Empower your Planning with digital transformation sales for Planning

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welcome everybody to the next session today the digital transformation action plan very pleased to see you all here I'm Justin von Braun digital transformation lead with in CA technologies and I'll be the panel host for the session today but I'm not the real star of today we have three experts in digital transformation I'm very very pleased to introduce from the left ear Chris Rohit who heads up our DevOps Technical Sales globally who's had huge experience of working with customers around the world and helping them accelerate application development ray Wang CEO of constellation research a digital transformation guru who's written several books on the topic has over 70,000 Twitter followers delighted to have Ray here today and lastly Joel Amano partner at PwC and a gentleman who has extensive experience in e-commerce and will recently now heads up or leaves a part of the PwC digital transformation team so without further ado I guess the key question is why are we even here why are we talking about digital transformation it's because we all need to change and there's an imperative around that so a little data point for you which I've stolen from Ray which I keep stealing but it's a great one which is that since the year 2000 over half of the fortune 500 are just no longer around they've disappeared for multiple reasons so familiar household names that we all know I won't name them but you can assure you you you are aware of those have all gone because of the impact that Digital has made and some other data points here from a guy who's a senior lecturer at Yale University here the average lifespan of an SMP company has dropped from a multi-generational 67 years tried and trusted you know we use that company in my grandmother used that my grandfather my parents I'll use that company well now the average lifespan is dropped from sixty seven years in the 1920s to just fifteen years today we all know what we were doing 15 years ago on average and SMP company is now being replaced every two weeks that's the velocity of change that we're dealing with and lastly 75% of the SMP 500 will be replaced by new firms by 2027 so that's from Richard foster you clever guy he's at Yale he must be smart but I think a lot of the data points that he has there are very very valid so without further ado I'd like to kick off with the first question to our panel where does the digital transformation journey begin where does it start and I'd like to us at array first of all okay hi everyone so what we're seeing in the market place and your poly filling this is that in digital transformation at the top it's a business model shift and to business model change and to summarize that in a very quick way think about the world as a post sale on demand attention economy post sale meaning everything after the sale is as important or more important than the sale so think about installation service warranties that continual renewal process that's actually happening and when we talk about on-demand think about the fact that people don't buy big sets of product services experiences or insights anymore they're consuming smaller and smaller chunks of that so you don't go out and buy a server anymore you go to the cloud right and that's a great example there and it's also an attention economy because if I don't capture your touch I don't capture your attention or save you time you're not relevant to me and this is happening not just in b2c it's happening in b2b across different places great answer thanks right I know Chris I mean you've been close to involve with many customers over the last four plus years at ca what kind of insights can you share so I think there is a real drive in the market mainly you know we used to change because we wanted to gain competitive advantage all we wanted to move into a new market but it was a business strategy that started internally and now we're being forced through the application economy to respond in brand-new ways through brand new channels what our customers are demanding whether we want to or not so it's it's it's the do or die you know from from the stats we stole earlier you know if we if we don't do these things it's not just the you know we're struggling in the market we're no longer relevant you don't exist em you don't exist anymore so it's really the focus to say we're on a digital transformation journey not because we want to but because we must to survive so yes we have to get started but we need to rapidly think how do we evolve through that journey as fast as possible to continue to live a compelling business outcome great great and to that point so we've established you need to do something but Joe what are the common misconceptions that you find amongst clients when you feel yeah we need to get going but they start from the wrong point of view okay I think the biggest misconception that we see is companies thinking that they just need a digital strategy right I need ecommerce I need a mobile app and they don't really step back and look at their overarching business strategy and think about is it applicable to the digital age is it available to this on-demand world that we're living in today right so don't don't regard it in isolation at all is it a bolt-on it has to be something for far more fundamental and basic integra chol that's right because it's not just about the digital but it's also about the operations that are needed to support it it's about the technology as well and it's about the customer experience also that is actually a great segue to to our next question here which is how do you achieve true customer centricity and I'll come back to you Joe because in it in some of our conversations before around this event you had a very strong in a conviction that it isn't just about technology it's something far more profound that's right you know technology is is very important it enables all this great innovation that we're seeing today but we think it's very important that companies first think about the customer experience and really think about or look at that outside in perspective identify those capabilities those wants and needs that your customers have so that then you can take that information you can take those capabilities and build out the technology and the supporting operations to deliver and right from your point of view which organizations or companies are doing this well that have a really good view of the whole customer journey and are capturing those integral components oh we seal out that in hospitality we see a lot of that and financial services as they're making a shift I have to be very careful about the clients that I've got you about but there are