Role of data integration in enabling your digital business march 18 12 noon v1

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ROLE OF DATA
INTEGRATION IN
ENABLING YOUR
DIGITAL BUSINESS
Mark Skilton
Digital Expert
PA Consulting
mark.skilton@PAConsulting.com
+44 7808039240
https://www.brighttalk.com/webcast/9059/147845
March 18 12 noon
BrightTALK Business Intelligence & Analytics Community

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Aims of this session
The aim of this session is to explore thought leadership around
the impact of digitization and Data Integration
If you would like to find out more about PA Consulting and our Digital Solutions
• Visit out digital innovation hub
http://www.paconsulting.com/digital-insights/
• follow us @GoDigitalPA
https://twitter.com/GoDigitalPA
• Or get in contact our Digital Solutions experts at Digital Solutions PA Consulting
http://www.paconsulting.com/it-consulting/digital-solutions/

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• How does your business shape up in the digital economy
• What holistic considerations really matter in digital
thinking for your business and the role of data in the new
digital enterprise.
• Case studies of practical evidence of how to join up
business spaces with an integrated thinking approach
Agenda

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We live in the Information Economy era – a Digital data driven disruption
The Future is
“Live Advertizing”
“click on an video or advert
on a web page in a tablet
or mobile embedded code
allows you to click the
picture and then it
automatically brings up a
catalog, options of
merchants to buy it from
and then pay and go.. all
frictionless”
Digital Clustering
in the Services
Economy
“Clustering in Cities
matter….the (agglomeration)
model is driving growth in the
Services sector (to create more
jobs and company inward
investment) supporting much
more closer networks of people
, accelerated by digital to help
networks exist BUT all want to
be physical in context”
Privacy and
geolocation
will become
differentiators
“ 2 /3rds of the daily calls and
messages between parents and
children deal with the physical
location of the family members “
Digital
Convergence
is happening
“ There will be 25 Billion objects
predicted within 5 years,
potentially that’s 25 Billion points
of sale PoS… it’s about digital
convergence “
Mobile will be
the remote
control to the World
“ We analyzed data and feedback from more than
40 million..members, as well as guest surveys,
social media posts, and review sites, and it's clear
that guests want greater choice and control “
Digitization and
Innovation
“I don’t see
Digitalization is about
Enterprise, it’s all
about increasing
Innovation”

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1 Zettabytes at Year of global Internet traffic
by 2016
Triple in 3 years 2018
1 Billion gigabytes per month
400 Gigabytes per second
By 2020
2 Billion gigabytes per month , 800 to 1000
Gigabytes per second
In 3 minutes to present tis slide = 7200
Gigabytes, = 70 laptops of data (/1
Terabyte)
Or 1125 iPhones of data (/64Gigabytes)
Internet Traffic has grown 64x since 2005
Today it’s about 17 Gigabytes of Data per
capita
The Impact of data - In ONE DIGITAL SECOND …
50 Billion Objects and growing in next few years

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Digitization is everywhere

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Digital Economics
PROTECT VALUE
RELEASE
& GROW VALUE
NEW VALUE
Shadow IT
6-11% GDP
20-40% CAGR
Subsegment
eCommerce
Growth
30-40% Shift in
IT to Business led
HOW CREATE VALUE THROUGH
DIGITIZATION
New efficiencies
Reliability, standards, and consistency
New mechanisms for scaling eCommerce
Existing and new physical & Virtual asset
and relationships value
New Disruptive Business Models
New Disruptive Business Technology methods
New Social – data & technology value creation
50-80% Shift
In skills &
Operations
driven by
Digitization
of Products
& Services
& Business
Models
Growing
Digital
markets
PERSPECTIVES OF DIGITAL
ECONOMY
Digital
Economy
Physical
Economy

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Digital Business changing trends
3-11% of Global GDP
is Digital eCommerce
30-40% cagr of revenue
growth eCommerce
Business
Digital Divide
45% internet users
in Asia
3rd Global Population
no Access
Changing population
demographics &
8 Billion by 2050
Sustainability
30-50% Growth
Air traffic
100-150% CO2
by 2050
85% business
expect cyber
attack. on Privacy
1% Global GDP
6x increase
in digital &
Mobile
payments
Digital Markets
B2C 60-80%
sales
Influence by
Digital
ECONOMY eCOMMERCE SOCIAL
INTELLIGENCE
SUSTAINABILITY ACCESS &
INCLUSION
CYBER
THREATS
FINANCESOCIETY
In next 5 years - Understanding where the next $1 Trillion
Global GDP will come from?

