Digital Transformation: “Making sense of the mess we made with it”

Artificial Intelligence, Business Model Innovation, Business models, Capgemini Consulting, Digital maturity, Digital Strategy, digital transformation, Innovation, Leaders, Leading Digital, Marketing, technology

 

This article originally appeared on SogetiLabs

 

Digital Transformation

It does not matter how big or small you are. Concepts of innovation are overwhelming your feeds on different social platforms. Over-hyped technology buzz-words and start-up (or whatever) approaches are knocking on our doors… but do they make sense?

 An important thing to remember is to start with your company goals and apply technology to achieve these goals. Not the other way around. A lot of companies are adopting different types of technologies, but have no clue about what they should do with it.

Let us start from the beginning. We are living in a Digital world. Technology is everywhere around us. With Digital going mainstream, we will talk about Digital Transformation.

In a nutshell: 

  “Digital Transformation is the collective noun of the movement, which intertwine the physical and digital world to better determine client, customer and target audience needs to deliver excellent products & services with an excellent digital experience by the use of new technology.”

If you ask me, Digital Transformation is the process that companies follow when applying new technology to reach company goals. It’s about having a strategic mindset of what you want to reach and then applying the fitting technology to get a step (or a few) closer.

Digital Transformation is a new way of developing / working / delivering for you and your company; but it improves those items on various aspects. Think about the possibilities for items like: Visibility, efficiency, effectiveness, value creation, speed, scalability, customer experience, product development, innovation and so on.

An important thing to remember is: Step out of all the rumors and think about your vision. What do you want to reach? Then apply the right technology, which supports that vision.

Another important thing to note is: Be where your target audience is. Let your company be inspired by the way your customers use Digital solutions and facilitate them in using it. Make their lives easier by adding value to the reason of your existence, your products and services.

Of course, Digital Transformation is going to change the way you develop / work and deliver. Of course, your business model will change. But it will change your business model in a way to get closer to the people you serve. Is it a bad thing? No way. It has always been like this and will always be. The only thing that changes is the trend or technology we are talking about. In a few years, you will only remember the following:

“Digital Transformation: The paradigm shift towards business as usual”

If you want to learn more about Digital Transformation and find out answers on questions like:

  • “What is Digital Transformation?”
  • “How can I use Digital Transformation in my advantage?”
  • “How to adapt/ implement a Digital Transformation Strategy”
  • “How can I offer solutions that serves the client/ customer need in 2020?”
  • “What is the relation between Digital Transformation & Digital Customer Experience?”

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SMAC Your Customer with Things & Services – A historic necessity unfolds

Business Model Innovation, Business models, Capgemini, Capgemini Consulting, Carlota Perez, Digital maturity, Digital Strategy, digital transformation, Expert Connect, Innovation, Inspiring, Internet of Everything, Internet of things, IoE, IoT, Leading Digital, technology

This article originally appeared on Capgemini ‘s Expert Connect “Capping IT off” blog in the category: Digital Strategies.

This blog post is a joint effort of SogetiLabs members Jaap Bloem & Rick Bouter.

Services companies nowadays extend the customer journey with products while product brands add services to optimize customer intimacy. Either way, digital does the trick and often sensors and smartphone apps are involved to gather and deliver information and functionality. Nissan has a special smartwatch for car functions, Philips now sells the Hue personal wireless lighting system, insurers offer personalized pricing based on driving behaviour and energy companies let customers profit from smart metering. Microsoft and Nokia specialize in devices and services, from Lumia Windows phones and navigation to XBOX Music and SmartGlass. ParkMe is the largest real-time car parker in the United States delivering physical space though digital information. One of the nicest examples of how a cross-industry ecosystem of digital things and services could function is the Microsoft HealthVault vision. And Motorola makes the case for password pills, adding swallowables to wearables like Google Glass.

PICT: Personal, Intelligent & Calm Things
When Kevin Ashton, director of the MIT Auto-ID Institute, in 1999 operationalized his RFID solution at Procter & Gamble, calling it the Internet of Things, he could only have dreamed of what an adolescent Internet of Things and Services – to quote Bosch – might economically mean. From 2015 on, trillions of dollars are projected by experts from McKinsey and Harbor Research, among many others. This is Bill Buxton’s ‘long nose of innovation’ in action and that has nothing to do with lies. For technological innovation to really take off always lasts a few decades, as we know from the work of Carlota Perez.

