Tag Archives: Digital transformation

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Digital Boardroom (Digital Board Pack)

Category:EA Tags : 

As boardroom member or strategy executive, you have a need to follow the shifts in the regulatory, identify new ways apply new technology to provide competitive services, which require you to adapt and thrive under these evolving market conditions. Why not convert your next boardroom session to digital experience?

We help you with a Digital Board Deck – no longer powerpoints and old reports – the connected insigth brings data alive to your Boardroom. While you are implementing the strategy, you often need to divert, as changes still happen in the market space. What we can provide to you is a decision-support cockpit that allow business-executives get results much faster than classic BI projects, and which will allow you to understand cause-and-effect, simply to get a situational awareness to your position in business impact and strategy execution.

If you are business executives or strategy officer, you will gain by getting a near-real-time cockpit to the business operations and planning.

So if plant A is not working, or flight B is cancelled, then what is the direct consequence in terms of customers or segments affected? In a similar way, if projects are delayed, maybe not so much the cost focus is your main pain, but do we manage to get the goods delivered before season sales?

With the Digital Boardroom, we provide solutions for connecting data, to provide the dashboard of the large web of complex dependencies of information.

If you are interested in a demo of how we fast and agile may provide a digital boardroom, please contact us.

You may contact us for our solution, next-insight, to read more. We help to align long-term planning with short-term planning, which is an ongoing architectural process – and a digital process of information management. Long-live the digital planning. If you have questions, please make contact. We are a consulting house with senior profiles and business solutions; we provide deep expertise in digital planning, digital governance and process automation. We power your digital mood!


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Key Success Factors in Digital Transformation

Category:EA,Services Tags : 

Based on a conversation this week where the topic of digital transformation was discussed, we synthesized the following:

Many talk about ‘digital transformation’; fewer agree on what it means and doesn’t mean; and too few succeed in doing it!

Using the term as defined in our recent post, then digital transformation represents the change to a different business model where the future business achieves a different market position with (maybe radical) different services, offerings, delivery methods, locations and meet-up. Using this definition, a lot of organisations will today maybe work with digitization, but not the same as digital transformation. Companies that strategically seek to change the paradigm and business model are radically different than those companies which talk about digitizing some processes. To quote recent post,

 “Digital transformation is the strategy to execution toward a new business model which is based on a different paradigm, that it splits rather than fits the existing processes, and for that you need to map-out your future business model. Don’t start with your existing processes; start with your future operating business model!”

It becomes more evident that the discipline to succeed requires a top-down approach to define the target business model. Some may suggest that ‘digitization’ could be a step towards the ‘digital transformation’, however, if the digitization is based on fitting processes, and digital transformation is based on splitting processes, one will almost never lead to the other!  To succeed with digital transformation, there is at least a handful of key success factors to consider. Let’s discuss some of the important ones:

  1. Map-out your future business models. Digital transformation is about getting to the open-minded discussion of where we want to ‘move to’ in terms of future products, future services, future customers in order to innovate the business model. This has nothing to do with optimizing the existing business processes but is a pure forward-thinking exercise. As highlighted in the McKinsey Quarterly, organizations are embracing digital transformation to knock down traditional industry boundaries and disrupt conventional business models.
  2. Drive-out your business model for time and space. Digital transformation is also about exploiting digital advances and to couple digital technologies, then to use these advances and couplings to optimize the business model to eliminate or optimize the value chain and customer experience in time and space. This may be barriers or man-power works today, it may be self-service or differently delivered in the future. We often say, that Michael Porter is still valid reading, just to be seen in the new digital context! Eg. if one can deliver an email rather than a physical paper envelope, it opens a lot of future services and delivery models.
  1. Plan with Scenarios. No-one has the full insight to the future, so to plan and make it realistic often involves scenario-based planning or risk considerations. As discussed in the recent post, the quote of Dwight D. Eisenhower is still valid, “In preparing for battle, I always found that plans are useless but planning is indispensable”. We always recommend the exercise of information management to provide risk-based or scenario-based planning, which is typically where tooling such as  MooD or similar digital transformation suites can help. Reason is, that for a company to survive coming 3 or 10 years, it is hard to argue that no considerations of external threats, new technologies, emergent legislation should be not be considered. May well be that the forecast is poor and the prediction ends up being wrong or displaced, but planning as the preparation and improving the agility of what to respond as an enterprise is indispensable.
  1. Make it business-led on a digital platform. If you want to make an impact, try to avoid too many barriers. Focus on the strategic change with focus on strategy-to-execution. This is most easily accomplished by enabling the strategy-to-execution with modern technology. With a core focus on the strategy implementation, it is possible provide actionable insights. This may or may-not be solved with agile approaches, which is another topic.
  1. Be first in the game. Unless protected by borders or regulation, the front-runner is most often the winner. The only constant is the change – and as highlighted in the McKinsey Quarterly article, organizations are embracing digital transformation to knock down traditional industry boundaries and disrupt conventional business models. In other words, the first ones to see the potential of the new business model are likely given a better chance to reach it.

