Zinnov examines the growing trend of enterprises setting up digital labs to drive the next leg of their digital journey. Geographies with rich product development capabilities and a talent pool with key skills are emerging as hot spots for the establishment of innovative digital labs

1. 1
Enterprise Digital Lab:
Your way to Enterprise Digital Transformation!

2. Agenda
Enterprise Digital Lab: An Overview
Enablers for creating an Enterprise Digital Lab
1
2
2
Conclusion3

3. A Digital Enterprise is one that leverages customer, contextual and enterprise data and use new-age technologies
to drive exponential business impact
3
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

4. Zinnov recommends the following four steps for all traditional enterprises that are undertaking the digital
transformation journey
• Learning industry best
practices
• Determining key enabling
technology
• Understanding internal and
external data sources
• Strategies, initiatives and
activities of digitally native
enterprises & start-ups
4
• Evaluating current state &
desired state of business
initiatives and prioritizing
them in terms of:
• Business Impact:
Benefits and Risk
• Ease of
Implementation:
People, Structure &
Technology
• Determining a step-by-step
map for creating a digital
enterprise:
• People
• Processes
• Infrastructure
• Ecosystem Connect
• Part by part
implementation of digital
solutions incrementally
and iteratively along with
the required IT
infrastructure for those
solutions
Knowledge
Build EDT knowledge
base and understand
possibilities
Digital Priority
Assess business & digital
priorities
Organizational Readiness
Establish a step-by-step
framework for digital
readiness
Implementation
Implement digital
solutions incrementally
and iteratively
1 2 3 4

5. 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)
5
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

6. Reasons for setting up digital labs include developing digital capabilities to serve millennial customers better,
fostering and implementing new ideas, and building and disseminating digital culture throughout the organization
6
• Started in the Bay Area with the USD 300 MN acquisition of Kosmix; acquired more new-age start-
ups such as OneRiot, Grabble, Set Direction, Social Calendar, Adchemy, Stylr, etc.
• Predominant focus is on Omnichannel retailing and expansion of web services
• Walmart also caters to its global e-commerce platform from its Bangalore center
• Set up lab in the Bay Area by partnering with Sapient Nitro in 2013
• Focus areas include Mobility, Digital Shopping Services, Online Search and social media development
• Employees range across the spectrum of designers, data scientists and marketing experts (Cartwheel
is one of their marquee products)
• Focus on collaboration with start-ups and VC firms
• Investing USD 100 MN to set eight new labs worldwide, including those in Bangalore and NY for
enabling clients work
• Focus areas include design, mobile and digital marketing
• "Our researchers are developing capabilities to harness the value of data to help clients create
personalized experiences, while designers are working with clients to develop the design that makes
a difference in business outcomes“ - Bridget van Kralingen, VP, Global Business Services

7. In accordance with this market trend and its 4-step EDT roadmap, Zinnov recommends setting up an Enterprise Digital Lab
within the traditional enterprise to provide the catalysis necessary for effective digital transformation
7
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

8. Agenda
Enterprise Digital Lab: An Overview
Enablers for creating an Enterprise Digital Lab
1
2
8
Conclusion3

9. We have identified four key enablers critical for setting up an EDL
Technology
9
People
Processes
Ecosystem
Connect
C
A
B
D
• Introduce Digital Roles
• Hire and acqui-hire talent from digital hotspots
• Foster Product Development Capabilities
• Create Alternative Technical Career Paths
• Implement
• Distributed Agile
• Scaled Agile Framework
• Implement Multi Speed IT
• Introduce New Age Technology and Tools
• Establish partnerships with:
• Cutting Edge Technology Companies
• Service Providers with a Digital DNA
• New Age Start Up
• Universities with Digital Focus

