digital ops model and transformation

1. And what it means for IT and culture
The Journey to a New Digital
Operating Model
London, 23rd November,
Max Bocchini and Ishita Fernandes

2. 2© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Agenda
 The need for a new Operating Model (Digital and ‘All-Agile’)
 The transformation journey and its challenges
 What for the IT function?
 The culture and skills challenge
 Digital Leadership
 Communication initiatives in driving change

3. 3© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Digital is now a transformation journey to ‘all-agile’ on a cloud, data and automation
backbone

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.
Transformation Strategy Transformation Design Transformation Delivery
1. Agile @ Scale (applying agile
practices at enterprise scale)
2. Agile IT platforms and DevOps
3. Microservices infrastructure
and API ecosystem
1. Digital Experience on
external fintech networks
2. Customer Designed Products
& Services
3. Data @ scale and on cloud
1. Strategic Partnering
2. Specialist Managed Service
(e.g. Architecture Service)
3. Contractor Managed Service
1. Transformation blockers:
Demand, investment and
release management;
deployment; environment
provisioning
2. Robotics automation and
cognitive computing
3. API and DevOps enablement
4. Infrastructure/platform
Management automation
Transformation Flow
Forces Driving the Transformation Journey
Speed of
Change
Resourcing
Innovation
Key forces of
transformation
Cost of
Change
Such digital transformation journey is made of 4 must-have capabilities, all of
which are required

5. 5© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Our experience indicates that technology is only part of the answer to digital success
Capability Typical Blocker
Lack of structured, collaborative cross-functional
management of both supply and demand across the
life-cycle
Need to roll out a standard Agile @ Scale method in
support of a Release model across all parts of IT
Complex process across IT silos mean that
production deployment can be up to 3-4 months
longer
Difficult to understand and track value of project,
especially within MVP and linkage to portfolio
management
Massive silo mentality and behaviours within IT
areas, let alone between IT and product functions,
operations
Infrastructure provisioning too slow, needs to be
optimised in support of continuous delivery and
testing
Missing link to wider communication to emphasis
impact to ways of working and link to
Financial Services organization USP
2. Release Management
3. Deployment
5. Investment Management
6. Leadership Behaviour
4. Environment Provisioning
7. Communication
1. Demand Management
Our experience
Deploy pre-defined set of processes and model options in
support of the set-up of cross functional Demand in Agile
Customise to the right selected method (e.g. SAFe); ‘wear a
pragmatic hat’ to adopt
Review and assess the end-to-end Deployment process to
identify gap to DevOps practice and implement
Define a investment management process to cater for MVP and
on-going agile @ scale work
Adopt a change mgt. programme structure, with proactive mgt.
of C-level stakeholders and HR; inclusive of ‘leadership’ training.
Redefine the leadership KPIs to ensure teaming across functional
lines (as a starting point of a possible re-org)
Support with detailed scripting for environment automation, part
of wider platform management automation; longer term move to
IaaS platfomr
Design the digital transformation messaging, to ensure linkage
with the broader financial institution strategic drivers, inclusive
of C-level cascading down regular updates to the leadership
However the journey is doomed to failure unless a number of blockers are tackled
head-on as part of the early planning

6. 6© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
The new Digital silos have created his own problems, often exacerbating the IT/Business divide
Organisations have been trying to tackle theses problem blockers by often creating
a new silo, ‘the digital one’

7. 7© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Factory ‘DevOps’
Teams Have
Access to all
Environments
(new) aaS
optimised Data
Base cluster
Digital Customer Journeys
Post Release
DevOps Teams
1. Wrap non-SaaS estate in micro-services/APIs
2. New business logic is built only in DevOps factories
3. New master data becomes a aaS optimised DB
4. DevOps merged teams: dev, test, IT Ops, product
1
2
3
4
Etc
Windows
Packages
Coen
Core1
Non-SaaS estate
Messaging or Restful backbone
for micro-services and API access
aaS Micro-Services
 Salesforce
 AWS Market Place
 Azure
 Watson
 Etc.
Build micro-services/APIs to
access the existing non-SaaS
estate (eg. Mainframe, AS/400)
New Emerging Digital Transformation Architecture
Target state characteristics
 Shared customer journeys ALL across business units
 Release many times in a week: build and deployment to
Production
 Automatic environment provision
 DevOps teams organized as factory lines by:
‒ Technology expertise lines (e.g. Java, C++ vs. C vs. Scala)
‒ Functional expertise lines (e.g. payments, mortgages,
portfolio management)
To fix the failure of the Digital silos, a new development and deployment pattern is
emerging, one that ensure ALL teams can participate into it
On Non-aaS Estate:
• Existing teams (eg.
mainframe, cobol)
included in agile
scrums
• Existing team in
charge of the micro-
services/APIs
• No new dev on
platform itself unless
for ‘regulatory’
reasons

