The digital imperative and transformation

© Arrk Group 2015www.arrkgroup.com
The Digital Imperative
and Digital Transformation
Ian Southward

 Founded in 1998 and run on a
collaborative, win-win ethic
 Core competence is engineering digital
products and platforms using high
performing software engineering
practices delivered through dedicated
distributed teams
 We provide dedicated teams to clients as
an integrated part of their own organisation
 We innovate through our SpArrk
Community Programme to drive thought
leadership
Who are We?
 150 people, 20 in UK, 130 in Mumbai
 We believe in small teams delivering
quickly
 We use User Centred Design and Agile
practices to deliver quickly and drive
up quality, communication and
transparency
 We build “digital self-service” systems
to reduce cost, maximise productivity and
user satisfaction
 We focus on financial, Government , the
not for profit and education sectors
 We build applications that are digital by
default and deployable in the cloud

 Digital technology offers many advantages
 Technology the biggest thing in business
 Many organisations struggle to implement change programmes
 Organisations that can’t integrate digital technology will limit their
impact
 Takes Leadership and Capabilities in Digital Technology
The Digital Imperative
9 - 26% more
profitable than their
industry sector
Generate 9% more
revenue than their
competition
9% more efficient than
their competition
Source: Cap Gemini

 Parking Service
 Housing Benefits
 Housing Rents
 Housing Advice
 Pest Control
 Licensing
 Managing a Council Home
 Building Control
 Roads, Streets & Traffic Management
 Food safety
 Update Housing Application
 Community Safety and Anti-social
behavior
 Libraries
 Births, Deaths, marriages and NCS/SCS
 Housing Repairs
 Council Tax
 Rubbish and Recycling
 Electoral Services
 Childcare Services
 Planning Services
 Trees
 Leaseholder Services
 Commercial Waste
 Streets and Footpaths
 Noise Control
 Health and Safety
 Sports and Leisure
 Parks and Open Spaces
 Payments
 Adult Social Care
Local Government : Services offered

 Reduce Costs, Increase Efficiency
 Optimised user experience and channel shift
 Improve collaboration across employees
 Put data at the heart of user experience
 Transparency and e-Democracy
 Drive innovation and new ways of working
Digital Imperative in Local Government
8.62
2.83
0.15
0
2
4
6
8
10
Face-To
Face
Phone Web
₤
Interaction Type
Expense per
Transaction

 25 on-line questions to measure digital maturity
 Measurements across 5 dimensions
 Leadership
 Execution
 Organisation
 Customer Experience
 Digital Platform
 Five levels of Categoristation
 Digital Dinosaur
 Digital Tortoise
 Digital Panda
 Digital Tiger
 Digital Eagle
Digital Maturity Assessment

Digital Leadership
•Technology and
business together
•End to end Single
platform
•Holistic access to
services
Technology Vision
ExecutionGovernance
•Top Down and Bottom Up
•Outcome Based
•Future Focused
•Transformative
•Business and IT
•Engagement
•Rapid Execution
•Digital Skills
•Innovate with Partners
•Phased and iterative
•Support Pioneering Initiatives
•Goals and Measurement
•Cultural shift
•Sustain investment

There is a vision and strategy that clearly defines the
importance of the digitisation
39%
42%
19%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
YES
PARTLY
NO
Sample: 363

Is there organisational level governance for supporting
digital transformation?
25%
53%
21%
0% 10% 20% 30% 40% 50% 60%
ENTIRELY
BUSINESS UNIT LEVEL ONLY
NOT AT ALL
Sample: 229

 Rapid, iterative execution is vital
 Time to market as short as possible
 Design services around the user
 Monitor usage and evolve
 Deliver front end functionality frequently
 Invest in digital skills
 Make progress as transparent as possible
 Use technology platforms to engage and scale
 Strong governance to sustain investment and evolve services
Execution & Delivery

