Conviction, Alignment, Agility are the three keys to staying on the right side of the digital divide. As the world becomes more programmable, digital leaders are turning conviction into a case for change and plan of action through alignment and agility. Digital leaders achieve alignment by making digital experiences a priority for all teams and connecting digital investments to key performance indicators. They demonstrate agility through an options-based approach to ROI using criteria like satisfaction, efficiency and revenue to evaluate digital investments over multiple scenarios. A programmable world means every sector is now in a race to build digital ecosystems, and alignment and agility are critical for organizations to scale their digital assets and stay ahead of competitors.
4. The world is becoming programmable
20B
3x
Internet of Things
Wearables
Smart TVs
$20T
13.8%
10B
Tablets
3x
Smartphones
PCs
2018E
2017E
2016E
2015E
2014E
2013E
2012
2011
2010
2009
2008
5. What happens when digital capabilities diverge?
Digital
Leaders
53%
Digital
Laggards
47%
Average score deploying apps, using data
analytics, and operating APIs today:
24 out of 30
Average score deploying apps, using data
analytics, and operating APIs today:
14 out of 30
Survey of executives in 200 large companies across 30 industries, May 2013.
6. A “digital divide” that is real now…
“Digital Leaders”
Segmentation on strength now deploying
apps, operating APIs & using data analytics
Outperformance past 12 months on
revenue/margin, satisfaction, share, new
products
High Confidence in much stronger
competitive position over next 5 years
Digital Impact on enterprise KPIs that’s big in
next 12 months & increasing a lot over 5 years
53%
“Digital Laggards”
48%
63%
37%
71%
81%
29%
19%
7. …and that promises to grow
Big digital impact next 12 months
+ increasing great deal over next 5 years
Strong
outperformers
on this KPI +
chose as a top
area for digital
impact going
forward
Efficiency &
time to market
Customer
satisfaction
Digital Leaders
78%
Digital Laggards
Digital Leaders
Digital Laggards
50%
13%
Digital Leaders
64%
Revenue
Digital Laggards
13%
9. Digital Leaders are turning conviction…
Extremely
Smart, connected
devices
Relevance of
trend to
competitive
position over
next 5 years
Instrumentation &
data insights
Apps & network
effects
Platform strategy &
digital ecosystems
Not at all
53%
40%
25%
43%
53%
45%
24%
56%
43%
17%
39%
48%
46%
15%
45%
41%
10. …into a case for change and plan of action…
Strongly Agree
Compelling
vision
Executive
priority
Project priority
Digital Leaders
Digital Laggards 6%
Digital Leaders
Digital Leaders
Digital Leaders
Digital Laggards 6%
53%
43%
35%
Digital Laggards 6%
Digital Laggards 3%
Strategy for
creating value
with apps, APIs
& analytics
34%
Agree
50%
43%
31%
48%
39%
33%
52%
39%
Survey of executives in 321 large companies across 26 industries, Sept-Oct2 013.
13. Blueprint for alignment and agility
Y
• Deploying apps
• Operating APIs
• Using data
analytics
X
•
•
•
•
Alignment between
Marketing & IT
Right ROI criteria for
digital investments
Connecting digital to
enterprise KPIs
15. Alignment: Digital experiences are everybody’s job
Digital Leaders
Digital Laggards
Velocity
Velocity
Physical
Assets
Density
Depth
Digital
Assets
Physical
Assets
Digital
Assets
Density
Depth
16. Agility: Three ROI criteria, together in the toolbox
Average score on connecting
digital to KPIs
1.25
1.00
Options-based strategy:
Real
options, Satis
faction, Efficie
NPV, Satisfac ncy
tion, Efficienc
y
Competitive
benchmark
Neither
Satisfaction
nor Effiicency
•
Certainty impossible
•
Change inevitable
•
“Fail or scale”
Options-based financials
•
0.75
1.00
Average score on digital ROI decision-making
1.25
Quantify what-ifs
•
0.75
Project scenarios
•
"Ad hoc"
Build to re-purpose
17. Case study #1
“…All teams will henceforth expose their data and functionality through
service interfaces. All service interfaces, without exception, must be
designed from the ground up to be externalizable. That is to say, the
team must plan and design to be able to expose the interface to
developers in the outside world. No exceptions. Anyone who doesn’t do
this will be fired.”
Jeff Bezos CEO, Amazon
18. Agility: Aligning investment criteria with enterprise KPIs
Digital
ROI
Pattern
Efficiency & time
to market
Market
Leadership
KPI
Satisfaction /
Share
Revenue /
Margin
% of digital
assets
externalizable
Scale of digital
ecosystem
% of profit in
sector
19. In a programmable world, this race is on in every sector
Tablets
Smart
phones
Wearable
Electronics
Partner
Integration
Kiosks
Your
Digital
Assets
Open
Innovation
Connected
Cars
Smart
Sensors
Smart
Appliances
Gaming Consoles
22. We would love your feedback!
Don’t forget to fill out the session’s
survey – found in the session details
on the conference app
#iloveapis
Hinweis der Redaktion
Digital transformations are essential to survive and thrive in the contemporary digital economy. But how do you know that you are laying a solid foundation on which to build your digital business? Do you have the right strategy, people, and operations in place to not just withstand, but to adapt and grow with unpredictable future conditions? In this session, hear the real world findings from the Apigee Institute onwhy the digital divide is rapidly growing and how leading enterprises have the conviction, alignment, and agility required to be the dominant players of tomorrow.
According to research !rm IDC, the size of total worldwide e-commerce, when global business-to-business and consumer transactions are added together, will equate to $16 trillion in 2013. When added to the global market for digital products and services—which IDate, the French technology research !rm, estimates at $4.4 trillion in 2013—the total size of digital economy is estimated at $20.4 trillion, equivalent to roughly 13.8% of all sales #owing through the world economy. Given the magnitude of these numbers, it is clear that the digital economy is coming of agehttp://www.corp.att.com/emea/docs/the_new_digital_economy.pdf
Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.
Important: these are expectations among folks who already were outperformers…so folks who were “good” at these things previously.