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What Is #DigitalTransformation? | @ThingsExpo #AI #DX #IoT #SmartCities

For a phrase that’s being thrown around a lot recently, what does “Digital Transformation” really mean?

For a phrase that’s being thrown around a lot recently, what does “Digital Transformation” really mean? When someone says that they want to digitally transform their business, what does one really mean, why do they want to do it, and should they approach this “digital transformation” process?

First off, let’s start with a definition. If we don’t know what we are trying to achieve, then how do we know how to get there? Or to quote the famous Greek philosopher Yogi Berra: “If you don’t know where you are going, you’ll end up someplace else.”

In a recent blog “How To Achieve Digital Transformation,” I stated with the following definition of Digital Transformation:

“The coupling of granular, real-time data (e.g., smartphones, connected devices, smart appliances, wearables, mobile commerce, video surveillance) with modern technologies (e.g., cloud native apps, big data architectures, hyper-converged technologies, artificial intelligence, blockchain) to enhance products, processes, and business-decision making with customer, product and operational insights.”

However, 45 words are too many. Good definitions should be 20 words or less. If it takes longer than one breath to explain something, go back to the drawing board!

So here is my updated definition that I will likely continue to refine:

Digital Transformation is application of digital capabilities to processes, products, and assets to improve efficiency, enhance customer value, manage risk, and uncover new monetization opportunities.

Dang it! 25 words. I’m going to need some help (maybe I don’t count the first two words “Digital Transformation”).

But to make this Digital Transformation definition clear and actionable, we also need to define “digital capabilities,” which we’ll define as:

Digital capabilities are: electronic, scientific, data-driven, quantified, instrumented, measured, mathematic, calculated and/or automated.

While it’s very useful to have a definition, how about we highlight the value of digital transformation by illustrating the difference between a traditional organization and one that has been digitally transformed? So let’s consider a hypothetical case study comparing two companies in the Grocery industry – a traditional Grocer and a “Digitally Transformed” Grocer – to see what the differences might look like.

Digital Transformation: Grocery Chain Case Study
Let’s create an example that most everyone can relate to – the Grocery business. Everyone has to buy groceries, and there is certainly plenty of business model disruption and customer disintermediation happening in the Grocery industry! So let’s compare a traditional Grocery chain with a digitally transformed Grocery chain.

Note: all the information for this exercise has been pulled from public sources, and I have provided links to those public sources.

Grocery Chain #1:
Traditional Business Model
“Our goal is to be the first choice for those customers who have the opportunity to shop locally”
Grocery Chain #2:
Digital Business Model
“To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, at get those items quickly, at the lowest possible prices.”
Customer Engagement Foundation Captures customer purchase data via in-store customer loyalty card Couples customer in-store, web and mobile purchase data with web and mobile browsing, social media activity, consumer comments and in-store and warehouse sensors to uncover actionable customer, product and operational behavioral insights
Customer Experience Minimize check out time while minimizing cashier and operating expenses

Grocery checkout resembles a breadline

Ending self-checkout experiment due to increased shrinkage costs

Leverages web apps, mobile devices, e-commerce with online shopping carts, QR codes, , and in-store IOT devices to simplify customers’ shopping experience

Patented One-click web and mobile order

Smart convenience stores without checkouts and cashiers

Introduction of “Smart” shopping carts

Marketing Leverage mass marketing programs tied to Packaged Goods Manufacturers 13 4-week cycle promotion calendars

The Costly Bargain of Trade Promotion

Ineffective Promotions Are Dragging Down Top CPG Brands

Leverage prescriptive analytics to create customer-specific recommendations and promotional offers based upon customer’s behavioral profile, product preferences, and shopping history

“Customers who bought this item also bought” recommendation engine

3 Marketing Lessons From Amazon’s Web Strategy

Personalized Marketing – Marketing one to one – A glimpse on Amazon’s strategy

Product Stocking / Merchandising Uses pre-planned Package Goods Manufacturers promotions and planograms calendar to stock stores

Planograms Among Reasons Why In-Store Merchandising Process Broken and Outdated

Retailers suffer the high cost of overstocks and out-of-stocks

Predicts and estimates what products and quantities customers are likely to buy based upon past and “similar customer” purchase patterns, upcoming events, and stocks those products as close to the physical customer as possible

Amazon Prime: Bigger, More Powerful, More Profitable than Anyone Imagined

A Prime misunderstanding: explaining Amazon Prime’s success

Amazon Prime Stock picking algorithms based on disk access methods

Delivery Exploring home delivery and curbside pickup (which still makes customer responsible for product pick up) options with mixed results; vast majority of product sales still in-store

