Rate of Change in Digital Transformation = E3IT x L3

RATE OF CHANGE IN
DIGITAL TRANSFORMATION =
Cuan Kloppers
Founder of CIO Unlimited
Managing Partner of CIO (Pty) Ltd
By:
dy
dx
x= L
3
(© 2017)
E3IT
CF1F2

“In Ancient times, those known as good warriors
prevailed when it was not easy to prevail.
Their victories were not flukes because they
positioned themselves where they would surely
win…”
Sun Tzy – The Art of War
Copyright © 2017 Cuan Kloppers

• Internet of Things
• Big Data
• Digital Transformation
• Changing Business Models
• Business Modernization
• Connectivity
• Cloud
• Big Data
• Agile Development

THE ROLE OF THE CIO HAS TRANSFORMED
Organisational
Structure Design
Corporate
Governance
Custodians
Cost
Optimisation
Procurement
Strategy (Sourcing
& Vendor
Management)
Strategic Planning
Lead Team / Exco
Relationship
Management
Talent / Retention
Management
Architects of Future
Landscape
Business
Processes/
Optimiser /
Engineering
Project
Management
(PMO)
Business Continuity
/ Disaster Recovery
Legacy Systems
Termination /
Software Product
Lifecycle
Management
New Systems and
Solutions
Innovation
Strategic &
Operational
Problem Solving
Leading of People /
Teams / Forums /
Focus Groups
IT Operations
Management
Systems Security
Management
Vision
Communication
Manage
Cost
Service
Excellence
Quality
Analytical
Reporting
Trusted
Business
Partner
Change
Agent
Relevant
Innovative
Solutions
Manage Cost
Controlling the impact
of IT spend in our
company
Service Excellence
Ensuring that
Information and
Security services are up
and running
Quality Analytical
Reporting
Providing insights to
support business
decisions
Relevant Innovative
Solutions
Shape the future of the
business with right
technology
Change Agent
Prepare and develop the
organisation for
technology change
Trusted Business
Partner
Enabling business
processes by being an
active business partner
CIO
2015 -
2020

WE NEED TO MAKE A DIGITAL PARADIGM SHIFT:
• Transform the Business Model
of “Today” to the Business
Model of Tomorrow
• From Enterprise Centric to
Customer Centric
• Invest in revenue-generating
Innovation….increasing
Shareholder Value

CIO SCRUM =E3 I T © 2017
UNDERSTANDING THE EQUATION…
The CIO and
the IT
Organisation
Responsible
to ENABLE
the Business
Drivers
The PROCESS to focus on building
BUSINESS NEEDS
Your STRATEGIC ROADMAP FOR
TRANSFORMATION OR INNOVATION:
• Digital Transformation
• Changing Business Models
• Business Modernization
• Aligning IT with Business
• IT Delivery Capability and Maturity
• Utilising all Intelligent INFORMATION
in Business as a positioning tool
• In other words: “Shape the future of
the business with right Information and
Technology”
ENGAGE
EXECUTE
ENABLE
INNOVATE TRANSFORM

BUT, How do we embark upon the journey
of Transformation or Change?

dy
dx
x= L
(© 2017)
IT IS EASY…. JUST FOLLOW THE FORMULA:
E3IT
CF1F2

IT IS ALL ABOUT PHYSICS IN BUSINESS
Newton’s 1st Law of Motion
The law of inertia.
An object at rest stays at rest and an object in motion stays in motion with
the same speed and in the same direction unless acted upon by an
unbalanced force.
This means that there is a natural tendency of objects to keep on doing
what they're doing. All objects resist changes in their state of motion.
Objects keep
on doing what
they’re doing
Newton’s 3rd Law of Motion
For every action there is an equal and opposite re-action.
This means that for every force there is a reaction force that is equal in size, but
opposite in direction. That is to say that whenever an object pushes another
object it gets pushed back in the opposite direction equally hard.
When you
push an
Object, it
pushes back
More Mass
means more
FORCE needed
to move /
Accelerate
Newton’s 2nd Law of Motion
The rate of change of momentum
The greater the mass (of the object being accelerated) the greater the amount of
force needed (to accelerate the object).
heavier objects require more force to move the same distance as lighter objects.
FORCE = MASS x ACCELERATION

