The document outlines best practices for digital transformation based on a presentation by Arrk Group. It discusses the importance of digital transformation for businesses and the need for clear leadership and vision. It also emphasizes building a digital-first culture, digitizing customer experiences, creating a unified digital platform, focusing on agile execution, and learning from digital examples in areas like instant loans and stock updates.

1. Arrk Group: Digital Transformation Best Practice
Ian Southward
Managing Director
Date: February 2014
© 2014 All materials property of Arrk Limited

2. Digital Transformation Best Practice: Agenda
 The Digital Imperative
 Leadership, Vision and Strategy for Digital Transformation
 Organisation and Culture
 Digitising the Customer Experience
 Building a Digital Platform
 Execution and Delivery
 Digitisation Examples
© 2014 All materials property of Arrk Limited
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3. The Digital Imperative
According to research conducted by Cap Gemini, Companies embracing an holistic approach to
digital transformation are:
9 - 26% more profitable
than their industry sector
competitors
Generate 9% more revenue
than their competition
through their employees
and physical assets
Create more
value, generating 12%
higher market valuation
ratios
In an April 2013 McKinsey Survey, 65 per cent of CEOs polled
said they expected that an adoption of a fully integrated digital
platform would increase their companies’ operating income over
the next three years
© 2014 All materials property of Arrk Limited
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4. The Digital Imperative
This presentation summarises how best-in-class digital companies are becoming digital in a few key
dimensions:
 Leadership, Vision and Strategy
 Organisational and Cultural Challenges
 Digitising the Customer Experience
 Building a Digital Platform
 Execution and Delivery
© 2014 All materials property of Arrk Limited
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5. Digital Strategy: Vision
 Build a digital business that will help us to scale quickly, at low cost and high quality
to build a highly competitive, automated business that will help achieve our growth
ambitions
 Think digital first, or as the UK Government puts it, “Digital by Default”
 Digitise key business processes by priority determined by their impact upon our
growth, minimal marginal cost and greater transparency and automation
 Digitise Customer Engagement processes so that they can do more self-management, make
payments, check balances, undertake what if analysis and become self-sufficient of our call
centres. This will save time, cost and resources
 Digitise internal processes to better automate our value chain, reduce cost base and utilise
publicly available information to things like trace
 Automate identity and fraud checks for greater compliance and reduced risk
 Harness Mobile payment technologies for more reliable and lower cost payments
 Build a common digital platform for digital by default services which will significantly impact
the value of the business
 Base management decisions on a real time analytics engine to give far greater accuracy of
information and consequent decisions
 Make life simpler for our customers and staff by allowing them real time communications
tools to interact fully and effectively with out resorting to calls and emails
© 2014 All materials property of Arrk Limited
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6. Leadership, Vision and Strategy for Digital Transformation
 A clear business digitisation strategy driven from the very top of the organisation
 Strategy should be Enterprise wide but the implementation and transition phased and
iterative.
 Clear goals should exist for each business unit and expected business benefits from
digitisation should be stated
 Try, measure, evolve to reflect rapid changes in digital capabilities and trends
 Governance processes must reflect the need to pioneer, accept small failures, learn fast and
continually evolve the ideal mix of digital capabilities for your organisation.
 Transform and innovate within each business unit and at the enterprise level
 Deliver consistency to clients, staff and partners
 Design new cross business unit services to deliver value add and competitive advantage
 Innovate with partners
 A digital strategy and roadmap should be continually evolved to adapt to
 Rapidly changing trends
 New technologies
 Competitive pressures and
 Market conditions
© 2014 All materials property of Arrk Limited
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7. Organisation and Culture
 Established processes and knowledge workers can stifle innovation and entrepreneurial spirit.
Businesses need to promote an entrepreneurial culture across the organisation.

Many lean, innovative digital start-ups are already revolutionising industries and companies such as
Blockbuster are no longer in business as they failed to see where their industry was heading.
 Your organisation will need to adopt an entrepreneurial mindset and embed it in its culture.