three principles and I'm gonna start real quick like how remember choose your own adventure books where we start on page one go to page 15 go to page 100 come back to Tony so so the companies that get it they start with choose-your-own-adventure journeys because you don't fit into force fit funnels or force for this customer journeys people want to go be self-directed and so you start with that piece the second thing that they do really well is they look at context and contacts think about role relationship location temperature and we got heart rate right oh that's an interesting indicator sentiment um and so we start pulling those pieces together and then the third thing that actually happens is these companies are focused on intention driven design and what I mean by intention driven is it's not about knowing what happened in the past it's about learning over time what you're going to do next and so I don't know does anybody here get coffee in the morning at the same time and buy coffee okay I'm gonna pick on you real quick sorry about this I'm gonna pick on you when you get coffee what time 6:00 Dunkin or Starbucks none of them so you buy your own coffee at a different place of boutique ok so we know that about her but when traveling would you go to Dunkin or Starbucks sometimes right and that's the thing that we learned so over time imagine like 20 more interactions we learned that you might get coffee you might get coffee with food if you're traveling you do something different and that's how we build these journeys and so the customer the company that are doing customer experience really well yeah I figured out how to build these types of journeys and they've done a great job of actually making that self-directed contextual and also intention driven that rather than forcing a customer to their fixed view of what the journey should be exactly great and Chris I mean take the flip side what examples have you seen of customers who've been doing great things you know I mean it's it's a great question but I'm going to duck it and the reason I'm gonna duck it is because everybody is on this journey right now where we still we started saying there's an imperative for a digital transformation we said it's do or die yeah I'm said you have to go on this journey to be relevant you compelling stats about how long companies survive these days so everyone's on this journey everybody here is here because they're in the app economy they're thinking about these problems and they're wondering how they start and what that maturity curve looks like as they go through it to maintain that outstanding customer experience to be able to support the customer stories and convert them into revenue streams so we're talking here but we've got you know more than 15 customers over this conference talking about where they are on that journey what they've done whether that's ing whether that t-mobile you know please go to those talk to the speakers afterwards and understand where they are on the journey because they're all doing incredible things and we all have to do incredible things if we still want to be around relevant great good thanks very much our next question that moves more kind of potentially kind of inwardly focus in terms of looking at digital transformation what operational efficiencies should you prioritize Rea any thoughts yeah actually so if you remember Maslow's hierarchy of needs I really keep me safe keep me sheltered worry about my ego we look at the same way from a business perspective mm-hmm so at the very bottom is like regulatory compliance like don't get me sued don't get me fired don't get me killed right the next level up is operational efficiency for every dollar invest I'm going to save you to three or four that's stuff on the bottom of the pyramid that's what you want to operationalize that's the stuff you want on robots you want automation you want you want you want you want to mechanize as much of that as possible the higher level things revenue and growth we're just thinking about for every dollar invested to or three strategic differentiation which is really your business model shift and then the brand right if your company was a person who would they be or really why why do you exist that's stuff that's the important part the problem is we actually form as companies we focus our efforts our resources our time on this pyramid so when push comes to shove regulatory compliance wins operational efficiency wins what we want to do is flip the pyramid and so we can focus more on time on the brand why we exist what probably trying to solve and and how does that tie back to our business model so that we can think about products and services that support that a problem is if you don't flip the pyramid you shrink your weight way to greatness which is what most companies do is they focused on margin as opposed to growth if you're a growth oriented company you figure out how to flip the pyramid and you start automating that stuff with cloud you get all your testing you get all your app dev you do your DevOps so well that you can start focusing on your mission and that's really a short way of answering that all right do you see huge cultural challenges and flipping that it's very hard if you got a lot of inertia if you got all existing teams that are doing things it's very hard to do that think about the first time you went to agile or scrum that's really hard right because you know waterfall is great people aren't in your face they're not bothering you you actually have time to think right then you switch flip over to like scrum and agile what happens right you know like constantly on Sprint's you're doing check-ins your stand and it's like how right but if you need to move fast and you need velocity you have to do that and so that's the same kind of shift we're seeing you're seeing multimodal teams not by my boat oh by modal's kind of doesn't work you it depends on the prioritization of where you are and then they would make the flip against that right thanks and Chris I mean where should companies who is seeking to make those improvements kind of address issues around say the way they build tests and release applications well for me that that's the engine room right so so absolutely as a company you need to think about you know your organizational structure and your people and processes and you need to be adopting agile but then you need the engine room in the software development lifecycle because the way we survive in this market is by improving the cadence and quality that we can bring innovation to outstanding customer experience so that's around continuous delivery that's around building that engine room in this in you know and reinventing our software lifecycle to become an automated engine to promote