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Will you lead or lag? Modernizing enterprise applications to succeed in digital transformation

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Digital transformation is all around us—every industry worldwide is experiencing it and it's not a "one and done" event. What separates leaders and laggards in digital transformation? Learn from IBM client case studies on how they are succeeding at digital reinvention, including key actions they are taking and the quantitative results they are realizing. Additionally, hear about the key findings from the IBM commissioned Forrester global study that uncovered the importance of enterprise applications as the critical foundation to enable success in digital transformation. The study documents the best practices and results of organizations that are succeeding at digital reinvention.

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Will you lead or lag? Modernizing enterprise applications to succeed in digital transformation

  1. 1. Will you lead or lag? Modernizing enterprise applications to succeed in digital transformation David Miller | Vice President and Partner, Financial Services Cloud & Application Innovation Services Chicago | September 25, 2018
  2. 2. 2 Strategic Radical Successful Tactical ModernizationModernization Modernization Modernization
  3. 3. Tactical Modernization 3
  4. 4. Tactical Modernization 4 BusinessIT Transformation Application Portfolio Data, Cloud & Analytics Digital Power (SoR) (SoI) (SoE) Consolidation & Optimization Insights, Decisions & Predictions Experience & Reach Growth
  5. 5. Strategic Modernization 5
  6. 6. Strategic Modernization 6 Reimagine DisruptStatus Quo Reinvent The Power of SoR Modernization
  7. 7. Radical Modernization 7
  8. 8. Radical Modernization 8 Bend the line of culture to the arc of technology Change Time Technology Culture
  9. 9. Radical Modernization 9 Bend the line of culture to the arc of technology Change Time Technology Culture
  10. 10. Successful Modernization 10
  11. 11. 71% of modernization leaders reported successful execution of their digital transformation strategy vs. just 42% of laggards. Base: 265 global professionals with responsibility or influence over their organization’s digital transformation strategy completing a major phase of their digital transformation strategy within the past 24 months Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2017 11
  12. 12. Improved integration with systems of engagement Leaders reap the rewards of modernization Improved ability to access data in systems of record Greater agility Base: 265 global professionals with responsibility or influence over their organization’s digital transformation strategy completing a major phase of their digital transformation project within the past 24 months; 189 modernization leaders and 76 modernization laggards Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2017 12
  13. 13. 1.6x more likely to see improvement in customer retention 5x more likely to see improvement in cost reduction 1.7x more likely to see improvement in user/employee satisfaction 9.5x more likely to see improvement in product quality 13 Modernization leaders realize greater returns across key digital transformation metrics Leaders vs. Laggards: Likelihood to see improvement of >50% Base: Varies; global professionals with responsibility or influence over their organization’s digital transformation strategy Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2017
  14. 14. Challenges Legacy systems lack integration Manual processes are costly and time- consuming Client experience suffers Project Approach Technical modernization: Design and implement a microservices-based next- gen data and integration fabric that eliminates point-to-point interfaces and enables business agility Process modernization: Design and implement a new target operating model that delivers cost takeout, process reengineering, business model improvements, and talent reinvention Experience modernization: Reimagine investor and client journey maps to provide a differentiated end-user experience Background Global Fund Servicing is facing declining margins and tightening market share. Strategic modernization program was defined to develop a technical solution and target operating model to transform their Global Fund Servicing business 14 Financial Services: Legacy Modernization
  15. 15. American Airlines Video IBM Cloud flies with American Airlines 15
  16. 16. 16 Strategic Radical Successful Tactical ModernizationModernization Modernization Modernization
  17. 17. 17

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