Chapter 1
Chapter 1
Chapter 1
Doing Digital
The Guide to Digital for
Non-Technical Leaders
Ved Sen
Doing Digital: The Guide to Digital for Non-Technical Leaders
10 9 8 7 6 5 4 3 2 1
Description
Every business is a technology business, or perhaps it’s more accurate to
say that every business is a digital business. Whether you work in a large
corporation or a small firm, you probably work in a business that’s going
digital. If anything, the past two years of the pandemic have accelerated
our path to digital, with remote work and ecommerce pushing us all into
digital modes of working and living. And yet, if you’re not a technolo-
gist, or if technology and jargon seems opaque to you, you might find
it daunting to figure it all out. If you understand business but feel that
you don’t understand digital and technology well enough, then you’re the
person I wrote the book for.
If you’re a business leader, in a large or small business, you will increas-
ingly find yourself making decisions that need to straddle design, technol-
ogy, and data, related to your organization, and understand the regulatory
aspects of digital trends. You will need to constantly update your view
of the world, and use this to refresh your strategy and roadmap more
frequently than you’ve done in the past. This book will help you as well.
Digital means many things to many people. Is it technology? Data?
Design? Is it about mobiles? Big data? Agile methods? AI? Often, the
answer depends on who you ask, but in reality, it’s all of these things.
This book will arm you with a conceptual framework with which to
understand digital. This will help you understand digital transformation
in your business better, but it will also help you make more sense of
your next small digital project. It will also give you a simple and robust
execution framework (connect, quantify, optimize) to help understand
digital cycles.
Along the way, I hope it will demystify a lot of jargon—why APIs
are like Lego, or what exponential strategies are about. It is designed to
give you a good starting point for your journey in understanding all the
many facets of digital. I’ve written this book to be a jumping-off point for
all these topics. This book should give you enough of an understanding
vi Description
Keywords
digital; Web; mobile; Web 2.0; Web 3.0; Semantic Web; IoT; XaaS;
design thinking; service design; cyber security; containerization; API;
voice interfaces; big data; analytics; decision making; knowledge man-
agement; data architectures; data science; AI; networks; machine learn-
ing; deep learning; ethics; agile; fail fast; sprint; scrum; target operating
model; data ethics; graph database; exponential change; discontinuity;
networks; disruption; servitization; culture; automation; productiv-
ity; robots; connected health; predictive health care; electronic patient
records; identity; context; trust; customer experience; future of work;
scale-free networks; omnichannel; attention deficiency; transformation;
optimization; blockchain
Contents
List of Figures����������������������������������������������������������������������������������������ix
Disclaimer��������������������������������������������������������������������������������������������xi
Acknowledgments���������������������������������������������������������������������������������xiii
Introduction����������������������������������������������������������������������������������������� xv
Part 2 Connect�������������������������������������������������������������������������� 9
Chapter 2 The Web—Still Fundamental�����������������������������������������11
Chapter 3 The Social Interface—Media and Marketplace����������������19
Chapter 4 Mobile—The Remote Control for Your World���������������25
Chapter 5 The Internet of Things����������������������������������������������������35
Chapter 6 DiPhy or Phygital?���������������������������������������������������������43
Chapter 7 The Human Interface�����������������������������������������������������47
Chapter 8 Why Is Good Design So Difficult?���������������������������������53
Chapter 9 What Is Service Design, and Why Is It Suddenly Sexy?������63
Chapter 10 Digital Infrastructure: Cloud������������������������������������������71
Chapter 11 Digital Infrastructure: Middleware and API��������������������77
Chapter 12 Digital Security���������������������������������������������������������������85
Part 3 Quantify����������������������������������������������������������������������� 93
Chapter 13 Welcome to the Data Jungle�������������������������������������������95
Chapter 14 Data in the Enterprise��������������������������������������������������101
Chapter 15 Data Architectures��������������������������������������������������������111
Chapter 16 Data Evolution�������������������������������������������������������������117
Notes�������������������������������������������������������������������������������������������������233
References�������������������������������������������������������������������������������������������237
Suggested Reference Books��������������������������������������������������������������������243
About the Author��������������������������������������������������������������������������������245
Index�������������������������������������������������������������������������������������������������247
List of Figures
Figure 2.1 Web 1.0, 2.0, and 3.0, an overview����������������������������������17
Figure 9.1 London Tube Map, 1931, by Harry Beck������������������������67
Figure 12.1 A sample of high-profile cyberattacks throughout
the year 2021�������������������������������������������������������������������86
Figure 12.2 A sample of high-profile cyberattacks over the
past decade����������������������������������������������������������������������88
Figure 14.1 Cholera/sewage map—John Snow���������������������������������108
Figure 17.1 Exponential graphs��������������������������������������������������������126
Figure 17.2 The Tesla approach to disruptive innovation������������������126
Figure 17.3 The Amazon approach to disruptive innovation�������������127
Figure 19.1 The journey to AI����������������������������������������������������������166
Disclaimer
All the ideas and frameworks in this book are based on my own observa-
tions, and do not necessarily reflect the thinking of my employers, unless
specifically called out.
