The Internal Impacts of a Digital Transformation: How to Effectively Manage Culture, Collaboration,...

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Extending Digital Transformation Across Your Enterprise facebook.com/perficient twitter.com/PRFT_Transform linkedin.com/company/perficient

Transcript of The Internal Impacts of a Digital Transformation: How to Effectively Manage Culture, Collaboration,...

Page 1: The Internal Impacts of a Digital Transformation: How to Effectively Manage Culture, Collaboration, and Knowledge

Extending Digital Transformation

Across Your Enterprise

facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient

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Perficient is a leading technology and

management consulting firm serving

Global 2000 and enterprise clients

throughout North America.

We deliver digital experience, business optimization

and industry solutions that enable clients to improve

productivity and competitiveness; strengthen

relationships with customers, suppliers, and

partners; and reduce costs.

ABOUT PERFICIENT

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PERFICIENT PROFILEFounded in 1997

Public, NASDAQ: PRFT

2014 revenue $456.7 million

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, Chicago,

Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis,

Lafayette, Milwaukee, Minneapolis, New York City, Northern California,

Oxford (UK), Southern California, St. Louis, Toronto

Global delivery centers in China and India

>2,600 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

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PRESENTERS

Rich WoodDirector, Digital Platform Strategy

Perficient

@richOthewood

[email protected]

Michael PorterManaging Principal, Strategic Advisors Team

Perficient

@porterondigital

[email protected]

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WHAT IS DIGITAL TRANSFORMATION?

“The realignment of, or new investment in,

technology and business models to more

effectively engage digital customers at every

point in the customer experience lifecycle”

~Altimeter

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“All I’m saying is now is the time to develop the technology to deflect an asteroid.”

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FROM DIGITAL PREY TO DIGITAL PREDATOR

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CHANGING FROM THE OUTSIDE IN

TOUCH POINTS

JOURNEYS

BRAND PERCEPTIONS

TEAMS

PROCESSES

SYSTEMS

Experiences Use customer insight to evolve

digital assets and capabilities

Encourage customer empathy

among teams

Transformation is a process that requires a holistic

approach within your culture, processes, and

technology ... based on your customer

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Extending digital transformation across the enterprise

pushes you to think about three key items:

1. Culture

2. Processes or Change Management

3. Technology / Tools

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Responsive DesignMobile form factors (phones, tablets)

drive the expectation of access

anywhere, with full fidelity, on any

platform – for important apps and

even your intranet

Cloud / SaaS Tools“Out of the box” services are

becoming available as products with

license subscriptions, slashing

development time and impacting

TCO models

TRENDS THAT IMPACT YOUR ORGANIZATION

Consumerization of ITThe demand for consumer-level

quality of devices and form factors,

software, services and response times

continues to define end-user

expectations

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CULTURE

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THE TOUGHEST OBSTACLES TO CHANGE• Slowed or stalled decision-making: Internal

politics, competing priorities

• Inability to prove business value: Traditional

ROI doesn’t work

• Too much focus on technology: Rather than

addressing deep change

• Lack of understanding of operational issues:

Decision makers

• Fear of losing control: By management

“Work cultures can either accentuate or alleviate

these obstacles.” Jane McConnell Harvard Business Review August 2015

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RANK YOURSELF ON A FIVE-POINT SCALE

• Strong shared sense of purpose vs. weak, inconsistent purpose

• Freedom to experiment vs. absolute compliance with rules and processes

• Distributed decision making vs. centralized

• Open to the influence of the external world vs. internally focused and closed

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WHERE DO I START?Cultural change requires substantial effort that

typically begins at the top. You can do some things

to make it work. If you engage senior stakeholders

to push towards key cultural goals you will go a

long way.

