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BE THE GRYPHON
FOREWORD
BE THE GRYPHON
Email: infowebsite@sapient.com
Phone: +44 0 207 786 4500
Web: www.sapientnitro.com
Twitter: @sapientnitro
Facebook: https://www.facebook.com/SapientNitro
LinkedIn: https://www.linkedin.com/company/sapientnitro
NIGEL VAZ
GERRY BROWN
Senior Analyst,
Customer Engagement,
Digital Technology
SapientNitro
Ovum
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CONSUMERS' RAPID
UPTAKE AND USE
OF TECHNOLOGY HAS
REVEALED A DIGITAL LAG
WITHIN MANY COMPANIES
We use the term digital business transformation for a reason. The need for leaders now is to consider
how they go about transforming their entire business for a digital world, rather than digitising a piece
of it or adding limited digital revenues as an adjunct. While the two-word term digital transformation
has meant different degrees of change to different organisations, digital business transformation
represents a commercial imperative of an entirely higher order. It compels business leaders to radically
rethink the ways in which their entire organisation will meet consumers whose adoption and use
of technology are, in many instances, significantly more advanced.
BE THE GRYPHON
EUROPES
67BN DIGITAL
BUSINESS
TRANSFORMATION
MARKET
One does not have to look far for evidence of this shift in
power. Juan Olaizola, Chief Operating Officer of Santander
UK, in a recent Financial Times article on digital banking,
was quoted as saying that massive growth in smartphones
means the bank has to respond at a speed that we dont
control a speed previously unknown to banks.
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DIGITAL BUSINESS
TRANSFORMATION AND
THE GRYPHON ZONE
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Figure 1:
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COLLABORATIVE STRUCTURE
Organisational culture and/or defined processes
by which key executive stakeholders and functions
unite behind digital business transformation
ALL-EMBRACING APPROACH
A holistic, company-wide commitment
to reshape and retool for a digital future
DIGITAL CORE
Digital as a core competence
not a bolt-on
CUSTOMER-CENTRIC
DISRUPTIVE CULTURE
VISIONARY LEADERSHIP
A CEO and leadership team that leads digital
business transformation within the organisation
and drives ongoing change and improvements
HYBRID SKILLS
Marketing and technology skills
and roles are increasingly hybrid
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Figure 2:
22%
A STRATEGIC INTENT
44%
THE EFFECTIVENESS
OF DIGITAL BUSINESS
TRANSFORMATION
STRATEGIES WILL BECOME
AN UNDERLYING SURVIVAL
AND SUCCESS FACTOR
Digital business transformation means transforming an entire business for a digital world, rather than
digitising piecemeal. For would-be Gryphon organisations, digital business transformation is a wholecompany issue an all-embracing, top-to-bottom approach to adding digital technologies and digital
competencies that will positively disrupt their business and grow their market opportunity.
A BOARDROOM DISCUSSION
34%
N=50
Source: A commissioned study conducted by Ovum on behalf of SapientNitro
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FINDING
Most organisations are still in their early stages of planning
digital business transformation. In reality, few are advanced
and most are assessing their strategies and evaluating how
to progress from legacy enterprise systems, departmental
systems and point solutions towards an integrated wholecompany digital capability.
RECOMMENDATION
Large organisations need urgently to begin a board-level
discussion to create a digital business transformation
strategy and intent. The effectiveness of digital business
transformation strategies will become a key underlying
survival and success factor for large organisations to 2020
and beyond. Such transformations are essential if businesses
are to deliver customer-centricity. The impact of new digitally
empowered players is creating new expectations of service
and experience across every category.
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Figure 3:
NO
32%
YES
68%
N=50 / N = 34
Source: A commissioned study conducted by Ovum on behalf of SapientNitro
CMO
26%
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FINDINGS
Such is the importance of digital business transformation
that all 50 CEOs interviewed considered themselves to be
the leader of their companys digital business transformation
agenda. Digital business transformation is perceived as
one initiative that cannot be delegated down into the
management ranks.
