2. About
7/24/2017 2
• Sriram Sabesan
• Partner, Conexiam
• sriram.sabesan@conexiam.com
• 20+ years in Consulting
• Active in improving architecture
profession
• Active in Open Group
• Board of The Open Group
• Open CA Certification Board
• Architecture and Open Platform 3.0TM
Forum
• Shares knowledge openly
• Whitepapers
• Webinars
• Training
• IEEE
• Digital Transformation
• IASA
3. Conexiam
7/24/2017 3
Management consulting company
• Uses an enterprise architecture approach
• Operates in North America, Europe
& the Middle East
Two core services
• Develops client’s EA teams
• Delivers Enterprise Architecture
Contributing thought leaders
The Open Group
IT4IT™ Forum, Digital Transformation,
Architecture Forum, Cloud Forum,
Real-time Forum, Platform 3 Forum,
Security Forum
The SABSA Institute
Public commentary
4. Agenda
My Journey to the Great Reveal
The Seven Levers
Cultivating the Mindset
7/24/2017 4
11. Meet Meena – the Quantifier
7/24/2017 11
Work
Owns RFID
manufacturing
Company
Home
Time is of essence!
Personal
Stay Fit!
12. Meet Sukhi – a Kindred Spirit
7/24/2017 12
Solving similar Customer
Challenges
Significance of
Enterprise Boundary
Cyber-Physical
Continuum
13. Meet Tom – the Customer who wants to be
known
7/24/2017 13
Hi Amy, I will take the
“Usual” today!
Usual =
Knowing
past order
Shipment
Billing
payment
signature preference!
20+ Touchpoints
5 Processes
80+ Applications
4 Data Centers
Sales Fulfillment Billing Logistics
15. The Whole Board – Seven Levers!
• Strategy, Not
Technology is key to
Digital Transformation
• Objective & Periodic
validation of directional
correctness
• Duh! Of course it takes
a village. Culture
eats…
Risk EthicsSecurity
17. Business Process Management
NOT THIS
“I love the new app that allows to scan the items in the cart and pay for them
digitally. But my appreciation for their foray into digital transformation faded very
quickly when I had to return something. The electronic receipt did not suffice. I
needed my physical membership card and my physical credit card to get it done!”
– Ajith K
Digital transformation is
looking beyond shiny
apps and websites.
We need to re-architect
the business processes
to empower our
customers to self-direct
their experiences.
Avoid brick-walls and
dead ends that jolts
them to unexpected
physical interactions.
18. Business Process Management
DO THAT
Vehicle History Reporting
Company Connected Business processes
Rooted in a single question:
How can my service become
indispensable for the dealer?
The answer requires various
function to work together,
connect processes and
correlate to derive intelligence.
19. Business Process Management
THE TAKEAWAY
Instrument for intelligence on outcomes
you enable
Think impact to cycle times, agility,
ease of use
20. Customer Experience and Engagement
NOT THIS
The Booking appears to have been completed elsewhere than on <
.com> with either a travel agent or another location
Don’t throw a tantrum
that spells, “ If not from
my website I will make
your experience poor”
Ditch the short sighted
view - Broaden your
perspective!
Trade Global for
International!
21. Customer Experience and Engagement
DO THAT
An airline designing seamless
experience
Engage at the customer’s
touchpoint
• Engage at the customer’s
touchpoint
• Fold their needs and progress
into your value proposition
Picture Credit : KLM Airline blog
22. Customer Experience and Engagement
THE TAKEAWAY
Focus on customer and employee
Progress
Prioritize Emotional Engagement
23. Product and Services
NOT THIS DO THAT
Comfort in market share of
current product!
Over Experimentation
Improving productivity
Ease of Upgrade
Offer adjacent services
24. Product and Services
THE TAKEAWAY
Focus on customer outcomes and
empowerment
Proactive, Predictive and Personalized
services
25. IT is the root cause of…
NOT THIS DO THAT
Failed Projects
Need Citizen IT
Using for Competitive
Advantage
Analytics Engine
IT/OT bridge
31. Ecosystem
NOT THIS DO THAT
Viewing as Supplier, Creator or
Distributor
Recognizing multi-sided market
Position in Value Network
Think of Adjacent Services
33. Risk, Security & Ethics
• After hiring risk officers, financial institutions are taking more
risks
• Economic gain vs Building Trust!
• Human dilemma experiments & the law!
7/24/2017 33
34. Risk, Security & Ethics
THE TAKEAWAY
Risk & Security
• Asset Model driving threat model
• Trust over failure
Ethics
Adaptive moral compass
Companies need to establish a moral compass
They need a transparent adaptive process to evolve
37. What is Digital Transformation?
Digital Transformation is fundamentally a strategy and an
operation model, wherein, technological advancements are
leveraged to improve the human experiences, operating
efficiencies and to evolve the products and services that
customers will remain loyal to.