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BUSINESS  DIGITAL BUSINESS MODELS
Suppliers Operations Customers Consumers
DIGITAL BUSINESS
Channels
Outlets
System & Network Effects
(connectivity vs domains & channels)
Paradox of Control
(control vs. openness)
Paradox of Change
(stability vs. flexibility)
Competitive complexity intensifies
Ubiquitous IT
“Nature of data”
Industries are going through Digitization , transforming business models
Commodity, mobile, modular
Cost structures challenged
e.g. Switching, technology, sunk,
marginal or transaction costs
Massive, crowd, insight
CONVERGENCE

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CASE STUDY: Thinking Holistically about your Business as a Digital Business
Value Chain Network
Just thinking about digital technologies and insight as “a list” without a
proper business context is meaningless or at best a micro-strategy
Thinking digitally needs to be a joined up business capability model to enable Insight to action
BUSINESS
MODEL
DIGITAL
BUSINESS
MODEL
Advanced
Product Data
management
Mobile
enabled
Field Services
Support
Omni-channel
marketing –
Social media
Smart Buildings
Smart Assets
Smart Data Analytics

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CASE STUDY : How does your
Business operate across the market
and to each customer client?
The Wider Digital Business Ecosystem
The DIGITIZATION AFFECT –
How ASSETS, DATA , SOFTWARE & ANALYTICS
come together
Examples of Business Systems …
Examples of Digital Systems

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Digital technology trends
84% Mobile
Market
Penetration
1 in 4 using
Social Media
1 in 3 by 2017
7 Zettabytes
Internet
Data Storage
X44 to x80
increase in
mobile traffic
MOBILESOCIAL CLOUD TELECOMSBIG DATA
20% Growth
150 Exabyte's
per Month
CYBERINTERNET
OF THINGS
WEARABLES
50 Billion Objects
100 million
Connected car 2022
10%-43%
Adoption next
5 years
49% attacks
are Cyber crime
35% Hacktivist
16% Espionage
& Cyber Warfare
DIGITIZATION THROUGH NEW TECHNOLOGICAL CAPABILITIES

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The Customer Experience Centricity of Digital Business –
is just one perspective

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Business needed to think holistically as a up Digital capabilities model…
Digital
Business
Spaces
Objects
Rooms,
Walls, Floors
Contextual Actions
Personal, social,
Business Communities
Building, facilities
Knowledge
In-transit and
Transport
Joined up Digital capabilities
Digital technology is placed in and works in these context , not as an add-on.
digital solutions
need
to be in context
and joined up

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CX and CX Context Matter
DIGITIZATION OF SOCIAL BEHAVIOR DIGITIZATION OF SUPPLY CHAIN NETWORK
Objects, Sensors
Rooms,
Walls, Floors
Contextual Actions
Personal, social,
Business Communities
Building, facilities
Knowledge
In-transit and
Transport
Value Chain
CX CONTEXTCX
“Forrester “The Line of Visibility between CX and CX context) “ 2015
that digital solutions need to be in context and joined up

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So when we design responsive digital solution they are in context
DIGITIZATION OF SOCIAL BEHAVIOR DIGITIZATION OF SUPPLY CHAIN NETWORK
Objects, Sensors
Rooms,
Walls, Floors
Contextual Actions
Personal, social,
Business Communities
Building, facilities
Knowledge
In-transit and
Transport
Mobile
Device
Objects
Consumable
Objects
Fixed
Objects
Contextual
Assisted actions
Building
Spaces
Bio-
Sensors
Room
Spaces
Knowledge
Assisted
In-Transit
SpacesSocial
Community
Spaces
Machine
Sensors
Business
Commerce
Spaces
Value Chain
Digital strategy and Digital design are aligned and not seen as separate