Over two-thirds of CEOs nominated a lieutenant to lead the
digital business transformation charge. In nearly half (47%)
of these instances, the CIO or CTO was nominated, followed
by the CMO with 26% of responses.
RECOMMENDATION
Digital business transformation is much wider and larger
than singularly a marketing or IT issue. The CEO, the
CIO / CTO and the CMO should be the key leaders jointly
responsible for the overall success by combining the best
of their constituent parts. While the CIO / CTO is closer to
process and technology and can drive organisational change,
the CMO must provide a significant contribution towards the
business and customer requirements gathering process.
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Figure 4:
BUSINESS-RELATED CHALLENGES
SPEED OF
IMPLEMENTATION
IT ARCHITECTURE
BUSINESS KNOWLEDGE
DIGITAL EXPERTISE
DIGITAL
TRANSFORMATION
BUSINESS CASES
AND ROI
SHADOW IT
DIFFERENCES IN
EXPERTISE AND
CULTURE BETWEEN
MARKETING AND IT CAN
BE HARNESSED TO A
MORE POWERFUL END
Organisations that fully embark on digital business transformation journeys understand that the
experience of the customer is the most reliable measure of brand performance. Separation between
the way that a brand communicates with customers and their experience of the brand is now an
anachronism; experience is forcing the brand promise, technology and operational capability within the
business to come together.
This creates some tensions between the juxtaposed functions of marketing and IT; one is the promise
of the business, the other is the delivery of that promise which touch at the point of experience.
Many CMOs understand the issues a business needs to go through owing to their proximity to
customers, but it is rarely they who are entrusted with transformation. The CIO/CTO is typically
someone who can facilitate internal change, as they are closer to process and technology.
IT and marketing co-existence is important as marketing departments and operations rarely have
the capabilities, capacity and appetite to devise a strategic IT vision and build an architectural IT
platform. However, digital business transformation requires in-depth knowledge of business functions
and business processes, which IT seldom possesses. IT departments can therefore only effectively
implement digital business transformation by collaborating with end-user departments. Internal
collaboration is improving, especially in regards to developing joint digital business transformation
business cases.
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FINDINGS
Fundamental tensions between the differing cultures and goals
of IT and marketing remain. However, at the organisational
level there is improved understanding of the need for the CIO
and the CMO to collaborate in order to succeed with digital
business transformation.
CIOs and CTOs are equipped to deliver the technical solutions,
while CMOs understand their customers needs. Hence
CIOs lead digital business transformation projects, whereas
CMOs mostly act as influencers and recommenders. CEOs
underwrite and hold overall governance for digital business
transformation.
RECOMMENDATION
Collaboration and communication between the CIO and
the CMO are important to achieve Gryphon-like power
in balance. Organisations should endeavour to build and
maintain a culture in which collaboration between these
two key executive roles is natural and frictionless. A more
formal approach is to develop a joint performance charter that
commits both parties to budget and resource investments in
the form of a joint service level agreement (SLA). SLAs need
to be visible to the management team and should define
digital business transformation roles, responsibilities, and
performance and KPI commitments.
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Figure 5:
MARKETING
CHIEF MARKETING
TECHNOLOGY OFFICER
HEAD OF DIGITAL
CHIEF DIGITAL OFFICER
CHIEF CUSTOMER OFFICER
IT
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FINDING
A minority (9%) of organisations nominated an executive to
drive the digital business transformation agenda whose title
or remit was non-traditional neither marketing nor IT, nor
specific to the transformation agenda. The emergence of a
host of hybrid roles and job titles reflects an understanding
that marketing and technology must be properly connected
at an executive, as well as at an organisational, level
and that traditional structures and siloes run contrary to
successful digital business transformation.
RECOMMENDATIONS
Customer experience, as a paramount indicator of brand
performance, is forcing brand promise and technology
together. At an organisational level it is crucial to develop
and embrace hybrid skill sets. Whether through new roles
such as CMTO or through structured co-operation between
marketing and IT, this hybrid approach represents the
Gryphon ideal.
