Kevin Benedict Ponders the Future

Digital Transformation and Guarantees

Digital transformation is about replacing conjecture, an opinion or conclusion formed on the basis of incomplete information, with more complete information. A more complete picture is achieved by networking systems and applications together, deploying sensors, connecting fleets with telematics, mobilizing workforces, collecting online data in real-time, employing omnichannel strategies and analyzing and managing it all with an OILS (optimized information logistics systems) in real-time.

In the past most enterprises operated on a conjecture or estimate basis for much of their work, but today reducing the amount of conjecture is one of the top goals of digital transformation. With the availability of massive volumes of new data many missing pieces of the picture puzzle can now be found or replaced. Digital transformation is about recognizing pieces of the puzzle are missing, and finding ways of innovating with digital technologies to fill them in.

Digital transformation also requires that all of these networked systems, equipment and peoples be connected securely and data protected. In fact, in a recent survey we conducted of 2,000 executives across 18 countries, digital leaders reported cybersecurity was the digital technology having the biggest impact on their businesses today. Digital transformation initiatives are guaranteed to attract hackers and those with nefarious intentions. Professor Paul Virilio, a famous French cultural theorist, posited all innovations include guaranteed negative consequences. I agree. All digital transformation initiatives introduce new problems, software bugs, guaranteed network vulnerabilities, new competitors; new business challenges and new stresses. The elimination of all negative consequences and vulnerabilities are impossible, so our focus should be on limiting and containing it, not eliminating it.

Today, the retail giant Target, is recognized as an innovative digital transformation leader, but just a couple of years ago they were suffering the negative consequences of a massive customer data breach. Leadership is often synonymous with trailblazing, and trailblazing is guaranteed to have challenges. But like Target, the rewards of overcoming those challenges can be tremendous.

Digital transformation leaders should avoid the use of the word risk, as risk means a chance of something going wrong. In digital transformation there is no risk, there is a guarantee of things going wrong. The goal is to ensure that the potential benefits of digital transformation are recognized, and that the benefits outweigh the guaranteed negative consequences.

Our most recent research at Cognizant’s Center for the Future of Work reveals digital leaders, those already involved in digital transformation initiatives, report far more challenges and obstacles related to digital transformation than digital laggards, those not yet involved in digital transformation. For digital laggards, digital transformation and associated problems remain a theoretical discussion not a reality. Although theoretical, there are no excuses today for not understanding and planning for the guaranteed negative consequences, limiting them and recognizing the importance of cybersecurity.

Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Business is Not as Usual in the Age of Digital Transformation

Digital transformation typically begins as low cost POCs (proof of concepts), that evolve into mission critical corporate initiatives as positive results, consumer demands and market trends converge. Digital transformation becomes mission critical when consumers vote with their money to accept the digital replacements for physical products, services and processes.

Last month a regional retail book and entertainment chain, Hastings, filed for bankruptcy. CFO Duane Huesers blamed “a decline in the market for “physical media properties” like music, movies, books, games and media rentals.” Hastings joins chains like Blockbuster, Borders Group and Tower Records that went out of business as a result of not making the transition to digital fast enough. The strange part of this story is that Hastings never changed. Faced with overwhelming evidence, market trend data and their own sales data that showed consumers were moving to Netflix, Amazon and streaming music, they simply could not take the steps to change.

Enterprises must wake-up and transform themselves. They must jettison the heavy baggage that comes as a result of decades of institutionalized practices and methodologies developed and codified in an analog era - an era operating at a far slower operational tempo designed around the movement of physical objects. The good news is when enterprises choose to digitally transform, the ROIs (return on investments) are typically compelling. Nearly 30% of the firms we recenlty surveyed reported an ROI greater than 100%.

Where do enterprises start with digital transformation? Modern western militaries have been engaged in digital transformation for several decades now and we can learn a lot from their experiences. Their efforts involved rethinking strategies, tactics, doctrines and changing budget priorities, organizational structures, technologies and more. They recognized the need to change and become faster, agile, efficient and precise by embracing digital to succeed in their missions. They replaced mass with precision, and a reliance on physical (paper), with connected digital (mobile devices) equipment.

