Digital transformation - Ready or (Probably) Not
1 like606 views
The document discusses the readiness of enterprises for digital transformation, revealing that only 10% of businesses are prepared according to a study involving 219 senior IT executives. It highlights the success of these 'pinnacle enterprises' in improving employee productivity, reducing costs, and entering new markets through strategic alignment and innovation focus. The document outlines a four-stage journey for successful digital transformations and promotes a readiness assessment process for organizations.
Digital transformation - Ready or (Probably) Not
- 1. July 12, 2018 Digital Transformation Ready or (Probably) Not
- 2. Proprietary & Confidential. © 2018, Everest Global, Inc. 2 Introductions Cecilia Edwards Partner Vlad Petreski Senior Consultant Alan Wolfe Senior Vice President Moderator
- 3. Proprietary & Confidential. © 2018, Everest Global, Inc. 3 “It’s not what I did the morning of, or the day before the game. It was 12 years of preparation.” Carli Lloyd Team USA soccer player Two-time Olympic gold medalist 2015 FIFA Women's World Cup champion 2015 & 2016 FIFA Player of the Year
- 4. Proprietary & Confidential. © 2018, Everest Global, Inc. 4 How ready is your IT organization to support your enterprise’s Digital Transformation?
- 5. Proprietary & Confidential. © 2018, Everest Global, Inc. 5 10% of Enterprises are Digital Transformation-Ready BusinessOutcomes Capability Maturity Pinnacle Enterprises™ 219 senior IT executives Representing 10 industries All medium and large enterprises (>$1B revenue) 21 identified Pinnacle Enterprises™ Digital Transformation Readiness Pinnacle Model™ Study Strategic Impact + Operational Impact + Cost Impact Processes + Sales & Delivery + IT Delivery Model + Innovation + Culture + Talent
- 6. Proprietary & Confidential. © 2018, Everest Global, Inc. 6 Digital Transformation-Ready Enterprises get results Cost impactOperational impactStrategic impact 95% of the Pinnacle Enterprises increased employee productivity between 10 and 30% In 86% of Pinnacle Enterprises, the IT organization enabled the enterprise to serve a new market or customer segment 52% of the Pinnacle Enterprises reduced costs within the business by more than 15%
- 7. Proprietary & Confidential. © 2018, Everest Global, Inc. 7 The Ready 10% | Three key differentiators of Pinnacle Enterprises Business alignment – The ability of the CIO to keep the IT team aligned with the business Focus on business outcomes – Understanding that the digital transformation is not a technology event but a business opportunity with real outcomes Support innovation – The dramatic shift from supporting operations to supporting real, high-value innovation requires a shift in focus and culture
- 8. Proprietary & Confidential. © 2018, Everest Global, Inc. 8 Business Alignment | Whose team are you on?
- 9. Proprietary & Confidential. © 2018, Everest Global, Inc. 9 Business Alignment | Ready CIO’s to keep the IT team aligned with the business Impact Area Activity Results Organization Organization Talent Outsourcing Culture Technology Organize for central control over execution Optimize by service delivered (horizontally, e.g. ERP, CRM, Knowledge Management) Optimize workforce based upon application lifecycles and complexity of IT Outsource to keep internal team focused on the business Collaborate across functions within the organizations (4-5 of scale where 5 is very accurate) Use XaaS to increase flexibility 95% 46% 90% 38% 95% 54% 81% 32% 95% 58% 86% 45%
- 10. Proprietary & Confidential. © 2018, Everest Global, Inc. 10 672150907 Support Innovation | Are you using all that’s available?
- 11. Proprietary & Confidential. © 2018, Everest Global, Inc. 11 Innovation | The shift is on supporting operations to driving real, high-value innovation Impact Area Activity Results Organization Outsourcing Innovation Innovation Innovation Technology IT organization is structured to support knowledge sharing and innovation Outsourcing is used to gain access to innovation Use innovation labs Have digital studios Create innovation funds Use XaaS to ensure constantly up-to-date software/ capabilities (eliminate pains of maintaining systems) 100% 81% 81% 71% 76% 67% 41% 36% 37% 27% 25% 35%
- 12. Proprietary & Confidential. © 2018, Everest Global, Inc. 12 Focus on Business Outcomes | What’s it take to win?
- 13. Proprietary & Confidential. © 2018, Everest Global, Inc. 13 Business Outcomes Focus | The Ready use technology to support business opportunities Impact Area Activity Results Technology Technology Technology Technology Sales & Delivery Outsourcing Use analytics to inform product offering Use analytics to improve customer experience Use analytics to gain customer insight Automate to increase speed of execution IT organization participates in the sales support effort Use outsourcing to increase flexibility (e.g., deal with demand fluctuations) 76% 26% 81% 76% 34% 40% 38% 40% 81% 100% 45% 90%
- 14. Proprietary & Confidential. © 2018, Everest Global, Inc. 14 Are you approaching digital transformation as a journey?
- 15. Proprietary & Confidential. © 2018, Everest Global, Inc. 15 Managing the Journey | Successful digital transformations have four stages Determine how far the current state is from the target future state Establish a clearly articulated shared business vision Design the approach to achieve the future state Execute design and continuously adapt to business needs Vision Setting Phase 1 Assessment Phase 2 Journey Design Phase 3 Execution Phase 4
- 16. Proprietary & Confidential. © 2018, Everest Global, Inc. 16 Stand by for Questions Get ready for Q&A
- 17. Proprietary & Confidential. © 2018, Everest Global, Inc. 17 Pinnacle Assessments™ | Where is your dot? Benefits of the Pinnacle Assessment™ 3-Step Process By engaging in an assessment of your readiness for digital transformation, you will gain an understanding of: Your level of readiness to either drive or be a major player in the digital transformation of your enterprise and a comparison to others who are achieving superior outcomes Your highest potential areas for improvement Pinnacle Practices™ used by high performers that could accelerate your readiness for the digital transformation Everest Group prepares a full assessment of both the outcomes you have been able to achieve and your maturity level leveraging your answers to the survey questions provided earlier A planning session to select the priority focus areas for the workshop Senior leaders participate in a 3 hour workshop with Everest Group to review the assessment and identify high priority next steps 1 2 3
- 18. Proprietary & Confidential. © 2018, Everest Global, Inc. 18 Are you ready? To ask a question during the Q&A session Select the Questions option located within your attendee control panel. Type your question in the box, then click the “Send” button. All attendees will receive an email with instructions for downloading today’s presentation. For questions or to learn more about how Everest Group can assist your organization, contact us using any of the following email addresses: – Cecilia Edwards: cecilia.edwards@everestgrp.com – Vlad Petreski: vladimir.petreski@everestgrp.com – Alan Wolfe: alan.wolfe@everestgrp.com
- 19. Stay connected Website www.everestgrp.com Blog www.sherpasinblueshirts.com Social Media @EverestGroup @Everest Group Dallas (Headquarters) info@everestgrp.com +1-214-451-3000 Bangalore india@everestgrp.com +91-804-276-4533 Delhi india@everestgrp.com +91-124-496-1000 London unitedkingdom@everestgrp.com +44-207-129-1318 New York info@everestgrp.com +1-646-805-4000 Toronto canada@everestgrp.com +1-416-388-6765 Sherpas In Blue Shirts