This presentation on Digital Transformation and How it affects Project Management Practice was presented by me on 11th May 2017 at the PMI Bangalore Chapter Foot Prints Session.
2. What is Digital Transformation ?
Therefore "Digital Transformation" is a visible wholesale restructure to
avoid a tipping point caused by digital technologies and downstream
market effects (Mr. Howard King in the Guardian)
Digital transformation is not about the technology itself but about
improving the business so that it prospers in the digital age.
What is transformation?:
Transformation is a whole
scale change to the
foundational components of a
business: from its operating
model to its infrastructure.
Businesses go through transformation when
they have failed to evolve.
What is digital?
Digital in broadest sense can
be thought of as any
technology that connects
people and machines with
each other or with information.
3. Business changing with technologies
Welcome to the fourth industrial revolution.
• Software will disrupt most traditional industries in next 5-10 years.
• Artificial Intelligence: Computers becoming exponentially better in understanding the world.
• By 2030 Computers will become more intelligent than humans
4. Changing Customer Experience
Uber, Airbnb, flipkart … is just a software tool
Computer will beat the best players in many fields in
near future
Facebook now has pattern recognition software that
can recognize faces better than humans
Autonomous cars: Self driving cars for the public by
2018. Complete industry will get disrupted.
Our kids will never get a driver’s license and never
own a car
Car parking spaces will be converted to parks
5. SMAC - Social Mobile Analytics & Cloud
Social Media
FB, LinkedIn, Twitter, WhatsApp, Skype
Mobile
Apps and platforms
Analytics
Big Data and Analytics
Cloud
Public and Private Cloud, On-Premise
SMAC creates an ecosystem that allows a business to improve its operations and get closer to the customer
with minimal overhead and maximum reach
SMAC leads to new business models built upon customer generated data created by devices, sensors, social
media, web site browsing etc.
6. Some technologies that are changing life
Internet of Things
Machine Learning
Watson
3D printing
Augmented and Virtual Reality
Block Chain
7. Digital Business Transformation: Areas
Retail Industry
Manufacturing
Government & Public Sector
Utilities Industry
Insurance Industry
Health Care
Retail Banking
Logistics & Transportation
8. Digital Disruptions
Accidents reduce with autonomous driving.
That will save about a million lives a year.
Existing Vehicle Insurance models will
disappear
Traditional car companies try the
evolutionary approach and build better
cars; tech companies will do the
revolutionary approach and build computer
on wheels
As you can work while you commute,
people will move farther away to live in a
more beautiful neighbourhood, which will
affect the real estate business
Advanced personal medical devices which
can scan and identify any disease
9. Digital Disruptions ...
Young lawyers may lose their jobs because IBM Watson provides legal advice with 90% accuracy within
seconds
IBM Watson is already used in Oncology Department of Manipal Hospital for Cancer treatment
Most of the government forms can be auto filled by a bot
Spare airplane parts can be 3D printed in remote airports
Space station now has a 3D printer that eliminates need for carrying large number of spare parts
You can 3D scan your feet and print a perfect shoe
Low cost agricultural robots to make farmers managers instead of workers
Bitcoins becoming mainstream
Advanced stem cell technology will allow you to “make” your own organs to replace defective ones
10. Hyper connectedness and the last mile
DX affects the last mile or edges
Customer and Customer experience
Partners
Stakeholders
Role of organization in DX is to overcome Silos
Interconnectedness is the norm
Focus shifts towards edges
Central capabilities are realized in order to
work faster and better for and at the edges
Reflects in technologies and decentralization
of work and business models
11. Key Drivers for Digital Transformation
There are three key drivers of DX:
changing consumer demand
changing technology
changing competition
When any of these factors coincide such that a business'
operating model is no longer fit to serve its customers, the
business has reached a tipping point
Digital Transformation has to be lead from the top if it has to
succeed in an enterprise wide manner
12. Business changing with technologies
A DX journey needs a staged approach with a clear roadmap, involving a variety of stakeholders, beyond silos
and internal/external limitations.
The movement involves moving from Information Management to
Intelligent Information Activation
13. How DX affects Project Management Practice
Project Management is the application of knowledge, skills, tools and techniques to project activities to meet
the project requirements
Projects and Programs are linked to the Organization’s Strategic Plan by means of Organization’s portfolio
Organizational Project Management is a strategy execution framework utilizing Portfolio, Programs and
Projects
47 project management processes are categorized into 5 process groups and also 10 knowledge areas
14. PM constraints
Some PM Constraints:
Scope
Quality
Schedule
Budget
Resources
Risk
Relationship between these factors is such that if any one factor changes at least one other factor is likely to
be affected.