Acknowledgments
My life has been full of fortuitous twists and turns executed with little
or no planning. Many of these have led to serendipitous meetings and
experiences with amazing people who have changed the course of my
thinking with just a conversation. And then there are the many, many
friends and family members whose minds I have selfishly explored over
many discussions and debates. It is to all these friends, colleagues, and
passing acquaintances that I owe a big debt of gratitude for a lifelong
evolution of my thinking.
Specifically, I’d like to thank Pradeep Kar for pulling me into the
world of technology, and Satish Sukumar who is responsible for some of
my earliest conceptual clarity about the Internet and technology.
Kannan R and Shefaly Yogendra deserve their share of blame for this
book—it was that conversation of December 2015 that drove me to writ-
ing it. Madhu Jalan and Rachel Nolan took time to give me useful feed-
back, but many, many spared the time to read the book and share their
thoughts. Pablo Conde designed the cover. All of you are very special.
To my parents, Kirit and Gopa Sen, and my sister Pragna, who would
have been disappointed if I didn’t write a book. And to my wife, Karuna
Kapoor who takes care of a million things, and inspires me to write.
And to my daughter Maya who is growing up in this digital world and
who treats every miracle as mundane.
Introduction
Why This Book?
Everybody has an interpretation of digital business. And much like
the blind men and the elephant, we tend to define digital from our
perspectives—data enthusiasts will suggest that digital is all about data.
Designers will argue that it is in fact about user experience and emo-
tional connects. Technologists of all faiths will put forward their own
flavor of digital technology—AI, sensors, or agile development. There are
no shortages of catchy acronyms either. SMAC (social, mobile, analytics,
cloud) was a very commonly used phrase. Yet, SMAC represents as partial
a view as any of the others. I felt that a more complete definition was
required, which would embrace all aspects of digital, and yet be short
enough to suffice as a definition rather than a description. That was the
starting point of my thinking about this book. This led to the creation
of a conceptual framework, which hangs off the definition, which I hope
will be truly useful for people to deal with the multifaceted nature of
digital evolution.
But while a conceptual framework is useful for understanding digital,
it may not be as apt in helping people actually do digital projects. We
need a simple execution framework to follow from the conceptual one,
which can be used while thinking of doing a digital project. This is the
connect, quantify, optimize framework, which the title refers to, and what
the book drives toward. I hope that the book will therefore help readers to
both understand and deliver digital projects, change and transformation
in the smallest to the largest projects.
A Book, or a Discussion?
In my head, this book, and perhaps every book, is a discussion between
the author and the reader. We often have to imagine that conversation,
or perhaps every conversation doesn’t get completed because of the dis-
tance between the writer and the reader. We can address that. Talk to me
via twitter (@vedsen/[email protected]) and tell me what you thought.
What did you disagree with? What made you nod vigorously? What did
you love? Hate? Which parts put you to sleep? What examples do you
have that support or challenge what you read here? In the digital world,
books should be living documents, and I see this as an ongoing version
2.0 that I’d like to improve with your help and ideas. Talk to me.
CHAPTER 1
Defining Digital
So … What Is Digital?
As I was saying, despite working in the digital space for years, I was quite
stumped when I was asked to define it. Sometimes you can get away
with circumlocution (or, to use the technically correct term, waffling!)
