November 19th, SoftwareAG Innovation Day

Integration, a key enabler for digital transformation Bruno Cardoso [email protected]

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Digital Transformation

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Digital Transformation Technologies in Gartner Hype Cycle

“ The journey to digital business is the key theme of Gartner, Inc.'s "Hype Cycle for Emerging Technologies, 2014. As enterprises embark on the journey to becoming digital businesses, they will leverage technologies that today are considered to be "emerging," 2

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“We are early in our ambitious plan to transform Argos into a digital retail leader. We are seeking to reposition our stores to support a digital future, in which digital channels are the primary interface for customers, but stores continue to be critically important as a national network for product collection and a local presence for local colleagues to provide customer service.” John Walden, Chief Executive Officer, Home Retail Group PLC Home Retail Group, News and media Argos, Argos Press Release, “Argos opens doors on first digital concept store”, November 26, 2013. https://www.homeretailgroup.com/news-and-media/news.aspx?smlbus=1519&article=5225

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Digital Transformation - Trends The digital world and its ramifications have moved from the shadows to centre stage, creating winners and losers in all industries and geographies. Cloud, mobile, social and big data are already central to business thinking, and the next set of digital technologies, trends, opportunities and threats is creating yet another competitive frontier. 2015 Gartner CIO Agenda Report

Increasing adoption of Digital Transformation Around 88% of companies are undergoing a formal digital transformation effort in 2014 and 8 out of 10 executives feel that achieving digital transformation will be critical to their businesses within the next two years.

Increasing contribution of digital on business 90% of business leaders in the US and UK expecting an increasing strategic contribution of IT and digital technologies on their overall business in the coming decade. Capgemini: Transform to the Power of Digital

Altimeter Group Digital Transformation Survey, 2014

Increased investment in new Digital Technologies ‘80% of companies are improving processes that expedite changes to digital properties, ie. website updates new mobile or social platforms, etc.

Chief Digital Officer (CDO) emerging as key leadership role “…In our CEO survey, more than 40% of CEOs said they have a senior leader with “digital” in the job title. Clearly, digital leadership roles are rising, and digital leadership will be very dynamic..”

Altimeter Group Digital Transformation Survery 2014

2015 Gartner CIO Agenda Report

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Digital is moving in at faster pace 51% percent of CIOs are concerned that the digital torrent is coming faster than they can cope, and 42% don’t feel they have the right skills and capabilities in place to face this future. Gartner, Taming the Digital Dragon: the 2014 CIO Agenda

Digital Transformation - Approach Digital Customer Experience

Digital Strategy

Digital Operations

Digital Data Fabric

• Digital transformation often begins with the customer: How to get to know customers better, improve your service levels and digitize the customer experience.

• Enterprise need a clear digital roadmap that is closely linked to business strategy & customer priorities, taking a more comprehensive approach to digital transformation rather than simply bolting digital onto the existing business.

• As companies transform their business models in the face of new digital realities, transforming their operations becomes a prerequisite to successful execution.

• Enterprises need to integrate data from existing sources within the enterprise as well as external sources, to offer a consistent single view of the data model to the organization, and to enable the seamless flow of information.

Digital Transformation

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Integration, a key enabler for digital transformation

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Integration in Digital Transformation – What Researchers Say

The most fundamental technology need for digital transformation is a digital platform of integrated data and processes.. Source: MIT Sloan Management: Digital Transformation: A Roadmap for Billion Dollar Organizations

96% of all respondents believed that “Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an integrated and frictionless customer experience” was an very important part of their Digital Transformation efforts

Everything is integrated and connected. This is the age of integration and without a collaborative, holistic and unified approach it simply doesn’t work, especially in a digital transformation business reality Source: Forrester

The digital channel has touched all industries and is continuing to dramatically impact the way companies conduct their business. The winners will be those who can most effectively align their business model and integrate both digital and conventional products, services and channels..

Source: Altimeter Group Digital Transformation Survey, 2014 Source: PriceWaterCoopers

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Integration Framework in Digital Transformation

Transformation of legacy architecture

Organization readiness assessment for digitization

Digital Customer Experience Roadmap to Digital Enterprise

Process reengineering to meet digitization goals

Digital technology strategy

SMAC infrastructure planning and integration

Multi-channel integration

Data and process integration

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Integration between digital and conventional technology infrastructure

Digital Processes Digital Enterprise Digital Systems & Operations

Digital Data Fabric

Key Technology Challenges in Digital Transformation

How to connect and harness maximum value from existing legacy technology?

How to transform application landscape to be ready for the cloud, for digital and for future?

How to enhance existing technologies for universal access to information from various devices such as mobiles, tablets and kiosks,?

How to effectively integrate emerging technologies and legacy systems?

How to streamline existing processes to create maximum value?

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How to provide unified customer experience on multiple channels?

Source: Forrester, Q1 2014 Digital Experience Delivery Online Survey

Technical Barriers to success on Digital Transformation

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Integration role within Digital Transformation Create end-to-end digitized processes in an integrated platform to meet the digital customers expectation of consistent unified experience Modernization and transformation of existing application landscape to be ready for digital and the future Create an integrated SMAC stack architecture providing for a holistic digital transformation

Role of Integration

Integrating data to offer a consistent single view of the data model and to enable the seamless, real-time flow of information

Create integrated agile IT environment between digital technologies and existing technology infrastructure Seamless integration of multi-channels to provide unified customer experience across all channels

Integrate various digital and personal touch-points such as smartphones and tablets, to enable seamless sharing of data and information

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