Transcription
Digital Transformation –How to Become Digital LeaderStudy 2015 - ResultsArthur D. Littlewww.adlittle.com
Table of Contents1Executive Summary2Deep Dive3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 20152
Executive Summary – Study OverviewArthur D. Little conducted the Digital Transformation Study globally and cross-industry.The key findings are summarized in this document.120 hrsExpert interviews withmanagement representatives1 7Sections havebeen assessedAutomotive100 7Global playershave participatedMajor industry clustershave been coveredTelecom & MediaEnergy & UtilitiesConsumer & Life ScienceFinancial InstitutionsEPC1 & ManufacturingTravel & TransportSource: Arthur D. Little Digital Transformation Study 20151) EPC Engineering, Procurement & Construction3
Executive Summary – Randomly Selected ParticipantsThe Arthur D. Little Digital Transformation study covers leading companies across all industrysegments Source: Arthur D. Little Digital Transformation Study 20154
Executive Summary – Study OverviewTurning Digital has become a well understood imperative. Whilst Digital has commonly foundits way into corporate strategies, the path to transform adequately remains unspecifiedsurveyed companies are80% ofdigitaladaptive only17%Progress in Digital Transformation ismeasured via the Digital TransformationIndex (DTI)13.92 DTI15%50%of companies have comprehensive digitaltransformation strategies in placehave dedicated central units for Digitalstrategy development and implementationperceive lack of digital knowledge across thevalue chain as their major challenge to overcomeSource: Arthur D. Little Digital Transformation Study 20151 Logic: The higher, the better. Measured on a scale from 0 to 105
Executive Summary – Why Digital Transformation?Digital Transformation is everywhere and impacts everything and everyoneOur biggest challenge is tounderstand the customer andhis newbehaviors.The market is changing:Clients are pushing ustowards digital transformation: Ifwe don't transform they will moveto our competitors.partners are becoming competitors.Products and services need toundergo a digital transformation: wecannot just take physicalproducts and put them online.Productivity related to newtechnologies such as cobots,predictive analytics and additivemanufacturing will increase by afactor of 100 over the next 5–8 years,while costs will be reduced by afactor of 100.New entrants and fast-movingcompetitors increasingly capturedigital opportunities,indicating the potential of “digital” inthe market.Our world has been changed by theexpectations of our customers, while ourbasic service continues to be the same:We need to transform in order tomaintain customer satisfaction.Source: Arthur D. Little Digital Transformation Study 20156
Executive Summary – Study OverviewSome of the below key findings we anticipated beforehand, whereas others have beensurprising and astonishing1. Digitization will change the competitive environment of all industries significantly2. Most industries are already affected by digital disruption or realize that they will be soon3. Few companies yet follow a consistent digitization approach for their whole business model4. Companies underestimate opportunities in Operations and in Business Model Redesign5. There is a huge demand and backlog for the majority to deal with “Digital” properly6. No industry can claim to be a digital front-runner; however, each industry has its outperformers7. Most companies are either not aware of or ignore potential threats from digital disruptors18. Companies are too slow in transformation, though facing rapidly evolving digital competition9. Third-party integration is often underrated as companies still try to solve problems on their own10. The usage of “smart data”, and thus also personalized offerings, lag behindSource: Arthur D. Little Digital Transformation Study 20151 Also too little imagination for a renewal resp. overhaul of their business model in a future digital world7
Executive Summary – TrendsSome major digital trends change yesterday’s realities – these “game changers” facilitategreat opportunities and will inevitably generate some highly digitized championsYesterday’s RealitiesDigital DisruptionDigital TrendsAutomotivePhysical productConsumptionPoints of usageMass productionOwnershipTelecom & MediaProduct-as-a-serviceActive creationConsumer& Life ScienceEnergy& UtilitiesService everywhere100 StudyParticipantsPersonalizationShared across communityTravel& TransportEPC1& ManufacturingDisconnectedEmbedded into ecosystemFinancialInstitutionsNo updatesContinuous improvementVertical integrationValue chain disintegrationSource: Arthur D. Little Digital Transformation Study 20151 EPC Engineering, Procurement & Construction8