10. In order to create the EDL, several new roles and responsibilities need to be created
10
Chief Digital
Officer
Digital head who drives end-to-end strategy, design & implementation of the
digital roadmap to help traditional businesses transform
• Technology & Business Expert
• Collaborative skills (with CIO & CMO)
Skills Required
Data Scientist
Examines and analyses breadth and depth of data from multiple sources using
analytics platforms, in order to derive actionable insights
• Data Analytics
• Platform Expertise
Data
Visualizer
Presents data in a lucid and understandable manner for employees, partners,
customers, etc. in order to help them notice trends and patterns
• UI/UX
• Multimedia (Audio & Visual) Skills
Product
Engineer
Helps in the development of the digital solution incrementally and iteratively
• Software Product development
• Agile Methodologies
Solution
Architect
Defines the architecture required to implement solutions to meet digital
requirements while ensuring alignment with the enterprise architecture
• Mobility
• Software Product development
DevOps
Enables collaboration between development and operations staff through all
stages of the development lifecycle of the digital solutions
• Software Product development
• Agile methodologies
Scrum Master
Helps the digital team in adopting Agile methodologies better, which are
required for the iterative and incremental development of digital solutions
• Software Product development
• Data Analytics
• Mobility
• UI/UX
Product
Manager
Strategizes, assigns and drives the development of digital solutions
• Software Product development
• Agile Methodologies
• Business Knowledge
• Communication Skills
Responsibilities
People

11. A well-defined team structure also needs to crystallized, along with an extensive Digital L&D initiative
11
People
Close
Collaboration
SMAC-skilled
technologists
User
Experience
Experts
Other Skills-
REST APIs,
Linux, etc.
SCRUM
Master,
DevOps and
other Agile
roles
CEO
Chief Information
Officer
Chief Digital
Officer
Cross-
Functional
Digital
Strategy Team
Digital L&D
Team
Digital
Effectiveness
Monitoring
Team
1 Define
• The HR, BU Leaders, CDO & the CIO should Define &
design L&D structure collectively
• Determine course structure and focus areas keeping
in mind business requirements, existing & required
talent, presence of CoEs
• Ascertain Delivery model: On-the-job, External
Training, Formal (Live Classroom, e-Learning)
2
Allocate
Dollars
• Allocate budget to the L&D program
• Budget could come from the HR, the CDO, the
business or a combination
3
Spread
Awareness
• Actively spread organization-wide awareness on the
purpose of the program and its goals
4 Implement
• Sample workshops include those on Agile
frameworks, customer relevance, tools such as R &
SAS, domain knowledge, digital career path, etc.
• Deploy innovative learning (gamified learning,
exchange programs with product companies)
• Popularize e-Learning tools & real-time knowledge-
sharing platforms
5 Assess
• Assess success for program as well as employees
• Metrics for program evaluation include alignment to
business, employee development plan, faculty
evaluation, budget utilization, etc.
• Metrics for employee evaluation include appraisals,
training hours, courses taken, new skills developed

12. Create and integrate the Digital Operations
first (focus on Bottomline), then think of
redefining value proposition (Topline)
With time and increasing digital maturity of the enterprise, the role of the CDO needs to evolve into one that
caters to both topline and bottomline focus (depending on the business model)
12
People
Path 1
Path 3
Path 2
Custom
Path
Path 1
Enhance, extend & reshape the value
proposition with increase in customer base &
satisfaction and Digital Products & Services,
then focus on integrating Digital Operations
Path 2
Build new set of capabilities around
transformed Operational model (Bottomline)
and Value Proposition (Topline) in a lock-step
Path 3
Depending on the business priority and
market, reach the EDT goal with iterative
steps between Operations model (Bottomline
and Value Proposition (Topline)
Custom
Path
ValueDeliveryFocus(Bottomline)
Value Proposition Focus (Topline)
Enhance Extend Redefine
CreateLeverageIntegrate
Note: Map from Persistent Systems

