How IoT And Connected Vehicles Are Redefining Fleet Management

John Ward

For years now, we have been hearing – and, in many cases, learning firsthand – how connected cars are changing the everyday lives of individual car owners.

But what about the impact on those folks who own dozens, or even thousands, of vehicles? What do connected vehicles mean to them?

ARI has a special perspective on this subject. As the largest privately held fleet-management company in the world, ARI currently manages more than 1.4 million vehicles around the globe. Its goal is to help customers control the total cost of ownership of fleets that can include light, medium, and heavy duty trucks, as well as cars.

It’s clear that ARI believes the combination of IoT technologies and network connectivity are driving advancements in fleet management that involve both car and driver.

Under the hood

In fleet management, it starts with capitalizing on all the data that a modern fleet generates. Connected cars can crank out up to 25 gigabytes of data per hour.

“We help our customers make educated decisions about their fleets by translating data points into actual strategies,” says Majk Strika, the managing director for ARI Fleet Europe.

ARI officials explain that telematics are already an integral part of more than 100,000 of the vehicles the company manages – and that number is growing rapidly. As a result, ARI processes more than a terabyte of telematics on a monthly basis.

“With vehicles that have telematics and IoT capabilities, we are really seeing inside that vehicle,” says Bill Powell, director of enterprise architecture at ARI. “When we take our fleet management information and analyze that together with IoT information, patterns begin to emerge.”

ARI is using technologies like an in-memory computing platform and digital innovation system to drive this insight to the company’s call center. Here, more than 400 ASE-certified technicians rely on this information to make decisions affecting critical issues like vehicle maintenance and repair, warranty protection, and driver safety for their clients.

Behind the wheel

“But the Holy Grail is figuring out what’s going on behind the wheel,” Powell says, “interacting and connecting with that driver.”

His colleagues agree. “There’s a lot of information we can get around driver safety and driver behavior,” notes ARI’s senior vice president of European operations, Mark Bryan, in a video filmed at a recent SAP Leonardo Live event.

And providing drivers with real-time information can promote behavior that results in cost savings. Bryan describes a common scenario where GPS data combined with information about local gas prices can direct drivers to the lowest-cost fuel provider.

“That’s a simple example,” says Bryan. “But fuel is the largest part of our clients’ spend. Consider the potential impact if you can continually provide that information to 2,000 drivers.”

So where can you see technologies like IoT, network connectivity, and advanced analytics at work in fleet management?

The short answer is, under the hood and behind the wheel.

For more insight on digital leaders, check out the SAP Center for Business Insight report, conducted in collaboration with Oxford Economics, “SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart.”

Please follow me on Twitter @JohnGWard3.

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About John Ward

John Ward is an Integrated Marketing Expert at SAP. He has over 30 years of professional writing experience that includes marketing material, sales support, technical documentation, video scripting, and magazine articles.

Fintech And Banking: A Lasting Relationship

Jennifer Horowitz

Mobile payments, machine learning, and robotic investing are among the latest win-win disruptive innovations that are reshaping transactions, lending practices, and customer experiences in the financial sector. Just last year, CB Insights reported more financial technology (fintech) startup acquisitions occurred in 2017 by leading U.S. banks than any other year.

To add to the disruption, fintech startups worldwide are transforming how consumers manage their money. Banking apps are reshaping mobile payment systems, live chatbots are in full effect, and interfaces are redefining the traditional banking models.  Banks are realizing how much stronger the customer experience is when it’s delivered through fintech rather than simply offering free checking and savings accounts as promotions.

Customer-centricity

The fintech/banking partnership is an ideal pairing. A key driver for making this marriage work is customer-centricity. The partnership of a fintech and a bank can allow both businesses to focus on delivering customer value through technology, transparency, and simplicity.

One of the main challenges faced by the financial services industry is connecting customers and building customer trust. With customer-centricity, technology companies are viewed as even more responsible for the end users.

Advantages of fintech have brought technology disruptors to the front of the line with banks. At SXSW this year, Capital One rented out Antone’s, a well-known blues club for four days. The bank meant business, hosting a series of fintech events and highlighting Capital One’s own fintech innovations, such as its latest chatbot, Eno. Eno was developed as part of an effort to provide digital transparency to consumers.

The bond between banking, digital, and technology in financial services is a game-changer. For example, if it takes a customer only a few minutes to open a bank account online, visiting a branch office makes little sense. And banks such as ING and others have converted their banking into cashless units.

This is the future.

For more on fintech in banking, see Embracing Digital Transformation: The Future Of Banking.

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Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

What Makes A Successful Smart City?

Phil King

It was back in 2011 that Mark Deakin and Husam Al Wear defined the concept of a smart city as a place where a range of electronic and digital technologies are deployed to transform living and working environments. In practice, this could mean using physical devices and sensors to optimize the performance of city operations and services, monitoring what’s happening across the city, interacting with communities, managing the city’s evolution, and generally improving the lives and safety of citizens.

