 Well hello everybody, allowing me to introduce myself in sort of simpler English than what you just heard and also the topic we're going to discuss today. I'm a lifelong learner and a problem solver, that's my background. Last 20 years has been in transformation in different forms and the last four years has been in the world of digital. So what you're going to see today is part of a larger framework for problem solving with enterprises and it puts business and IT together. It pulls the agenda right up front and builds journeys. The title is deliberate because the one thing I see is this is a journey. It's a journey that's unlikely to end anytime soon and it's changing all the time. So let's get started. So any good transformation, any good plan starts with a view of where you're going. So what we're going to do is take a peek into the future. We can't look at all scenarios but we can look at a few. And this important is to sort of acknowledge what's the impact digital is having. Because you hear a lot of conversations that I see lots and lots of presentations who people try to define digital. I'm not going to bother doing that. I'm just going to talk about the impact it's having and the consequences on enterprises and what they need to do differently. Because that's the important thing. The next fundamental question is why is this happening? So all this is going on but what's really happening? Because if you understand the answer to that question you can start to plan with a little bit more confidence. You can actually say if these things are the things that are causing disruption forget my head around those. I can plan for change. And lastly what do enterprises need to do to get started? What do they need to focus on? What do they need to think about in terms of planning and architecting change? And then how do they get it done? So here's a few examples of the future. So let's meet Claire. Claire is a working mum sort of mid-20s early 30s in the not too distant future. Something just a description of Claire. So Claire, she shops all the time apparently but she's never visited a shop. She's always online but never logs on and she optimises her ratings in real time. So the sort of ratings that are important to Claire are how likable is she, how employable is she, how knowledgeable is she and what's the rating she's had on the last 10 jobs. She's never got lost ever. She doesn't know what that feels like. She tracks her kids whereabouts and well-being wearables is commonplace these days. And she drives the car but she's never learnt to drive. Claire has five jobs at any one time and they're subject to, they're obtained through crowdsourcing. She's based on her skills, the quality of feedback she's had from other engagements and her availability. So her family and work life are perfectly balanced. And to top it all, she has a great home help. Does all the cleaning, does all the household work, does the cooking, does all the chores, 24 hours a day, it's a robot called Jane. Now some might think this is science fiction and some may argue that some of things are possible now. It's quite likely most of this is going to be possible within the next 10 years. So whilst Claire's destination digital, her journey in life is unique, technology hasn't just had a change to specific experiences. It's changed the way she lives. And this is not stereotype, by the way. I just wanted to think of something simple. So David's business trip, so David's a busy guy. His trip was planned by his artificial intelligence assistant who optimised it against cost, timing and fit with his other commitments. So he leaves his smart home, he gets into his connected car that drives him to the airport through the smart city. Once he's there, David's put three of his artificial intelligence assistants to a conference call. And on arrival in his destination, he's picked up by an autonomous taxi. On his way back, he's reminded you've got to buy something. And when he gets into his connected car that picks him up from the airport, his eating's turned on at home. So when he gets home, life's comfortable. And it automatically, his expenses are filed for him and submitted. All in a day's work. So two simple scenarios. And the important thing here is the takeaways. How enterprises approach their destination journey is therefore key. The previous presentation is actually the world, mostly the world we live in today. Preoccupied with the way organisations were making sure they work efficiently and effectively. So you don't get red scorecards. But actually, not thinking that much about the future environment that is out there. So moving from what's called inside out, you know, worrying about existing processes and structures to sensing what's going on out in the wider world. That mindset, enterprises are not just part of the future. They make it for the people who live in it. And the winners are those who, quite frankly, are connected and relevant to the likes of David and Clare. So I won't go into detail on this, but this is just an excerpt from Interbrand's top brands for the year 2016. It talks a little bit about who they are, what they're doing and some statistics, particularly around things like the reputation, the value of the firms and so on. Two interesting takeaways from this are these are actually already digital businesses. They're businesses who actually operate using platform concepts and they're very good at it. And the other one, although they started that journey by extending their services that they offer to the market. And the second one is there's an awful large investment in future digital technology in terms of the ways of working, in terms of how collaboration takes place and how things get done. So often you find with some banks recently I was talking to, we happen to be a technology company that happens to be in the retail banking sector. A bold statement really, but that's the way people are thinking now about changing the way they run their businesses. So, why is it all happening? Well, is it because of a multitude of new innovations? There's plenty of evidence of what's going on out there. There's a fantastic report if you ever get a chance to read it called, Deep Shift was commissioned by the World Economic Forum. So here are some of the things that come out that by 2025, so this is what they're classified as tipping points. So tipping points means this is going to be business as usual. This is the way the world will be. So here are some interesting ones. 10% of all humans will wear clothing that's connected to the internet. 