Unspecific names are used to denote the impact of digital things and services, ranging from the Internet of Everything (Cisco) to the Industrial Internet (General Electric), the Internet of Sensors and Actuators (Vint Cerf, Google) or the Web of the World (Marc Davis, Microsoft). Germans speak of Industrie 4.0, the new wave after mechanization, electrification and information technology.

From a consumer perspective the best way to describe what’s going on around the individual would be PICT: Personal, Intelligent & Calm Things based on PICTechnology, or Personal ICT, including Near Field Computing (NFC) rings and bracelets. Three years ago, the Georgia Institute of Technology delivered an article called The Internet of Nano-Things and indeed developments coming from the Manchester UK Graphene Institute will greatly improve what will be possible with digital things and services.

A Matter of Time
Some twenty years ago, back in 1995, MIT Media Lab director Nicholas Negroponte published a book that by its title says it all: ‘Being Digital.’ One major conclusion was already drawn after the first pages:  ‘computing is not about computers anymore, it’s about living.’ Years before, in 1988, Xerox PARC’s chief technologist Mark Weiser had started to talk about Ubiquitous Computing, aka Pervasive Computing, in the slipstream foreseeing pads, tabs and boards as the computers of the 21st century.
In December 1995 Weiser and his boss John Seeley Brown published their article ‘Designing Calm Technology,’ meaning that ‘technology recedes into the background of our lives’ and that it ‘informs but doesn’t demand our focus or attention.’ Technology that is both calm, non-intrusive and pervasive won’t happen as long as we prefer rich-media tools on sensor-packed touch devices with sound recognition and 100 million apps. Smartwatches, digital tattoos or Google Glasses communicating with intelligent things, among them our smartphone and our smartphone-on-wheels – the connected car or favourite exoskeleton – of course won’t mitigate distraction.

Calm technology might well be the greatest paradox, dilemma, impossibility, and naivety on planet earth. Fact is however that ‘we shape our tools and thereafter our tools shape us,’ in particular our behaviour. Over time, we get perfectly comfortable with digital things and services aimed at enriching and improving us, yet counter-productivity keeps crawling up from behind. People and their tools, human and machine should organically coexist and every extra may well be a time-consuming threat.

Kiss the competition goodbye with SMAC: Social, Mobile, Analytics, Cloud
From a business perspective it’s all about crying for attention and persuading consumers to buy services and things. Digital arousal – calm in itself, yet very persistent and cheap – effectively leads to excited and timely satisfied customers. This dynamism is the rationale behind BJ Fogg’s Persuasive Tech Lab at Stanford University. It can however be argued that a well-chosen mix of calmness and persuasiveness yields the most durable customer satisfaction. Embracing your customers that way involves SMAC.

A proper combination of Social, Mobile, Analytics and Cloud intertwines things and services for a splendid customer experience. It’s all a matter of what Michael Treacy and Fred Wiersema in their 1997 book ‘The Discipline of Market Leaders’ brought under the common denominators of customer intimacy, operational excellence and product leadership. The authors advised executives to focus and choose, but in modern digital times there is no choice: disciplined market leaders do all three and operate on the basis of SMAC. Social is a dominant digital force from 2004 on: Web 2.0, Facebook; Mobile from 2007 on: touch devices, apps, smartphone-on-wheels; Analytics effectively from 2010 on, since the first international workshop on MapReduce and its applications; and Cloud from 2006 on when Amazon Web Services were launched.

Tipping point 2015
The tipping point is now, 2015. This moment has been identified as tipping point in the development of things and services in an unsuspicious ICT Industry Study, belonging to a set of 21 sectorial explorations, published in the Spring of 2012 by The Industrial College of the Armed Forces at the U.S. National Defense University. Their report places the Internet of Things on the following timeline:

0-18 months from Spring 2012 onward – this period now lies behind us
The focus lies on mobile computing, and we will see an explosion of smartphones and tablets. Privacy and security remain tricky issues, especially in the context of cyber security and legislation. This has proven to be correct, including all commotion around covert NSA practices.

