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Les sciences et le langage sont les principaux facteurs qui alimentent les mécanismes de la transformation précipitée de nos vies privées et sociales. C’est la poésie et la philosophie qui en donneront un sens.

La nouveauté est bien en soi. Il y a une certaine fascination aujourd’hui pour les progrès technologiques. Jusqu’à très récemment, le rythme de ces évolutions s’est soudainement accéléré, projetant de la science-fiction dans notre quotidien. Or on se focalise plutôt sur le mouvement d’un changement que sur son objectif final. Être mobile, s’adapter toujours, innover encore, changer plus vite, sont devenues les principes de notre conscience occidentale, notre nouvelle religion. Il importe alors de s’interroger sur l’intérêt de la transformation de nos organisations afin d’y donner un sens.
Dans ce premier document, j’essaie de comprendre à travers le prisme des entreprises, les origines de cette transformation dont le numérique et la mondialisation ont fortement contribués. Puis, je propose une approche pour sa prise en main. Être un acteur de sa propre évolution dans ce tourbillon d’innovations est un premier pas pour habiter ce monde et mettre l’humanité au cœur de nos activités.

Les sciences et le langage sont les principaux facteurs qui alimentent les mécanismes de la transformation précipitée de nos vies privées et sociales. C’est la poésie et la philosophie qui en donneront un sens.

La nouveauté est bien en soi. Il y a une certaine fascination aujourd’hui pour les progrès technologiques. Jusqu’à très récemment, le rythme de ces évolutions s’est soudainement accéléré, projetant de la science-fiction dans notre quotidien. Or on se focalise plutôt sur le mouvement d’un changement que sur son objectif final. Être mobile, s’adapter toujours, innover encore, changer plus vite, sont devenues les principes de notre conscience occidentale, notre nouvelle religion. Il importe alors de s’interroger sur l’intérêt de la transformation de nos organisations afin d’y donner un sens.
Dans ce premier document, j’essaie de comprendre à travers le prisme des entreprises, les origines de cette transformation dont le numérique et la mondialisation ont fortement contribués. Puis, je propose une approche pour sa prise en main. Être un acteur de sa propre évolution dans ce tourbillon d’innovations est un premier pas pour habiter ce monde et mettre l’humanité au cœur de nos activités.

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Transformation

  1. 1. Transformation Organization, Business, Technology 2018
  2. 2. 2 Entering into the digital transformation journey is a hard task. Our ability to adapt to change is slower than the pace of the technological evolution. Then, the longer we wait, the more difficult it will become. Digital technologies and globalization are certainly not the only forces causing this rise in spread, but also political and economic decisions, global warming, wars. We need to think much more deeply about what this transformation is, what we really want and what we value, as individuals, as companies and as a society. A desire to learn from people, to welcome divergent ideas, to adjust our personal practices, to open our mind, to think outside the box, to develop our curiosity, to work collaboratively will be the sustainable advantages to maximize the flexibility of our organizations model over the second machine age. We will be then in better shape to implement these ubiquitous changes.
  3. 3. Agenda 3 1. What Is « Digitalization »? ▪ Digitalization ▪ Technology, Endless Troublemaker 2. How Did This Abrupt « Acceleration » Happen? ▪ Internet ➤ Worldwide ▪ Mobile ➤ Real Time & Anywhere ▪ Acceleration ▪ Science Fiction 3. How « Companies » Try To Adapt Themselves? ▪ Industry Trends 4. What Is « Transformation »? ▪ Transformation 5. How To « Get » Transformed? ▪ Roadmap ▪ Your Own Way ▪ Capability ▪ Leadership ▪ Organization ▪ Business ▪ Tools & Data ▪ Sustainable
  4. 4. WHATIS « Digitalization » ? 4
  5. 5. ▪ Digitalization = turning all kind of static and dynamic Information (sound, text, photos, videos, electric, mechanic…) into digital data (Bit (0/1)), the native language of computers. ▪ When things are digitized, they can be stored on a computer and sent over a network to acquire some amazing properties. ▪ Computers are doing for mental power what the steam engine did for muscles power. ▪ Digital concept with computer was developed in the 1960s. The personal computer revolution started in the early 1980s. Time magazine declared the personal computer its « Machine of the year » in 1982. The past decade has witnessed a remarkable run of progress in the area of digital hardware, software and network. Computers are going to continue to improve and do unprecedented things. To understand how the nature of technological progress happened, Digitalization must be explained first. It is on everyone’s lips but everybody is not talking about the same thing. Digitalization 0,1,0,0,1,1 Processor (brain’s computer) BUS Computer ConverterInformation 5
  6. 6. The majority of the transformation of today is the fruit of a long work of research and technological innovation. In late 18th century, the Industrial Revolution hit the business world and the human history by the arrival of new several developments in mechanical engineering, chemistry, metallurgy that gave powerful machines such as the steam engine. Now comes another technological revolution: the « second machine age » or « Industry 4.0 » (Human Substitution (Physical), Mass Production, Automatization, Mass Customization (Cognitive)) Technology, Endless Troublemaker 6 2005 2010 1959 2006 1977 1983 1988 1990 1996 2001 2003 2004 2007 1980 2011 2017 15th 1837 1885 1950 1970 1994 PRINTING GUTENBERG TV BLACK TELEGRAPH CINEMA 1 COMPUTER APPLE ST 1COMPUTERCOMMERCIAL ST 1MOBILE MOTOROLA ST 1GTVCOLOR USB KEY WEB 1MOBILE POPULAR ST 2G 153,6 KBIT/S WIKIPEDIA TWITTER WEB 2.0 LINKEDIN 1BILLION INTERNET USERS FACEBOOK CABLE FASTER 1IPHONE ST TV DIGITAL 4G1 GBIT/S 1PAD ST 4BILLION INTERNET SMS USERS 2012 SELF-DRIVING CAR 3G 56 MBIT/S 2002 2014 VR
  7. 7. ABRUPT HOW DIDTHIS ? « Acceleration » Happen 7
  8. 8. ▪ Network of networks Standards (communication protocols, data exchange formats, and interfaces) are created in a collaborative and open way for which success is measured by the depth of their acceptance across a vast different technologies that together form the network. ▪ Worldwide People can communicate with one another from different computers and networks. They use Internet to create communities, to open new economic capacities, to improve daily tasks, to exchange ideas, to play games. Internet makes easier the development of innovation and creativity. ▪ More internet users In 2017, the number of Internet users worldwide has hit 4 billion meaning that half of the world population are connected. The digital progress accelerated in the 1990th century with the introduction of Internet. Internet gave computers a worldwide possibility to communicate to one another. The true success of Internet is that it is an open model, which has allowed it to grow rapidly and made it durable. Minitel, created in 1982, is considered one of the world's most successful pre-World Wide Web online services. In 2007, revenue was still well over $100 million. But it was a closed solution and was quickly cannibalized by Internet. It died in 2009. Internet ➤ Worldwide 8
  9. 9. ▪ Figures The Internet continues its development essentially throughout mobile and tablet devices. 50% of all online activities will be with these devices by 2018. Mobile is the only way to phone in some emerging countries due to poor quality of fixed network. 4G wireless digital technologies standard for mobile phones and data terminals, offers even faster data rate than 3G with greater spectral efficiency. Mobile broadband connections are forecast to continue to grow across all geographies to 6 billion in 2018. This will be approximately six times the number of fixed broadband connections. 128 years had been necessary to develop landline phone at home of a billion people. But only 20 years were needed to the mobile phone to 6 billion people. ▪ ATAWAD New Digital transformation enables everybody to connect to anybody, anywhere in the world, with any devices (Any Time, Any Where, Any Device). At the end of the 20th century, the new generation of computing devices, such as mobile and tablet, combined with more powerful and cheap global technologies communication, created a new acceleration of modification in our way of life and work. Companies and people can do things that would have been impossible a decade before. Mobile ➤ Real Time & Anywhere 9
  10. 10. ▪ In 1965, Gordon Moore, cofounder of Intel, did a prediction that electronic components will increase twice as much power per dollar every year. Although they are constrained by the law of physics, Moore’s law works over time on processor memory, sensor and many other elements of computer hardware (an exception on batteries, essentially chemical devices, not digital ones). ▪ It makes computing devices faster, cheaper, smaller, and lighter at exponential rate. For many thousands of years, humanity progress followed a gradual upward path, virtually invisible. A first sudden change happened with the Industrial Revolution. Technological progress on computers, software, communication network, robots, and other digital equipment was also gradual for a long time. Then, the past few years, it became sudden and exponential. Moreover, we are only at the dawn of this evolution. ▪ Digital information is not used up when it gets used, and it is exceptionally cheap to be reproduced. A copy of a digital good is exactly identical to the original (see music, book…). ▪ The digital universe does not respect any boundaries. Each digital development can easily be combined together to foster new innovations and so on. ▪ Worldwide communication fosters combination exponentially. ▪ A central authority (the government or the trains company) leaded the invention of the steam engine while an open community, the citizens themselves, made possible the digital revolution. In 1996, ASCI Red supercomputer cost $55 million, occupied nearly than 150 square meters, to score above one teraflop- one trillion floating point operations per second. In 2011, an iPad tablet cost $1,000, occupied 0,05 square meters, to do almost identical peak calculation, with additional features such as a speaker, microscope, and headphone jack, cameras, intelligent personal assistant. The Web is a combination of a protocol of data transmission network called TCP/IP, a language called HTML, a Browser… None of theses concepts was particular novel. Their combination was phenomenal. 10 Acceleration Several key phenomena can explain this recent progress:
