Please see below selected recent intelligence about transformation. This is a synthesis of major recent developments at competitors, business schools, thinktanks, media, commentators, and other key influencers.
- The results of KPMG's 2016 Global Transformation Study point to three common elements among organisations that are in the process of, or completed successful business transformations. The study, which surveyed more than 1,600 executives from multinational companies in 16 countries, found that 96 percent of organisations are in the midst of business transformation planning or execution.
- Harvard Business Review research found that only 26% of major organisational transformations succeed. Technology-based transformations involve a similar commitment - e.g. helping people learn to use analytics effectively can take up to 75% of a project’s time - with the remainder going to the technical tasks of data cleaning and model design.
- EY launched four new centres of excellence to help companies in the Asia Pacific region improve business performance and digital transformation. The Singapore based hub will contribute to industry capability development by providing innovative services in digital business transformation strategy, cybersecurity, analytics and manufacturing. EY professionals at the centres will deliver integrated capabilities and industry insights in supply chain strategy; procurement; operating models; risk and finance transformation; and people and organisation change to help companies innovate and improve business performance.
- The most successful enterprises are those willing to harness the benefits of transformation, according to 86% of business leaders surveyed by Google, yet 57% say the pace of change continues to take them by surprise. A new Raconteur report explored how data analytics is key to successful transformation, how to keep stakeholders onside while maintaining the momentum of change and the urgent need to reinvent or die. It also shows how to manage cultural change, ensuring staff are engaged and morale boosted.
- EY looked at the disruptive potential of the sharing economy in 'Get ready: open to sharing means open for business'. EY said, that sharing economy business models may change the very nature and structure of the corporation. The potential for the sharing economy to disrupt most industries, globally, is unprecedented. Sharing economy business models have been born into a world wholly unprepared for them. Many existing rules don’t apply. But, ready or not, when a sharing economy opportunity knocks on your door, you’ll need to know how you should answer.
- See also: Capgemini: Technology led transformation in banking and EY: Transformation through the cloud: How insurers can leverage proven approaches to reduce costs and improve performance.
- As part of PwC's phased approach to promoting our 19th Annual Global CEO Survey 'Redefining business success in a changing world', Global Thought Leadership shared new social media assets and messages to promote the Transformation theme from our report.
- A report from Accenture argued that few businesses grasp how dramatic the changes arising from new platform-based ecosystems will be. The threat they pose? Unexpected new competitors seizing advantage. The opportunity? Previous technology disruptions were often unpredictable, but now, enterprises have a line of sight to track growing ecosystems and anticipate their impacts. Forward-thinking leaders can get ahead of the game, develop their ecosystem strategies, and ride the results into new markets.
- In 'Transforming: technology, innovation and talent', PwC noted that CEOs are using technology to get closer to consumers but are being challenged to align all parts of their operating model behind customer strategies. Some companies are bridging what we call an ‘execution gap’ by shaping their entire value proposition, strategy, operations and capabilities tightly around a strong commitment to what they stand for. They’re also looking to build better innovation and people capabilities to address changing customer expectations.
- The head of cloud UK and Ireland for IBM believes that digital transformation is imminent for the healthcare industry. The driver is cloud computing, he argues: “It provides an infrastructure that allows hospitals, medical practices, and research facilities to tap improved computing resources at lower initial capital outlays. Additionally, cloud environments lower the barriers for innovation and modernisation of HIT systems and applications.” Separately, Elite Business Magazine profiled some UK start-ups that are harnessing the power of digital to solve some of life’s most serious problems. The three companies profiled are all developing technology that allows people to manage their own health more effectively.
- In 'Eight Ways To Make Digital Transformation Stick', Capgemini argued that everyone talks about how they’re becoming digital enterprises, but if you peek behind the curtain, you will see a lot of analogue going on. That’s the gist of the firm's recent survey of 274 executives, conducted in collaboration with MIT Centre for Digital Business. The study found that few companies - only 7% - have successfully used digital technologies to evolve their organisation into truly digital businesses. Those that have achieved true digitisation were twice as likely to be reporting industry-leading growth, profitability and customer satisfaction than their competitors.