CMOs need more aggressively to step up to the plate and
provide tangible digital business transformation project
scoping contributions. A key business outcome that CMOs
should own is to empower all customer touchpoints to deliver
the brand narrative and ensure that customer experience is
universally excellent and differentiated.
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Figure 6:
NEW
6%
The vast majority of CEOs (94%) consider the appointment of an existing experienced manager as the
digital business transformation czar to be the correct approach. The internal recruitment approach
enables the utilisation of existing knowledge of the business, its processes and its leaders and will
help to ensure a harmonious fit of digital products and services to meet the organisations needs. If, in
combination with the CEOs strategic leadership of the digital business transformation programme, an
organisation can create the culture and conditions for positive disruption of their business, then this
internal recruitment approach can be powerful. However, the risk is that an internal appointment will
always stay within the guard rail and will not naturally be inclined, or pushed, to step forward and ask
the bigger existential questions about the future of the business. In this instance, existing processes are
digitized and the benefits to be gained from re-engineering business processes as part of a true top-tobottom digital business transformation will be lost.
EXISTING
94%
N = 34
Source: A commissioned study conducted by Ovum on behalf of SapientNitro
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ORGANISATIONS
SETTING THEMSELVES ON
A SUCCESSFUL TRACK
TO DIGITAL BUSINESS
TRANSFORMATION ARE
ACTIVELY AUGMENTING THEIR
EMPLOYEES SKILL SETS
BE THE GRYPHON
FINDING
Most CEOs prefer internal executives rather than to
recruit external specialists to run their digital business
transformation programmes. While an internal executive
appointment will know the business and should be able
to leverage their credibility and contacts within the
organisation, this approach may limit the scope and
effectiveness of the digital transformation agenda.
RECOMMENDATION
A defined and active recruitment and learning development
process, aimed at counterbalancing any bias towards risk
aversion among the employee base, will equip organisations
with a talent profile better geared towards an entrepreneurial
mentality and the capability to do things differently, faster
and more disruptively.
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Figure 7:
THIS YEAR
20%
64%
5 YEARS
2%
ORGANISATIONS THAT
ARE IN PURSUIT OF THE
GRYPHON ZONE AND ITS
REWARDS UNDERSTAND
THAT THEY ARE ALWAYS IN
PURSUIT OF A NEW GOAL
Digital business transformation is akin to permanent disruption a self-imposed regimen that
recognises it not as a one-off activity but as an ongoing commitment to adapt in line with changing
customer needs and expectations. A good example of a strategic digital business transformation
programme is the UKs Nationwide Building Society, whose 1bn investment in digital business
transformation has now been running for more than five years. Insurance company Avivas digital
business transformation programme has also been active well in excess of this timeframe. This
is the kind of customer commitment required to truly enact organisation-wide digital business
transformations, which should include digital platform procurement, customer experience and journeys
management, cross-channel marketing capabilities and integrated customer data management.
2 YEARS
14%
N = 50
Source: A commissioned study conducted by Ovum on behalf of SapientNitro
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SUCCESSFUL DIGITAL
TRANSFORMATION IS NOT
A ONE-OFF ACTIVITY BUT
AN ONGOING COMMITMENT
TO ADAPT IN LINE WITH
CHANGING CUSTOMER NEEDS
AND EXPECTATIONS
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FINDING
Timescales for digital business transformation are as yet
poorly defined. When asked about timescales, nearly twothirds of CEOs (64%) answered this year. This reflects CEOs
urgency to get things moving, more than an understanding
of the time and budgets required for an iterative organisationwide digital business transformation.
RECOMMENDATION
Digital business transformation is no short-term fix. Leaders
need to commit significant resource levels over a five- to
10-year period and seek to elicit cultural change. However,
quick wins will be forthcoming and incremental benefits will
materialise as the programme progresses. An early stepchange in efficiency and effectiveness is not uncommon.
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RECOMMENDATIONS
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APPENDIX
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RESEARCH METHODOLOGY
DISCLAIMER
FURTHER READING
ICT Enterprise Insights 2014/15 Global: IT Strategy
(August 2014), PT0040-000001
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