outstanding innovation at high speed so you have to be thinking about what that strategy is you have to be thinking in parallel with the agile transformation that you're not just doing in IT you're doing to your business how can you then put in that accelerated factory floor that's going to take the code at high quality through that pipeline and bring it in a stable fashion into your production where it can be consumed through the channels that all of our customers want to consume our goods and services through I said but it's that speed yet maintaining quality and that's always a challenge to maintain that balance it's huge and actually you know we talk a lot about automation and building you know these these end-to-end factories quality not testing quality is the foundation for all of that if we just put in a automated pipeline or accelerating problems yes so we need to think first about quality and what does that look like and build the automation framework so it's embedded in everything we do and now we have a business engine that provides our weapons to survive in the market because we can outpace our competitors or traditional competitors we can outpace digital disruptors that come into our markets and try and build new business digital models that we can't traditionally compete with now we have an engine where we can match their pace of innovation whatever scale of business we are right in talking about matching the competition Joe so what kind of metrics should you have in place to measure improvements in efficiencies yeah you know I think to put metrics together you really need to understand the transformation that you're going through but you need to set goals so that you can measure and optimize through the transformation so when I work with clients what we typically do is is we have them look at the entire customer journey which we describe as discover transact fulfill use and care on each one of those stages it's going to vary by industries if I look at the enterprise software industry and if I look at that that life cycle right the goal of digital transformation for enterprise software is not necessarily to just sell online we see a lot of our enterprise software companies really focusing on the discover stage right how can I get more information to my customers how can I get better leads how can I get better information to my customers so that my salespeople have more qualified leads right and then also the service aspect I think gray had mentioned that earlier like that post sale experience those are the areas that in that particular industry people should be measuring we're seeing other industries like CPG where a lot of industry where a lot of companies are focused on direct to consumer models so these are companies that traditionally sold through distributors yeah but now they want to have a direct relationship with their customers and they need to bring on new capabilities to sell and deliver there's a new level of customer intimacy that they need to kind of manage and control and and be aware of how the dynamics are changing that's exactly right and the other one that we're seeing that I think is quite interesting is companies trying to leverage the existing ecommerce ecosystem around them right how can i leverage the big-box retailers how can i leverage all these on-demand services do I get products and services to my customers great thanks okay I'm going to move on to to probably the key question of all which is you know the promise of the session which was what should the digital transformation framework look like what were the core components that you should absolutely include and right I've seen some of your thoughts on this before him and what you've written so I just like to open with you with with what you see is those core components so there's the business model component which is important right and I think you touched on some of the very interesting ones I think you need to walk in with a very interesting case at the beginning by saying you know if you're in CPG or Pharma or in a place where recalls becomes very important that the case starts out like if your recall takes 8 weeks that's gonna cost you 8 billion dollars if your recall takes 8 days that's gonna cost you 800 million dollars and the recall takes 8 hours that's gonna cost you 8 million what do we need you to get there right it is that dramatic right and what you want to be able to do set up the framework to be able to answer these sets of questions and this is where a lot of times we think about design thinking as a way to solve problems two questions you haven't even asked and we start with that kind of beginning then we can start looking at the business models and then we can start looking at specifically what you need to do in terms of the teams right there's a piece we haven't talked about which is humanizing digital if we got a lot of people on the science technology engineering math side I got to balance them out with ethnographers people that can tell stories user experience folks people that understand design and then at that point then I got to start looking at how do I capture that data right and that data piece is important because I'm not using the data just to have data I want to go from data to information take the information stream to insights study the patterns of those insights and then be able to take action and once we can do that data to decisions framework then I can then figure out what I can do to open up platforms to do Co innovation and co-creation so we look at it in those kind of five steps great there's it's pretty comprehensive Joe taking the consultancy point of view where do you look at this so the way that we look at it is we recently launched an initiative called commerce next and it's around helping our clients achieve this next generation of commerce and the way that we focus on it our framework is to really start off by taking that outside in approach going out and getting the voice of the customer and then getting the voice of the business are they aligned right or are the things that you are good at or the things that you want to focus on those the things that your customers think that you're good at are they the things that your customers want and expect from you and by doing that that will help you define the customer experience that you want to build out for them that customer experience then should lead into a set of capabilities that you need to deliver to your customers from there you look at the technology needed to implement those capabilities and then all the operational process to support that can actually involve some quite radical thinking where traditionally most companies say well you know we have these teams these departments organizing this way because we've always