It is the consequence of (a) the ability to handle information in the
digital form and (b) using digital technologies to manage the
process of creating, capturing and analyzing information to
deliver perceptive human-machine interaction experience. There
is lot that needs to happen to pull this off.
7/24/2017 37
39. What to Pursue?
Lever Aspects Addressed
Business Process Transformation
(BPT)
Right balance of process discipline and instrumentation, phased rolling-in of all parts of the enterprise to build intelligent insights.
Using the same concepts of productivity and efficiency to understand customer behavior and interaction patterns.
Building processes that matches customer and partner touchpoints.
Customer Engagement and
Experience (CEX)
Experience is the emotion one feels about how they perceive, the product or service has fulfilled their expectations. It is
subjective, ephemeral and qualitative making it hard to measure.
Engagement is the behavior demonstrated by the interactions across touchpoints. It is intentional, measurable and quantitative. A
touchpoint is where a human or a system and the enterprise interact.
Correlate insights from business processes to deliver products or services that delights the customers, driving continually
increasing revenue.
Product or Service Digitization Creating products or services that is focused on the outcomes the customer wants. It may involve the use of digitization and/or
digital twins to promote effectiveness in the usage of the product or service.
IT and Delivery Transformation Applying the same business process optimization, interaction insights and customer experience driven product development to IT
operations of the enterprise. Arriving at consistent agility across IT and other functional areas of the enterprise that is in-sync with
the market expectations.
Organizational Culture Achieving transparency in decision making, informed by data; continuously learning to optimize the product and service portfolio;
focused on sustainability over cost optimization.
Strategy Choosing unique configurations of the value chain and making decisions to maximize the benefit from employment of concurrent
technologies. A deliberate choice to employ the levers mentioned for the benefit of the enterprise.
Ecosystem and Business Model Building and collectively growing the share of customer wallet with partners.
Cultivating a thoughtful approach to attract and retain partnerships that virtuously impacts the brand.
Drives laser clarity about core business focus of each player in the ecosystem.
7/24/2017 39
40. 7/24/2017 40
References
1. Digital Design of Organizations: MIT CISR: http://cisr.mit.edu/blog/documents/2016/04/21/2016_0401_digitaldesign_rosssebastianbeath.pdf/
2. http://cisr.mit.edu/blog/documents/2016/03/10/mit_cisrwp406_designingdigitalorganzations_rosssebastianbeathscantleburymockerfonstadkaganmoloneykrusellbcg.pdf/
3. http://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/
4. http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/
5. https://www.accenture.com/us-en/blogs/blogs-digital-what-is-digital-strategy
6. http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/digital-enterprise-narrative-final-january-2016.pdf
7. http://www.oracle.com/us/industries/financial-services/efma-digital-transformation-wp-2904165.pdf
8. http://www.mindtree.com/sites/default/files/mindtree-thought-posts-white-paper-dynamics-of-digital-transformation.pdf
9. https://www.pega.com/insights/articles/top-6-success-factors-digital-transformation-part-1-2 and https://www.pega.com/insights/articles/top-6-success-factors-digital-transformation-part-2-2
10. http://www.docurated.com/transformation/digital-transformation-blogs-cios
11. https://discover.cisco.com/en/us/digital-business/whitepaper/transformation
12. http://merage.uci.edu/ResearchAndCenters/CDT/Default.aspx
13. http://resources.idgenterprise.com/original/AST-0163997_Gartner_Reprint-Gartner_EA_Tools.pdf (EA tools to integrate with PPM, APM, GRC, IT Fin Mgmt)
14. http://www.mckinsey.com/business-functions/organization/our-insights/six-building-blocks-for-creating-a-high-performing-digital-enterprise
15. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/raising-your-digital-quotient
16. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/strategic-principles-for-competing-in-the-digital-age
17. Jane McConnell. "The Company Cultures That Help (or Hinder) Digital Transformation". Hbr.org. Retrieved 2017-01-12.
18. Rhys Grossman. "The Industries That Are Being Disrupted the Most by Digital". Hbr.org. Retrieved 2017-01-12.
19. Digital Transformation: A Roadmap for Billion-Dollar Organization (PDF) (Report). Capgemini Consulting. 2011.
20. Jim Lecinski, ZMOT: Winning the Zero Moment of Truth (Google, 2011)
21. https://hbr.org/2016/09/know-your-customers-jobs-to-be-done
22. http://www.90percentofeverything.com/2009/10/20/just-add-an-egg-usability-user-experience-and-dramaturgy
23. https://hbr.org/2016/08/the-30-things-customers-really-value
24. http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-enterprise-architects-can-help-ensure-success-with-digital-transformations#0
25. Digital Transformation: Strategy to Implementation using Open Group Standards, January 2017, published by the Open Group; refer to: www2.opengroup.org/ogsys/catalog/W170
26. First, Break all the Rules! Marcus Buckingham, Curt Coffman, Gallup Press, 1999
27. How Company Culture Shapes Employee Motivation, HBR, Nov 2015
Notas del editor
This is part 2 of our series of presentations to open up our method. Each presentation is designed to be stand alone. Dave, Ken and I shared IT4IT, Governance and Digital Transformation at Austin, in July 2016. This is the continuation of Digital Transformation journey. Our white paper via the Open Group is being printed as we speak.
