6. What are the best practices
of digital transformation?
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Digital Transformation: what do we usually do?
• Break external silos by delivering enjoyable customer experience and ensuring smooth
customer journeys.
• Break internal silos by delivering continuous improvement and enabling agile activities.
• Build comparative advantage by reducing costs while simultaneously improving operational
efficiency thanks to digital technologies.
• Maximize business value by attracting large volume of active users and amassing large volumes
of data.
• Maximize business opportunities by digitalizing business processes, reaching to new customers
and discriminating prices.
• Disrupt existing business models by uncovering new business models made possible only by
digital technology.
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Engage Transact Service
2004: linear user journeys happening in silos
After
sales process
Physical World
Marketing
website
Commerce
website
Digital World
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Engage Transact Service
Digital World
Web
UnifiedExperience
Social
Mobile
2019: complex, cross-channels, without silos
Physical World
UnifiedExperience
POS
Warehouse
TechServices
10. What are the economics
of digital transformation?
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The DevOps miracle: is it really a novelty?
. High project velocity
. Short project lead times
. High product quality
. High client satisfaction
. Low production costs
. High team autonomy
. High team motivation
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Network effects: are they still at work?
Sources: https://link.springer.com/article/10.1007%2Fs11390-015-1518-1 and https://ieeexplore.ieee.org/document/6636305/figures
Facebook revenue (2004 – 2013)
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Disruption model: does it apply to digital?
Sources: http://web.mit.edu/6.933/www/Fall2000/teradyne/clay.htmland https://www.drift.com/blog/netflix-vs-blockbuster/
Christensen’s disruption model:
Nucor vs. Bethleem Steel
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What is catalysis?
Catalysis is the process of increasing the rate
of a chemical reaction by adding a
substance known as a catalyst, which is not
consumed in the catalyzed reaction and
can continue to act repeatedly. (Wikipedia,
June 21, 2019).
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What are the catalysts of digital disruption?
Disruptor Source of
advantage
Catalyst Cycle
Nucor
(steel mill)
Steel cost
(grade)
Delivery
(proximity)
Atoms
(Newton’s law)
Week
Netflix
(online
video)
Computer
efficiency
Bandwidth
efficiency
Algorithm
efficiency
Electrons
(Moore’s law)
Photons
(fiber tech.)
Information bits
(machine
learning)
Minute
Second
Instant
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How can we make sense of digital acceleration?
Metric Illustration
Gold digging t = 0 to 2019: 200,000 tons equ. 50 tons pa
2019: 2,800 tons pa or 56x
Years to 1B Facebook (2004 to 2016): 12 years
China (t = 0 to 1985): 4,000 years or 333x
CPU value 2019 value of an A12 iPhone CPU: $72
1972 value: $2B or 27,778x
Agility 2016 Amazon new feature cycle: 20 sec.
2000's standard cycle: 1 week or 30,240x
Big data 2019: 1 exa Byte created per day
t = 0 to 2003: 1 exa Byte: x not measurable
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As citizens and organizations, how can we act?
• Distributed leadership to make sense of rapid and permanent change.
• Agile organizations not only accepting but also enabling change.
• Inclusive culture helping spread innovation widely and share benefits equally.
• Strong ethics allowing to control the global impact of digital transformation.
• Integrated technologies leveraging a few Digital Transformation learnings.
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What successful DTs tell us – Learning #3
Adapt
There is no one single blueprint and strategy.
It’s about Business Agility, not only developer agility.
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What successful DTs tell us – Learning #4
Don’t reinvent the wheel
Don’t lose time on problems that are already solved.
Spend resources on solving problems that are
specific and unique to your business.
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What successful DTs tell us – Learning #5
Avoid heavy, monolithic solutions that provide all the bells and
whistles including many features they don’t need and are typically
sluggish and non-adaptable.
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What successful DTs all did - # Bonus
Build Digital Expertise, from Strategy to Technology.
Create a platform (people and tech) – not a bespoke “one-off” solution.
A platform that can go through silos, existing departments, business processes and
organizations as well as strategic changes.
For that, they invest in a well-designed, modern software platform:
• Offers digital teams the agility, adaptability and productivity they need.
• Covers common core capabilities required to build modern digital experiences
• Creates and delivers digital content at the core of every digital experience