APPLYING PHYSICS IN BUSINESS (1)
Newton’s 1st Law of Motion
CHANGE is the FORCE FACTOR that move the current state of motion
CHANGE can have a Negative connotation:
• Resistance to changes the current state
• Some Businesses stagnate in IT investments and became complacent to run IT effectively and
efficiently. “Why fix something that is not broken, right?”…
CHANGE can be perceived as Disruptive (yet NESSASARY to Survive):
• Market Conditions, Struggle for top- and bottom-line growth in a slowly recovering economy
• Problematic organic growth
• Cost cutting and operations modernization
• New Business models or New Products
• Focus on transformation of legacy systems and addition of Technology capabilities
• Changing Customer expectations
• Heightening competition and emerging disruptors
• Challenges from regulatory disruption
In almost all the Fortune
500 Companies,
continuous innovation
and leveraging the value
of Information as a
Competitive Advantage
and the role of the CIO
evolved toward playing a
stronger business partner
as an integral innovative
and transformative part
of the business, as
expected today.
=C
CHANGE
IMPACT
CHANGE is Positive:
• Technology modernization to drive growth and efficiency.
• Transform the Business Model of “Today” to the Business Model of Tomorrow
• From Enterprise Centric to Customer Centric
• Invest in revenue-generating Innovation….increasing Shareholder Value

Newton’s 2nd Law of Motion
Commonly known in Business as BREAKING FORCES in Momentum
• ENABLING FORCES are Positive FORCES needed to:
• Accelerate CHANGE in a Business
• Neutralise or Minimise the Disruptive Impact on the Business
Technological change can bring
about advantages and
opportunities for businesses.
New Technology can create
new products and services, >
creating entire new markets
for a business.
Improvements in technological
products and processes can
increase productivity and
reduce costs.
=F1
FORCE
relating to
CHANGE • The greater the RESISTANCE to CHANGE the greater the amount of FORCE (energy)
needed (to accelerate CHANGE).
• Resistance to change is the action taken by individuals and groups when they
perceive that a change that is occurring as a threat to them. Key words here are
'perceive' and 'threat'. The threat need not be real or large for resistance to occur..
• Because Change can be DISRUPTIVE, we need to minimise the effect of the Disruptive
Force by MITIGATING or MINIMISE the EFFECT of CHANGE / DISRUPTION.
• ENABLING FORCES
THREE Factors are of importance here:
1. The RESISTANCE TO CHANGE in an Organisation
2. The SIZE, SCOPE or IMPACT of the CHANGE (DISRUPTION) on the
Business
3. Lack of OWNERSHIP for CHANGE

Newton’s 3rd Law of Motion
For every ACTION there is an equal and opposite RE-ACTION.
=F2
FORCE
relating to
RISKS
• Best-Fit Project Management Methodologies to ensure:
• Strategic Alignment
• Leadership
• Clear Focus & Objectives
• Realistic Project Planning
• Quality Control
• Governance and Risk Management
• Proper project process throughout the project lifecycle
• Continuous Oversight
• The Right Stuff (People, Processes and Technology)
• Learn from Success And Failure
Risk mitigation is of utmost importance when a Business embark upon a major CHANGE.
• development of mitigation plans designed to manage, eliminate, or reduce risk to an
acceptable level.
• Once a plan is implemented, it is continually monitored to assess its efficiency with the
intent of revising the course-of-action if needed.
• Realistic Project Planning and Project management is important because it ensures proper
expectations are set around what can be delivered, by when, and for how much.

