1| Copyright © 2019 Deloitte Digital. All rights reserved. D I G I T A L GRAB & GO OCTOBER 8, 2019 How to organize, operate, and behave for the digital age
1 | Copyright © 2019 Deloitte Digital. All rights reserved.
D I G I T A L
G R A B & G OO C T O B E R 8 , 2 0 1 9
How to organize, operate, and behave for the digital age
2 | Copyright © 2019 Deloitte Digital. All rights reserved.
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Netflix users have streamed 694,444 hours of video
Uber users have taken 9,772 rides
Youtube users have watches 4,500,000 videos
1,400,000 swipes have been madeon Tinder
…and 46% of male swipes were to the right, but only 14% of the female were as well
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For the first time in history, technology is
pervasive enough and cheap enough that
everyone is using it with little or no learning
curve, creating business models and
opportunities that never existed before.
Technology has become ubiquitous and embedded into
everyone’s lives. The explosion of connectivity, data, ease of use,
computing power, accessibility, and the rapid pace of
innovation have made technology a basic necessity.
T E C H N O L O G Y A S A D I G I T A L E R A E N A B L E R
Digital technologies are woven into the fabric of everyday living.
Family and friends stay connected, scheduled, and entertained.
Technology is now necessary for entertainment, health, driving,
socializing, shopping, banking, traveling, learning and dozens of
other personal activities.
T H E D I G I T A L L I F E L I N E
Digital is transforming every business and touches every employee
in a unique way. Some industries are being turned inside out, while
others are benefiting from the expanded capabilities. Marketing,
customer engagement, employee productivity, sales, and many
other business functions are being redefined.
D I G I T A L D I S R U P T I O N I N E V E R Y S E C T O R
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Source: Visual Capitalist, Statista –
market cap as of June 21, 2019
T H E L A R G E S T C O M P A N I E S B Y M A R K E T C A P
2006:
2012:
2019:
2001:
#1 #2 #3 #4 #5
$406B $365B $272B $261B $260B
$446B $383B $327B $293B $273B
$406B $376B $277B $237B $228B
$1,050B $920B $778B$943B $546B
Top 5 Publicly Traded Companies (by Market Cap)
…who will occupy the bottom row in the future?
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D I G I T A L T R A N S F O R M A T I O N
Business leaders are grappling with
unprecedented change. Growing
connectivity, competition, and
consumer power, disrupt others
before you are disrupted means new
engagements, new products, new
business models, organizations, and
ecosystems. Digital—business—
transformation is the new norm.
The erosion of traditional product-
based advantages is forcing
companies to shift their focus to
customer experience and a new
holistic business strategy. This
requires integrating across the
enterprise to demonstrate value at
each and every touchpoint.
Digital acceleration focusing all efforts
on breaking new ground or quickly
expanding into new space created by a
new category. An exceptional front-
end strategy must be supported by
an exceptional back office, requiring
new expertise, processes and systems,
and potentially a new operating model.
D I G I T A L E X P E R I E N C E D I G I T A L C O R E
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Many organizations swirl in an endless loop of ‘doing’
digital things – an illusion of being digital – rather
than making changes to their digital mindset and their
business, operating, and customer models
Leverage traditional technologies to automate existing capabilities. Dabbling with digital. No real change to the organization
Leverage digital technologies to extend capabilities, but still largely the same business, operating, and customer models
Business, operating, and customer
models are optimized for digital
and profoundly different from
prior business, operating, and
customer models
Leverage digital technologies—becoming more synchronized and less siloed—with more advanced changes to current business, operating, and customer models
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Digital leadership and talent development
Build digital leadership skills and talent pool. Develop leaders who can excel in leading in the future of work, source digital talent, and train existing employees.
Innovationculture
Embrace a “succeed fast” approach to innovation that focuses on the end-user and desired outcomes.
Balanced digital portfolio
Understand how to prioritize initiatives and manage the digital portfolio.
Cross-functional collaboration
Break down traditional silos to improve collaboration across business units and functions.
Robust digitalecosystem
Leverage external partners (e.g., startups, tech companies, designers, academia, etc.) and not try to do everything themselves.