13. Case Study: A seismic shift in vision, culture and roadmap led by the CDO, has transformed the “Starbucks
Experience” from a simple brick & mortar one to a remarkable digital one
13
Responsible for Starbucks’ core digital businesses, including mobile
payments, web, card, loyalty, e-commerce, Wi-Fi strategy, & the
Starbucks Digital Network
Adam Brotman: The man behind Starbucks’ digital revolution Roles & Responsibilities
Evolution of the Chief Digital Officer’s role at Starbucks Collaboration between the CDO and CIO
Adam Brotman
CDO, Starbucks
“Online world gives us the opportunity to build an authentic
relationship with our customers in new, interactive and
scalable ways. But there are still no shortcuts or different
rules just because that relationship is built up over time over
digital touch-points vs. the offline world. You still have to be
responsive, authentic, and, in our case, the best online barista
in terms of our tone, pace, and mix of posts”
Future Roadmap: Extending Starbucks’ customer loyalty program to other companies
thereby creating a digital wallet
Latest Endeavor: Allow customers in one undisclosed geographic test market to start
placing pickup orders from the Starbucks app later this year
2008 2009 2012
Starbucks Digital
Ventures group created
Lead by the then CIO
Separate from IT and
Marketing, but
collaborated closely
with both
The roles SVP & GM
created for Digital Ventures
Charter: Web, mobile,
social media, e-commerce,
Wi-Fi, Starbucks’ digital
network & emerging store
technologies
The role of CDO created
Charter: Digital Ventures,
Global Digital Marketing,
Starbucks Cards & mobile
payments and loyalty. The
last three functions were
previously managed by
three separate groups
Unofficial (monthly) & official (quarterly) Digital Scrums held between the Digital and the
IT team, chaired by the CDO and CIO both
Agenda includes whiteboard sessions to create the next opportunities for better
customer experience
Daily collaboration between the CDO and CIO
Frequent visits to the store managers by the CDO & CIO together
Weekly review of the digital roadmap by the digital & IT team collectively
Moved from a waterfall disjoint model of digital technology delivery through separate
centers of excellence to an agile model of Tiger or SWAT teams which are a lot more
collaborative and innovative
The CDO, CIO and CSO collectively work for Starbucks’ rapidly evolving digital strategy &
report to the CEOHeadcount Digital: 110+ IT: 760+
People

14. Bay Area, New York City and Bangalore have the highest concentration of Digital talent owing to the
presence of product companies, top universities and a booming startup culture
City Legend
High
Medium-to-High
Medium
Low
Companies with digital /
innovation labs
14
San
Francisco
Bay Area
New York City
Toronto
London
Stockholm
Prague
Bangalore
Shanghai
Beijing
People
Tesco
Target
Walmart
JCP
Walmart
McDonalds
J P Morgan
Nestle
Target
Kohl’s
American Eagle
Capital One
Big Data, Machine Learning & NLP
218 K
Mobility
312 K
User Experience Design
220 K
2013 2020 2025 2030
Global EDT Talent Pool*
1250K
1850K
2850K
750K
Note: *Contains major EDT talent hubs, i.e. USA, UK, India and China

15. The Digital Talent is radically different from the typical IT talent in terms of skills, approach, business-
acumen and compensation structure
15
People
Digital Talent IT Talent
• Strong computing skills (esp. Natural Language
Programming, Machine Learning, Artificial Intelligence)
in addition to JavaScript, HTML5, C++, etc.
• Strong background in Statistics
• Adept at Java, Python, C, C++, HTML, etc.
• Knowledge of statistics not required
• Have a Product approach
• Adept at Agile, Kanban, etc.
• Work in short cycles
• Follow Agile or Waterfall
• Have long project cycles
• Domain expertise/ business acumen is a must-have
• Cross-functional working
• Domain expertise/ business acumen is nice-to-have
• Work in silos
• Usually Masters degree from top universities such as
Stanford, IITs, IISc, King College, CMU, etc.
• A substantial fraction also has a PhD.
• Computer Science graduates from Tier1 or Tier2
engineering colleges
• Startups and Tech Mafias such as Apple, Facebook,
Google, etc.
• Typically spread across service providers
• Compensation is high. The median* for the following
experience levels are:
• Entry: $ 90K
• Mid-Career: $ 112K
• Experienced: $ 112K (Goes up to $ 300K )
• Compensation is lower. The median* for the
following experience levels of a Software Engineer:
• Entry: $ 70K
• Mid-Career: $ 80K
• Experienced: $ 90 - 100K
Skillset
Approach
Business
Knowledge
Education
Talent
Concentration
Compensation
Note: *US specific

16. Enterprises need to deploy innovative strategies to acquire and hone this talent
16
People
Aqcui-Hire & Strategic
Acquisitions
Bought 80% stake in BlinkBox,
91% stake in We7 & Mobcast
Acqui-hired Lucky Sort; retained
Big Data Visualization Team;
Lucky Sort was shut down
Incubation
Accelerator to partner with
tech start-ups through an
Incubator Program
$100M fund to invest in Digital
Commerce Startups
Geo-Presence
Set up a Digital Lab in Bay Area
to leverage the ecosystem
Increasing number of
digital initiatives from
Bangalore
Innovative Recruitment
Loreal’s website “Reveal” has
gamified its recruitment
process, lets visitors
communicate with employees
and participate in real-life
problem-solving cases
Digital L&D
Employee Exchange
Program
Investment in
Digital Training
Presence of a
structured Digital
Career Path
The HR should be involved
with the business in creating
& implementing well-defined
digital training
Employee Exchange Programs
should be launched with
product companies
E.g.: P&G with Google
Corporate buy-in to ensure
investment in digital training
programs
A well-structured Digital TCP*
with its own rewards
Acquisitionof
DigitalTalent
Developing&
Retaining
DigitalTalent
Note: *Technical Career Path