But given all the hype around digital transformation, I felt that it was a
good time to create a working definition. The problem with definitions is
the tradeoff between pithiness, abstraction, and comprehensiveness. You
can be very pithy but be too abstract, for example, “Digital is the future
of business.” Or you can take a whole page to define digital, but that’s a
description and not a definition.
I’m happy to say I’m willing to stick my neck out and try and define
digital in less than 25 words. Here’s my definition, and I invite you to
Defining Digital 5
challenge it, differ with it, or adapt it as you wish. This book uses this
definition as a means of structuring the discussion on doing digital.
Digital: exploiting emerging technologies to create customer (user)-
centric experiences and data-driven decisions, leading to more agile,
competitive, and responsive business models.
(To a nonbusiness person, such as the landlord in my story, a some-
what simpler definition may suffice—using computers to make our lives
simpler, and our services and products cheaper and better, but the defini-
tion above will work for you as a business person.)
Let’s break this up.
Emerging Technologies
Emerging technologies are the driving force of digital. It’s the reason why
we’re having this conversation. But there are many technologies emerging
and evolving simultaneously, today.
The frontend: The two big bang events for digital was the creation
and adoption of the Internet and the launch of the smartphone. The first
of these, the Web and its evolving technologies such as HTML5 and
JavaScript associated frameworks, continues to evolve to deliver slick
websites and applications. Social media is just one of the places we can
see this at work. The latter put powerful computers into people’s pockets.
It democratized access and provided a platform for almost all the
other innovations.
The next wave of frontend technologies includes Internet-connected
sensors and devices. We are seeing a large-scale adoption of the Inter-
net of things (IOT)—connected and smart objects have the potential to
change everything, again, in the way we buy and consume goods and ser-
vices. The majority of these sensors may have no screens. They may have a
voice-driven interface, or they may have no human interface at all—being
largely used for machine-to-machine (M2M) communication.
Behind the scenes, a set of technologies that I call digital infrastructure
is evolving as fast as frontend technologies. Moore’s law is being stretched
to the limit, but the cost of computing is still heading down, leading
to significant improvement in computational capabilities. We are mov-
ing our infrastructure to the cloud, creating better means of connecting
6 Doing Digital
Customer-Centric Interfaces
All this fantastic technology would simply not be usable if it wasn’t for
design thinking and service design methodologies. Some of this is com-
monsensical should have been the norm. But the mind-shift is seismic.
Industry leading businesses have recognized the need to be customer
journey driven. I use the word interface in a broad sense here and not
just restricted to screens. The question to ask is “how do your customers,
partners, and even employees interface with your business?” Historically,
businesses decided how they wanted to run their processes and designed
systems and interfaces to match those desired processes. If a bank’s preference
was for the customer to be in the branch while opening an account, that’s
how the processes and systems were defined. In the digital world, those
interfaces are conceptualized outside-in. This means the starting point is
the user. How does the prospective customer want to open the account?
What are her constraints? What would make her choice easer and her
experience better?
Data-Driven Decisions
Implicitly or explicitly, every decision we make (what to wear to work,
for example) is made on the basis of data that we process (what meetings
do I have? What is the dress code? What is the weather?). Complex deci-
sions require more sophisticated data. Historically, this data has not been
available to us for many large and small decisions. How much to spend on
the marketing campaign? Where to open the next store? Who to hire as
a program leader for a new business area? How to implement a hot-desk-
ing policy? As a consequence, most businesses have relied on experts for
these decisions, whether they are from within the business or consultants
brought in for the purpose. Experts use their wisdom, which is often an
implicit accumulation of data from deep experience in that area. What we
are witnessing, thanks to digital interfaces and instrumentation, is a col-
lective shift to more explicit data-driven decision making. To do this, we
Defining Digital 7
need tools that can store and process gargantuan volumes of data being
gathered and processed at ever faster rates. If you’ve read Michael Lewis’s
2003 book Moneyball, this is exactly what he speaks about in the context
of baseball, and how Billy Beane used data and metrics to assemble a
competitive team for Oakland Athletic, despite a modest budget, when
everybody else was still working off their experience and instinct.