IT Across An

Organization –
Class 2
Mahesh Natarajan and Himanshu Warudkar
March 2024

(c) Himanshu Warudkar

1
 •Technology is critical for competitive advantage
•All companies are technology companies!
•System of Record vs System of Engagement
Recap of Day 1 •Challenges with traditional IT
•Move to customer-centric digital IT
•Need to integrate legacy with digital technologies
while managing the two simultaneously
(c) Himanshu Warudkar 2
Will discuss on March 2nd…
• IT Doesn't Matter By: Nicholas G. Carr
• Best Practices in IT Portfolio Management By: Ingmar Leliveld,
Mark Jeffery
• FLUID AI – BREAKING NEW GROUND WITH ARTIFICIAL
INTELLIGENCE by Himanshu Warudkar | Srinivas Pingali | D.V.R.
Seshadri

(c) Himanshu Warudkar 3

 “It is our job to create computing
technology such that nobody has to
program. And that the programming
language is human, everybody in the
world is now a programmer. This is
the miracle of artificial intelligence,”

(c) Himanshu Warudkar 4

Digital by Default vs. Digital by Design
Digitalization of Services Delivery

Digital by Default Digital by Design

Embed digital technologies from

Online service delivery as the primary
scratch into org efforts to enable
option to interact with businesses
omnichannel service delivery

OECD (2020), "The OECD Digital Government Policy

Framework: Six dimensions of a Digital
Government", OECD Public Governance Policy
Papers, No. 02, OECD Publishing, Paris
Digital Requires Changing Mental Model
Business as a Buyer of IT

IT is a transformation lever to enable increase in revenue, reduction

in costs and maximizing returns from existing and new assets
Chairman of the CRO (Risk)
Board

CEO CMO (Marketing)

COO (Operations) Business CEOs

CIO (Information) CLO (Legal)

CFO (Finance) CHRO (HR)

Business as a buyer of IT
Business / Tech Investment Bank Retail Bank Corporate Bank Wealth Business
Finance Horizontals
Technology Vertical
Digital Horizontals
Marketing Vertical
Operations Vertical
HR Horizontals
Risk Horizontals
Legal Horizontals

Decentralization and Centralization of IT is a recurring theme

What gets done and Who does it?

Be prepared to having at least two

bosses and managing them!

Source: https://www.mckinsey.com/business-functions/organization/our-insights/the-helix-organization
Enterprise Software
CEO CMO (Marketing)

Data Income CRM

COO (Operations) Business CEOs

Supply
People Spend
Chain
CIO (Information) CLO (Legal)

CHRO (HR) CFO (Finance) CRO (Risk)

Example - CRM

Trustworthy Proactive Service

Reporting

Visualization and Efficiencies through

Dashboards Automation

Improved Simplified
Information Flow Collaboration
The Backbone…
Who says elephants can’t dance?

Application APIs

Mainframe APIs

Mainframes
Initiating Digital Transformation
• New technologies come with many labels — digital, analytics, automation, the Internet of
Things (IoT), machine learning, artificial intelligence (AI), and so on
• Leaders often have a difficult time creating coherent strategies that stitch together their digital
priorities with other major business objectives.
• Develop technology road maps that strategically focus investments needed to reinvent legacy
businesses and create new digital ones
• Managers need to recognize / sense new opportunities and build capabilities to deliver
technologies
• Establish modern technology environment to support rapid development of new solutions.
• Overhaul data strategy and governance to ensure data are reliable, accessible, and
continuously enriched to make them more valuable.
• Focus relentlessly on capturing the strategic value from technology by driving rapid changes
in the operating model
Old Wine in New Bottle

Customers Customers

Business Processes Same Business Processes

Replacing a human being by a bot is only part of the solution,

complete transformation occurs through process re-engineering
Practices Have to Change

Adapted from Elements of Choice

Failure should not be an option in IT
What is Digital Transformation?

• Strategy Lead
• Innovation Driven
• Business Model Changing
• Impacting All Part Of A Value Chain
• Incorporating Networked Technology
• Data Driven
• Orchestrated By Leadership And People

(C) HIMANSHU WARUDKAR

19
Digital Transformation Model

chnologies
Te
Digital
C C
u Organisational u

Digital Strategy
s Innovation s
t Business Model t
o Innovation o
m Product Innovation m
e Process Innovation e
r r
s Data s
and Anayt
ics
Transforming Trucking Business - Pipelines to Platforms
iAlert, product that allows customers to track their vehicles in real time.
Its live dashboard displays real-time information on the vehicle’s health

Service mandi, E-diagnostics, a first-of-

connects its-kind in CV industry; a
customers to diagnostic device
Leyland trained pinpoints error code for a
mechanics. They vehicle by connecting
can get live mobile user’s phone with his
updates on their vehicle via Bluetooth. A
vehicle repair. It troubleshooting list pops
allows digital up to help mechanic or
payment on pre- driver resolve error in a
agreed rate. simple step-by-step
visual process

LeyKart, which offers round-the-clock

availability of genuine spare parts.
Sources: https://www.ashokleyland.com/en/web/ashokleyland/home
Applying the model
IoT, Mobile Leadership driven
Access to trucking Apps Dealer involvement as Franchisees
Reliability/On time
Quality of equipment
Low cost
s
One-stop shop
l Technologie Trucking as
Digita a service
On Demand

Trucking and
Organisational Innovation

Digital Strategy
Allied
Customers

Customers
Business Model
Equipment:
Innovation
Product Innovation Accessible
Process Innovation Affordable
Reachable

Data Reimagined
Shared trucking and Analy
equipment tics itself as a
Call center
Quality equipment Mobile App trucking
Tracking Usage by services
logistics company
providers
Digitalization vs Digitization ??