- In 'A Leader’s Guide to “Always-On” Transformation' Boston Consulting Group argued that, for leaders in large corporations, business today often feels like being on a steep treadmill with the speed control set to max. Three months ago, the company may have finished a cost-reduction transformation to remove management layers and streamline operations. Before it is even clear that the changes have taken root, a disruption in Asia requires implementing a new go-to-market model for several countries. And right around the corner is another large-scale transformation effort, using new digital technology to improve the delivery of services and tap new revenue streams
- Deloitte Australia is continuing its aggressive push into the technology industry, acquiring cloud consultancy Cloud Solutions Group. The deal is its third tech company acquisition since June, having also bought Dataweave and Qubit. The acquisitions are all part of Deloitte's efforts to reposition itself to provide clients with an all-in-one business transformation solution. Deloitte Australia's consulting managing partner Robert Hillard told The Australian Financial Review that the tech business shopping spree has been driven by its clients' needs.
- EY announced that the SAP teams from Avenzia AG - a 20-strong SAP consultancy with operations in Switzerland and Germany - had joined Ernst & Young AG in Switzerland. Avenzia has been a leader in SAP S/4 design and HANA innovation, working with leading firms in insurance and banking. The acquisition is the first of its kind for the Swiss EY Financial Services Advisory practice, and it is part of EY’s continued investment and growth in Switzerland and globally. EY plans to grow its global system-enabled transformation services to over 10,000 professionals by 2020, both organically and through continued acquisitions, and has focused on its clients’ finance transformation agenda. This acquisition follows others by EY member firms in related areas, such as InteGRC (a governance, risk and compliance consultancy in the Netherlands), Seren (a UK digital consultancy) and J&M, a leading technical delivery consultancy in Germany.
- A new IDC study examined the market for digital transformation professional services, which is forecast to grow rapidly - with an 18.7% CAGR, this market is expected to reach $197 billion by 2019. The digital transformation professional services market has continued to evolve and grow as organisations of all sizes look for innovation and growth," claimed IDC's research director for IT Consulting and System Integration Research. "In the past, projects have mostly treated each of the four major subsegments of cloud, analytics, mobile, and social as discrete projects; however, leading companies are now integrating two or more of these enabling technologies into single projects.
- This is not the first time that technology has transformed business, argued the Financial Times. When supply chains were computerised in the 1980s, chief executives had to oversee complex systems that had been mere curiosities a few years earlier. Few had the wherewithal to do it themselves. But the best understood the challenge, and how to build a team that was equal to it. Thirty years on, that kind of automation seems mundane compared with the dramatic change we are now seeing in consumer habits. If our customers want to interact with us via smartphones and tablets as well as in person, then we had better get over the idea that we preferred them as simpler souls.
- Forces that “have disrupted so many businesses, from steel to publishing, are starting to reshape the world of consulting”, a group of academics wrote in a seminal article in Harvard Business Review in 2013. Two years on, disruption is well under way, fuelled by the impact of technological change across the business world. Where it will lead is uncertain, argued the Financial Times, but already this disruption is provoking shifts in the strategies of the industry’s main organisations, including the “Big Four” accounting and advisory firms — Deloitte, PwC, EY and KPMG — and strategy Dconsultancies such as McKinsey, Bain and Boston Consulting Group.
- Deloitte Australia is continuing its aggressive push into the technology industry, acquiring cloud consultancy Cloud Solutions Group. The deal is its third tech company acquisition for Deloitte since June, having also bought Dataweave and Qubit. The acquisitions are all part of Deloitte's efforts to reposition itself to provide clients with an all-in-one business transformation solution. Deloitte Australia managing partner of Deloitte Consulting Robert Hillard told The Australian Financial Review the tech business shopping spree has been driven by its clients' needs.
- To build advantage, organisations must do more than just change, claimed BCG. They must transform. As technology’s role in business becomes ever more important, transformations will increasingly be underpinned by significant technology programs. In such technology-enabled transformations, IT leaders need two different strategies to ensure success. One is a strategy for delivering significant changes, such as digitising operations, replacing or modernising systems, and standardising infrastructure and applications. As part of this strategy, IT leaders must also develop the necessary tactics, multiyear roadmaps, and plans to deliver the technology to support the business transformation. The second strategy, which is often overlooked, must ensure that the IT organisation itself has the right functional capabilities to drive and sustain the transformation.