Digital transformation for the next decade
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The document discusses key digital transformation trends for the next decade, highlighting five major trends: composite architectures, algorithmic trust, technologies beyond silicon, formative AI, and digital representation of individuals. It emphasizes the importance of organizations adapting to these trends through cultural shifts, innovative partnerships, and a focus on agile structures. Additionally, it outlines nine organizational imperatives necessary for navigating these changes effectively, including defining purpose, enhancing decision-making, and fostering a talent-centric approach.
Digital transformation for the next decade
- 1. @sudiptal 1 DIGITALTRANSFORMATION TRENDS FORTHE NEXT DECADE Sudipta Lahiri Head of Engineering and Products Digite Inc.
- 2. @sudiptal About Digite ■ Best-in-class products covering Lean-AgileALM, Project/Portfolio Management – 900,000+ users running over $30B worth projects across Consulting, Professional Services and Enterprise IT organizations 2
- 3. @sudiptal 3 DIGITALTRANSFORMATION ISTHE PROCESS OF USING DIGITALTECHNOLOGIES TO CREATE NEW — OR MODIFY EXISTING — BUSINESS PROCESSES, CULTURE, AND CUSTOMER EXPERIENCESTO MEET CHANGING BUSINESS AND MARKET REQUIREMENTS Salesforce.com 3
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- 6. @sudiptal The MacroTrends… Climate Civil, Civic, and Equality Movements Shifting Globalization Dynamics COVID Open innovative partnership ecosystems 6
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- 9. @sudiptal The 4 micro trends… Workforce Shifts 9
- 11. @sudiptal ■ Distills > 1,700 technologies… ■ That will significantly affect business, society and people over the next 5-10 years ■ 5 key trends 11
- 12. @sudiptal Hype CycleTrend 1: Composite architectures ■ Rapid changes and decentralization will force organizations to shift to more agile, responsive architectures. ■ A composite architecture is made up of packaged business capabilities built on a flexible data fabric. ■ Modular design enables organizations to “recompose” when needed (during a global pandemic or economic recession) ■ 4 core principles: Modularity, efficiency, continuous improvement and adaptive innovation ■ Trends in this bucket include EmbeddedAI, Data Fabric, Private 5G, 12
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- 17. @sudiptal Hype CycleTrend 2: AlgorithmicTrust ■ Increased amounts of consumer data exposure, fake news and videos, and biased AI, have caused organizations to shift from trusting central authorities (government registrars, clearing houses) to trusting algorithms. ■ Algorithmic trust models ensure the privacy and security of data, provenance of assets, and the identities of people and things. ■ “Authenticated provenance” is a way to authenticate assets at source and ensure they’re not fake or counterfeit. ■ Other trends in this category include differential privacy, responsible AI and explainableAI. 17
- 18. @sudiptal Ethical AI, Responsible AI, Explainable AI, Emotional AI… 18
- 19. @sudiptal Hype CycleTrend No. 3: Beyond silicon ■ “DNA computing and storage” use DNA and biochemistry in place of silicon or quantum architectures ■ Data encoded into synthetic DNA strands for storage and enzymes provide the processing capabilities through chemical reactions – InJune 2019, 16 GB of text fromWikipedia's English-language was been encoded into synthetic DNA. – Still rudimentary, expensive and with technical barriers – DNA computing and storage will transform storage, processing parallelism and computing efficiency. – Leading to DoT (DNA ofThings) ■ Other trends in this category include Biodegradable sensors and carbon-based transistors. 19
- 20. @sudiptal Hype CycleTrend No. 4: Formative AI ■ Formative AI - AI that is capable of dynamically changing to respond to a situation. ■ GenerativeAI - AI that can create new novel content (images, video etc.) or alter existing content. – The new artifacts are similar to, but not exactly the same as, the original. – UseCases in drug discovery and synthetic data generation — and even AI-generated artwork — are also increasing in popularity. – Also responsible for Deep Fakes ■ Other trends in this bucket include composite AI, differential privacy, and self-supervising learning 20
