Digital Transformation Toolkit - Framework, Best Practices and Templates
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The document outlines a digital transformation toolkit developed for organizations to successfully navigate and implement digital changes, emphasizing a 3-phase approach: assessment, strategy definition, and implementation. It highlights the critical success factors for effective transformations and provides insights on key technologies and methodologies that help in prioritizing initiatives. With a growing number of connected devices and the challenges faced in digital transformations, this toolkit serves as an affordable alternative to traditional consulting services.
Digital Transformation Toolkit - Framework, Best Practices and Templates
- 1. Digital Transformation Toolkit Overview and 3-Phase Approach Created by ex-McKinsey, Deloitte & BCG Management Consultants.
- 2. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit at www.slidebooks.com 2 www.slidebooks.com
- 3. 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. 3 2018 2025 2030 22 billion 38 billion 50 billion Source: Statista Number of connected devices worldwide Undertaking a successful digital transformation for your organization is becoming more important than ever
- 4. Context There are 6 core technology trends that make Digital Transformation possible. 4 Social Media Cloud Computing Big Data Internet of Things Cyber- security Mobility Digital Transformation Websites and applications that enable users to create and share content or to participate in social networking (e.g. Facebook, Twitter). The practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions. A development of the Internet in which everyday objects have network connectivity, allowing them to send and receive data. Cybersecurity is the body of technologies, processes and practices designed to protect networks, computers, programs and data from attack, damage or unauthorized access. The use of mobile devices which transformed how people interact, consume information and services, collaborate, and work.
- 5. Problem Transformations are hard, and digital ones are harder 5 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.
- 6. 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. 6 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.
- 7. 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). 7 The Digital Transformation Toolkit includes: Toolkits Tools Templates Step-by-step Tutorials Real-life Examples Best Practices Support from Tier-1 Management Consultants Frameworks
- 8. Objectives The Digital Transformation Toolkit includes frameworks, tools, templates, tutorials, real-life examples and best practices to help you: 8 • 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
- 9. 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: 9 5.An effective and efficient Governance 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 • To have weekly meeting and user-friendly dashboards at the Digital Transformation Program level and at the initiative level • 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 4.A clear Strategy to ensure people adoption of the changes 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: • An impact assessment • A communication plan, a training plan and a coaching plan • A resistance management plan 3.An effective process to prioritize initiatives To effectively prioritize a long list of initiatives, the use of a 2 by 2 matrix with the following 2 dimensions is very useful: • Impact (e.g. Cost savings, Incremental revenue) • Effort (e.g. Time frame required, human resources, financial resources) 2.A simple but comprehensive Business Case for each key initiative Each key initiative needs to have a simple and comprehensive Business Case with key components such as: • The initiative objectives, scope & approach • Expected Deliverables & Business Outcomes • Costs, benefits and net present value 1. A robust Digital Transformation Strategy & Plan A Strategy without execution is a dream. But execution without strategy is a nightmare. That is why it is so critical to first spend some time crafting a robust Digital Transformation Strategy & Plan, which should include key components such as: • The digital transformation strategic objectives • The key initiatives required to reach the strategic objectives • The human and financial resources required to complete the key initiatives
- 10. 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. 10 Phase I: Assess the Environment, Performance and Digital Maturity of the Organization Phase II: Define & Communicate the Digital Transformation Strategy & Plan Phase III: Implement, Track & Manage Progress 1. Market analysis 2. Competitor analysis 3. Company performance 4. SWOT summary of the key business insights 5. Digital maturity model - Current state 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 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
- 11. In the next slides, you’ll see a small preview of the Phase 1 11 Phase I: Assess the Environment, Performance and Digital Maturity of the Organization Phase II: Define & Communicate the Digital Transformation Strategy & Plan Phase III: Implement, Track & Manage Progress 1. Market analysis 2. Competitor analysis 3. Company performance 4. SWOT summary of the key business insights 5. Digital maturity model - Current state 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 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
- 12. The PESTLE Framework will help us analyze the environment in which our Business operates PESTLE Purpose 12
- 13. PESTLE Analysis Replace this text with the key takeaway of this Powerpoint slide. PESTLE S E L Legal • 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 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 P E T 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 Political • 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 Economical • 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 Social • 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 13
- 14. PESTLE Analysis Replace this text with the key takeaway of this Powerpoint slide. PESTLE S E L Legal • 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 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 P E T 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 Political • 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 Economical • 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 Social • 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 14 Insert here 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. 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. 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.