  11. 11. Science Fiction Within the next years, entire societies will be transformed by a pell-mell of technologies, not only the computer era, that until recently have existed only in science fiction movies. The Internet of Things (IoT) and Robots have become a powerful force in our life, and its disruptive impact will be felt across all industries and all areas of society. ▪ 8.4 billion connected things are in use worldwide in 2017, up 31 percent from 2016, and will reach 20.4 billion by 2020. ▪ Virtual Supermarket Consumers scan the QR code of the product they would like to buy with mobile. The item is automatically added to an online shopping cart, and after paying, shoppers will find a bag of groceries on their doorstep. ▪ Augmented Reality in automotive manufacturer Car dealers offer in showroom an exploded 3D view of the braking system, as well as aerodynamic insights and powertrain details. ▪ Virtual Reality Through VR, you can immerse yourself in a digital experience. The features that VR can bring to the business market are still to be discovered (Entertainment, Gaming, Education, Design, Tourism, Psychology, Shopping, Real Estate…). ▪ Self Driving Car A self driving car or an autonomous car is a vehicle that can guide itself without human conduction. This kind of vehicle has become a concrete reality. The actor participating in this market are the traditional car- makers such as BMW, GM, Ford, Renault… But new brands have emerged such as Microsoft, Tesla, Uber, Apple, Google… The mixture of technologies to build such a car (video cameras, GPS, Maps, Laser, Radar and sonar, software algorithms…) associated with others innovations (battery…) will disrupt the existing map of the industry around cars. It will also certainly add new companies that will reinvent new business models. ▪ Blockchain By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the bitcoin, this technology has now other potential uses. Security is one reason they are a good fit. Much of the interaction on the IoT takes place between robots, often with little human oversight. Blockchain records offer a necessary security to avoid information to be manipulated. 11
  12. 12. HOW «Companies» ? Adapt Try To Themselves 12
  13. 13. Industry Trends The size of the commerce market is growing internationally thanks to the improvements in telecommunication that reach out and touch more people. Consumers will remain demanding exponentially without geographic barriers. The ubiquitous shopping became a standard. Companies are fully impacted. They will have to continue to develop new strategies to create new products and services, throughout a vast range of online and offline channels. ▪ Industries’ investment in 2018 Convert and exploit Big Data (real-time insights, prediction…). Enable a seamless experience across digital channels (mobiles, tablets…) and physical assets (retail store, warehouses…). Reinforce security on various digital (cyber-security) and traditional channels. Reorganize collaboration between all units and avoid work in silos. Collaborate with or acquire external partners. Develop Agile Organization. Optimize the process from the source to customers to supply chain / production to reduce costs. Drive IT modernization. Integrate new e-Commerce platform, including Omni-channel and digital marketing platform. ▪ e-Commerce By creating a potential market of billions of users, the Internet is a natural venue to new online businesses, such as Amazon.com, which in many cases compete strongly with traditional retailers. North America is the 3rd strongest e-Commerce region in the world, behind Asia-Pacific (1st) and Europe (2nd). 13
  14. 14. WHAT ? « Transformation » IS14
  15. 15. 15 The past decade has witnessed a remarkable run of progress in the area of computers, software, communication network, Artificial Intelligence, robots, and other digital equipment. Until recently, this progress has suddenly become exponential. This converts science fiction into everyday reality, exceeding even our recent theories. In the coming decade, we will be the witnesses of amazing technologies that will continue to transform our ways of living and working. And there is no end in sight. Disruption has become the new normal. Digital technologies are certainly not the only forces causing this rise in spread, but also globalization, political and economic decisions, global warming, wars. It forces organizations to transformed themselves. Indeed, it means the collaboration between people, process and technology to help businesses better innovate and compete in a physical and digital world. Transformation Transformation is a complex task because it concerns all facets of a company. It offers a depth and breadth of understanding of customer and Employee usages (Customer Experience, Employee Journey), and internal operational capabilities (Operational Process) with the help of the huge among of available data (Data / Analytics). It creates a culture capable of finding innovative ways (Innovation) to more effectively run, grow and reinvent business (Business Model). It takes a great IT systems and digital hardware and software tools (Informative System). It conducts changes to a common vision and trains everybody to this new agile environment (Organization). It opens minds to develop our adaptation against the unexpected side effect on our ways of living and working (Engagement). ANALYTICS CUSTOMER EXPERIENCE OPERATIONAL PROCESS INNOVATIONBUSINESS MODEL INFORMATIVE SYSTEM ENGAGEMENT ORGANIZATION DATA
  16. 16. 16 HOW TO ?Transformed «GET»
  17. 17. 17 Many organizations do not know how to start their Transformation. The ability to change our skills, organizations, and institutions is slower than the pace of technical change. You will translate your vision into strategic goals with your own ADN (Your Own Way). Then, a roadmap (Capability) will guide (Leadership) your Organization toward all types of business needs (Business) as well as your future technology investments (Tools & Data). At last, by maximizing the flexibility of your Organization models, you will be able to deal with these changes on a long-term basis as your transformation evolves over time (Sustainable). RoadMap YOUR OWN WAY LEADERSHIP ORGANIZATION CAPABILITY SUSTAINABLE BUSINESS TOOLS & DATA
  18. 18. In order to bring a real change, top executives must support and continuously sell the vision for transformation internally. You need to build a dedicated team with a collaborative approach, responsible for achieving progress and sustaining energy across the company. Leadership You need to rethink completely your technology and your Data, the Old and the New, to support all of your journeys across your digital channels and your physical assets. More than 1 years to start or to deliver your transformation may lose the employee engagement and the business benefit. You must spread out agile-project-based culture in all of your employees. Tools & Data Organization Business « What is a customer, employee, citizen experience? », « Where does it starts and end? », should be your first questions before re-imagining the entire journey with all of your physical and digital channels. Successful business models do not last forever. Companies must constantly look out for symptoms of business model change. Companies also need to know where they start, how mature their transformatio n profiles are, and which current strategic assets will help them to excel. Capability Your Own Way Transform a company has vastly different meanings for different organizations. Following a typical model does not guarantee a success. You must define your path with your own DNA. Sustaining the momentum of a transformation is critical to long-term success. Iterative review process are developed to measure progress frequently. Sustainable 18 Description
  19. 19. CAPABILITYYOUR OWN WAY •DNA •Maturity on - Leadership - Organization - Business - Tools & Data •Opportunities •Strategic Asset •RoadMap •Executive Leadership •Dedicated Transformation Team •Vision •Strategy •Innovation Culture •Engagement •Change Management •Welcome Any Other Ideas •Governance •Organization Chart •Collaboration between all units •Agile-project- based culture •Entrepreneurship •SAFe, Lean, Kanban, … •Design Thinking •DevOps •Customer / Employee Experience •People Journey •In Store, Phygital •Gamification •Social Network •Real Time •Customer Prediction •Operational Capabilities •Business Model Review Smart City •eCommerce Platform •Internet of Things •Omni-Channels Solutions •Mobile, Real Time •Big Data •Cyber Security •Cloud vs on Premise •IT Modernization •Artificial Intelligence •Rewards •Monitoring •Success Criteria •Continuous Process LEADERSHIP ORGANIZATION BUSINESS TOOLS & DATA SUSTAINABLE Key Words
  20. 20. Your Own Way Transform a company is complex and has vastly different meanings for different organizations with different sizes. Following a typical model does not guarantee a success. You must define your own way based on your identity. Your success is tied to your entire ecosystem of your customers, partners and employees, as well as the interface between these groups and the technology you choose. In an accelerated world, you must slow down to think better. Before change can begin, questions must be answered, opportunities must be discovered, and desired business outcome must be identified. It will give you a direction in your transformation journey. The challenge is global, not only technological. No tool will solve this problem without fully defined expectations. Strategists and transformation circles need first to identify what opportunities are to your business environment and beyond. Companies also need to know where they start, how mature their transformation profiles are, and which current strategic assets will help them to excel. Every company is different. In a large global organization, digital competencies may vary by division, lines of business, functions, business models, or geographical locations. The maturity is the first step of the process. Leadership, Organization, Business, Tools & Data are evaluated in different aspects. Then, for all of these aspects, goals are defined in direct line with the vision and strategic themes. The milestones and steps are proposed to the organization to show the path to realize the transformation. In a transformation maturity, a focus can be done on digital. Capability Example of Digital Maturity Matrix « Leading Digital: Turning Technology into Business Transformation » DigitalCapabilities Leadership Capabilities Fashionistas Digital Masters Beginners Conservatives • Many advanced digital features (social, mobile) in silos • No complete vision • Underdeveloped coordination • Digital culture may exist in silos • Management skeptical of the business value of advanced digital technologies • May be carrying out some experiments • Immature digital culture • Complete digital vision but may be underdeveloped • Few advanced digital features, though traditional digital capabilities may be mature • Strong digital governance across silos • Active steps to build digital skills and culture • Strong Complete digital vision • Excellent governance across silos • Many digital initiatives generating business value in measurable ways • Strong digital culture 20