In the world of real-time precision introduced by mobile devices, IoT and sensors, data takes on a whole new level of importance. In fact, executives in our survey believe big data and business analytics will have the biggest business impact of all technologies on businesses from years 2020-2025. The winners in digital transformation will commit to developing in seven key areas at a pace sufficent to provide competitive advantages:

Becoming a data-centered business
Developing and implementing an OILS (optimized information logistics systems)
Achieving real-time business operational tempos
Implementing intelligent process automation using artificial intelligence and machine learning
Ensuring a shared situational awareness through the use of collaboration platforms
Utilizing real-time contextually relevant data to personalize digital experiences
Redesigning and re-architecting to become a digitally agile business

Mobile networks and devices are now ubiquitous in most regions of the world. Low costs mobile phones and service plans proliferate, and these are changing banking, commerce and global communications. They are even shaping global economies and politics. All of these activities are generating massive volumes of new data. Information is now available to people anywhere, and at anytime as long as they have connectivity to the Internet. Information can be searched for, saved in our second brains in the form of cloud storage, and monitored by our third eye, a digital eye that provides perception beyond ordinary sight in the form of alerts, news updates, notifications, tweets, messages etc., 24 hours a day. There is no such thing as business as usual in the age of digital transformation.

Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

15 Rules for Winning in Digital Transformation and the Doctrine to Match

Competitors can’t compete, and leaders can’t lead if they don’t know the rules of the game. Understanding how points are scored, and what is required to win is key to any competition. In the age of digital transformation there are key rules to learn:

Data is the modern commercial battlefield
Information dominance is the strategic goal
It takes an “Optimized Information Logistics Systems” (OILS) to compete
Advantages in speed, analytics, operational tempos and information logistics - determine the winners
Real-time operational tempos are required
Businesses that can “analyze data and act and with speed” dominate those which are slower
Advantages exponentially increase competitive advantages
Situational awareness enables innovations and operations at a lower cost and with increased efficiencies
Principal of API Acceleration & Mobility – As demand for mobile apps increases, an even greater demand for new APIs and changes across the business and IT will arise
Mobile apps provide only as much value as the systems behind them
The more data that is collected, analyzed and used, the greater the economic value and innovation opportunities it produces
Data has a shelf life, and the economic value of data diminishes quickly over time
The economic value of information multiplies when combined with context and right time delivery
The size of opponents are less representative of power today, than the quality of their sensor systems, mobile communication links and their ability to use information to their advantage
Ultimately winners will dominate by automating decision-making and executing repetitive work using robotic process automation better and faster than competitors through the implementation of artificial intelligence and machine learning

These rules not only help you understand how to compete and win, but they should also guide enterprises in their development of a digital transformation doctrine.

In a recent survey we conducted with over 2,000 executives in 18 countries, the majority of all survey participants agreed that developing a clear digital transformation strategy is a top priority. Digital transformation strategies, however, grow out of, and are shaped and guided by a digital transformation doctrine (DTD). We define doctrine as a documented way of thinking, a common frame of reference across an organization, which provides an authoritative body of statements on how the business should approach digital transformation. It provides a common lexicon for use and a framework for developing strategies. The DTD is a necessary first step before digital transformation strategies and tactics can be developed and implemented.

Digital technologies do not just enhance and extend existing processes and models, but they open doors to all kinds of new innovations, opportunities, competitors, businesses processes, strategies and even new industries. An organization’s DTD must be capable of leading them successfully through these massive and accelerating changes.

An organization’s DTD should influence all of their strategies, how they operate, and the tactics they employee to compete. In our research, we find that although most companies recognize digital transformation is happening, few have a doctrine to lead them on this chaotic journey. Without a DTD, organizations lack a unified understanding of why they are engaged in digital transformation and the role transformation plays in helping them compete successfully.

Executive teams must define how their organization should think about digital transformation. The DTD should be obvious in every program, project, campaign, product and service within the company. A sample of a DTD follows:

The digital transformation of our marketplace is changing the behaviors of our customers and the nature of our competition. We must anticipate and embrace permanent flux by employing digital technologies and strategies, and by creating a digitally agile business and a digitally transformed enterprise. We will achieve information dominance by investing appropriately to develop and maintain an optimized information logistics system. We will restructure our organizations for business agility, speed and real-time decision-making. We will develop a culture that encourages collaboration, innovation and creativity.

Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

The Latest Mobile & Digital Expert Interviews by Kevin Benedict

Go behind the scenes of the retail and fashion world with SAP and enterprise mobility expert, Kevin Benedict. In this video Kevin Benedict interviews SAP's Tim Hood GVP, Retail Strategy and Technology.

Video Link: https://www.facebook.com/HANAbySAP/videos/1179750908715401/

Learn about mobile solutions for farmers in Brazil.

Video Link: https://www.facebook.com/HANAbySAP/videos/1180359911987834/

Learn about digital transformation strategies from Microsoft's Rob Tiffany.

