1. Athens International Airport
Creating a Digital Strategy
Presented to: Athens University of Economics and Business
Presented by: George Demetriades
Date: November 16th, 2016
6. -6-
…. t ransformation
In industry after industry, scenarios that once appeared improbable are
becoming all too real, prompting boards and CEOs of flagging (or perhaps
merely drifting) businesses to embrace the T-word: transformation.
McKinsey Quarterly, http://www.mckinsey.com/business-functions/mckinsey-recovery-and-transformation-services/our-
insights/transformation-with-a-capital-t (McKinsey & Company , 2016)
Transformations as we define them take up a surprisingly large share
of a leadership’s and an organization’s time and attention.
McKinsey Quarterly, http://www.mckinsey.com/business-functions/mckinsey-recovery-and-transformation-
services/our-insights/transformation-with-a-capital-t (McKinsey & Company , 2016)
Why ??
8. -8-
..what is strategy ??
A company can outperform rivals only if it can establish a difference that it can
preserve.
What is Strategy ?
a plan of actions designed to achieve a long-term or overall aim.
Why do businesses need strategy ?
9. -9-
..or a different outlook on strategy
components..
The art of war, then, is governed by five constant factors, to be taken into
account in one's deliberations, when seeking to determine the conditions
obtaining in the field.
These are: (1) The Moral Law; (2) Heaven; (3) Earth; (4) The Commander; (5)
Method and discipline.
The Art of War, Sun Tzu
• The Moral Law causes the people to be in complete accord with their ruler, so that they will follow him regardless of their
lives, undismayed by any danger. (Loyalty??)
• Heaven signifies night and day, cold and heat, times and seasons. (External conditions ?)
• Earth comprises distances, great and small; danger and security; open ground and narrow passes; the chances of life
and death. (Risk Appetite ?)
• The Commander stands for the virtues of wisdom, sincerely, benevolence, courage and strictness. (Leadership ?)
• By method and discipline are to be understood the marshaling of the army in its proper subdivisions, the graduations of
rank among the officers, the maintenance of roads by which supplies may reach the army, and the control of military
expenditure. (management & methodology)
Parallelism ..
10. -10-
……strategy building blocks
1.Drivers & constraints (environment, SWOT,
implications)
2.Current state : Where are we ?
3.Target State : Where do we aim to go ?
4.Initiatives : tactical targets that give us the strategy
5.Roadmap : How we achieve the tactical wins ?
11. -11-
…digital strategy is like any other strategy
…only focused to digital & innovation…
Why Digital
“Digital disruption is changing business.. The rise of
smartphones and the mobile web has helped
organizations reach customers and segments they never
thought possible…”
The digital tipping point, A Verint white paper, www.verint.com
12. -12-
…compiling the digital strategy : step 1
1. Define the Business Objectives
Revenues
Services
Customer Experience
Industry specific targets (e.g. Destination Marketing)
Other
13. -13-
…compiling the digital strategy : step 2
Create the customer experience map and identify the “pain
points”
14. -14-
…compiling the digital strategy : step 3
List the external drivers & their effect as well as threats and opportunities by the
use of methodologies
Factors for consideration Impact on Business
Political
1. Political issues
2. Rise of extreme political powers
1. Tourism may get affected as foreigners may prefer
more stable destinations
Economic
1. GDP significant decrease
2. Salary freeze (or decrease)
1. Decrease of citizens’ disposable income forces
changes in consumer behavior.
Sociological
1. Unemployment etc. ……
Technological
1. Innovation
2. Digital disruption
……
Legal
1. New legal frameworks …….
Environmental
1. “Green effect” etc. ……
15. -15-
…compiling the digital strategy : step 3
List the Opportunities to Innovate and the respective Digital Implications..
These are the tactical wins…
16. -16-
….what do we do next ?
We establish where we are in terms of digital
Digital Maturity Assessment
Digital Value chain & Business Capabilities
Digital Technology Enablers
Digital Enterprise Operating Model
Level of Readiness
17. -17-
….what is Digital Maturity Assessment?
