What is Digital Transformation?
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Digital transformation (DT) involves aligning people, processes, and technology to enhance customer value and requires leadership that fosters a client-first, digital-first approach. It dispels common myths about costs and challenges, emphasizing the importance of strategic governance, people change, and effective budget management for success. A systematic approach to DT is vital, focusing on strategy formulation, human resource impacts, operational processes, and benefit realization.
What is Digital Transformation?
- 2. HELLODavid Broderick Director, Digital Transformation AgoActum - David.Broderick@agoactum.com Experience from 7 Digital Transformations Programs in Banks, Insurers and industry 2
- 3. Digital Transformation - DT Aligning People, Process and Technology to create enhanced customer value 3
- 4. DIGITAL FIRST LEAN AGILE CAPABLE LEADER People Transform to a flexible, agile workforce Change mind-set to client first Openness to Innovation Culture Change Data Driven Process Operational Agility Remove complexity Lean Six Sigma to identify constraints Openness to change Data Driven Leadership by Client needs not cost of process Technology No more silos STP Once & Done Easy Interaction through data sharing Analysis & Insights to drive Actions for processes and people 4
- 5. PEOPLE CHANGE ▸People change to client centric thinking ▸Walk in the client shoes – use Customer Journeys for directions ▸Innovate and change what hinders the client To achieve the change, you need to communicate it 5
- 6. PROCESS CHANGE ▸Reduce Operational Complexity ▸Deal with the elephant in the room ▸Change for better client experience Process change makes it simpler to serve the client 6
- 7. TECHNOLOGY CHANGE ▸Eliminate silos ▸Enforce Straight Through Processing (STP) and data journeys ▸Harness your data for actionable client insights Generally seen as big risk, as it comes last 7
- 8. LEADERSHIP BRINGS IT ALL TOGETHER 8 ▸Leadership walks the walk of client first, digital first ▸Communicates the change as it is happening to the organization ▸Encourages listening to the clients ▸Fosters cross functional employee work on the program
- 9. DT IS PROFOUND AND DEEP CHANGE Digital Transformation requires an evolution of the entire company because its elevating change outside the departmental silos, to a corporate-wide, cultural level 9
- 11. POPULAR MYTHS GOOD NEWS ALL ARE FALSE ▸Costs are huge ▸Technology is the biggest challenge ▸Delays are inevitable ▸Budgets will need to increase ▸Benefits Realized will be low 11
- 12. COST OF DT REFLECTS VALUE AT STAKE ▸Investment in DT should be proportionate to the value at stake: ▹ Estimate the value at stake ▹ Prioritize ▹ Take an End to End view ▹ Align the business portfolio to the new ‘Digital Normal’ Cost is different for every organization 12
- 13. TECHNOLOGY IS ONE OF THE CHALLENGES ▸Technology only supports the process changes that people will use. ▸Process and People change to more agile models is complex ▸Poor planning on change in people and processes appears during technology implementation 13
- 14. DELAYS COME FROM BAD GOVERNANCE, LEADERSHIP AND MANAGEMENT ▸Delays are caused by poor governance, leadership and management ▸Program governance needs to be invested for success ▸Leadership needs to champion Digital First ▸Management need to be accurate in reporting 14
- 15. BUDGET MANAGEMENT ▸Budget control / alignment to benefits is vital ▸Ensure budget is spent at start on strategy, people and process or technology will overrun 15
- 16. BENEFITS REALIZATION ▸Benefits can only be realized if they were in the initial business case for the transformation ▸Poor strategy at start, compounded by poor people change, poor process change and bad technology eliminates chance of good benefits being realized 16
- 17. “Failing to Plan, is Planning to Fail” 17
- 20. SYSTEMATIC APPROACH TO DT 1. Define the strategy and strategic alignment: where are we going? 2. Understand the human resource impacts: with and for whom? 3. Define the tactics and the processes: how do we get there? 4. Implement the transformation: what is the road map? 5. Realize the benefits: what did we gain? 20
- 22. DIGITAL TRANSFORMATION Observations from the front line 22
- 23. SHARE OF COST OF DT THAT LEADS TO SUCCESS 23 Strategy Formulation 15% Governance 12% Business Process Optimization 18%People Change 14% Technology 38% Benefits Realization / Closure 3% Strategy Formulation Governance Business Process Optimization People Change Technology Benefits Realization / Closure
- 25. HALLMARKS OF A DT ORGANISATION 25 Customer Experience Product and Service Innovation Distribution, Marketing and Sales Digital Fulfillment Risk Optimization Enhanced Corporate Control Seamless Multichannel Experience Whenever, wherever service propositions New Digital Products and Services Co-creation of new products Digital Marketing with higher return on investment Digital Augmentation of traditional channels Full Straight through processing (STP) and automatic provisioning Virtual Servicing and administration Improved targeting with customer insights Embedded / automatedrisk controls and risk profiling Improved real time management information systems and decision making Seamless integration into third parties Connectivity With customers, suppliers, employees Innovation Business Models Operating Models Products Automation Eliminating Human Non Value Add Labor Decision Making Analytics, Big Data
- 26. 26 THANKS! Any questions? You can find more at ▸ www.agoactum.com ▸ David.Broderick@agoactum.com