In this talk, I cover the Digital Transformation trends that we will see in the next decade in the context of the changes that we can expect to see in the environment around us. We then talk about how do organizations need to prepare to be able to take advantage of these trends.
2. @sudiptal
About Digite
■ Best-in-class products covering Lean-AgileALM, Project/Portfolio Management
– 900,000+ users running over $30B worth projects across Consulting, Professional
Services and Enterprise IT organizations
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DIGITALTRANSFORMATION ISTHE PROCESS OF
USING DIGITALTECHNOLOGIES TO CREATE NEW — OR
MODIFY EXISTING — BUSINESS PROCESSES, CULTURE, AND
CUSTOMER EXPERIENCESTO MEET CHANGING BUSINESS
AND MARKET REQUIREMENTS
Salesforce.com
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■ Distills > 1,700
technologies…
■ That will significantly
affect business, society
and people over the next
5-10 years
■ 5 key trends
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Hype CycleTrend 1: Composite architectures
■ Rapid changes and decentralization will force organizations to shift to more agile, responsive
architectures.
■ A composite architecture is made up of packaged business capabilities built
on a flexible data fabric.
■ Modular design enables organizations to “recompose” when
needed (during a global pandemic or economic recession)
■ 4 core principles: Modularity, efficiency, continuous
improvement and adaptive innovation
■ Trends in this bucket include EmbeddedAI, Data Fabric,
Private 5G,
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Hype CycleTrend 2: AlgorithmicTrust
■ Increased amounts of consumer data exposure, fake news and videos, and biased AI, have
caused organizations to shift from trusting central authorities (government registrars, clearing
houses) to trusting algorithms.
■ Algorithmic trust models ensure the privacy and security of data, provenance
of assets, and the identities of people and things.
■ “Authenticated provenance” is a way to authenticate
assets at source and ensure they’re not fake or counterfeit.
■ Other trends in this category include differential privacy,
responsible AI and explainableAI.
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Hype CycleTrend No. 3: Beyond silicon
■ “DNA computing and storage” use DNA and biochemistry in
place of silicon or quantum architectures
■ Data encoded into synthetic DNA strands for storage and
enzymes provide the processing capabilities through chemical
reactions
– InJune 2019, 16 GB of text fromWikipedia's English-language
was been encoded into synthetic DNA.
– Still rudimentary, expensive and with technical barriers
– DNA computing and storage will transform storage, processing
parallelism and computing efficiency.
– Leading to DoT (DNA ofThings)
■ Other trends in this category include Biodegradable
sensors and carbon-based transistors.
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Hype CycleTrend No. 4: Formative AI
■ Formative AI - AI that is capable of dynamically changing to respond to a situation.
■ GenerativeAI - AI that can create new novel content (images, video etc.) or alter
existing content.
– The new artifacts are similar to, but not exactly the same as, the original.
– UseCases in drug discovery and synthetic data generation — and even AI-generated
artwork — are also increasing in popularity.
– Also responsible for Deep Fakes
■ Other trends in this bucket include
composite AI, differential privacy,
and self-supervising learning
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Hype CycleTrend No. 5: Digital me
■ From health passports to digital twins, as technology integrates with people, there are
more opportunities to create digital versions of ourselves.
– These digital models represent humans in both the real and virtual worlds.
■ BMIs are brain-altering wearables that enable two-way
communication between a human brain and a computer or
machine interface
– Wearables or implants that monitor EEGs (electrical
activity in the brain) and individuals’ mental states.
– Bidirectional BMI (versus regular) - modify the mental
state by using electrostimulation
– Use cases likes boosting alertness in a fatigued employee
or changing the mood of an irritable teacher by applying
stimuli...
– The negative: vulnerability
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■ In closing, the 5 Key
Trends:
– Composite
Architectures
– Trust in Algorithms
– Beyond Silicon
– Formative AI
– Digital Me
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Imperative 1:Take a stance on
purpose
■ Strengthen your purpose by defining “Who are we”
■ 3 parts:
– Clear on purpose
– Know how they create value/ why they’re unique
– Create strong and distinct cultures that help attract and
retain the best people.
■ The rise of ESG companies!
■ Reinforced through meaningful or even symbolic actions
– Amazon: the representation of a customer in every meeting
– CVS: stop selling tobacco product – “helping people on their path to better health”
■ People who say they are “living their purpose” at work are four times more likely to report
higher engagement levels than those who say they aren’t
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Imperative 2: Sharpen your value
agenda
■ Can you show how you the organization will deliver value?
■ Build a “Value” agenda
– a Map that disaggregates a company’s ambitions and
targets into tangible organizational elements such as
business units, regions, product lines, and even key
capabilities.
■ Use the value agenda to focus the organization's effort and instill a sense of what really
matters to every employee
– Consider how Apple rallies itself behind creating the best user experience… from Design
to Packaging!
– Apple has a Design team just for packaging - to ensure that the experience of opening
the box elicits the right emotional response
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Imperative 3: Use Culture as the
secret sauce
■ If why explained the purpose and a clear what explained the
value agenda, the next normal defines the how - the Culture
■ Broad themes don’t cut it… it can't just exist on slogan
painted walls or in catchy email signature lines
■ Culture plagiarists be warned - culture is hard to copy
■ Culture is specific observable behaviors that all levels of the
company adhere to.