1. Digital culture and vision – business-IT alignment on the desired target state of doing business the digital way; the
organization’s appetite for digital innovation; supporting behavior at all levels of the organization. (Digital leadership and
management.)
2. Digital value chain and business capabilities – What the enterprise value chain is now and what they want their
value chain to be; their current ability to leverage digital within the business and their vision of what those capabilities
should be. (Digital technology.)
3. Digital technology enablers – information technology solutions that enable digital business capabilities to realize the
digital vision. Insights/information – applications – infrastructure (devices, platforms, connectivity, security). (Digital
technology.)
4. Digital enterprise operating model – cohesive business-IT operating model that enables the organization to
effectively innovate, plan, buy/build/integrate, and provision/operate in the digital space. Top priority capabilities: (Digital
leadership and management.)
Enterprise operating model management – the operating model must be continuously reevaluated.
Innovation management.
Digital enterprise architecture governance and management.
Sourcing strategy and governance – emphasis on governed, strategic, cloud-based sourcing of technology
solutions that swiftly enable digital capabilities.
Digital value realization management – track and promote value.
Security and privacy management.
The evaluation of the following metrics :
18. Assess level of maturity for digital culture and
vision
None. The enterprise has no interest in pursuing digital opportunities.
Ad hoc. There is a fragmented, incomplete vision of what the enterprise wants to digitize. There is no shared, holistic
business-IT understanding of the target state of digital in the context of the enterprise. There is no culture of digital
innovation.
Managed. There’s a mandate (can be informal) from the executive management to explore digital opportunities.
Cross-functional, business-technology teams work on digital initiatives that are managed as projects. There’s a culture
of business-technology collaboration in adopting the digital way of doing things.
Formalized. A digital strategy is formally defined, approved, and being executed. Shared values and principles for
adopting digital are formally defined and promoted to the employees company-wide.
Measured. The company measures the executions of its digital strategy because of the principles that were defined
and employees are assessed on their adherence to those principles.
Improving. The company is continually re-evaluating its digital strategy in hope of finding new ways of using
technology.
1
0
2
3
5
4
19. Assess level of maturity for digital value chain
and business capabilities
None. The organization has no digitization to its value chain and business capabilities.
Ad hoc. The organization has scattered digitization that was the result of reactive and scattered measures from
different silos.
Managed. There is a mandate from executive management to explore digitization of the value chain and other
business capabilities. Cross-functional teams execute this mandate.
Formalized. Value chain and business capabilities’ digitization are formally defined, approved, and being executed.
Measured. Value chain and business capabilities have been digitized long enough to provide before and after results
on the business.
Improving. The company is continually re-evaluating its value chain and capabilities to see where new digitization
methods can be implemented.
1
0
2
3
5
4
20. Assess level of maturity for digital enterprise
operating model
None. The organization has no resources that enable it to innovate, plan, or buy/build/integrate in the digital space.
Ad hoc. The business has an operating model that allows it to innovate, plan, and integrate in the digital space, but
there is no guideline on how these processes are done.
Managed. The enterprise has an operating model that has informal guidelines for innovation, planning, and
integration in the digital space.
Formalized. The organization has an operating model that adheres to specific documented guidelines that allow it to
innovate, plan, and integrate in the digital space.
Measured. The business has an operating model that adheres to specific documented guidelines and consistently
adheres to its principles when innovating, planning, and integrating in the digital space.
Improving. The business continuously upgrades the guidelines of its operating model to meet future business needs
in the digital space.
1
0
2
3
5
4
21. Understand scope of technology enablers
First, define the scope of your digital technology and keep that in mind as you assess the maturity of your
digital technology enablers. Please check off all those that your organization uses:
Technology Enabler Definition
Analytics Analytics involves a spectrum of data utilization – from data collection, to synthesis, to use in
advanced decision-making models.
Mobile Mobile involves the usage of short message service, multimedia message service, apps, and email
to communicate your value proposition to the client about your product or service.
Social Media Social media involves a variety of web-based platforms, applications, and technologies that enable
your customers to socially interact with your organization and provide user-generated content.
Internet of Things (IoT) Internet of Things refers to an ever-growing network of physical objects that feature an IP address
for internet connectivity and the communication that occurs between these objects and other
internet-enabled devices and systems.
