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with Johann Botha
Lead Author
VeriSM Unwrapped and Applied
BELGIUM
DIGITAL IS THE MAIN REASON THAT
OVER 50%
OF THE COMPANIES ON THE FORTUNE 500
HAVE DISAPPEARED SINCE 2000.
(SOURCE: WORLD ECONOMIC FORUM)
DATA-DRIVEN ORGANIZATIONS
ARE…
23X MORE LIKELY TO ACQUIRE CUSTOMERS
6X AS LIKELY TO RETAIN CUSTOMERS
19X AS LIKELY TO IMPROVE ROI
(SOURCE: MCKINSEY GLOBAL INSTITUTE)
85%
OF MILLENNIALS ARE MORE
LIKELY TO PURCHASE A
PRODUCT OR EXPERIENCE
THAT IS PERSONALIZED
(SOURCE: CMO.CPM)
27%
OF EXECUTIVES RATE DIGITAL
TRANSFORMATION AS A
MATTER OF SURVIVAL
(SOURCE: CAPGEMINI)
Old Business Cycles
New Business Cycles
Frequency
New cycles come faster
Amplitude
New cycles
have greater
volatility
ORGANIZATIONS NEED TO ADAPT AND REACT
FASTER THAN BEFORE TO SURVIVE.
THAT TASK GETS EVEN MORE COMPLICATED WHEN ONE
ACCOUNTS FOR THE RATE OF TECHNOLOGY CHANGE.
(SOURCE: INFO-TECH RESEARCH GROUP)
ENOUGH NOW
WE KNOW THE HYPE!
HOW DO WE DO IT?
Just doing it is maybe not the
best strategy in this instance.
Frequently asked strategic questions about
VeriSM and Digital Transformation
1. How do you know if your strategy is appropriate for a
digital age?
2. “We are an innovative organisation – we keep on
improving things” but is that enough to survive long
term? Maybe not!
3. Which products and services needs to be changed or
replaced to ensure your competitive position a digital
market
4. What about the way that you operate, should you
change that also?
5. Most organisational change initiatives fails, the larger
the change the higher the risk of failing. How do you
prevent that?
How do you know if your strategy is
appropriate for a digital age?
Easy (but wrong) answers.
Because
…your customer tells you so
…your sales figures tells you so
…your competitors tells your customer so
The problem with these is that its either history, or
by the time you realise your strategy is
inappropriate – you are history!
…you don’t constantly evaluate your products market related
performance
…you have a product or service centric strategy (versus
customer centric)
…you still don’t get the difference between digitisation and
digital transformation
…the last update to your product/service portfolio was done
more than 6 months ago!
…your gut feel tells you so
…you asked the question
Sometimes, its easier to know what you don’t want!
Erna Botha
How do you know if your strategy is NOT
APPROPRIATE for a digital age?
Disruptive innovation
“If you defer investing
your time and energy until
you see that you need to,
chances are it will already
be too late.”
Clayton Christensen
Diffusion of innovation
“Out of clutter, find simplicity.
From discord, find harmony.”
Everett M. Rogers
Chasms and Systems-of…..
“Technologies from a prior era,
once the focal point of innovation,
now become the scaffolding upon
which next-generation innovation
will build.” Geoffrey Moore
“We are an innovative organisation – we keep
on improving things, surely we must be OK?”
• How many people here feels that this applies to them?
• Tell me a bit about three major improvements in the last
24 months
• Do you understand the difference between digitisation
and digital transformation?
• Did you know that there are different rules for different
types of innovation?
Digitisation versus Digital Transformation
VeriSM Digital Transformation Model
“We are an innovative organisation – we keep on
improving things, surely we must be OK?”
What type of innovation are you doing?
Is that truly transformative?
Digitisation and other operational innovations are important
BUT they have diminishing returns!
Which products and services needs to be changed or
replaced to ensure your competitive position a digital
market?
SIMPLE ANSWER – ALL, everyone, your entire portfolio!
Not all needs to be digital products or service though!
