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Organisational Principles for Digital Collaboration
Driving Business Value
Enterprise 2.0 SUMMIT | 26 November 2014
David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter
Organisational Principles for Digital Collaboration
Organisational Principles for Digital Collaboration
Organisational Principles for Digital Collaboration
Agenda
• Business is changing: – the current landscape
– the Digital Enterprise Wave
• Why organisational change?
• Using Digital & Social tools - How do you create value?
• How do you establish your Digital Thinking?
• What do you need beyond Digital capability?
• Why bother?
• Who should be involved?
• What are the key recommendations?
Hang on - can you explain this new digital landscape?
"Move bits, not atoms."
January 1995
Your business model is under threat!
The Digital Enterprise Wave
ride it
or go under!
Infrastructure
Connectivity
Internet
WiFi
3G & 4G
Human Factors
Entrepreneurship
Crowdsourcing
Millennials
Economic
Outsourcing
Offshoring
Low cost
The Digital Enterprise Wave
The Big Shift
Cloud Social Mobile
The Digital Enterprise Wave
Emerging Technologies
Internet of Things
Big Data & Analytics
3D Printing
Artificial Intelligence
The Digital Enterprise Wave
“Business as Usual” Thinking
Point Social Media Solutions
Siloed Communities
Lack of Integration
Legacy Systems of Record
Business as Usual
The Digital Enterprise Wave
We need “Digital” Thinking
Digital and Social inside and out
Business Model Innovation
Systems of Engagement
Design Thinking
Strategy
Skills
Staff
“Shared Values”
Structure
Systems
Style
Hard Systems
Soft Systems
Integrates “hard” and “soft” business systems in a structured way
“technology neutral”
Includes employee engagement
Proven approach
Especially useful for lessons in managing major change
McKinsey 7 “S” Model
The Digital Enterprise Wave
Why organisational change?
• The evidence is mounting – to make digital truly work change is necessary
• The key is change of Mind-set and Culture
• I worry about some current thinking on organisational structure….
• We need “Evolution not Revolution!”
• Fairness to each other and everyone with whom we come in
contact
• Freedom to encourage, help, and allow other associates to grow
in knowledge, skill, and scope of responsibility
• The ability to make one's own commitments and keep them
• Consultation with other associates before undertaking actions that
could impact the reputation of the company
A Team-Based, Flat Lattice Organization
checks and balances to ensure accountability, transparency and honesty
taking responsibility individually and collectively
rather than relying on traditional hierarchical status
Hierarchy - Wirearchy
http://wirearchy.com/what-is-wirearchy/
Organisational Change
• It’s not about changing the org chart – many structures will work
• It is about mind-set and values:
– accountability, transparency and honesty
– checks and balances
– fairness
– freedom to encourage, help, collaborate
– taking responsibility individually and collectively
– empowering employees
Total Value Created
IncreaseRevenue
Average Sale £
Sales Volume
Reduce Costs
Churn
Operating Cost
• Deeper understanding of customer needs• Conversation with customers increases
attachment to business
• Increased marketing penetration at lower cost
• Faster lead generation & customer onboarding
• Faster understanding of product and customer problems
• Pro-active customer retention
• Fast information movement and higher levels of collaboration drives efficiency
• Higher employee engagement drives effectiveness
Close link
Digital Business Value CreationDepending on the business, the impact of digital transformation will vary – but will drive significant value
Bottom line = value creation
Five distinct social collaboration ambitions
Strategy
Skills
Staff
“Shared Values”
Structure
Systems
Style
Hard Systems
Soft Systems
Integrates “hard” and “soft” business systems in a structured way
“technology neutral”
Includes employee engagement
Proven approach
Especially useful for lessons in managing major change
Establishing your Digital Thinking
Structure
• Information flow must be fast and pervasive
• You must streamline decision making
• Faster time to market
• New teams, cross functional teams
• One of the largest bookmakers in the UK
• 80 year old company undergoing a major culture shift
• Adopting a lean start up model
• Product teams include people who used to be in marketing, IT, product management
• 4-6 week new product cycles
• Touch the customer within weeks – used to be 2 years
Systems
• Fast reaction time to important information
• Old processes & practices must be replaced (and that’s not easy)
• New technology, but easy to deploy and use
• Digital and social at the heart of the business process and creating value
Staff
• Must be on board
• Supported by management at all levels
Gallup State of the Global Workplace: Worldwide, actively disengaged employees
outnumber engaged employees by nearly 2-1
Skills
• Understand the new policies
• Know what’s expected of them
• Know how to operate the new systems
Style
Digital Taylorism Open, Good for All
Shared Values
• Go back and find your “why”
• Ask “what’s in it for me?” at all levels
• Focus on benefits for all
• Look beyond shareholder value
Leading Digital
Four Level of Digital Mastery
Digital Mastery by Industry
What is your level of Digital Mastery?
- generate 9% more revenue- create 26% more profit- 12% higher market valuation
Who should be involved?
• Top Management, the C-Suite - essential
• Engaged employees – essential
• IT/the CIO – connect to the legacy
• Learning/proving by doing - essential
• Good outcomes for all - essential
with
• 76,000 employees now collaborating• Sharing knowledge and expertise through 7,500 purpose built
communities• 30% active users posting 10 collaborative notes per week/per
user• Better knowledge sharing leads to faster response times and
more wins• Reducing response time in some cases from 2 days to 45
minutes• Operational efficiency gains by reducing internal e-mail overload
by an average of 60%• Saving an average of 2 hours a day per employee
Atos "Journey to Collaboration" / Zero emailTM program
Winners Of The 2014 Groundswell Awards (Business-To-Employee Division)
Key recommendations?
Key recommendations?
• Revisit your business model
• Revisit your value proposition
• Pilot, but in an area where there is measurable business benefit
• Learn and adapt
• Roll out, bringing everyone with you
• Ensure everyone shares the benefits
Referenceshttp://en.wikipedia.org/wiki/Nicholas_Negropontehttp://en.wikipedia.org/wiki/Being_Digitalhttp://www.capgemini.com/resources/transform-to-the--power-of-digital http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/http://postshift.com/author/lee/http://www.technologytransformation.com/High%20Perfomance%20Projects.htmhttp://www.bonkersworld.net/organizational-charts/http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svghttp://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/http://www.gore.com/en_xx/aboutus/culture/http://www.johnlewispartnership.co.uk/about/our-constitution.htmlhttp://wirearchy.com/what-is-wirearchy/http://blog.medallia.com/customer-experience/ceo-top-pyramid/http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.htmlhttp://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/https://www.startwithwhy.com/http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspxhttp://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie=UTF8&qid=1416926793&sr=1-1&keywords=leading+digitalhttp://www.businessmodelgeneration.com/canvas/bmchttps://strategyzer.com/value-proposition-design
Not for reading – just for reference
David TerrarAgile Elephant | techUK | EuroCloud UK
p: +44 (0)1727 866309 m: +44 (0)7715 159423
e: david@theagileelephant.comw: www.theagileelephant.comskype: david_terrartwitter: http://twittter.com/DT @DT linkedin: http://www.linkedin.com/in/davidterrarblog: http://theagileelephant.com/blog& http://medium.com/@DT
innovation | digital transformation | value creation | (r)evolution