18-36 months from Spring 2012 onward – that is the present
Internet connectivity is expanding across the economy. In 2008, there were already more digital things than people connected to the internet. Indeed we see mobile devices assuming the function of intermediary between the current internet and the expanding development of things and services.

3-5 years after Spring 2012 – thus from Spring 2015 onward
The development of the Internet of Things is ongoing, and autonomous machine-to-machine communication, in particular, is evolving rapidly. The so-called Smart Grid (intelligent energy supply through feedback loops) will further develop and internet connectivity is becoming increasingly “ubiquitous” and “pervasive” in the cyber-physical world of people, things, services, apps and websites. After the smartphone and tablet explosion, mashups of intelligent things and services will define the next stage of Being Digital.

SMACT by Jaap Bloem Vint Sogeti

Digital Transformation: The paradigm shift towards business as usual

AI, Artificial Intelligence, Brian Solis, Business models, Capgemini, Capgemini Consulting, Didier Bonnet, Digital maturity, digital transformation, George Westerman, IBM, Inspiring, Internet of Everything, Internet of things, IoE, IoT, Leaders, Leading Digital, technology

Where back in the days technology, techies, were seen as weird people which every office needed for I(C)T development and maintance, this view has changes. We are now looking with respect to all kinds of self-made technology billionars of Sillicon Valley. Compared to the pre 2000’s, technology is a hot topic. There is a lot of noise around different elements and types of new technology. Whether we talk about 3D-printing, Augmented Reality, Big Data, Social, Mobile, Analytics, Cloud, (SMAC) + Internet of Things (SMACT), Wireless Power, Robotics, Computer brain interfaces, Human Augmentation, Artificial Intelligence (AI), Digital Customer Experience (DCX), all these topics are in the marketing buzz machines of big industrial leaders or even made on kitchentables by (as Chris Anderson called them) the makers of these days. Lets deepdive in the topic Digital Transformation:

  • “What is Digital Transformation?”
  • “How can I use Digital Transformation in my advantage?”
  • “How to implement a Digital Transformation Strategy”
  • “How can I offer solutions that serves the client/ customer need in 2020?”
  • “What is the relation between Digital Transformation & Digital Customer Experience?”

If you ask me:

“Digital Transformation is the collective noun of the movement which intertwine the physical and digital world to better determine client, customer and target audience needs to deliver excellent products & services with an excellent digital experience by the use of new technology.”

The reason  why I come up with this definition is as follows. Every company exist because it delivers some sort of value, in some sort of way, to some sort of audience. A lot of ‘some sorts’, you might say, and, you are right. But does your company knows, why they deliver what to whom? If you are thinking, on one of those point above I have know idea what I am doing, keep on reading. If you do this already, congratiulations, keep that position. On the other hand, who says that you are doing this already? You, or your client? That is right, keep on reading as well.

Digital Transformation refers to the use of digital tools, new technology to better define customer needs. When companies can define customer/ client needs in a better way, they can provide a better solution. A better solution, whether it is a product or service. Defining customer needs has always been the key activity in marketing. And, even this core activity has changed to ‘hang out’ on digital for some brands, defining needs is key. Because delivering what your audience need is the reason why you exist as a company. To build upon that, customers are getting more and more familiar with digital concepts. Adoption of new technology is increasing by wearable technology and so there is a shift of channel choise on the client side. For that reason companies should make sure that they deliver in the new JIT methode. In the right channel, on the right time, delivering the right solution for the customer need. That it, bottomline, what every new technology is about. Increasing your company to identify B2C/ B2B needs to provide them with better solutions.

The Guardians ‘s Howard King describes in his article called: “What is digital transformation?”  three key drivers of transformation:

“There are three key drivers of transformation: changing consumer demand, changing technology and changing competition. These, of course, are an ecosystem and it is always a convergence of factors that brings about changes in a market.”

There is no such thing as disruption

There is no such thing as overall disruption. The only thing we see today in different market segments all over the world is that companies deliver their belief in a different way then they used to deliver. The Digital way. The reason for this is, that they need to… Customers, clients and target audience groups can no longer be found in traditional channels. Therefor, companies need to change the way they deliver their reason of existance in other, non traditional, channels. And that relates also to another topic where a lot of people are thinking about these days: Digital Customer Experience (DCX).