done it we've always been like this and now suddenly you're having to make some radical and perhaps painful decisions in terms of reallocating resources moving people around possibly even letting them go because their skill set doesn't match a map to what you need going forward have you had experience of that yeah so the layer of complexity that that we see Digital adding to a lot of companies is digital prevents presents this single face of the company to the customer right and it can't be a fragmented experience between let's say selling something online and service capabilities delivered online right your customer should not be able to see your internal organization by navigating through your website that customers don't care what the apartment you're in exactly right exactly right and so the challenge that that companies have is getting all of those stakeholders to work together establishing governance structures establishing new business processes new operational metrics that have these different departments working together very well aligned to deliver that single face to the customer versus the traditional silos that they've worked in for many many years which they're being traditionally very comfortable with as well right and and that's where I think you know some of the older more established and companies struggle where some of the newer digital disruptors are a lot more nimble part of it's just their size and part of its the culture of the companies but that's what we see as as being a big roadblock for many companies got you and Chris I mean what are your perspectives coming from your role within you know the DevOps team yeah so I mean I you know I am I get the privilege of visiting globally a lot of our you know enterprise and medium enterprise size customers as they're all going on this journey and the commonality is everybody knows they have a problem to fix the challenges and the two ends of the spectrum are how much of a urgency they have around fixing the problem because you know especially the larger the enterprise the the more you know the harder it is because they have more legacy they've got more established process Wars out from here yeah they've got more siloed departments so you know there's a lot of stuff I'll come on to talk about about you know what's how do you start what's the approach and where do you go but but none of that's relevant until you cannot look until the business understands they're actually on a burning platform if we don't change we're dead and that's a really hard message you know you might get some levels of management it gets it but as that dilutes down through the organization and there the different teams are measured on different KPIs that that can you know get a very distant voice very quickly so the most important thing is to understand we have a problem to understand we need to react to the most disruptive market changes that's happened probably in 20 years and how are we going to do that so yeah so the customers I talk to if they understand clearly they have that problem and they understand that if they don't do something disruptive to change it a digital disruptors going to come into their market and destroy them you know disintermediate them put them at the end of a value chain then the transformation and the culture change required to do the transformation is super hard and I think it down real quick too as well get like three levels down which is really important is if you look at what you do it in DevOps today that is how the whole organization actually needs to work just think about the way you co-locate everybody at the same spot you know the number of Sprint's that you have to do the amount of coordination and collaboration that happens and so what we're doing it top-down by saying hey here's our new business model let's go over in this direction on the other hand the teams have to be ready right because what we've discovered is that the company that are doing really well are the companies that are actually either doing a lot of appdev on their own or Contracting for services because the stuff that we're trying to do the business models were trying to support it doesn't exist out there you can't buy a package for this stuff this stuff hasn't been invented yet and that's why that's why a lot of this DevOps piece is really important how you build that culture of really successful DevOps teams actually translates really well across the business side yeah perfect I'm in that there's there's there's a ton of data that shows how people are adopting DevOps or being digital disruptors they're making more money right they're surviving better in the market so we have to do it so you know I see customers who've embraced this from the top down they've got they put in agile across the board they're doing DevOps they put in all the tooling and they're making a big difference but we also see a lot of customers who start the journey and then it gets stuck very quickly so for me you know what should be in your digital framework you have to figure out how you're going to communicate the need to change so you have to figure out how you align to what are the business initiatives and the corporate strategy that's taking the business from where it is to somewhere oh it can compete as a digital interrupter in its own right in maybe a very big regulated traditional market depending on the industry it's in so how do we start by creating the internal evangelism and the communication we're going to need to continue to get the investment and the focus as we transform for what we used to do to what we need to do now with DevOps with continuous delivery with agile to get to a pace we need to be so once we do that then we figure out where to start and when you know because we're on a transformation journey but we have to measure the whole way through so we have to pick an area we can showcase we can trial these new approaches we can measure the improvements and then we can use that as an internal selling tool to showcase what the art of the possible and then we build a roadmap to say well what does the rest of the transformation look like because we can't do it overnight and the larger we are the longer it will take but at least we've shown what the end state looks like and how we're going to survive in that market that's going to point Jovie you find it hole evangelism yeah imperative is super important III do you know this needs to be from the top down yeah right we're just kind of jumping on what with these guys talking about I think the point on measurement is really important I think not only when we're talking about DevOps and and you know how we implement and build out new technology I think the business needs to have a culture of measure and optimize and be ready for