Results of the MIT and Capgemini Consulting global study with 400 companies around the world who different maturities and transformation approaches have a direct impact on profitability and growth.

1. Transform
to
the
power
of
digital
Digital
Transforma/on
Unlocking
poten/al
and
growing
profitability
in
Postal
Markets
Dirk
Palder,
Head
Postal
Services
Capgemini
Consul=ng
World
Postal
Business
Forum
of
UPU
Post
Expo,
Vienna
1rst
October
2013

2. 1.
Digital
Transforma=on:
The
basics
“Why
digi=sa=on
fundamentally
transforms
businesses?”

3. DIGITAL
TRANSFORMATION
IS
THE
INCREASING
ADOPTION
OF
DIGITAL
TOOLS
AND
PROCESSES
WITHIN
ALL
ASPECTS
OF
AN
ORGANIZATION
TO
RADICALLY
IMPROVE
PERFORMANCE
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
3

4. Digital
Transforma=on
facts
As
opposed
to
previous
industrial
revolu=ons
Digital
Transforma=on
is
mainly
driven
by
consumer
behaviour
and
demands
4
Business
perspec/ve
Tipping
points
Digital
usage
$1.3
trillion
expected
global
e-­‐
commerce
revenues
in
2013
5.1
billion
searches
each
day
on
Google
6
billion
hours
of
videos
watched
each
month
on
YouTube
Amazon-­‐CEO
Jeff
Bezos
buys
the
world’s
most
renowned
newspaper,
the
”Washington
Post”
Apple
announced
in
May
2013
that
its
App
Store
has
reached
50
billion
app
downloads
751
million
of
these
users
access
the
service
with
their
mobile
devices
Mobile
data
traffic
will
grow
26-­‐fold
between
2010
and
2015
More
than
50%
of
all
workloads
will
be
processed
in
the
cloud
by
2014
6
billion
mobile
users
in
2012,
China
and
India
account
for
30%
of
that
growth
80%
of
American
consumers
rely
on
their
social
networks
when
searching
for
products
to
buy
With
1.11
billion
members
the
user
base
of
Facebook
exceeds
the
popula=on
of
Europe
Source:
Press
releases
(2013);
company
websites;
Cisco
Visual
Networking
Index;
JP
Morgan;
Interna=onal
Telecommunica=ons
Union
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.

5. Quotes
on
Digital
Transforma=on
Without
doubt:
Digital
Transforma=on
is
a
major
challenge
on
CXOs’
agendas
5
“People
have
a
tendency
to
overes=mate
technology
in
the
short
term,
and
underes=mate
it
in
the
long
term.”
(Bill
Gates,
Microso0)
“I
can’t
think
of
any
industry
sector
or
company
which
is
immune
from
Digital
Transforma=on.”
(Andrew
McAfee,
MIT)
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.

6. Digital
Transforma=on:
Research
coopera=on
with
the
MIT
Capgemini
Consul=ng
and
MIT
have
teamed
up
to
analyse
why
some
companies
successfully
embrace
Digital
Transforma=on
while
others
fail
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
6
EXCLUSIVE
COOPERATION
WITH
…OVER
450
INTERVIEWS
WITH
IT
AND
BUSINESS
EXECUTIVES
…OF
MORE
THAN
390
COMPANIES
…MOST
OF
THEM
ABOVE
BILLION-­‐DOLLAR
REVENUES
1
Source:
White
Space
–
a
leading
ins=tute
for
market
research
in
the
consul=ng
sector,
2012
…THREE
RESEARCH
PHASES
FOCUSSING
ON
CORE
QUESTIONS
FROM
STRATEGY
TO
CUSTOMER
TO
OPERATIONS
TO
SKILLS
„DIGITAL
TRANSFORMATION:
A
ROADMAP
FOR
BILLION-­‐DOLLAR
ORGANISATIONS“
IS
RANKED
AMONG
THE
TOP
FIVE
BEST
PUBLICATIONS
IN
THE
LAST
10
YEARS¹.

