A presentation and workshop on helping organizations enable digital transformation across the enterprise

1. Kindling Innovation Across the
Digital Enterprise
Sunil Maulik
SunilM1
sunil@sunilm1.net

2. Megatrends in the Economy
Today

3. Megatrends Affecting the Digital
Economy
1,350M
343M
332M
284M
230M
200M
618M
829M
7.5Bn Mobile
Devices (>Earth’s
Population!)

4. We live in Exponential Times

5. Enabling Health/Wellness
Behavior Change & Habit Design

6. Enabling Sustainable Energy
Design for the Smart Grid

7. Enabling The Internet Everywhere
Big Data & the Internet of Things

8. Internet of Things (IoT)

9. Applications of IoT

10. Enterprise Opportunities

11. Impact on Organizations
- Transparency
- Experimentation
- Segmenting groups
- Supports automated decision
making
- Enabling new business models,
products

12. Impact on Productivity

13. Enabling the Digital Enterprise

14. Digital Transformation across
Markets

15. Digital Affects Processes,Enterprises &
Transactions
• Mobile Access
• Social Engagement
• Sensors & Wearable Devices
• Digital Financial Models and Transactions
• Connected Devices
• Digital Content Management

16. Then - Now
Then: Old fashioned, proprietary POS system.
Now: Tablet + Square Reader

17. Then - Now
Then: Yard Sales/Flea Markets
Now: Etsy, Pinterest, eBay, etc.

18. Then - Now
Then: Mass Manufacturing
Now: Personalized, Customized,
On-Demand

19. Then - Now
Then: Bake Sales, Flyers, Car-Washes
Now: Kickstarter, kiva.org, Causes

20. Then - Now
Then: Slow, Bureaucratic, Restrictive
Now: Fast, Custom, Varied

21. Then - Now
Then: Job-Fairs, Campus Recruitment, Word-of-
mouth
Now: LinkedIn, Klout, Social Relevance, Personal
Brand

22. Then - Now
Then: Classrooms, Lectures, Reading Materials
Now: Coursera, Khan Academy, Udacity Online,
Certification, Anyone/Anywhere/Anytime

23. Then - Now
Then: Taxis, Minicabs, Limousines
Now: Uber, Lyft, SideCar

24. Then - Now
Then: Hotels, Vacation Swap
Now: AirBnB, Couchsurfing, OneFineStay

26. The Design Economy
• (Re)Designing Processes
• (Re)Designing Enterprises
• (Re)Designing Transactions

27. • OLD: Plan, Design, Implement, Deliver, Improve
• NEW: Launch, Feedback, Improve (Repeat until done!)
Redesigning Processes

28. New Processes
• “Code fast and break things”
• “Perpetually in Beta”
• “Release early, release often”
• “If you are not truly embarrassed by
your product, you waited far too long
to release it”

29. Iterative Refinement
• Start with an initial model
(hypothesis or idea.)
• Collect data from the field. (Show
users prototypes or basic
schematics.)
• Measure users empathetic
response.
• Adjust model so that it more
adequately fits the measured data
(meets the users needs.)
• Repeat the process until no further
refinement is possible.

30. Appeal to the Head & the Heart
Business Objectives vs. User Needs

31. Who’s on First?

32. Digital Decision-Making
•System 1: Fast, automatic, frequent, emotional,
stereotypic, subconscious
•System 2: Slow, effortful, infrequent, logical,
calculating, conscious
“Thinking, Fast & Slow” Daniel Kahneman

33. How the Mind Decides What to Do
• Most of the time, we’re not consciously
deciding what to do next.
• We often act based on habits. They can
be created, but are hard to defeat.
• We often make intuitive, immediate
decisions based on our past experiences.
• When consciously thinking, we often
avoid hard work. We “wing it” with
rough guesses based on similar, but
simpler, problems.
• We follow other people, especially peers
and experts.

34. Decision-Making & Habits

35. Decision-making & Processes
Story Telling vs. Specifications

36. Redesigning Enterprises

37. Digital Enterprises
Vision
Innovation
Customer Journey
Competitive Advantage
Internal Collaboration
Empowered Workforce
Greater Efficiencies
Deeper Analysis
Customer Conversion &
Satisfaction

38. Challenges to Enterprises
• Who will the next customer be?
• What will they want?
• How can they be motivated to
become long-lasting?

39. The Lean Start-Up (LSU) Model
Lean StartUp: A temporary organization designed to find
a repeatable, scalable business model under conditions of
extreme uncertainty

40. The History of the Lean Start-Up
• Founded by Steve Blank (Customer
Development; Repeatable Business
Model Hypothesis; Rapid Experimental
Design)
• Expanded by Eric Ries (Minimum
Viable Product (MVP); The Pivot)
• Assisted by Alex Osterwalder (The
Business Model Canvas)

41. How the LSU Benefits Enterprises
• Extreme uncertainty also
occurs at large enterprises
• Existing Lines of Business
(LoBs) often require new
business models
• Discovering new revenue
opportunities requires
innovation

42. The Business Model Canvas
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

43. LSU Methodology
• Test Hypotheses: Run high-speed
experiments with rapid prototyping
to validate/discard hypotheses.
• Explore: Interviews, Observations,
Re-enactment. Use Design Thinking to
relate to customer’s emotional state.
• Pitch: Present an idea as if it were a
finished product. Get buy-in from all
stakeholders.
• Prototype & Test: Launch product
as unique brand. Spin-out. Isolate in
a test-market.