  21. 21. Leadership Without the CEO’s engagement and believes, without the ability to articulate direction and offer a convincing glimpse of the « Promised Land », employees in general will stay « business as usual ». Cultural, organizational, and leadership challenges are the most important factor that slow the adoption of the transformation. Middle managers will not have enough authority to drive the transformation across business silos. In order to bring a real change, top executives must support and continuously sell the vision for transformation internally. They align people together from different groups to collaborate and to understand why a journey is necessary. CEOs should send clear messages to the organization early to spark a burning sense of urgency (such as a « Digital year » concept). They will re- prioritize investments in light of the evolving transformation journey. Because successful transformation is a strategic activity, it must start at the top of the company. The senior-most executives must: ▪ Set direction ▪ Build momentum (Put transformation at the top of the agenda) ▪ Ensure that the company follows through ▪ Build a coalition of believers A powerful coalition among top leaders in the organization is essential but not enough. They must collectively understand the potential threats and opportunities from digital technologies and the need for transformation. A key aspect of competing in the digital age is the ability of leaders to be comfortable with certain level of ambiguity when it comes to digital initiatives. Top Down Transformation Team Partner for the road For most executives, transformation is brand new, and the desire to change often exceeds the ability to do so. You should find external supports. However, you will have to make a difficult choice among a pell-mell of strategists. These actors (digital agencies, Marketing companies, providers, integrator, technology consultants, financing consultants, freelance…) must have a great understanding in the global transformation ecosystem. Reminder, your transformation process is not only a technologic change. 21
  22. 22. A wise approach to partner selection is important, especially when some actors view technology as tactical software selling. You should seek partners, not vendors, to be confident they will also invest in your success. Flexibility and adaptability skills should also be considered in your partner selections as your transformation evolves over time. Dedicated transformation Team You need to build a dedicated team, a transformation circle, responsible for bringing about transformation across the company. It is about finding a group of people at different levels throughout the organization to each line of business who are the players and influencers to pave the way for a collaborative approach, to achieve progress and sustain energy. You may decide to have an executive, such as a Chief Digital Officer, in charge of building and managing this transformation team. This executive will form strategic alliances with other executives such as CIOs and CMOs, who are the key advocates for a transformation success. They could also rapidly be your biggest detractors if you do not consider them. New Skills An organization change requires new skills and new ways of working collaboratively, sometimes remotely and worldwide. To compound the problem, most companies are chasing after specific skills, such as programmers, social media analysts, mobile marketers, cloud architects, data scientists, and digital project managers. Having the right digital skill is an important source of competitive business advantage and a key enabler of transformation. 22 You should also be open to catch talent beyond circle of usual candidates. Companies are using all of the recruitment channels of digital technologies (social media, online recruitment agencies) as well as more traditional routes. However, gaining new skills can not happen fast enough. Companies need to tap into multiple approaches, hiring new skills, partnering, acquiring smaller companies purely for their talent (but it can be risky to implement) and investing in agile start-ups (incubation). You also need to empower existing teams to have everyone at the same digital page. Employees are one of your biggest assets to succeed your transformation. You should invest in improving their abilities in technology and business, as well as leadership and process training. There is frequently gap between older generations and Millennial. Companies must promote « reverse mentoring » to foster understanding, create mutual empathy, and promote collaboration between disparate generations of team members. Each team should be qualified to reconstruct digital touchpoints and invest in new strategies and technologies because they fundamentally comprehend the new journey and how to captivate and lead customer experiences.
  23. 23. 23 Vision Employees, customers, and investors must be engaged to move to the same and clear direction and make the vision a reality. • Identify strategic assets to define those that will remain strategic Physical (retail stores, distribution networks, warehouses and depots, products). Combination of physical and digital assets can often be a keen source of advantages. Competencies (functional skills (IT, sales) or know-how (products, processes, technologies)). Intangible, by nature often the most difficult to gauge (brands, reputation, culture, patents, proprietary technologies). Data, one of the most valuable digital assets. Companies can even monetize it. • Define a clear intent and outcome to facilitate communication and common understanding Intent is a picture of what needs to change. Outcome is a measurable benefit to the company, its customers, or its employees. Together, they help employees visualize the future of the organization and help motivate them to start realizing the outcome. Evolve vision over time to give enough flexibility to innovate and build on it. Transformation starts when a transformative vision is created, a goal to envision how the company will be in the disruptive world. The vision needs to be focused on enhancing customer experience, streamlining operations, or combining both to transform business models. CDiscount, an online retailer, sells its customers data information to other companies. Decathlon, a sport retailer, reviews every year a five-year vision with all of the employees, all over the world. V I S I O N V I S I O N V I S I O N V I S I O N V I S I O N V I S I O N V I S I O N
  24. 24. Definition People care about innovation and their conversations are often around a new gadget or a revolutionary idea from a cool start-up company. However, innovation makes also our society wealthier. Many experts’ definitions of innovation look like different first, but are finally similar. They have just said it in different ways. It makes sense why the definition of innovation is still misunderstood. • Definition The seed of innovation is the ability to turn a bunch of ideas, a touch of creativity, a hint of intuition, a pinch of luck, into a novel idea. However, it can compose just a new idea. Novel ideas become an innovation when they are transformed into a new relevant value with a new positive change on a product, a service, a process, an organization, a customer, an employee, a way of life or work... It must be replicable at an economical cost, must satisfy a need and produce a tangible new profits and growth for the organization. While invention requires the creation of new ideas, innovation moves one step further and requires implementation of the invention. Invention is just part of the process of innovation. • Type of innovative ideas Extensive. It consists of small, yet meaningful improvements that help extend product, service, business life cycles, and improve profitability: new perfume, packaging improvements, just-in-time supply chain enhancements… They can be easily visualized and quickly communicated. Breakthrough. It is a big change that gives people something demonstrably new in the existing domain. Breakthrough innovation produces a substantial advantage for a while. Disruptive. It creates a new category, or transforms an existing one dramatically, or obsoletes the existing industry or transforms the way we live and work. 24 Innovation
  25. 25. • What can a company do? Promote innovation from top to bottom as a competency like leadership, entrepreneurship or ethics, aligned with corporate strategic goals and vision. Acquire innovative companies in innovation to help you. Collect a balanced pipeline of big and small ideas with digital technologies (social network, mobile, apps…) throughout innovation challenges (open innovation, crowdsourcing, competitions, incentives…). Analyze the trends in the market environment, the customers’ needs and competitors. Recombine and transform ideas into practical values for your organization and business. Culture of failure and risk tolerance has to be encouraged. People must be heard, and rewarded for their initiatives, even failed ones. Failures often yield feedback that can propel organizations forward. Be open and curious to new ideas to think outside box. Reach talent beyond circle of usual candidates whose expertise is far away from the apparent domain of the so-called topic. You should have allegiance to your people but you should be also insurgent to develop divergent new approaches. Be inspired by the spirit of start-ups, bringing continuous innovations into conquering the market. Other actors went even farther by integrating their own incubator within their organization as Orange, telecommunication company, with its Lab. For a start- up, the objective is to develop for, eventually, become a very large company in the future. Develop Labs to test, experiment new ideas, existing or new potential inventions to help you or your clients visualize the possibilities and practicalities. Learn more about collaboration with researchers and support basic academic research. Find funding for your innovation investment (Government’s help, Return Of Investment, software patents and copyright duration…). Continuously sustain a culture of innovation in a real- time competition. Instant messaging, social networking and ubiquitous wireless communications are the reality. Create an atmosphere where employees are anxious to exploit new possibilities. Leaders should put innovation at the heart of their organization as a business strategy. It will change the conversation to create a new dynamism to every organization. They have to foster organizational-friendly cultures that continually renew and change. There is no simple prescription. It is a composite of many steps resulting in cultural change within the organization. Culture Google’s driverless car was a direct outgrowth of challenge that offered a one-million-dollar prize for a car that could navigate a specific course without a human. 25