7. Transforma/on
Management
Intensity
Digital
maturity
The
research
shows
that
digital
maturity
is
a
combina=on
of
two
separate
but
related
dimensions
–
digital
intensity
and
transforma=on
management
intensity
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
7
Digital
Intensity
Technology-­‐enabled
iniJaJves
in:
• Customer
Engagement
• Internal
Opera=ons
Leadership
capabiliJes
including:
• Vision
• Governance
• Engagement
• IT-­‐Business
Rela=onships
The
“What”
The
“How”

8. Digital
Transforma=on
framework
Key
result
of
the
partnership
is
the
Digital
Transforma=on
framework
which
incorporates
all
elements
of
the
“What”
and
the
“How”
needed
to
reach
Digital
Excellence
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
8
Itera/ve
Transforma/on
Roadmap
Digital
G
overnance
Transforma/ve
Digital
Vision
Digital
E
ngagement
Source:
Capgemini
Consul=ng-­‐MIT
Analysis
–
Digital
Transforma=on:
A
roadmap
for
billion-­‐dollar
organisa=ons
(c)
2011
Digital
Building
Blocks
Strategic
Assets
Digital
Investment
The
“What”
The
“How”

9. Digital
building
blocks
The
MIT
study
shows
that
organisa=ons
are
digitally
transforming
three
key
areas:
customer
experience,
opera=onal
processes
and
business
models
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
9
Customer
Experience
Opera/onal
Process
Business
Model
Digital
Capabili/es
&
Governance
Customer
understanding
Customer
touch
points
Top
line
growth
Worker
enablement
Performance
management
Process
digi/sa/on
Digital
globalisa/on
New
digital
business
Digitally-­‐modified
business
Digital
Building
Blocks

10. Digital
maturity
assessment
Digital
best-­‐in
class
companies
are
called
“Digira=”:
they
succeed
to
excel
in
the
applica=on
of
innova=ve
technology
and
manage
their
Digital
Transforma=on
simultaneously
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
10
Digital
I
ntensity
Transforma/on
Management
Intensity
FASHIONISTAS
DIGIRATI
CONSERVATIVES
BEGINNERS
...have
advanced
digital
features
in
silos
but
no
overarching
vision
and
coordinaJon
...strong
vision
and
governance.
Digital
iniJaJves
generaJng
measurable
benefits.
…
few
advanced
digital
projects,
coordinated
but
underdeveloped
vision
…
carry
out
some
experiments,
immature
digital
vision
and
culture,
liUle
innovaJons
“How is the firm
managing this
transformation?”
“What is the firm
doing with
Digital Technologies?”

11. Benefits
of
digital
maturity
Digitally
mature
companies
achieve
beoer
financial
performance
and
outperform
their
compe=tors
by
top
line
growth
11
*
Industry-­‐adjusted
average
performance
of
companies
in
each
quadrant
compared
to
sample
average.
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
Basket
of
indicators:
§ Revenue
/
Employee
§ Fixed
Assets
Turnover
(Revenues
/
Property,
Plant
&
Equipment)
Basket
of
indicators:
§ EBIT
Margin
§ Net
Profit
Margin
COMPANIES
WITH
STRONGER
DIGITAL
INTENSITY
(WHAT)
DERIVE
MORE
REVENUE
FROM
THEIR
PHYSICAL
ASSETS*
COMPANIES
WITH
STRONGER
TRANSFORMATION
MANAGEMENT
INTENSITY
(HOW)
ARE
MORE
PROFITABLE
Revenue
Genera/on
Profitability
Transforma/on
Management
Intensity
Digital
i
ntensity
Transforma/on
Management
Intensity
Digital
i
ntensity
FASHIONISTAS…
DIGIRATI…
BEGINNERS…
CONSERVATIVES…
+26%*
COMPANIES
CLASSIFIED
AS
“DIGIRATI”
HAVE
A
26%
HIGHER
PROFITABILITY
AND
9%
HIGHER
REVENUE
Source:
Capgemini
Consul=ng-­‐MIT
Analysis,
2012

