Digital Transformation: Innovate, Integrate and Incorporate Emilie Ditton

Research Director, WW Mining and Asia Pacific Energy Insights

3rd platform has gone mainstream in ICT marketplace

3 Source: IDC ICT Spending Guide

(2P vs 3P for APJ), 2016

4

Lifting the Lid off Underground Mining Creating Visibility Transparency and Control

A Canadian mining

company

Brownfield gold,

copper and silver

mine in Bulgaria

Purchased in 2003

Investment was

based on achieving a

large margin

enhancement

6

Lifting the Lid off Underground Mining What they did

2x production, 0.5x costs: no increase in equipment

Integrating data, changing processes, interconnecting

decisions

Connecting Assets

Devices & People

7

Lifting the Lid off Underground Mining The three success drivers

Leadership Technology & Process

change Culture

Vision from the top

Focused on: -People

-Change management -Innovation DNA

Clear intent and strategy Avoid complexity Process change

Vendor engagement

What’s Next?

Digital transformation in Australia

Leading in 3D: Learnings from Dundee Precious Metals

Final thoughts

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What is digital transformation?

Leadership Transformation

Omni-Experience Transformation

Information Transformation

Operating Model Transformation

WorkSource Transformation

DX in Australia

DX will help

us compete

differently

48.9%

Information

DX is most

critical

79.9%

Open

innovation is

a focus

65%

The CEO

believes IT

will transform

the business

49%

IDC C-Suite Survey June 2016, AU n = 201

The CIO is

leading DX

efforts

86.3%

Aim for IT to

deliver

business

innovation

as a partner

79.9%

2%

46%

35%

13%

4%

DX WARY DX TACTICIANS DX EMBRACERS

DX CHANGE AGENTS

DX V IS IONARIES

But IT is Not Ready….

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Source: IDC, Leading in 3D Maturity Model Benchmark, 2016; n= 160 IT Executives, January, 2016

“Only 17% of IT

organizations

are effective

partners in DX”

9%

5%

COMMON IT ORGANIZATION BARRIERS TO LEADING DIGITAL TRANSFORMATION

People We do not have

enough people with the right skills

Culture We do not have a

risk taking, innovation culture

Legacy Systems

We have legacy systems to support that consumer our

efforts

Incentive Systems Our current

evaluation system does not measure us

on innovation

33%

23%

28%

2%

Source: IDC IT Executive Survey, Jan, 2016, n=94

Partnerships Our LOB peers do not perceive us as adding

value in DX

Leadership Our IT leadership does not have the

right vision

What Are the Barriers Blocking Your IT Organization from Moving Forward?

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The Three Hats We Need to Wear When Leading in 3D

13

Innovate with Business to Create a Digital Enterprise Goal: Create an innovative and digitally competent IT Organization Focus: IT organizational development, talent management & innovation process

Integrate Digital Capabilities with Enterprise IT Platform Goal: Create a reliable, scalable and secure digital infrastructure Focus: IT service management and enterprise architecture

Incorporate New Techniques and Technologies into IT Organization Goal: Create a flexible and optimized IT infrastructure incorporating new tech Focus: Vendor sourcing, changing management and process change

Innovate: IT’s goals and KPIs

“Create an innovative and

digitally competent

organization.”

Focus on IT organization

development and talent

management:

IT must be a partner to the

business fostering IT-enabled

innovation

Talent is key

Create an innovation culture

focused on outcomes and multi-

tier digital revenue streams.

14

Lessons from Dundee

Precious Metals: • Understand where it is you are

trying to get to. Have a vision.

• Engage in the ecosystem

• Creating new revenue streams

Integrate: IT’s goals and KPIs

Focus on creating stable

business services:

Broker, integrate and

orchestrate delivery of IT

services.

Implement cross functional

DX program management.

Deliver enterprise

applications

15

“Create a reliable,

scalable and secure

digital infrastructure.”

Lessons from Dundee

Precious Metals: • Innovation does not need to be

complicated.

• Collaborating across cross

functional teams

Incorporate: IT’s goals and KPIs

Focus on IT and business

service management as well as

vendor sourcing and

management:

Modernize infrastructure to

support digital organization.

Drive innovation while running

current IT environment.

Incorporate new skills into

existing IT organization.

16

“Create a flexible and

optimized IT

infrastructure.”

Lessons from Dundee

Precious Metals: • Put the foundation in place

• Create relationships with vendors

that are truly partners and deliver

value far beyond the contract

• This is a continuous process

For Success

It starts at the

top!

Partnerships

are critical

Look beyond

ROI metrics for

justification

Have a

roadmap.

Review

regularly

Fund from

efficiency

improvements

Process,

Process,

Process

@editton

www.idc.com

editton@idc.com

Emilie Ditton Research Director

WW Mining & Asia Pacific Energy Insights, IDC