How do you rate your organisation's ability to identify and
execute on its digital capabilities?
14%
19%
26%
30%
12%
0% 5% 10% 15% 20% 25% 30% 35%
GROUNDBREAKING INITIATIVES CONTINUALLY BEING
DELIVERED
FOCUSED AND REGULAR ACTIVITIES TO ENHANCE
YOUR DIGITAL CAPABILITIES
USING IDEAS / INITIATIVES FROM COMPETITORS,
REGULAR UPDATES
AD-HOC UPDATES, NO STRATEGIC PLAN
IRREGULAR / SPORADIC / AS NEEDED, SLOW TO
DELIVER
Sample: 146

 Innovation and an entrepreneurial spirit
 Connected, Collaborative and Transparent
 The most important thing in business is technology
 Digital Leadership Roles to drive change
 Chief Digital Officer
 Think like digital entrepreneurs
 Empower, Innovate and Unleash
Organisation (& Culture)
Standardise
Versus
Empower
Control
Versus
Innovate
Orchestrate
Versus
Unleash

 We have 3 “self-forming” communities around themes that emphasise our core
capabilities and key trends in our industry
 The teams meet every two weeks to discuss and agree topics for research
 We publish blogs and white papers, produce videos and produce concepts,
working prototypes
 The SpArrk Communities have developed a range of collateral and experience
with
 IOT, Open Source Digital Architecture, DevOps, Automated Testing of Multiple
Browsers, ScrumBan, Agile Maturity, Digital Maturity, Agile Forecasting…
 http://www.arrkgroup.com/thought-leadership/
Innovative Culture
Digital Platform
and Architecture
High Performance
Software
Engineering
Leading Edge
Technologies

 All users
 Internal & external audiences
 Design from external perspective
 Put user and user data at heart of experience
 Mobile first
 Increase loyalty and create positive brand
perceptions
Customer Experience

 Multi-tiered, loosely coupled platform
 Holistic front end to access services
 Digital by default
 Ability to interface with all legacy and 3rd
party applications
 Leverage scalability using cloud
 Leverage open source technology
 Use NoSQL (or Big Data) to drive
insight
Digital Platform

Ongoing Process
Vision
Focus
Mobilise
Sustain
• Build Awareness
• Create Vision
• Align Organisation
• Roadmap
• Governance
• Fund transformation
• Engage
• Cultural change
• Deliver rapidly
• Develop skills
• Develop capability
• Monitor and Evolve

Is there acceptance that the organisation will change with
progressive digitisation?
17%
40%
31%
13%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
YES, WE FULLY ACCEPT THE CHANGES AND HAVE ADOPTED A
TRULY ENTREPRENEURIAL APPROACH AND THINK DIGITAL
FIRST
PARTIALLY BUT WE ARE NOT ENTREPRENEURIAL ENOUGH
ACROSS OUR ORGANISATION
PARTIALLY BUT MAINLY SILOED THINKING, WITH LITTLE
COLLABORATION ACROSS THE ORGANISATION
NO AND VERY LITTLE ENGAGEMENT WITH ORGANISATION TO
DRIVE NEW INITIATIVES
Sample: 134

What challenges exist which would prevent you from
implementing digital innovation?
20%
38%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
THERE ARE NO BARRIERS. WE HAVE A SUCCESSFUL PROGRAMME OF
ACTIVITY FULLY SUPPORTED BY THE ORGANISATION
ALL AREAS OF THE ORGANISATION CONSULTED AND SUPPORTED
WHERE A BUSINESS CASE EXISTS
CONTINUAL RESISTANCE FROM PARTS OF THE ORGANISATION
WHERE ANALOGUE PROCESSES AND BUSINESS AS USUAL THINKING
PREVAILS
Sample: 127

Only Just the Start!
Artificial Intelligence
Augmented Reality
Robotics
Wearables
Internet of Things
Sharing Economies

 Download our white papers
 ‘The Digital Imperative’
 Cloud
 BYOD
 Social Media
 Mobile
 Putting The User First
 http://bit.ly/digital-imperative
 http://bit.ly/User-First-WP
Further reading

Ian Southward
Ian.southward@arrkgroup.com
07976 124629

The digital imperative and transformation

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