Mobility expert Kevin Benedict interviews Box's Chief Strategy Officer and SVP of Platforms Jeetu Patel.

Kevin Benedict's latest video on mobile commerce trends and strategies.

In this interview, Kevin Benedict interviews SAP's VP of Platform Technologies, Ken Tsai on digital transformation and machine learning.

In this interview, Kevin Benedict interviews APAC mobility expert and Kony Solutions VP of Sales Engineering, Malachy Martin on the latest trends in enterprise mobility.

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

The End Goal of Digital Transformation

Although we often write about and discuss digital transformation, we often fail to identify the end goal we are really trying to achieve. We talk at great length about data, analytics, speed, information logistics systems and personalized user experiences, but none of these are the end goal. Ultimately we must digitally transform so we can remove the “fog of war,” and have clear visibility and insights into our businesses and the needs of our customers. The end goal of digital transformation, however, is the ability to rapidly act and react to changing data, competitive conditions and strategies fastest enough to succeed.

Knowledge is nothing, if not tied to action. In a recent survey of 500 managers, they reported the number one mistake companies are making in digital transformation is moving too slow. They may have all the necessary information and strategies, but if they are incapable of acting or reacting fast enough to matter, then it is wasted. Digital transformation includes the information logistics systems capable of collecting, analyzing and reporting data fast enough to be useful, plus the ability to act and react in response.

The ability to respond, may involve transforming many different IT systems, business processes and organizational structures to facilitate business agility and speed. It will likely take a lot of work and strong leadership. This unfortunately is not always available as managers surveyed list employing the wrong leadership for digital transformation as the third biggest mistake companies make.

Is the ROI (return on investment) for digital transformation worth all the trouble? The answer is found in a recent survey we conducted involving 2,000 executives where they identified the top 5 ways digital transformations drives value generation as follows:

Accelerates speed to market
Strengthens competitive positioning
Boosts revenue growth
Raises employee productivity
Expands ability to acquire, engage and retain customers

A quick review of the top 5 show they are critical. The number one value generator is “accelerates speed to market,” in other words it enables faster actions and reactions.

Follow Kevin Benedict on Twitter @krbenedict, or read more of his articles on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

Surviving the Three Ages of Digital Transformation

When digital laggards finally recognize the degree of market disruption caused by the rapid adoption of digital technologies, and desperately try to outrun the inescapable Darwinian effect of their slow response, they will be faced with not one, but three ages of digital transformation to navigate and survive. Understanding these ages, and what is unique about each one, is critical for business strategy, prioritizing, planning, sequencing and budgeting.

Today, we live and work in the Age of Disruptive Transformation. Traditional methods of conducting business, marketing products, delivering services, and engaging customers have been dramatically disrupted by digital technologies. These disruptions were caused by the rapid consumer adoption of a new set of new digital and mobile technologies, and the resulting behavioral changes. Enterprises that fail to recognize these consumer and market disruptions, and fail to rapidly respond to them, will ultimately join a long list of companies, with familiar brands, that have filed for bankruptcy as a result of their inability to transform at the speed consumers are adopting new digital technologies and behaviors.

The Age of Hyper-Transformation transpires over the years 2016 through 2020. During this age the gap between digital laggards and leaders quickly widens into a chasm nearly impossible to leap. Often emerging technologies are subtle at first and easy to overlook. They emerge as small start-ups with interesting technologies, innovative business models and oversized ambitions. VCs and angel investors start to invest in clusters around similar technologies. Once these digital technologies take root and begin disrupting traditional businesses the velocity of their impact on businesses accelerates across the globe faster than enterprises can respond.

We are in the Age of Hyper-Transformation today, and we are already seeing the consequences on companies not able to react fast enough. These companies were blinded to early market and consumer signals, and failed to recognize market disruption until too late. These competitive oversights will be amplified during the Age of Hyper-Transformation and cause many leading companies to stumble.

The Age of Ubiquitous Transformation completes the series covering the years 2020-2025. The rate of accelerating business impact slows as digital technologies mature, business adoptions widen and become ubiquitous, and the new digital normal arrives. Robotic process automation, artificial intelligence and machine learning support the real-time digital enterprise, constantly monitoring and adjusting the business and alerting to changes in the rapidly changing competitive landscape.

The survivors of the two earlier ages of digital transformation will have adjusted their business models, sales and marketing, and supply chains to be agile, real-time, lean, all sensing and responsive to emerging technology and consumer trends. The new digital normal will embrace constant change and perpetual migration in symbiotic pace with the evolving digital consumer.