  26. 26. • What mistake do companies often make? When asking for ideas, we invite a lot of noise and unnecessary work. Every person inside and outside of an organization has an opinion, suggestion, or idea about how to improve things. The reality is that most of these ideas will not be effective in producing positive results. The main difficulty is to know which combinations of them will be valuable. So it is all about the customer’s perceived value. Coming up with ideas is relatively easy, fast and cheap, but then those ideas need to be turned into a real solution. Far too many companies expect to achieve the highest levels of innovation while only providing the strategy, tools, and support for lower-level success, at best. Many leaders talk about innovation to be a company value without actually putting the required level of time, people, budget and support behind it to make it happen. Innovation is associated to a product or a technological platform. And in truth, it is bigger than that. It is the innovations in organizations and management that precede product or technology innovations. You innovate the company before innovating the product. Work in silo to find, test, and implement ideas. Keep the old way of doing things, especially in corporate companies. Many companies create innovation’s organizations just to have government financing. It is difficult to find a backlog of new creators. School need to be reinvented in order to provide the new creators of tomorrow. More and more strategy departments and CEOs have already selected innovation as one of their strategic pillars for growth. However, the implementation of innovative processes with a positive value can be a long path to achieve. Long Path 26
  27. 27. Extension The exponential progress has created the emergence of real, useful artificial intelligence and the connection of most of the people on the planet via a common digital network. These advances have fundamentally changed our growth prospects, ways of living and have transformed how physical work is done. Thanks to technology, we are creating a more extensive world. This chapter does not promote any philosophical and political ideas. Yet, a company may want to take a personal role in the future of our society that will be profoundly affected by the exponential progress. It can be done with a true humanistic vision, or a fear that its own business model will be affected if nothing is done, or just to improve its corporate image among employees and customers. • Overall living standard increased On miscellaneous media, debates and predictions propose negative outcome of the technological progress. But when you consider trends over the past century, overall living standards have increased enormously worldwide. Costs of fun digital tools have been decreasing for the last decades. People have more access to poetry, books, travelling, cooking, painting... Innovations like mobile are improving people’s well- being. 27 Commitment • Productivity increased Hard labour has been reduced too. Robots have a few obvious advantages over human workers (no need to sleep, or coffee breaks, or healthcare). People once routinely worked more than 15 hours per week. Today, the average workweek is shorter without decreasing the productivity. A recent study has showed that the average American worker takes only 11 hours of labour per week to produce as much as she or he produced in 40 hours in 1950. Another study indicated that companies using more IT tend to have higher levels of productivity and faster productivity growth than their industry competitors. • New metrics are needed However, metrics, that make life worthwhile, are virtually invisible in the official statistics. They do not add value to the Gross National Product (GDP). Indeed, GDP does not measure our sense of humour, nor our learning, nor our freedom, neither our collaborative activities. New economic metrics need to be innovated in order to avoid looking at the wrong gauges and to make bad decisions with wrong outputs.
  28. 28. However, the power of exponential digital progress and the dawning of machine intelligence as well as the globalization can presage disruptions. If progress can substitute human workers for machines, people will be jobless. Our digital infrastructure is also becoming ever more complicated and interlinked to manage. Then, People will be increasingly concerned with questions about unexpected side effects on self- worth, family, health values, privacy and freedom, catastrophic events … Disruption • Inelastic demand An increase in productivity is not exactly matched by an identical increase in demand to keep everyone just as busy as they were before. Productivity continued its upward path as employment bent since the late 1990s. Less educated workers whose jobs frequently involve routine cognitive and manual tasks are still eliminated and others are augmented (highly educated, skill-biased technical). • Rapid change The ability to change our skills, organizations, and institutions is slower than the pace of technical change. 28 • Severe inequality Digitization creates winner-take-all markets because o Goods capacity constraints become increasingly irrelevant (less people to produce). o It increases the capacity of a decision-maker that can make large differences in salary. o It increases the profits earned by capital owners and reduces the share of income going to labour. Disruption Example on Photography Economy 15 people at Instagram created a simple app used by over 130 million customers to share some 16 billion photos. In contrast, Kodak employed 150,000 people, and even more via the extensive supply chain and retail distribution channels. Moreover, Instagram has a market value several times greater than Kodak ever did. Kodak does not exist anymore. • Privacy and Data Security Data security focuses on protecting the data from theft and breaches. Whereas privacy governs how data is being collected, shared and used. o Data Security breach o Privacy violation Cambridge Analytica, a political consulting firm, use a breach to harvest private information from the Facebook profiles of more than 50 million users without their permission. Black Mirror, a British series, is coming true in China. Every citizenships will have a « social credit » scores that rate their trustworthiness and determine their place in society. Take care of parents, pay bills on time, …will be rewarded with a high rating, which can get access to visas to travel abroad or good schools for children. Beijing aims to have the program running by 2020. Pilot versions are underway in 30 cities.
  29. 29. • Reinvent schools Today, the clerks are the computers. Schools should prepare people who guide those computers to do the clerical jobs, use digital technologies and develop technical skill for all student profiles. Schools must also emphasize self-directed learning, hands-on engagement, creativity, and multidisciplinary approach to train future workers to adapt. • Develop entrepreneurships spirit The economy must invent new jobs and industries. Young companies have created more net jobs than old companies for the last 30 years. Entrepreneurship should be welcomed and developed, even in huge corporate organization. In the coming decade, we will be the witnesses of a wave of amazing technologies unleashed that will impact our economic institutions and intuitions. By maximizing the flexibility of our organization models, we will be able to deal with these changes. A willingness to learn from others, to welcome divergent ideas, to adapt our own practices and to have open minds will be the keys of success for not only policy makers but also our entrepreneurs, and each of us individually. Empowerment 29 Voyages-SNCF, digital tourism company, work collectively with 3 start-ups, to develop their initiatives, to get closer to their agile way of working and to get innovations in order to transform the sector of the Travel sector. Then, they were able to launch the first French accelerator in 2016.
  30. 30. 30 • Create smart cities There is no absolute definition of a smart city. But the main mission of a smart city is to create a favourable life environment (Intelligent Mobility, Park and Recreation, Air quality, Cultural activities, economical growth, quick services…) for its citizens, visitors, and companies. Using data and connected technologies will be an accelerator of their transformation. Citizens engage with smart city ecosystems in a variety of ways using smartphones and mobile devices, as well as connected cars and homes. For instance, connected traffic lights receive data from sensors and cars. They can then adjust light cadence and timing to respond to real time traffic thereby reducing road congestion. It is also a more productive place to welcome talents. • Search talent differently Today, search a job and develop your networking are much easier thanks to the web. However, having the perfect match between people and job is still challenging. New ways must be invented to create new metrics and reduce the disillusion. • Support basic academic research • Do smart taxes Taxes can reduce the amount of undesirable consequence (health, education…). Economy is changing and taxes must adapt (companies doing business remotely, taxes on robot...). • Welcome any Other ideas… A company called Knack has developed a series of games that can detect the players’ creativity, persistence, extroversion, diligence, and other characteristics that are hard to discern from a resume, or even a face-to-face interview. For instance, Internet was the fruit of US Defense Department research that wanted to build bombproof networks.
