Digital Transformation Toolkit

Overview and 3-Phase Approach

Created by ex-McKinsey, Deloitte &
BCG Management Consultants.
 Context
Forecasts suggest that by 2030 around 50 billion of connected devices will be in use around the world, creating a
massive web of interconnected devices spanning everything from smartphones to kitchen appliances.

Number of connected devices worldwide

50 billion

38 billion

22 billion

2018 2025 2030

Undertaking a successful digital transformation for your organization is becoming more important than ever

Source: Statista 2
Context
There are 6 core technology trends that make Digital Transformation possible.

Websites and applications that enable users to create and share content
or to participate in social networking (e.g. Facebook, Twitter).

Social
Media
The practice of using a network of remote
The use of mobile devices which transformed
servers hosted on the Internet to store, manage,
how people interact, consume information and Cloud
Mobility and process data, rather than a local server or a
services, collaborate, and work. Computing personal computer.

Digital
Transformation

Cybersecurity is the body of technologies, Extremely large data sets that may be analyzed
processes and practices designed to protect Cyber- computationally to reveal patterns, trends, and
Big Data associations, especially relating to human
networks, computers, programs and data from security
attack, damage or unauthorized access. behavior and interactions.

Internet
of Things

A development of the Internet in which everyday objects have

network connectivity, allowing them to send and receive data.

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Problem
Transformations are hard, and digital ones are harder

According to a survey conducted by the #1 global consulting firm McKinsey, only 16 percent of executives say that their
organizations’ digital transformations have successfully improved performance and also equipped them to sustain
changes in the long term.
Even digitally savvy industries, such as high tech, media, and telecom, are struggling. Among these industries, the
success rate does not exceed 26 percent. But in more traditional industries, such as oil and gas, automotive,
infrastructure, and pharmaceuticals, digital transformations are even more challenging: success rates fall between 4 and
11 percent.

4
Traditional Solution
To solve this problem, companies usually hire management consultants from tier-one management
consulting firms. Whereas this solution works well, not everyone can afford it.

To help them increase the value creation of their digital transformation, most tier-one companies (e.g. Apple, Procter & Gamble, Google,
Amazon, etc.) are hiring management consultants from the following management consulting firms:

Whereas this solution usually brings a tremendous return on investment, not every business can afford to spend $300k+ to hire of couple
of McKinsey, Deloitte or BCG Management Consultants.

5
Our Solution
Our management consulting firm decided to create an affordable Digital Transformation Toolkit that will help you
undertake a successful digital transformation for your organization (or your client if you are a management consultant).

The Digital Transformation Toolkit includes:

Tools
Frameworks

Templates

Support from Tier-1 Toolkits

Management
Consultants
Step-by-step Tutorials

Best Practices
Real-life Examples

6
Objectives
The Digital Transformation Toolkit includes frameworks, tools, templates, tutorials, real-life examples and
best practices to help you:
• Undertake a successful digital transformation with a simple and comprehensive 3-phase approach: (I) Assess the Environment,
Performance and Digital Maturity of the Organization, (II) Define & Communicate the Digital Transformation Strategy & Plan, (III)
Implement, Track & Manage Progress
• Assess the Environment, Performance and Digital Maturity of the Organization: (1) Market analysis, (2) Competitor analysis, (3)
Company performance, (4) SWOT summary of the key business insights, (5) Digital maturity model - Current state
• Define & Communicate the Digital Transformation Strategy & Plan: (1) Digital maturity model - Target state, (2) Strategic objectives,
team & budget, (3) Technologies to consider to reach our digital transformation strategic objectives, (4) Potential initiatives to reach our
strategic objectives, (5) Business cases and financial models, (6) Digital transformation initiatives prioritization, (7) Digital transformation
plan, (8) Detailed plan for each initiative, (9) Change management strategy and plan, (10) Communication strategy and plan
• Implement, Track & Manage Progress: (1) Governance rules, (2) Digital transformation strategic objectives and KPIs status, (3)
Digital transformation plan status, (4) Detailed status of each initiative, (5) Change management strategy and plan status, (6)
Communication strategy and plan status, (7) Digital transformation lessons learned
• Define the key success factors of a Digital Transformation
• Build a strong business case and financial model to get your digital transformation projects approved by the executive committee
• Estimate your project financials: revenue, cost savings, cash flow, net present value (NPV), ROI, IRR, payback period, WACC, etc.
• Define and implement your change management strategy & plan to ensure people adoption of the changes
• Prioritize a company’s potential initiatives based on impact and effort, and build your roadmap
• Get an understanding of the top 12 main New Technologies that could make your company grow in a profitable way: Big Data,
Artificial Intelligence, Cloud Computing, Cyber security, Blockchain, Internet of Things, Digital Marketing, 3-D Printing, etc.
• Manage your stakeholder effectively with our stakeholder analysis process and matrix
7
Key Success Factors
After undergoing 30+ Digital Transformations over the past 20 years, we identified that all the
Great Digital Transformations have the following 5 key success factors in common:
A Strategy without execution is a dream. But execution without strategy is a nightmare. That is why it is so critical to first spend
1. A robust Digital some time crafting a robust Digital Transformation Strategy & Plan, which should include key components such as:
Transformation • The digital transformation strategic objectives
Strategy & Plan • The key initiatives required to reach the strategic objectives
• The human and financial resources required to complete the key initiatives