Executive Summary – Trends Impact on IndustriesProminent examples of digitalization can be found in every industry. By nature, each trend’simpact varies and so does the industry-specific progress on digital transformationIndustriesAutomotiveTelecom& MediaEnergy& UtilitiesConsumer& Life ScienceFinancialInstitutionsEPC1& ManufacturingTravel& Transport8 Digital tive creationHybridAdvisoryModelService aringShared across communitySmartHomeAppl.Embedded into ecosystemContinuous improvementWifi SWUpgradefor CarValue chain AlibabaSource: Arthur D. Little Digital Transformation Study 20151 EPC Engineering, Procurement & Construction9
Executive Summary – Overview “Digital Transformation Framework”The survey followed a holistic approach to analyze the relevant sections for digitalization; thequestions raised have been mapped to these sections Opportunities and challenges Changes in the firm Changes in competitiveenvironmentDrivers & Challenges Digital client share Share of digital sales andinteraction Digital marketing share,customer data analyticsAStrategy & Governance Maturity of digital strategy KPIs on Digital approach Roles and responsibilities forconcept and implementation Product and service portfolioadaption Share of digital sales Changes in development process Maturity of digital operations Target picture andtransformation roadmap Degree of dynamic adaptionBProducts& ServicesCCustomerManagement Flexibility of IT landscape toprovide digital capabilities Role of IT function indigitalization Budget dedicated to digitalF Information TechnologyDOperations& Supply ChainGCorporate EServices& ControlWorkplace & CultureBusiness Model Impact of digital ontransparency Maturity of digital supportprocesses Maturity of communication andcollaboration Mobility Agile working methodsSource: Arthur D. Little Digital Transformation Study 201510
Executive Summary – Cross-Industry DTIThe Arthur D. Little Digital Transformation Index (DTI) shows that today few firms can beconsidered “digital oriented” or “digital centric”Digital Transformation Index (DTI)110Digital centric9[score above 7.5]87Digital oriented6[score between5 and 7.5]54Digital adaptive [score between 2.5 and 5.0]102 100 98 96 94 92 90 88 86 84 82 80 78 76 74 72 70 68 66 64 62 60 58 56 54 52103 101 99 97 95 93 91 89 87 85 83 81 79 77 75 73 71 69 67 65 63 61 59 57 55 535149 47 45 43 41 39 37 35 33 31 29 27 25 23 21 19 17 15 13 11 9753150 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8642Each # represents a specific company3Average210Digital awareX-Axis Indexed at Cross-Industry Ø 3.92[score below 2.5]Y-Axis Company-Specific Deviation to ØSource: Arthur D. Little Digital Transformation Study 20151 DTI calculated as average of scores for each section11
Executive Summary – Cross-Industry DTI per SectionsAverage DTI is most advanced in the section “Strategy & Governance” as well as “InformationTechnology”, with a score of 5 – however, it still lags behind the virtual star performanceDigital Transformation Index (DTI) per SectionStrategy &GovernanceProducts& ServicesWorkplace& CultureInformationTechnologiesCorporate Services& Control Cross-Industry Virtual Star12345678910CustomerManagementOperations& Supply Chain Cross-Industry AverageSource: Arthur D. Little Digital Transformation Study 201512
Executive Summary – Case ExamplesWe collected many best practices for each section to share with youAStrategy &GovernanceBProducts& ServicesCyber-PhysicalProductNike x-functionalDigital SportsDivisionService withPeer-to-PeerComponentCoca Cola“Co-Founders”NetworkDOperations& Supply ChainECorporateServices& Controladidas SpeedfactoryIn-Store ProductionCoca ColaBrand DashboardVision Pickingusing AugmentedRealityDigital BusinessLaunch FactoryCold ChainQualityManagementCloud-BasedProject StaffingSBB ologyEuropeanTelcoLayered IT Architecturefor Quick ProcessImplementationCCustomerManagementBurberry IntegratedCustomer ExperienceReal-Time DynamicPricing for ProfitMaximizationQuicksilver PersonalPricing & RewardsG Workplace &CultureGamification inProject-based/KnowledgeEnvironmentICT to SupportIndustry 4.0Source: Arthur D. Little Digital Transformation Study 201513
Executive Summary – DTI Views per IndustryThe different progresses of industries in Digital Transformation can be investigated whenlooking at the radar charts, reflecting the 7 sections of the modelCross-industryAutomotive IndustryTelecom & Media IndustryEnergy & Utilities IndustryØ 3.92Ø 5.02Ø 4.20Ø 4.11Financial InstitutionsConsumer & Life ScienceEPC1 & ManufacturingTravel & TransportØ 3.86Ø 3.71Ø 3.53Ø 3.51Source: Arthur D. Little Digital Transformation Study 20151) EPC Engineering, Procurement & Construction (Cross-) Industry Virtual Star Cross-industry average Industry average14