12. Percentage
of
firms
by
digital
maturity
quadrant
Some
industries
are
moving
faster
than
others,
but
in
every
industry
there
are
digira=
already
outperforming
their
compe=tors
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
12
Percentage
of
firms
in
each
industry
by
quadrant:

13. InnovaJon
challenges
Prisa’s
Digital
Unit
Digital
DNA
Digira=
have
a
common
digital
DNA,
they
invest
in
100%
of
the
transforma=on
management
elements
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
13
Vision
IT/
Business
Engagement
Governance
• Transforma/ve
Vision
• Shared
Vision
• Digital
Tsar
• Digital
Units
• Investment
Commigees
• Promo/ng
Change
• Employee
Par/cipa/on
• Inves/ng
in
Skills
• Shared
understanding
between
IT
and
business
execu/ves
on
role
of
IT
Digital
ecosystem
Digital
Year
“The
IT
Team
(...)
now
work
hand
in
hand
with
the
CreaJve
Media
team.”
“DigiJzing
P&G
will
enable
us
to
manage
the
business
in
real
Jme
and
on
a
demand-­‐
driven
basis.
We’ll
be
able
to
collaborate
more
effecJvely
and
efficiently,
inside
and
outside
the
Company”

14. 2.
Digital
Transforma=on:
The
impact
“How
organisa=ons
transform
to
the
power
of
digital?”

15. Examples
of
Digital
Transforma=on
in
different
industries
Digital
Transforma=on
has
entered
industries
such
as
Consumer
Products
and
Retail,
but
does
it
also
impact
the
mining
industry?
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
15
“Be
the
first
company
to
be
fully
digital
end
to
end”
“Digital
has
been
a
catalyst
for
everything
in
the
company”
Angela
Ahrendts,
CEO
• Engaging
customers
with
social
media
• Digitally
enhancing
the
in-­‐store
customer
experience
• Strengthening
the
online
presence
• Unifying
data
globally
WHAT
HAVE
THEY
DONE?
• Governing
cross-­‐channel
consistency
• Engaging
employees
in
the
transforma=on
• Developing
new
skills
• Strengthening
IT-­‐Business
rela=onships
HOW
HAVE
THEY
DONE
IT?
“From
a
physical-­‐intensive
model
to
a
knowledge
and
technology-­‐intensive
one”
“Our
company
is
very
conservaJve,
so
changing
the
culture
is
a
key
challenge.
We
created
internal
innovaJon
awards
to
promote
new
ideas
and
encourage
our
workers
to
innovate”
Marco
Antonio
Orellana
Silva,
CIO
WHAT
HAVE
THEY
DONE?
• Developed
a
radical
digital
vision
• Invested
in
cultural
change
• Developed
new
skills
• Constantly
monitor
and
coordinate
ini=a=ves
• CIO
is
leading
the
change
in
concert
with
CxOs
HOW
HAVE
THEY
DONE
IT?
• Codelco
2.0
• Trucks
driving
themselves
• Opera=ons
controlled
remotely
• Informa=on
shared
real-­‐=me

16. 3.
Digital
Transforma=on:
The
drivers
“What
are
the
drivers
behind
Digital
Transforma=on?”

17. Key
technology
trends
These
emerging
technologies
redefine
the
rela=onship
between
humans
and
machines.
I
huge
opportunity
for
new
biz
models
based
on
privacy,
iden=ty
and
consumeriza=on
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
17
INTERNET
OF
THINGS
Market
size
will
be
$290
billion
by
2017
and
31
billion
internet-­‐connected
devices
will
exist
by
2020
Sources:
Research
and
Markets,
Mobile
Health
Trends
2013;
Intel
2013;
ABI
Research
July
2013;
AUGMENTED
REALITY
Es/mated
investments
of
$670
million
into
applica=ons
in
2013
and
could
reach
$2.5
billion
in
2018
AUTONOMOUS
VEHICLES
Nissan
promising
autonomous
car
produc/on
by
2020
BIOMETRIC
AUTHENTICATION
“Redefining
security:
Using
only
your
fingerprint,
IPhone
adds
a
new
layer
of
security
never
seen
before”

18. 4.
Digital
Transforma=on:
The
Threats
“What
are
the
drivers
behind
Digital
Transforma=on?”

