More Related Content Similar to Digital Mastery Key to Business Success Similar to Digital Mastery Key to Business Success (20) Digital Mastery Key to Business Success2. What do these companies have in common?
The Digital Advantage - Dreamforce_M
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2
3. What is digital mastery?
Digital Capability
Leadership Capability
Technology-enabled initiatives in:
Customer Experience
Leadership capabilities including:
Vision
Internal Operations
Governance
Engagement
IT-Business Relationships
The Digital Advantage - Dreamforce_M
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4. Mastering both dimensions is the key to achieving the digital
advantage
Nike: From Separate Initiatives to Firm-Level Transformation
1
1
DIGITAL CAPABILITY
Digital Product
Digital Product
Design
Design
Social Media
Social Media
Customized
Customized
Manufacturing
Manufacturing
+
2
2
FIRM-LEVEL
TRANSFORMATION
LEADERSHIP CAPABILITY
Digital Division:
Digital Division:
Nike Digital Sport
Nike Digital Sport
Digital marketing
Digital product innovation/design
Digital commerce (e/m-commerce)
Digital technologies (GPS, mobile, etc.)
Customer analytics
The Digital Advantage - Dreamforce_M
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5. Four levels of digital mastery
FASHIONISTAS
Many advanced digital features (such
as social, mobile) in silos
No overarching vision
Underdeveloped coordination
Digital culture may exist in silos
DIGITAL MASTERS
Strong overarching digital vision
Good governance
Many digital initiatives generating
business value in measurable ways
Strong digital culture
BEGINNERS
CONSERVATIVES
Management skeptical of the business
value of advanced digital technologies
May be carrying out some experiments
Immature digital culture
Overarching digital vision exists, but may
be underdeveloped
Few advanced digital features, but
traditional capabilities may be
Strong governance across silos
Taking active steps to build digital skills
and culture
The Digital Advantage - Dreamforce_M
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6. Digital mastery varies widely
FASHIONISTAS
BEGINNERS
DIGITAL MASTERS
CONSERVATIVES
The Digital Advantage - Dreamforce_M
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7. Digital Masters have significantly better financial performance
than their peers
Revenue Generation
Efficiency
Profitability
Market Valuation
+6%
+9%
-11%
+26%
-12%
+12%
-4%
-10%
-24%
+9%
-7%
+7%
Basket of indicators:
Revenue / Employee
Fixed Asset Turnover
Basket of indicators:
EBIT Margin
Net Profit Margin
Basket of indicators:
Tobin’s Q Ratio
Price / book ratio
The Digital Advantage - Dreamforce_M
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8. Some industries average higher mastery than others…
Telecoms
Travel and
hospitality
High
Technology
Average industry
digital mastery:
Retail
Pharmaceuticals
Banking
Consumer Packaged Goods
Insurance
Utilities
Manufacturing
The Digital Advantage - Dreamforce_M
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8
9. …but every industry already has digital masters
Percentage of firms in each industry by quadrant
The Digital Advantage - Dreamforce_M
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10. Digital Masters have a common Digital DNA
They invest in 100% of the elements of Leadership Capability…
Transformative Vision
Shared Vision
“Digitising P&G will enable us to manage
the business in real time and on a
demand-driven basis. We’ll be able to
collaborate more effectively and efficiently,
inside and outside the Company”
Vision
Chief Digital Officer
CDOs & Digital Unit
Chief Digital Officer
Shared Digital Units
Investment Committees
Governance
Promoting Change
Employee Participation
Investing in Skills
Engagement
IT /
Business
Innovation challenges
“The IT Team (...) now work hand in hand
with the Creative Media team.”
Digital Year
Shared understanding between IT
and business executives on role of IT
The Digital Advantage - Dreamforce_M
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11. Digital Masters have a common Digital DNA
…and they make strategic decisions on where to excel with digital capabilities
Focus Investments on
Where they Choose to
Excel Digitally
+
Combine Digital
Capabilities to Exploit
Synergies
Customer
Experience
In-store
Online
Social
media
Mobile channel
Unified Processes / Integrated Data
Process
Excellence
Supply-chain
Integration
Customer experience
Centralized
Ordering
New business models
Unified Processes / Integrated Data
Analytics
capabilities
Personalized Customer
experience
Online
On-premise
Unified Processes / Integrated Data
The Digital Advantage - Dreamforce_M
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12. How to drive digital transformation
Sustain the Transformation
Frame the Digital Challenge
Build Capabilities
Align Incentives & Rewards
Measure, Monitor & Iterate
Understand the Impact
Assess Digital Maturity
Develop Vision & Align Around It
Sustain
Engage
Engage the Organisation
Signal the Change
Mobilise at Scale
Evolve Culture & Adapt Work Practices
Frame
Focus
Focus Investments
Build a Digital Roadmap
Build Investment Case
Set up Governance Model
The Digital Advantage - Dreamforce_M
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13. In conclusion
DIGITAL MASTERY MATTERS
DIGITAL MASTERY MATTERS
IT MATTERS IN EVERY INDUSTRY
IT MATTERS IN EVERY INDUSTRY
ANY COMPANY CAN BUILD DIGITAL DNA
ANY COMPANY CAN BUILD DIGITAL DNA
TAKE ACTION NOW TO
TAKE ACTION NOW TO
CREATE YOUR OWN DIGITAL
CREATE YOUR OWN DIGITAL
ADVANTAGE
ADVANTAGE
The Digital Advantage - Dreamforce_M
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15. About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues of
EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers business
and technology solutions that fit their needs and drive the results
they want. A deeply multicultural organization, Capgemini has
developed its own way of working, the Collaborative Business
ExperienceTM, and draws on Rightshore®, its worldwide delivery
model.
Learn more about us at www.capgemini.com
www.capgemini.com
The information contained in this presentation is proprietary.
© 2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.