Executive Summary – Average DTI per IndustryOn average, all industries are “digital adaptive” only; however, each industry contains“digital-oriented” companies, whereas two industries contain one “digital-centric” companyAverage Industry-Specific DTIAutomotiveminTelecom & MediaminEnergy & UtilitiesminOverall averageminFinancial institutionsminConsumer & Life scienceminEPC & ManufacturingminTravel & tσ 0.925.021.546.624.202.137.734.11σ 1.18σ 1.301.077.733.92σ 1.381.527.553.86σ 1.541.846.163.71σ 1.241.075.303.53σ 1.092.246.623.51σ 1.51Source: Arthur D. Little Digital Transformation Study 2015σ Standard Deviation; Ø Average On average most companies( 60%) are in the Digitaladaptive area All industries are impacted byDigital Transformation and showability to play in the higher leaguesof the DTI Most industries show anextreme spread: Participantsscore among the weakest and bestat the same timeØ 3.9215
Table of Contents1Executive Summary2Deep Dive3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201516
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201517
Deep Dive – Drivers & ChallengesDrivers & Challenges OverviewKey LearningsDrivers & ChallengesStrategy & GovernanceProducts& ServicesCustomerManagementInformation TechnologyOperations& Supply ChainCorporateServices& Control Most critical challenges for Digital Transformation are 1. lackof knowledge, 2. lacking sense of urgency and 3. excessivecomplexity Consideration of the continuous increase of digital customerneeds and expectations will be key to succeeding in the futurecompetitive landscape The primary impact of the Digital Transformation is reflected inchanges in distribution channels and adaptations to existingproducts and services A prevailing number of the surveyed companies see theacquisition of new customers as a major opportunity broughtby digitalizationWorkplace & CultureBusiness ModelSource: Arthur D. Little Digital Transformation Study 201518
Deep Dive – Drivers & ChallengesMost critical challenges for Digital Transformation are 1. lack of knowledge, 2. lacking senseof urgency and 3. excessive complexityMajor Challenges for Digital TransformationAutomotive Telecom& MediaEnergy Consumer FinancialEPC && Utilities& Life Institutions ManufacScienceturingTravel &TransportShare of participants50%Lack of knowledge45%Sense of urgencyExcessivecomplexity40%39%Goal definitionLacking controlsystem32%Legal requirementsLacking financialresourcesLacking mgmt.Support27%23%23%Source: Arthur D. Little Digital Transformation Study 7666885855Numbers indicate frequency of answers among companies in given industriesHighest19
Deep Dive – Drivers & ChallengesConsideration of the continuous increase of digital customer needs and expectations will bekey to succeeding in the future competitive landscapeChanges in the Competitive Landscape due to DigitalizationAutomotiveTelecom & MediaEnergy & Utilities155833Consumer & Life ScienceFinancial InstitutionsEPC & ManufacturingTravel & Transport20642839All IndustriesExisting customers withnew needs resp. behaviorsNew competitorsNew ecosystemsExisting competitors withnew products/business modelsNew partners withinvalue chainNew customer groupsand marketsx # of quotesSource: Arthur D. Little Digital Transformation Study 201520
Deep Dive – Drivers & ChallengesThe primary impact of the Digital Transformation is reflected in changes in distributionchannels and adaptations to existing products and servicesChanges of Your Company’s Business Model due to DigitalizationAll IndustriesAutomotiveTelecom & MediaEnergy & Utilities115742Consumer & Life ScienceFinancial InstitutionsEPC & ManufacturingTravel & Transport32683240Distribution channels and CIExisting products & servicesBusiness model overhaulInternal processesNew business segmentsProduction and logisticsx # of quotesArthur D. Little perspective: Companies are underestimating potential in new business segments and operations / processesSource: Arthur D. Little Digital Transformation Study 2015CI Customer Interaction21
Deep Dive – Drivers & ChallengesA prevailing number of the surveyed companies see the acquisition of new customers as amajor opportunity brought by digitalizationMajor Opportunities in the Digital Transformation JourneyAutomotive Telecom& MediaEnergy Consumer FinancialEPC && Utilities& Life Institutions ManufacScienceturingTravel &TransportAverage rankingAcquisition of newcustomers1211153Differentiation fromcompetition5524215New sources ofrevenue2132526Increase of customerloyalty3353461Increase of agilityand flexibility4645334Cost savings6466642Arthur D. Little perspective: Companies are underestimating potential for cost improvements, agility and flexibility increaseSource: Arthur D. Little Digital Transformation Study 2015Numbers indicate frequency of answers among companies in given industriesHighest22