2.A simple but Each key initiative needs to have a simple and comprehensive Business Case with key components such as:
comprehensive • The initiative objectives, scope & approach
Business Case for • Expected Deliverables & Business Outcomes
each key initiative • Costs, benefits and net present value

3.An effective To effectively prioritize a long list of initiatives, the use of a 2 by 2 matrix with the following 2 dimensions is very useful:
process to prioritize • Impact (e.g. Cost savings, Incremental revenue)
initiatives • Effort (e.g. Time frame required, human resources, financial resources)

4.A clear Strategy to To ensure that executives, managers, employees and customers understand the “why”, the “what” and the “how”, it is critical to craft
a comprehensive Change Management Strategy & Plan that includes:
ensure people • An impact assessment
adoption of the • A communication plan, a training plan and a coaching plan
changes • A resistance management plan
To build an effective and efficient governance and easily track and manage progress, it is very important:
• To have one person accountable for the success of each initiative
5.An effective and • To have weekly meeting and user-friendly dashboards at the Digital Transformation Program level and at the initiative level
efficient Governance • To print in A1 all the dashboards and put them on a wall. Alternatively, you can also recreate on a wall the dashboards with
stickers, tapes and post-its
8
3-Phase Approach
The Digital Transformation Toolkit includes a 3-Phase Approach that we built and refined over the past 20 years, by constant trial and error.
The good news is that you don’t have to waste your time, energy and money going through that lengthy trial-and-error process. You can
simply leverage our work and customize it based on the specificities of your organization.

Phase I: Assess the Environment,

Phase II: Define & Communicate the Phase III: Implement, Track & Manage
Performance and Digital Maturity of the
Digital Transformation Strategy & Plan Progress
Organization

1. Market analysis 1. Digital maturity model - Target state 1. Governance rules

2. Competitor analysis 2. Strategic objectives, team & budget 2. Digital transformation strategic objectives and
KPIs status
3. Company performance 3. Technologies to consider to reach our digital
transformation strategic objectives 3. Digital transformation plan status
4. SWOT summary of the key business insights
4. Potential initiatives to reach our strategic 4. Detailed status of each initiative
5. Digital maturity model - Current state
objectives
5. Change management strategy and plan status
5. Business cases and financial models
6. Communication strategy and plan status
6. Digital transformation initiatives prioritization
7. Digital transformation lessons learned
7. Digital transformation plan
8. Detailed plan for each initiative
9. Change management strategy and plan
10.Communication strategy and plan

9
In the next slides, you’ll see a small preview of the Phase 1

Phase I: Assess the Environment,

Phase II: Define & Communicate the Phase III: Implement, Track & Manage
Performance and Digital Maturity of
Digital Transformation Strategy & Plan Progress
the Organization

1. Market analysis 1. Digital maturity model - Target state 1. Governance rules

2. Competitor analysis 2. Strategic objectives, team & budget 2. Digital transformation strategic objectives and
KPIs status
3. Company performance 3. Technologies to consider to reach our digital
transformation strategic objectives 3. Digital transformation plan status
4. SWOT summary of the key business insights
4. Potential initiatives to reach our strategic 4. Detailed status of each initiative
5. Digital maturity model - Current state
objectives
5. Change management strategy and plan status
5. Business cases and financial models
6. Communication strategy and plan status
6. Digital transformation initiatives prioritization
7. Digital transformation lessons learned
7. Digital transformation plan
8. Detailed plan for each initiative
9. Change management strategy and plan
10.Communication strategy and plan

10
PESTLE
Purpose

The PESTLE
Framework will help
us analyze the
environment in which
our Business operates

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PESTLE Analysis
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Political Technological
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P T • Replace the text by your own text
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Economical Legal