17. They also need to create a well-structured Technical Career Path for their digital employees
17
People
Implementation &
Maintenance Development/Design & Ownership Conceptualization
Developer Senior Developer Technical Lead
Architect -> Senior Architect -> Chief
Architect
• Fixes small bugs & does
small-scale implementation
• Works with the UI/UX
designer with the Project
Manager acting as liaison
• Undertakes module
ownership and process
design responsibility of
the module
• Undertakes overall
ownership of most of
the system; does short-
term decision-making
• Hereon, can decide to
be a Manager or an
Architect
• Complete ownership of the entire system with all
decision-making power at the process design and
conceptualization level (which framework to choose,
etc.)
• With progressive seniority, the breadth of
responsibilities increase. Senior Architect is
responsible across products whereas the Chief
Architect is responsible across the BU
Business Analyst
• Operates & maintains pre-
defined statistical models
• Develops statistical data models and analyses them
using regression, K means clustering, etc.
• Ownership increases with progression to Principal role
Senior Business Analyst
• Creates cloud-based analytics platforms
• Develops algorithms for data modelling, simulation
& optimization
• Designs experiments, generates business insights
and visualizes results
Note: Some of the tools commonly used include SCOPE, R, JMP, SQL, WEKA, MATLAB, SAS, Mahout, Scikit-learn, etc.
Note: Some of the tools commonly used include JavaScript, HTML5, CSS3, Angularjs by Google, etc.
AnalyticsEngineering
Principal Business Analyst
Illustrative

18. Future TCP Model - Model*
Companies will need to develop and enhance the technical career path for their digital talent to expedite
digital implementations
18
People
Quick time to market is leading the
wave of change
• High Level Understanding of the Technology Stack Areas
• Depth of understanding in one area of the stack such as mobility or
application framework etc.
• Distinct roles for development, quality assurance within a single
stack area
Data
O.S / InfrastructureMobility
App Framework
UI/ UX design ,
development,
integration, deployment,
validation & monitoring
Data migration, mining,
modeling, storage &
analytics
Private or hybrid cloud
development,
customization, testing &
maintenance
Horizontal/ Vertical
specific app design,
build ,roll out & support
O.S/ Infra Mobile Data ….
Illustrative
Current TCP Model - T Model
TraditionalModelTraditionalModel
Mobility
OR
Data
OR
OS/Infrastructure
OR
App Framework
• High Level Understanding of the Technology Stack Areas
• Depth of understanding in at least two areas of the technology stack
such as Data as well as App framework
• Amalgamation of development and quality assurance roles to
support continuous integration which is imperative for digital
implementation
O.S/ Infra Mobile Data ….
NewAgeDigitalModel
OR
UI/ UX design ,
development,
integration, deployment,
validation & monitoring
Data migration, mining,
modeling, storage &
analytics
Private or hybrid cloud
development,
customization, testing &
maintenance
Horizontal/ Vertical
specific app design,
build ,roll out & support
Note: Model is currently being implemented at Persistent Technologies
Tech Stack Tech Stack

19. Successful implementation of TCP requires a comprehensive approach that tackles the challenges inherent
at each stage of TCP maturity
19Note: *Individual Contributors
HR Groundwork Pilot Role Models Scalability
Institutionalization &
Growth
To create policies
regarding Digital TCP
to ensure a good
launch
To spread awareness,
exposure and create
processes to enhance
Digital TCP
To create the core
members of Digital
TCP to ensure quick
wins and demonstrate
value in this path
To inspire the
workforce by
interaction with
successful people in
Digital TCP (in and
outside the org.)
To design processes
around ICs such that
the Digital TCP model
keeps growing
Communication - Basic
To create general awareness about Digital TCP among the
broader workforce
Communication - Advanced
To provide better understanding of Digital TCP to targeted
workforce who are inclined towards it
Societal Acceptance
To create awareness and increase acceptance among employees’ peers/family about the roles & responsibilities of an IC in the
company and the value it generates
1 2 3 4 5
6B6A
7
People

