Digital Transformation opportunities and themes 2019/03 - digital consumption

Digital Transformation opportunities and themes from the DTI (2019/03) - Digital consumption

Feb 2022 - this post is permanently moved to https://architectfwd.com, my new site, and can be found here  - https://architectfwd.com/architecture/enterprise-architecture/digital-transformation/dti2019review/platforms/2022/02/01/digital-transformation-opportunities-and-themes-2019-03-digital-consumption/ please go and bookmark that site for all of my future content.

This post follows on from my previous posts on Digital Transformation opportunities and themes, this time focusing on the theme Digital Consumption.

The DTI assessment from May 2018 noted that the following are key themes that have emerged from the analysis of digital transformation across 13 industries (health, retail, professional services amongst others):

• Maximizing return on digital - discussed in a prior post
• Digital Consumption - discussed in this post
• Digital Enterprise - discussed in prior post
• Platform Economy - discussed in prior post
• Societal Implications - future post
• Unlocking Digital Value to Society - future post

Digital Consumption

Digital customers needs and expectations are evolving, and businesses / organisations serving these customers must adapt, primarily through

• Offering experiences rather than products and services. Customer experience is the number 1 priority. I must list the one that comes to mind first: Amazon principle, Customer Obsession: 
• Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.
• Hyper-personalisation. Customers expect services tailored and personalized for them.
  As an example, netflix offers a match percentage when viewing a show, though I sometimes question if it matches anything I want or just matches based on proximity to other shows I may have clicked over. Spotify has the ability to suggest songs or playlists based on other previous playlists and songs a customer has listened to, which helps to promote new songs and playlists ultimately improving the experience of the user.
• Ownership to access, where customers would rather pay for access-based models rather than purchase outright. Think of renting a movie via Apple Movies, or a Spotify subscription where you don't actually own any of the albums you listen to.

I believe the access-based model is becoming more prevalent, especially as platforms drive us to consume content, video and audio for a subscription fee, and more relevant is likely how many customers prefer that to buying a DVD, CD etc and not enjoying the whole album. The choice and flexibility in offering these experiences is highly desirable to older models of purchasing and ownership, just as an example. In my next post I'll discuss one the next themes, Digital Enterprise, with more on disruption and innovation of business models, operating models and how the DTI paper suggests new metrics should be added and tracked to gauge performance outside of typical financial indicators.

Cheers

Quintes

Quintes van Aswegen Togaf 9 Certified Architect, Professional Scrum Master I (PSM I) Certified

Connect with me on LinkedIn or Twitter

Digital Transformation opportunities and themes 2019/03 - platform economy

Digital Transformation opportunities and themes from the DTI (2019/03) - Platform economy

Feb 2022 - this post is permanently moved to https://architectfwd.com, my new site, and can be found here  - https://architectfwd.com/architecture/enterprise-architecture/digital-transformation/dti2019review/platforms/2022/02/01/digital-transformation-opportunities-and-themes-2019-03-platform-economy/ please go and bookmark that site for all of my future content.

This post continues my study of Digital Transformation opportunities and themes as described in the DTI assessment[1] from May 2018, primarily focused on what the DTI report describes as the Platform economy.

Themes

Just to summarise where we're at, the DTI notes the following are key themes that have emerged from the analysis of digital transformation across 13 industries, and I've worked through them as follows:

• Maximizing return on digital - discussed in a prior post
• Digital Consumption - discussed in a prior post
• Digital Enterprise - discussed in prior post
• Platform Economy - discussed in this post
• Societal Implications - future post
• Unlocking Digital Value to Society - future post

Let's dive in and work through what the platform economy holds.

Platforms

As described in the DTI report, value is derived from platforms in these ways..

• to drive transformed business models, through more frequent and complex interactions amongst businesses B2B platforms are requiring businesses to think about innovation and digital business models in new and disruptive ways.
  
• to help ecosystems expand,
  
  interconnected systems and new business models are increasing collaboration between businesses, partners, vendors and the businesses they support to drive highly complex always-on systems capable of supporting local, national and global business. Platforms even create means for other startups or established organisations to leverage those platforms to create services and integrations which could generate new revenue. Atlassian is a good example of that - app market places and plugin ecosystems allow others to leverage the popularity of the platforms to deliver new features or integrations which ultimately become revenue sources to those players.
  
• creating a win-win for industry and society,
  
  The DTI report notes a US$100 trillion value at stake from digital transformation, and it states society can benefit as much as the the industries.. We'll need to unpick that.

DTI further notes changes to Strategies and Operational capabilities, such as
a) changes to pricing models to outcome based objectives, and these may be especially important if considering the move from ownership to access-based models for some services or products.
b) strategies to position an organisation as having a platform mindset, especially for key services or product offerings. Confidence in the customer segment, new or existing, must be high to avoid the 'build it and they will come' platform possibly where there are no customers needing or wanting what has been built.
c) platform-driven innovation, which is especially important to innovate and provide a base for partners and customers to derive and even create further value.