PESTLE
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E L • Replace the text by your own text
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Social Environmental
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S E • Replace the text by your own text
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PESTLE Analysis
Replace Insert
thisheretext with the key takeaway of this Powerpoint slide.
any political factors that impact or could
potentially impact the Business. These political factors
can be local, national or international.
Examples: A new government, a new initiative, a change
of policy, etc.
Political Technological
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
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P T • Replace the text by your own text
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Insert here any Economical factors that impact or could
potentially impact the Business.
Examples: A change in disposable income, an economic
downturns, the availability of bank loans, etc.
Economical Legal

PESTLE
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
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E L • Replace the text by your own text
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Insert here any Sociological factors that impact or could
potentially impact the Business.
Examples: The demographic change of a company’s
customers, a change in the cultural habits of the
population, a change in lifestyle, etc.

Social Environmental
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text
S E • Replace the text by your own text
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• Replace the text by your own text • Replace the text by your own text

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PESTLE Analysis
Replace this text with the key takeaway of this Powerpoint slide.
Insert here any Technological factors that impact or could potentially impact the Business.
Examples: A new software, device, patents, etc.

Political Technological
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text
P T • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text • Replace the text by your own text

Insert here any Legal factors that impact or could potentially impact the Business.
Examples: International selling laws, health and safety requirement, Data protection,
competitive regulations, employment law, etc.
Economical Legal

PESTLE
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text
E L • Replace the text by your own text
• Replace the text by your own text
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Social Environmental
• Replace the text by your own text • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text
S E • Replace the text by your own text
• Replace the text by your own text
• Replace the text by your own text • Replace
Insert here any Environmental factors that impact or could potentially
the text impact
by your own textthe Business.
Examples: the use of plastic bags for goods, the use of electrical cars, customer values,
environmental regulations, etc.
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Digital maturity assessment
Description (1/2)

Level 1 - Basic Level 2 - Medium Level 3 - Good Level 4 - World-class

Only a single channel, which is often a physical Multiple channels but often siloed, with the Actively transitioning from a multi channel to an Omni-channel model where channels are
store ecommerce department often seen as a omni-channel model integrated, allowing a seamless customer
Customer React to customer needs separate entity Proactively answer customer needs, and experience
Experience Start to proactively answer customer needs, influence buying decisions Meet the needs of customers even before they
and influence buying decisions become aware of those needs (with Internet of
Things)
This digital maturity assessment will help identify where you
Barely no data The company has some data The company has a Big Data solution The company has a Big Data solution
are today and where you want to be in the future. It includes 10
Barely no insight A team of people manually analyze and provide gathering a lot of data gathering a lot of data
Data & sections spread in 2
insight to the rest of the company slides, which may have
Automatic to be with
reporting updated
key insights Automatic reporting providing a lot of key
based on the specificities of yourAlmostindustry and organization. insights in real time
Insights a 360-degree view of the customer
A 360-degree view of the customer

Buy the Digital Transformation Toolkit to unlock content

Visit Website

Part of the Digital Transformation Toolkit 15

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See below 4 screenshots from the Phase 1.

Company performance Market Profitability

SWOT summary of the key business insight Digital maturity model - Current state

16
In the next slides, you’ll see a small preview of the Phase 2

Phase I: Assess the Environment,

Phase II: Define & Communicate the Phase III: Implement, Track & Manage
Performance and Digital Maturity of the
Digital Transformation Strategy & Plan Progress
Organization

1. Market analysis 1. Digital maturity model - Target state 1. Governance rules

2. Competitor analysis 2. Strategic objectives, team & budget 2. Digital transformation strategic objectives and
KPIs status
3. Company performance 3. Technologies to consider to reach our digital
transformation strategic objectives 3. Digital transformation plan status
4. SWOT summary of the key business insights
4. Potential initiatives to reach our strategic 4. Detailed status of each initiative
5. Digital maturity model - Current state
objectives
5. Change management strategy and plan status
5. Business cases and financial models
6. Communication strategy and plan status
6. Digital transformation initiatives prioritization
7. Digital transformation lessons learned
7. Digital transformation plan
8. Detailed plan for each initiative
9. Change management strategy and plan
10.Communication strategy and plan

17
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Digital Transformation Lean

Business Case
CEO: insert your own text
Chief Digital Officer: insert your own text
Author: insert your own text
Board Meeting Date: insert your own text
Version No: E.g. 1.0 for final / 0.1 for drafts

Bank Corp
Introduction

• This presentation is a Digital Transformation Lean Business Case presented to the Board of one of our
clients, a leading European retail bank.
• The objective was to convince the Board to invest $100 million in a Digital Transformation Program.
• The name and data have been changed for confidentiality reasons.