90% of people will have access to free unlimited storage. Now, if you take that and you say, well, what did a gigabyte of data space cost me in 1970, and you compare that with today, you're talking millions of dollars versus absolutely nothing. And it's one trillion sensors connected to the internet. What do you do with all that? The first 3D car in production, but here's another one. The first 3D printed liver that gets transplanted and an artificial intelligence member of a board. So is that why it's happening? Well, the reason why it's happening is just a view is, as human beings, we just want to know more, we want to connect more, we want to share more. We have an insatiable appetite to make all these things just happen. So I think rather than having lots of people out there looking for smart things to do, people are just coming up with, we could do, like take the two examples we just talked about, how much spare time, how much free time did those individuals have if they were really tuned in to using digital the way they were? So I've got three, what I call three truths, three truths of digital disruption. Now these are useful anchors. What they provide is not so much, you know, that's your opinion. They actually provide ways of thinking about change. So the first one is that the people who consume digital services are predominantly the people who will call the shops. They will set the pace, I would like this, this would be good, these things would work. And these are not just consumers, these employees in an organisation. They're the way you run a manufacturing plant. They're the way you organise a car to be connected to lots and lots of other services. It's very, very multi-level and complex. But essentially, that's one place to focus. The second one is the move from traditional to platform type businesses. And all the examples on the brand chart that I showed you earlier are organisations that are gradually on that road. Some were born that way or claim they were, likes of Amazon and Google, but they're all on this journey. And just for those who kind of think, well, what's he talking about? There are disruptions in industries. Take the hotel sector, for instance. So traditional value chain, hotels, travel agents, travellers, replaced by hosts and travellers connected via a virtual platform called Airbnb. But you can also get disruption in a value chain. So think about devices, intelligent, or semi-intelligent devices in the manufacturing space, building cars and doing work in the world of heavy duty machinery. GE's Predix platform, fantastic idea, creates something that connects everything so that they can become more efficient and be organised in a way that in some ways, for instance, they're autonomous as well. So you're moving from a value chain structure that is where things get built, sold, shipped, consumed to an environment where consumers and producers are actually connected through a virtual platform. What's the consequence of that? Well, on the one hand, you've got a model which is, its value is completely a function of resources. How big it gets, how many things are happening in that value chain is a function of what it's worth, how much revenue it can produce and so on. So working capital is tied up in that value chain. Both physically and for the time duration it's being used in the platform business. Once the platform is in place, consumption actually drives down capital investment. The return on invested capital just goes up. So the more successful your platform concept, the more valuable your business. So it's not a function of resources anymore, it's a function of what you do and how valuable it is to the people who want it. Now with that in mind, the last one is, and those organisations who can stay ahead, both in terms of what's needed in the marketplace for them and their business, and leveraging that platform journey because it's not a one-off event, digital is not a one-off thing as we'll talk about in a short while. Those that can leverage that, so connect with it, leverage it, are those that will win. And I've classified this as asset multiplier. So effectively continue to drive down the return on invested capital impact on the organisation. So this is all about business value as well as what we're talking about. So those are the three truths. So what do enterprises need to do? Now I'm going to get a little bit now into the framework elements, some of which you'll be pleased to hear to do with how they are architect change. The first one is to understand the impact of the relevant disruptions and map the value options. We call this 4x3, so essentially how do those three disruptive effects align with a set of four sources of value? And I'll talk about what those four sources of value are. When you figure that out, you then localise the agenda, you then figure out there's lots and lots of things that could be going on, what's relevant to me, so my journey is signposted. I can see where I'm going. The second one is use that to populate a future business context, which is composable, well-organised and an extremely good platform for planning. Now the reason for that, the reason for a new business model context is quite simple. If you want to think and you want to organise yourself as a platform business, describe it. It won't be perfect and it shouldn't be perfect to start with because it will change tomorrow, but it allows you to start on the journey. And it's a model we call 5D. I'll talk about what that is in a second. So let's talk about these four sources of value first. The thing on the left is just a depiction of what those four domains are. They're transformation domains. They're things that need transforming. And the thing on the right is an illustration really that says if you really think about the fundamentals here, the economic value add