20. We have identified four key enablers critical for setting up an EDL
Technology
20
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

21. The process should be executed incrementally and iteratively using Agile methodology
Prioritized EDT solutions should implemented in an iterative and incremental manner
People
Tech
Implementation
Complete
Digital
Solution 1
Digital
Solution 2
Digital
Solution 3
Digital
Solution 4
Implementation in
process
Agile methodology is used in the development of the digital solutions
Digital
Priorities
Update
Product
Backlog
AGILE
DEVELOPMENT
Create Sprint
Backlog
Prepare People,
Technology & Org
Structure feature by
feature
Implement
Digital Solution
incrementally
and iteratively
feature by
feature
Sprint
Review
Working
Solution
Prioritized
bucketlist of
features, bugs and
development work
by the Product
Manager
A list of prioritized
features to be
built for the next
sprint
Digital Capabilities should
be augmented
incrementally to enable
the implementation of the
feature being currently
built
Review for early
warning of broken/
incompatible
features
Incremental execution of prioritized digital solutions
Process
21
Continuous Tracking
Processes

22. Enterprises should adopt frameworks like Scaled Agile Framework (SAFe) for implementing Distributed
Agile
22
Processes
Key Drivers for Distributed Agile in
EDT Solution Development
• Barriers to communication
and collaboration
• Misunderstood
Requirements
• Differences in standards,
processes and tools
• Cultural differences and/or
insensitivity
• Lack of common ownership
• Lack of trust, coordination
and visibility across
geographies
Best Practices for adopting and implementing Distributed Agile
Fostering cross-pollination and face-to-face real time communication
Tools for platform integration, sprint & release planning, real/near time team
communication, reporting and security
Using collaboration tools (with real-time feedback) for scrum artifacts such as
product backlog, sprint backlog, burndown reports, etc.
Remote pairing for common resource ownership
Proxy product owner for each geography
Some Effective Agile Tools

23. Case Study: The Scaled Agile Framework has proved to be successful in large-scale Agile adoption (1/2)
23
Processes
SAFe: Critical for EDTScaled Agile Framework (SAFe): Enterprise level Agile Implementation
Agile estimating, planning and
Agile Release trains
Tackles architecture,
integration, funding,
governance and roles at scale
Continuous value flow and
lightweight business cases
Increased speed to market
while keeping budget and
resources static
2
1
3
4
Companies that follow SAFe

24. Case Study: The Scaled Agile Framework has proved to be successful in large-scale Agile adoption (2/2)
24
Processes
Program Execution Alignment Code Quality Transparency
Core Qualities of SAFe, a proven, publicly-facing framework for applying Agile practices at enterprise scale:
01
02
03
Enterprise-Scale Implementation
Allows large-scale incremental and
iterative development of digital
solutions irrespective of geographically
dispersed teams
Facilitates Optimization
Unlike most other frameworks
available, SAFe is not limited to the
judgment of the user for optimization
across cost efficiency, quality and
speed
Alignment & Quality
Effective in alignment of IT objectives
with Business goals while maintaining
emphasis on code quality across all
teams
Increase in
employee
engagement
20-50%
increase in
productivity
30-75%
faster time
to market
50%+
defect
reduction
Credit Leffingwell et al. © 2014 Scaled Agile Inc.

25. We have identified four key enablers critical for setting up an EDL
Technology
25
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

26. Enterprises need to adopt Multi Speed IT in order to cater to rapidly changing digital requirements
26
Technology
Speed = Slowest
Speed = Faster
Speed = Fastest
Service
Integrate
Access &
Expose
Consume
Data Backend Service ESB/SOA Service
Curated Data
(Internal/ External)
Standardized API Layer & Management
IP Apps Consumer Apps
Enterprise
Products
Partner
Services
Web Mobile Point of Sale Partner Devices & Things
Note: Credit: Persistent Systems
 Rapid development environment to speed
up development process, coupled with
full-coding Integrated Development
Environment for flexibility
 Allows continuous integration & feedback
 Business participates in application
development while IT supports them (&
ensures compliance)
 Browser-based dev. environment
 Aggressive time-to-market Adaptable to
constant change
 Tools such as Apigee and Mulesoft
integrate legacy systems with cloud &
SaaS apps, Business Management
software (SAP, Salesforce), etc.
 The API Layer effectively exposes the data
to developers and partners
 API-led connectivity enables legacy
system access, unlocks data value &
reduces legacy service disruptions
Legacy System Integration
Agile Speed