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Executive Summary

Situation
• Bank Corp’s shareholders expect an ambitious compound annual revenue growth rate of 15% over the next 5 years
• The Banking industry is mature, with an expected compound annual revenue growth rate of only 3% over the next 5 years
• A Business model shift is required in order to meet our shareholders expectations

Recommendation
We recommend to invest $100 million in a Digital Transformation Program in order to shift our business model from a linear Value Chain model to a digital ecosystem model

Reason #1 Reason #2 Reason #3 Reason #4

An increasingly “digitally A low Digital Maturity within A digital model would drive A great return on investment
friendly world” Bank Corp profitable growth

• The number of connected devices • The digital maturity of Bank Corp • A digital ecosystem model would • Investing $100 Million in a digital
worldwide will be 50+ Billion in 2020 customer experience is low generate $150+ million of additional ecosystem model would generate a
• The use of the online and mobile • The digital maturity of Bank Corp revenue over the next 5 years 100%+ return on investment
channels are becoming increasingly operations is low • A digital ecosystem model would
important in the banking industry generate circa $50+ million of cost
savings over the next 5 years
• These additional revenue and cost
savings would be driven by 5 key
projects

20
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Bank Corp’s shareholders expect an ambitious compound annual
revenue growth rate of 15% over the next 5 years

Bank Corp Expected Profit

(in Billion $)
Compound annual revenue growth rate: +15%
1.75

1.52
1.32
1.15
1.00

2016 2017 2018 2019 2020

21
Technologies to consider to reach our Strategic Objectives
It is important to have a good understanding

Replace this text with the key takeaway of this Powerpoint slide.
of each new technology, even if it seems like
it is not applicable in your industry or no one
is doing it in your industry. After studying all
the new technologies, you may find new
ideas to improve your business, or even
disrupt your own business model

Big Data Artificial Intelligence Cloud Computing Cyber Security Blockchain Internet of Things

Digital Marketing 3-D Printing Drones Robots Virtual Reality Augmented reality

Part of the Digital Transformation Toolkit 22

Why are we considering the Big Data for our organization?

Big data is a term that describes the large volume of data, both structured and unstructured, that inundates a business on a day-to-day
basis. But it’s not the amount of data that’s important. It is what organizations do with the data that matters. Big data can be analyzed for
insights that lead to better tactical and strategical decisions. The next slides deep dive in each
technology
While the term “big data” is relatively new, the act of gathering and storing large amounts of information for eventual analysis is ages old.
The concept gained momentum in the early 2000s when industry analyst Doug Laney articulated the now-mainstream definition of big
data as the three Vs:

• Volume: Organizations collect data from a variety of sources, including business transactions, social media and information from
sensor or machine-to-machine data. In the past, storing it would’ve been a problem, but today, new technologies have eased the
challenge.
• Velocity: Data streams in at an unprecedented speed and must be dealt with in a timely manner. RFID tags, sensors and smart
metering are driving the need to deal with torrents of data in near-real time.
• Variety: Data comes in all types of formats, from structured, numeric data in traditional databases to unstructured text documents,
email, video, audio, stock ticker data and financial transactions.

The amount of data in our world has been exploding, and analyzing large data sets will become a key basis of competition, underpinning
new waves of productivity growth, innovation, and consumer surplus, according to research by MGI and McKinsey's Business
Technology Office.

Part of the Digital Transformation Toolkit 23

 The next 15 slides are self
Examples of industry using Big Data explanatory and do not include any
comments or instructions

Banking With large amounts of information streaming in from Education Educators armed with data-driven insight can make a
countless sources, banks are faced with finding new and significant impact on school systems, students and
innovative ways to manage big data. Big Data and curriculums. By analyzing big data, they can identify at-
Analytics help banks better understand customers and risk students, make sure students are making adequate
minimize risk. Big data brings big insights, but it also progress, and can implement a better system for
requires financial institutions to stay one step ahead of evaluation and support of teachers and principals.
the game with advanced analytics.

Government When government agencies are able to harness and Health care Patient records. Treatment plans. Prescription
apply analytics to their big data, they gain significant information. When it comes to health care, everything
ground when it comes to managing utilities, running needs to be done quickly, accurately, and, in some cases,
agencies, dealing with traffic congestion or preventing with enough transparency to satisfy stringent industry
crime. But while there are many advantages to big data, regulations. When big data is managed effectively, health
governments must also address issues of transparency care providers can uncover hidden insights that improve
and privacy. patient care.

