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Digital Enterprise

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Digital Enterprise

  1. 1. 1 ODigitech Consulting Digital Enterprise september 2014
  2. 2. 2 ODigitech Consulting CONTENTS 1. DIGITAL ENTERPRISE 4 1.1 Introduction 4 1.2 SMAC 4 2. IT SERVICE PROVIDER DIGITAL ENTERPRISE SOLUTION PRACTICE 5 2.1 TCS Digital Enterprise 5 2.2 Capgemini Consulting Digital Transformation Practice 5 2.3 Accenture Digital 5 2.4 Deloitte Digital 5 2.5 Tech Mahindra Digital Enterprise Services 6 2.6 Wipro Digital 6 2.7 Dell Business Innovation Services 6 3. DIGITAL BUSINESS TRANSFORMATION 7 4. DIGITAL BUSINESS TRANSFORMATION CASE STUDIES 7 4.1 Burberry Digital Transformation 7 4.2 Digital Technologies in SME 8
  3. 3. 3 ODigitech Consulting digital enterprise By Manish Tiwari All rights reserved All product and company names mentioned herein are property of their respective owners. Neither the publisher nor the authors nor the reviewers of this book have any affiliation with the trademark owners. The trademark owners do not endorse or approve the contents of this book. The author and publisher have taken great care in the preparation of this book, but do not imply warranty of any kind. No warranty can be created or extended through any promotional activity. The publisher and author assume no responsibility for errors or omissions, nor do they assume liability for damages resulting from the use of information contained in this book. Any recommendations implied in the book may not be applicable in every situation. Some sections in the book contain information retrieved from public sources which has been duly mentioned. The book includes information about companies based on interactions with the company representatives in the past. The author assume no responsibility for the veracity of period information related with the companies in the book as these might have changed over a period of time. All rights reserved. No part of this book may be reproduced in any form or by any means, stored in a retrieval system, or transmitted across any media without explicit written permission from the author.
  4. 4. 4 ODigitech Consulting DIGITAL ENTERPRISE 1.2 SMAC The concept of Digital Enterprise is commonly perceived to be driven by convergence of Cloud Computing, Social Media, Analytics and Mobility technologies. Some of the IT Services companies have coined their own acronym for technology stack driving transformation from Traditional Enterprise to a Digital Enterprise. The most commonly used acronym is SMAC (Social, Media, Analytics and Cloud) which has been coined by Cognizant Technologies while Tech Mahindra has been using NMACS (Networks, Mobility, Analytics, Cloud, Security, Social and Sensors) to represent the fifth generation technology stack that is powering the Digital Enterprise evolution. We will analyze the technology stack in a more holistic way to better understand the transformation and evolution of a Digital Enterprise. The multi dimensional approach will essentially cover the incremental innovation in the technology architecture and business innovation powered by the new technologies. The confluence of two is the foundation of a digital enterprise. • Technology Innovation is about efficiency and enhancements to the existing systems on the lines of Moore’s Law. • Tech Enabled Business Innovation is about transformation of business landscape powered by disruptive technologies. 1.1 Introduction An enterprise with seamless interconnectedness between process and people is classified as digital enterprise. The interconnection between processes includes both internal process integral to enterprise business as well as external process of an extended business environment. The people refers to the entities directly connected with the enterprise such as employees, vendors, customers, contractors or entities with indirect association or at the times may not have any relation with the enterprise whatsoever but have the potential to influence the business of an enterprise. The interconnectedness enabled by technology generates lot of economic value for an enterprise and its associated entities. The key element of a Digital Enterprise is tight coupling between business and technology strategy. In fact business strategies are influenced and driven by technology innovations in a digital enterprise. Even as technology has gained in prominence, an understanding of business fundamentals driving an enterprise has assumed greater significance and relevance to succeed in a hypercompetitive world.
  5. 5. 5 ODigitech Consulting IT SERVICE PROVIDER DIGITAL ENTERPRISE SOLUTION PRACTICE 2.1 TCS Digital Enterprise TCS Digital Software & Solutions Group mission is to provide fully licensed, industry specific software and solutions to help enterprises harness emerging digital technologies to their fullest advantage. The Initial industries being targeted by the group are Retail, Communications and Banking and Financial Services, the company said. TCS categorises the net impact of digital technologies on its customers into six buckets: business models, business processes, consumer segments, channels, products and services, and workplace. Digital Software & Solutions Group is headed by Satya Ramaswamy 2.2 Capgemini Consulting Digital Transformation Practice Capgemini Digital Transformation capability have expertise in all areas where digital affects its clients’ value chains, spanning front-end customer experience to back-end operations and on to total business model transformation. Capgemini, in partnership with the MIT Center for Digital Business has conducted the most extensive research on digital transformation to date, examining more than 400 large mainstream companies around the globe. Didier Bonne leads the Capgemini Digital Transformation practice. 2.3 Accenture Digital Accenture created the unit to focus on digital enterprises, with about 23,000 employees. Accenture Digital merged company’s diverse digital services into a new, integrated end-to-end digital capability, Michael Sutcliff is the Group Chief Executive of Accenture Digital. 2.4 Deloitte Digital Deloitte Digital offers services that enable client solutions using digital technologies, including the Web, Mobile, Social Networking, Digital Strategy, Digital Content and Digital ERP. Digital Transformation Practice The Digital Transformation Practice delivers following services and solutions • Multi-channel business strategy • E-commerce platforms for new business models • Innovative mobile applications • Integrated digital marketing campaigns • Social media strategy