The only thing I think I want to work through here is the win-win for industry and society, just to be clear on what the value to society is envisaged to be. I'll do that in another post.

Cheers

Quintes

Quintes van Aswegen Togaf 9 Certified Architect, Professional Scrum Master I (PSM I) Certified

Connect with me on LinkedIn or Twitter

[1] http://reports.weforum.org/digital-transformation/

Digital Transformation opportunities and themes 2019/03 - digital enterprise

Digital Transformation opportunities and themes from the DTI (2019/03) - Digital Enterprise

Feb 2022 - this post is permanently moved to https://architectfwd.com, my new site, and can be found here  - https://architectfwd.com/architecture/enterprise-architecture/digital-transformation/dti2019review/2022/02/01/digital-transformation-opportunities-and-themes-2019-03-digital-enterprise/ please go and bookmark that site for all of my future content.

Update 06 April 2019, my other post on the theme maximizing return on digital in the DTI report is available.

This post follows on from my previous post on Digital Transformation opportunities and themes, this time focusing on the theme Digital Enterprise and how innovation affects and influences business models, innovation and staff skills needed to succeed in the transformation.

The DTI assessment from May 2018 noted that the following are key themes that have emerged from the analysis of digital transformation across 13 industries (health, retail, professional services amongst others):

• Maximizing return on digital - discussed in a prior post
• Digital Consumption - discussed in a prior post
• Digital Enterprise - discussed in this post
• Platform Economy
• Societal Implications
• Unlocking Digital Value to Society

Digital Enterprise

Innovation and disruption are key to successful transformation into a digital enterprise:

• Business Models.
  Business models must consider distribution channels, customer segments (either existing or new), value proposition and even the Key Assets which could all be driven from new technology enablers. Cost could be impacted through platform, new technology adoption to provide streamlined or new capabilities into value stream stages.. disruption!
  
  The DTI summary notes that Business Models may be able to choose from one of these options to deliver and realise the promise of digital:
  1. Build - If there is time and capability to do so
  2. Buy - when wanting to own the market, open new markets or when internal capability is not mature enough
  3. Partner - thus leveraging the strengths of partners, including any of their key assets, channels or gaining access to their customer segments
  4. Invest - Invest in R&D, in key resources development or even in intrapreneurial initiatives within the organisation
  5. Incubate - invest in and incubate a separate or sub entity and apply startup/lean methods to iterate
• Operating Models.
  Delivering value requires an agile business operating model, in both core and supporting capabilities. Lean, DevOps and Agile methodologies and practices are being adopted in many business units, even those I work with now to reduce waste and increase business agility.
  
  The DTI summary notes the operating models vary amongst 5 key types, likely needing a post on its own. Of these models, the customer-centric operating model focussed on a decentralised organisation focusing on the frontline processes to be customer obsessed is crucial and likely the most obvious depending on the business' target client base. A frugal operating model using less and with constrained resources and funding is also important to deliver more without undue fixed expense or waste. Lastly I like the Open and Liquid operating model, centered around platforms for the 'sharing customer', access based models. The other 2 models noted is (a) Data-powered with a focus on analytics, and (b) skynet with a focus on manufacturing.
• Digital skills. Digital skills of staff and digital leadership are both crucial to delivering in a transformational environment.

DTI also suggests new metrics to monitor as part of key performance indicators. These include number of users, growth in registrations but also monthly active users, conversion rates and abandonment rates. Engagement is also key, with factors such as time on site, time on specific content, contribution metrics and of course customer satisfaction indexes.

These are exciting facets of the Digital Enterprise, and I am excited by this knowledge of innovation, strategy and planning around business models and being able to continue to architect business aligned technology enablement and solutions to improve and enable digital transformation.  

Cheers

Quintes

Quintes van Aswegen Togaf 9 Certified Architect, Professional Scrum Master I (PSM I) Certified

Connect with me on LinkedIn or Twitter

Digital Transformation opportunities and themes 2019/03 - maximizing return on digital

Digital Transformation opportunities and themes from the DTI (2019/03) - Maximizing return on Digital

Feb 2022 - this post is permanently moved to https://architectfwd.com, my new site, and can be found here  - https://architectfwd.com/architecture/enterprise-architecture/digital-transformation/dti2019review/2022/02/01/digital-transformation-opportunities-and-themes-maximizing-return-on-digital/ please go and bookmark that site for all of my future content.

Update 06 April 2019, my post on the theme digital enterprise from the DTI report is available.

This post follows on from my previous post on Digital Transformation opportunities and themes. The DTI assessment[1] from May 2018 noted a number of advanced technologies which would impact businesses, through enabling new capabilities and ultimately driving new value to customers and other stakeholders. This post touches lightly on one of the themes from the DTI assessment, and how it may further impact business and society.