frequent change right it's not good enough to just to just launch something new to implement new procedures to implement new digital technology without continuously measuring and optimizing it and being ready for further change because that's not what customers are expecting and we talk about being in this on-demand world now the expectation is if something doesn't work if something is not to my satisfaction it should be fixed or I'm gonna go somewhere else from a customer I am that demanding I you know it should change or improve or I go somewhere else that's right I I have a lot of choice there's a lot of opinions out there and in social media you know if something isn't working for me I can quickly go and find something that's going to suit my needs until your point right I mean social media what impact have you seen in your role in terms of how socials impacted customer adoption and potentially retention but also losing customers as well attrition I think what we're seeing with social media is is a shift in channels instead of broadcast what we're now doing is engaging and we're taking engagement to experience which is gonna change that even more drastically by context right this issue of context is playing a big role if you think about Internet of Things yeah so for example customer experience in the world of Internet of Things I mean is as simple as thinking about scenes and settings not on the channel I give you a great example so imagine if and I'll take I'm gonna take a work experience real quick but imagine you walk into work and actually you go in your car you drive to work you're 15 minutes late your car tells outlook you're 15 minutes late you have the option now to delay every minute by 50 every meeting by 15 minutes slice off five minutes on every meeting and you make that choice you get into the garage you get in the lobby they see you that's great you get into the elevator it knows hey you're on the tenth floor okay would you like to be on the tenth floor but your boss is available for 10 minutes on the 8th floor that's kind of pretty cool and by the way squirrel there's cake on the 6th floor what do you do do you think you take the cake or do you go meet with your boss right and you get to your meeting and these things up popping out so what we're seeing is massive context emerged this happens in shopping this happens in field service we're gonna see all these different things pop up that's the kind of stuff that we're trying to get to in short no it's this way input now Chris I mean just talking about frameworks do you wanna maybe wanted to talk about the current state workshop in terms of the role that that plays in our framework yeah absolutely so so you know we're on a journey so today you know wherever you are so so you know across the world I'm talking to prospects and customers who are either they're all thinking about it everyone's thinking about the need to transform to do DevOps to do our job so they're either thinking about it or they're somewhere in the middle of that transformation or they're fairly mature and in this in this hall we have people at all ends of that spectrum on the journey so quite frequently the questions they're asking us is you know how do we go from where we are now to where we need to be so we have a current state workshop we call it where we would come in and assess where you are today we'd look at your you know what what is your process your business process your software development process that takes innovation puts it through the the factory and delivers that outstanding quality how do you do that today are you waterfall is it all on premise or are you somewhere further on the journey and from that we would be able to build you a prioritized roadmap that says if this is what good looks like at the end of that journey where you need to be what are the steps in what order should you address those challenges as you move through the people process and technology part of that because that gives you at least a roadmap to say how do I get started because it's a big transformation it takes a while it takes guts it takes business drivers to do but it also you know it's helpful if you've got someone who said well here's what here's what we're seeing in the industry here's what other people are doing is the pitfalls you can avoid and here's a good end state that you need to get to let me do a five-step framework in 30 seconds alright so so start with that point that you're talking about design thinking think about the business model in Spearin says you want to build what does your brand stand for start there second thing make sure you get the right teams of people we want digital artisans so the people that we're talking about a and right brain people on the right team the third piece is then start figuring out what you need to do from a technology perspective to support those new business models that is going to be the hardest part try and identify which pieces to put in because it is partly mobile it's partly what happening in commerce it's what's happening in social there's a lot of distractions I've got to stay focused on where it is fourth piece is make sure that I have the data that I'm collecting because I want to go from gut driven to data-driven decisions this is going to drive a lot of the future of what I do and then the last piece really is to create a platform for other partners and even competitors the Konev eight and co-create on top that's where you get the digital scale that's where you get a lot of direct to consumer models and the p2p pieces that are happening perfect right thanks Joe the final word yeah I think just just to add on that point I mean one of the things that we're seeing successful companies do is change the model and how they they innovate right we're seeing a lot of formal co-creation exercises we're seeing the merging of the left brain and right brain right professionals and together and one of the things that we've done is we've invested significantly in building out our experience centers where we actually do those things right we we bring our clients in we have the left brain people the right brain people we have a methodology around helping them innovate and and co-create and it works I did is a different way of thinking and companies that are investing in that model I think are going to be successful with digital transformation right thanks rich and just on time there thanks everyone for it and to our panel for turning I strongly recommend Ray's new book to check that out it's excellent reading and some really good insights visit the DevOps Center over there find out about the current state workshop on our solutions and PwC are also exhibiting here so again I urge you to go over there thanks very much thanks for your time you