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Digital Transformation: How does one go about it?

Digital Transformation: How does one go about it?. Anand Deshpande anand@persistent.com @ anandesh. Thank you for inviting me!. Thank you for inviting me!.

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Digital Transformation: How does one go about it?

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  1. Digital Transformation:How does one go about it? Anand Deshpande anand@persistent.com @anandesh

  2. Thank you for inviting me!

  3. Thank you for inviting me! Computer Measurement Group is a not-for-profit, worldwide organisation of IT professionals committed to sharing information and best practices focused on ensuring the efficiency and scalability of IT service delivery to the enterprise through measurement, quantitative analysis, and forecasting.

  4. Computer performance is characterized by the amount ofuseful work accomplished by a computer system or computer network compared to the time and resources used. Depending on the context, good computer performance may involve one or more of the following: • Shortresponse time for a given piece of work • Highthroughput (rate of processing work) • Low utilization of computing resource(s) • High availability of the computing system or application • Fast (or highly compact) data compression and decompression • Highbandwidth / short data transmission time http://en.wikipedia.org/wiki/Computer_performance

  5. In technology, response time is the time a system or functional unit takes to react to a given input.

  6. Question: When should you start counting?

  7. When Business makes therequest? When the IT Department gets the request? When Computer Systems gets the request?

  8. When Business makes therequest? When the IT Department gets the request? When Computer Systems gets the request?

  9. When Business makes therequest? When the IT Department gets the request? When Computer Systems gets the request?

  10. Today, we have a problem!

  11. Businesses are under pressure.IT Departments are not able to respond fast enough to business requests.

  12. We have all experienced fabulous customer experience that was possible only because of the innovative use of technology.

  13. For example, Customer Delight at the Apple Store.

  14. Or the “efficient” experience on the Amazon ecommerce site.

  15. or the sheer innovation in business models such as AirBnB or Uber.

  16. Founded in 2009, as of its last round of investment, Uber was valued at over US$40 billion and unverified reports claim the company is grossing several billion US dollars a year in revenues. http://www.wsj.com/articles/ubers-new-funding-values-it-at-over-41-billion-1417715938

  17. Born-digital Companies are the Benchmark for what is Enterprise Digital!

  18. How does one compete? 42000 130000 150,000 110 Mn 55 600 350,000 400 Mn Employees Employees Guests/Night Users

  19. Digital disruption inspires both fear and hope 1.8 Bn 148 Mn Active Accounts 130000 150,000 $8 Bn 600 350,000 $ 6.6 Bn Employees Active Accounts Revenue

  20. Are we at risk of getting extinct?

  21. Why Software is Eating the World … More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense. Many of the winners are Silicon Valley-style entrepreneurial technology companies that are invading and overturning established industry structures. Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.” The Wall Street Journal in August 2011

  22. There is a need for a transformation. Can IT keep pace?

  23. Enterprises are on a journey to leverage SMAC technologies to upgrade their infrastructureto improve efficiency and to reduce costs.

  24. SMAC driving IT Modernization • Virtualization • Cloud Migration • Application Rationalization • CRM Implementation • BYOD Implementation • Setting up big data warehouse • Setting up internal and external communities Efficiency and Productivity are the main drivers for Enterprise IT Modernization.

  25. Migration to the cloud and IT Modernization has the potential of reducing costs by over 30%.

  26. Enterprise IT Modernization is a big effort.Do we have to wait for it to complete? Will our customers

  27. Fundamentally, will IT Modernization ever lead us to Enterprise Digital Transformation?

  28. Emailon cloud or on premise … it feels the same!

  29. ` Transformation is primarily being effected in these three areas …In our sample, no company has fully transformed all elements… Speed and prioritization of building blocks varies by customer… MIT Sloan 2013 Digital Transformation Global Exec Study and Research

  30. “When companies adopt technology, they do old things in new ways; when companies internalizetechnology, they find disruptive new things to do.” Mark Zuckerberg, CEO Facebook

  31. Enterprise Digital Transformation Enterprise IT Modernization Enterprise IT Modernization and Enterprise Digital Transformation do not mix!