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SCALEOF
BENEFITS
Early Pilot
Dedicated team of
skilled developers
and operators
delivering a single
service
Focus on processes,
additional tooling,
removing commercial
blockers, automation
CASE FOR
WIDER
ROLLOUT
ESTABLISHED
3
If ways of working are not
properly embedded, eventually
teams will revert to “Business
as Usual” with Digital Silos
(i.e.no benefits!)
Extended
Pilots
Minimal
Up to 30-50%
STAGES
SUCCESS
STORY
RECOGNISED
Integration into wider
Portfolio
LEADING
DIGITAL ‘ALL-
AGILE’
OPERATING
MODEL
6
Optimising and continuous
improvement, defined
ambition with business
goals, Digital Culture &
collaboration
Digital culture change and silo-busting can only sustain itself through a continuous
programme of change linked new KPIs and ways of working
 Blueprint and test new way of
working
 Pave the way by identifying and
removing hurdles
 Capture early benefits
 Become showcase and spread
lessons learned
 Own and drive transformation
master plan
 Monitor organization and ensure
progress against KPIs
 Provide new ways of working
coaching
 Drive broader communication
and training2
1

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The How: What turns technology investments into
business results?
BUILD AWARENESS
INNOVATE WORK
PRACTICES
BUILD COALITION OF
CHAMPIONS
DESIGN
GOVERNANCE MODEL
ALIGN TOP TEAM
ENGAGE EMPLOYEES
DESIGN FUNDING
MECHANISM
CRAFT VISION
BUILD ROADMAP
Digital Transformation Programme Management
FRAME MOBILIZEFOCUS
INSTILL DIGITAL
CULTURE
ALIGN INCENTIVES
&REWARD
BUILD DIGITAL SKILL
SUSTAIN

10. 10© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Profile of Front-Runners
Front-Runners outperform Followers and Slow-Movers on all seven dimensions of digital culture
(percentage of organisations who agree on high prevalence of digital culture dimensions in their
organisations).
75% 17% 0%
77% 15% 1%
91% 65% 21%
53% 6% 1%
60% 14% 0%
37% 37% 31% 96% 53% 4%

11. 11© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
The CEO is the Digital Leader, enabling clear messaging, objectives and governance of the Bank’s digital agenda. In a Digital Culture the CEO and
leadership are at the heart of driving the transformation agenda in the organisation.
Governance that avoids silos with joint KPIs, budgets and objectives aligned to digital priorities can begin to cut through often time consuming
decisions and bottlenecks. Collaboration between these organisations and roles will enable development of successful digital programmes that are
both pulling from the customer demand and requirements as well as pushing new products into the market with a positive customer experience and
core focus on IT enablement will drive a resilient service.
Leadership Roles and Behaviours to enable and maintain
a digital culture
IT
Innovator
Digital
Innovator
Banking
Innovator
KPIs
Budgets
Objectives
Knowledge Sharing
Joint Teams
Jointly
agreed

12. 12© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
Promoting a Digital Culture – Core Success Factors
Leadership at
all levels
Close silos
Training and
Development
Allow for
failure
Collaborative
Working
Willingness to
try new
things
Joint KPIs
Create
bandwidth
Organisational
Sharing
Promote
Success
Career models
Talent
Management
Cross
Pollinate
Teams
 Culture is the slowest to change because people have been rewarded and measured to behave and operate in the same way for a long time and it is
deeply ingrained. Often there a number of subcultures depending on how you would work. It is very difficult to change how people think so its
easier to change what people do and empower them. Communication programmes need to underpin these core success factors
Key Cultural Change
Success factors

13. 13© Capgemini 2017. All rights reserved |Presentation Title | Author | Date
CEO Leadership driven – top down objectives and commitment
CEO Leadership driven – connect on all areas of the bank on progress and
recognition of programmes
Focus on teams and new ways of working, evangelise success stories
Fast paced “Netflix” style on demand digital training and enablement
At speed collaboration through Accelerated Solutions Environments
External engagement, industry focus on though leadership and new Banking
initiatives
Engagement across the Bank on new ideas for customer engagement and
implementation of digital strategies
Q & A Sessions with industry disrupters
Voice of the Customer Session, open views from customer focus groups
Communication Programmes to promote a Digital Culture
Digital Webcasts
Training and Development
-informal webex based sessions
-digital virtual and e-learning
Accelerated Solutions Environments
Townhall Sessions
Collaboration teaming “Day in the Life”
“Digital News”
Innovators Race
Disrupter Days

14. A global leader in consulting, technology services and digital transformation,
Capgemini is at the forefront of innovation to address the entire breadth of clients’
opportunities in the evolving world of cloud, digital and platforms. Building on its
strong 50-year heritage and deep industry-specific expertise, Capgemini enables
organizations to realize their business ambitions through an array of services from
strategy to operations. Capgemini is driven by the conviction that the business
value of technology comes from and through people. It is a multicultural company
of 200,000 team members in over 40 countries. The Group reported 2016 global
revenues of EUR 12.5 billion.
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