- 21. @sudiptal Hype CycleTrend No. 5: Digital me ■ From health passports to digital twins, as technology integrates with people, there are more opportunities to create digital versions of ourselves. – These digital models represent humans in both the real and virtual worlds. ■ BMIs are brain-altering wearables that enable two-way communication between a human brain and a computer or machine interface – Wearables or implants that monitor EEGs (electrical activity in the brain) and individuals’ mental states. – Bidirectional BMI (versus regular) - modify the mental state by using electrostimulation – Use cases likes boosting alertness in a fatigued employee or changing the mood of an irritable teacher by applying stimuli... – The negative: vulnerability 21
- 22. @sudiptal ■ In closing, the 5 Key Trends: – Composite Architectures – Trust in Algorithms – Beyond Silicon – Formative AI – Digital Me 22
- 24. @sudiptal 9 imperatives to be able to respond to these “changes” around us… 24
- 25. @sudiptal Imperative 1:Take a stance on purpose ■ Strengthen your purpose by defining “Who are we” ■ 3 parts: – Clear on purpose – Know how they create value/ why they’re unique – Create strong and distinct cultures that help attract and retain the best people. ■ The rise of ESG companies! ■ Reinforced through meaningful or even symbolic actions – Amazon: the representation of a customer in every meeting – CVS: stop selling tobacco product – “helping people on their path to better health” ■ People who say they are “living their purpose” at work are four times more likely to report higher engagement levels than those who say they aren’t 25
- 26. @sudiptal Imperative 2: Sharpen your value agenda ■ Can you show how you the organization will deliver value? ■ Build a “Value” agenda – a Map that disaggregates a company’s ambitions and targets into tangible organizational elements such as business units, regions, product lines, and even key capabilities. ■ Use the value agenda to focus the organization's effort and instill a sense of what really matters to every employee – Consider how Apple rallies itself behind creating the best user experience… from Design to Packaging! – Apple has a Design team just for packaging - to ensure that the experience of opening the box elicits the right emotional response 26
- 27. @sudiptal Imperative 3: Use Culture as the secret sauce ■ If why explained the purpose and a clear what explained the value agenda, the next normal defines the how - the Culture ■ Broad themes don’t cut it… it can't just exist on slogan painted walls or in catchy email signature lines ■ Culture plagiarists be warned - culture is hard to copy ■ Culture is specific observable behaviors that all levels of the company adhere to. ■ Don't wait for the organization/HR - do it in your circle of influence – Amazon's 2-pizza rule shows their culture of keeping the teams small – Start without a PPT but with silence for all people to read the "pre-meeting" memo. ■ Speed is both a preoccupation and a cultural bias; Covid has made Speed a priority ■ Focus on the company's edges where employees are close to customers! (…. think SUPPORT!) 27
- 28. @sudiptal Imperative 4: Radically flat structure ■ Business Complexity != OrganizationComplexity ■ Fitter, flatter, faster and far better at unlocking value! ■ Flatten the organization; adopt the simplest P&L structure ■ Don’t focus on boxes and lines – focus on connectivity: who works on what with whom! ■ Haier is an organization that moved away from hierarchies towards emergent, agile teams – No layers, no bosses, no middle-management - but it’s not free for all! – 1000s of microenterprises - small flexible teams that form by mutual selection - collaborate over network of platforms and people to accomplish the company's goals 28
- 29. @sudiptal “Helical” structures ■ Balance between Flexibility and Agility, between centralization and decentralization ■ Reduce complexity; embrace agility ■ These managers are neither “primary” nor “secondary,” 29
- 30. @sudiptal Imperative 5:Turbocharge decision making ■ Requires a system that allocates decisions to the right executives, teams, individuals and even algorithms – Top team: Focus on core business decisions that define the initiative central to the value agenda – Next level: Focus on resource/talent allocation for those initiatives – Majority decisions delegated to the lowest level possible, giving employees at the company's edge, accountability for the decisions they are best equipped to make. ■ Covid has forced organizations to turbo charge their decision making out of necessity ■ "We were making a month's worth of decisions every day" – So, organizations had the muscles to accelerate decision making. – Need to strengthen and flex those muscles from crisis to a redesigned decision making process for the future 30