  32. IT’s approach is to build a complete solution

  33. Business will accept Starting with some incrementally getting to all.

  34. How does one go about a Digital Transformation?

  35. Six Facets of Digital Transformation 1 Software driven business Platform, not solution. Technology led, to transform the business model. Think Vision: Build to a Roadmap Disrupt with Technology

  36. Six Facets of Digital Transformation 1 Software driven business Design thinking to innovate Involve stakeholders, make it matter to business Think Vision: Build to a Roadmap Disrupt with Technology Involve All Stakeholders Focus on User Experience

  37. Six Facets of Digital Transformation 1 Software driven business Digital team: Domain experts, UX and full-stack technology. Agile: Incremental and iterative Think Vision: Build to a Roadmap Disrupt with Technology Build Incrementally & Iteratively Involve All Stakeholders Focus on User Experience Build a Digital Team

  38. Build bi-modal capability, operating at two speeds, with common governance 2 DIGITIZATION Small, Bite sized chunks ….Its a journey and not a destination… DIGITAL PROGRAM MODERNIZATION Big Efforts ….and we don’t have to wait for it to complete…. Business Demand Courtesy: APIGEE Time

  39. Data strategy is central to Enterprise Digital Transformation 3 Data Apps ERP Database Line of Diminishing Value Operating Systems Mainframe 1975 1985 1995 2008 2016 41

  40. What comes first -- Structure or data? • Structure First is Constraining

  41. Is the Data Path Chaos BLOCKING your path to a Digital Enterprise? 3 Despite decades of IT investments, most companies do not have a digital operating model because they could not scale integrations easily, an opportunity possible today with RESTful APIs. Public API’s Contact Center Smartphone Apps Website Apps Store/Branch/PoS Tablet Apps RESTful services BPO DB IM CMS DB ESB ETL Unstructured Information Courtesy: Ignite Service Design Forum

  42. API first approach speeds up your ability to deliver a Digital Enterprise 4 Website Apps Store/Branch/PoS Public API’s Contact Center Smartphone Apps Tablet Apps Task Specific Apps Process Specific/ Orchestration Apps Corporate Directory API and Services Platform Mobile Device Management, Mobile Container, Enterprise App Store, Enterprise App Management Console, App Orchestration Environment Standardized API Layer ShareInsights Persistent’s Data Stack 3.0 Solution API Handlers Search Technology SoR’s ERP, PLM, SCM…… Public Data Sources Cloud Data Sources

  43. Speed of Delivery is crucial 5 Establish a six-week rhythm. Deliver complete products (not pilots) incrementally and iteratively.

  44. Drinking our own cool aid !! Our journey • Our Company has nearly 8000 Employees • The team is globally distributed – across time-zones and geographies. • Most employees are tech-savvy, demanding programmers who have an opinion on everything. • We are a developer shop. Most employees are working on projects for customers. • The existing intranet was ageing. We decided to design it mobile-first, and also make it easy to find insightful information from the loads of data we had within our systems.

  45. The Setup Think Vision: Build to a Roadmap Build Incrementally & Iteratively Leverage Disruptive Technology Focus on User Experience Build a Digital Team Involve All Stakeholders • We set ourselves a 6-week agile rhythm for all the projects. • We setup a three level teams: • Infrastructure team • Middleware team • End user team • Release cycles were staggered by two weeks. • Released multiple apps that can be used by end-users in every 6-week cycle.

  46. Components of our Platform Shareinsights Dashboards Managed Mobile Apps Desktop App Widgets App Life Cycle Management – Enterprise App Store, ShareinsightsBigData Infrastructure Directory Search Enterprise Data Sources External and Public Data Sources Billing (MBS) Invoice (IMS) Leaves (LAMS) HRMS Travel

  47. Demo …

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