Themes

The DTI notes that the following are key themes that have emerged from the analysis of digital transformation across 13 industries (health, retail, professional services amongst others):

• Maximizing return on digital - the topic of this post.
• Digital Consumption
• Digital Enterprise
• Platform Economy
• Societal Implications
• Unlocking Digital Value to Society

I will post on each of these themes aspects I find particularly insightful over a number of posts.

Maximizing return on digital

Investing in new technologies..

• ..creates new efficiencies, through modernising, improving or streamlining business processes and optimizing use and cost of assets and resources.
  
  Here I see value as follows. Technology such as cloud and AI can be used to improve value stream stages, and other efficiencies in business process redesign to make optimal use of technology in streamlined operations and reduction of costs.
• ..enhances customer experiences,
  
  Here I see the value delivered through omnichannel, new channels, enhanced process, product and solution value propositions which focus on delighting the customer and meeting high expectations of tailored service offerings. Think of cloud and how netflix delivers TV and film to any device, form factor and with video quality and an experience to suit the form factor.
• ..builds new business models.
  
  Investing in new business models is difficult and where faster moving startups excel, but finding new technologies to improve the channel, value proposition or delivery through technology providing, for example a platform as a key asset helps to drive revenue and open or expand customer segments. I plan on writing something up regarding the Business Model Canvas as another blog entry. The book "Business Model Generation" was so useful to me in understanding this area, and I hope to continue learning more.

DTI notes that Compound Annual Growth Rate for business spend on new technologies could rise 13% to $2.4 trillion through to 2020! Growth areas include 3D printing, robotics and IoT, and decreases likely in the mobile / social space.

DTI notes that some key enablers are required, such as building ecosystems of partners and suppliers, technology infrastructure build-out, agile and digital leadership, strong data access and management and forward thinking.

It is incredible to think how Digital Transformation can benefit customers and business, and how technology can assist in realizing these outcomes! In my next post I'll discuss one the other themes listed in the Digital Transformation Initiation report - Digital Consumption.

Cheers

Quintes

Quintes van Aswegen Togaf 9 Certified Architect, Professional Scrum Master I (PSM I) Certified

Connect with me on LinkedIn or Twitter

[1] http://reports.weforum.org/digital-transformation/

Digital Transformation opportunities and themes 2019-03 - DTI review

Digital Transformation opportunities and themes - DTI review (2019/03)

Feb 2022 - this post is permanently moved to https://architectfwd.com, my new site, and can be found here  - https://architectfwd.com/architecture/enterprise-architecture/digital-transformation/dti2019review/2022/02/01/digital-transformation-opportunities-and-themes-2019-03-DTI-review/ please go and bookmark that site for all of my future content.

Update 06 April 2019, my posts on the themes maximizing return on digital, digital enterprise around the DTI report are available.

Since gaining my Togaf 9 certification (Togaf is a framework for enterprise architecture that provides an approach for designing, planning, implementing, and governing an enterprise information technology architecture) I have been consuming a large number of Open Group white papers and that led to a renewed interest in what themes are surrounding Digital Transformation in the current environment. I am particularly interested in how new and advanced technologies intersect with innovation and new business models to deliver outstanding experiences to customers.

I have experience in Digital Transformation, particularly in relation to services and solutions which have modernised and / or transformed services and impacted stakeholders in valuable and meaningful ways, in industries such as Systems Integration / Plant automation, Bottling, ISV in mobile solutions and audit, tax and corporate secretarial, and in Government. I was therefore pleased to find the Digital Transformation Initiative by the World Economic Forum detailing some innovations and themes to which I could relate, and which I could further add to my tool kit.

The Digital Transformation Initiative

The World Economic Forum launched the Digital Transformation Initiative (DTI) in 2015 focusing on themes and opportunities relating to digitalization of business.

The falling costs of advanced technologies is a key driver for business to leverage these technologies to deliver new capabilities which can enhance value propositions, improve value stream stages and deliver new experiences to customers or stakeholders.

Technologies

The DTI paper notes that the following are key technologies impacting business:

• AI
• Autonomous Vehicles
• Big data analytics and cloud
• custom manufacturing and 3D printing
• IoT
• Robots and drones
• Social Media and platforms

The value which can be created for customers and businesses though the use of these technologies needs to be viewed in conjunction with impact to both business models and operating models. 

Themes

I'm keen to explore the technologies, themes and impact to business and operating models over a few posts. Stay tuned.

Cheers

Quintes

Quintes van Aswegen Togaf 9 Certified Architect, Professional Scrum Master I (PSM I) Certified

Connect with me on LinkedIn or Twitter

[1] http://reports.weforum.org/digital-transformation/