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The Digital Supply chain is changing in Experience
Commerce Space
Object Space Living Space
Room, space objectsConsumables, fixed objects
Social, cultural Space
Interactions and associations
Working SpaceSociety, transit Space
Transport, Logistics, access Social and Business communities In place, complementary, partner services

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Physical Business  Digital Business
The Digital Business Model is releasing new kinds of value
The store space has
effectively “moved” to the
contextual spaces
Of social gatherings, rooms,
and objects that it serves
The Digital Enterprise
is a very different
Mind set and supply
Chain business model
This movement is
towards the creation
of digital workspaces
These are enabled
by Digital Culture, organizational
and technology

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Outcome based Economics and Digital monetization mechanisms
OUTCOMES
Digital
business
MECHANISMS METRICS
Enterprise Operational Customer
Outcomes
 Brand Awareness
o Lifestyle
o Consumer choice
o Spontaneous purchase
 Delivering right product to
market
o Product portfolio mix
o SKU packaging
o Pricing and bundles
 Changing consumer tastes
o For example, Sugar
reduction
 Sustainability
o CO2 reduction,
reusable materials,
waste reduction
 Corporate Social
Responsibility
o Support for Societal
needs and events
 Supply chain efficiency
o On-time delivery
o Planned Maintenance,
workforce skills,
automation
 Partner network collaboration
o Outlets, Kiosks,
Vending machines
o Partner revenue
performance
Consumer Outcomes
 “I want a product that fits
my lifestyle”
o Personal lifestyle
demographic match.
For example “social
friends, my sports,
fun time”
 “I want to choose a product
packaging that fits my
lifestyle.
o For example “small
bottle container for
sports or utility bags”
 “I want products that meet
my values”
 “I want a product that is
sustainable”
 “I want environmentally
friendly products
 ”I want products when and
where I want to purchase
and consume”
Innovation, scaling, Adoption digital mechanisms
Revenue., growth, profit, new markets, EPS,..
Protect Value, Release, grow value,

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At PA Digital Business we move this to the full Ecosystem
a Digital Society and Digital Economy perspective
UX
CX
Digital Workspace
Design
Digital Ecosystems
INCREASING IMPACT ON MONETIZATION & VALUE
INCREASINGIMPACTOFDIGITALTHINKING
Contextualization
SituationalAwareness
FROM SOLUTIONS TO BUSINESS VALUE THINKING
How industries
work…

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DIGITAL VALUE
DigitalSpaceDesign
Traditional Systems
Design Thinking
Digital Business
Design
Before Thinking
about product
Thinking about
product
After consuming
product
Selecting Product
Purchasing
Product
Before Thinking
about product
Thinking about
product
Selecting &
Purchasing Product
After consuming
product
Before Thinking
about product-
Incentives
Selecting &
Purchasing Product
After consuming
product & Incentives
Online Purchase coupons
3rd party Marketplace store
Promotional events – lifestyles
Discounts incentives
 Faster ordering
 Faster payment
 Faster delivery
X reduce time wasted
X reduce wasted stock
 Repeat purchases, loyalty
 Cross brand purchasesCustomerExperienceDesign
Business Technology
Design Thinking
UserInterfaceDesign

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DIGITAL VALUE
Protect Value, Release & Grow Value, New Value
“Influence at a Distance”Digital Consumers
Digital Convergence
“Live marketing” &
Multi-sided marketplaces
Trust, Privacy, Sustainability
Infrastructure and connectivity
“Designed around You”
“Co-presence and social Intelligence” Employees, Partners,
Smart Assets, Track &
Trace…

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So what data and data integration
matters in Digital Business ?

