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Digital Transformation: Innovate, Integrate and Incorporate Emilie Ditton
Research Director, WW Mining and Asia Pacific Energy Insights
3rd platform has gone mainstream in ICT marketplace
3 Source: IDC ICT Spending Guide
(2P vs 3P for APJ), 2016
4
Lifting the Lid off Underground Mining Creating Visibility Transparency and Control
A Canadian mining
company
Brownfield gold,
copper and silver
mine in Bulgaria
Purchased in 2003
Investment was
based on achieving a
large margin
enhancement
6
Lifting the Lid off Underground Mining What they did
2x production, 0.5x costs: no increase in equipment
Integrating data, changing processes, interconnecting
decisions
Connecting Assets
Devices & People
7
Lifting the Lid off Underground Mining The three success drivers
Leadership Technology & Process
change Culture
Vision from the top
Focused on: -People
-Change management -Innovation DNA
Clear intent and strategy Avoid complexity Process change
Vendor engagement
What’s Next?
Digital transformation in Australia
Leading in 3D: Learnings from Dundee Precious Metals
Final thoughts
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
What is digital transformation?
Leadership Transformation
Omni-Experience Transformation
Information Transformation
Operating Model Transformation
WorkSource Transformation
DX in Australia
DX will help
us compete
differently
48.9%
Information
DX is most
critical
79.9%
Open
innovation is
a focus
65%
The CEO
believes IT
will transform
the business
49%
IDC C-Suite Survey June 2016, AU n = 201
The CIO is
leading DX
efforts
86.3%
Aim for IT to
deliver
business
innovation
as a partner
79.9%
2%
46%
35%
13%
4%
DX WARY DX TACTICIANS DX EMBRACERS
DX CHANGE AGENTS
DX V IS IONARIES
But IT is Not Ready….
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
Source: IDC, Leading in 3D Maturity Model Benchmark, 2016; n= 160 IT Executives, January, 2016
“Only 17% of IT
organizations
are effective
partners in DX”
9%
5%
COMMON IT ORGANIZATION BARRIERS TO LEADING DIGITAL TRANSFORMATION
People We do not have
enough people with the right skills
Culture We do not have a
risk taking, innovation culture
Legacy Systems
We have legacy systems to support that consumer our
efforts
Incentive Systems Our current
evaluation system does not measure us
on innovation
33%
23%
28%
2%
Source: IDC IT Executive Survey, Jan, 2016, n=94
Partnerships Our LOB peers do not perceive us as adding
value in DX
Leadership Our IT leadership does not have the
right vision
What Are the Barriers Blocking Your IT Organization from Moving Forward?
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 12
The Three Hats We Need to Wear When Leading in 3D
13
Innovate with Business to Create a Digital Enterprise Goal: Create an innovative and digitally competent IT Organization Focus: IT organizational development, talent management & innovation process
Integrate Digital Capabilities with Enterprise IT Platform Goal: Create a reliable, scalable and secure digital infrastructure Focus: IT service management and enterprise architecture
Incorporate New Techniques and Technologies into IT Organization Goal: Create a flexible and optimized IT infrastructure incorporating new tech Focus: Vendor sourcing, changing management and process change
Innovate: IT’s goals and KPIs
“Create an innovative and
digitally competent
organization.”
Focus on IT organization
development and talent
management:
IT must be a partner to the
business fostering IT-enabled
innovation
Talent is key
Create an innovation culture
focused on outcomes and multi-
tier digital revenue streams.
14
Lessons from Dundee
Precious Metals: • Understand where it is you are
trying to get to. Have a vision.
• Engage in the ecosystem
• Creating new revenue streams
Integrate: IT’s goals and KPIs
Focus on creating stable
business services:
Broker, integrate and
orchestrate delivery of IT
services.
Implement cross functional
DX program management.
Deliver enterprise
applications
15
“Create a reliable,
scalable and secure
digital infrastructure.”
Lessons from Dundee
Precious Metals: • Innovation does not need to be
complicated.
• Collaborating across cross
functional teams
Incorporate: IT’s goals and KPIs
Focus on IT and business
service management as well as
vendor sourcing and
management:
Modernize infrastructure to
support digital organization.
Drive innovation while running
current IT environment.
Incorporate new skills into
existing IT organization.
16
“Create a flexible and
optimized IT
infrastructure.”
Lessons from Dundee
Precious Metals: • Put the foundation in place
• Create relationships with vendors
that are truly partners and deliver
value far beyond the contract
• This is a continuous process
For Success
It starts at the
top!
Partnerships
are critical
Look beyond
ROI metrics for
justification
Have a
roadmap.
Review
regularly
Fund from
efficiency
improvements
Process,
Process,
Process
@editton
www.idc.com
Emilie Ditton Research Director
WW Mining & Asia Pacific Energy Insights, IDC