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201523
Deep Dive – A. Strategy & GovernanceStrategy & Governance OverviewKey LearningsDrivers & ChallengesAStrategy & GovernanceProducts& ServicesCustomerManagementInformation TechnologyOperations& Supply ChainCorporateServices& Control In most cases, CxOs govern both strategy development andimplementation for the Digital Transformation – the topic hasdefinitely arrived at the top of their agenda A cross-functional digital governance unit on corporate levelcan ensure cross-functional digitalization of the End-toEnd value chain Across all industries, the levers “hiring digital talent” and“training and further education” dominate when it comes tocapability building effort in all industries Going beyond “corporate borders” allows for matchingexperienced entrepreneurs with corporate resources, e.g. ondedicated venturing platformsWorkplace & CultureBusiness ModelSource: Arthur D. Little Digital Transformation Study 201524
Deep Dive – A. Strategy & GovernanceIn most cases, CxOs govern both strategy development and implementation for the DigitalTransformation – the topic has definitely arrived at the top of their agendaDigital Strategy Development & ImplementationTop managementDedicated central unitSeveral departmentsNo specific unitTop managementNo dedicatedresponsibilitiesCentral UnitDep #1 is/are responsible for developingthe Digital StrategyDep #2Dep #3Dep steer(s) the implementation ofthe Digital StrategyNo specific unitNo specific unit14%14%45% Top managementSeveral departments 17%59%Several departments 26%Top management9%Dedicated central unit15%Dedicated central unitSource: Arthur D. Little Digital Transformation Study 201525
Deep Dive – A. Strategy & GovernanceAcross all industries, the levers “training and further education” and “hiring digital talents”dominate when it comes to capability building effort in all industriesMeasures Applied to Catalyze the Digital TransformationAutomotive Telecom& MediaEnergy Consumer FinancialEPC && Utilities& Life Institutions ManufacScienceturingTravel &TransportShare of participantsTraining and furthereducation53%Hiring Digital talents51%Strategic alliancesw/ digital co.44%Own corp. incubator/accelarator31%Acquisition ofdigital co.VC arm/ capitalprovision for incub.11%5%Source: Arthur D. Little Digital Transformation Study ers indicate frequency of answers among companies in given industriesHighest26
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201527
Deep Dive – B. Products & ServicesProducts & Services OverviewKey LearningsDrivers & Challenges Most companies have neither agilized nor digitized theirproduct and service portfoliosStrategy & GovernanceBProducts& ServicesCustomerManagementInformation TechnologyOperations& Supply ChainCorporateServices& Control The majority of companies only involve their customers in theproduct development process occasionally – industry leaderstypically involve their customers It is worthwhile to experiment with the smartization of classic“Brick & Mortar” business – in order to protect core businessand increase attraction For digitized products, the user experience can be enhancedthrough remote SW-upgrades and data collection toautomatically inform on repair and service requirements Introduction of products and services with peer-to-peercomponents can increase competitiveness and growth ofcustomer baseWorkplace & CultureBusiness ModelSource: Arthur D. Little Digital Transformation Study 201528
Deep Dive – B. Products & ServicesMost companies have neither agilized nor digitized their product and service portfoliosAgilization in P&S Development vs. P&S Digitization Telecom & MediaEnergy & UtilitiesConsumer &Life ScienceFinancialInstitutionsEPC &ManufacturingFulladaptationNeed for changes inproductdevelopment processDigitization13In full movementMajor211142Simple63312More effortrequired–AutomotiveNoadaptation62Need for adaptation ofproducts & service portfolio62Travel & TransportNo changesplanned–Selective processaccelerationSource: Arthur D. Little Digital Transformation Study 2015Agilization ofdevelopmentAgilizationFull agilization ofdevelopment Bubble size reflects no of companies29