is probably the best way to look at this holistically in terms of business impact and return on invested capital as we've said through the use of platform effects is one of the most important metrics to measure. The thing on the left has below it something we call, I've called there, the 21st century enterprise culture. It really is about what does your organisation need to be like. That's not something you're going to cure in one go, but it is. It is something that evolves over time as we look at. So in order really, the most important thing to move first and we just heard an extremely good case study of what are the platform capabilities and what's the culture within IT that will allow it to evolve into this new model. Platform capabilities are things like joined up data, joined up information, joined up architecture, the use of cloud, the use of analytics and so on. And also a culture that's capable of managing change at speed. I heard somebody mention the word sprint. Organisation structures that allow for that collaborative team working approach are not commonplace. The second one is, so what about the experience? Now you'll see from some of the examples I'll show you next that if I'm in a smart, this is really about places and locations. What scenarios exist? So this isn't about the incremental, the coffee shop experience that we heard earlier. It's what are all the things that could happen in that coffee shop? There's lots of things you could buy. There's lots of people you could interact with. There's lots of things you could do. Describe them for me. It is no longer a one organisation value proposition. It's a value proposition that involves an ecosystem of different players who have roles to play. The third one is changing the way that business operates of course and with the sort of digital platform, the physical IT environment and the ways of working that go with it. You have the opportunity to reinvent, reorganise, automate and apply things like robotic process automation to help that change. Last but not least, you also need, and this is an addition, an environment that is actually deliberately going after the next generation of services, the things which will move the needle for the organisation in the marketplace. So the complementary or companion to that is something we've called 5D. So starting from the premise that today's enterprise is largely reflect the internal workings of the business and have less to do with the environment that they operate in. And as this operation environment is changing, the environment around them is changing a lot and fast. This inside out view is no longer good enough. To move to a model that's sensing that digital environment and actually organise in a way that allows you to adapt as you go, that's the description here. So just quickly around the edges, the digital customer engagement domain is really where people and things interact and increasingly complex scenarios, things that we've already talked about like smart homes, smart cities, connected cars and so on. The digital service platforms are then the facilities or the capabilities required to get monetised through that scenario. So take the travel example for instance earlier, the sort of things that will be in here and exposed digitally would be ticketing, booking, expense management, loyalty cards and so on. The next one on the list is integrated business processes and this domain covers digitising existing processes and there's a big balancing act that goes on here, creating and provisioning new platform type environments that actually leverage these new capabilities efficiently in the sales environment, things like salesforce.com doing it properly is something that requires both things to exist. However, there is the IT struggle that says if business won't work with me, how can I migrate from that way of working to a new way of working, not so easy. So there's a massive cultural element to that as well. And the last one when it comes up is new value networks, you know, how opportunities like smart home and can be organised and exploited. And the last one, if I can get it to come up, it does work hopefully. Not working, it is now. Digital mustn't mean chaos. So this is where changing the mindset around architecture and adding the things on, which at the moment become almost independent islands of architecture like IoT, they get pulled together and the interface between all of those and the different moving parts on this chart are organised in a way that they kept in sync. So that's that. So the construction of the use of this to construct, how do you construct this? So here's a very simple retail food example. So we take these sort of line by line. So when you think about digital customer experiences, the food retail is now faced with a much more empowered user. And the decisions they make are obviously very different to the ones they would have made before just going into a store when they can do things online and they can get things from third parties and so on. So new interfaces to customers, new ways of connecting with customers that are done through associations. So communities that for instance are more concerned about keeping fit. What sort of things do I want to buy? Where do I buy it from? All of these influences need to be touched or at least sensed by the organisation. It can't just rely on the fact that people show up at its door to buy stuff. And of course the technology platform, the technology capabilities need to be embedded in to enabling that to happen. And here's a few others as well. So thinking about digital process transformation when you see things, you look at things on a shelf, you're passing by a store, the idea that the shelf could be a digital viewpoint that's constantly rolling with ads and so on. Personalising services in terms of business innovation and last but not least, things which connect people... Is it working? It can connect people on a personal level with the brand that they're connected with. So taking the output of that is a relatively simple overview. By the way, this is in a companion paper that goes with this topic, so you can read about it in more detail if you wish. It's something that