What it means to pursue digital transformation? How an architect, portfolio management, the CIO and rest of C-Suite can link strategy to operations.

1. A Digital Transformation
Journey
Sriram Sabesan
Summer Conference Ottawa 2017
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2. About
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• Sriram Sabesan
• Partner, Conexiam
• sriram.sabesan@conexiam.com
• 20+ years in Consulting
• Active in improving architecture
profession
• Active in Open Group
• Board of The Open Group
• Open CA Certification Board
• Architecture and Open Platform 3.0TM
Forum
• Shares knowledge openly
• Whitepapers
• Webinars
• Training
• IEEE
• Digital Transformation
• IASA

3. Conexiam
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Management consulting company
• Uses an enterprise architecture approach
• Operates in North America, Europe
& the Middle East
Two core services
• Develops client’s EA teams
• Delivers Enterprise Architecture
Contributing thought leaders
The Open Group
IT4IT™ Forum, Digital Transformation,
Architecture Forum, Cloud Forum,
Real-time Forum, Platform 3 Forum,
Security Forum
The SABSA Institute
Public commentary

4. Agenda
My Journey to the Great Reveal
The Seven Levers
Cultivating the Mindset
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5. Most Common View!
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6. This Mattered!
Lack of good understanding is bad for business
Simplify and Guide is our motto!
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7. Phase 1: Austin ‘16
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Assessment
Validation
Value Realization
Portfolio Manager
Enterprise Architect
View Slides here

8. Phase 2: San Francisco ‘17
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Engagement
Revenue
Delivery
Acceleration
Enterprise Architect
Product Owner
View Slides here

9. What Gave us a Pause?
Reception and Conversation made
us think more!
Blurry Big Picture!
Who is the right Audience?
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10. The Back Story
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11. Meet Meena – the Quantifier
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Work
Owns RFID
manufacturing
Company
Home
Time is of essence!
Personal
Stay Fit!

12. Meet Sukhi – a Kindred Spirit
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Solving similar Customer
Challenges
Significance of
Enterprise Boundary
Cyber-Physical
Continuum

13. Meet Tom – the Customer who wants to be
known
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Hi Amy, I will take the
“Usual” today!
Usual =
Knowing
past order
Shipment
Billing
payment
signature preference!
20+ Touchpoints
5 Processes
80+ Applications
4 Data Centers
Sales Fulfillment Billing Logistics

14. The a-ha Moment
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CxO
From Value Chain to Value Networks!
Surface to Core
End to End

15. The Whole Board – Seven Levers!
• Strategy, Not
Technology is key to
Digital Transformation
• Objective & Periodic
validation of directional
correctness
• Duh! Of course it takes
a village. Culture
eats…
Risk EthicsSecurity

16. Not This – Do That
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17. Business Process Management
NOT THIS
“I love the new app that allows to scan the items in the cart and pay for them
digitally. But my appreciation for their foray into digital transformation faded very
quickly when I had to return something. The electronic receipt did not suffice. I
needed my physical membership card and my physical credit card to get it done!”
– Ajith K
Digital transformation is
looking beyond shiny
apps and websites.
We need to re-architect
the business processes
to empower our
customers to self-direct
their experiences.
Avoid brick-walls and
dead ends that jolts
them to unexpected
physical interactions.

18. Business Process Management
DO THAT
Vehicle History Reporting
Company Connected Business processes
Rooted in a single question:
How can my service become
indispensable for the dealer?
The answer requires various
function to work together,
connect processes and
correlate to derive intelligence.

19. Business Process Management
THE TAKEAWAY
Instrument for intelligence on outcomes
you enable
Think impact to cycle times, agility,
ease of use

20. Customer Experience and Engagement
NOT THIS
The Booking appears to have been completed elsewhere than on <
.com> with either a travel agent or another location
Don’t throw a tantrum
that spells, “ If not from
my website I will make
your experience poor”
Ditch the short sighted
view - Broaden your
perspective!
Trade Global for
International!

21. Customer Experience and Engagement
DO THAT
An airline designing seamless
experience
Engage at the customer’s
touchpoint
• Engage at the customer’s
touchpoint
• Fold their needs and progress
into your value proposition
Picture Credit : KLM Airline blog

22. Customer Experience and Engagement
THE TAKEAWAY
Focus on customer and employee
Progress
Prioritize Emotional Engagement

23. Product and Services
NOT THIS DO THAT
Comfort in market share of
current product!
Over Experimentation
Improving productivity
Ease of Upgrade
Offer adjacent services

24. Product and Services
THE TAKEAWAY
Focus on customer outcomes and
empowerment
Proactive, Predictive and Personalized
services

25. IT is the root cause of…
NOT THIS DO THAT
Failed Projects
Need Citizen IT
Using for Competitive
Advantage
Analytics Engine
IT/OT bridge

26. Information Technology
THE TAKEAWAY
Learning tool & Culture enabler
Runtime efficiency conscious

27. Organization Culture
NOT THIS DO THAT
Overwhelmed by Data
Revisit every Decision /
Consensus Driven

28. Organizational Culture
THE TAKEAWAY
Purpose driven – not pressure driven
Playing for the long game – be
comfortable with data

29. Strategy
NOT THIS DO THAT
Boxed and Controlled
Comfort in Tag line

30. Strategy
THE TAKEAWAY
Staying true to the Core
configurations
Why are we in the business in the first
place

31. Ecosystem
NOT THIS DO THAT
Viewing as Supplier, Creator or
Distributor
Recognizing multi-sided market
Position in Value Network
Think of Adjacent Services