Deep Dive – B. Products & ServicesThe majority of companies only involve their customers in the product development processoccasionally – industry leaders typically involve their customersCustomer Involvement in Product DevelopmentAutomotive Telecom& MediaEnergy Consumer FinancialEPC && Utilities& Life Institutions ManufacScienceturingTravel &TransportShare of participantsOccasionalinvolvement58%No involvementof %3%Source: Arthur D. Little Digital Transformation Study 13%17%24%18%8%09%7%0%0%0%0%Numbers indicate frequency of answers among companies in given industriesHighest30
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201531
Deep Dive – C. Customer ManagementOverview Customer ManagementKey LearningsDrivers & Challenges Despite a diverse understanding of the nature of the “digitalcustomer”, companies expect a significant increase in theshare of digital customers within the next 3 yearsStrategy & GovernanceProducts& ServicesCCustomerManagementInformation TechnologyOperations& Supply ChainCorporateServices& ControlWorkplace & CultureBusiness ModelSource: Arthur D. Little Digital Transformation Study 2015 The share of customer interactions through digital customerservice is constantly growing – great opportunities lie ahead Digital technology can be leveraged to transform fromwholesale to a retail-led growth strategy based on an integratedcustomer experience across all channels Current low share of digital marketing expenditure correlateswith a low share of digital channel sales – both are mostly stillbelow 25%, but predicted to grow There is still huge potential for many companies to captureclient information from digital interactions and increase thebenefit for better business decisions Real-time dynamic pricing can be used to optimize revenuesby driving in an average profit boost of ca. 25% Integrated solutions with sophisticated analytics are meanwhile available across the customer journey and history32
Deep Dive – C. Customer ManagementDespite a diverse understanding of the nature of the “digital customer”, companies expect asignificant increase in the share of digital customers within the next 3 yearsShare of ‘Digital’ Customers1Companies Consider Customers ‘Digital’ if they use self-serviceand paperlesscommunication100% they are attractedand treated onlineBelow 10%90%80% they are steered andserved through digitalchannels10 to 20%70% they use the internetto consume content60%50% they use digitalhardware and mediaBelow 10% they manage keyprocesses digitally40%30%20 to 30%10 to 20%20 to 30%30 to 50%30 to 50%20% the customer’slifecycle happens in adigital environmentAbove 50%10%Above 50%0%TodayIn 3 yearsSource: Arthur D. Little Digital Transformation Study 20151 Related to a company‘s total customer base; sums may not add up as some participants have voted for n/a33
Deep Dive – C. Customer ManagementThe share of customer interactions through digital customer service is constantly growing –great opportunities lie aheadCurrent situation in respective industriesDigitalization of Customer Service InteractionAll industriesAutomotive Telecom& MediaEnergy Consumer FinancialEPC && Utilities& Life Institutions ManufacScienceturingTravel &Transport100%Below 10%90%80%Below %40%25%0%9%17%0%11%20%15%21%9%12%0%19%Up to 25%Below 10%50%Up to 25%40%Up to 50%30%20%10%0%Up to 25%Up to 50%Above 50%Up to 50%Above 50%Above 50%3 years agoTodayIn 3 yearsSource: Arthur D. Little Digital Transformation Study 2015%Percentage share of companies by given answer in respective industries34
Deep Dive – C. Customer ManagementCurrent low share of digital marketing expenditure correlates with a low share of digitalchannel sales – both are mostly still below 25%, but predicted to grow –Share of marketing expenses fordigital channelsImpact of Digital Marketing Expenditure on Digital Channel SalesAutomotiveTelecom & MediaEnergy & UtilitiesConsumer &Life ScienceFinancialInstitutionsEPC &ManufacturingUtilization Collection13 50%High effort,still low impactFuture Equilibrium325–50%12010–25%133To be improvedarea39 10%1Low effort, high impact62Travel & Transport 10%–10–25%25–50%Share of sales through digital channelsSource: Arthur D. Little Digital Transformation Study 2015 50% Bubble size reflects no. of companies35
Deep Dive – C. Customer ManagementThere is still huge potential for many companies to capture client information from digitalinteractions and increase the benefit for better business decisions –Data usage with Business AnalyticsObtaining Customer Information and Using itAutomotiveTelecom & MediaEnergy & UtilitiesConsumer &Life ScienceFinancialInstitutionsEPC &ManufacturingUtilization 3(i.e.Optimize)Simple39(i.e.Facilitate)6No usage8Collection UtilizationNo collection–LimitedAdvancedTotal(i.e. Transactional)(i.e. Informational)(i.e. Client needs)Data collection from digital interactionSource: Arthur D. Little Digital Transformation Study 2015 Travel & Transport Bubble size reflects no of companies36
