Capgemini Digital Transformation - Beyond the Hype

DIGITAL TRANSFORMATION
BEYOND THE HYPE

2Copyright © Capgemini 2013. All Rights Reserved
The Digital Advantage - Dreamforce_M
What do these companies have in common?

Digital Capability Leadership Capability
What is digital mastery?
Technology-enabled initiatives in:
 Customer Experience
 Internal Operations
Leadership capabilities including:
 Vision
 Governance
 Engagement
 IT-Business Relationships

Mastering both dimensions is the key to achieving the digital
advantage
Nike: From Separate Initiatives to Firm-Level Transformation
Social Media
Digital Product
Design
Customized
Manufacturing
Digital Division:
Nike Digital Sport
1
2
DIGITAL CAPABILITY
LEADERSHIP CAPABILITY
 Digital marketing
 Digital product innovation/design
 Digital commerce (e/m-commerce)
 Digital technologies (GPS, mobile, etc.)
 Customer analytics
FIRM-LEVEL
TRANSFORMATION+

BEGINNERS
 Management skeptical of the
business value of advanced digital
technologies
 May be carrying out some
experiments
 Immature digital culture
FASHIONISTAS
 Many advanced digital features (such
as social, mobile) in silos
 No overarching vision
 Underdeveloped coordination
 Digital culture may exist in silos
Four levels of digital mastery
DigitalCapability
Leadership Capability
CONSERVATIVES
 Overarching digital vision exists, but
may be underdeveloped
 Few advanced digital features, but
traditional capabilities may be
 Strong governance across silos
 Taking active steps to build digital skills
and culture
DIGITAL MASTERS
 Strong overarching digital vision
 Good governance
 Many digital initiatives generating
business value in measurable ways
 Strong digital culture

Digital mastery varies widely
DIGITAL MASTERS
CONSERVATIVES
FASHIONISTAS
BEGINNERS

Revenue Generation
Efficiency
Profitability Market Valuation
Digital Masters have significantly better financial performance
than their peers
+6% +9%
-4% -10%
Basket of indicators:
 Revenue / Employee
 Fixed Asset Turnover
-11% +26%
-24% +9%
 EBIT Margin
 Net Profit Margin
-12% +12%
-7% +7%
 Tobin’s Q Ratio
 Price / book ratio

Some industries average higher mastery than others…
Average industry
digital mastery:
Banking
Consumer Packaged Goods
Insurance
Manufacturing
Pharmaceuticals
Retail
High
Technology
Telecoms
Travel and
hospitality
Utilities

…but every industry already has digital masters
Percentage of firms in each industry by quadrant

They invest in 100% of the elements of Leadership Capability…
Digital Masters have a common Digital DNA
 Transformative Vision
 Shared Vision
 Chief Digital Officer
 Shared Digital Units
 Investment Committees
 Promoting Change
 Employee Participation
 Investing in Skills
 Shared understanding between IT
and business executives on role of IT
“Digitising P&G will enable us to manage
the business in real time and on a
demand-driven basis. We’ll be able to
collaborate more effectively and efficiently,
inside and outside the Company”
Innovation challenges Digital Year
CDOs & Digital UnitChief Digital Officer
“The IT Team (...) now work hand in hand
with the Creative Media team.”
Vision
Governance Engagement
IT /
Business

Focus Investments on
Where they Choose to
Excel Digitally
Combine Digital
Capabilities to Exploit
Synergies
+
Customer
Experience
Social
media
Mobile channel
In-store
Online
Unified Processes / Integrated Data
Process
Excellence
Supply-chain
Integration
Centralized
Ordering
New business models
Customer experience
Analytics
capabilities
Personalized Customer
experience
On-premise
Online
Digital Masters have a common Digital DNA
…and they make strategic decisions on where to excel with digital capabilities

Frame the Digital Challenge
 Understand the Impact
 Assess Digital Maturity
 Develop Vision & Align Around It
Focus Investments
 Build a Digital Roadmap
 Build Investment Case
 Set up Governance Model
Sustain the Transformation
 Build Capabilities
 Align Incentives & Rewards
 Measure, Monitor & Iterate
Engage the Organisation
 Signal the Change
 Mobilise at Scale
 Evolve Culture & Adapt Work Practices
How to drive digital transformation
Sustain Frame
Engage Focus

In conclusion
DIGITAL MASTERY MATTERS
IT MATTERS IN EVERY INDUSTRY
ANY COMPANY CAN BUILD DIGITAL DNA
TAKE ACTION NOW TO
CREATE YOUR OWN DIGITAL ADVANTAGE

The information contained in this presentation is proprietary.
© 2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues of
EUR 10.3 billion.
Together with its clients, Capgemini creates and delivers business
and technology solutions that fit their needs and drive the results
they want. A deeply multicultural organization, Capgemini has
developed its own way of working, the Collaborative Business
ExperienceTM, and draws on Rightshore®, its worldwide delivery
model.
Learn more about us at www.capgemini.com

Capgemini Digital Transformation - Beyond the Hype

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