If you look for advise how to start and implement a digital transformation initiative, please do not hesitate to contact us.

You may contact us for our solution, next-insight, to read more. We help to align long-term planning with short-term planning, which is an ongoing architectural process – and a digital process of information management. Long-live the digital planning. If you have questions, please make contact. We are a consulting house with senior profiles and business solutions; we provide deep expertise in digital planning, digital governance and process automation. We power your digital mood!


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Digital leaders fuel innovation across the business

Category:EA,UK Blog Tags : 

In the latest Harvey Nash/KPMG CIO Survey 2017, which is the largest IT leadership survey at all, there is number of key take-aways! With 4498 responses from CIOs and technology executives across 86 countries, this survey outlines some of the high demands.

One of the main trends is the level of change they are experiencing has reached unprecedented levels, and increasingly it is coming from unexpected corners. Many technology executives are turning this uncertainty into opportunity. They are helping their organizations become more automated and digital, to navigate through unpredictable change, and to thrive in an uncertain world. This also aligns well with disruption, digital transformation, and the act of digital planning, rather than the specific plans.

A conclusion from above survey also reveals a clear divergence between organizations that are effective at digital transformation and those that are not (read digitization). CIOs at these ‘digital leader’ organizations are almost twice as likely to be leading innovation across the business. That is, ‘digital leaders’ who take the opportunity to work with disruption and dare a digital transformation, they will likely be leading the innovation processes across business.

Some of the key findings are: Two-thirds of organizations are adapting their technology strategy because of unprecedented global political and economic uncertainty, two-thirds! Almost 90% are maintaining or ramping up investment in innovation. That is the digital strategies are reaching new levels, and the single fastest growing tech skill in demand to succeed with this, is the enterprise architecture. IT projects are getting more complex, have unclear objectives, need to work under still more open-ended environment, meaning the importance of solid and living architecture is becoming a necessity for the digital leaders. Here we use the term enterprise architecture, as defined by Gartner,

“Enterprise architecture (EA) is a discipline for proactively and holistically leading enterprise responses to disruptive forces by identifying and analyzing the execution of change toward desired business vision and outcomes. EA delivers value by presenting business and IT leaders with signature-ready recommendations for adjusting policies and projects to achieve target business outcomes that capitalize on relevant business disruptions”.

So growing demand for enterprise architecture is not the static picture from two-three decades back. The evolving discipline of enterprise architecture is focusing on execution of change, planning with disruption and with a clear view on business outcomes. This requires not one-size-fits-all tools nor performance processes. It requires an open-ended approach where scenarios may be planned, business model may be expanded over time in an agile way, to be constantly validated and experimented before implemented (also referred to as a digital twin). And while planning for the future business blueprint, there will still be a large amount of legacy to be resolved or migrated.

The living architecture is based on a eco-system of connected insights. The pendulum swings back to central knowledge, democratized input, for all the dots that need to be connected in a larger enterprise, including products, services, strategy, business, applications and infrastructure.