then looks like this. And essentially this is... By the way, the health service example, which I'll put on the next chart, is a little bit more detail. And essentially what we're doing here is organising those capabilities that are required next into a structure that then allows us to plan. Here's the health example. So this is one that's a bit more detailed. So when you look at this, you've got topics like, and my eyes are not brilliant, so I'll have to... You've got topics like the service platforms are essentially the things which allow either to deliver services or consume. Different scenarios through which a patient can be seen and met and dealt with. And the connection between all of these, obviously, via a different way of integrating information. So the last question, because I'm getting at the clock here, is how do enterprises get started? The fact is that for many years, after year 2000, the primary focus was on Mode 1 type operation as the analyst put it. This is... Let's make the organisation, let's make everything inside it more efficient and effective, consolidate things, simplify things, and so on. That very strict approach to management of change, that's very strict approach to what's acceptable, and the governance that goes with it is somewhat restricting if you're thinking about agile and experimentation and so on, so-called Mode 2 operation. So are these mutually exclusive? Can that be integrated? That's the big culture question most organisations face. And what skills are required and does the firm have them? In most cases, firms don't have these structures in place. They don't have the people who know how to do these things. Multiskill collaboration is a feature of many start-up and developer organisations today. So organisations that can tap into that and build their own version of it are obviously likely to win. And also how decisions are made. What about programmes? Programmes tend to be set up, have large structures and have a start, a middle and an end. This is much more about road maps. It's about... I think you mentioned the term road map when you presented. The road map is put change on things that you both figure out and come into contact with. And techniques like minimum viable product production. How do you create a minimum viable product? What does it involve? It requires multidisciplinary teams for a start. Very close connection with the business and an appetite to get things done in weeks rather than months. And also to test and learn quickly and fail fast if you need to. So a very big practical set of questions. The question is how do you make them mainstream? Well, this piece of the framework and I'll come on to the top picture in a few minutes essentially says the answer is three elements. The portfolio of initiatives that have been flushed out of the analysis that takes a look forward and compares that with the world that exists today. And the second one then is the introduction of this into the organisation. And the most sensible way we've found to do this is either within a function that needs it today or within an experimental function that's trying to do something new. And the techniques in explore things like how to produce a minimum viable product quickly, how to create multi-skill teams, how to test an experiment. The elaborate is really taking that and connecting it with all the dependencies that exist in an organisation. So that scaling process can happen quickly and execute is clearly mainstreaming. Evolve is about taking stock of the capability maturity because whilst something like that 5D model can set an ambition it's way beyond the capabilities that most organisations have. An incrementally stepping through the journey allows the evolve to play its part in terms of raising the bar slowly. So organisationally and in terms of the digital capabilities that are required. So, a second last slide. So to get ahead, the two things that I've mentioned so far are essentially figuring out the dynamics, figuring out this four by three assessment. What's going on in your market? What's going on around the business? What are the things that I need to worry about that I genuinely need to do with moving the business from a traditional to a platform type model? The second is then that approach to experimentation, that approach to culture change, which allows what is a waterfall type approach in most organisations gets replaced by something that's much more collaborative, much more joined up with the business and what's going on in their world. The other three things on here are like stabilisers. This doesn't happen overnight. It takes time. Hybrid's going to be a factor of life for quite a while. So the three things are, first of all, the digital transformation management. Now, organisations manage change. How do they manage this type of change? How do they cope with this type of change? How do you mainstream it? It's a gradual process. So setting that up front and being deliberate about it is obviously very important. Having it buried in IT, for instance, or having it as an island in marketing doesn't make an awful lot of sense. The next one is the digital transformation neighbours. So as one steps through this journey, there are going to be things that are required, and rather than going off and having huge investments, bring them in as they're needed in a just-in-time fashion. This is both the organisational skills and the technology skills. Whereas before, an awful lot of these things were outsourced, we're now starting to see a trend where things are being brought back in because these are core skills and important to the future of the business. Last but not least is the business partner model. These platform businesses do not exist on their own. They survive and thrive on the back of partner ecosystems. Those partner ecosystems are built gradually and they become effectively the extended enterprise for your organisation. Everybody's engaged. Take the GE example, for instance, the extended enterprise for a manufacturer, for example, includes people who will have sensors in everything that they use. They're all going to be connected. There needs to be a way of organising that so that it's supporting the