Explaining the current digital landscape as the Digital Enterprise Wave, ride it or go under. Stop thinking business as usual. Start thinking digitally - design thinking, business model innovation, digital inside and out. Any org structure will work, but you need to change the culture, empower your people and encourage the right behaviours. Then some recommendations of how to do it, where and how to start.
Insurers' journeys to build a mastery in the IoT usage
Organisational principles for digital collaboration - keynote at Enterprise 2.0 SUMMIT London
1. Organisational Principles for
Digital Collaboration
David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter
Enterprise 2.0 SUMMIT | 26 November 2014
Driving Business Value
5. Agenda
• Business is changing:
– the current landscape
– the Digital Enterprise Wave
• Why organisational change?
• Using Digital & Social tools - How do you create value?
• How do you establish your Digital Thinking?
• What do you need beyond Digital capability?
• Why bother?
• Who should be involved?
• What are the key recommendations?
6. Hang on - can you explain
this new digital landscape?
24. We need “Digital” Thinking
Digital and Social inside and out
Business Model Innovation
Systems of Engagement
Design Thinking
25. McKinsey 7 “S” Model
Strategy
Skills
Structure
“Shared
Values”
Staff
Hard Systems
Systems
Style
Soft Systems
Integrates “hard” and
“soft” business
systems in a
structured way
“technology neutral”
Includes employee
engagement
Proven approach
Especially useful for
lessons in managing
major change
27. Why organisational change?
• The evidence is mounting – to make digital
truly work change is necessary
• The key is change of Mind-set and Culture
• I worry about some current thinking on
organisational structure….
• We need “Evolution not Revolution!”
28.
29.
30.
31. A Team-Based, Flat Lattice Organization
• Fairness to each other and everyone with whom we come in
contact
• Freedom to encourage, help, and allow other associates to grow
in knowledge, skill, and scope of responsibility
• The ability to make one's own commitments and keep them
• Consultation with other associates before undertaking actions that
could impact the reputation of the company
33. Hierarchy - Wirearchy
taking responsibility individually and collectively
rather than relying on traditional hierarchical status
http://wirearchy.com/what-is-wirearchy/
34.
35. Organisational Change
• It’s not about changing the org chart – many
structures will work
• It is about mind-set and values:
– accountability, transparency and honesty
– checks and balances
– fairness
– freedom to encourage, help, collaborate
– taking responsibility individually and collectively
– empowering employees
36. Total Value
Created
Bottom line = value creation
Increase
Revenue
Average Sale £
Sales Volume
Reduce Costs
Churn
Operating Cost
• Deeper understanding of customer needs
• Conversation with customers increases
attachment to business
• Increased marketing penetration at lower
cost
• Faster lead generation & customer
onboarding
• Faster understanding of product and
customer problems
• Pro-active customer retention
• Fast information movement and higher
levels of collaboration drives efficiency
• Higher employee engagement drives
effectiveness
Close
link
Digital Business Value Creation
Depending on the business, the
impact of digital transformation
will vary – but will drive
significant value
39. Establishing your Digital Thinking
Strategy
Skills
Structure
“Shared
Values”
Staff
Hard Systems
Systems
Style
Soft Systems
Integrates “hard” and
“soft” business
systems in a
structured way
“technology neutral”
Includes employee
engagement
Proven approach
Especially useful for
lessons in managing
major change
41. Structure
• Information flow must be fast and pervasive
• You must streamline decision making
• Faster time to market
• New teams, cross functional teams
42. • One of the largest bookmakers in the UK
• 80 year old company undergoing a major culture
shift
• Adopting a lean start up model
• Product teams include people who used to be in
marketing, IT, product management
• 4-6 week new product cycles
• Touch the customer within weeks – used to be 2
years
43. Systems
• Fast reaction time to important information
• Old processes & practices must be replaced
(and that’s not easy)
• New technology, but easy to deploy and use
• Digital and social at the heart of the business
process and creating value
44. Staff
• Must be on board
• Supported by management at all levels
Gallup State of the Global Workplace:
Worldwide, actively disengaged employees
outnumber engaged employees by nearly 2-1
45. Skills
• Understand the new policies
• Know what’s expected of them
• Know how to operate the new systems
52. What is your level of Digital Mastery?
- generate 9% more revenue
- create 26% more profit
- 12% higher market valuation
53. Who should be involved?
• Top Management, the C-Suite - essential
• Engaged employees – essential
• IT/the CIO – connect to the legacy
• Learning/proving by doing - essential
• Good outcomes for all - essential
54. with
Winners Of The 2014 Groundswell Awards
(Business-To-Employee Division)
Atos "Journey to Collaboration" / Zero emailTM program
• 76,000 employees now collaborating
• Sharing knowledge and expertise through 7,500 purpose built
communities
• 30% active users posting 10 collaborative notes per week/per
user
• Better knowledge sharing leads to faster response times and
more wins
• Reducing response time in some cases from 2 days to 45
minutes
• Operational efficiency gains by reducing internal e-mail overload
by an average of 60%
• Saving an average of 2 hours a day per employee
58. Key recommendations?
• Revisit your business model
• Revisit your value proposition
• Pilot, but in an area where there is
measurable business benefit
• Learn and adapt
• Roll out, bringing everyone with you
• Ensure everyone shares the benefits
59. References
http://en.wikipedia.org/wiki/Nicholas_Negroponte
http://en.wikipedia.org/wiki/Being_Digital
http://www.capgemini.com/resources/transform-to-the--power-of-digital
http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/
http://postshift.com/author/lee/
http://www.technologytransformation.com/High%20Perfomance%20Projects.htm
http://www.bonkersworld.net/organizational-charts/
http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svg
http://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/
http://www.gore.com/en_xx/aboutus/culture/
http://www.johnlewispartnership.co.uk/about/our-constitution.html
http://wirearchy.com/what-is-wirearchy/
http://blog.medallia.com/customer-experience/ceo-top-pyramid/
http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.html
http://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/
https://www.startwithwhy.com/
http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx
http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie
=UTF8&qid=1416926793&sr=1-1&keywords=leading+digital
http://www.businessmodelgeneration.com/canvas/bmc
https://strategyzer.com/value-proposition-design
Not for reading – just for reference