We often advocate that for companies who are interested in enterprise architecture, make sure it is not an end in itself, but a mean to accomplish the digital strategy and innovation required to fulfil the digital planning. Clearly, the survey puts high demand on enterprise architects who can execute the strategy and provide a digital transformation. One may see the digitization as a pre-burner or enabler for the next steps, but if the paradigm of the business model isn’t changed, disruption not considered, nor if the digital transformation isn’t led by the business strategy, then it will have a hard time to sustain. This where we can help you!

We power your digital MooD!


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Start your digital service integration – introducing SIAM

Category:EA,UK Blog Tags : 

As we force ourselves into even higher gears of technological innovation, the trend in the market is to move closer to multi-sourcing and high-end services from best-of-breed suppliers; e.g. one supplier might be good at delivering People Performance Management, while another provider is excellent at providing Information Management. So instead of outsourcing all infrastructure and databases to one supplier, it may be attractive to partner with that vendor, who is e.g. leading in cutting edge solutions to People Performance Management and Information Management –  including all operations, maintenance and development.

For the organisation procuring such services from still more high-end providers there is a challenge of how to succeed with the management and administration of services, which doesn’t necessarily fit with each other. How to manage the multi-sourcing setup providing insight and accurateness of the information management of the different service providers.

The term to manage the multiple vendors to provide consistent services to the end-users is denoted Service Integration and Management (SIAM). The objective is to provide a single business-facing IT organisation, however, as these vendors deliver different types of services, the term services often gets blurred in discussions – and can often be quite different things! Hence, there is a pitfall in trying to establish a huge services framework as a theoretically based exercise. To succeed, we recommend building the services step-by-step as the digital governance is established in the  living architecture.

According to the research paper by Goldberg et al, SIAM is the discipline to procure and blend services from multiple external and internal providers. As the SIAM management eventually will have a cost, and the best-of-breed providers may be hard to compare with more traditional outsourcing providers, there may be a challenge on cost.

Many clients face different issues implementing and getting the SIAM layer to perform satisfactory. Simply to succeed with SIAM, the organisation needs to understand the architectural structure of the IT landscape, and how it is managed by delegating accountabilities of a digital governance. However, the main pitfall is still that most stakeholders are reluctant to buy ‘services’, e.g. if they have a preference for certain vendors, certain products, certain solution patterns. There is this paradox, as to succeed with service integration, you might have to go around services as a term. To establish an end-to-end SIAM solution you need to work on the digitalisation of the metadata and information management of the different vendors. To succeed with SIAM, you need to manage your sourcing assets with all the relevant dependencies as part of managing the digital governance. This is almost a prerequisite to manage SIAM as an ongoing digital process.

Before moving into SIAM, an organisation should consider many factors. We have listed 7 pieces of advice to succeed with digital services integration:

  1. Map out your Business Capability Map so you have a consistent view of ‘what does the business do’, and what is done where in the business

 

  1. Then map the business applications and business projects and other sourcing deliverables. This allows a direct coupling from IT to Business, and allows in parallel the business services construction. Try to avoid layers of academia and ‘noun services’, start building the typical orderings and offerings requested from stakeholders and end-users.

 

  1. Enable a digital solution of the management of the service integrator; managing the information exchange between own organisation and external providers. What is the live information you get from the providers to secure your information is up to date.

 

  1. Enable a digital solution of the management of the service integration, managing the information between the different providers. What is the alive information you need to manage the vendor?

 

  1. As the SIAM solution evolves there will be a living representation of how infrastructure relates to business applications, and development, and further into the business. Make sure this end-to-end model is clear, alive and governed using terms common for end-users (not the academics).

 

  1. Align the vendor management with the information management to align scope and expectations across the provider contracts. The information management should be an online living architecture which at heart supports the SIAM solution. Ensure silo-services and non-silo services are experimentally approached, validated, and approved.