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201537
Deep Dive – D. Operations & Supply ChainOverview Operations & Supply ChainKey LearningsDrivers & ChallengesStrategy & GovernanceProducts& ServicesCustomerManagementInformation TechnologyDOperations& Supply ChainCorporateServices& Control 70% of the participants have no clear view and perspectives ontrends and the impact of new digital technologies on theirOperations & Supply Chain Most companies underestimate radical innovationcapabilities and full digitalization of technologicalcomponents in Operations & Supply Chain Leading Companies have a clear understanding of how digitaland new technologies will impact Operations & Supply Chainand have set up a process for rapid deployment Prototypes already allow for de-central in-store and just-intime productions, i.e. customized products with individualcolors, sizes, etc. with a few minutes’ delivery time Tests of Augmented Reality in warehousing resulted insignificant efficiency increases and reductions in errorsWorkplace & CultureBusiness Model Cloud-based Machine-to-Machine (M2M) solution and RFIDbased asset tracking solution can help ensure product qualitySource: Arthur D. Little Digital Transformation Study 201538
Deep Dive – D. Operations & Supply Chain70% of the participants have no clear view and perspectives on trends and the impact of newdigital technologies on their Operations & Supply ChainsTarget Picture & Transformation RoadmapLeverage of Technologies & Digital MethodsShare of participantsShare of participantsContinuous andincremental optimizationCurrent work on Digitalagenda and roadmap44%Clear view on trends andindustry impacts (5-10 yrs)Target picture and roadmapfor E2E operations (5-10 yrs)Focus on well establishedtechnologies and processes25%26%5%12%Increase of digitalizationis planned52%Performance already highand on peer-levelCompetitive advantagethrough state-of-the art24%12%Source: Arthur D. Little Digital Transformation Study 201539
Deep Dive – D. Operations & Supply ChainLeading Companies have a clear understanding of how digital and new technologies willimpact Operations & Supply Chain and have set up a process for rapid deployment Best PracticeStrategic plan for Innovating OperationsDescription A manufacturing company hasdeveloped a 10-year vision abouttechnology usage in operations &supply chain A self-financing project pipeline fordeployment is set up and will befrequently updated to extendcoverage and to leverage newtechnology opportunities Partner-Networks have been set upfor mission-critical technologies andapplications to create competitiveadvantagesImplications & Benefits Cost improvement potential above20% in relation to value add Higher customer and staffsatisfactionSource: Arthur D. Little Digital Transformation Study 2015, Company Information40
Table of Contents1Executive Summary2Deep DiveDrivers & ChallengesA. Strategy & GovernanceB. Products & ServicesC. Customer ManagementD. Operations & Supply ChainE. Corporate Services & ControlF. Information TechnologyG. Workplace & Culture3Appendix (DTI per industry)Source: Arthur D. Little Digital Transformation Study 201541
Deep Dive – E. Corporate Services & ControlOverview Corporate Services & ControlKey LearningsDrivers & ChallengesStrategy & GovernanceProducts& ServicesCustomerManagementInformation TechnologyOperations& Supply ChainCorporate EServices& Control Participants expect their companies to heavily invest inadvanced digital solutions to create transparency andcomprehensive controlling Companies plan to utilize complex digital solutions tosupport and automate their processes Brand dashboards can integrate Web Analytics, CRM andshare of voice at a single glance Highly standardized and thus professionalized “launchfactory” approach can be seen as starting point for masteringexecution A cloud-based HR model can foster high employeeperformance and efficient global staffingWorkplace & CultureBusiness ModelSource: Arthur D. Little Digital Transformation Study 201542
Deep Dive – E. Corporate Services & ControlParticipants expect their companies to heavily invest in advanced digital solutions to createtransparency and comprehensive co
Digital client share Share of digital sales and interaction Digital marketing share, customer data analytics provide digital capabilities Role of IT function in digitalization Budget dedicated to digital Impact of digital on transparency Maturity of digital suppor
