The PIP Postal Innovation Platform Forum of the EPFL with UPU Universal Postal Union is the leading think tank for idea exchange to design the Postal Services of the future. The presentation shares insides the Capgemini MIT study with 400 companies in the world. What is "digital" impact in their business, how to structure the maturity of companies in the digital transformation and what is the benefit impact of different transformational approaches in the different industries.

1. Transform
to
the
power
of
digital
Digital
Transforma4on
–
Hype
or
sustainable
revolu4on?
“Findings
of
the
Digital
Transforma4on”
Dirk
Palder,
VP
Head
Postal
Services
Capgemini
Consul4ng
24.
September
2013
PIP
Postal
Innova4on
PlaMorm,
EPFL
&
UPU

2. 1.
Digital
Transforma4on:
The
basics
“Why
digi4sa4on
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
Consul4ng.
All
rights
reserved.
3

4. Digital
Transforma4on
facts
As
opposed
to
previous
industrial
revolu4ons
Digital
Transforma4on
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
popula4on
of
Europe
Source:
Press
releases
(2013);
company
websites;
Cisco
Visual
Networking
Index;
JP
Morgan;
Interna4onal
Telecommunica4ons
Union
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.

5. Quotes
on
Digital
Transforma4on
Without
doubt:
Digital
Transforma4on
is
a
major
challenge
on
CXOs’
agendas
5
“People
have
a
tendency
to
overes4mate
technology
in
the
short
term,
and
underes4mate
it
in
the
long
term.”
(Bill
Gates,
Microso0)
“I
can’t
think
of
any
industry
sector
or
company
which
is
immune
from
Digital
Transforma4on.”
(Andrew
McAfee,
MIT)
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.

6. Digital
Transforma4on:
Research
coopera4on
with
the
MIT
Capgemini
Consul4ng
and
MIT
have
teamed
up
to
analyse
why
some
companies
successfully
embrace
Digital
Transforma4on
while
others
fail
Copyright
©
2013
Capgemini
Consul4ng.
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
ins4tute
for
market
research
in
the
consul4ng
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
combina4on
of
two
separate
but
related
dimensions
–
digital
intensity
and
transforma4on
management
intensity
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
7
Digital
Intensity
Technology-­‐enabled
iniJaJves
in:
• Customer
Engagement
• Internal
Opera4ons
Leadership
capabiliJes
including:
• Vision
• Governance
• Engagement
• IT-­‐Business
Rela4onships
The
“What”
The
“How”

8. Digital
Transforma4on
framework
Key
result
of
the
partnership
is
the
Digital
Transforma4on
framework
which
incorporates
all
elements
of
the
“What”
and
the
“How”
needed
to
reach
Digital
Excellence
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
8
Itera?ve
Transforma?on
Roadmap
Digital
Governance
Transforma?ve
Digital
Vision
Digital
Engagement
Source:
Capgemini
Consul4ng-­‐MIT
Analysis
–
Digital
Transforma4on:
A
roadmap
for
billion-­‐dollar
organisa4ons
(c)
2011
Digital
Building
Blocks
Strategic
Assets
Digital
Investment
The
“What”
The
“How”

9. Digital
building
blocks
The
MIT
study
shows
that
organisa4ons
are
digitally
transforming
three
key
areas:
customer
experience,
opera4onal
processes
and
business
models
Copyright
©
2013
Capgemini
Consul4ng.
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
“Digira4”:
they
succeed
to
excel
in
the
applica4on
of
innova4ve
technology
and
manage
their
Digital
Transforma4on
simultaneously
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
10
Digital
Intensity
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
berer
financial
performance
and
outperform
their
compe4tors
by
top
line
growth
11
*
Industry-­‐adjusted
average
performance
of
companies
in
each
quadrant
compared
to
sample
average.
Copyright
©
2013
Capgemini
Consul4ng.
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
intensity
Transforma?on
Management
Intensity
Digital
intensity
FASHIONISTAS…
DIGIRATI…
BEGINNERS…
CONSERVATIVES…
+26%*
COMPANIES
CLASSIFIED
AS
“DIGIRATI”
HAVE
A
26%
HIGHER
PROFITABILITY
AND
9%
HIGHER
REVENUE
Source:
Capgemini
Consul4ng-­‐MIT
Analysis,
2012

12. Percentage
of
firms
by
digital
maturity
quadrant
Some
industries
are
moving
faster
than
others,
but
in
every
industry
there
are
digira4
already
outperforming
their
compe4tors
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
12
Percentage
of
firms
in
each
industry
by
quadrant:

13. InnovaJon
challenges
Prisa’s
Digital
Unit
Digital
DNA
Digira4
have
a
common
digital
DNA,
they
invest
in
100%
of
the
transforma4on
management
elements
Copyright
©
2013
Capgemini
Consul4ng.
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
Transforma4on:
The
drivers
“What
are
the
drivers
behind
Digital
Transforma4on?”

15. Key
technology
trends
These
emerging
technologies
redefine
the
rela4onship
between
humans
and
machines
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
15
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
applica4ons
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”

16. 3.
Digital
Transforma4on:
The
impact
“How
organisa4ons
transform
to
the
power
of
digital?”

17. Examples
of
Digital
Transforma4on
in
different
industries
Digital
Transforma4on
has
entered
industries
such
as
Consumer
Products
and
Retail,
but
does
it
also
impact
the
mining
industry?
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
17
“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
transforma4on
• Developing
new
skills
• Strengthening
IT-­‐Business
rela4onships
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
ini4a4ves
• CIO
is
leading
the
change
in
concert
with
CxOs
HOW
HAVE
THEY
DONE
IT?
• Codelco
2.0
• Trucks
driving
themselves
• Opera4ons
controlled
remotely
• Informa4on
shared
real-­‐4me

18. Nike:
From
separate
ini4a4ves
to
firm-­‐level
transforma4on
Nike
has
already
started
to
develop
advanced
digital
features...
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
18
1
DIGITAL
INTENSITY
2
TRANSFORMATION
MANAGEMENT
INTENSITY
§
SOCIAL
MEDIA
§
DIGITAL
PRODUCT
DESIGN
§
CUSTOMIZED
MANUFACTURING
DIGITAL
DIVISION:
NIKE
DIGITAL
SPORTS
§ Digital
Product
Innova4on
§ Digital
Marke4ng
§ Digital
Technologies

19. 4.
Digital
Transforma4on:
The
conclusion
“Why
Digital
Transforma4on
is
a
sustainable
revolu4on?”

20. Summary
Behind
the
hype
Digital
Transforma4on
is
a
sustainable
revolu4on
fundamentally
changing
the
way
companies
do
business
Copyright
©
2013
Capgemini
Consul4ng.
All
rights
reserved.
20
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

21. Dirk
Palder
Global
Vice
President
Postal
Markets
Phone:
+49
151
4025
2222
E-­‐Mail:
dirk.palder@capgemini.com