24
5 steps to Digital Implementation

Digital
Assessment

Gap
Scaling
Identification

Roadmap
Testing
Development

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Assessing Digital Maturity
Several models exist to assess the digital maturity of a company

Customer Strategy Technology Operations Organization and Culture

Engagement Brand Management Applications Agile Change Management Culture

Experience Ecosystem Connected Things Automated Resource Leadership and governance

Management

Insights and Behaviour Finance and investment Data and Analytics Integrated Service Organization design and
Management talent management

Trust and Perception Market and Customer Delivery Real-Time Analytics and Workforce enablement
Governance Insights

Portfolio ideation and Network Smart and Adaptive Process

innovation Management

Stakeholder Management Security Standards & Governance

Strategic Management Tech Architecture

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Source: Deloitte Digital Maturity Model
Digital Maturity Index

Stage Definition

Digital Unaware Unaware of digital transformation or digitalisation. Basic awareness of

digitisation and automation

Digital Aware Aware of digitalisation. However, do not have a digital strategy or have
implemented digital technologies

Digital Starter Have a basic digital strategy. Have begun implementing some digital
technologies

Digital Proficient Has a clear digital road map; In the process of implementing multiple
digital technologies; focussing on business model changes

Digital Expert Fully digital (typically only born digitals or digital native companies)

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Industries are well on their way

Digital Expert Digital Proficient Digital Starter Digital Aware Digital Unaware

• Information Technology • Financial Services – Banking;

Insurance • SMEs (Small and Medium Enterprises)

• Hospitality – Hotels, Airlines, Travel • Agriculture

Agents • Process manufacturing
• Media – Content creators, content • Other manufacturing
distributors
• Trading
• Retail – e-commerce
• Transport and logistics

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Moving away from waterfall methodologies

Link

Feedback Feedback Feedback Feedback Feedback Feedback Feedback

Source: https://analyze.co.za/the-transition-to-devops/
Digital as an Enabler of Business Model Innovation

Sinha, A., Pedada, K., Purkayastha, A., Srivastava, R., & Balani, S. (2022). Digital transformation as
disruptive strategy: using data and AI to unlock growth, build resilience and create shareholder
value. California Management Review.
Digital Transformation Monetization Framework

Sinha, A., Pedada, K., Purkayastha, A., Srivastava, R., & Balani, S. (2022). Digital transformation as
disruptive strategy: using data and AI to unlock growth, build resilience and create shareholder
value. California Management Review.
Capabilities of a Digital Transformed Organization

Sinha, A., Pedada, K., Purkayastha, A., Srivastava, R., & Balani, S. (2022). Digital transformation as
disruptive strategy: using data and AI to unlock growth, build resilience and create shareholder
value. California Management Review.
The Software Development Lifecycle
• Mythical Man Month Revisited
• Military, Space and Defense System Development
• Toyota Production System
• One Size Does Not Fit All
• Evolved Over Time - Behavioral and Technology Changes
• Philosophical Roots to Mimic Real World Objects
A Myriad of SDLC Models, Methods
Waterfall Model
Prototype Methodology
Agile Software Development Methodology
Rapid Application Development
Dynamic System Development Model Methodology
Spiral Model
Extreme Programming Methodology
Feature Driven Development
Joint Application Development Methodology
Lean Development Methodology
Rational Unified Process Methodology
Scrum Development Methodology
Rapid deployment

• Zero Code/Low Code

https://www.youtube.com/watch?v=qicS8eZh-cs
• Robotics Process Automation
https://www.youtube.com/watch?v=iepfUOLzHDc
• Programming… a history?
https://youtube.com/shorts/2nLq6xzTx-A?si=vDGkIBKYNGkmY007
The Future is now !

Digital transformation: are you ready for exponential change?

Futurist Keynote Speaker Gerd Leonhard - YouTube
Models, Methodologies, Techniques…

A methodology is composed of one of the software

development models used in conjunction with one or more
techniques, i.e., methodology = model + technique(s).

Models Techniques
Waterfall, Spiral, Agile Prototyping, Object-Oriented
Why Agile?
Characteristics of Agile…
Drivers: Key values for Customer:
• Mature Technology teams • Time to market
• Increased involvement of customer in • Speed vs Documentation
software development.
• Early visibility of product
• Documentation heavy projects vs real
product. • Minimise the losses of change
requirements
• New development vs incremental
changes/maintenance. • Process Overheads
• Rapidly Evolving customer needs and
changes in requirements
• Speed of tech innovations.
 Individuals and interactions over processes and  Customer collaboration over contract
tools. negotiation.
 Working software over documentation.  Responding to change over following a plan.
Machine that changed the world

TPS was developed in the 1950s and was taught to its

suppliers in the 1970s and brought together as a
management system in the Toyota Way in 2001.
Towards Lean
• Principle 1: Eliminate waste.
• Principle 2: Build quality in.
• Principle 3: Create knowledge.
• Principle 4: Defer commitment.
• Principle 5: Deliver fast.
• Principle 6: Respect people.
• Principle 7: Optimize the whole
Challenges in Agile

1. Unrealistic expectations from Agile

2. Resistance to change
3. Residue from old methodology
4. Too much focus on ceremonies
5. Customers/Sr. Managements understanding of Agile
6. Skill fitment to new model
7. Absence of Technical Sprints
8. Unambiguous success criteria- sprint, team members.
9. Remote location- Lack of collaboration tools,
communication.
In Summary

• Digital Transformation is the next phase of business transformation

• It goes beyond digital technologies
• It is no longer a question of “Should we”...it is about “How Quickly”
• Companies need to start with assessing their digital maturity
• Digitization and automation vs digitalization and digital transformation
• Technology development methodologies that support rapid transformation
while maintaining customer centricity