It is either the exhilaration of some bottom up
Or not sure of how to handle the deluge of information flow
Introduced New techniques – Design Thinking and Change Assessment
Introduced New techniques – Using standards to accelerate and Change Assessment
Even though our presentations were well received and we got great engagement via thought provoking questions, I felt there is still a missing piece!
The perception of manageability!
Tracks everything
Food, Hydration, Running form, Marathon readiness
Optimizes his smart home
Connects his books, notes, clips & intellectual sparring!
Is quite complacent with process and organizational silos. Unless the other ones, that helps navigating life, fixing the silos was hijacking life!
I am at the bottom of the food chain! Why are you talking to me about Digital Transformation!
Ball bearing company
Legal service company
Industries couldn’t be more different & problems couldn’t be more common
Be prepared and be smart across all departments – sales, fulfillment, payment settlement!
If Amy is not there, no order today!
(9 customer touch points + 20 employee touchpoints) x 4 Personas
Old Non-Functional is the new Functional
Walk the customer journey – inception/need realization to post usage excitement
“We do not inherit the earth from our ancestors, we borrow it from our children” by David Bower
Talk to the CEO, CMO, CFO & Line of Business Leader!
There is a reason why we ordered them this way. Since our first publication, we have come to realize that risk, security and ethics are to be included.
Design thinkers will say that business process transformation is not outside-in. DT succeeds with outside in approach. We are dealing with small and large businesses; startups and century old enterprises. The model has to fit all walks!
Since the authoring of our blog and whitepaper, we have realized the need to talk about ethics, security and risk.
From: Disconnected & Siloed – not a complete intelligence
Thinking of purchase process, not customer’s shopping process.
inefficiency breeds inefficiencies; overheads - not just administrative costs... loop at the source to consumer pipeline (open taste case study - broker, middlemen, transport waste) – connect the processes to identify sources of inefficiencies – within and outside the enterprise boundary
To: Above the line and below the line, fully connected intelligence to improve more than one thing.
Journey driven process ownership, Design Thinking, RPA, When a human takes over…
Vehicle history reporting company – design their processes and services around the car dealer’s business model. Anchor point: How can I become indispensable for the dealer?
From: Social, Mobile, Bot, AR/VR, Survey, Be Everywhere, Use my branded product… experience is about meeting the customers in their terms – not promoting your brand. When marketing and sales are talking about customers needs and how their product fulfills the need, most of the other experiences are forcing my brand first.
To: Be where your customer’s are, Let them identify you – inbound marketing – not push, App Fatigue, Disclosure requirement, Cognitive load
From: Unintegrated, one off product, to integrated service offering, extending to adjacent businesses.
Vertical and Horizontal Integration
Build it, they will come
5 half baked products is better than 1 fully baked product
Tester Fatigue
Dissociation from the company
To: BaseCamp story & CSC’s product mindset… challenge to overcome, backward compatibility and evolution
CSC’s shift to product thinking – what is that they are actually selling…
Talk about Disney’s foray into cruise…
IoT and backward compatibility – drones / aircrafts / autonomous cars
From: IT as a failure – leading to Citizen IT - All failed projects and trouble, Creation of Shadow IT, Need for citizen IT
To: Competitive advantage, Connectedness, Continuous Insights… Tesla’s ability to remotely update on board software; replaceability of battery
IT is more important than ever before… mainly due to the evolution of IoT, AR, AI. You know your business better than any platform / SaaS provider.
From: Analysis Paralysis – revisiting decisions often, lack of PPM
To: CSC’s Unified Portfolio Review – looking at inflight and new projects together; not afraid of issues past decisions – but directional correctness; accepting mistakes and course correction
Better the workplace culture, higher the customer satisfaction:
Helpful: play, purpose, potential,
Hurtful: emotional pressure, economic pressure, and inertia
GRC – Conexiam Guide, PPM – McKinsey, Agility – Conexiam’s Whitepaper
Data Informed and Data Driven
CDO - Data or Design – being challenged to prove their value, not come across as a threat
From: Fear of losing out, Scaling small unit structure & culture, Quarterly results – target audience – the 3P – perception, positioning, pricing of product or Competition, Cost, Connection… model
To: Adjacent Offerings (CSC and Disney), Directional Correctness, Policy Driven guidance, Amazon’s growth
I will take one of that (architecture recommendation)… when can I get it… (success from 5 rallying goals
There is a new business built around IFTTT or Zapier – so building a new ecosystem or elevating the overall value of the ecosystem – supplier, distributor, after-market accessory provider is healthy.
Think about impact of Horizontal or Vertical Integration
Wealth of data is being shared and exchanged – what damage can be caused? How to prevent
Law is evolving – always a human is needed to take over from machine (at least today)
Human startling effect and full picture of the scenario