Lets look at likely candidates:
EARLY MAJORITY (34%) - LATE MAJORITY (34%)
INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%)
FUTURE
FOCUSED
INNOVATION
(DISRUPTIVE)
FUTURE
FOCUSED
INNOVATION
(DISRUPTIVE)
FUTURE
FOCUSED
INNOVATION
(DISRUPTIVE)
CUSTOMER
FOCUSED
INNOVATION
(SUSTAINING)
OPERATIONAL
FOCUSED
INNOVATION
(EFFICIENCY)
OPERATIONAL
FOCUSED
INNOVATION
(EFFICIENCY)
INSIDE THE ORGANISATION
99.9%
GUARANTEED TO
FAIL UNDER
NORMAL
OPERATIONAL
CONDITIONS!
POINTLESS
DON’T
BOTHER
My preference of tools or methods
VeriSM provides high-level NON- prescriptive
guidance, sometimes its handy to get more detailed
guidance. Here is MY (VeriSM compatible but mot
prescribed) tools to use:
EARLY MAJORITY (34%) - LATE MAJORITY (34%)
INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%)
FUTURE
FOCUSED
INNOVATION
(DISRUPTIVE)
BIC (Explore),
Design Thinking,
Kaikaku (Lean),
Lean Start-up &
Agile
FUTURE
FOCUSED
INNOVATION
(DISRUPTIVE)
BIC (Explore &
Expand), Design
Thinking, Kakushin
or Kaizen (Lean),
Agile
OPERATIONAL
FOCUSED
INNOVATION
(EFFICIENCY)
BIC (Expand)
Kaizen (Lean) &
Agile
DON’T
BOTHER
LEAN
Business
Innovation
CirclesTM
LEARN
MEASURE
BUILD
NEW IDEAS
assumptions MVP
actionable
metrics
persevere
pivot
From the Lean Startup © Eric
Ries 2011
This is new and
(most probably)
replacing something
else in your existing
portfolio. Must be in
a sandbox.
Look for users of the product
that are not mainstream. Start
developing something new for
them. Do this by creating a
innovation sandbox to focus on
building an MVP
Keep cutting
overheads/cost
Listen to customers and improve products by
adding features or by refining offering.
You can use a sandbox or do it as part of
operations
You either decided that this is a
cash cow OR you are in danger
of being too late! Urgently start
an innovation sandbox
Which products and services needs to be changed or
replaced to ensure your competitive position a digital
market?
EARLY MAJORITY (34%) - LATE MAJORITY (34%)
INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%)
What about the way that you operate, should you
change that also?
The TOP-JOB of leadership in organisations are?
A PORTFOLIO DRIVEN ORGANISATIONS
PRODUCT OWNER 1
PRODUCT OWNER 2
Value-stream 1 (part of service Y)
Value-stream 2 (part of service Y)
Value-stream 3 (part of product X)
Value-stream A (feature of product Z)
Value-stream B (feature of product Z)
Value-stream C (service α)
CUSTOMER 1
CUSTOMER 1
CUSTOMER 2
CUSTOMER 2
CUSTOMER 3
RESOURCES
CAPABILITIES







 


 


© JH Botha – Business Innovation CirclesTM
Portfolio Management!
Which products and services needs to be changed or
replaced to ensure your competitive position a digital
market?
•Two alternatives (in fact we use both!)
Short answer – be a better leader!
Slightly longer answer - Lean Management
principles – evolutionary change sticks!
Most organisational change initiatives fails, the larger
the change the higher the risk of failing. How do you
prevent that?
Most organisational change initiatives fails, the larger
the change the higher the risk of failing. How do you
prevent that?
Second short answer – Embrace Agility (NOT agile)
Slightly longer answer – agility is about thinking differently not a
method, its always hard work for leaders!
Release Date
Aug 2019
The VeriSM™ approach supports organizations to better
select, apply & integrate methodologies, frameworks and
technologies that support their daily operations and
strategies – and govern them under one model
VERISM CASE
STUDY
SUMMARIES
VeriSM™ is COMMUNITY DRIVEN
© 2019 IFDC All Rights Reserved
IFDC and VeriSM are registered trademarks
All product names, logos, and brands are property of their respective owners. All
company, product and service names used in this website are for identification
purposes only. Use of these names, logos, and brands does not imply
endorsement.
