CWIN17 New-York / Navigating the age of digital disruption
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The document discusses the imperative for businesses to rapidly innovate in response to macro trends impacting consumers and technology trends impacting businesses. It outlines key considerations for future-proofing businesses and unlocking value from past investments. Specifically, it recommends defending valuable parts of the value chain, better understanding profitable customer segments, and leveraging digital technologies to empower employees and maximize value. The document also provides examples of frugal and disruptive innovation approaches like open innovation and engaging partners to augment capabilities.
CWIN17 New-York / Navigating the age of digital disruption
- 1. The Imperative of Rapid Innovation Tony Fross, Rakesh Thaploo New York, September 25th #CWIN17
- 2. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 2 Macro trends that are impacting Businesses Time is a luxury, demand access to more and quicker information, expect seamless services embedded in their daily lives, embrace the ‘sharing economy’ Population shifts and the rising middle class in developing nations. New product, service, distribution and accountability models will be focused on consumers and communities Social media, mobile and wearable technology, IoT, advanced data analytics, 3D printing, robotics - changing the shape of our industry Industry 4.0 Scarcity of natural resources and need for more efficient, ethically sourced production while reducing waste; enabling a circular economy Health and wellbeing are critical drivers,, demanding new levels of traceability of materials and ingredients together with environmental sustainability Source: Rethinking the Value Chain, Capgemini & CGF
- 3. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 3 Technology trends that are impacting all businesses Advanced Analytics, Machine learning, cognitive computing & AI will change the personalisation landscape AR & VR will offer new more immersive channels to connect with customers IoT , for example used in smart packaging, will open up new sources of data and insight Biometric recognition will step change the security of data and the ease with which it is generated / accessed 3D printing will disrupt the supply chain for a number of core retail sub sectors Social message platforms will become the engagement centre for many services beyond chat Crypto currency and other payment innovations creating improve CX and open new business model opportunities Blockchain technology will be applied for new levels of supply chain traceability and transparency Drones, driverless vehicles and robots will transform distribution models Source: Rethinking the Value Chain, Capgemini & CGF
- 4. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 4 The overarching industry vision: consumer-driven value networks Muhtar Kent Chairman & CEO The Coca-Cola Company Motoya Okada President & Group CEO, AEON Co., Ltd. “If we do not understand and start to adopt this fundamentally different approach, we will struggle to create value and secure long term growth.” ‘More than ever, consumers are empowered. In business and society, we see networks springing up that are organised around consumers and their communities, and supported by new technologies and new business models Source: Rethinking the Value Chain, Capgemini & CGF
- 6. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 6 Future Proof My Business Unlock My Previous Investments Future proof the business by creating the new products, B2B and B2C experiences, and business models that will drive growth There are two key elements to focus on Unlock the value hidden away in prior investments by evolving the human, operational, product and business model development processes that are needed to do so 01 02 What?
- 7. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 7 Key considerations for future proofing 01 How might we defend attractive parts of the value chain from new entrants? How might we better understand, segment, and target customers that are consistently profitable? How might we create an ecosystem that improves “stickiness”? How might we fund changes in the business by improving efficiency through digital? How might we maximize the perceived value of my existing products? How might we leverage digital to better empower and engage my employees? 02 03 04 05 06 Future Proof My Business How?
- 8. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 8 Key considerations for existing investments 01 How might we unlock the promise of our existing technology and platform investments? How might we capitalize on partner inflection points (e.g., Core system updates)? How might we improve the product group’s agility and speed to market? How might we fund changes in the business by improving efficiency through digital? How might we enable mass customization without creating new products? How might we fundamentally change the Total Cost of Ownership (TCO)? 02 03 04 05 06 Unlock My Previous Investments How?
- 9. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 9 Frugal Disruptive Digital Innovation Use What is abundant to Create what is scarce ---------------------------- - For instance pooling excess truck capacity to enable excess to it through B2B market Place Engage and Iterate (Fail Fast & fail Often) -------------------------- -- Identify Needs, quickly produce good enough solution and then Iterate Sustainability ---------------------- -- Organizations need external Partners to Augment their Innovation Capabilities Open Innovation ---------------------- -- Become more open and willing to share clients with external ecosystem Where to start? Source: Capgemini Digital Transformation Institute (DT8)
- 10. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 10 Executive Leadership Store Associates Supply Chain Associates Corporate & Finance I want to my brand to be the recognized market leader in athletic apparel and footwear retail! I want to know what products are being marketed so that I can forecast an increase in demand! I want a consistent experience across all the tools that I use to service our customers! SampleUserPersonas&Expectations Customers I want relevant promotions and offers, and I want points when I purchase! Brand, Marketing and Loyalty Channel Sales Customer Care I want to go to a store to check out the options but buy from my mobile! I didn’t get the product I ordered: would like my problem solved now! I want a full understanding of channel sales, inventory and cost for financial planning! I want to increase first call closure rates to increase customer retention! I want to know more about customers when they walk into the store! I want to understand whether a customer is having an issue so that I can fix it! I want to know which product categories are selling well and which ones are not! I want to know whether certain products are prone to defects so that I can inform my manufacturers! I want to measure ROI on my Marketing spend! I want to use historical data for seasonal, category and promotional planning! I want to understand how escalations, re- opens and aging support requests are impacting customer retention! Use insights from echo system to create future model – (Retail Example) Managed Services Sourcing Model Agile – DevOps & Operational Efficiency Application Rationalization and Business Agility Cloud, Asset Lite & ServerLess Architecture Next Generation Customer Engagement Branch of the Future Foundational Transformational Digital, Mobile, Analytics
- 11. Key Levers to transform into future ready model Technology Disruptions EvolvingBusinessModels eCommerce Players Consumer Behavior Online Market Places Customer Journeys Automation & RPA SaaS / PaaS/ Serverless Architecture & “Asset Lite” Containers & Container Management Identity & Access Mgmt. Insight Platform Realtime & IOT Analytics Spatial & Journey Analytics EMPLOYEE PARTNER CUSTOMER Current State 1 2 3
- 12. Session’s Title | Date Copyright © 2017 Capgemini and Sogeti. All rights reserved. 12 Thank You!
- 13. Copyright © 2017 Capgemini and Sogeti. All rights reserved. 13 At the heart of it all…the empowered consumer connected to the web by 2025 87% tweets per second US consumers consider where a product is made before buying 5bn TRUST CONNECTIVITY SHARE OF VOICE SOCIAL NETWORKS SUSTAINABILITY 98,000 Greater reliance on social media for information gathering/sharing vs. traditional channels 56% of shoppers want to know where their food comes from of consumers want more meaningful interactions with brands 70% won’t buy from a company they don’t like 90% Source: Rethinking the Value Chain, Capgemini & CGF