THEREFORE THE IMPACT OF THE LAWS OF MOTION
=F1
FORCE
relating to
CHANGE
=F2
FORCE
relating to
RISKS
CF1F2
=C
CHANGE
IMPACT
POTENTIALLY
BREAKING FORCES
OR RISKS
The Sum Total of all these
potential BREAKING FORCES
or RISKS need to be
mitigated and kept to a
MINIMUM by applying
ENABLING FORCES

dy
dx
x= L
3
(© 2017)
E3IT
CF1F2
Rate of Change in
Digital Transformation =

dy
dx
x= L
3
(© 2017)
THUS:
E3IT
CF1F2
The Desired
Outcome and
the Rate of
Change or
Transformation
The Sum Total of all these
potential BREAKING FORCES
or RISKS need to be
mitigated and kept to a
MINIMUM by applying
ENABLING FORCES
A unique CIO in Business
Transformation Methodology
(E3IT)L (© 2017)
A step-by-step approach that
transforms the utilisation of
INFORMATION in Business to
a positioning tool.
TRANSFORMATIONAL
LEADERSHIP

E3IT
CF1F2
xL=
(© 2017)
dy
dx
3
E3IT
CF1F2
Time
E3IT
CF1F2
Time
MAGNITUDE OF TRANSFORMATION:
E3IT
CF1F2
Transformation
Time

DEMYSTIFYING THE (E3IT)L
BUSINESS TRANSFORMATION METHODOLOGY
(E3IT)L =
ENGAGE EXECUTEX ENABLE INNOVATEXX TRANSFORMX
TRANSFORMATIONAL
LEADERSHIP
X

(E3IT)L BUSINESS TRANSFORMATION METHODOLOGY
WHY
BUSINESS
DRIVERS
CURRENT
vs.
FUTURE
STATE
IT
STRATEG
Y
ASSESS
GAPS
EMPOWE
R
ROADMAP
ENGAGE
ENGAGE EXECUTEX ENABLE INNOVATEXX TRANSFORMX TRANSFORMATIONAL
LEADERSHIPX

(E3IT)L (some tool's)…
EXECUTE
LEADERSHIPX
• Key Business Drivers and Needs Analysis
• Business Process Efficiency
• IT Service Delivery Maturity Assessments
• Best-Fit Project Management Methodologies
• Enterprise Architecture Assessments
• Strategy Alignment – Gap Analysis
• Force-Flow Diagrams
• Current Reality Tree (on all IT Operational Domains)
• Business Transformation Maturity
• Best-Fit Technology Maturity & Transformation
• Transformation Roadmap
• People Transformation (Internal & External)
• New Organisational Structure to “ENABLE BUSINESS”
• IT Financial management
• Simplify IT User experience
• Standardise
• Processes
• Platforms
• Applications / Systems
• Information Delivery
• Collaborate Information Sharing
• Plan for Agility, Scalability and Innovation

INFORMATION MATURITY QUADRANTS (© GARDNER)
TRANSFORMATION, OWNERSHIP, ACCOUNTABILITY, and GOVERNANCE
HOUSEKEEPING
Data Integrity
l Open Transactions
l On time
transactions
l Data and Process
Accountability
l Frequent
Exception Monitoring
l Integration (MD07)
l Groups and priorities
l MRP rules
l ATP
l Lead Time/s
l Service Levels
l Exceptions
l Master Data
Process Optimization
l Automation
l Lead time reduction
l Enhanced process
l Enhance existing
functionality
l Collaboration
Business Value
l Increase Service
Levels
l Increased
Revenue
l Reduce Value of
Stock
l Reduce Operating
Costs
l Set new targets
INTEGRATION INNOVATION BUSINESS VALUE
Business Rules
 Overdue Transactions
 Real-time Transactions
 Single Data Source
 Data Cleansing
 Inside the System
 Communications
 Cooperation
 Data Accuracy
 Data and Process
Accountability
 User Confidence
 Lead Time Accuracy
 Data Grouping
 Stocking Strategy
 Master Data Rules
 Service Levels – Internal &
External
 Exception Management
 Inventory Accuracy
 Business Measures
 Design Measures
 Purchasing & Financial
Integration
 Lead Time Adherence
 Increase Service
 Increase Revenue
 Optimize
Inventory Value
 Improved Inventory
Turns
 Reduce Operating Costs
 Improved Management
Information (Visibility)
 Increase process
optimization & flexibility
 Business Model
Transformation
 Trusted Automation
 Enhance Existing
Functionality
 Next Generation
Technology
 Supplier Performance
 Benchmarking
 Management Dashboard
 Global Standardization
 Supplier & Customer
Collaboration
 Lead Time Reduction
 IT Transformation
21 3 4
Get what was implemented to work
as intended. Get the processes
integrated
Get the system to work
for you, rather than
you working for the
system
Get the system to work for your
business. Set COMPETITIVE VALUE
targets and achieve those targets, using
your system

