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DIGITAL
TRANSFORMATION
By Hai Pham
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HAI PHAM

1. ITLC is my brother!
2. Business Technology
Consultant
3. Funny boy ;-)
4. https://www.facebook.
com/haipham.openco
nsultant
5. haipham@openconsu
ltant.vn
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CONTENT

• The stories of digital transformation

• What is digital transformation?
• Digital transformation governance
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THE STORIES OF DIGITAL

TRANSFORMATION
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1. Starbucks
Company Overview
• Coffee business
• The world largest specialty food retailer
• One of the most globally recognized brand
• Billion dollar enterprise

Problems & Opportunities

“Everything we are doing in digital is about enhancing and
strengthening those connections with our customers in only the way
that digital can and only the way that Starbucks can”
- Adam Brotman - Chief Digital Officer
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1. Starbucks
Strategies/ Actions
• Organize digital capabilities
 CIO created “Starbucks Digital Ventures” as an internal
incubator for digital technology

• Leverage mobile channel to enhance customer’s

Starbucks experience
 Mobile payment via Square payment system
 Integrate application with Apple’s native Passbook
feature, which consolidates ticket, coupon and loyalty
cards information on iPhone for convenient access.
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1. Starbucks
Strategies/ Actions
• Engage customer via social media
 Use social media to fuel customer-driven innovation via
“My Starbucks Idea” site to collect over 50 thousand
customer-submitted ideas to improve products,
customer experience and corporate initiatives

• Bridging offline and online customer experience

 The “Starbucks Digital Network” offers in-store
customers premium digital content delivered via
free WiFi connection.
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1. Starbucks
Results
• “Digital has to help our store partners and help the company be the
way we can tell our story, build our brand, and have a relationship
with a customer”.
Adam Brotman – CDO

• Reduce transaction charges, lower operating costs

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2. Walmart
Company Overview
• The world’s largest company by revenue
• Biggest private employer
• The world largest grocery retailer in U.S

Problems & Opportunities

• In 2011, Walmart was struggling to break new ground with online
business
• E-commerce site was lacking intuitive search and unable to
connect with store or supply chain
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2. Walmart
Strategies/ Actions
• Established Global eCommerce Division in 2010
 Run ten websites worldwide
 Build and test technology at WalmartLabs

• WalmartLabs
 Digital innovation center
 Idea incubator
• build products that seamlessly integrate the online and in-store
shopping experiences for millions of customers
• mobile app with personalized experiences such as ShopyCat, Goodie
• Focus on Digital & Offline
• “Save money. Live better”
• Social media + Big data >> Personalize customer experience
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2. Walmart
How Big Data Analysis helped increase
Walmart’s Sales turnover?
Walmart started making use of
big data analytics much before
• 245 million customers visiting 10,900 the term Big Data became
stores popular in the industry
• 10 active websites across the globe

 Walmart processes multiple Terabytes of new data

• In 2012, 10 and petabytes of historical data every day.
node Hadoop cluster to a
250 node Hadoop cluster.  The analysis covers millions of products and 100’s of
millions customers from different sources.
• 10 different websites into a  The analytics systems at Walmart analyse close to
single website so that all the 100 million keywords on daily basis to optimize the
unstructured data generated bidding of each keyword.
is collected into a
new Hadoop cluster
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2. Walmart
How Big Data Analysis helped increase
Walmart’s Sales turnover?

How Walmart
is making a
real difference
to increase
sales?
How walmart
How Walmart
become
is tracking its
amazon
customers?
compete?

Big Data
Analytics
Solutions
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2. Walmart
Social Genome is
How Big Data Analysis helped increase a big data
analytics solution
Walmart’s Sales turnover? developed by
WalmartLabs

Social Social Media Big

Genome Data Solutions

Shopycat-
Gift
Shopycat app will
help you buy the
ideal gift for your
friend during the
holiday buying rush Mobile Big Data
Predictive
Analytics Solutions
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2. Walmart
Results
• Between 2011 and 2014, Walmart’s e-commerce sales grew nearly
150% from $4.9 billion to $12.2 billion.
• Gain extra revenue from digital service
• Keep relationship with customer and wholesalers, retailers
Lesson learnt
• Digital savvy leadership
• Build a culture of innovation
• Strategic Acquisitions to bolster digital capabilities
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3. Volvo Cars
Company Overview
• Small player in 2010
• Relies on the network of 2300 local dealers in 100 countries