  31. 31. • Goals The company’s most senior executives must design the governance. Governance choose mechanisms that give the appropriate levels of coordination (prioritizing, synchronizing, and aligning initiatives across the company) and sharing (using common capabilities and resources, including people, technology, and data) for digital initiatives, in line with the company’s structure, culture, and strategic priorities. Governance is very helpful for global companies to find a way to collaborate more effectively across geographic locations, different units, and specialties. • Steering Committees These committees, consisting of some of the most senior executives in the company, make decisions such as ratifying policies, prioritizing competing interests, and killing low-value projects. • Roles & Responsibilities Committee can make decisions, but they cannot drive change. Leaders do that. It is necessary to put in place somebody in charge of leading transformation, whether that is a Chief Digital Officer or another leader. This leader creates an unifying digital vision and synergies around digital possibilities, coordinates digital activities, help to rethink product and processes for the digital age, and sometimes provides critical tools to resources. Such a leader should be helped in her or his responsibilities from committee or digital circle. Even with a strong, engaging, and clear vision, it is quite a challenge to conduct the organization’s effort in a single direction. Governance helps to steer the company’s activities in the right direction by figuring out who is in charge of the transformation and what kind of mechanisms should be put in place. It turns a cacophony into a symphony. 31 Governance Organization
  32. 32. Here an example of an organization chart in 2 phases. A. First, increase Digital Maturity by adding a CDO or an equivalent leader At first, the new role of Chief Digital Officer reorganizes teams to modernize, optimize, and integrate digital touchpoints. This affects the roles and objectives of marketing, social media, web, mobile and customer service, as well as how these typically disparate groups work in harmony. The ambition is to make their businesses relevant in a digital era while growing opportunities and profits, as well as scaling efficiently in the process. But work with other business units stay difficult (politics, culture, silos, conflict on some activities). The exact shape of the right organization structure is not yet clear. No single governance model is optimal for all companies. Governances are not statics and must be adjusted over time. In a complex company with many business units, and geographic areas, who owns the transformation can be a very difficult question to answer. Marketing? IT? Operations? All at once? Although it is unclear today, there is no question that the current governance will be dramatically modified. B. When a certain level of your Digital Maturity is achieved in all units, remove the CDO, replace the CMO, change the role of the CIO and Add a Creative Director There are many interconnected factors to consider when embarking on a transformation journey. So many, in fact, that overwhelmed organizations are looking to new CxO titles: Chief Digital Officer, Chief Mobile Officer, Chief Data Officer... But are these executives really needed? Is this the answer to the CIO and CMO failing to collaborate and work effectively? When a company has engaged his continuous transformation and has acquired a certain level of digital maturity, it can start to dispense with a single digital owner. This requires the profound changes of the existing roles and responsibilities in order to have a better symbiotic process between people. The CIO must also participate to important decisions and must be at the top executive group. • Install Project-Based organization Strong governance processes require an integrated IS-IT and business approach to conduct projects. Making business leaders accountable for the financial results of technology projects is one good way to ensure that IS-IT and business are in sync. 32 Organization Chart
  33. 33. • Choose governance and agility The goal of the governance is to understand and separate the role and responsibility of each unit in order to avoid the typical « everyone is responsible for the same thing » that slow the actions and decision-making. You must reinforce collaboration with agility. You need to separate low-value interactions between units that can be automated with the proper degree of governance. This provides greater agility and speed for each unit to focus on strategic initiatives, with better value. • Figures PHASE A. FIRST, INCREASE DIGITAL MATURITY BY ADDING A CDO OR AN EQUIVALENT LEADER TYPICAL ORGANIZATION CHART CEO C Product OCMO COO CFO Offline Cust. Experience Offline Marketing Offline Store Supply Chain Distribution Store Operations Applicative Infrastructure Buying Merchandising CIO Credit, Debit CDO e-Commerce Omni-Channel Online Cust. Experience Online Marketing Digital Info System Online Merchandising Digital Specialist 33 HR Director Training, advantages Recruitment Retention, Dismissal Production OPEX, CAPEX
  34. 34. PHASE B. WHEN A CERTAIN LEVEL OF YOUR DIGITAL MATURITY IS ACHIEVED IN ALL UNITS, REMOVE THE CDO, REPLACE THE CMO, CHANGE THE ROLE OF THE CIO AND ADD A CREATIVE DIRECTOR CEO Product Director Customer Director Operation Director CFO Customer Experience Marketing Omni-Channel Supply Chain Distribution Store Operations Buying Merchandising Credit, Debit IS Director Infrastructure Applicative Data & Analytics Creative Director Innovation Labs, Proof Of Concept Project Director Methodology, Agility Project Management 34 Art, Narrative, Game design HR Director New Type of Recruitment Company Values Employee Journey Production OPEX, CAPEX
  35. 35. 35 Agile - Project Organization Agile Definition Developers learnt how to work with agile methods. The mere presence of small islands of agility does not necessarily mean that the company is agile. The stake is to develop a flexible and innovate organization to set up its vision and to adapt to the rapid pace of our society evolution. The agile concept should be industrialized through the global organisation in accordance with all types of frameworks, to create a smooth and seamless path between CEO and clerks, strategy and delivery, projects and operations, business strategy and user stories. Transform a global organization can be a challenge itself (politics, culture, silos, conflict, resistances). ▪ What is Agile? Agile is a philosophy based on an incremental and iterative approach. Agile encourages constant feedback from people (customer, user, employee, sponsor, citizen, executive, …) and prioritizes most important requirements as quickly as possible. The objective of each iteration is to produce a working product. While Agile was traditionally created for software development, it can be used in many other projects and industries. It’s important to remember that Agile Software development was born from the principles of lean manufacturing and organizational learning. The advantage of an agile organization is to focus on flexibility, rapidity, constant evolution. However, it requests a solid knowledge in methodology to do agility than a sequential method. If not, it could be running with heads cut off. ▪ Agile Methodologies/Techniques Scrum is one of the most popular framework to implement an Agile process. Sprints, fixed-length iterations (Timebox), allow the team to deliver software on a regular basis. The Scrum board is reset between each sprint and is owned by one specific team. Kanban, meaning ”visual sign” or “card” in Japanese, is a visual technique that shows what, when, how much to produce (To-Do, Doing, Done). It promotes small and continuous changes. A Kanban board has the same column-based layout as a Scrum boar, but it requires a upfront planning. Lean applies manufacturing principles to software development, characterized by eliminate waste, amplify learning, decide as late as possible, deliver as fast as possible, empower the team, build integrity in, see the whole. Rational Unified Process (RUP) is a global methodology using iterative and adaptive framework.
  36. 36. ▪ Test-Driven Development (TDD) TDD is a test-driven development, relied on repetitive and short development cycles. ▪ Scaled Agile Framework (SAFe) TDD is a test-driven development, relied on repetitive and short development cycles. ▪ Rapid Application Development (RAD) RAD puts more emphasis on development than planning tasks. ▪ Traditional Methodology SAFe is a very structured method to industrialized lean and Agile principles. ▪ Hybrid Approach (Agile and Traditional) When comparing all frameworks, there is no definitive winner. The best framework depends on the organization itself. The reality on the ground is more complex. It must combine the principles of Agile or waterfall and adapt the organization to scale more effectively. There are several methodologies with an Hybrid Approach. SAFe is one of them. ▪ Agile Industrialization and Project-Based Organization One of a possible approach is to have a Center Of Excellence and factories. COE encapsule the people and the processes necessary for the Factories to develop solutions in accordance with the Vision and the Strategic Themes of the company. 36
  37. 37. 37 More than 1 years to start or to deliver your transformation may lose the employee engagement and the business benefit. Things just change too quickly. By the time you have approved and launched, it will be obsolete. You must spread out agile- project-based culture in all of your employees to lead your transformation. Agile approaches with different frameworks (agile and traditional) help your organization to respond to the business needs through incremental and iterative work cadences. It will install quick cycle and daily meetings where cross-functional teams address challenges and apply improvements in real-time. With this approach, stakeholders provide feedback at much earlier stages, avoiding wasted time and effort. You must define a process to prioritize business outcomes throughout a business roadmap linked to the projects initiative in order to avoid bottlenecks. It will also kill low-value project.All developments develop solutions in accordance with the Vision and the Strategic Themes of the company. Agile IndustrializationCenterOfExcellence Backlog Business Map Epic Vision Strategy Themes Architecture Alignment UX/UI Release Management Quality and Inspection Technical Environment Partners Management DevOps Factories Program Iteration Program Iteration Program Iteration Demo System Demo System Demo System Feature Story Story Story Story Story Story Story Story Story Story Story Story Story Story Story Traditional Agile Executives Stakeholders Sponsors Product Manager Program Manager Project Manager Scrum Master Shared Team Architect External Partners Product Owner Agile Team Feature Feature