32. Ecosystem
THE TAKEAWAY
Value Network
Multi-sided marketplace

33. Risk, Security & Ethics
• After hiring risk officers, financial institutions are taking more
risks
• Economic gain vs Building Trust!
• Human dilemma experiments & the law!
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34. Risk, Security & Ethics
THE TAKEAWAY
Risk & Security
• Asset Model driving threat model
• Trust over failure
Ethics
Adaptive moral compass
Companies need to establish a moral compass
They need a transparent adaptive process to evolve

35. Impact of Half-Measures!
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36. Cultivating the practice and
letting go!
Remember Yoga attitude and Yoga Practice
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37. What is Digital Transformation?
Digital Transformation is fundamentally a strategy and an
operation model, wherein, technological advancements are
leveraged to improve the human experiences, operating
efficiencies and to evolve the products and services that
customers will remain loyal to.
It is the consequence of (a) the ability to handle information in the
digital form and (b) using digital technologies to manage the
process of creating, capturing and analyzing information to
deliver perceptive human-machine interaction experience. There
is lot that needs to happen to pull this off.
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38. Q&A
7/24/2017 38Sketch & Picture Credits: Shreyas, Vidhya, Bing Search Creative Commons

39. What to Pursue?
Lever Aspects Addressed
Business Process Transformation
(BPT)
Right balance of process discipline and instrumentation, phased rolling-in of all parts of the enterprise to build intelligent insights.
Using the same concepts of productivity and efficiency to understand customer behavior and interaction patterns.
Building processes that matches customer and partner touchpoints.
Customer Engagement and
Experience (CEX)
Experience is the emotion one feels about how they perceive, the product or service has fulfilled their expectations. It is
subjective, ephemeral and qualitative making it hard to measure.
Engagement is the behavior demonstrated by the interactions across touchpoints. It is intentional, measurable and quantitative. A
touchpoint is where a human or a system and the enterprise interact.
Correlate insights from business processes to deliver products or services that delights the customers, driving continually
increasing revenue.
Product or Service Digitization Creating products or services that is focused on the outcomes the customer wants. It may involve the use of digitization and/or
digital twins to promote effectiveness in the usage of the product or service.
IT and Delivery Transformation Applying the same business process optimization, interaction insights and customer experience driven product development to IT
operations of the enterprise. Arriving at consistent agility across IT and other functional areas of the enterprise that is in-sync with
the market expectations.
Organizational Culture Achieving transparency in decision making, informed by data; continuously learning to optimize the product and service portfolio;
focused on sustainability over cost optimization.
Strategy Choosing unique configurations of the value chain and making decisions to maximize the benefit from employment of concurrent
technologies. A deliberate choice to employ the levers mentioned for the benefit of the enterprise.
Ecosystem and Business Model Building and collectively growing the share of customer wallet with partners.
Cultivating a thoughtful approach to attract and retain partnerships that virtuously impacts the brand.
Drives laser clarity about core business focus of each player in the ecosystem.
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40. 7/24/2017 40
References
1. Digital Design of Organizations: MIT CISR: http://cisr.mit.edu/blog/documents/2016/04/21/2016_0401_digitaldesign_rosssebastianbeath.pdf/
2. http://cisr.mit.edu/blog/documents/2016/03/10/mit_cisrwp406_designingdigitalorganzations_rosssebastianbeathscantleburymockerfonstadkaganmoloneykrusellbcg.pdf/
3. http://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/
4. http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/
5. https://www.accenture.com/us-en/blogs/blogs-digital-what-is-digital-strategy
6. http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/digital-enterprise-narrative-final-january-2016.pdf
7. http://www.oracle.com/us/industries/financial-services/efma-digital-transformation-wp-2904165.pdf
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12. http://merage.uci.edu/ResearchAndCenters/CDT/Default.aspx
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14. http://www.mckinsey.com/business-functions/organization/our-insights/six-building-blocks-for-creating-a-high-performing-digital-enterprise
15. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/raising-your-digital-quotient
16. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/strategic-principles-for-competing-in-the-digital-age
17. Jane McConnell. "The Company Cultures That Help (or Hinder) Digital Transformation". Hbr.org. Retrieved 2017-01-12.
18. Rhys Grossman. "The Industries That Are Being Disrupted the Most by Digital". Hbr.org. Retrieved 2017-01-12.
19. Digital Transformation: A Roadmap for Billion-Dollar Organization (PDF) (Report). Capgemini Consulting. 2011.
20. Jim Lecinski, ZMOT: Winning the Zero Moment of Truth (Google, 2011)
21. https://hbr.org/2016/09/know-your-customers-jobs-to-be-done
22. http://www.90percentofeverything.com/2009/10/20/just-add-an-egg-usability-user-experience-and-dramaturgy
23. https://hbr.org/2016/08/the-30-things-customers-really-value
24. http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-enterprise-architects-can-help-ensure-success-with-digital-transformations#0
25. Digital Transformation: Strategy to Implementation using Open Group Standards, January 2017, published by the Open Group; refer to: www2.opengroup.org/ogsys/catalog/W170
26. First, Break all the Rules! Marcus Buckingham, Curt Coffman, Gallup Press, 1999
27. How Company Culture Shapes Employee Motivation, HBR, Nov 2015