27. New Age technology and tools are imperative for laying the foundation of a Digital Enterprise
27
Technology
UI Frameworks MVC Pattern Data Visualization
Web Apps Native Apps App Dev. Platform
StandardsMobile First Design
User
Experience
App
Framework
Web Services Security & Identity
Management
Open APIs Mean Stack
Middleware
Data Storage Data At Scale Data to Insights ETL
Cloud Deployment OS
Data
OS/
Infrastructure
Project Management
Enterprise Scale
Programs
Automated Configuration
Management
Cont. Integration
Automated Unit Testing
Alerts & Monitoring
Code Repository Version
Control
DevOps
Agile
PROCESSES & TOOLS
• Understanding mobile users
• Time Space constraints
• Touch, Location, Proximity sensors
• Mobile Design Patters
Fundamentals: Virtualization &
Tenancy Models
Software Defined
Note: Digital tech map from Persistent Systems

28. We have identified four key enablers critical for setting up an EDL
Technology
• New Roles & Responsibilities
• Digital Talent: Acquisition and Development
• Digital Skillsets
• Technical Career Path
28
People
Processes
Ecosystem
Connect
C
A
B
D
• Distributed Agile
• Scaled Agile Framework
• Multi Speed IT
• New Age Technology and Tools
• Platform Partnership
• Service Provider Partnership
• Start Up Connect
• University Connect

29. Enterprises need to establish partnerships across the ecosystem in order to leverage their talent,
technologies, expertise and services
29
Partnerships
Service
Providers
University
Connects
Platform
Partners
StartUp
Connect
1 2
43
Partnerships

30. List of shortlisted
analytics platform
companies with
whom Persistent can
partner for EDT
Platform Partners: It is critical for enterprises to build platform partnerships in order to leverage their capabilities
30
Initial platform company
inclusion criteria
• Offer advanced analytics
functionality as a stand-alone
product that can be deployed and
used separately from other BI or
business applications
• This product must be vertical
agnostic
• Generate at least $2 million in total
advanced-analytics-related
software license revenue annually,
or have more than 1,000 active
deployments
Organizational
capabilities
Innovation potential in-
house
Ecosystem Connection
Strategy
US Market Understanding
Platform capabilities
Functionality of product
(feature sets and capabilities)
Customer Experience/ Product
Reliability
1
2
3
1
2
Partnerships
Note: Platform Partnership framework from Persistent Systems
Zinnov recommends the following framework for selecting platform partners

31. IBM, SAP and Salesforce.com are some of the best platform partners across Analytics, Mobile App
Development and Collaboration
3131
Partnerships
2
3
1
Mobile
Application
Development
Platform
(MAPD)
Advanced
Analytics
Platform
(AAP)
Collaboration
Platform
SAS, a leader in AAP, provides a
wide range of advanced analytics
(predictive analytics, optimization,
forecasting, text analytics,
simulation, etc.) to yield insights for
solutions for risk management,
customer intelligence, retail & other
domain-specific offerings
SAP, a leader in MAPD, provides
development & services for user-
centric mobile apps for employees,
partners and customers on an
integrated, open, standards-based
platform*
Salesforce is a Collaboration
Platform leader in both Platform
Capabilities and Organizational
Capabilities
Note: *Development of apps across People Productivity, Processes, Analytics, Consumer (Loyalty, e-care, etc.), Custom Mobile Apps (transformative) & Partner Apps

32. 32
Service
Provider
Selection
Framework
Scaled Agile
Framework
Product
Development
Capabilities
Platform
Partnerships
Solution
Accelerators
Global
Footprint
Digital DNA
This parameter would measure the
number and effectiveness of the
Solution Accelerators of the service
providers
This parameter would evaluate whether
or not the service provider has a geo-
presence in the desired geographies, or
its proximity to the same
This parameter would evaluate the
presence and effectiveness of Scaled
Agile Network
This parameter would measure the
presence and capabilities of the platform
partnerships the service providers has
This parameter would measure the
Product Development capabilities of the
service provider
This parameter would be used to measure
the capability of a service provider to
deliver agile units of digital work
Service Providers: It is also critical to engage with niche Service Providers with product development capabilities
Partnerships
Zinnov recommends the following framework for selecting service providers