  38. 38. 38 ▪ Center Of Excellence (COE) The Center Of Excellence has a bidirectional connection to the business (to design the Epics and Features required to respond to the Vision and the Strategic Themes), and the Factories (to be aligned to a common direction). Vision / Strategic Themes provide the enterprise with the differentiators going forward from the current state to a future state. Customer Journey, in-store, international expansion, digital channels versus physical assets, 360° customer view, predictive behaviors… are part of the strategic themes. Program Manager manages the program team according to the goals, needs and priorities of the organization. PM helps the enterprise to define the transformation strategy, the vision and the strategic themes. Product Manager is the internal voice of the customer and works with customers and PO to understand and communicate their needs, define system Epics/features, and participates in validation. Shared Team is typically chartered to provide all tools to assist the agile development. These resources may include security specialists, DBAs, technical writers, IT operation personnel, UX/UI Designers... They cannot be dedicated full-time. Architect is an individual or a small cross-discipline team that truly applies system thinking. They define the overall architecture for the system, they help provide strategic technical direction that can optimize business outcomes. Program Iteration is a 10 weeks cadence-based interval for building and validating a full set of features. A PI helps to synchronize multiple agile teams and partners with the business values. Backlog Business Map Program Iteration Epic Feature Story Vision / Strategy Themes
  39. 39. 39 ▪ Factories Factories deliver user stories iteratively, within short period of 2 weeks in order to create a continuous collaboration between the delivery team and the business people. Scrum Master helps the self-organizing team achieve its goals. SM is a part- time role assume by an agile team member, project manager, or other individual. Product Owner is responsible for defining Stories and prioritizing the team backlog. PO validates that the Story meets acceptance criteria and has the appropriate acceptance tests, and that is otherwise meets its Definition Of Done. PO is a full-time job assume by a business owner or a representative of the business (Proxy). Team (5 to 9) are cross functional group of individuals who have the ability to define, build, test, deliver a high-quality solution and produce a demo every 2 weeks within a scrum organization. Backlog Epics, Features are used to describe the larger intended behavior. Features are broken into Stories to constitute the product backlog. Stories are not requirements; they are short, simple description of small piece of desired functionality, usually told from the user’s perspective and written in the user’s language. Scrum of Scrums meeting continuously coordinate dependencies of the Factories and provide visibility into progress and impediments. Sprint provides a valuable increment of new functionality, accomplished via a constantly repeating pattern: plan the iteration, commit to some functionalities, execute the iteration by building and testing stories, demo the new functionalities, hold a retrospective, and repeat to the next iteration (2 weeks). The last sprint of the program increment ( ) is to finalize the unfinished Stories (if required) and align all teams’ development. Daily Scrum Product Backlog New Functionality Sprint Agile Team
  40. 40. 40 ▪ Causes of poor IS-IT and business relationship What is clear is that they both have completely different modes of operation. Much of the tension relates to poor alignment of metrics and accountability. Their both responsibilities are different. IS-IT may be seen as a cost center incented to mitigate risk, and prioritize security, governance and control while business is responsible for revenue, growth and expanding opportunity. IT and Business Collaboration IS-IT do not understand business, and are too expensive or too long to deliver, slow digital initiative due to data security, quality assurance and other service-level agreements. IS-IT under pressure to execute quickly and sometimes beyond their abilities, may provide systems that do not meet the business needs. Projects can end badly in multiple ways, including removal of their technologic authority within the company. They become a repairing shop. Business are not discipline in their requests, are impatient, have unreasonable expectations, insist to make things in their own ways, focus on digital gadget instead of real business needs. Business users, becoming more technically proficient, may think to be the best expert to guide their ways. They bypass IS-IT assistance and decide to work with external digital companies. In some companies, CMOs spend more on IT than their CIO counterparts. Unfortunately, when Business units work without IS-IT, the technological system will fail to deliver a seamless customer experience. This will also create risk on data integration and security. Alternatively, it will growth delay and cost in delivering solutions. Whether it is social, mobile, print, kiosk, online, in- person, or through a myriad of other marketing, sales, service, and loyalty channels, many of these touchpoints are not necessarily well integrated internally. Yet, customers only see one brand. Whenever there is friction in the transformation process, it is largely due to the quality of the partnering between IS-IT and Business. In many companies, the relationship seems to be more like a trouble marriage than a smoothly functioning partnership. Chats are full of conflict, and little collaboration takes place.
  41. 41. 41 ▪ Fixing the IS-IT and Business relationship CMOs and CIOs must share ownership of goals and outcomes. Instead of business providing the requirements and IS-IT delivering the technology, people from both sides should work together to propel your business forward. Through transparency around roles and responsibilities, both sides can make smoother decisions. It is part of the governance structure. At the executive level, it is important to recognize that while they each hold different metrics, their incentives need to be adapted. You should balance self-advocacy with prioritized workloads to improve efficiency and reduce bottlenecks. Success will look different depending upon the objectives of each team. Projects, especially with new technology, should be managed with agility to have quicker feed back of the business so IS-IT can rectify problems. IS-IT should participate in every meeting to understand objectives and to provide inventive but realistic solutions, timelines, and costs. The CIO should get a respected seat at the executive table. Business leaders should be accountable for the financial results of technology projects. ▪ Chief Digital Officer At first, this role is essentially to solve the important digital challenges companies face. To succeed, the CDO needs to promote collaboration between business and IS-IT. If you hire such a profile, you will do it carefully because you want to avoid having new responsibilities overlapping with the existing scope of your CIO and your CMO. You do not want to have yet another silo that will add frictions.
  42. 42. Customer experience is one of the primary catalysts for businesses placing substantial investment in transformation. Customers do not separate their online experiences from their physical experiences (Phygital). They see products and services as a whole. With multiple media support, a customer becomes a « Cust’Actor », able to interact with the brand and to consult personalized information. ▪ Customers search for objective advice and compare, want to engage with brands that care, share feedback openly, good or bad. Millennial (born after 1980s) begin to have a very important impact on the retailers’ decisions. They are at ease with technologies. They want everything, at once. They use mostly a mobile through Internet. ▪ Marketing’s primary role has changed. Whereas it has traditionally focused on executing marketing communications campaigns, it is now spending more time listening for market and customer signals and responding in real time. ▪ To deliver a differentiated customer experience in large organization Spend time understanding how customers interact with products, services, channels, brand, infrastructure, and employees. Use digital technologies to increase customer engagement (investment). Put customer data at the heart of the whole customer experience with special and proactive offers, personalized deals and design predictive marketing campaign. Work to seamless align the physical and digital experiences, not replacing the old with the new, but by leveraging valuable existing assets. ▪ Client Engagement Customer Engagement is the emotional connection between a customer and a brand. To establish solid links between customers, companies do not have no choice but to equip themselves with innovative listening devices. 42 Business Customer Experience Heart Of Digital
  43. 43. ▪ Gamification Gamification is the activity to deliver fun and addicting elements found in games. It can be used to further engage customers and employees, to recruit top talent, to build brand loyalty, to create better employee training programs… ▪ Design Thinking Design Thinking is a process for creative problem solving on gaining a deeper understanding of design principles of human psychology, technology and society. It helps organizations learn faster. It focuses on 5 steps, Empathy (be the customer), Define (analyze information from Empathy step), Ideate (generating a lot of ideas to think outside the box), Prototype (some Proof of Concept), Test (test the complete product). ▪ Delivering an efficient Customer Experience is a complex task because Customer expectations increase substantially. Integrating new digital channels into existing operations can be organizationally challenging. The company must also keep its brand’s vision. Customer oriented does not mean customer drive. Decathlon, international sport brand, keeps organizing its shops for sport users only, even during the « back to school » period that welcome tons of parents buying clothes at good price for their children. « If we follow our clients‘ needs, such as parents, we would sell jeans and Playmobils today… Customer is not always right ». Suddenly companies can no longer count on consumer ignorance to protect their margins. Companies look at the consumers’ mind, how they use screens in each country, and also the associated behaviours across all screens to understand what is happening and how to optimize the User Experience (UX) or Customer Experience (CX), the User Interface (UI), and constantly improve the conversion rate and the customer satisfaction. ▪ Web Analytics Measure traffic of a web site such as conversion rate (% visits into orders); time spent; bounce rate (% quitting after seen only one page); number of pages visited; A/B Testing (page performance comparison page on several versions)… ▪ Search Engine Optimization (SEO) Set of « best practices » to improve constantly the positioning of a site in search results with criteria of indexation. W e b S i t e 43 Website Optimization
  44. 44. ▪ Mobile Smartphones and tablets (« Responsive Design » to adapt web sites to the size of the screen, « Mobile Friendly » to optimize navigation for mobile). ▪ Accessibility Accessibility to people with disabilities (help also for intuitive navigation at large). ▪ Performance A good load of speed gives a positive impact on the referencing and the traffic of the web site. ▪ Code Quality Good structure of the code CSS and HTML facilitate better research throughout search engines and take advantage of all the features of a site whatever are the browser and the operating system; the World Wide Web Consortium (W3C) is helping to propose international standards for the World Wide Web. Website optimization is now a relatively mature technology and it is still the most important digital asset for most companies. However, it is now starting to decline in importance as customers choose to review and evaluate their suppliers using other channels, such as social media and mobile. ▪ Social media journey is the ability to monitor social traffic, to trial social initiatives, to engage directly with social contacts, to grow a social presence, to influence decision-making. ▪ Long road to be completely adopted Many companies hesitate to organize their customer touchpoints around social while return on investment is unclear. They employ too small teams able to provide a fast response to problem social requests, to add positive comments, and to use social as an alternate channel for company news. Meanwhile, other companies, dependent on the younger generation, have been quick to put social at the center of their customer engagement strategies. 44 Social