(E3IT)L (some key thoughts)…
ENABLE
LEADERSHIPX
• Quality Analytical Reporting and Visualisation
• Provide Information and Insights to support Business
decisions
• Provide Business Intelligence
• Relevant Information with FOCUSSED and
TIMEOUSLY DELIVERY to the point of DISIRED
CONSUMPTION.
• Drive Out Complexity
• Become a Business Partner

Objectives
• Transform the Business Model of
“Today” to the Business Model of
Tomorrow
• From Enterprise Centric to Customer
Centric
Innovation….increasing Shareholder
Value
BREAKING FORCES:
•New pressure on prices and margins
•Competitors emerge from
unexpected places
•Winner-takes-all dynamics
•Plug-and-play business models
•Growing talent mismatches
•Converging global supply and
demand
•Relentlessly evolving business
models—at higher velocity
•Lead your customers or follow them?
•cost cutting and operations
modernization in line with changing
consumer expectations for 24/7
service
•Heightening competition and
emerging disruptors
•Challenges from regulatory disruption
•Increasing consumer expectations
•Stagnant sales
•transformation of legacy systems
DRIVING FORCES:
• Cost optimisation Innovation
• Top- and bottom-line growth
• Transformation of legacy
systems
• Business Modernization in
line with changing consumer
expectations
• Competitive Advantage
• Regulatory disruption
• Increase sales
• Digital Technology
modernization
• Drive growth and efficiency
• Digital self-service
• Better decisions through
better data
• Digital Operations
Business Modernisation & Digital
Transformation Roadmap
TRANSFORMATION TO DIGITAL BUSINESS IS KEY TO BUSINESS MODERNISATION AND REVENUE BASE
INNOVATION DELIVERY AS A BUSINESS ENABLER AND TRANSFORMATOR

Objectives
• Transform the Business Model of
“Today” to the Business Model of
Tomorrow
• From Enterprise Centric to Customer
Centric
Innovation….increasing Shareholder
Value
BREAKING FORCES:
•New pressure on prices and margins
•Competitors emerge from
unexpected places
•Winner-takes-all dynamics
•Plug-and-play business models
•Growing talent mismatches
•Converging global supply and
demand
•Relentlessly evolving business
models—at higher velocity
•Lead your customers or follow them?
•cost cutting and operations
modernization in line with changing
consumer expectations for 24/7
service
•Heightening competition and
emerging disruptors
•Challenges from regulatory disruption
•Increasing consumer expectations
•Stagnant sales
•transformation of legacy systems
DRIVING FORCES:
• Cost optimisation Innovation
• Top- and bottom-line growth
• Transformation of legacy
systems
• Business Modernization in
line with changing consumer
expectations
• Competitive Advantage
• Regulatory disruption
• Increase sales
• Digital Technology
modernization
• Drive growth and efficiency
• Digital self-service
• Better decisions through
better data
• Digital Operations
Business Modernisation & Digital
Transformation Roadmap
TRANSFORMATION TO DIGITAL BUSINESS IS KEY TO BUSINESS MODERNISATION AND REVENUE BASE
ENABLING FORCES
• Executive Leadership Champions
• Building a solid business and
systems architecture for delivering
reliable, integrated operations
across corporate functions; and
• Providing easy amalgamation of
channels and analytics capabilities
back to operational capabilities, i.e.
integrating key transactions in the
channels layer to finance and
payments systems as part of a
straight through processing initiative
• Build multi-speed business
capabilities:
• Channels
• Analytics
• Operations
• Agile development methodology
in the delivery of digital
technologies
INNOVATION DELIVERY AS A BUSINESS ENABLER AND TRANSFORMATOR