Your staff are already using digital technologies to make gradual but significant changes to their daily lives
as consumers, they are going to expect the same as employees. They will have ideas.

Leading digital companies are trying out digital technologies to revolutionise the way employees collaborate
and communicate. They are also ensuring that digital ideas are captured, prioritised and harnessed.
 Let your employees know that from now on, you want them to think and act like digital start
entrepreneurs and to bring ideas and then ensure you have governance that invests in those
ideas.
 It must be clear that digitisation is supported from the top and the board is focussed on securing
the right digital future for the company.

Many organisations are creating the role of Chief Digital Officer, others are embedding the digitisation
responsibility within various senior roles.

Whichever way you do it, building an organisation with the structure and mindset to think and act like a
digital entrepreneur is key to success.
© 2014 All materials property of Arrk Limited
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8. Digitising the Customer Experience
 The Customer Experience is one of the first places companies look at for rapid
Return on Investment for the digital initiatives
 Great benefits can be had from digitising the way customers engage with your organisation
and deliver benefits such as increased automation, improved quality, reduced costs and a
better overall customer experience and positive brand perception.
 Customers expect to be able to engage digitally with your organisation across all
touch points and also expect that you can use all the data you have about them to
personalise their experience and fill in forms automatically, provide service or
product recommendations that are relevant and context sensitive
 Best in class digital companies are digitising the entire customer facing processes
across all channels and across all parts of the enterprise to provide a consistent
experience
 They are also making previously internal only processes available to customers to increase
the level of self-management customers can undertake.
 Use big data capabilities to analyse the huge amounts digital information
 Use this data and social networks to solicit feedback, try out new offers and gauge
customers reactions to new innovations
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9. Building a Digital Platform
 Build a digital platform upon which interfaces to all key services in legacy and 3rd
party applications. The platform should interface to all social networking platforms
and support engagement with customers through any channel and any device
 Use both real time and batch based analytics so your organisation can respond to
real time transactions/postings being made by your customers but also analyse the
huge amounts of digital information to lean new and interesting emerging trends
and business insights
 Make use of NoSQL databases such as Neo4J to find interesting relationships
between seemingly unconnected data to better understand their customers and
their businesses
 Automate processes as much as possible to support a truly rich digital customer
and partner experience. This includes automating knowledge based processes.
 They are of course making use of cloud based technologies to drive down cost and
speed time to market and provide massive scalability. They are using best of
breed, proven open source tools for much of the interfacing to legacy and third
party applications.
© 2014 All materials property of Arrk Limited
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10. Execution and Delivery
 Rapid Execution and Delivery of digital initiatives is vital
 Your organisation will need an efficient way of generating ideas for digital initiatives and can
it execute on these quickly
 The process used for developing a digital initiative must be designed from a complete User
Experience perspective and delivered using a highly iterative and agile based delivery
methodology
 Once live, you must
 Constantly monitor usage and actively seek feedback from customers
 Have a steady flow of new features and functionality and be bold in trying out new features
 Listen for what customers think and deploying changes quickly
 Adopt Agile engineering practices and deliver in short iterations will help keep time
to market to a minimum and keep code quality high
 Many organisations start their digital initiatives within particular business units.
However, it is important that the customer sees an end to end, joined up digital
experience.
 Develop an overall digital platform which you can continually evolve
 Package and present services through the platform to ensure investments in particular
business unit initiatives can be deployed enterprise wide
© 2014 All materials property of Arrk Limited
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11. Example of Digitising Business Process: Instant loan application
© 2014 All materials property of Arrk Limited
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12. Example: Overnight stock market changes
© 2014 All materials property of Arrk Limited
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13. Thank You
We Deliver!
Ian Southward
Managing Director
Date: February 2014
© 2014 All materials property of Arrk Limited