A quick introduction to digital transformation. Covering Digital First, Lean, Agile, Leadership, it addresses the 3 core strands - People Change, Process Change and Technology Change. It presents a Systematic approach to Digital Transformation and the need for Governance and Leadership to realise the benefits. Observations include the share of the costs that lead to success, the risk profile of a transformation program and finally the hallmarks of a digital organization

1. WHAT IS
DIGITAL
TRANSFORMATION?

2. HELLODavid Broderick
Director, Digital Transformation
AgoActum - David.Broderick@agoactum.com
Experience from 7 Digital Transformations
Programs in Banks, Insurers and industry
2

3. Digital
Transformation
- DT
Aligning People, Process and Technology to create enhanced customer value
3

4. DIGITAL FIRST
LEAN
AGILE
CAPABLE
LEADER
People
Transform to a
flexible, agile
workforce
Change mind-set to
client first
Openness to
Innovation
Culture Change
Data Driven
Process
Operational Agility
Remove complexity
Lean Six Sigma to
identify constraints
Openness to change
Data Driven
Leadership by
Client needs not
cost of process
Technology
No more silos
STP
Once & Done
Easy Interaction
through data sharing
Analysis & Insights
to drive Actions for
processes and
people
4

5. PEOPLE
CHANGE
▸People change to client centric
thinking
▸Walk in the client shoes – use
Customer Journeys for
directions
▸Innovate and change what
hinders the client
To achieve the change, you need
to communicate it
5

6. PROCESS
CHANGE
▸Reduce Operational
Complexity
▸Deal with the elephant in the
room
▸Change for better client
experience
Process change makes it simpler to
serve the client
6

7. TECHNOLOGY
CHANGE
▸Eliminate silos
▸Enforce Straight Through
Processing (STP) and data
journeys
▸Harness your data for
actionable client insights
Generally seen as big risk, as it
comes last
7

8. LEADERSHIP
BRINGS
IT
ALL
TOGETHER
8
▸Leadership walks the walk of
client first, digital first
▸Communicates the change as it
is happening to the organization
▸Encourages listening to the
clients
▸Fosters cross functional
employee work on the program

9. DT
IS
PROFOUND
AND
DEEP
CHANGE
Digital Transformation requires an
evolution of the entire company
because its elevating change
outside the departmental silos, to a
corporate-wide, cultural level
9

10. DIGITAL
TRANSFORMATION
Busting the Myths
10

11. POPULAR
MYTHS
GOOD NEWS
ALL
ARE
FALSE
▸Costs are huge
▸Technology is the biggest
challenge
▸Delays are inevitable
▸Budgets will need to increase
▸Benefits Realized will be low
11

12. COST OF
DT
REFLECTS
VALUE
AT STAKE
▸Investment in DT should be
proportionate to the value at
stake:
▹ Estimate the value at stake
▹ Prioritize
▹ Take an End to End view
▹ Align the business portfolio to the new
‘Digital Normal’
Cost is different for every
organization
12

13. TECHNOLOGY
IS ONE OF
THE
CHALLENGES
▸Technology only supports the
process changes that people
will use.
▸Process and People change to
more agile models is complex
▸Poor planning on change in
people and processes appears
during technology
implementation
13

14. DELAYS
COME
FROM
BAD
GOVERNANCE,
LEADERSHIP
AND
MANAGEMENT
▸Delays are caused by poor
governance, leadership and
management
▸Program governance needs to
be invested for success
▸Leadership needs to champion
Digital First
▸Management need to be
accurate in reporting
14

15. BUDGET
MANAGEMENT
▸Budget control / alignment to
benefits is vital
▸Ensure budget is spent at start
on strategy, people and process
or technology will overrun
15

16. BENEFITS
REALIZATION
▸Benefits can only be realized if
they were in the initial business
case for the transformation
▸Poor strategy at start,
compounded by poor people
change, poor process change
and bad technology eliminates
chance of good benefits being
realized
16

17. “Failing to Plan,
is Planning to Fail”
17

18. DT SUCCESS
Systematic Approach
18

19. DT
PROGRAM
EXPECTED
OUTPUT
19

20. SYSTEMATIC
APPROACH
TO
DT
1. Define the strategy and strategic
alignment: where are we going?
2. Understand the human resource
impacts: with and for whom?
3. Define the tactics and the processes:
how do we get there?
4. Implement the transformation: what
is the road map?
5. Realize the benefits: what did we
gain?
20

21. WORKING
TOGETHER
IS KEY TO
SUCCESS
21
LEADERSHIP,
GOVERNANCE,
MANAGEMENT
TECHNOLOGY,
OPERATIONS
COMMERCIAL
STRATEGY,
MARKETING,
SALES
HUMAN RESOURCES

22. DIGITAL
TRANSFORMATION
Observations from the front line
22

23. SHARE OF
COST OF
DT
THAT
LEADS
TO
SUCCESS
23
Strategy
Formulation
15%
Governance
12%
Business
Process
Optimization
18%People
Change
14%
Technology
38%
Benefits
Realization /
Closure
3%
Strategy Formulation Governance
Business Process Optimization People Change
Technology Benefits Realization / Closure

24. RISK PROFILE
OF
DT PROGRAM
24
0
20
40
60
80
100
Risk Measure
Risk Profile of Digital Transformation Program
Strategy
Formulation
Governance &
Control
Business Process
Optimization
People Change
Technology
Benefits
Realization
Project Timeline

25. HALLMARKS
OF A
DT
ORGANISATION
25
Customer
Experience
Product and
Service
Innovation
Distribution,
Marketing
and Sales
Digital
Fulfillment
Risk
Optimization
Enhanced
Corporate
Control
Seamless Multichannel Experience
Whenever, wherever service propositions
New Digital Products
and Services
Co-creation of new
products
Digital Marketing with
higher return on
investment
Digital Augmentation
of traditional channels
Full Straight through processing
(STP) and automatic provisioning
Virtual Servicing and administration
Improved targeting with
customer insights
Embedded / automatedrisk
controls and risk profiling
Improved real time
management
information systems
and decision making
Seamless integration
into third parties
Connectivity
With customers,
suppliers,
employees
Innovation
Business Models
Operating Models
Products
Automation
Eliminating
Human
Non Value Add
Labor
Decision
Making
Analytics,
Big Data

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THANKS!
Any questions?
You can find more at
▸ www.agoactum.com
▸ David.Broderick@agoactum.com