• Engage C-level officers to champion change

• Don’t forget your CFO to enable adaptive planning*

• Challenge your CIO to create a team that’s ready for

rapid change/prototyping*

• Do more than get a digital transformation office, put

together a team or a board

*Martin Gill Forrester: Three Process Hacks to Speed Digital Delivery

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WHERE DO I START?You can also start small. Find your organization’s

“change agents” and enable them.

• In 2008, Best Buy created a Twitter team and enabled

them to succeed

• Create a rapid development team on the cloud and

push the most important projects to them

• Create collaboration between two departments to

start. R&D and one business unit, for example

• Get your PMO engaged in something small and

iterative as an “experiment”

• Goal = Rapid delivery

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Marketing Customer ServiceIT

ENGAGE YOUR COMPANY

OperationsSales HR

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CHANGE MANAGEMENT /

PROCESSES

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A PROCESS EXAMPLE

REAL-LIFE SCENARIO

Vendor: Online electronics retailer

Process: Customer service change address

Issue: CSRs lack a process and are not given

tools to change my address

Result: Lost customer

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WHAT IS CHANGE MANAGEMENT?

What is Change Management?

• It’s the process of getting people ready, willing, and able to

accept and embrace new ways of working

• It’s about adoption and engagement

• The focus is not just on the ‘what’s different’ and ‘how work

changes’, but on why the initiative is important – What’s in it for

me? (WIIFM)

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WHAT IS CHANGE MANAGEMENT?

Change management’s impact on initiative or

project success

• Projects with change management are 6 times more

likely to meet or exceed project objectives*

• Change management increases the probability of

staying on schedule and budget, resulting in higher

benefit realization and ROI

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WHAT IS CHANGE MANAGEMENT?

Change management minimizes

disruptions and decreases the time

required to realize productivity gains

planned by the initiative or project.

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THINK ABOUT THREE TYPES OF CHANGE

The Business of APIs: What Product Managers Need to Plan For http://techproductmanagement.com/the-business-of-apis-what-product-managers-need-to-plan-for/

Developmental

Change

• Improvement of what is

• New state is a prescribed enhancement of

the old state

Old StateNew

StateTransition

State

• Design and implementation of a desired

new state

• Requires management of the transition

process to dismantle the old state while

putting in the new state

• Managed timetable

Transitional

Change

Transformational

Change

• New state is largely unknown; it emerges from

visioning, trial and error discovery, and learning

• Requires a fundamental shift in mindset,

behavior, and culture

• Critical mass of organization must operate from a

new mindset and behavior

Growth

Success

Plateau

Chaos

Death

Re-

EmergenceWake-up

Calls

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WHAT DO I DO?

COMMUNICATE PHASE

Where we spend the most

time; answers the question

of WHAT?

ENABLE PHASE

Getting the users ready;

answers the question of

HOW?

SUSTAIN PHASE

Continuing the adoption

throughout the project;

embedding OCM

capabilities within the

client’s organization

DEFINE PHASE

Shortest phase,

answers the question

of WHY?

1. Be pragmatic

2. Address core organizational and process issues

3. Iterate

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TOOLS / TECHNOLOGY

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THE CONSUMERIZATION OF IT

Consumerization is the specific impact that

consumer-originated technologies can have on

enterprises.

It reflects how enterprises will be affected by,

and can take advantage of, new technologies

and models that originate and develop in the

consumer space, rather than in the enterprise

IT sector. Consumerization is not a strategy or

something to be “adopted.”

Consumerization can be embraced and it

must be dealt with, but it cannot be stopped.

Gartner IT Glossary

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ENTERPRISE SOCIAL IS AN EXPECTATION

…Not Quite There Yet

• Evidence of successful social software deployments continues

to grow, but large-scale, sustained improvements are still

not widespread.

• Social is not a standalone feature set but increasingly an

integrated set of services providing a “social layer” across key

applications and knowledge bases.

• Like collaboration, social is increasingly tied into CRM,

BPM, HRIS, etc.

• Its benefits require behavioral changes that depend on

organizational change practices. The risk of behavior

change, culture clashes, etc. highlight the need for caution.