■ Don't wait for the organization/HR - do it in your circle of influence
– Amazon's 2-pizza rule shows their culture of keeping the teams small
– Start without a PPT but with silence for all people to read the "pre-meeting" memo.
■ Speed is both a preoccupation and a cultural bias; Covid has made Speed a priority
■ Focus on the company's edges where employees are close to customers! (…. think
SUPPORT!)
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Imperative 4: Radically flat structure
■ Business Complexity != OrganizationComplexity
■ Fitter, flatter, faster and far better at unlocking value!
■ Flatten the organization; adopt the simplest P&L structure
■ Don’t focus on boxes and lines – focus on connectivity: who
works on what with whom!
■ Haier is an organization that moved away from hierarchies towards
emergent, agile teams
– No layers, no bosses, no middle-management - but it’s not free for all!
– 1000s of microenterprises - small flexible teams that form by mutual
selection - collaborate over network of platforms and people to
accomplish the company's goals
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“Helical” structures
■ Balance between Flexibility and
Agility, between centralization and
decentralization
■ Reduce complexity; embrace
agility
■ These managers are neither
“primary” nor “secondary,”
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Imperative 5:Turbocharge decision
making
■ Requires a system that allocates decisions to the right
executives, teams, individuals and even algorithms
– Top team: Focus on core business decisions that define the
initiative central to the value agenda
– Next level: Focus on resource/talent allocation for those
initiatives
– Majority decisions delegated to the lowest level possible,
giving employees at the company's edge, accountability for
the decisions they are best equipped to make.
■ Covid has forced organizations to turbo charge their decision making out of necessity
■ "We were making a month's worth of decisions every day"
– So, organizations had the muscles to accelerate decision making.
– Need to strengthen and flex those muscles from crisis to a redesigned decision making
process for the future
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Imperative 6:Treat talent as scarcer
than capital
■ The bedrock principle:Talent is scarcest resource
■ Inclusion is critical:
– 39% leave a job due to perceived lack of inclusion
– Companies in the top quartile of racial/ethnic/gender
diversity at the Executive level are 26-25% more likely to
have above average profitability than companies in the
bottom quartile.
■ Netflix prioritizes STARS in every position and at every level.This enables their highly
autonomous culture.
– They actively counsel out "adequate" performers.
■ Rely on marketplaces to match skills to projects
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Imperative 7: An ecosystem view
■ Companies pushed for gaining leverage and controlling the supply
chain
■ Increasingly, value is created through networks where partners
share data, code and skills - where community of businesses
create value and antifragility together
■ Top companies now embrace (and laggards struggle to accept)
that the source of value will be changing constantly - in ways that
cannot be tapped solely by a company's traditional, core
business.
■ In 2014,Tesla took a seemingly radical decision to open source its patents and encourage other
companies to use its intellectual property - a brilliant model of ecosystem-oriented decisions
– Tesla recognized that it couldn't grown without partners that would build charging stations and offer
services to create the infrastructure to support EV. It put itself in the center of the exploding ecosystem
of partners, laying the groundwork for its explosive growth.
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Imperative 7: Adopt an
ecosystem view
■ Organizations needs to view partners as extensions of
themselves.
■ Partnerships develop the antifragility that helps the
ecosystem weather shocks
■ Successful companies need to excel at blurring boundaries,
taking a systems view, rather than mechanistic one and
embracing fluidity over fixed plans.
■ Amazon encouraged the formation of new delivery start-ups by launching a last mile delivery
program that offered top performing employees seed money, leased vans and training.
– While these partners are self-employed, Amazon views them as both an extension of their
logistics ecosystem and a new form of home-grown partnership.
■ J&J JLABS provides support and resources on compliance, markets, science and other topics
to promising start-ups.
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Imperative 8: Build data-rich
tech platforms
■ DATA ISTHE BUSINESS…. but….
■ Need compelling approaches for data governance,
redesign processes as modular application, tap the benefits
of scalable cloud based technology, and support all this
through variable-cost technology budgets that are
reallocated dynamically.
■ Netflix: from a small mail-in provider of DVDs to a global platform, streaming service and
content creator, was achieved by leveraging its user data
– Its recommendation engine accounts for 80% of time customers spend streaming Netflix
content
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■ Empowered workforce that understands "fail fast, learn, repeat"
■ A mindset of continuous learning that encourages people to
adapt and reinvent themselves to meet shifting needs.
■ From "know it all" to "learn it all".
■ Google 20% time policy…
– Such policies signal to the entire organization that learning, experimentation and
innovation are part of everyone's day job - not just for a specialized group.
■ One approach does not resonate with all; use different approaches to appeal to different
segments of your population
Imperative 9: Accelerate learning
as an organization
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Thank you for your time today...
■ For any questions or clarifications,
reach me at:
– @sudiptal
– slahiri@digite.com
– lahiri.sudipta@gmail.com
– http://sudi-thoughts.blogspot.in
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Notas do Editor
Not just that… but future generations have to pay significantly more in taxes for this ballooning interest payments! Spending patterns
Not just that… but future generations have to pay significantly more in taxes for this ballooning interest payments! Spending patterns
… for its high storage density. Since DNA can store data far more densely than silicon, you could squeeze all of the data in the world inside just a few grams of it.
BMI: Brain Machine Interface
Organizations needs to view partners as extensions of themselves.
Partnerships develop the antifragility that helps the ecosystem weather shocks
Successful companies need to excel at blurring boundaries, taking a systems view, rather than mechanistic one and embracing fluidity over fixed plans.