business mission. So in conclusion, some takeaway thoughts. The destination digital is a deliberate title. This is a journey. Navigating your way through that journey is really what this is all about. So having one to start with, having a view and a context within the environment that makes sense and being able to plan with confidence. My observation, and it's a firm I work for, our observation is most firms right now are preoccupied with the core. They're preoccupied with reorganising the capabilities within the core of the business so that they're better aligned with all these fancy things that the organisation would like to do because the good news is they've tuned into that. The bad news is if they start doing the other things first, it just makes the journey a bit harder. The culture change is the single biggest challenge and it really is behaviours and discreet capabilities that don't exist today. Another very big one is that CXOs, so people on the board, I heard some comments today, is the business involved? If business leaders are not involved in this agenda and don't know how to align the next generation IT with where they're going, they probably won't be that successful. And it's a business transformation, not an IT shift. Everything I talked about at the beginning was deliberately about people and lifestyles, not about the IT that supports them. And finally, not the best news you'll hear today, but really realistic, hybrid is going to be a fact of life for quite some time yet. So the scenario we heard about earlier is going to be around for some time to come. Thank you for your time. Thank you, Mike. If you could take a seat, we do have a few questions. I'll give you this since you're not mic'd up so you'll be able to deal with the questions. Thank you very much for that. Quite a few and again, not much time, but straight in, social question, does this future include all socio-economic classes or just a select few? Everyone, that's short and sweet. Does your model also apply to industry 4.0 use cases? Yes. I like the way that, this is great. OK, rattling through. A couple of related, but I'll pick this one. Since an ecosystem is beyond the control of any single enterprise, should enterprise architecture be changed to ecosystems architecture to support the digital business of the future? That's a great term, actually. Yes, it's a short answer. Architecture is not the, you know, complex, off, you know, on the side activity in IT. It is essentially a business, business competence. That's just a personal opinion. OK. How did you get from the digital life scenarios like Dave's business trip to the 5D model? It seems like a big leap. It seems like a big leap. The 5D model, so the genesis of that was working, so it was essentially a combination of transformation strategies and enterprise architects, people working within the telecommunications sector over the last four or five years. So it started out a very simple idea as a sort of digital front-plane, cross-plane, back-plane type model, the sort of thing that you would expect to see in any EA's handbook. But it then became a much broader conversation about business change, and that's how it evolved. So that's a product to another of years of experience. Applying the different scenarios we've got onto it is not difficult at all, but they weren't related. Right. To start with. Have we got long-term assessments that going agile will work? They could cause a lot of technical debt that will make the organisation lose a lot of money. I'm not so sure I answered and understood the question. I interpret it as do we actually know that with everyone going agile and sprints and following that approach, do we actually know it's going to work in the long-term? I think the important thing is not to have them become setting stone. Applying agile and theory of constraints has been around for a long time. That's nothing new. Applying agile principles in collaborative team environments, multi-skill team environments is relatively new in terms of this type of activity. And it should be left to evolve. There should be some standards around it, in my view, because otherwise it will get lost. You mentioned a digital transformation management office. Does this replace the traditional IT department or is it part of it or maybe it's something quite separate in the business? No, it's an overlay. So if you think of strategy and planning, you've got annual strategies, you've got quarterly reviews, you've got monthly budget reviews, you've got weekly optics on how are we doing. The forward thinking bit tends to be a once a year, let's see where we can go, whereas now it's constant. So I think there's two parts. The overlay, the architectural thinking, the innovation agenda that goes with looking forward should be always on all the time. And it should be systematically linked to managing a portfolio as opposed to an IT line of record. So it literally is, it forces a forcing function for changing the way the business thinks. OK, and one more and then we'll go to coffee. How do I measure change in behaviours and culture? That's a long answer. The simple answer to that is are you doing the things that connect with the value chain? So in some of the models, and there's a fantastic model that goes to that 21st century organisation logo that talks about things like how are you managing sense and respond? Are you really working in collaboration with other people? Are your partners really a piece of your value chain? All of the things, all of those things can be broken down into outcomes that can be measured really, that you're really doing it. And you said it was part of a paper that provides more depth on this? Yes, an introductory paper that I wrote on it a few months ago. Actually my colleague and I didn't know whether he knew that I was here today. He actually published it last night on LinkedIn, so I can make that available. It's great to get some feedback. The important thing is this is something that's going to be allowed to evolve over the next couple of years and be scaled so it would just be great to get some feedback on what people think. Great, in the meantime thank you Mike for sharing your thoughts. Thank you.