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• How does your business shape up in the digital economy
• What holistic considerations really matter in digital
thinking for your business and the role of data in the new
digital enterprise.
• Case studies of practical evidence of how to join up
business spaces with an integrated thinking approach
Agenda

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Example of Restructuring of an Industry Model by Digitization

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Digital Restructuring - Modularity

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Competition moving to the Ecosystem level Yoo et al
Digital Value Ecosystem

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Data plays a unique part in this Digital Economy era
So what is the difference between Physical Data and Digital Data

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Data Integration is more than a Master data management and Analytical Data
separation. What about mobile data, ,meta data , social data , IP data…
Data of
Digital
Enterprise
MetaData of
Digital
Ecosystem
Connected Data
& Analytical
Insight Data
Actionable
Contextual
Data
Culture, readiness, type of skills, value & worth
Master Data Hosted Cloud
Master Data
Transactional
Data
Mobile
Data
Analytical
Data
Personal Privacy
Data
Intellectual
Property
Data
Social
Data
Network
Data
Device
Data
Sensor
Data
Machine 2 Machine
(M2M)
Data
Partners and Supply chain

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Data Integration of the Digital Business Model
Covered functions / features per product
Coveredstepsofproduction/distribution
Enterprise A | Product 1
Compare: Tilson/Lyytinnen/Sorensen (2010); Varian (2010); Yoffie (1997); Yoo et al. (2010)
Covered functions / features per product
Coveredstepsofproduction/distribution
Enterprise B | Product 2
Enterprise
F |
Product 6
Enterprise
E |
Product 5
Enterprise G | Product 7
Enterprise
D | Product
4
Enterprise H | Product 8
Enterprise
C | Product
3
Enterprise A |
Product 1

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Data Integration of the Digitalization – a Modular Layered Architecture
3Compare: Tilson/Lyytinnen/Sorensen (2010); Varian (2010); Yoffie (1997); Yoo et al. (2010)
“modular-layered architecture”
Examples: SaaS, E-BookCovered functions / features per product
Coveredstepsofproduction/distribution
Enterprise B | Product 2
Enterprise
F | Product
6
Enterprise E
| Product 5
Enterprise G | Product 7
Enterprise D |
Product 4
Enterprise H | Product 8
Enterprise C |
Product 3Enterprise A | Product
1
Content Layer
Service Layer
Network Layer
Device Layer
Logical Transmission
Physical Transport
Logical capability
Physical machinery

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Conclusions
Data of
Digital
Enterprise
MetaData of
Digital
Ecosystem
Connected Data
& Analytical
Insight Data
Actionable
Contextual
Data
Digital
Services
Culture, readiness, type of skills, value & worth

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If you want to know more about Digital and PA Consulting please contact us
“ We believe that there is much more to digital transformation then mobile apps and big data
alone. Whilst these might make an incremental impact, it is revised propositions, new
operating models and a digital mind-set that will enable organizations to survive and thrive in
the modern marketplace. “
Find out more about our views on digital:
• Visit out digital innovation hub http://www.paconsulting.com/digital-insights/
• follow us @GoDigitalPA
https://twitter.com/GoDigitalPA
• Or get in contact or Digital Solutions experts at Digital Solutions PA Consulting
http://www.paconsulting.com/it-consulting/digital-solutions/
PA Consulting helps organizations reach their digital destination

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August 2015 Building the Digital Economy
http://www.palgrave.com/page/detail/Building-a-Digital-
Enterprise/?K=9781137477705

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An accomplished business technology leader who has worked for
many fortune 500 companies in over 20 countries, across private and
public industry sectors. Mark is currently a Digital Expert at PA
Consulting with experience in leadership innovation and strategy for
digital platforms, big data, cloud computing, interoperability, metrics
monetization and cyber security. He has worked at board level in
strategic vision and corporate planning for Business and digital media
solutions in companies including media, telecoms, aerospace, retail ,
travel , city, central and local government, logistics. Healthcare and
financial services.
Mark is recognized international thought leader, speaking at
internationally including the EU Commission and several Industry
conferences and live TV and Radio and digital media including BBC,
Sky, FT, BBC.com and widely syndicated globally. He is an author of
two books on building Digital Enterprise for Palgrave macmillan Digital
Economy series and a co collaborator on several International
Standards with ISO and The Open group. He is also Professor of
Practice in Information Systems Management and Innovation at
Warwick Business School.
Mark Skilton
Mark Skilton
Digital Expert
PA Consulting
mark.skilton@PAConsulting.com
@mskilton
+44 7808039240