who's disrupting our ict?

www.digitalfrontierpartners.com

Who’s disrupting our ICT?

Capitalising on Speed, Change & Disruption

May 2015

http://www.digitalfrontierpartners.com/



The growth of connected technology, ease of access to vast

amounts of information and the combined forces of social

change have created a new set of survival risks for

organisations and individuals. With the right response, the

opportunities are amazing.

The old rules of having scale, brand and financial strength

no longer assure a successful future. Adaptive

organisations and adaptive people present the best

opportunity to create value and sustaining success.

Now is a time of profound change

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In the past 10 years, 70% of the Fortune 1,000 companies have fallen off the list.

They were victims of accelerating change brought about by pervasive Internet connectivity, mobile devices that connect everywhere, disruptive digital innovations, disruptions due to new regulations, price wars, and rapid changes in customer behaviors.

Source: Forester 2013

Staying is business is an increasing challenge

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Source: Innosight, Executive Briefing, Winter 2012

Lifespans of top companies are shrinking. In 1958 the average tenure for a top company was 58 years. In 1980 it was 25 years. In 2012 this had narrowed to 18 years. More recent studies suggest this will further decrease to 11 years by 2020!

And the challenge is growing…

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In 2014, KPMG surveyed over 900 senior executives of US based multi-nationals

Source: KPMG Transformation Survey, Business Transformation & the Corporate Agenda. 2014.

In the US at least, change momentum is building

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Source: PwC - Future-proofing Australia’s workforce by growing skills in science, technology, engineering and maths (STEM) /April 2015

In the Australia, we’re far from where we need to be….

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• Customer expectations are changing faster than most large established businesses can adapt.

• The barriers to compete have fallen, therefore increasing the risk of unpredicted irrecoverable disruption.

• Many businesses take up digital capabilities as an extension to the current model but fail to to take full advantage through building a new digitised operating model.

• A focus on cost minimisation combined with a predominantly control bureaucracy is no longer sufficient to create the required value to fully compete.

• The business / IT divide is widening. This diminishes the ability to fully leverage technology to maximise value and growth.

• A bias to internally managed technology and data often limits the competitive advantages associated with today’s service-rich market place.

Source: Digital Frontier Partners Pty Ltd

The issues observed in many Australian organisations today

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An intersection of human and

technology forces(as never been seen

before)




Technology Business

•Web •Mobility•Apps•Social•Cloud •Analytics

•Adaptive organisations•Collaborative practices•Knowledge sharing •Product mindset•Customer centric culture•Value is a critical measure

The term ‘digital’ can mean many things. Think of it through two lenses….

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Organisations and

Employees

Consumers and

influencers

Technology

Information

A new currency for business success

Human ability combined with connected technology are the new business foundations

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Disruption of the ICT department

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“For 40% of the C-suite, streamlining the business process is the big issue; only 28% of CIOs agree”.

“One-third of CIOs, meanwhile, want IT to make product and service development a priority, but only 20% of the C-suite feel this is important”.

“Almost six in ten (57%) of the executives surveyed for this report expect their IT function to change significantly over the next three years; 12% predict a “complete overhaul”.

“As part of this change, 43% say their company will increasingly use IT as a commodity service to be bought as and when needed.” (To put this in context, consider accounting, human resources or any other business function: could any of these reasonably imagine such radical change in the next few years?)

Source: The C-Suite Challenges IT: New Expectations for Business Value: A joint study by Dell & The Economist Intelligence Unit, 2012

Starting from the top, business and ICT leaders don’t see eye to eye…

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The business / ICT divide – there is an answer

Source: The C-Suite Challenges IT: New Expectations for Business Value: A joint study by Dell & The Economist Intelligence Unit, 2012 13




Marc Schuster of GRP Partners observed that it now costs 1000x less to build a comparable business than just 10 years ago!

Source: Information Technology Commoditisation, Innovation & Strategic Insights, 2015

What were once competes are now merely qualifiers

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The predictable future, if we don’t

sufficiently change…

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A blueprint for ICT success




Move from technical know-how to business thought leader & enabler

As technology commoditises, its

competitive significance diminishes, and

the advantage shifts to those who can

break through the noise of increased

competition.

The book someone buys from Amazon.com

is a commodity. But the selection, fast

shipping, easy return policy, and

dependability also add value for the

customer. This is value chain

augmentation.

1. Switch the emphasis over time

2. Create Value, not Stuff

Source: Information Technology Commoditisation, Innovation & Strategic Insights, 2015

A new role for the ICT department

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Think & act digital

1. Think like a geek

2. Carve out time to look beyond

your company

3. Behave like your customer 4. Surround

yourself with the

right people

5. Remember

it’s 99 percent

perspiration

Source: McKinsey Insights & Publications, November 2014

ICT professionals need to become digital in their thinking

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Progressives Leaders

Beginners Disciplined

Leaders

hip

&

Cult

ure

Digital Execution Maturity

Establish organisation wide digital capabilities aligned to targeted maturity levels

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Being digitally enabled starts with leadership

Source: Digital Frontier Partners Pty Ltd20




1. 2.

3. 4.

A blue-print for enabling these game changers links to 10 disrupter capabilities





3. Workforce Design

2. Adaptive Delivery

2. Aligned culture

3. ‘As-a-Service’

4. Digital Channels

Digital Business capabiliti

es

Human Effective

ness

Enabling Continuously

AdaptingOrganisations

4. AdaptiveWorkforce change

1. High performance leadership

1. Digital Strategy

A successful digital transformation requires an aligned mix of capabilities





1. Get clarity on what ‘you’ believe is needed.

2. Open up new conversations.

3. Make small steps and show others what’s possible.

4. Research, learn and be inspired.

5. Don’t let hierarchy be an excuse.

6. Adopt a blueprint that you can align with.

7. Selectively leverage expertise to assure success.

7 steps to start a movement

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• The forces of disruptive change place businesses and individuals at greater risk than we’ve ever seen before.

• Australian organisations and a large proportion of jobs are at risk if we don’t make the necessary changes.

• The intersection of technology advancements and human ability represent the combined transformative opportunity.

• The emphasis of the ICT department must shift from technical know-how to business thought leader / enabler.

• A business / ICT aligned blueprint, focused on value creation is needed.

So in summary….

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The first step starts with you!

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Digital Business

capabilities

Human Effectivene

ssEnabling

ContinuouslyAdapting

Organisations

About us: we bring the digital capabilities and human elements together

We uniquely help established organisations transform the human, technical and process ‘eco system’ to enable new levels of adaptability & sustainable growth.

We believe that the human equation is the single biggest determinant of success for businesses, for individuals and for Australia.

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who's disrupting our ict?

Leadership & Management