44. Summary: LSU Model
• Create a business model canvas
for each opportunity in portfolio
• Check which ones show evidence
for customer segment, value
proposition, etc.
• Use LSU model to validate these
projects
• If none validate, pivot to another
hypothesis/opportunity

45. Digital Enterprise Examples
• Burberry: Connected in-store experience
• Nike: Customer Engagement
• Volvo: Digital CRM
• Harrah’s: Location-based marketing
• Starbucks: Mobile payments, loyalty points, incentives
• Virgin America: Twitter-based customer service
• L’Oreal: Customer engagement channels
• Intel: Recruiting via Social Media
• P&G: Improved productivity and enterprise
innovation

46. Redesigning Transactions

47. Redesigning Transactions
• Sharing
• Alternative Payments
• Alternative Currencies

48. A $26Bn Economy (Economist, March 2013)
Average Revenue Per User:
•Air B’nB - $9800/year
•SnapGoods - $58/month
•RelayRides - $250/year

49. Reimagine Exchange

50. Alternative Payments
• Real-time bank transfers
• Offline credit transfers
• Direct debits
• eWallets
• Paper-based payments
• Mobile payments

51. Alternate Currencies

52. Market Share Variation

53. “BitCoin is the next
Internet Platform” -
Chris Dixon, Andreessen
Horowitz

54. The Digital Enterprise

55. Digital Transformation
1. Social, Mobile & Real-Time are causing
significant disruption
2. Digital Transformation is becoming a priority
for organizations
3. Digital Transformation is driven largely by
customer behavior
4. Digital Transformation is based on 3 key
elements: leadership, optimizing customer
experience, and a digital experience ‘swat
team’

56. Transforming the Enterprise
Digital Maturity
Assesment
Digital Strategy
Digital Program
Management
Digital ‘Fabric’
Gap Analysis
Experience &
Engagement
Digital Foundation
Transformation
Framework
Business Case(s) Digital Business Models Digital Architecture Digital Asset Maturity
Competitive Threat ‘Mobile-first’ impact
Program Execution &
Management
Hyper-connected, multi-
model access
Assess Strategize Execute Transform

57. Enterprise Challenges
• Departments act as their own fiefdoms.
• Managers act from a position of self-
preservation.
• Distribution of roles in customer journey.
• Budgets/resources not officially allocated.
• Educating the enterprise of the value of the
transformation is difficult.

58. Key Elements to Digital Transformation
• Vision & Leadership
• Digital Transformation Team
• Digital Customer Experience

59. Vision & Leadership
ROLE OF CHANGE AGENT
In the absence of digital leadership,
change agents must rise from within the
enterprise, unite with each other, and
partner with executives to collaborate for
change.
UPDATED VISION
For digital transformation to mean
something to all involved, a vision
must be clearly articulated to
explain why change is needed,
what it looks like, and its value to
customers and employees.
EXEC SUPPORT
Strategists must make the case
and create a sense of urgency
to gain executive sponsorship
and support.

60. Digital Transformation Team
CENTER OF
EXCELLENCE
It’s necessary to form a cross-
functional group tasked with
redesigning and optimizing the
customer experience, including
roles, responsibilities and projects.
ORGANIZATIONAL
STRUCTURE
Digital expertise may not be common
throughout the organization, but it
should be sought. The goal should be to
organize a qualified team of strategists
who can educate key stakeholders.
IT PARTNERSHIP
A strategic alliance between
IT and marketing will
streamline and help scale
digital transformation efforts.

61. Digital Customer Experience
CxO FOCUS
Companies must rethink
the entire customer
journey and experience.
INNOVATION
CULTURE
Journey mapping
often leads to
unplanned products or
services that reflect
actual customer needs
and behaviors.
DATA
INTEGRATION
New roles are needed to
analyze data, connect it to
lines of business, and
present it in actionable
ways.
COLLABORATION
Journey mapping should
lead to insights into which
departments need to work
more closely together.

62. Benefits of Digital Transformation

63. Work 2.0: Designing for
Behavior Change

64. Work 2.0 - The Digital Enterprise
• View boundaries not as edges but as
areas of overlap
• Enable employees to see the impact of
their work
• Design for culture: Link culture to
brand
• Maintain identity in a distributed
world
• Adhere to core principles while
adopting to changing conditions
Purpose
Mastery
Autonomy

65. Towards a New Culture

66. From Work to Network
• Microtasking/Crowdsourcing:
Disintermediating work from the
enterprise
• Open Innovation: Involving
ecosystem in new inventions
and products
• Generativity: Creation of
completely new products or
processes from existing systems

67. Management 2.0
• Coordinating communities of practice will require new
forms of managerial skills (data analytics, efficiency)
• Managers will need to manage cooperation,
competition and conflict simultaneously
• Data will be critical for decision making, risk assessment,
and developing new products
• Instinct, gut-feeling and tacit knowledge can still uncover
patterns and insights that data analytics might overlook

68. Agile Management?

69. Management by Holocracy?

70. Affecting Employee Behavior

71. Five Stages of Behavior Design
• Understand: How the employee decides to act
• Discover: The right behavior to change, given your goal
• Design: The process to bind to a specific behavior
• Refine: Measure impact & success based on careful
measurement and analysis
• Iterate: Cycle through this process until the desired
behavior becomes habit-forming

72. Environmental Design

73. Constructing the Environment
• Help employees see themselves as people who would
naturally take the action.
• Help employees build strong associations between
things they are already familiar with and enjoy, and
the new action.
• Provide employees with clear instructions on what they
need to do and any other essential information to act.

74. Quantitate Changes in
Employee Behavior

75. Optimizing Behavior Change
• Ensure employees are motivated to act, and that
motivation is at the front of their minds.
• Ensure they are cued to act now. (Ask them.)
• Ensure they know if they are succeeding or failing—give
them actionable feedback.
• Avoid or co-opt behaviors that are competing for their
attention. (Ideally, piggyback onto something they are
already doing.)