But, even is Digital Tormation as a fall of business as usual, it tells us something else: “Digital Transformation: The paradigm shift towards business as usual”

Adapt or Die

And that, that is what I call: Digital Transformation. For that reason I will give you the same advice as my Sogeti ViNT colleagues. Design To Disrupt.

“Are you the one who is going to disrupt, or are you going to be disrupted?”

Here is the complete article on Slideshare

This is my point of view on Digital Transformation, now lets see how you can improve your digital journey!

Digital Transformation Strategy Review

Are you interested in the topic: Digital Transformation and how it impacts business and strategy? Take a look at the: “Digital Transformation Strategy Review” community on LinkedIn.

Leading Digital: top-down leadership is essential

Andrew McAfee, Business models, Capgemini, Capgemini Consulting, Didier Bonnet, Digital maturity, digital transformation, George Westerman, Inspiring, Leaders, Leading Digital, Massachusetts Institute of Technology, MIT, MIT sloan, technology

This post originally appeared on the Sogeti Labs blog

Only 6% of all companies focus on corporate digital transformation. These companies – mostly high tech and media groups – are driven by the convergence of mobility, analytics, social media, cloud computing, and embedded devices. The rest – 94% of the companies in our current economy –is simply not ready for the technology driven 21st century.

 Technology-and-telecom

The facts above are taken from the book: “Leading Digital, Turning Technology into Business Transformation”. The book, written by MIT’s Sloan Research Scientist George Westerman, Capgemini Consulting’s Senior Vice-President and Global Practice Leader Didier Bonnet & MIT’s principal research scientist Andrew McAfee gives an overview of the current digital transformation landscape. But it does not end there. Westerman, Bonnet and McAfee provided a 12 step roadmap that must support companies of the ‘old’ economy transform into real digital masters.

The question that makes us all think

Today I would like discuss some of the key questions in this book starting with the most important one:

“How can we enable and accelerate digital transformation in a fast changing technology landscape?”

Turning technology into business transformation

Let us first watch Didier Bonnet’s keynote during the Oracle Open World called: ”Leading Digital – Turning Technology into Business Transformation”. In this keynote Bonnet takes us on a journey through the book and presents important findings from his research.

 

If you only want to have a quick look through of his presentation, please find below:

Burberry vs. Me…

Maybe your question is: “How can I keep up with digital leaders such as Burberry?” Burberry and other successful companies entered the stage way before our company did. Let me first say that I understand your question. But every technology trend has its own early adopters. So it is normal that these companies are ahead of you. Secondly, when we look at the list of successful digital leaders, we can see that “Leading Digital” is not related to one single industry. Burberry, Caesar’s Entertainment, Nike, Procter & Gamble, and Starbucks, all of them are in different industries. The third comment I would like to make is: “You can do it too!” With the right ingredients you can start building towards your position as a “Digital Master”. To position yourself as a “Digital Master” let us first start with determine what you are at this moment.

 Four Levels of Digital Mastery

Digital maturity

When you want to lead digital, you must invest in both digital capability and leadership capability. Looking at the graph we can conclude that, if you have little of both you are a ‘beginner. When you have digital capabilities and no leadership capabilities you are ‘only’ a ‘fashionista’. When you have the leadership capabilities and no digital capabilities you are ‘conservative’. But, when you have both the capabilities of digital & leadership you can be called a digital master.

Top-down leadership is essential

Westerman, Bonnet and McAfee made a 12 step roadmap towards being a digital leader. If you want to reform not only your own business model but your entire business eco-system this is the way to go. So, if you are a part of the 94%, take a deep breath and start this journey. Step by step.

11777-CG-Leading-digital-panel-new_Beth_v06-(Transformation) for Retina

Sources

 Leading Digital Transformation Now – No Matter What Business You’re In – Didier Bonnet at Oracle Open World – Capgemini Group Youtube

 Didier Bonnet: Oracle Open World Presentation on #LeadingDigital – Capgemini Slideshare

 Image credits

Figure 1 – Trade and export me

Figure 2 – Capgemini Consulting

Figure 3 – Capgemini Consulting