2. A Digital Enterprise is one that leverages customer, contextual and enterprise data and use new-age technologies
to drive exponential business impact
2
Customer
Targeting &
Engagement
Supply Chain
Optimization
Workforce &
Partner
Enablement
Digital Products &
Services
Risk Management
Operational
Excellence
AREAS OF IMPACT FOR AN ENTERPRISE
CRM Data Partner Data Warehouse Data
Weather/
Seasonality
Data
Natural
Resources Data
Traffic
Data
Digital Platform
Digital Business Process / Operations
Loyalty Program
Data
Point-Of-Sale Social Media App Usage Data
On-board
Systems Data
Process-
Related Data
Corporate Updates
& Notifications
Contextual Data Customer Data Enterprise Data
Modern IT
Virtualization Hybrid Cloud Sensors Mobility Enterprise Security Analytics Platform Software Defined Network
3. To facilitate this digital transformation, enterprises are increasingly setting up Digital Labs/Hubs in geographies with rich
product capabilities, such as the Bay Area (US) and Bangalore (India)
3
US (Bay Area, NY, Seattle) Bangalore
Large number of product companies, a developed and mature ecosystem,
abundance of fresh as well as installed talent pool, and a widespread
start-up culture has resulted in several traditional enterprises setting up
their digital labs in the Bay Area
Increased globalization of tech enterprises, a booming start-up landscape,
proliferation of new-age technologies, availability of digital skillsets (due to
the presence of product companies as well as institutes such as the IISc.) are
the collective force behind centers setting up digital hubs in Bangalore
13 acquisitions
300+% CAGR
in Headcount
USD 80 MN
Annual
Investment*
Launched in Feb, 2015
to create analytics-
driven personalized
shopping solutions
and omni-channel
experience
Note: Estimated annual investment
4. In accordance with this market trend, Zinnov recommends setting up an Enterprise Digital Lab within the traditional
enterprise to provide the catalysis necessary for effective digital transformation
4
Characteristics
an Enterprise Digital Lab turns
digital transformation initiatives into a
program that can be repeated within the
organization. It provides the necessary
people, processes, technology and
infrastructure for digital initiatives packed
into a short time frame.
It liaisons with different BUs and functions
of the organization to understand their
digital requirements and initiatives
Sales &
Marketing
IT
Enterprise
Digital Lab
CMO
Supply
Chain
BU 1
CIO CDO
Supply Chain
Head
CXO /
BU Head
CEO
Customer
Targeting &
Engagement
Workforce &
Partner
Enablement
Operational
Excellence
Supply Chain
Optimization
Risk
Management
Digital
Products &
Services
BU 2
CXO /
BU Head
Enterprise Digital Lab: Structure
Why is this structure recommended?
• Digital Team is cross-functional and effective in breaking siloes
• Results in standardized digital initiatives across all Business Units and consistent
brand messaging
• More responsive to changes in market as it is a separate entity in the organization
• Direct and clear view of the organization’s goals and objectives as the CDO directly
reports to the CEO
• Rapid dissemination of digital best practices across the organization
• Separate digital budget allocated
Note: Digital Horizontals such as Workforce & Partner Enablement, Operational Excellence and Risk Management have a one-to-many relation with different functions and BUs. For instance, depending on the requirement, the
Risk Management division of the Enterprise Digital Lab can report to Supply Chain function or a BU.
The EDL is led by the Chief Digital Officer,
who directly reports to the CEO
GE operates with a CDO-led structure
5. We have identified four key enablers critical for setting up a Digital Lab
Technology
5
People
Processes
Ecosystem
Connect
C
A
B
D
• New Roles & Responsibilities
• Digital Talent: Acquisition and Development
• Digital Skillsets
• Technical Career Path
• Distributed Agile
• Scaled Agile Framework
• Multi Speed IT
• New Age Technology and Tools
• Platform Partnership
• Service Provider Partnership
• Start Up Connect
• University Connect
6. Setting up an EDL might look challenging, and you might face with several questions…
6
CORPORATE
BUY-IN
CHANGEINFRASTRUCTURE
TALENT
“ The HR is not aligned to the Business “
“ HR tools and processes are not in
place for Digital talent “
“ How should I get corporate buy-in ? “
“ How do I get budget allocated for
digital initiatives? “
“ How do I modernize my IT and where
do I begin? “
“ Should I build or buy the required tools for
building an EDL? “
How do I implement Change
Management ?
“ How do I realign my organization in order to
a smooth transition? “
7. …however, success stories across verticals reinforce the fact that times are changing, and it is imperative to
transform rather than perish!
7
There are numerous industry examples of enterprises that have jumped at the opportunity to transform digitally, only to reap benefits
• Starbucks Digital Ventures created to improve customer experience & engagement via mobile payments, web, card, loyalty, e-
commerce, Wi-Fi strategy, & the Starbucks Digital Network
• Nike is at the forefront of digital transformation through its digital tools for making product designs and manufacturing simpler,
digital products to track workouts and share them with friends online and receive customized advice from coaches, and the
Nike+ platform
• Southwest Airlines has bolstered its customer experience as well as back-end operations by leveraging digital technologies such
as a new suite of customer contact and workforce optimization to improve customer satisfaction using predictive analytics,
social media analytics for customer targeting, and collaboration with NASA to improve airline safety using Machine Learning
skills