BROKER INTELLIGENT INFORMATION AS A VALUE TO ENABLE
THE BUSINESS

THE INNOVTION PROCESS AND - LEADERSHIP PROFILES
…TO TRANSFORM AND IMPLEMENT VALUABLE, TANGIBLE INNOVATIVE INITIATIVES
Discover
(Generate)
Develop
Execute
(Deliver)
- The Innovators DNA (Forbes)
1. QUESTIONING
“What if?”
2. OBSERVING
• Customers
• Services
• Products
• Processes
3. NETWORKING
• Diverse People
4. EXPERIMENTING
5. ASSOCIATING
• Conceptualise
1. ANALISING
• Data
• Logic
• Realism
• Facts
2. PLANNING
3. DETAIL ORIENTED
4. SELF DISCIPLINED
5. RESULTS ORIANTED
LEADERSHIPX
COPYRIGHT © 2017 CUAN KLOPPERS

WHY TRANSFORMATIONAL LEADERSHIP IS KEY TO INNOVATION
Mark Halverson, Accenture’s global lead for Life Insurance Distribution Services

DIGITAL INSURANCE CAPABILITY MODEL FOR A GLOBAL GENERAL INSURER
CUSTOMER CENTRIC
BUSINESS OF
“TOMORROW”

• CIO Unlimited is a unique South African based organisation
• established in 2016
• Provide collaborative and strategic advisory services to companies and service providers.
• CIO Unlimited differentiates itself by providing innovative, proven and low risk cost effective
• “CIO as a Service” and “IT Manager as a Service” in the market.
• Rich experience and deep understanding of the ICT environment
• Unique insightful and thought leadership it brings to clients and service providers.
CIO Unlimited offers a comprehensive range of services, niche IT expertise and processes that drive exceptional value for
both our partners, clients and service providers.
CIO Unlimited’s services are customised to fit each individual company’s unique ICT management needs through a flexible
and cost effective engagement model.
CIO Unlimited works closely with clients and service providers:
• Analyse their unique business challenges
• Implement flexible and managed service solutions that fulfil their specific needs.
• Create effective concepts from inception to completion,
• Innovative ideas seeking to distinguish our work through rigorous attention to detail, high standards, and meticulous
follow-through.
ABOUT CIO UNLIMITED

CIO UNLIMITED SERVICES
CIO or IT Manager as a Service
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Information Services Delivery
Capability Maturity
Transformation
Value Realization and Creation
(including TCO reduction, ROI
and NPV realization)
IT Procurement, Sourcing & Vendor
Management
Programme & Project Management
Project Reviews and Assessments
IT Service Management Delivery
Business Model design
Gaps and Improvement
Opportunities
Roadmap design
Assess and Review IT operations
Quality Management
(Delivery, Projects &
Transformation)
Stakeholder Relationships
IT Finance and Costing
ENGAGE / PLAN / STRATEGY EXECUTE / BUILD ENABLE / RUN / OPERATE IMPROVE / INNOVATE
MANAGEMENT CONSULTING
COO as a Service
Business Process Efficiency /
Optimisation
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BUSINESS TRANSFORMATION
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Advisor
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So, the Journey to transformation in our
Business starts with the Transformation of the
CIO – To a Transformational Leader…
Thank You
Cuan’s contact details are:
Email: Cuan.Kloppers@outlook.com
LinkedIn: https://za.linkedin.com/in/cuankloppers
Mobile: +27 83 304 5714

Rate of Change in Digital Transformation = E3IT x L3

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Rate of Change in Digital Transformation = E3IT x L3