- 15. PESTLE Analysis Replace this text with the key takeaway of this Powerpoint slide. PESTLE S E L Legal • 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 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 P E T 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 Political • 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 Economical • 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 Social • 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 15 Insert here any Technological factors that impact or could potentially impact the Business. Examples: A new software, device, patents, etc. 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. Insert here any Environmental factors that impact or could potentially impact the Business. Examples: the use of plastic bags for goods, the use of electrical cars, customer values, environmental regulations, etc.
- 16. Digital maturity assessment Description (1/2) 16 Level 1 - Basic Level 2 - Medium Level 3 - Good Level 4 - World-class Customer Experience • Only a single channel, which is often a physical store • React to customer needs • Multiple channels but often siloed, with the ecommerce department often seen as a separate entity • Start to proactively answer customer needs, and influence buying decisions • Actively transitioning from a multi channel to an omni-channel model • Proactively answer customer needs, and influence buying decisions • Omni-channel model where channels are integrated, allowing a seamless customer experience • Meet the needs of customers even before they become aware of those needs (with Internet of Things) Data & Insights • Barely no data • Barely no insight • The company has some data • A team of people manually analyze and provide insight to the rest of the company • The company has a Big Data solution gathering a lot of data • Automatic reporting with key insights • Almost a 360-degree view of the customer • The company has a Big Data solution gathering a lot of data • Automatic reporting providing a lot of key insights in real time • A 360-degree view of the customer This digital maturity assessment will help identify where you are today and where you want to be in the future. It includes 10 sections spread in 2 slides, which may have to be updated based on the specificities of your industry and organization. Buy the Digital Transformation Toolkit to unlock content Visit Website Part of the Digital Transformation Toolkit
- 17. See below 4 screenshots from the Phase 1. 17 Company performance SWOT summary of the key business insight Market Profitability Digital maturity model - Current state
- 18. In the next slides, you’ll see a small preview of the Phase 2 18 Phase I: Assess the Environment, Performance and Digital Maturity of the Organization Phase II: Define & Communicate the Digital Transformation Strategy & Plan Phase III: Implement, Track & Manage Progress 1. Market analysis 2. Competitor analysis 3. Company performance 4. SWOT summary of the key business insights 5. Digital maturity model - Current state 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 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
- 19. 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
- 20. Introduction 20 • 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.
- 21. • 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 Situation Executive Summary 21 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 Recommendation An increasingly “digitally friendly world” A low Digital Maturity within Bank Corp A digital model would drive profitable growth A great return on investment Reason #1 Reason #2 Reason #3 Reason #4 • The number of connected devices worldwide will be 50+ Billion in 2020 • The use of the online and mobile channels are becoming increasingly important in the banking industry • The digital maturity of Bank Corp customer experience is low • The digital maturity of Bank Corp operations is low • A digital ecosystem model would generate $150+ million of additional revenue over the next 5 years • A digital ecosystem model would 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 • Investing $100 Million in a digital ecosystem model would generate a 100%+ return on investment
- 22. Situation Bank Corp’s shareholders expect an ambitious compound annual revenue growth rate of 15% over the next 5 years 22 1.00 1.15 1.32 1.52 1.75 2016 2017 2018 2019 2020 Bank Corp Expected Profit (in Billion $) Compound annual revenue growth rate: +15%
- 23. Digital Marketing 3-D Printing Drones Robots Virtual Reality Big Data Artificial Intelligence Cloud Computing Cyber Security Blockchain Internet of Things Augmented reality Technologies to consider to reach our Strategic Objectives Replace this text with the key takeaway of this Powerpoint slide. 23 It is important to have a good understanding 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 Part of the Digital Transformation Toolkit
- 24. Why are we considering the Big Data for our organization? 24 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. 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. The next slides deep dive in each technology Part of the Digital Transformation Toolkit
