winning in the digital economy a cio’s...

Christine Ashton, SAP S/4HANA CloudMarch 01, 2017

Winning in the Digital EconomyA CIO’s Perspective

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

My Story

Global CXO Advocate

• CIO/CTO/CDO FBCS, CISSP, C. Sci, C.Eng

•Transforming and scaling IT/IS for global operating models

•Business, culture and IT Transformation to accelerate delivery of Digital Business

• IT strategy to drive commoditisation and innovation (BYO, EAAS, Enterprise Cloud and PAAS)

•Major enterprise system implementations and project turnarounds (ERP, CRM, Infrastructure) to support rapid growth

•Building strategic partner 'market places and innovator eco-systems

Passionate about technology as an enabler and business value creator


Today’s Talking Points

• What’s the impact of the ‘booming’ digital economy on business survival?

• What does digital transformation mean for current ways of working in business?

• How must an organisation leverage technology to address the challenges?


Grow or Go: Company Survival Rate

Value For Customers

Opportunities For Employees

Organizational Health

SOURCE: McKinsey Growth & Innovation Service Line; CPAT

85% 32% 12% 8%

In 1983 After the 1st decade1983-93

After the 2nd decade1993-2003

After the 3rd decade2003-13

Number of companies that remained in S&P 500 over 3 decades and had revenue-growth rates outpacing GDP growth


Company Survival Rates Are Being Disrupted

Value For Customers

Opportunities For Employees

Organizational Health

SOURCE: McKinsey Growth & Innovation Service Line; CPAT

85% 32% 12% 8%

In 1983 After the 1st decade1983-93

After the 2nd decade1993-2003

After the 3rd decade2003-13

Number of companies that remained in S&P 500 over 3 decades and had revenue-growth rates outpacing GDP growth

“The average lifespan of an S&P 500 company has decreased by more than 50 years in the last century, from 67 years in

the 1920s to just 15 years today”


Disruption isn’t Disruption anymore - It’s The New Normal

“We are a luxury mobility company Re-imagining what a car can be”

• In 2014 we began engineering an electric vehicle of our own design

• One unbounded by the conventions of internal combustion or heritage

• One that takes full advantage of the advanced technologies driving dramatic shifts in the mobility experience: electrification, automated driving, connectivity and ridesharing

• Now, as we prepare to launch our first vehicle


Business Basics In a Digital World

Access to real-time resource scheduling to re-direct mobile teams, supply chain and ecosystem resources in real-time

.

Integrated real time view of business to track results of changes and course correct

As it happens visibility into product and customer profitability, daily sales outstanding and inventory

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 8Customer8

Business Disruption Is Happening On 3 Levels

Internal Change

Disruption

© 2017 SAP SE or an SAP affiliate company. All rights reserved. 9Customer9

Digital Readiness Requires New CapabilitiesDifferentiate andexcite Customers

OperationsRun Efficiently

Re-imagine,Innovate

and Disrupt

Internal Change


• Automation of repetitive tasks• Reduce costs by adopting standard

set of solutions within an integrated ecosystem

• Resilience - Silent Running’ with security and privacy built in

• Easily access new tools & applications available in the wider ecosystem;

• Reduce infrastructure costs by effective hosting/ storage options,

• Bill of IT - Transparency across everything

• Meta product data is king. Leverage data about how your products are used

• Top notch product and technology talent

• Collaborative approach to suppliers, JVs and start-ups

• State of the art technology and environments that increase the speed of concept to production

• Fast reaction times and data to know when things aren’t working

• Faster time to engage and ability to scale up quickly in the market

• Connect to people, devices, big data, business networks and applications in real time

• Requires real-time decision making and supply chain agility

• Close Business/IT interaction and planning requires an ‘agile approach’ and continuous deployment

EXPERIMENT - Test –out Next generation offerings, 3-7 year horizons

SCALE - Platforms and ecosystems for knowledge, interaction and collaboration

Priorities

Activity

Differentiate and excite Customers

OperationsRun Efficiently

Re-imagine,Innovate

and Disrupt

Success Is Linked To How We Re-Allocate Resources

COMMODITIZE – variablizecosts , reduce footprint and cannibalize legacy


‘Fit to Standard’ is key in any ‘Shift Right’ digital strategy

Gartner

70% of tasks are automatable with the next generation technology.

McKinsey 2016


Automation - Machine Learning aids Invoice Matching


Streamlined Procure to PaySourcing and Contract ManagementOperational ProcurementInventory ManagementInvoice and Payables Management

Accelerated Plan to ProductBasic Production PlanningBasic Production ProcessingInventory ManagementMaintenance Management

Optimized Order to CashOrder and Contract ManagementInventory ManagementReceivables Processing

HR ConnectivityEmployee Central Connectivity

Talent Management

Core FinanceAccounting and Closing OperationsCost Management and Profitability AnalysisTreasury and Financial Risk ManagementFinance Operations > Receivables Management

Project ServicesContract to CashProject ManagementTime and Expense Management

S/4 HANA Cloud – A Foundation for Digital Business


What is the most important factor in your company’s ability to move to a digitalized business?

Changing Industrial era ‘norms’ and ways of working is the ‘path to digital’ bottle neck not the technology


In Summary – Digital Business Culture Must Haves

• Digital Agility is a change in the way the whole company thinks. Determine opportunities and challenge your response to your new reality

• Create digital advocates at all Leadership levels in your organisation.

• Focus on a ‘Customer In’ rather than a ‘Product Out’ strategy - the customer is now the boss.

• De-scale and simplify work – ‘fit to standard’ and ‘As A service’ are the new mindset.

• Look to deliver value in 90 day waves – use any gains to fund innovation to ‘shift-right’

• Actively look for ways to re-inforce entrepreneurial mindsets and behaviors use ‘break-out events’ e.g ideathons, dev jams, customer jams to create proof points


In Summary – Digital Must Haves

• Silent Running – privacy and security built in, easy upgrades and no hardware or technical debt

• Shift-Left use ‘Fit to Standard’ to dismantle legacy and commoditise - invest ONLY where it creates differentiation or something completely new

• Business in Real-time from anywhere is the new benchmark. No-more waiting.

• Continuous improvement of ‘best in class’ capability ahead of demand customers expect it

• Artificial Intelligence that can help to simplify routine tasks using ‘smart matching’ and alerting.

• Extensibility built in – Integration out of the box, Open APIs, IOT

• Scale built –in – No more re-fits


The future is here – where will you go?

Thank youContact information:

Christine H. AshtonCustomer Experience [email protected]+44 7827 357347

winning in the digital economy a cio’s...

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