DX changes the above paradigm. You can reduce budget and yet increase scope of the project
15. Project Manager with more Change Based Leadership
DX is not about one change but multiple changes that will create the transformation. Your most effective
management of time, cost and scope can easily be sabotaged by disengaged individuals, making you look like a
novice.
Your team now extends beyond your traditional stakeholders in terms of your competitors, influencers, your
clients, their kids, their friends
We have moved to a social era where social media trends, shares, and happenings shape our reality and
possibilities. You get to use that as an extended resource.
You must and should go ahead and find out about the plan of other leaders in your organization, and it’s
necessary to keep an eye on what they are doing
Be ready to change your plan, adjust it or reinvent it at any time
Project managers must own the vision as well whether you created it or not. When you don’t own the vision, it is
difficult to engage your team and lead them successfully
Ref: https://www.projectmanagement.com/blog-post/22513/6-Things-Every-Project-Manager-Must-Know-About-Digital-Transformation
16. OPM: Organizational Project Management
OPM is a strategy execution framework utilizing project, program and portfolio management as well as
organizational enabling practices to consistently and predictably deliver organizational strategy producing
better performance, better results and sustainable competitive advantage.
OPM utilizes organization enablers (structural, cultural, technological, and human resource practices) to
support strategic goals.
DX affects Organizational planning which in turn impacts projects
– Risks, Funding, Environment
17. Organizational Portfolio
Portfolios have an organizational scope that changes with the strategic objectives of the organization
Portfolio manager continuously monitor changes in the internal and external environment, changes strategies
and resource allocation
Success is measured in terms of aggregate investment performance
DX has a direct impact on Organizational Portfolio Management
18. Projects are authorized based on one or more of the strategic consideration:
Market demand
Strategic Opportunity
Social Need
Environmental Consideration
Technology Advance
Legal Consideration
DX has a direct impact on all the above areas
Strategic Planning
19. Changes in Organizational parameters due to DX
Organizational Structure
Stakeholder communications
Culture and Styles
Organizational Process Assets
Corporate Knowledge Base
Enterprise Environmental Factors
20. Changes due to DX ...
Culture and Style
Expectations change
Motivation and reward systems change
Risk tolerance
Work ethics and working hours
Operating environment
Communications
Globalization effects
New communication techniques
Organizational Structure
Functional to projectized
21. Organizational Process Assets affected by DX
Processes and Procedures
Initiating and Planning
Guidelines, policies, Templates
Executing Monitoring and Controlling
Change control procedures
Issue and defect management procedures changes
Organizational communication requirements
Work authorizations
Risk control procedures – risk categorization, risk statement templates
Performance measurement criteria
Corporate Knowledge Base
Historical information and lessons learnt may not be of much use
Issues and defect management may have to be redrafted
Baselines of performing procedures may have to be redrafted
22. Enterprise Environmental Factors affected by DX
Culture, Structure & Governance
Geographical distribution of facilities and resources
Infrastructure – Cloud based
Existing human resources to be reskilled
Marketplace
Established communication channels – social media
23. Process Groups – Areas that gets affected by DX
Initiating Process Group
Business Case/Customer Requirements
Project Charter
Planning Process Group
Resource calendars
Make or buy decisions
Training
Procurement documents
Executing Process Group
Organizational Process Assets & environmental
factors
Change Management
Partner Management
Monitoring & Controlling Process Group
Quality Control measurements
Closing Process Group
24. Ten Knowledge Areas – affected by DX
Project Integration Management
Project Charter, PM plan, Execution, Monitor
and Control, Integrated Change Control,
Analytical techniques and tools
Project Scope Management
Collect Requirements, define scope, create
WBS, Validate Scope, Control Scope
Project Time Management
Define Activities, Sequence Activities, Develop
Schedule, Control Schedule
Project Cost Management
Plan, estimate, budget, control costs
Project Quality Management
Plan, Perform Quality Assurance, Control
Quality
Project Human Resource Management
Plan, acquire, develop, manage
Project Communication Management
Plan, manage, control
Project Risk Management
Plan, identify, perform qualitative and
quantitative risk analysis, plan response,
control
Project Procurement Management
Plan, conduct, control, close
Project Stakeholder Management
Identify, plan, manage, control