Problems & Opportunities

• “Nowadays, you don’t sell a car. You sell a transportation solution,
and it should be as efficient and smooth as possible. Looking into
the future, we might say we don’t sell a transportation solution, we
sell an experience".
Timo Paulsson, Senior Manager Ownership Services and Brand
Protection for VCC global
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3. Volvo Cars
Strategies/ Actions
• Business model transformation from B2B to B2B and B2C
• Launch new digital services
 Via social channels (Portal, Facebook, Twitter, Youtube)
 Mobility
• Connected car concepts: Embedding mobile technologies in vehicles
to enhance customer experience
• Build capabilities at global levels:
 Implement global CRM
 Implement analytical capabilities

Results
• Gain extra revenue from digital service
• Keep relationship with customer and wholesalers, retailers
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WHAT IS DIGITAL
TRANSFORMATION?
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Building Blocks of Digital Transformation

Customer
Business model
experience

Operational process Digital capabilities

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Digital Transformation Framework

(Capgemini Consulting)
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Business Model
1
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Business Model Transformation

Offline Online
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New Business When someone needs to buy a TV…

Model • Traditional way

Dien May, Nguyen Kim, Gia

Thanh offline stores

• Modern way
Dienmay.com

Dienmaycholon.vn

NguyenKim.com

GiaThanh.vn

 Compare price from different stores

 Review products
 Better brand awareness
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New Business
Model

Alezaa

Cloud Reader –
Instant online
reading

Values:
• Reader can buy more eBooks at cheaper price
• Protect copyright
• Enormous book storage (10000 items)
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New Business
Model

Dienmay.com

Aim to be Vietnam
Amazon

Online electronics
and household
appliances
marketplace
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New Business
Model

DiaOcOnline.vn

Top 3 Viet Nam

Real Estate Listing

Connecting:
Broker, End-User,
Buyer
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Customer Experience

2
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Customer
experience
transformation
• Better customer understanding
• Increase customer touch points
• Customer analytics supports decision
making on manufacturing, marketing,
investment etc.
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Customer
experience
transformation
L’Oréal Case
Study

https://youtu.be/G1z2Od5lIsA
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Operational Process
3
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Operational
Process
Transformation
• Internal data-driven
• Internal analytics
• Better productivity management
• Collaborative workspace
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Building blocks of the digital

transformation

4
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Digital
Capabilities
Transformation

• The foundation of business model,

customer experience and operational
capabilities transformation
Analytics Capabilities
Business & IT integration
Knowledge management
Business data analysis for business
planning
Product/Service innovation
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DIGITAL TRANSFORMATION
GOVERNANCE
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DT
Governance
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DT
Governance

1. Silo

• Each business unit can have its own

strategy and budget for digital initiatives
• No enterprise-level coordination
• Digital operations developed and
managed in business units
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DT
Governance

Central
coordination

• Digital strategy defined at enterprise level

• Digital initiatives funded and coordinated
at enterprise level
• Digital operations developed and
managed in business units
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DT
Governance

Less coordination

• Digital strategy defined by central unit, although

local business units can have their own strategies
• Local business units develop and manage
operations, but must use solutions and resources
from dedicated business unit when available
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DT
Governance

More coordination

• Digital strategy set by a dedicated business unit.

• Local business unit digital strategies and budgets
are coordinated across the company
• Local business units develop and manage
operations, but must use solutions and resources
from dedicated business unit when available
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DT Investment

4 investment types:
1. Economic
2. Burning platform
3. Strategic
foundation
investment
4. Low-risk
experiment
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Digital maturity
matrix
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DT challenges
•Lack of financial commitment
•Lack of experiences
•ROI calculation
Start

•Lack of required skills

•Cultural issue
•Limited internal IT resources
•Unclear/Ambitious SOW
Execute

•Daunting Trials and fails process

•Require high adaptabilities to changes

Develop
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HẾT BÀI. CAFE THÔI ;-)