Supermarkets pick up the pace with curbside pickup

Leveraging home delivery ecosystem, consolidated shipping orders, and delivery scheduling, but aggressively exploring own options to control costs, improve customer satisfaction and glean more operational insights

Amazon creating own over-night delivery service

Amazon Same-day delivery

Creating Amazon PrimeAir for drone home delivery

Supply Chain / Inventory Management Managing inventory across a complex network of independent and third-party manufacturers, suppliers and distribution centers

Vendor Managed Inventory improves collaboration, but Retailers giving up control of certain aspects of their business

Collaborative Planning, Forecasting, and Replenishment (CPFR) limitations

Leveraging customer product behavioral data to re-write supply chain and inventory management processes

6 Ways Amazon Is Changing Supply Chain Management

Pricing Maintain “Everyday Low Pricing” strategies with heavily-managed centralized pricing decisions

Everyday Low Pricing May Not Be the Best Strategy for Supermarkets

Dynamic pricing based upon monitoring current market and competitor data

Uses algorithms that scour the web and constantly change pricing

Partner Ecosystem Increasing local content (produce, products) in the physical stores

Ripe for Grocers: The Local Food Movement

Creates marketplaces to increase profits but more importantly provides continuous source of market data

Generates nearly 50% of profits through an open marketplace

Exploits Affiliate Marketing to drive market presence and build out partner ecosystem

Table 1:  Hypothetical Grocery Industry Digital Transformation Case Study

Digital Transformation Case Study Summary

While this assessment is certainly not thorough, I think one can start to see the dramatic differences between a traditional business model that mainly relies on a physical presence to be successful, versus a digitally transformed business model that employs these new capabilities – powered by customer, product, and operational insights – to enhance customer value, physical facilities, products and processes.

So how does this digital transformation affect the customer and the business? From a customer perspective, digital transformation can create a more seamless, more prescriptive customer engagement that yields the following benefits:

  • Easier for the customer to find the products that they want, especially those at the “long end of the tail
  • Easier for the customer to comparison shop and get recommendations from others to ensure that they are getting the product that they want at a competitive price
  • Easier for the customer to get their products and schedule delivery (same day delivery, drone delivery)
  • Easier for customers to share their shopping experiences and get timely resolution to any issues or problems

And there are significant benefits to the retailer, including:

  • Superior customer insights via more detailed and more diverse customer engagement data that can lead to optimized planning, procurement, logistics, inventory management, merchandising, marketing, sales and support processes
  • Improved customer lifecycle management (from acquisition, to maturation, to retention, to advocacy)
  • Reduced inventory costs through predictive product, market, and seasonal predictive analytics and real-time data feeds
  • Reduced security risks via a more thorough instrumentation of the entire order-to-cash cycle
  • Less product spoilage and shrinkage with customer, product and operational predictive insights
  • Superior business flexibility with the ability to identify shifting customer demands and predict the resulting customer, product and operational impacts

I would love to have the cycles to do this sort of Case Study across more industries, but I do have a day job that pays the mortgage (and Starbucks and Chipotle visits!!). The most exciting part of these new digital transformation discussions that I’ve been having with customers is that these outcomes are all now possible, and, in fact, are coming to fruition (that is, with a little guidance J).

The post What is Digital Transformation? appeared first on InFocus Blog | Dell EMC Services.

Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

Download Show Prospectus ▸ Here

The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!

Sponsors of Internet of @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on ITweetup to over 75,000 plus followers, press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo, October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Track 1. Enterprise Cloud | Cloud-Native
Track 2.
Big Data | Analytics
Track 3. Internet of Things | IIoT | Smart Cities

Track 4. DevOps | Digital Transformation (DX)

Track 5. APIs | Cloud Security | Mobility

Track 6.
AI | ML | DL | Cognitive
Track 7.
Containers | Microservices | Serverless
Track 8. FinTech | InsurTech | Token Economy

Cloud Expo | @ThingsExpo 2017 Silicon Valley
(October 31 - November 2, 2017, Santa Clara Convention Center, CA)

Cloud Expo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Download Show Prospectus ▸ Here

Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers.  

Companies are each developing their unique mix of cloud technologies and services, forming multi-cloud and hybrid cloud architectures and deployments across all major industries. Cloud-driven thinking has become the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, and the public sector.