- 31. @sudiptal Imperative 6:Treat talent as scarcer than capital ■ The bedrock principle:Talent is scarcest resource ■ Inclusion is critical: – 39% leave a job due to perceived lack of inclusion – Companies in the top quartile of racial/ethnic/gender diversity at the Executive level are 26-25% more likely to have above average profitability than companies in the bottom quartile. ■ Netflix prioritizes STARS in every position and at every level.This enables their highly autonomous culture. – They actively counsel out "adequate" performers. ■ Rely on marketplaces to match skills to projects 31
- 32. @sudiptal Imperative 7: An ecosystem view ■ Companies pushed for gaining leverage and controlling the supply chain ■ Increasingly, value is created through networks where partners share data, code and skills - where community of businesses create value and antifragility together ■ Top companies now embrace (and laggards struggle to accept) that the source of value will be changing constantly - in ways that cannot be tapped solely by a company's traditional, core business. ■ In 2014,Tesla took a seemingly radical decision to open source its patents and encourage other companies to use its intellectual property - a brilliant model of ecosystem-oriented decisions – Tesla recognized that it couldn't grown without partners that would build charging stations and offer services to create the infrastructure to support EV. It put itself in the center of the exploding ecosystem of partners, laying the groundwork for its explosive growth. 32
- 33. @sudiptal Imperative 7: Adopt an ecosystem view ■ Organizations needs to view partners as extensions of themselves. ■ Partnerships develop the antifragility that helps the ecosystem weather shocks ■ Successful companies need to excel at blurring boundaries, taking a systems view, rather than mechanistic one and embracing fluidity over fixed plans. ■ Amazon encouraged the formation of new delivery start-ups by launching a last mile delivery program that offered top performing employees seed money, leased vans and training. – While these partners are self-employed, Amazon views them as both an extension of their logistics ecosystem and a new form of home-grown partnership. ■ J&J JLABS provides support and resources on compliance, markets, science and other topics to promising start-ups. 33
- 34. @sudiptal Imperative 8: Build data-rich tech platforms ■ DATA ISTHE BUSINESS…. but…. ■ Need compelling approaches for data governance, redesign processes as modular application, tap the benefits of scalable cloud based technology, and support all this through variable-cost technology budgets that are reallocated dynamically. ■ Netflix: from a small mail-in provider of DVDs to a global platform, streaming service and content creator, was achieved by leveraging its user data – Its recommendation engine accounts for 80% of time customers spend streaming Netflix content 34
- 35. @sudiptal ■ Empowered workforce that understands "fail fast, learn, repeat" ■ A mindset of continuous learning that encourages people to adapt and reinvent themselves to meet shifting needs. ■ From "know it all" to "learn it all". ■ Google 20% time policy… – Such policies signal to the entire organization that learning, experimentation and innovation are part of everyone's day job - not just for a specialized group. ■ One approach does not resonate with all; use different approaches to appeal to different segments of your population Imperative 9: Accelerate learning as an organization 35
- 36. @sudiptal Organizations are moving in this direction… 36
- 38. @sudiptal Thank you for your time today... ■ For any questions or clarifications, reach me at: – @sudiptal – [email protected] – [email protected] – http://sudi-thoughts.blogspot.in 38
Editor's Notes
- #8: Not just that… but future generations have to pay significantly more in taxes for this ballooning interest payments! Spending patterns
- #9: Not just that… but future generations have to pay significantly more in taxes for this ballooning interest payments! Spending patterns
- #20: … for its high storage density. Since DNA can store data far more densely than silicon, you could squeeze all of the data in the world inside just a few grams of it.
- #22: BMI: Brain Machine Interface
- #33: Organizations needs to view partners as extensions of themselves. Partnerships develop the antifragility that helps the ecosystem weather shocks Successful companies need to excel at blurring boundaries, taking a systems view, rather than mechanistic one and embracing fluidity over fixed plans.