt traditional value chains.

Supplier Produce Sales &

Distribution Customer

Copyright © 2014 Accenture All rights reserved.

Digital Creates dynamic services based concentrated value chains.

Services

Services

Services

Customer Services

Supplier

Produce

Sales &

Distribution

Customer

Supplier

Produce

Sales &

Distribution

Customer

Supplier Produce

Sales &

Distribution Customer

Supplier Produce

Sales &

Distribution Customer

Copyright © 2014 Accenture All rights reserved.

What does it mean to digitalize the business?

Standalone

Multi-

channel

Connected

Marketing

Digital

Efficiency Engagement

Digital

Premium

Customer

Experience

Customer

Interaction

Electronic

Commerce

Online

Catalogue

Demand Generation and Fulfillment

Relationships and Development

Copyright © 2014 Accenture All rights reserved.

Executives find themselves at a cross roads when it comes to digital.

Digital

Business

Digitize

Marketing

Digitize

Processes

Copyright © 2014 Accenture All rights reserved.

Digital Business Principles and Imperatives

• Put Outcomes over

Processes

• Start and Finish

Outside-In

• Build Platforms

• Organize for Change

• Customer Experience

• Cross Channel

Excellence

• Operational Simplicity

• Execution Agility

Principles Imperatives

Copyright © 2014 Accenture All rights reserved.

Outcomes over Processes

Copyright © 2014 Accenture All rights reserved.

Start and finish from the outside-in

Digital

Business

Outcomes

Current

Capabilities

Infrastructure

Information

& Processes

Analytics

& Big Data

Digitized

Processes

Cloud

Platforms

Mobile & Social

Solutions

Copyright © 2014 Accenture All rights reserved.

Build Platforms

Digital

Agility

Local

Flexibility

Business

Functions

Standardized

Operations

Shared

Services

Many from

Many

Many are the

same

One out of

many

Many out of

one

Adapted from Ross and Weill, Enterprise Architecture as Strategy. Harvard Business School Press. 2006.

Page 72.

Business

Platform

Digital

Participation

Digital

Premium

Technical

Consolidation

Technical

Implementation

A Business Platform is the collection

of resources that integrate, manage

and apply information and

automation to digital outcomes.

These resources adapt to multiple

experiences without rigid

specialization

Copyright © 2014 Accenture All rights reserved.

Digital Business Principles and Imperatives

• Put Outcomes over

Processes

• Start and Finish

Outside-In

• Build Platforms

• Organize for Change

• Customer Experience

• Cross Channel

Excellence

• Operational Simplicity

• Execution Agility

Principles Imperatives

Copyright © 2014 Accenture All rights reserved.

These principles and imperatives define a digital business roadmap

Customer

Experience

Cross

Channel

Excellence

Operationa

l simplicity

Execution

agility

Digital Business

Digitize Processes

• Add analytics based

contextualization

• Increase digital and

personalized marketing

• Innovate products into

information services

• Raise customers human

ability and capacity

• Identify “Prime Value”

Processes.

• Consolidate similar

services and functions

• Automate processes and

activities

• Consolidate information

and systems

• Design from the

customer’s perspective

• Build business and

technology platforms

• Consolidate information

& management systems

• Implement an active

reuse program

• Close the sales, service

and product gaps.

• Separate supporters

from creators

• Lead from outcomes and

transparency

• Upgrade governance

and management

• Consolidate channel

operations

• Deliver same response

regardless of channel

• Establish omni-channel

consistency

• Raise contact center

skills and efficiencies

• Contextually aware

customer service

• Second moment of truth

support and service

• Increase access to sales

and service channels

• Reduce negative

outcomes

Digital Marketing

Copyright © 2014 Accenture All rights reserved.

Becoming a Digital Business is different from digitizing marketing or operations

Digitize

Operations

Internal Focus

External

Focus

Digitize Processes

Revenue

Margin

Digitize

Channels

Digitize Marketing Digital

Business

Digitalize

Business

Models

Copyright © 2014 Accenture All rights reserved.

Three Recipes for Digital Business Success

Where will you write the digital future of your organization?

Product

+ Connections

= Service

Service

+ Information

= Experience

Experience

+ Platform

= Outcomes

Blackboard:

Digitizing Internal

Operations

Whiteboard:

Digitizing External

Marketing

Tablet: Creating New

Value Propositions