- 25. Examples of industry using Big Data 25 Government Manufacturing Banking Health care Retail Education With large amounts of information streaming in from countless sources, banks are faced with finding new and innovative ways to manage big data. Big Data and Analytics help banks better understand customers and minimize risk. Big data brings big insights, but it also requires financial institutions to stay one step ahead of the game with advanced analytics. Educators armed with data-driven insight can make a significant impact on school systems, students and curriculums. By analyzing big data, they can identify at- risk students, make sure students are making adequate progress, and can implement a better system for evaluation and support of teachers and principals. When government agencies are able to harness and apply analytics to their big data, they gain significant ground when it comes to managing utilities, running agencies, dealing with traffic congestion or preventing crime. But while there are many advantages to big data, governments must also address issues of transparency and privacy. Patient records. Treatment plans. Prescription information. When it comes to health care, everything needs to be done quickly, accurately, and, in some cases, with enough transparency to satisfy stringent industry regulations. When big data is managed effectively, health care providers can uncover hidden insights that improve patient care. Armed with insight that big data can provide, manufacturers can boost quality and output while minimizing waste – processes that are key in today’s highly competitive market. More and more manufacturers are working in an analytics-based culture, which means they can solve problems faster and make more agile business decisions. Customer relationship building is critical to the retail industry – and the best way to manage that is to manage big data. Retailers need to know the best way to market to customers, the most effective way to handle transactions, and the most strategic way to bring back lapsed business. Big data remains at the heart of all those things. The next 15 slides are self explanatory and do not include any comments or instructions Part of the Digital Transformation Toolkit
- 26. Where does Big Data come from? The sources for big data generally fall into one of three categories 26 Social media data Publicly available data Streaming data This category includes data that reaches your IT systems from a web of connected 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, particularly for marketing, sales and support functions. It's often in unstructured or 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 government’s data.gov, the CIA World Factbook or the European Union Open Data Portal. Part of the Digital Transformation Toolkit
- 27. 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” 27
- 28. See below 4 screenshots from the Phase 2. 28 Project Financials in Excel Strategic Objectives and KPIs Change Impact Assessment Lean Business Case
- 29. In the next slides, you’ll see a small preview of the Phase 3 29 Phase I: Assess the Environment, Performance and Digital Maturity of the Organization Phase II: Define & Communicate the Digital Transformation Strategy & Plan Phase III: Implement, Track & Manage Progress 1. Market analysis 2. Competitor analysis 3. Company performance 4. SWOT summary of the key business insights 5. Digital maturity model - Current state 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 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
- 30. Dashboard - KPIs Status Replace this text with the key takeaway of this Powerpoint slide. 30 Slightly behind target Meeting target or above target Significantly behind target Insert the Digital Transformation Strategic Objectives #1 (e.g. Increase sales) Digital Transformation Strategic Objectives KPIs • e.g. Sales from BU 1 • Insert KPI • Insert KPI Targets • e.g. +15% • Insert Target • Insert Target Insert the Digital Transformation Strategic Objectives #2 (e.g. Decrease cost) • Insert KPI • Insert KPI • Insert KPI • Insert Target • Insert Target • Insert Target Insert the Digital Transformation Strategic Objectives #3 (e.g. Increase customer satisfaction) • Insert KPI • Insert KPI • Insert KPI • Insert Target • Insert Target • Insert Target Insert the Digital Transformation Strategic Objectives #4 (e.g. Increase employee satisfaction) • Insert KPI • Insert KPI • Insert KPI • Insert Target • Insert Target • Insert Target Status
- 31. See below 4 screenshots from the Phase 3. 31 Governance Rules Dashboard for each Initiative Weekly Meeting Agenda Initiative Status Report
- 32. 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. 32 1 2 3 4 Overview and 3-phase approach Phase I: Assess the Environment, Performance and Digital Maturity of the Organization Phase II: Define & Communicate the Digital Transformation Strategy & Plan Phase III: Implement, Track & Manage Progress 400 editable Powerpoint slides* 30 editable Excel sheets* + *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.
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