Digital transformation: A PRIMER

Digital transformation helps businesses evolve and thrive, but the idea of transforming can seem daunting. Here’s how Deloitte Digital works with brands all over the world to help them futureproof their businesses—one connection at a time.

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hat’s the only constant in today’s digital age where relationships W are real-time, choice is infinite, and delivery is on-demand?

Change—driven by technology, of course. And successfully adapting to change through digital transformation means the difference between a failing company and flourishing one.

Digital transformation: defined

Digital transformation is all about becoming a digital enterprise—an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers and how it operates).

IN SIMPLE TERMS, DIGITAL TRANSFORMATION IS HOW TO FUTUREPROOF A BUSINESS.

Some operating principles

True transformation takes“ ambition. Define your

ambition by getting the right focus, design it by getting the concept right, and achieve“ your ambition by rapidly getting your business to scale.

ANDY MAIN, GLOBAL LEAD, DELOITTE DIGITAL

Digital transformation requires a full spectrum of integrated skills:

INNOVATION HUMAN-CENTERED DIGITAL OVERALL RISK DESIGN TECHNOLOGY LEADERSHIP

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Digital transformation involves  the business and the organization

Learn more about the lenses through which transformation can be viewed on the next page

Transforming the business

Transform the business by revisiting business models, focusing on customer experiences, rethinking the brand, and uncovering new opportunities through rapid innovation.

Transforming the organization

Transform the organization by adjusting the culture, introducing new ways of working, and building capabilities that are suited for this reality. sponsor content by

Transformation impacts the entire enterprise—from branding to operations

ECOSYSTEMS, NEW BUSINESS MODELS, & THE EXPERIENCES & AMBITIONS & SERVICE MODELS ENGAGEMENT ASPIRATIONS Find new business and service Transform engagement with Employ back-end enterprise models that leverage partners and customers, partners, employees, operations, processes and suppliers in different ways—often and other members of the technologies to deliver on the creating market disruption. business’ ecosystem. organization’s goals.

VALUE CULTURE  ENHANCEMENT & LEADERSHIP BRANDING Realize opportunities that Enable the right organizational Focus on the power of the brand preserve or capture new mindset to support new ways of and determine how to leverage, economic value through things working. Identify leaders who can expand or recast it. like risk mitigation or strategic think, act, and react differently in tax planning. a digital context.

ORGANIZATION  & WORKFORCE ENTERPRISE  CUSTOMER, PLATFORM, & DATA Create a ‘team of teams,’ open- OPERATIONS talent workforce and connected Articulate and quantify Adopt the systems, technology experience to focus on the future transformational opportunities and data that digitally of work: the what (automation), by creating (or responding to) represents prospects, who (alternative talent options), a market disruption. customers, partners,  and where (proximity). and suppliers. sponsor content by

How does digital transformation start?

DIGITAL TRANSFORMATION BEGINS WITH AMBITION. A BUSINESS’ AMBITION CAN BE DEFINED BY CONSIDERING:

What’s happening in the world that requires action?

FORCES IN PLAY

What are the largest forces and disruptors impacting the industry?

INDUSTRY TRENDS

What are customers saying? What needs are known? Can unknown needs be discovered? TECHNOLOGY TRENDS

What offerings are emerging in response to changes in the market?

NEW OFFERINGS IN THE MARKET

If shareholders are questioning value, what’s missing? What needs to be done differently? OPPORTUNITIES TO CHANGE THE GAME

GIVEN ALL OF THE ABOVE, WHAT AMBITIONS ARE BEING DEFINED?

Key considerations for developing ambitions

FOCUS ON HUMANS FIND OPPORTUNITIES AT ‘GET IT OUT’ BEATS ‘GET NOT TECHNOLOGY THE INTERSECTIONS IT PERFECT’

Human behavior is the fundamental Don’t try to come up with new ideas In a world dominated by uncertainty, economic gear of every business. alone. To find the future of the business, the only way to get effective market Identify which behaviors to drive look to unexpected intersections: feedback is to give the market (internally and externally) to create the between disciplines and domains of something to react to. Succeed faster greatest return, and marshal digital expertise, across departments and by rapidly delivering minimally viable resources to achieve that behavioral organizational silos, between industries, offerings (MVOs) into the market and change to create connection. and through partnerships that span learning from the feedback obtained markets and geographies. for each subsequent iteration. sponsor content by

ADJACENT

Ambitions can start from anywhere Ambitions can start in the core and grow into adjacent AMBITION offerings, but transformation ambitions can drive core change as well. Don’t limit the starting point.

CORE TRANSFORMATIONAL CONNECTIVITY GAME CHANGING TECHNOLOGY

To define the right ambition, master the seven EXPERIENCE SPEED TO forces shaping everything INNOVATION MARKET in the digital age...

CYBER REAL-TIME DATA SECURITY INTELLIGENCE

HOME & SHELTER RISK

ENTERTAINMENT WELLNESS

...Then understand the appropriate ecosystems MONEY & MOBILITY to engage with TRANSACTIONS

ENERGY LEARNING

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Throughout ambition setting,  relentlessly focus on:

Economic value Competitive advantage Customer experience Can the offering generate significant Does the offering demonstrate Are the unmet needs of the customer economic value, measured by a clear, defensible, and fulfilled through an experience that positive impact to either the balance sustainable competitive is delightful, engaging, and highly sheet or the income statement? advantage in the market? valuable?

What degree are you transforming? Scope can vary widely

Enter or create new markets

Enter adjacent markets, serve new customers UNKNOWN NEEDS Which must either be discovered or developed Transformational

KNOWN AND KNOWABLE NEEDS Which can be planned and tackled

Serve existing markets and customers Adjacent

CORE PLAY TO WHERE

Enhancing existing offerings with added value CUSTOMERS) & (MARKETS Core ADJACENT Extending existing offerings in new directions Develop new Use or improve offerings, assets, and business TRANSFORMATIONAL existing offerings and assets models Inventing entirely new offerings Add incremental offerings and assets

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How does digital transformation work? EXECUTING A TRANSFORMATION, END TO END, ITERATIVELY

IMAGINE DELIVER RUN

Ambition definition: Ambition design: Ambition delivery: Getting the right focus Get the concept right Get the business to scale

This phase is about quickly setting In this phase, build a deep and empathetic This phase delivers and scales the ambitions and charting a path to success understanding of user needs and behaviors ambition through flexible and integrated by developing a roadmap to achieve those to design solutions for them. Make ideas delivery teams. Evolve the MVO to greater ambitions. Create an aligned portfolio of tangible and put the ambition in motion maturity and improve operational pillars to ideas that are informed by current trends, by designing, testing, and learning in the support lasting success. disruptors, and customer needs. market with minimum viable offerings

BUILD/ SENSE ASPIRE DECIDE DEEPEN DESIGN LAUNCH SCALE OPERATE PROVE

SENSE DEEPEN LAUNCH Understand trends and disruptors to uncover Understand users to uncover unmet user Refine MVO based on market feedback to opportunities in the digital landscape. needs, motivations, concerns and drivers. ensure successful business launch and monitor outcomes. ASPIRE DESIGN Provoke aspirations, analyze the value Combine user insights with technical SCALE of potential initiatives and define an capabilities and business objectives to Iteratively monitor for new releases to ambition statement. generate well-balanced concepts that support the solution as it matures. can be tested in-market. DECIDE OPERATE Align and select provocations that BUILD/PROVE Evaluate and improve operational pillars enable the client to rapidly demonstrate Iteratively build, test and learn to deliver to transition resources and support momentum toward its ambition. MVOs to market and de-risk innovations. lasting success.

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