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Maybe I Was Being Prophetic …
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“Digital transformation is the
reinvention of business practices
to derive the maximum value
from digital technologies such as
social media, cloud computing,
mobile technology and big data
analytics.”Source: EIU Digital Transformation Report sponsored by Accenture & Pegahttps://www.pega.com/digital-evolution
Your Furniture Will Not Transform Your Business(You Have To Engage Your People To Do That – Technology Is The Easy Part)
X X
DIGITAL TRANSFORMATION ≠ (PROCESS + TECHNOLOGY) & STIR
Transformation = Fundamental Change In Value Delivery
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Operating model
Infrastructure Model
CIO sponsored
CEO sponsored
CXO sponsored
Bus model
Business InnovationRedefine Market NormsCompetitive Advantage
Business OperationsRedefine Productivity Effectiveness
Technical OperationsRedefine Price/PerformanceEfficiency
Different rewards … Different sponsors … Different prioritiesSource: Geoffrey Moore
“Business transformation means being prepared to change everything you do—but most importantly—how you think”
Even The Metrics Of Change Are Changing
Traditional View New World Order
Do things right!Do the right things!
(for the customer)Reductionist philosophy
Technology seen as a cost
Command and control
Change imposed
“Band Aid” Projects
Customer-centric growth philosophy
Technology enables outcomes & experiences
Collaboration and self-control
Emergent change
Wellness Programme
Supply-side economies of scaleNew network businesses
Leverage excess capacity
Not
Either-Or
it’s
Both-And
ProductivityResources
Value=
Exploitation
ValueLimited Resources
Optimised Outcome=
Exploration
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Seeking Real Transformation?
Silo’d Functional
Functions supported by processes
Processes supported by functions
From Traditional Line Management
To Processes & Services Management
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A Broad Framework For Business Transformation
• Dynamic link between these three dimensions
– Any missteps in one area will significantly impact the other two
– Move too far on one without sufficient attention to the others, and the initiative becomes lopsided
• Holistic perspective needed
– Many challenging levers to pull and coordinate
– Working all three areas together makes for long-term, sustainable success
Service Design
Outside-In
Systems Modernisation
Process & Decision Automation
Digital Platform Enablement
Understanding The Customer’s
Experience
Business Model Reinvention
Learning Organisation
CulturePurpose & People
Val
ue
Del
iver
y &
In
no
vati
on
Engagement & Co-creation
Leads to
Leads to
Core Capabilities & Partnering
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Chapter III
Set Scope & Develop Programme Plans
Understand Customers True Experience
Engagement & Co-Creation
Business Model Reinvention
Chapter IIChapter I
Executive Stakeholders Set Trajectory & Align The Politics
Set-Up
Develop Service
Propositions
Culture & Learning
Systems
Modernisation
Process
Automation
Digital Platform
Enablement
Core Capabilities & Partnering
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Co-Create The Appetite For Transformation
Chapter 1 – Laying The Foundations
• Communicating the future vision
– Compare with current trajectory
• Re-explore organisational purpose
– Rich picture exercises
• Simplifying the existing business
– Identify what’s common
• Service enable your functions
– Ready for the unfolding future
• Challenge the givens
– Hierarchy and reward systems
Functional Governance
Culture of
Learning• Baseline outcomes
• Cross-functional teams
• Map existing culture
• Develop self awareness
Systems Modernisation
• Componentise
• System of Record
• Service Level APIs
• Data Architecture
Current Customer Experience
• Voice of Customer
• Stand in the shoes of the customer
• Understand needs, desires & frustrations
• Start with why
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© Structure Talent Ltd, 2017
Engaging The Business To Rework Service Propositions Outside-In Is Core To Operating Model Design
Personas Context/Job To Be Done
Service Consumer/Customer Journey
Set Of Configured Business Capabilities
Implemented Through Processes, Applications, Information, Technology,
& Resources
Customer’sExperience
Service Proposition
Insi
de
-ou
tO
uts
ide
-in
Service Consumer Value and
Experience
Internal ViewRisk Reductionand Efficiency
MAGICInteraction Touchpoint
Engage your people to
co-create their future
Source: © Derek Miers of Structured Talent Ltd10
Chapter 2 – Operating Model Innovation
• Service design through co-creation
– “Big Tent” workshops
– Multiple cross functional teams made up of influencers/visionaries
• Challenge functional hegemony
– Performance metrics
– Organisational resources/outcomes
• Programme Management Office
– Prioritize experiences, when, why
– Assess against capability maturity
• Identify ritual changes in behaviour
– Let employees know your serious
Portfolio Governance
Engagement & Co-creation• Execs frame purpose
• Group effort
• Design the future
• Stealing others’ ideas
Process Automation• Model driven Processes &
Decisions
• System of Engagement
• Outcome focused analytics
Service Design Outside-in • Design ideal experience
• Compelling service propositions
• Blueprint governance & metrics
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Phase 3 – Ongoing Business Model Innovation
• Specialised customer experiences– Enabled by scalable and
adaptable services propositions – Each of which configures a set
of robust core capabilities – Which in turn combine lower
level capabilities
• Digital delivery– Enables the 24x7 experience – Personalized to customer
needs– Human touch to balance
control and adaptability
Executive Governance
Core Capabilities & Partnering• Organisational purpose
• Brand promise
• Ongoing refinement and industrialisation
• Leverage external resources with core
Digital Platform Enablement
• Customer collaboration
• Predictive & prescriptive
• New technology to enable compelling experiences
• Mining processes & decisions
Business Model Reinvention
• Adaptable operating model
• Organisational components
• Refined experiences by sector
• Platforms & Ecosystems
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It’s The Journey That Transforms
Pixie dust just doesn’t work like it used to
• Make it work; Do not outsource change
– Service providers can help; not lead
• Align the politics up front …
– Engage people with attitude / aptitude
– Engage the corporate hackers
• Soft issues are the hard issues
– It takes facilitation and methods
• How will you articulate the vision?
– What business are you really in?
• Or is it same old change tactics …
– … yet somehow with different results?
• How will you bring the people along?
– The right vision builds all the ideas and energy you will need for the journey
It’s all about the way you engage
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Thank You
Derek Miers
+44-7703-178500
www.mwdadvisors.com
@bpmfocus