33. Digital and Traditional Service Providers vary vastly in their digital capabilities, processes and platform partnerships
Partnerships
Parameter Digital Service Providers Traditional Service ProvidersService maturity Service maturity
Digital DNA Focused on delivering agile units of
work with digital speed
e.g.: More focus on creating APIs
rather than IT modernization
Delivery through multi speed.
Focus on IT modernization as well as
delivering agile units of work with
digital speed
Solution
Accelerators
Strong PES capabilities around
solutions accelerators (both vertical
specific & agnostic )
Moderate focus on solution
accelerators. Larger focus on services
as compared to solutions.
Global Footprint Primary presence in the Bay Area,
New York and Bangalore due to
concentration of skill sets in these
areas
Wide spread global presence due to
non-dependency on emerging skill
sets
Scaled Agile
Framework
Dynamic adoption of distributed and
SAFe amongst product and IT teams
Gradual transformation towards
agile, primarily standard waterfall
model in existence at large
Platform
Partnerships
Leverage Product/ Platform players in
360 degree partnerships – To “Sell
with“ & “Sell through”
Traditional revenue sharing “ Sell
with “ strategy observed with
technology players
Product
development
capabilities
Significant non-linear revenue
Continuous integration, rapid
prototyping and incremental
development
Mature business models (Outcome
based etc.)
Inconsequential non-linear revenue
Leverages waterfall or spiral
methodologies
Traditional business models (T&M,
Fixed Price etc.)
33

34. 34
Persistent, Symphony Teleca, Epam and ThoughtWorks exhibit high product capabilities
Partnerships
Niche vendors such as Persistent
Systems, Symphony Teleca & EPAM,
specializing in Product Development
capabilities are the most suitable for
forging partnerships for EDT
Note: Symphony Teleca’s capabilities have been evaluated taking into account Symphony Teleca’s acquisition of ADITI
Leads the pack in People
Capabilities, IP/Solutions
& maturity of services
Leads the pack in
Business Model and also
has mature services
Leads the pack in
Alliances forged and
Clients
Though not evaluated
by GSPR, it exhibits
product capabilities &
works with clients across
several verticals
Zinnov’s Global Service Provider Rating 2014 evaluates the service providers according to their ISV-Enterprise Software capabilities

35. Startup Connect: A holistic approach needs to be adopted by enterprises to engage with startups
35
Partnerships
2
3
5
Drive the internal change
Create an Internal Marketplace
Connect with startups across
the entire value chain
Partner with existing startup
facilitators
41
• Facilitate interaction between startups and internal
teams
• Promote and incentivise Intrapreneurship
• Ideate, Build and Execute on new ideas
Acquire Targets
• Create a network of accelerators focussed on
emerging technologies
• Align your CoEs with accelerators to provide
startups with the soft and hard infra
• Create a marketplace for startups to connect with
and be mentored by business units
• Validate the startup ideas/products by deploying
them in the organizational digital workflow
• Partner with industry initiatives such as NASSCOM-
10k, Productnation etc
• Partner with MNCs existing accelerator programs
• Connect with university incubation programs
• Make strategic acquisition of growth stage/Mature
companies
• Buy IPs to grow non linear revenues
• Partner with startups for a joint GTM strategy by
providing SI services on top of products
Set up an accelerator (Grants4Apps) for
Operational Excellence and Customer
Targeting & Engagement EDT
horizontals
GE, Mayo Clinic, Abbot, UnitedHealth
Group, etc. have partnered with Digital
Health Accelerator Rock Health
Acquired Cellfire to boost omni-
channel
Intrapreneurship to create value
within the organization
Has created an internal
marketplace for startups