  45. 45. ▪ For social to work The key challenge for marketers is to communicate social benefits to mostly sceptical company decision- makers. New metrics have to be developed to measure social activities (brand’s identity, Service Level Agreement (SLA) on Customer Service…). Social is essentially « free » (unlike advertising and other paid media) and it is now recognized that it can drive positive brand recognition and consumer purchases. Companies need to adopt social internally for external social communications to be effective with an internal company social media platform to facilitate internal discussion and provide content. A light touch is required. Authenticity is a key to customer approval. Speed is also the essence, because consumers have little patience. Tesco, Grocery retailer, is known for using humour and a certain irreverence in its social responses. Social is not the only technology with the potential to catalyze digital transformation. There are also real- time and mobile technology trends. The case for digital customer experience as it stands today was born through the rapid rise of social media and pervasive adoption of smartphones. ▪ Mobile-first Today, mobile is an intelligent tool with multiservice allowing payment, loyalty, and tickets… The need to rethink websites, apps, and e-Commerce from a mobile perspective is often lost in process or lower in priority than other initiatives like social media. But companies that do not engage towards an intuitive mobile journeys will lose customers who became « mobile-first », such as Millennial. 45 Mobile, Real-Time
  46. 46. Customer Journey To achieve your desired opportunity, every journey must consider the broader picture of customer behaviours. The exact nature of an organization’s digital transformation depends heavily on the degree to which it engages directly with the end consumer. « What is a customer journey? », « Where does it starts and end? » should be your first questions. After answering to these questions, you can then re-imagine the entire journey with all of your physical and digital channels. Start by making the customer journey as effortless and gratifying as possible. Make it easy for customers to find, research, buy, and be delivered from you. Indeed, a disjointed customer experience causes many abandoning journeys before customers can complete the desired task. You concentrate your effort where digital is fundamental. « Customer-first » touch is mostly digital. Customers start their journey on your website, move to mobile, search on Google, open a chat window with communities… In fact, by the time customers engage with you directly, they have almost done their pre-purchase decision-making, mostly throughout your digital channels. However, you must also follow the complete life cycle of a product or a service (inventory, traceability, shipping…) throughout this journey. At the same time, you must resist thinking about digital in terms of tools, platforms, QR codes, and all of the widgets coming next. 46 Any internal department that touches the customer during the lifecycle must collaborate to align transformation with the digital customer experience. People Journey Employee Journey Do not forget about your internal stakeholders: your employees. Engaging employees should be a central part of your transformation strategy. Experiences is developed and implemented with the complete spectrum of users in mind: customers and employees. Every employee is an internal user, critical to fostering superior customer experiences. To mobilize, you ensure that all employees understand the change. You communicate with all available digital platforms (video, enterprise social networks, webcasts, and intranets) and traditional channels as well. If you want engaged employees, you need to evolve your entire employee ecosystem (applications, tools, environment of work, and promotion of innovation…). You should consider that people might be interested in working where they want, at the hour they choose. High quality of employee experience increases personal investment in the transformation journey outcome. This in turn impacts both employee recruitment and retention, as well as the quality of candidates you attract, their productivity and how well they represent your company to the external audience.
  47. 47. 47 Your employees can communicate as they wish, with a few friends or hundreds of friends, sharing sensitive information easily with people inside and outside the organizations. You need to have a particular attention to resistance to change. Old habits die hard. People concentrate on their own priorities and they do not have a holistic view of company goal. Shifting to new realities takes time. For example, it is natural for managers to move into a mode of self-preservation to protect their role and that of the team at large. You should facilitate cross-functional work and redefine formal roles and responsibilities for each person. It is important to make everyone feel a sense of ownership in the process for transformation and to avoid typical political retention. Citizen Journey The public sector aims to create a favourable life environment for its citizens, visitors, and companies.
  48. 48. Let’s face it: transforming operations is « less sexy » than transforming customer experience. But strong operational capabilities are indispensable for exceptional digitally powered Omni-Channel experiences. Using digital technology as an opportunity creates a competitive advantage through superior and efficient productivity. A transformation of the customer experience can increase revenue while the operational process can reduce operation costs. ▪ Digital technologies benefits Technology makes automation possible that eliminates unnecessary activity (with robots…) and creates recipe to help workers (with Enterprise Resource Planning (ERP)…). Channel partners (suppliers, intermediaries, third-party service providers, vendors, workers, or customers) can share information on a real-time. Having a better control, companies can launch new products and experiment them in a sample of stores, getting rapid feedback on product performance. It can then reduce delay from design to commercialization (for example, 5 years in Automotive industry). It unleashes people from the constraints that once bound them. It decreases typical hard operational tasks. With quicker visualization, engineers identify better a piece of a machine, which needs to be fixed. It also allows adjusting changes in workload, machinery efficiency. With the integrated real-time data that is today digital technologies can provide, it helps the company to create a new metric for tracking and improving supply chain performance and quality. 48 Operational Process
  49. 49. ▪ Stakes Operational advantage is difficult to copy, because it comes from processes, skills and information that operate together as a well-tuned machine. Today companies, especially large ones and represented in several countries, are highly automated, but they are not full of general-purpose robots. They are full of dedicated, specialized machinery that is expensive to buy, configure, and reconfigure. However, that can change in the future whereas the robotics market is on the cusp of exploding. Zara, a Spanish clothing retailer, has a complete control over its value chain. They can move an item from design to the shelves in 6 weeks while traditional retailers can take 6 months. That speed allows Zara to introduce more clothing during the selling season. They have created substantial benefits by digitally linking every element of their supply chain more closely. Operations become better orchestrated while workers gain freedom to do some tasks outside the leashes of paper, desk, and office hours. With real-time sales information, they can modify the product assortment. If designers see that certain colors are selling better, or customers are buying a round neck instead of a V- neck, they can quickly redesign it with clear manufacturing instructions. 49 ▪ Internet Of Things (IoT) IoT is changing the landscape of how businesses gather data across nearly every industry, including manufacturing. IoT connects assets to process, system and people. It can self-diagnoses issues in order to optimize performance and reduce downtime. It can also improve worker safety and gain better workforce management.
  50. 50. Today’s exponential and rapid technological innovation is continually challenging companies with opportunities and threats to fundamentally reinvent the way they do business. Successful business models do not last forever. Not paying attention is an even bigger risk. Companies need a good understanding of their current business model. They must constantly look out for symptoms of business model change. They can then operate defensively or offensively. ▪ Types of impact Extension. It is the improvement of the performance or functionality of a product or process without radically changing it. Breakthrough. It is the alternative or the replacement of products or services. Companies may have to cannibalize their own revenues to survive. Disruption. It is the reinvention of a substantial reshaping of an industry structure. With its iPod (2001) and its iTunes store (2003), Apple changed the way people listen to, buy, and store music. They changed the rules of competition. Digital photography and smartphones made traditional business models obsolete. Kodak did not change quickly enough and did not survive. Fujifilm managed the digital assault by diversifying. Through Nike+, Nike has extended its current business model from providing apparel to providing new hardware with useful add-on services for its customers (Running App, SportWatch…). 50 Business Model
  51. 51. ▪ What happens when the content comes freely? Sales of music on physical media has continuously declined since the beginning of the 20th century whereas total units of music purchased still grow, reflecting an even faster increase in the purchases of digital downloads. So how did music disappear? The value of music has not changed, only the price and the support device. The total revenues to the record companies are still down 30%. ▪ Information is costly to produce but cheap to reproduce Today’s most advanced automatic translation services are applications that do statistical pattern matching over huge pools of digital content. It was costly to produce, but cheap to reproduce. The digital technology allows companies to support very important load increases without having to modify their organization. ▪ Start-ups Start-up comes to shake up the economic and competitive order established in domains such as the transport, travel booking. Indeed, they propose faster services and cheaper. 51