Gartner: Magic Quadrant for Social Software in the Workplace (2015)

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SOCIAL IS NATURAL EVOLUTION

Enterprise Social is just the latest evolution in how organizations communicate.

We can’t avoid it, and we can’t ignore it. We just have to use it wisely.

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SOCIAL SUCCESS IS A CIRCULAR JOURNEY

A circular journey that focuses on specific

cases – and not a big bang – is essential

to successfully working social.

Change management work in

governance, use case definition, planning

for communication and training activity,

and the creation of an internal change

champion network to foster continued

success and self-sustaining engagement

in the enterprise social arena.

Consumerization angle: “Communicate with

colleagues like I do with my friends.”

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“MOBILE FIRST” MEANS “ACCESS ANYWHERE”

• Mobile devices surpassed PCs in

January 2014 and haven’t looked back

• The ubiquity of mobile form factors

means more companies going to a

“mobile first” strategy – especially for

workers in the field

• These workers expect a full-fidelity

user experience with their device of

choice: communications, content, data,

and security

• Where mobile isn’t first, it’s second…

Chart: comScore

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RESPONSIVE DESIGN IS A MUST

• Intranet portals aren’t going away

but they are evolving to meet the

needs of modern users – and that

means mobile

• Portals that fail to provide

responsive design have become

unheard-of because they no longer

serve the needs of an increasingly

mobile workforce

Every intranet portal built by Perficient* in 2015

has included a responsive requirement.

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CONTEXTUAL CONTENT AND NAVIGATION

• Sophisticated enterprise search engines allow for predictive content and

navigation. Enterprises are increasingly using these “search-based

applications” to provide dynamic portal experiences more in-line with consumer

web experiences.

• Consumerization angle: “Why can’t I find a file at work as easily as I find

products on Amazon?”

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PRODUCTS PROVIDING SERVICES

• Responsive design, professional UI branding, portal

CMS/publishing, enterprise social, contextual navigation

required custom services engagements until recently

• The cloud-based SaaS model is impacting traditional server

admins, systems integrators and service providers by moving

these and other services to the cloud

• Perficient’s Rise Foundation (pictured) is one product in this

space

• Consumerization angle: Stakeholders ask, “Where’s the

Weebly / Wix / Google Domains etc. for our intranet?”

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PRODUCT MODEL IMPACTS TCO

• Traditional intranet portal projects required a

large, one-time capital expenditure often

followed by an annuity for support and multiple

change orders for extensions / modifications

• Intranet SaaS products are typically licensed via

recurring subscription – allowing the majority of

costs to be operationalized and spread over time

• Some measure of the up-front savings is

typically invested in superior change

management practices which carries the

potential for better communication, adoption and

usage

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KNOWLEDGE IS POWER … BUT HOW DO YOU TAP IT?

Enterprise Social Contextual Content Stratified Systems

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KNOWLEDGE IS POWER … BUT HOW DO YOU TAP IT?

• Enterprise Social is the crowdsourcing of knowledge – capturing conversations previously

buried within phone calls and emails – and making the knowledge into a corporate asset

shared with, and discoverable by, everyone.

• Contextual Content delivers information – in the form of social conversations, emails,

documents and data – into the hands of your users within a context that makes sense to

them … their own.

• Stratified Knowledge Management is the classic approach to building an organized,

taxonomic system for storing and managing knowledge.

Combining these systems and approaches with the “folk wisdom” of enterprise social and

surfacing both types of content via contextual filtering? That’s the modern way to finally realize

valuable ROI through knowledge management initiatives.

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QUESTIONS?

Please submit your questions in

the chat box

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FOLLOW US ONLINE

• Perficient.com/SocialMedia

• Twitter.com/PRFT_Transform

• Blogs.perficient.com/digitaltransformation/

• Perficient.com/Thought-Leadership/White-Papers