36. Startup Connect: Target has recently launched its Accelerator Program in Bangalore in order to compete
with retail giants such as Amazon and Walmart
36
Partnerships
TARGET
ACCELERATOR
PROGRAM
Preliminary Stage Shortlist Stage
Pool of 159
Indian Tech
Startups
Helps online retailers & other
merchants use 3D modeling & offers
a 360-degree view of products
Helps some of India’s
online retailers leverage
social conversations
Personalized search results
and highly accurate
recommendations
Arrests website bounce rates &
increases customer engagement
Facilitate social
recommendations
Two-way communication
with mobile users by offering
a two-way messaging inbox
in the app
Nurture Stage
 Specially designed space for 4-month immersive
program
 Help them generate ideas by providing them
access to mentors, tools, resources & operational
support
 Provide up to USD 30,000 in funding
 Also to help Target identify potential M&A targets
at early, cheap valuations
1
2
34
5
Name: Target Accelerator Program
Aim: To compete & catch up with Amazon & WalmartLabs faster
Location: Bangalore
Focus Areas: Search, Content, Data, Social, Mobility, 3D Imaging,
Omnichannel, Digital Marketing and Supply Chain
Year of Establishment: 2014
Startups for the next batch include Twiddly, Whodat’s Spaces, Wazzat, Torch & Visarity
“ At Target, innovation is core to our culture
and strategy and we are always looking for
new ideas to enhance the shopping
experience of our guests. We are in
discussions with a variety of partners and
start-ups for a Target India Accelerator
program..”
- Beth Jacob
Ex- CIO

37. University Connect: It is also critical to establish connects with universities with rich digital profiles
37
Partnerships
PEOPLE
INFRASTRUCTURE &
PROGRAM
ENGAGEMENT OTHERS
40% 30% 20% 10%
Professor Rating: 20%
Parameters to be considered
include:
WIP (to be added
Student Profile Rating:
20%
Parameters to be considered
include:
• Related Research
Propensity
• Available Skillsets
Infrastructure Rating: 15%
Parameters to be considered
include:
• Relevant Digital Labs &
Tools
• Relevant Digital CoEs/
Cells
Program Rating: 5%
Parameters to be considered
include:
• Related course program
Finance Considerations
Rating: 15%
Amenability to desired
Engagement Model: 5%
Mindshare Rating: 5%
Parameters to be considered
include:
• Related digital
publications & Papers
Partnership Rating: 5%
Parameters to be considered
include:
• Existing related
partnerships with other
companies
List of shortlisted universities for partnership
Zinnov recommends the following framework for targeting & selecting universities

38. Partnered with UA’s Culverhouse
Data Analytics lab for data
analytics, providing collaboration
and research across government,
industry and academia to help
companies anticipate and solve
critical problems
University Connect: Enterprises are increasingly partnering with universities for researches in the digital
arena
38
Partnerships
Key Drivers
Narrow skills gap by building
talent for new digital skillsets
Create branding in
universities fresh talent pool
Leverage cutting edge
technology & research
professors
Industry
Examples
Academic Initiative collaborations
with more than 1,000 academic
partners to design and teach
curriculum to undergraduates
and graduates on big data and
analytics skills
Develop curriculum in data
science and analytics, focused on
real-world problem areas, in
addition to the research on
solving industry issue
Based on identified needs of
customers drawn from Infosys’s
engagement with enterprises
across industries
Samsung has partnered with
University of California, San
Francisco (UCSF) to set up a
digital health innovation lab

39. University Connect: Operational Excellence and Customer Targeting & Engagement are the
primary focus areas of university researches across the globe
39
Partnerships
Key Universities with research focus on
enterprise digital transformation
EDT Horizontals Sample Universities Sample Research Areas
Operational
Excellence
• Analytics for genetics & proteomics & preventive healthcare
using medical wearable devices
• Predictive analytics for pharma & finance verticals
Customer
Targeting &
Engagement
• Wearable Device to predict & notify (to family) the risk of
falling in elderly patients & send automatic alerts to family
• Wearable vapor sensor being developed for continuous
disease monitoring for diabetic patients
Note: Workforce & Partner Enablement and Digital Products and services are very low focus areas for universities
Risk
Management
• Skills to collect, analyze, and interpret data in the Risk
modeling
• Large Scale Analysis of Forensic Data for Event-Based
Representation and Discovery
Supply Chain
Optimization
• Focus on Supply Chain Management Analytics
Illustrative
Research Propensity

40. Agenda
Enterprise Digital Lab: An Overview
Enablers for creating an Enterprise Digital Lab
1
2
40
Conclusion3

41. Setting up an EDL might look challenging, and you might face with several questions…
41
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 manage Change
Management ?
“ How do I realign my organization in order to
a smooth transition? “

42. …however, success stories across verticals reinforce the fact that times are changing, and it is imperative to
transform rather than perish!
42
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

43. Thank You
@zinnov
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43