19. Nike:
From
separate
ini=a=ves
to
firm-­‐level
transforma=on
Nike
has
already
started
to
develop
advanced
digital
features...
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
19
1
DIGITAL
INTENSITY
2
TRANSFORMATION
MANAGEMENT
INTENSITY
§
SOCIAL
MEDIA
§
DIGITAL
PRODUCT
DESIGN
§
CUSTOMIZED
MANUFACTURING
DIGITAL
DIVISION:
NIKE
DIGITAL
SPORTS
§ Digital
Product
Innova=on
§ Digital
Marke=ng
§ Digital
Technologies

20. Example:
checkrobin.com
Checkrobin.com
is
the
first
online
plavorm
in
transporta=on,
that
allows
for
a
fast,
flexible
and
simple
delivery
of
items
of
all
kinds
in
Austria
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
20
Delivery
details
and
final
des=na=on
Find
suitable
trip
Send
delivery
fast
and
cheap
DELIVERY
TO
GIVE
DELIVERY
TO
TAKE
Issue
trip,
just
a
few
clicks
Wait
for
queries
Take
delivery
along
and
save
money

21. 5.
Digital
Transforma=on:
The
Chances
“Why
Digital
Transforma=on
is
a
sustainable
revolu=on?”

22. Challenges
Key
challenges
of
digital
transforma=on
Managing
Digital
Transforma=on
bears
new
challenges
for
organisa=ons
Strategic
§ Reac=ng
to
disrup=ve
new
business
models
§ Mone=sing
digital
offerings
§ Managing
corporate
reputa=on
on
social
media
Opera/onal
§ Managing
open
innova=on
§ Maintaining
quality
of
service
from
offshore
/
outsourced
centres
§ KPI’s
to
ensure
execu=on
of
digital
strategy
Organisa/onal
§ Workforce
transforma=on,
finding
specialised
talent
§ Sharing
exper=se
across
the
mul=-­‐disciplinary
global
workforce
§ Achieving
management
engagement
Technological
§ Building
simplified,
adap=ve
systems
§ Processing
informa=on
for
enterprise-­‐wide
intelligence
§ Managing
security
22
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
Descrip/on

23. Design
around
customer
RELEVANCE
In
order
to
overcome
the
challenges
and
exploit
the
opportuni=es
of
Digital
Transforma=on
enterprises
need
to
follow
a
clear
Digital
Transforma=on
plan
23
Invest
in
Digital
Transforma/on
ini/a/ves,
What
&
How
Select
innova/ons
that
can
provide
business
value
now,
segmenta/on
Convergence
physical
and
tech
enabling
Envision
the
digital
future
for
your
firm,
customer,
process,
biz
model
Set
up
a
transforma/on
plan,
KPI
1
2
3
4
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.

24. 6.
Digital
Transforma=on:
The
conclusion
“Why
Digital
Transforma=on
is
a
sustainable
revolu=on?”

25. Summary
Behind
the
hype
Digital
Transforma=on
is
a
sustainable
revolu=on
fundamentally
changing
the
way
companies
do
business
Copyright
©
2013
Capgemini
Consul=ng.
All
rights
reserved.
25
Hype
Revolu/on
Digital
Transforma/on
is
hyped
Digital
Transforma/on
presents
a
challenge
Digital
Transforma/on
is
an
enabler
for
business
transforma/on
Digital
Transforma/on
holds
poten/al
for
all
industries

26. Dirk
Palder
Vice
President
Head
Postal
Services
&
Member
Global
Distribu=on
Leadershipteam
Phone:
+49
151
4025
2222
E-­‐Mail:
dirk.palder@capgemini.com
Twioer:
@DirkPalder
LinkedIn:
Dirk
Palder
• INNOVATION
• TRANSFORMATION
• POSTAL
SERVICES
3.0