Cloud Expo is the single show where technology buyers and vendors can meet to experience and discus cloud computing and all that it entails. Sponsors of Cloud Expo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers.
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35-minute technical session
  • Online advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage.
  • Unprecedented PR Coverage: Editorial Coverage on Cloud Computing Journal.
  • Tweetup to over 75,000 plus followers
  • Press releases sent on major wire services to over 500 industry analysts.

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez by email at events (at) sys-con.com, or by phone 201 802-3021.

The World's Largest "Cloud Digital Transformation" Event

@CloudExpo | @ThingsExpo 2017 Silicon Valley
(Oct. 31 - Nov. 2, 2017, Santa Clara Convention Center, CA)

@CloudExpo | @ThingsExpo 2018 New York 
(June 12-14, 2018, Javits Center, Manhattan)

Full Conference Registration Gold Pass and Exhibit Hall ▸ Here

Register For @CloudExpo ▸ Here via EventBrite

Register For @ThingsExpo ▸ Here via EventBrite

Register For @DevOpsSummit ▸ Here via EventBrite

Sponsorship Opportunities

Sponsors of Cloud Expo | @ThingsExpo will benefit from unmatched branding, profile building and lead generation opportunities through:

  • Featured on-site presentation and ongoing on-demand webcast exposure to a captive audience of industry decision-makers
  • Showcase exhibition during our new extended dedicated expo hours
  • Breakout Session Priority scheduling for Sponsors that have been guaranteed a 35 minute technical session
  • Online targeted advertising in SYS-CON's i-Technology Publications
  • Capitalize on our Comprehensive Marketing efforts leading up to the show with print mailings, e-newsletters and extensive online media coverage
  • Unprecedented Marketing Coverage: Editorial Coverage on ITweetup to over 100,000 plus followers, press releases sent on major wire services to over 500 industry analysts

For more information on sponsorship, exhibit, and keynote opportunities, contact Carmen Gonzalez (@GonzalezCarmen) today by email at events (at) sys-con.com, or by phone 201 802-3021.

Secrets of Sponsors and Exhibitors ▸ Here
Secrets of Cloud Expo Speakers ▸ Here

All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-4, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Delegates to Cloud Expo | @ThingsExpo will be able to attend 8 simultaneous, information-packed education tracks.

There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content.

Join Cloud Expo | @ThingsExpo conference chair Roger Strukhoff (@IoT2040), October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, for three days of intense Enterprise Cloud and 'Digital Transformation' discussion and focus, including Big Data's indispensable role in IoT, Smart Grids and (IIoT) Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) Digital Transformation in Vertical Markets.

Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 21st Cloud Expo | @ThingsExpo October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 21st International Cloud Expo October 31 - November 2, 2017 in Silicon Valley, and June 12-14, 2018, in New York City.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

The upcoming 21st International @CloudExpo@ThingsExpo, October 31 - November 2, 2017, Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY announces that its Call For Papers for speaking opportunities is open.

Submit your speaking proposal today! ▸ Here

About SYS-CON Media & Events
SYS-CON Media (www.sys-con.com) has since 1994 been connecting technology companies and customers through a comprehensive content stream - featuring over forty focused subject areas, from Cloud Computing to Web Security - interwoven with market-leading full-scale conferences produced by SYS-CON Events. The company's internationally recognized brands include among others Cloud Expo® (@CloudExpo), Big Data Expo® (@BigDataExpo), DevOps Summit (@DevOpsSummit), @ThingsExpo® (@ThingsExpo), Containers Expo (@ContainersExpo) and Microservices Expo (@MicroservicesE).

Cloud Expo®, Big Data Expo® and @ThingsExpo® are registered trademarks of Cloud Expo, Inc., a SYS-CON Events company.

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business”, is responsible for setting the strategy and defining the Big Data service line offerings and capabilities for the EMC Global Services organization. As part of Bill’s CTO charter, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He’s written several white papers, avid blogger and is a frequent speaker on the use of Big Data and advanced analytics to power organization’s key business initiatives. He also teaches the “Big Data MBA” at the University of San Francisco School of Management.

Bill has nearly three decades of experience in data warehousing, BI and analytics. Bill authored EMC’s Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements, and co-authored with Ralph Kimball a series of articles on analytic applications. Bill has served on The Data Warehouse Institute’s faculty as the head of the analytic applications curriculum.

Previously, Bill was the Vice President of Advertiser Analytics at Yahoo and the Vice President of Analytic Applications at Business Objects.

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