Manufacturing Armed with insight that big data can provide, Retail Customer relationship building is critical to the retail
manufacturers can boost quality and output while industry – and the best way to manage that is to manage
minimizing waste – processes that are key in today’s big data. Retailers need to know the best way to market
highly competitive market. More and more manufacturers to customers, the most effective way to handle
are working in an analytics-based culture, which means transactions, and the most strategic way to bring back
they can solve problems faster and make more agile lapsed business. Big data remains at the heart of all
business decisions. those things.

Part of the Digital Transformation Toolkit 24

Where does Big Data come from?
The sources for big data generally fall into one of three categories

This category includes data that reaches your IT systems from a web of connected
Streaming data devices, often part of the IoT. You can analyze this data as it arrives and make decisions
on what data to keep, what not to keep and what requires further analysis.

The data on social interactions is an increasingly attractive set of information,

Social media particularly for marketing, sales and support functions. It's often in unstructured or
data semistructured forms, so it poses a unique challenge when it comes to consumption and
analysis.

Massive amounts of data are available through open data sources like the US
Publicly
government’s data.gov, the CIA World Factbook or the European Union Open Data
available data
Portal.

Part of the Digital Transformation Toolkit 25

Overarching Digital Transformation Plan in Excel
You’ll see below a screenshot of our Overarching Digital Transformation Plan.
For more details, open the excel document “Digital Transformation Plan”

26
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See below 4 screenshots from the Phase 2.

Project Financials in Excel Change Impact Assessment

Strategic Objectives and KPIs Lean Business Case

27
In the next slides, you’ll see a small preview of the Phase 3

Phase I: Assess the Environment,

Phase II: Define & Communicate the Phase III: Implement, Track & Manage
Performance and Digital Maturity of the
Digital Transformation Strategy & Plan Progress
Organization

1. Market analysis 1. Digital maturity model - Target state 1. Governance rules

2. Competitor analysis 2. Strategic objectives, team & budget 2. Digital transformation strategic objectives and
KPIs status
3. Company performance 3. Technologies to consider to reach our digital
transformation strategic objectives 3. Digital transformation plan status
4. SWOT summary of the key business insights
4. Potential initiatives to reach our strategic 4. Detailed status of each initiative
5. Digital maturity model - Current state
objectives
5. Change management strategy and plan status
5. Business cases and financial models
6. Communication strategy and plan status
6. Digital transformation initiatives prioritization
7. Digital transformation lessons learned
7. Digital transformation plan
8. Detailed plan for each initiative
9. Change management strategy and plan
10.Communication strategy and plan

28
Dashboard - KPIs Status
Replace this text with the key takeaway of this Powerpoint slide.

Digital Transformation Strategic Objectives KPIs Targets Status

• e.g. Sales from BU 1 • e.g. +15%

Insert the Digital Transformation Strategic
Objectives #1 • Insert KPI • Insert Target
(e.g. Increase sales)
• Insert KPI • Insert Target

• Insert KPI • Insert Target

Insert the Digital Transformation Strategic
Objectives #2 • Insert KPI • Insert Target
(e.g. Decrease cost)
• Insert KPI • Insert Target

• Insert KPI • Insert Target

Insert the Digital Transformation Strategic
Objectives #3 • Insert KPI • Insert Target
(e.g. Increase customer satisfaction)
• Insert KPI • Insert Target

• Insert KPI • Insert Target

Insert the Digital Transformation Strategic
Objectives #4 • Insert KPI • Insert Target
(e.g. Increase employee satisfaction)
• Insert KPI • Insert Target

Significantly behind target Slightly behind target Meeting target or above target

29
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See below 4 screenshots from the Phase 3.

Governance Rules Weekly Meeting Agenda

Dashboard for each Initiative Initiative Status Report

30
 Structure of the Toolkit
The Digital Transformation Toolkit includes 400 Powerpoint slides and 30 Excel sheets categorized in 4
folders that you can download on your device immediately after your purchase.

+
400 editable Powerpoint slides* 30 editable Excel sheets*

1 2 3 4

Overview and 3-phase approach Phase I: Assess the Environment, Phase II: Define & Communicate the Phase III: Implement, Track &
Performance and Digital Maturity of Digital Transformation Strategy & Manage Progress
the Organization Plan

*Please note that the number of Powerpoint slides and Excel sheets listed is the number of unique slides and sheets. For example, a Powerpoint slide
that has been duplicated to facilitate the understanding of our clients only count for 1 Powerpoint slide.

31
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