International Foundation for Digital Competences (IFDC) is based in The
Netherlands, with Chamber of Commerce number: 68962665.
Thank You
VeriSM 2019

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VeriSM 2019

  • 1. with Johann Botha Lead Author VeriSM Unwrapped and Applied BELGIUM
  • 2. DIGITAL IS THE MAIN REASON THAT OVER 50% OF THE COMPANIES ON THE FORTUNE 500 HAVE DISAPPEARED SINCE 2000. (SOURCE: WORLD ECONOMIC FORUM)
  • 3. DATA-DRIVEN ORGANIZATIONS ARE… 23X MORE LIKELY TO ACQUIRE CUSTOMERS 6X AS LIKELY TO RETAIN CUSTOMERS 19X AS LIKELY TO IMPROVE ROI (SOURCE: MCKINSEY GLOBAL INSTITUTE)
  • 4. 85% OF MILLENNIALS ARE MORE LIKELY TO PURCHASE A PRODUCT OR EXPERIENCE THAT IS PERSONALIZED (SOURCE: CMO.CPM)
  • 5. 27% OF EXECUTIVES RATE DIGITAL TRANSFORMATION AS A MATTER OF SURVIVAL (SOURCE: CAPGEMINI)
  • 6. Old Business Cycles New Business Cycles Frequency New cycles come faster Amplitude New cycles have greater volatility ORGANIZATIONS NEED TO ADAPT AND REACT FASTER THAN BEFORE TO SURVIVE. THAT TASK GETS EVEN MORE COMPLICATED WHEN ONE ACCOUNTS FOR THE RATE OF TECHNOLOGY CHANGE. (SOURCE: INFO-TECH RESEARCH GROUP)
  • 7. ENOUGH NOW WE KNOW THE HYPE! HOW DO WE DO IT? Just doing it is maybe not the best strategy in this instance.
  • 8. Frequently asked strategic questions about VeriSM and Digital Transformation 1. How do you know if your strategy is appropriate for a digital age? 2. “We are an innovative organisation – we keep on improving things” but is that enough to survive long term? Maybe not! 3. Which products and services needs to be changed or replaced to ensure your competitive position a digital market 4. What about the way that you operate, should you change that also? 5. Most organisational change initiatives fails, the larger the change the higher the risk of failing. How do you prevent that?
  • 9. How do you know if your strategy is appropriate for a digital age? Easy (but wrong) answers. Because …your customer tells you so …your sales figures tells you so …your competitors tells your customer so The problem with these is that its either history, or by the time you realise your strategy is inappropriate – you are history!
  • 10. …you don’t constantly evaluate your products market related performance …you have a product or service centric strategy (versus customer centric) …you still don’t get the difference between digitisation and digital transformation …the last update to your product/service portfolio was done more than 6 months ago! …your gut feel tells you so …you asked the question Sometimes, its easier to know what you don’t want! Erna Botha How do you know if your strategy is NOT APPROPRIATE for a digital age?
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  • 12. Disruptive innovation “If you defer investing your time and energy until you see that you need to, chances are it will already be too late.” Clayton Christensen
  • 13. Diffusion of innovation “Out of clutter, find simplicity. From discord, find harmony.” Everett M. Rogers
  • 14. Chasms and Systems-of….. “Technologies from a prior era, once the focal point of innovation, now become the scaffolding upon which next-generation innovation will build.” Geoffrey Moore
  • 15. “We are an innovative organisation – we keep on improving things, surely we must be OK?” • How many people here feels that this applies to them? • Tell me a bit about three major improvements in the last 24 months • Do you understand the difference between digitisation and digital transformation? • Did you know that there are different rules for different types of innovation?
  • 16. Digitisation versus Digital Transformation VeriSM Digital Transformation Model
  • 17. “We are an innovative organisation – we keep on improving things, surely we must be OK?” What type of innovation are you doing? Is that truly transformative? Digitisation and other operational innovations are important BUT they have diminishing returns!
