From the Blogosphere
The Four Laws of Digital Transformation | @CloudEXPO @Schmarzo #AI #DX #IoT #SmartCities #DigitalTransformation
Digital Transformation is about innovating business models, not just optimizing business processes
By: William Schmarzo
May. 15, 2019 01:45 PM
My discussions with organizations looking to “digitally transform” themselves is yielding some interesting observations. I expect that when these discussions move into the execution phase, we will start to create some “Laws of Digital Transformation” that will guide organizations digital transformation journey. So with that in mind, let me start by proposing these “4 Laws of Digital Transformation”.
Law #1: It’s About Business Models, Not Just The Business
Organizations are looking to leverage these digital assets to create new “economic moats.” Warren Buffett, the investor extraordinaire, popularized the term “economic moat.” “Economic moat” refers to a business’s ability to maintain competitive advantages over its competitors (through process and technology innovation and patents) in order to protect its long-term profits and market share from competing firms.
As highlighted in the McKinsey Quarterly article titled “Competing In A World Of Sectors Without Borders,” organizations are embracing digital transformation to knock down traditional industry boundaries and disrupt conventional business models (see Figure 1).
Figure 1: Digital Transformation Driving New Ecosystems and Business Models
While organizations that are looking to “digitally transform” themselves need to look long term, they can, and should, apply their digital assets to optimizing today’s key business and operational processes with machine learning and artificial intelligence capabilities.
Law #2: It’s About Eliminating Barriers Associated with Time and Distance
Let’s say that you are in the retail industry and looking to identify opportunities to combine digital technologies with digital assets to eliminate time and distance as barriers to your business model. The scenario outlined in Table 1 provides an example of that process.
Table 1: Traditional versus Digitally Transformed Business Models
The scenario in Table 1 isn’t just optimizing the ordering process. The scenario in Table 1 requires the complete re-wiring of the organization’s business model and value creation process: from demand planning to procurement to quality control to logistics to inventory management to distribution to marketing to store operations to customer experience.
There are a multitude of opportunities for organizations to couple digital technologies with digital assets to remove time and distance barriers across the organization’s value creation model. Let’s go old school (“there’s no school like old school”) and check out the blog “Michael Porter’s Value Chain Creation Model” to start that brainstorming process (see Figure 2).
Figure 2: Michael E. Porter “Competitive Strategy: Techniques for Analyzing Industries and Competitors
Law #3: It’s About Creating New Digital Assets
Organizations need to create new digital assets around customer, product and operational insights. Organizations need to capture the analytical and behavioral insights about their customers, products and operations including tendencies, inclinations, predispositions, propensities, biases, preferences, trends, performance and usage patterns, associations and affiliations.
But these new digital assets can’t be built all at once. Organizations need a thoughtful process for building out these analytic and behavioral insights one use case at a time. See the blog “Analytic Profiles: Key to Data Monetization” for more details on how to leverage the Data Lake and Analytic Profiles to build out your organization’s new digital assets (see Figure 3).
Figure 3: Leverage Analytics Profiles to build New Core Competencies
These customer, product and operational data and analytics are corporate assets like we have never seen before. These digital assets never wear out and never depreciate. In fact, the more that you use these digital assets, the more their value increases. And these digital assets never deplete so they can be used across an infinite number of use cases at no additional cost.
Consequently, organizations need an entirely new approach to properly manage and leverage these digital assets. My recent University of San Francisco research paper “Applying Economic Concepts To Big Data To Determine The Financial Value Of The Organization’s Data And Analytics Research Paper” lays out a process for not only determining the economic value of your data and analytics, but also how to use these new digital assets to fuel your digital transformation process.
Law #4: It’s About Predictive Intelligence
Digital transformation is about creating an organization that continuously explores, tests and learns. Every customer engagement is an opportunity to learn more about the preferences and behaviors of your customers. Every product activity is an opportunity to learn more about the performance and usage of your products. Every employee, supplier and partner engagement is an opportunity to learn more about the effectiveness and efficiencies of your operations.