  52. 52. Technologies are not goals but Tools to get closer to customer, empower the employees, improve the internal operational processes, and provide customer’s data, available in real time, to the people and machines that need it. Having a strong Information System is the necessary prerequisites to succeed your transformation. ▪ Information System (IS) gives tools and processes to respond to global Business expectations. ▪ Using more Technologies tends to have higher levels of productivity. ▪ The beginning of the 20th century, companies invested, less on computer hardware and more on a diversified set of software and process innovations. For every dollar of investment in computer hardware, companies need to invest up to another nine dollars in software, training, and business process redesign. ▪ However, too many companies confuse digital advantage with the digital technologies themselves and start their transformation with the technology instead of thinking first to deliver greater value to customers throughout performed operations. ▪ When companies know what to achieve, they can start to overhaul legacy systems and information that will make the digital vision a reality. ▪ Only 25% of the IT expense is allocated its modernization. ▪ A well-structured digital platform Makes the platform more efficient, less risky, and more agile to adapt to the business. Helps to find data in real-time. Helps to roll out innovation quickly across a large and geographically distributed company. Provides clear information to decision makers. 52 Tools & Data Information System Information Technology IT Modernization Modernizing your Informative System can be a trouble activity. You have to balance your effort on maintenance, modernization and new development among a multitude of application (ERP, CRM, websites, mobiles…), infrastructures and data. Having a better control, companies can launch new products and experiment them in a sample of stores, getting rapid feedback on product performance. It can
  53. 53. ▪ How to fail Operate in silos  Systems are confusing, duplicative, and often tied together in complex and unknown ways. Make it more complex than necessary  Processes harder to change, harder to test, more prone to fail, and tougher to restore after it fails. Have too many third-parts engaged in installing, evolving or maintaining systems. Focus on the deployment of technology rather than its adoption by business users. Business and IS Department are not in synchronization. ▪ 4 Architectures A useful approach is to think a platform in term of architecture, a roadmap explaining the desired organizing logic of your business processes. Architecture management breaks up an Information System into coherent and multiple services (single behaviour) to move the IS to the right direction from business to software to infrastructure. Architects must be identified to be responsible for the consistent of the 4 architectures: functional architecture (business view), applicative architecture (software view), infrastructure (hardware view), and data (information view). Architecture must be reviewed constantly, especially during all the life cycle of projects, at different layers (from high level to precise level) to sustain consistency. When Information Systems are good, they enable to personalize customer interactions, perform analytics, optimize internal processes, manage seamlessly across channels, and have a single view of customers. Unfortunately, in many large companies, the existing IT is a mess of spaghetti and hard to be overhauled. A strong architecture management is then necessary. 53 Architecture You need to rethink completely your technology, the Old and the New, to know how you answer to the needs viewed during customers, employees, and data journeys. When you start your technological journey, resist the temptation to view digital efforts as a new way to execute old tasks. Today, technology is a great opportunity to completely rethink how you do everything, making it an integral part of your business objectives. Your hardware infrastructure, application architecture, data approach… should be reviewed. You readjust your UX/UI with your middle and backend infrastructure. You modernize or replace your applications of your backend, core system, websites and mobiles. You connect data with all business expectations. You revise and optimize your code with a new programming charter. You review your cycle of development, Quality Assurance included. You move systems or data to the cloud, without compromising security…
  54. 54. ▪ Technology investments have traditionally been about the back office (enterprise data and stock management, supply chain, finances, Human Resources Information System). Now, IS has to take care that an existing front office platforms may has been acquired with external digital agencies, often in haste, by the marketing department using their operational budget. ▪ When selecting a seamless Omni-Channel platform, it is important to choose a provider that has a big vision for the future of digital Information Technology (IT) solutions, which includes, in real-time, operation, sales (CRM) and call center. ▪ It is not yet clear exactly who will the next Omni-Channel leaders among a full of software that exist in the world market. ▪ Marketing and IT units need to collaborate closely with the others to ensure that business needs and technical architectures are in harmony. Companies exploit the possibilities offered by Omni-Channel Solutions, on cloud rather than on-premise, to communicate in real-time with customers across many digital and physical shops (online, mobile, point-of- sale, call center, display advertising, email, social media), devices (smartphones, tablets, laptops and desktops), and back-end (ERP, 3PL). 54 Kiosk Web Mobile Tablet Social Media Digital Channels Stores Call Center Physical Channels Order (OMS) eCommerce Platform Point Of Sale (POS) Product (PIM) Digital Asset (DAM) Warehouse (WMS)Transport (TMS)Production (PMS) Configure Price (CPQ) Customer Relationship (CRM) Financial (FMS) Human Resource (HRIS) Content (CMS) Payment Distribution Centers Retail Stores Transport Warehouses3PL Production Inventory / Fulfilment / Production Omni-Channel Solution
  55. 55. Social network, mobile, Internet of things, and every other modern digital innovation generate tons of data, yielding some astonishing statistics. If this kind of growth keeps up for much longer we are going to run out-of-metric system. By now, most companies recognize that they have opportunities to analyze this data as new insights, to raise productivity and business and to make smarter decisions in real-time (« Big Data »). Digitization of just about everything (documents, news, music, photos, video, maps, personal updates, e-mails, geolocation, social networks, Hashtags, Emojis, tweets, cookies, data from all kinds of sensors…) is one of the most important phenomena of recent years. In the past, traditional database and analytics tools could not deal with extremely large, complex, and fast moving data. Now, new tools are able to analyze huge amount of data in real-time (delegating to different devices, algorithm…). SQL stays the standard. Grocery retailers are combining their loyalty card data with social media information to detect changing buying behaviours. Facebook is using face recognition tools to compare the photos up-loaded with those of others to find potential friends of yours. 55 Data & Analytics Data Analytics With data, we can formulate theories and assumptions that we can evaluate to propose processes, concepts, predictions and solutions, but also understand better the past. When properly exploited, data can yield an extremely powerful and accurate indicator of future outcomes. Cyber Security As a result of the growth data, people begin to become suspicious to all companies, which know their private life. Companies should deal with these concerns to keep a good image to their clients. Besides, a numerous hackers attack the computer system of huge companies to steal information such as bankcards codes. Cyber-Security is on the main factors of the evolution of the big data.
  56. 56. The Internet of Things (IoT) or the Internet of everything is the ability of every devices to connect and transfer data to each other with a little or no human intervention. The estimated growth of this new revolution is expected to hit between 26 billion and 30 billion devices by 2020. Then, the data security will be a major challenge. Then, the best practices must be deployed on the programming interfaces, on devices, on connected network (intranet and internet). Intelligence and security agencies are combining data from social media, phone calls and texts to track down criminals and predict the next terrorist attack. 0 1 1 0 1 0 1 0 0 0 1 1 00 0 1 1 0 1 0 1 0 0 0 1 1 0 0 0 1 1 0 1 0 1 0 0 0 1 1 0 0 0 1 1 0 1 0 1 0 0 0 1 1 0 0 0 1 1 0 1 0 1 0 0 0 1 1 0 0 56 Artificial Intelligence / Machine Learning It is a « set of technologies that empower connected machines and computers to learn, evolve and improve upon their own learning by reiterating and consistently updating the data bank through recursive experiments and human intervention ». We are at the dawn of this technologies. AI is more Artificial than Intelligent. The Turing test (« developed by Alan Turing in 1950, is a test of a machine's ability to exhibit intelligent behavior equivalent to, or indistinguishable from, that of a human ») has not been conclusive yet. Data Journey Among the problems facing transformation, data represents the key to unlocking new customer behaviours and preferences. Complications arise in not only matching the mountains of data from social to owned customer, but also to disparate data sources with multiple architecture types, locations, international brands and technical protocols. Business needs reliable and flexible data sharing with partners and customers, without introducing proprietary protocols that are difficult to learn except being a data scientist. During the lifecycle of the data journey, you should find out which data are critical and which are noises, who owns data and who should own data, where data are located. So you can gather deeper learning about the broader customer journey. The focus is to find a balance between easy-to-use and the more sophisticated predictive analysis in a view towards providing a homogenous experience for the different people, systems and applications that need to access your data. Collecting customer data is not an easy task. It can present political dilemma.
  57. 57. Calibrate reward structures to drive employees’ motivation, productivity. Rewards should not be just financial but also on status, reputation, recognition, expertise, and privileges. 57 Sustainable Rewards Sustaining the momentum of a transformation is critical to long-term success. It requires building new foundation skills that will make the change possible, aligning reward structures to ensure that employees are motivated and organizational bottlenecks are removed. You also put in place an iterative review process (agile) to measure progress frequently. « You can’t manage what you cannot measure ». Having a proper measurement and monitoring system in place will provide company with confidence that the investments and the business change are bringing real benefits to company’s organization. Digital Circles should continue to study the « ultimate customer journey » every « x » months to adapt investments in relevant digital customer experience strategies. Monitoring A transformation is a continuous process. After each transformation realization, « Capability » should be reviewed, to redesign a new roadmap to transform « Leadership », « Organization », « Business », « Tools & Data », and so on. Iterative & Incremental
  58. 58. EXPERIENCE DATA / ANALYTICS OMNI- CHANNEL VISION CUSTOMER TECHNOLOGY OPERATION BUSINESS MODEL PLATFORM LEADERSHIP GOVERNANCE DIGITAL TRANSFORMATION NEW SKILLS INNOVATION OUT-OF-BOX INVOLVEMENT PEOPLE ROBOTJOURNEY If you want to continue this chat, please join me at: +1 (514) 430-6581 franck.martin.fm@gmail.com ca.linkedin.com/in/bahioka09 Bahioka IN S Franck Martin Transformation 58

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