Stay tuned for my upcoming report on digital transformation, innovations and key technologies.

Read more on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

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Join the Linkedin Group Strategic Enterprise Mobility

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Digital Transformation Expert Interviews: SAP's Ken Tsai

Last week I had the privilege to speak with many different digital transformation and mobility experts at SAP's large annual user conference SAPPHIRENOW 2016. I filmed several of these interviews, and this one, with SAP's VP of Platform Technologies, Ken Tsai, is especially insightful.

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

The Impact of Digital Transformation

Digital transformation is a revenue growth engine according to fifty futurists we surveyed. Many companies are already experiencing significant benefits and gaining competitive advantages. The futurists predicted the top five impacts of digital transformation on businesses by the year 2020 will be:

Speed to market
Competitive positioning
Revenue growth
Productivity
New distribution channels

Given the importance of these top-five on revenue growth and the future success of a business, who would not want to digitally transform their enterprise? Non-believers that's who. Non-believers, aka laggards, in our study of 2,000 executives don't believe in significant digital transformation now, or in the future. They don't demonstrate a sense of urgency or a recognition of the massive changes happening around them today. They seem blind to the fact companies are witnessing an increase in revenue already from their digital transformation investments.

Digital transformation-believers aka digital leaders, however, are investing significantly more now, and receiving positive ROIs on their investments already. As a result, they plan to invest greater amounts in the future, and predict higher ROIs in the future relative to non-believers.

Based on our survey data, believers and non-believers are seeing alternative realities. Non-believers, if they don't quickly become converts, are going to face increasing challenges staying competitive and relevant against digitally transformed competitors.

When we asked mid-level managers to list the top 10 mistakes companies are making regarding digital transformation today, they listed the following in order of rank:

Moving too slowly
Lack of clear digital strategy
Company has the wrong leadership for digital transformation
Investing too little in new technology
Not focusing enough on cyber-security
Culture that discourages innovation
Lack organizational structures to drive digital transformation
Ignoring fresh thinking from external sources
Not educating the entire organization on digital transformation
Neglecting to hire the right digital talent

This list describes the actions or non-actions we are seeing from non-believing companies.

Let's pull all our findings together and review once again:

Futurists see digital transformation as a revenue growth engine
Believers are already reporting positive ROIs, and as a result, plan even higher levels of investment and revenues in the future.
Non-believers are investing little today, seeing little ROI, and are planning relatively little investment in digital transformation in the future.
Mid-level managers report the biggest challenges are moving too slowly, a lack of a clear strategy, wrong leadership and too little investment in new technologies.
The revenue gap between what believers and non-believers predict in the future as a result of digital transformation is significant across all industries. Survey participants believe the bulk of the revenue gains will be achieved by the year 2020, with incremental gains continuing thereafter. That is only 3.5 years from now. Yikes! That reflects a view that more revenue is available now for fast movers. It also suggests a realization that a lot of work needs done quickly. Non-believers, because of inaction and/or a lack of investment, seem likely to miss out on these early revenue gains and will suffer competitively.

Businesses must invest the time and effort now to understand the impact of digital transformation on their industry, market and company. Once there is situational awareness achieved and a clear vision articulated, a digital transformation doctrine needs to be developed and socialized so strategies can be developed to achieve the vision set forth in the doctrine. What technologies should believers invest in over the next 3.5 years to achieve digital transformation? In the opinions of over 2,000 survey participants the largest business impacts will come from the following technologies:

Big data/business analytics
Cyber-security
Cloud
Collaboration technologies
Mobile technologies
IoT/sensors
Artificial intelligence
Digital currency
Sharing economy
Social Media

When asked for year 2025 predictions, survey participates anticipate a similar list, but with even higher business impacts from each.

It is interesting that core systems like ERPs, CRMs, HCMs and SCMs were not identified as driving high business impact. I am wondering if companies still view digital transformation as "add-on" technology? In my view, a business' ability to convert from "human-time" to "digital-time" and operate at a real-time operational tempo requires digital transformation across the entire ILS (information logistics system). The ILS is the master or umbrella system that manages and processes data across the entire organization to optimize business performance and customer interactions. This ILS system includes all the core systems that today, often involve legacy systems incapable of supporting the new world of digital-time. It is my analysis that many companies will ultimately be required to replace legacy core systems in order to accomplish true digital transformation.

