- The stories of digital transformation - What is digital transformation? - Digital transformation governance

1. DIGITAL
TRANSFORMATION
By Hai Pham
1

2. HAI PHAM
1. ITLC is my brother!
2. Business Technology
Consultant
3. Funny boy ;-)
4. https://www.facebook.
com/haipham.openco
nsultant
5. haipham@openconsu
ltant.vn
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3. CONTENT
• The stories of digital transformation
• What is digital transformation?
• Digital transformation governance
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4. THE STORIES OF DIGITAL
TRANSFORMATION
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5. 1. Starbucks
Company Overview
• Coffee business
• The world largest specialty food retailer
• One of the most globally recognized brand
• Billion dollar enterprise
Problems & Opportunities
“Everything we are doing in digital is about enhancing and
strengthening those connections with our customers in only the way
that digital can and only the way that Starbucks can”
- Adam Brotman - Chief Digital Officer
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6. 1. Starbucks
Strategies/ Actions
• Organize digital capabilities
CIO created “Starbucks Digital Ventures” as an internal
incubator for digital technology
• Leverage mobile channel to enhance customer’s
Starbucks experience
Mobile payment via Square payment system
Integrate application with Apple’s native Passbook
feature, which consolidates ticket, coupon and loyalty
cards information on iPhone for convenient access.
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7. 1. Starbucks
Strategies/ Actions
• Engage customer via social media
Use social media to fuel customer-driven innovation via
“My Starbucks Idea” site to collect over 50 thousand
customer-submitted ideas to improve products,
customer experience and corporate initiatives
• Bridging offline and online customer experience
The “Starbucks Digital Network” offers in-store
customers premium digital content delivered via
free WiFi connection.
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8. 1. Starbucks
Results
• “Digital has to help our store partners and help the company be the
way we can tell our story, build our brand, and have a relationship
with a customer”.
Adam Brotman – CDO
• Reduce transaction charges, lower operating costs
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9. 2. Walmart
Company Overview
• The world’s largest company by revenue
• Biggest private employer
• The world largest grocery retailer in U.S
Problems & Opportunities
• In 2011, Walmart was struggling to break new ground with online
business
• E-commerce site was lacking intuitive search and unable to
connect with store or supply chain
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10. 2. Walmart
Strategies/ Actions
• Established Global eCommerce Division in 2010
Run ten websites worldwide
Build and test technology at WalmartLabs
• WalmartLabs
Digital innovation center
Idea incubator
• build products that seamlessly integrate the online and in-store
shopping experiences for millions of customers
• mobile app with personalized experiences such as ShopyCat, Goodie
• Focus on Digital & Offline
• “Save money. Live better”
• Social media + Big data >> Personalize customer experience
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11. 2. Walmart
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• 245 million customers visiting 10,900
stores
• 10 active websites across the globe
How Big Data Analysis helped increase
Walmart’s Sales turnover?
Walmart started making use of
big data analytics much before
the term Big Data became
popular in the industry
• In 2012, 10
node Hadoop cluster to a
250 node Hadoop cluster.
• 10 different websites into a
single website so that all the
unstructured data generated
is collected into a
new Hadoop cluster
 Walmart processes multiple Terabytes of new data
and petabytes of historical data every day.
 The analysis covers millions of products and 100’s of
millions customers from different sources.
 The analytics systems at Walmart analyse close to
100 million keywords on daily basis to optimize the
bidding of each keyword.

12. 2. Walmart
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How Big Data Analysis helped increase
Walmart’s Sales turnover?
Big Data
Analytics
Solutions
How Walmart
is tracking its
customers?
How Walmart
is making a
real difference
to increase
sales?
How walmart
become
amazon
compete?