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Your consumers do not differentiate across sectors – they want great digital experiences and the expectations are often set far from your industry
Expecting predictive personal relevance, with low effort on their part
Expecting instant, intuitive, seamless experience with a tap
Expecting instant, useful advice relevant to where they are right now
Expecting user-centric and intuitive user experiences
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W H AT N O T T O D O
Unsuccessful transformations are piling
up because these approaches don’t workTry to ‘org
design’ the
way to digital
Focus only on
implementing new
digital technologies
Approach digital
transformation as a
technology
implementation
Isolated victory or
bursts of activity—
then declare digital
success
Hire or buy digital
skills without also
focusing on training
existing talent
Just tell people to be
more agile and
innovative
11 | Copyright © 2019 Deloitte Digital. All rights reserved.
disagree that their leaders
share results from failed
experiments in constructive
ways that increase
organizational learning
indicated they need to update
their skills at least yearly, with
nearly half of them reporting
the need to update skills
continuously
are dissatisfied with the
degree to which their
organization supports
ongoing digital skill
development
reported biggest challenge
impacting a company’s ability to
compete in a digital environ-
ment is lack of experimentation
more likely (64%) to develop
digital leadership skills if you
are a digitally mature
organization than the least
mature organizations (14%)
of companies aren’t
pushing decision-making
authority needed into
lower levels of the
organization
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Digital DNA (dĭj′ĭ--tl dē′ĕn--ā′) n.
Traits of maturely digital
organizations.
It carries the underlying
instructions, development,
functioning, and replication for
‘being’ digital. traits of ‘being’ digital
Through research we have identified
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Nimbleness
Changing mix of traditional and non-traditional stakeholders
Changing nature and types of work
Constant disruption
Constantly changing decision criteria
Continuous ecosystem disruption
Continuously innovating Democratizing
information
Dynamic skill building
Failing forward, learning faster
Flattening and changing hierarchy
Fluidity
Geography agnostic
Customer centricity
Intentionally collaborative
Iterative
Modulating risk & security boundaries
Morphing team structures
Managing multi-modal operations
Shifting decision rights & power
Productive mobility
Real time and on demand
Synchronizing ways of working
How can businesses organize, operate and behave in digital ways?
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Organize, operate, and behave as a digital leader in the technology world. Become more customer centric, agile, increase speed to value, build digital leaders, and continuously innovate
To be America’s most digital electric utility, capable of rapid innovation, with a digital ready workforce and organization in synch with the constantly evolving future of work
Leapfrog from a traditional to a digital organization as rapidly as possible, providing the best digital technologies, organization, and readiness to better enable and support the mission
Hyper-personalize the bank’s customer experiences leveraging a digitally-able culture and workforce by enabling everyday customer-centric actions with digital skills and capabilities
Rewire the organization for digital while creating digital leaders and teams that can help the organization continuously transform
Architect and build a function that innovates digital business and operational solutions while enabling the rest of the organization to become more digital
Enable the marketing function to “be” more digital while personalizing customers experiences
DIG
ITA
L A
MB
ITIO
NS
DIG
ITA
L D
NA
Focus on aligning digital technologies with how the org is organized, operates, and behaves—to keep shaping its DNA for everyday readiness
WH
O
A very large global technology innovator
One of the largest electric utilities in the US
A branch of the US Dept. of Defense
A large global bank
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How digital are we today?
How digital do we need to become?
How do we get there?
Determine overall digital
maturity and how digital you are
for each of the 23 Digital DNA traits
Create a blueprint of the new DNA
needed to help the organization or
function become more digital
Construct minimum viable changes
(MVCs) that help infuse needed Digital
DNA into your organizational DNA
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Digital DNA Capability Report Understand the organisation’s Digital capabilities across the value chain
Understand how global stakeholders innovate in their business models & operations
Benchmark against industry standards & good practice
Digital vision and success stories
Map Digital capabilities
View of current Digital / technological operational pains and priorities
Interviews, workshops and surveys to assess digital maturity
Work with key stakeholders to construct a set of prioritised operational initiatives
Match operational initiatives to growth concepts on the roadmap
Ob
ject
ive
sA
ctiv
itie
s
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Client Ideas
Filtering
Idea Proposition
Concept development
Data Insights Ideas
Idea generation
Several prioritised concepts structured as a balanced portfolio
• Deloitte has created the Growth Labs™
methodology to extract the significant
knowledge and creativity across the
ecosystem
• We intend to use the methodology to
discover latent and new ideas for
organisations, making sure all bases are
covered before focusing our efforts
• We have used Growth Labs™ across a wide
variety of industries and organisations with
great success, making our clients more
efficient and unlocking growth
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Happier
Sooner
Safer
Better MinimalViable
Change
SoonerFlow: Reduce time to learning & time to market, increase flow efficiency,increase throughput
SaferCompliance: agile not fragile. Continuous compliance.
BetterQuality: Reduce incidents in
production, faster recovery (MTTR), increased resilience
HappierEngagement: happier colleagues
& customers, measured via NPS
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Think Big
Start Small
Act FastStay Human
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ContactsLauren Coe
Manager
Contact: [email protected]
Anders Ørding Olsen
Manager
Contact: [email protected]