 

  1. Get yourself an advisor who can help you to build the SIAM portal with an agile mindset. Most of the services and groupings of a SIAM solution must mature, the fastest route is to experiment, validate and grow. It is like a restaurant, where the services menu card is not ready day 1, but testing a menu card, you will see which services are asked for, in what type or spiciness, and what other meals could be composed from some of the same ingredients.

 

The integration of interdependent multi-sourcing services is difficult for many clients, but for those clients who manage the information management as a  living architecture with digital governance, it is a minor step. The challenges of assuming this is done by IT Service Management is often a too simplified picture, and the challenges to solve the services enabling before building the SIAM portal seems often academic with limited success and low impact. We advise to bring alive the digital platform using interaction in the planning and definition of the SIAM solution. This is the safest way to enable your digital services transformation.

We power your digital MooD.


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Digital Transformation – The Cultural shift is paramount

Category:Uncategorized Tags : 

Last month we met with CIO’s and EA’s to discuss the most important elements of succeeding with Digital Transformation. The first thing we discussed was the definition of a ‘digital transformation’ – to discuss and facilitate the discussion of how to differentiate it from ‘digitalization’. In essence, the following focuses on the transformation, not to mix up the two terms.

As ‘digital transformation’ at the heart it is about data and enabling a new business model, it is also about establishing a new culture. If ‘digital’ loosely means data, and ‘transformation’ means changing shape; then ‘digital transformation’ is about transforming the shape of the business model to use data smarter, i.e. it is about moving the organisation to a new paradigm where existing processes are ‘split’ rather than fitted and optimized to become data-driven.

This also brings us to the main take-away. We can enable a digital transformation faster with proper technology and roadmaps, but at the heart, it is about people and changing culture. To succeed with the transformation, time and space should be challenged, which will impact the culture in different ways  – and it will challenge managers in todays business operations.

This brought us to the second observation, if people are not freed-up to work with the new shapes, they typically drown in day-to-day activities focusing more on lean and continuous improvement. This is why many organisations decide to move transforming development to new sites or do acquisitions, as it seems too hard to change the prevalent culture.  

It brings to the surface the dialog of Schein versus Porter – is it the culture or the strategy that drives the change – What drives what? They main take-away seems to be that the culture shift is paramount to the change, if not, the transformation effort may dilute. If we want to change the culture, we need to consider how this should be ignited, proven and collectively accepted. Hence, the organization may have to challenge itself to step outside the comfort zone and challenge the type of earnings and offerings. A research by Warren Ritchie indicates, that innovation does not take-off by size of the company. On the contrary, most innovation comes from either smaller or very large corporations as they both manage the working culture with slack and innovation focus. But be aware, most large corporations may tell you they have an innovation culture, but they may mix-up the words of a culture of continuous improvement versus that of transforming the paradigm!

To example this, e.g. Spotify and other music streaming services decided not to invent a larger CD; and likewise, Philips who introduced the CD did get royalties from the former music cassette – they both changed the way services could be delivered – challenging the media, space and time. Is it likely that the organisation and culture of Spotify is different from that of the labs building hardware devices in the 90’s? – absolutely.

In a nutshell, different shapes of the business model, offering different services by use of new technology, time and space is the driver of the digital transformation. This will not circumvent continuous improvement of the existing processes of today’s operations, but it is not the same approach and success factors, see post. To succeed with a larger change, the shift of culture is paramount, needs to be addressed, but proper technology and approach may accelerate the pace in which your organisation can succeed. 

We can help you to plan the change, and may with our digital transformation suite accelerate the pace.

We power your digital MooD.


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From Watch to Move – Digital Transformation

Category:Services,UK Blog Tags : 

Very often, we hear the terms ‘digital’,  ‘become digital’ or ‘go digital’ as phrases for businesses being more modern and streamlined, however, it is clear from many articles and posts that people not necessarily mean the same thing with these terms. Largely spoken, they are all related to the two words

  • digitization and
  • digital transformation

However, digitization and digital transformation are also not the same thing, but even though these terms also are sometimes mixed-up, they may also correlate. This has recently been spotted in the great post by Jeanne Ross, try not to mix up these two words! However, they both belong to the digital agenda!