  • 18. Which products and services needs to be changed or replaced to ensure your competitive position a digital market? SIMPLE ANSWER – ALL, everyone, your entire portfolio! Not all needs to be digital products or service though! Lets look at likely candidates: EARLY MAJORITY (34%) - LATE MAJORITY (34%) INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%) FUTURE FOCUSED INNOVATION (DISRUPTIVE) FUTURE FOCUSED INNOVATION (DISRUPTIVE) FUTURE FOCUSED INNOVATION (DISRUPTIVE) CUSTOMER FOCUSED INNOVATION (SUSTAINING) OPERATIONAL FOCUSED INNOVATION (EFFICIENCY) OPERATIONAL FOCUSED INNOVATION (EFFICIENCY) INSIDE THE ORGANISATION 99.9% GUARANTEED TO FAIL UNDER NORMAL OPERATIONAL CONDITIONS! POINTLESS DON’T BOTHER
  • 19. My preference of tools or methods VeriSM provides high-level NON- prescriptive guidance, sometimes its handy to get more detailed guidance. Here is MY (VeriSM compatible but mot prescribed) tools to use: EARLY MAJORITY (34%) - LATE MAJORITY (34%) INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%) FUTURE FOCUSED INNOVATION (DISRUPTIVE) BIC (Explore), Design Thinking, Kaikaku (Lean), Lean Start-up & Agile FUTURE FOCUSED INNOVATION (DISRUPTIVE) BIC (Explore & Expand), Design Thinking, Kakushin or Kaizen (Lean), Agile OPERATIONAL FOCUSED INNOVATION (EFFICIENCY) BIC (Expand) Kaizen (Lean) & Agile DON’T BOTHER LEAN Business Innovation CirclesTM LEARN MEASURE BUILD NEW IDEAS assumptions MVP actionable metrics persevere pivot From the Lean Startup © Eric Ries 2011
  • 20. This is new and (most probably) replacing something else in your existing portfolio. Must be in a sandbox. Look for users of the product that are not mainstream. Start developing something new for them. Do this by creating a innovation sandbox to focus on building an MVP Keep cutting overheads/cost Listen to customers and improve products by adding features or by refining offering. You can use a sandbox or do it as part of operations You either decided that this is a cash cow OR you are in danger of being too late! Urgently start an innovation sandbox Which products and services needs to be changed or replaced to ensure your competitive position a digital market? EARLY MAJORITY (34%) - LATE MAJORITY (34%) INNOVATORS(7%) EARLY ADOPTERS (14%) LAGGARDS (16%)
  • 21. What about the way that you operate, should you change that also? The TOP-JOB of leadership in organisations are? A PORTFOLIO DRIVEN ORGANISATIONS PRODUCT OWNER 1 PRODUCT OWNER 2 Value-stream 1 (part of service Y) Value-stream 2 (part of service Y) Value-stream 3 (part of product X) Value-stream A (feature of product Z) Value-stream B (feature of product Z) Value-stream C (service α) CUSTOMER 1 CUSTOMER 1 CUSTOMER 2 CUSTOMER 2 CUSTOMER 3 RESOURCES CAPABILITIES                © JH Botha – Business Innovation CirclesTM Portfolio Management!
  • 22. Which products and services needs to be changed or replaced to ensure your competitive position a digital market? •Two alternatives (in fact we use both!)
  • 23. Short answer – be a better leader! Slightly longer answer - Lean Management principles – evolutionary change sticks! Most organisational change initiatives fails, the larger the change the higher the risk of failing. How do you prevent that?
  • 24. Most organisational change initiatives fails, the larger the change the higher the risk of failing. How do you prevent that? Second short answer – Embrace Agility (NOT agile) Slightly longer answer – agility is about thinking differently not a method, its always hard work for leaders! Release Date Aug 2019
  • 25. The VeriSM™ approach supports organizations to better select, apply & integrate methodologies, frameworks and technologies that support their daily operations and strategies – and govern them under one model
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  • 28. © 2019 IFDC All Rights Reserved IFDC and VeriSM are registered trademarks All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement. International Foundation for Digital Competences (IFDC) is based in The Netherlands, with Chamber of Commerce number: 68962665. Thank You