E-commerce A type of business model, or segment of a larger business model, that enables a firm or individual
to conduct business over an electronic network, typically the Internet.
Security Techniques for ensuring that data stored in a computer cannot be read or compromised by any
individual without authorization. These measures may involve both the physical and digital world.
Compliance Regulations and rules set by a governing body with regards to the collection and storage of data
generated by the digitization of data.
Cloud Computing A type of computing that relies on sharing computing resources rather than having local servers or
personal devices to handle applications. Different computing services are delivered to an
organization’s computers and devices through the Internet.
22. Assess the level of maturity for technology
enablers
None. The organization has no resources to enable digital business capabilities to realize the digital vision.
Ad hoc. The business possesses technology enablers but innovation and spending are done on an as-need basis
with no prior planning.
Managed. The enterprise has informal processes that guide spending on technology enablers but most decisions
are still made on a reactionary basis.
Formalized. There is a mandate from business leadership to guide spending on technology enablers.
Measured. The business adheres to specific documented procedures to improve technology enablers and
consistently adheres to its principles when improving existing technology intensity.
Improving. The business adheres to specific procedures and also has a formalized plan in place to improve
technology enablers for the future based on synergies with current enablers.
1
0
2
3
5
4
Select the maturity level based on the average level of where all your existing technology enablers are at:
23. Apply a level of readiness assessment to each
pillar
Percentage of Completion Description
Not Achieved (0 – 15 %) (N) No or very little progress has been achieved on
the current stage of the process.
Partly Achieved (16% – 50%) (P) There is some evidence of an approach to and of
achievement in the current stage of the process.
Largely Achieved (51% – 85%) (L) There is evidence of a systematic approach to
and significant achievement in the current stage
of the process.
Fully Achieved (86% – 100%) (F) There is evidence of a complete systematic
approach to and full achievement of the current
stage of the process.
A level in the process is achieved if the following occurs:
• The previous level in the process is fully implemented.
• The current level that is trying to be achieved in the process is largely implemented or fully
implemented.
Apply a percentage of completion to each of your selected levels of maturity on the four pillars to communicate how far your
organization is from moving to the next level:
24. Complete the digital maturity summary
None Ad Hoc Managed Formalized Measured Improving
Percentage
Readiness
N L P F N L P F N L P F N L P F N L P F N L P F
Digital Culture
and Vision
Digital Value
Chain and
Business
Capabilities
Digital
Technology
Enabler
Digital
Enterprise
Operating
Model
Summary: (A short summary and overall level of the organization’s digital maturity.)
*See the next slide for a filled out digital maturity summary.
25. Sample: Digital maturity summary
None Ad Hoc Managed Formalized Measured Improving
Percentage
Readiness
N L P F N L P F N L P F N L P F N L P F N L P F
Digital Culture
and Vision
Digital Value
Chain and
Business
Capabilities
Digital
Technology
Enabler
Digital
Enterprise
Operating
Model
Summary: Managed. Business leadership has an informal mandate to explore digital opportunities, the digital value chain, and business
capabilities. The organization also has informal guidelines from management on how to innovate, buy, and integrate digital processes. These
3 pillars are close to begin formalizing into actual documented processes. Digital technology exists in the organization but is only improved
on an as-needed basis. Improvements still need to be made to have informal processes to guide spending on technology enablers.
26. -26-
….and…?
We establish where we want to go
Using the 10 “commandments”
Creating the fundamental objectives
Creating the target customer experience map
Establishing the target maturity model
Defining the roadmap
27. -27-
…the ten commandments of digital…
Digital Guiding Principle
Name
Digital Guiding Principle Statement
1. Customer engagement
We will seek to create new meaningful digital interactions to increase the customer’s level of
engagement and satisfaction.
2. Value generation
We will only undertake digital transformation in order to generate value for the customers and
for the organization.
3. Competitive landscape
We will examine our competitive environment, to determine whether we are losing consumers
to new technology, and remain flexible to adapt to these changes.