What is ‘digital’?

I have the age to remember the first digital watches – and how the CD-player as an innovation moved the music from analogue devices into the era of bits and ‘digital’ format – which eventually led to streaming of music data. And looking up Wikipedia (in English), it says that digital usually refers to something using digits, particularly binary digits; that was indeed the case of the CD-player versus the analogue voltage of record players. Now, the original meaning of the word ‘digital’ originates from Latin, which means typically finger or counting fingers, or just a finite number or digits. In other words, the simple evolution gives that digital is something that eventually ends up as a finite number of computerised bytes delivered somewhere of ‘some contents’ –  we may just call it ‘data’. So if we apply the definition that digital means ‘data’, then at its heart, digital is about the creation of data from hardware and software; digital is about the intelligent transportation of data; and digital is about the use of data to power smart industries and businesses!

With digital in the meaning of data from anywhere in the business, consequently, digital transformation may be seen as the ‘planned change’ to a future usage of ‘data’ involving new (sometimes disruptive) technologies. Hence, digital is an embedded ingredient of both ‘digitization’ and ‘digital transformation’. Digital is the key ingredient of Digital Governance.

Digitization

Digitization is often known from public sector, service sector and LEAN where the efficiency of the getting more ‘digital’ processes and lean processes by avoiding paper, snail mail, etc. is being achieved. Different companies are not all equally forefront in digitizing the business. Borsen recently posted an analysis of Postnord (Danish/Swedish mail provider, former royal post). In Denmark the public sector has achieved a higher digitization than the Swedish one. This has been achieved with a high management-focus on digitizing the work flow and citizen correspondence. In other words, the word ‘digitization’ involves standardizing of business processes and is associated and motivated by cost cutting and operational excellence; or as one could say, to do more of the same – just more electronically. It is not that these companies are passive, it is just that they don’t change the business model, but may watch the ‘new kids from the block’ introducing new games and business rules.

“Digitization involves standardizing business processes and is associated with cost cutting and operational excellence. In essence, it imposes discipline on business processes that, over the years, were executed by individual heroes in a variety of creative (but not always optimal) ways.” – Jeanne Ross

Digital transformation

Digital Transformation represents a higher degree of change. However, we would argue that the key differentiator is that it is based on a different paradigm! It ‘splits rather than fits’ the existing processes, hence, it is a top-down approach to transform a company from as-is to the next digital era.

“Digital transformation is the strategy to execution toward a new business model which is based on a different paradigm, that it splits rather than fits the existing processes, and for that you need to map-out your future business model. Don’t start with your existing processes; start with your future operating business model!”

To make a transformation into a digital company, you need to consider the new way such a future company can achieve a market place with (maybe radical) different services, offerings, delivery methods, locations and meet-up. Companies that strategically seek to analyse and build this way, will not only look for more electronic ways to do the business of today, but they will seek a new operational model to serve customers with a different supply chain and operating model. These companies realise that they have to move the business model to reach the desired outcome.

Both disciplines are valid

Both disciplines are valid, but they clearly work from different paradigms. We recommend companies who want to become digital to work with it strategically, then to drive the strategy-to-execution and make it actionable and achievable. It is a totally different exercise as to digitize existing processes!

Where digitization involves a blueprint of all the business capabilities, then to map the low-hanging fruit to digitize the processes in prioritized order, then the digital transformation starts with strategy and architecture and forward-thinking; then to make scenarios or risk assessments to map out the actionable insights.

One may see the digitization as a pre-burner or enabler for the next steps, but if the paradigm of the business model isn’t changed nor if the digital transformation isn’t led by the business strategy, then it will have a hard time to sustain. We often recommend in workshops to illustrate examples of both artefacts, simply to get to the open-ended dialog of ‘where are we heading’ versus ‘where do we want to move to’.

Clearly, to strategize and map out the actionable insights may involve implementation and change management. We can help you to succeed!

We power your digital MooD!