  6. 6. 6 ODigitech Consulting 2.5 Tech Mahindra Digital Enterprise Services The unit employs 2,500 people trained in digital technologies and has about 200 consultants who work with clients to chart out their digital strategy. The company, which has targeted growing revenue to $5 billion by 2015, expects 10% of that (approximately $ 500 million) coming from digital enterprise services unit. Digital Enterprise Solutions are built on 5th generation technologies like Networks, Mobility, Analytics, Cloud, Security, Social, and Sensor (NMACS). Mr. Rishi Bhatnagar is the global head of Digital Enterprise Services unit. 2.6 Wipro Digital Wipro Digital provides integrated digital services including strategy, design and technology implementation for digital business. Mr. Bhanumurthy Ballapuram will head the newly created business unit. 2.7 Dell Business Innovation Services Dell consolidated capabilities in social, mobile, analytics and cloud under one practice, Business Innovation Services (BIS). This unit helps customers evaluate and implement digital technologies in their enterprises.
  7. 7. 7 ODigitech Consulting DIGITAL BUSINESS TRANSFORMATION Digital transformation is about creating value by reducing cost through implementation of digital technologies in various functional units and more importantly creating new revenue streams. There is need to identify the opportunities for digital technologies investments that will create the maximum impact on business. The first digital initiative of a customer facing organization is in front end functions such as customer experience and partner collaboration. However, great value can be realised through digital technologies investments in the back office functions thereby improving operational efficiency and process effectiveness. For example, at Starbucks, just 35 of 100 active IT projects in 2013 were focused on customer- or partner-facing initiatives while one-third of the projects were devoted to improving efficiency and productivity and remaining one-third focused on improving resilience and security. DIGITAL BUSINESS TRANSFORMATION CASE STUDIES 4.1 Burberry Digital Transformation When Angela Ahrendts took over as CEO in 2006, Burberry was significantly underperforming against its peers: while the overall sector was growing at around 12-13% a year, Burberry’s rate was about 1-2%. To address these issues, Ahrendts launched a significant transformation program covering multiple business areas, from customer experience to operational excellence, and largely driven by digital technologies. To keep Burberry growing, Ahrendts recognized she needed to woo younger and more global consumers, who communicate and share information -- and shop -- in the digital world. Achieving this transformation was much more than new technology implementation. This was a closely managed change program to achieve cross-channel consistency, engage employees, secure the right skills, and develop strong IT-business relationships. Specific governance was put in place, new roles were created, and missing skills were developed or acquired. Ahrendts already has one eye on the future possibilities: “Consumer data will be the biggest differentiator in the next two to three years. Whoever unlocks the reams of data and uses it strategically will win.” Burberry CEO Angela Ahrendts explained to Salesforce.com CEO Marc Benioff her vision: to create a company where anyone who wanted to touch the brand could have access to it. She just needed a digital platform to make it happen. Benioff sketched a diagram of how Burberry could become a “social enterprise,” overlaying technology like Salesforce, SAP, Twitter, and Facebook atop the entire company. The company uses Salesforce’s Chatter platform -- think of it as a corporate version of Facebook -- a tool that Ahrendts says has accelerated communication throughout the entire operation. Sales teams in the stores, for example, were among the first to notice that larger male customers were unhappy with the fit of one style of suit. Headquarters heard about it via “Burberry Chat,” and the design team made some alterations. The company along with SAP jointly developed an app that will put all of Burberry’s product and customer information into sales associates’ hands, allowing them to look up a customer’s name to see a profile that includes global transaction history and
  8. 8. 8 ODigitech Consulting social media activity as it relates to Burberry. Likewise, Burberry’s website, dubbed Burberry World, is more than an e-commerce site or even just a digital representation of its stores. Burberry is pushing to make its website a multimedia experience. 4.2 Digital Technologies in SME Small and Medium enterprises have used digital medium primarily for market and sales. Many small and medium businesses have used marketplace platform for sales. Some of the business have utilized social media platform mostly Facebook for marketing purpose and few have even built an ecosystem for business transaction utilizing the power of the social media platform. If a business has a differentiated product then the social media can generate good leads. Kavani Sarees Kavani’s Tan Kuruvilla uses Facebook to showcase her designs and as the first point of contact with customers. Tan Kuruvilla has sold more than 600 custom-made bridal sarees that cost a minimum of Rs 10,000. This sales volume was achieved with a near-zero investment in marketing. Kavani’s Facebook page has almost 80,000 likes — the parameter of a page’s popularity on the social media site. Kavani sarees have become so popular that Kuruvilla’s have decided to set up stores the first of which started in Kerala’s Kottayam district followed by a store in Bangalore.
  9. 9. 9 ODigitech Consulting ODigitech Research, Mumbai

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