Leading organizations do this at scale, continuously exploring new ideas and testing new concepts in order to fuel the continuous learning cycle. Leading organizations master the “Art of Failure” where the “fail fast but learn faster” mentality permeates the entire organization. These organizations embrace the power of “might,” because if organizations don’t have enough might moments, they won’t have any break-through moments.
In the end, these organizations look to build “smart” or “intelligent” products, services and processes that self-monitor, self-diagnose, self-correct and self-learn; that strive to continuously refine and fine-tune the organization’s digital transformation journey.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes.
Register Today and SAVE ▸ Here
Speaking Opportunities ▸ Here
Sponsorship & Exhibit Opportunities ▸ Here
Silicon Valley Faculty ▸ Here
Silicon Valley Schedule ▸ Here
CloudEXPO Has Been the M&A Capital For Cloud Companies
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
Our Silicon Valley 2019 schedule will showcase 200 keynotes, sessions, general sessions, power panels, and hands on tutorials presented by 150 rockstar speakers in 10 hottest conference tracks of 2019:
CloudEXPO Silicon Valley 2019 Show Prospectus ▸ HERE
Prospectus At-a-Glance ▸ HERE
CloudEXPO is the single event where technology buyers and vendors meet to experience and discus cloud computing and all that it entails. For more than a decade, sponsors and exhibitors of CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities through our following unique tools. For more information on sponsorship, exhibit, and keynote opportunities call us at 954 242-0444 or contact us ▸ Here
FinTech and Blockchain Are Now Part of CloudEXPO 2019 Program
Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.
Accordingly, attendees at the upcoming 23rd CloudEXPO, June 24-26, 2019 at Santa Clara Convention Center in Santa Clara, CA will find fresh new content in full new FinTech & Enterprise Blockchain track.
ServerlessSUMMIT & Kubernetes at CloudEXPO Silicon Valley
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility.
Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility.
Serverless and Kubernetes are great examples of continuous, rapid pace of change in enterprise IT. They also raise a number of critical issues and questions about employee training, development processes, and operational metrics.
DevOpsSUMMIT at CloudEXPO Celebrates Its 12th Event in Six Years
Cloud-Native thinking and Serverless Computing are now the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, as well as the public sector.
The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
ServerlessSUMMIT and DevOpsSUMMIT at CloudEXPO expands the DevOps community, enable a wide sharing of knowledge, and educate delegates and technology providers alike.
There's a real need for serious conversations about Serverless and Kubernetes among the people who are doing this work and managing it.
DXWorldEXPO Showcases Cutting-Edge IoT, Artificial Intelligence, Machine Learning, and Digital Transformation
Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation. DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy.
DXWorldEXPO® has organized these issues along 10 tracks, 22 keynotes and general sessions, and a faculty of 222 of the world's top speakers.
DXWorldEXPO® has three major themes on its conference agenda:
Technology - The Revolution Continues
Global 2000 companies have more than US$40 trillion in annual revenue - more than 50% of the world's entire GDP. The Global 2000 spends a total of US$2.4 trillion annually on enterprise IT. The average Global 2000 company has US$11 billion in annual revenue. The average Global 2000 company spends more than $600 million annually on enterprise IT. Governments throughout the world spend another US$500 billion on IT - much of it dedicated to new Smart City initiatives.
For the past 10 years CloudEXPO® helped drive the migration to modern enterprise IT infrastructures, built upon the foundation of cloud computing. Today's hybrid, multiple cloud IT infrastructures integrate Big Data, analytics, blockchain, the IoT, mobile devices, and the latest in cryptography and enterprise-grade security.
Digital Transformation is the key issue driving the global enterprise IT business. DX is most prominent among Global 2000 enterprises and government institutions.
About DXWorldEXPO LLC
DXWorldEXPO LLC is a Lighthouse Point, Florida-based trade show company and the creator of DXWorldEXPO - Digital Transformation Conference & Expo. The company produces and presents the world's most influential technology events including CloudEXPO, DevOpsSUMMIT, and FinTechEXPO.
SOA World Latest Stories
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
SYS-CON Featured Whitepapers
Most Read This Week