4. Reuse > buy > build
We maximize reuse of existing assets. If we can’t reuse, we rent or procure externally. As a last
resort, we build custom solutions.
5. Simplicity We choose the simplest solutions and aim to reduce operational complexity of the enterprise.
6. Iterative approach
We will implement digital initiatives, collect feedback, and iterate to increase collaboration and
the likelihood of success.
7. Managed security We manage security enterprise-wide in compliance with our security governance policy.
8. Compliance to laws and
regulations
We operate in compliance with all applicable laws and regulations.
9. Innovation We seek innovative ways to utilize technology for business advantage.
10. Collaborative We seek to involve the organization as a whole to engage in digital transformation.
28. Support our Business
partners Growth
-
Innovation / test & learn
-
Boost Digital presence
-
Digitalization of
traveller’s journey
-
Strategic PartnershipsMaximize travelers’
value through sales
-
……our fundamental objectives
29. -29-
Stages 1 2 3 4 5
Attitudes Interested Educated Happy Delighted Satisfied
Behavior
line
Initial contact Research Purchase Delivery Post-purchase
People and
things
Call center
employee, on
site, and website
Web
research/website
In store, over the
phone, or
website
Third-party
delivery
Call center, self-
serve portal, and
mobile app
Background
support
Telephone, staff,
and website
Search engine
optimization and
company site
Staff and
company
website
Call Centre /
Social Media
Centre
Call center
analytics,
website, and app
……..creating the target customer experience map
Desired Improvements
30. Target Digital Maturity
None Ad Hoc Managed Formalized Measured Improving
Percentage
Readiness
N L P F N L P F N L P F N L P F N L P F N L P F
Digital Culture
and Vision
Digital Value
Chain and
Business
Capabilities
Digital
Technology
Enablers
Digital
Enterprise
Operating Model
Definitions: Not Achieved (0 – 15 %) (N); Partly Achieved (16% – 50%) (P); Largely Achieved (51% – 85%) (L); Fully Achieved (86% – 100%) (F)
32. Stakeholders to agree on roadmap of projects &
assign resources
Finalize initiatives for each strategic pillar
Stakeholders to define roadmap’s Benefits and
KPIs
Gain executive sponsorship & involvement
The way forward…
33. -33-
The digital way of doing business encompasses an innovative
use of modern technologies that continuously transforms the
business to gain competitive advantage and improve value
realization. A successful customer-focused digital
transformation will improve how your customers perceive
your organization, and will open the doors for new
opportunities, business models, or even industries.
Alexander Zverintsev
CIO Advisory
Info-Tech Research Group
Don’t be relegated to a supporting role – be a partner in determining how
to create a better customer experience through digital transformation.
ANALYST PERSPECTIVE
34. -34-
Force update
Sales Forecast
Adjust pricing
Profit
Oprimization
Push item xx
more
Recommendation
Engine
Optimize
Inventory
across
warehouses
Supply Chain
Updated to
cater for
increased
demand
Inventory
Forecast
Popularity of
item xx
increases
Sales Forecasting
… a chain reaction…. Guess what ….
35. -35-
1. Supply chain optimization (warehouse
selection)
2. Supply chain optimization (II) (Routing)
3. Supply chain optimization (III). (Gas
purchase optimization)
4. Supply chain optimization (IV). (Road
Traffic Analyzer)
5. Pricing and profit optimization
6. Fraud detection
7. Fake reviews detection.
8. Taxonomy creation
9. Smart search engine technology
10. Multivariate testing, for instance to find
out which version of a search engine increases
sales, everything else being constant
11. Recommendation engine
12. Customer segmentation
13. Advertising optimization (SEO & SEM)
14. Inventory forecasting
15. Sales forecasting
16. HR analytics:
17. Real estate analytics
18. Software/hardware system analytics
19. Payments analytics.
20. Competitive analysis
21. Tax engineering
Ad Relevancy Algorithm (Optional)
..tomorrow is already today… Integrated Strategy Machine …
Optimum commercial Results
BCG, The Integrated Strategy Machine,
https://www.bcgperspectives.com/content/articles/strategy-
technology-digital-integrated-strategy-machine-using-ai-create-
advantage/