13. 2. Walmart
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How Big Data Analysis helped increase
Walmart’s Sales turnover?
Social
Genome
Social Media Big
Data Solutions
Shopycat-
Gift
Predictive
Mobile Big Data
Analytics Solutions
Social Genome is
a big data
analytics solution
developed by
WalmartLabs
Shopycat app will
help you buy the
ideal gift for your
friend during the
holiday buying rush

14. 2. Walmart
Results
• Between 2011 and 2014, Walmart’s e-commerce sales grew nearly
150% from $4.9 billion to $12.2 billion.
• Gain extra revenue from digital service
• Keep relationship with customer and wholesalers, retailers
Lesson learnt
• Digital savvy leadership
• Build a culture of innovation
• Strategic Acquisitions to bolster digital capabilities
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15. 3. Volvo Cars
Company Overview
• Small player in 2010
• Relies on the network of 2300 local dealers in 100 countries
Problems & Opportunities
• “Nowadays, you don’t sell a car. You sell a transportation solution,
and it should be as efficient and smooth as possible. Looking into
the future, we might say we don’t sell a transportation solution, we
sell an experience".
Timo Paulsson, Senior Manager Ownership Services and Brand
Protection for VCC global
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16. 3. Volvo Cars
Strategies/ Actions
• Business model transformation from B2B to B2B and B2C
• Launch new digital services
Via social channels (Portal, Facebook, Twitter, Youtube)
Mobility
• Connected car concepts: Embedding mobile technologies in vehicles
to enhance customer experience
• Build capabilities at global levels:
Implement global CRM
Implement analytical capabilities
Results
• Gain extra revenue from digital service
• Keep relationship with customer and wholesalers, retailers
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17. WHAT IS DIGITAL
TRANSFORMATION?
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18. Building Blocks of Digital Transformation
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Business model
Customer
experience
Operational process Digital capabilities

19. 19
Digital Transformation Framework
(Capgemini Consulting)

20. Business Model
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1

21. Business Model Transformation
Offline Online
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22. New Business
Model
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Dienmay.com
Dienmaycholon.vn
NguyenKim.com
GiaThanh.vn
When someone needs to buy a TV…
 Compare price from different stores
 Review products
 Better brand awareness
• Traditional way
Dien May, Nguyen Kim, Gia
Thanh offline stores
• Modern way

23. New Business
Model
Alezaa
Cloud Reader –
Instant online
reading
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Values:
• Reader can buy more eBooks at cheaper price
• Protect copyright
• Enormous book storage (10000 items)

24. New Business
Model
Dienmay.com
Aim to be Vietnam
Amazon
Online electronics
and household
appliances
marketplace
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25. New Business
Model
DiaOcOnline.vn
Top 3 Viet Nam
Real Estate Listing
Connecting:
Broker, End-User,
Buyer
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26. Customer Experience
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2

27. Customer
experience
transformation
• Better customer understanding
• Increase customer touch points
• Customer analytics supports decision
making on manufacturing, marketing,
investment etc.
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28. Customer
experience
transformation
L’Oréal Case
Study
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https://youtu.be/G1z2Od5lIsA

29. Operational Process
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3

30. Operational
Process
Transformation
• Internal data-driven
• Internal analytics
• Better productivity management
• Collaborative workspace
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31. Building blocks of the digital
transformation
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4

32. Digital
Capabilities
Transformation
• The foundation of business model,
customer experience and operational
capabilities transformation
Analytics Capabilities
Business & IT integration
Knowledge management
Business data analysis for business
planning
Product/Service innovation
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33. DIGITAL TRANSFORMATION
GOVERNANCE
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34. DT
Governance
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35. DT
Governance
1. Silo
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• Each business unit can have its own
strategy and budget for digital initiatives
• No enterprise-level coordination
• Digital operations developed and
managed in business units

36. DT
Governance
Central
coordination
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• Digital strategy defined at enterprise level
• Digital initiatives funded and coordinated
at enterprise level
• Digital operations developed and
managed in business units

37. DT
Governance
Less coordination
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• Digital strategy defined by central unit, although
local business units can have their own strategies
• Local business units develop and manage
operations, but must use solutions and resources
from dedicated business unit when available

38. DT
Governance
More coordination
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• Digital strategy set by a dedicated business unit.
• Local business unit digital strategies and budgets
are coordinated across the company
• Local business units develop and manage
operations, but must use solutions and resources
from dedicated business unit when available

39. DT Investment
4 investment types:
1. Economic
2. Burning platform
3. Strategic
foundation
investment
4. Low-risk
experiment
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40. Digital maturity
matrix
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41. DT challenges
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Start
•Lack of financial commitment
•Lack of experiences
•ROI calculation
Execute
•Lack of required skills
•Cultural issue
•Limited internal IT resources
•Unclear/Ambitious SOW
Develop
•Daunting Trials and fails process
•Require high adaptabilities to changes

42. HẾT BÀI. CAFE THÔI ;-)
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