If you find yourself sitting in IT and business meetings every week listening to how existing legacy IT systems will not permit new business processes, new business services, new business models and new innovations required to compete and win, then you should recognize those are red flags and things can get ugly, quickly.

When the New Year's ball drops at midnight and year 2020 comes around, will you be found among the believers? Stay tuned for my new report on digital transformation technologies and strategies.

Read more on digital transformation strategies here:

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

View my profile on LinkedIn

Follow me on Twitter @krbenedict

Subscribe to Kevin'sYouTube Channel

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

Forces Driving the Digital Transformation Era

The words “digital transformation” appear everywhere today. I use them in discussions daily. They describe the era we live in - an era where the rules of business, strategies and the pace of business have changed. In this era the manner in which we operate our businesses, and interact with our customers, suppliers, employees, partners and even physical objects have changed. This new era is different. We feel urgency for more information, deeper insights, faster operational tempos and business agility. We recognize a need for change, but to what?

I propose that it is important to understand how we got to the era of digital transformation. What path led us here? What are the contributing factors? For that purpose, let’s begin by considering how we moved over the past decade from a commercial environment full of disconnected unknowns, to the world of connected knowns. How we evolved from mass markets of faceless customers to precision markets of one. How did we get here today? I posit that rapid advances in six areas have converged to create the era of digital transformation:

I propose that it is important to understand how we got to the era of digital transformation. What path led us here? What are the contributing factors? For that purpose, let’s begin by considering how we moved over the past decade from a commercial environment full of disconnected unknowns, to the world of connected knowns today. How did we get here? I posit that rapid advances in six areas have converged to create the era of digital transformation:

Hardware
Software
Networks (cables, wireless and human)
Societal and industry comprehension
Democratization of technology at scale (low costs & mass adoption)
Moving beyond human time to digital time

The evolutionary path to digital transformation followed a timeline that included the invention and development of the following[1]:

Computers & Moore’s Law
Memory and data storage
Mass adoption of PCs and laptops
Local Networks
ERPs
The internet
Mobile networks and mobile phones
GPS
Mass global adoption of wireless devices (laptops, mobile phones, tablets, smartphones, wearables, sensors)
Proliferation of websites and online activity
Rapid adoption and expansion of online and mobile databases and search
Rapid adoption and expansion of online marketplaces and reviews
Rapid adoption of online and now mobile payments
The transformation from physical to digital (think retail stores to e-commerce, and now m-commerce)
Move from paper documents to digits
Rapid expansion of embedded computers
Rapid adoption and proliferation of mobile apps and the mobile web
Online gaming
Rapid transformation from traditional marketing to digital and mobile marketing
Rapid addition of smartphone enabled sensors
Rapid evolution and adoption of online social networks, social media sites and content sharing
Online classified sites (e.g. Craig’s List)
Rapid emergence of the sharing economy (e.g. Airbnb, Uber, etc.)
Rapid adoption of online education services
Rapid adoption and expansion of online entertainment movies, TV programs and streaming music
Wearables
Cloud computing
Rapid emergence of cloud based platforms for everything
Internet of Things
Industrial Internet (telematics, smart grids)
Proliferation of analytics and reporting
Mobile wallets
Development of advanced algorithms
Artificial intelligence and machine learning
Augmented reality
Robotic process automation

All of these innovations and advances, and our adoption of them, changed us. We are different consumers. We are different employers and employees. Our expectations increased. We became impatient and mobile. We became global. We demand immediate, accurate and real-time responses. We want personalized and contextually relevant experiences. We want digital experiences that are beautiful, simple and elegant. We want instant access to all products, services, news, information and friends’ status. We want to share our lives instantly and globally. We want to find things, buy things, move money and complete transactions from anywhere at anytime.

All of these innovations and our resulting behavioral changes – changed commercial marketplaces and brought us to the tipping point. Definition of tipping point: the point at which a series of small changes or incidents becomes significant enough to cause a larger, more drastic change. That drastic change today is – digital transformation.

Read more on digital transformation strategies here:

[1] Not a definitive list

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

Kevin Benedict Ponders the Future

Digital Transformation and Guarantees

Business is Not as Usual in the Age of Digital Transformation

15 Rules for Winning in Digital Transformation and the Doctrine to Match

The Latest Mobile & Digital Expert Interviews by Kevin Benedict

The End Goal of Digital Transformation

Surviving the Three Ages of Digital Transformation

Digital Transformation Expert Interviews: SAP's Ken Tsai

The Impact of Digital Transformation

Forces Driving the Digital Transformation Era

Interviews with Kevin Benedict

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