As things stand today, I can’t think of many places in the UK that fit this kind of advanced definition. Simple things like reliable Internet access in urban areas still remain a struggle for many, let alone genuine smart city examples of the Internet of Things (IoT) deployed to create joined-up, connected spaces.

But that doesn’t mean our cities are not smart at all or on a pathway to becoming smarter for their citizens. Indeed, for many towns and cities in the UK, the term “smart city” is more of an aspiration than a reality at present. Improvements and innovations have been incremental rather than wholesale. The key is to continue investing in technology, pushing development, and looking towards the urban outlier smart cities to see what we in Britain can learn.

Defining what we mean by “smart”

London Mayor Sadiq Khan recently announced that he wants London to be the world’s smartest city by 2020. But with only two years left to fulfill that vision, it seems quite the ask – especially as London was recently overtaken by Bristol as the smartest city in the UK.

In a way, this suggests that we need to reassess what we mean by “smart” if we’re to deliver changes that will truly improve the lives of UK citizens and to perhaps reconsider the milestones at which we’re aiming.

We’ve had glimpses of what can be achieved. From the Bristol Is Open project that saw the city jump to the top of the UK’s innovation table, to Milton Keynes’ commitment to using technology to become more sustainable with its MK:Smart initiative. And Manchester’s CityVerve project. All of these examples highlight the fact that there’s no reason why London, Birmingham, Newcastle, Glasgow, Cardiff, and cities all over the UK can’t act, think, and be smarter now.

Time to act ahead of Brexit impact

There is, of course, an element of urgency about this. It will be increasingly important for cities to embrace innovative technology ahead of any Brexit legislation coming into force. With the UK on the path to exit the European Union, the pressure will mount on cities to not only remain attractive to foreign visitors but also to ensure they provide a seamless, enjoyable experience to those living there.

As things stand, the UK is slightly behind the curve when it comes to smart technology deployment. But there are examples we as a nation can look to when seeking improvements. And I’m not just talking about capitals and major conurbations.

The French town of Antibes, for instance, uses IoT software to control its water management system. Officials use intelligent solutions to monitor and analyze the town’s water distribution system over 315 kilometers, aggregating 15,000 data points per hour collected from more than 2,000 sensors to look at temperature, salinity, chlorine levels, pH, and the pumps and valves that steer the flow of water.

Importantly, the innovation is aligned to economic and social priorities. Antibes is a lively resort in Southeastern France with a summer population of 250,000, triple the number of year-round citizens. People are attracted by the flair of the coast, water sports, and the French joie de vivre. Keeping their water infrastructure efficient and citizens safe is of the utmost importance.

The solution now helps the city anticipate breakdowns, optimize maintenance schedules, and plan future investments. And, as any smart city solution should, it provides the best service for citizens at the best cost. With citizens paying less than half the national average per cubic meter, Antibes offers a great example of how public sector organizations can take mountains of data and transform it into valuable information, then use that to inform local knowledge and increase public safety.

UK organizations should absolutely look at and learn from innovative deployments of smart technology around the world if they are to improve the lives of their citizens and the experiences they offer to visitors. Happily, there’s plenty of support out there, including the government-led Future Cities Catapult, Innovate UK, and the Scottish Smart Cities initiatives. So it’s time for local governments to act and get the UK on the map in terms of smart technology deployments.

Learn how SAP smart cities technologies help local governments like Antibes improve citizen services and livability, grow economic prosperity, and keep pace with change – without dipping into extra budget or resources.

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Phil King

About Phil King

Drawing from his 30 years of experience in IT and public sector organizations, Phil King is the Sales Director for the Public Sector in the UK and Ireland at SAP. He is passionate about working with the public sector to drive innovation that improves people’s lives and makes the world a better place.

Hack the CIO

By Thomas Saueressig, Timo Elliott, Sam Yen, and Bennett Voyles

For nerds, the weeks right before finals are a Cinderella moment. Suddenly they’re stars. Pocket protectors are fashionable; people find their jokes a whole lot funnier; Dungeons & Dragons sounds cool.

Many CIOs are enjoying this kind of moment now, as companies everywhere face the business equivalent of a final exam for a vital class they have managed to mostly avoid so far: digital transformation.

But as always, there is a limit to nerdy magic. No matter how helpful CIOs try to be, their classmates still won’t pass if they don’t learn the material. With IT increasingly central to every business—from the customer experience to the offering to the business model itself—we all need to start thinking like CIOs.

Pass the digital transformation exam, and you probably have a bright future ahead. A recent SAP-Oxford Economics study of 3,100 organizations in a variety of industries across 17 countries found that the companies that have taken the lead in digital transformation earn higher profits and revenues and have more competitive differentiation than their peers. They also expect 23% more revenue growth from their digital initiatives over the next two years—an estimate 2.5 to 4 times larger than the average company’s.

But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.

Companies that are making the grade understand that unlike earlier technical advances, digital transformation doesn’t just support the business, it’s the future of the business. That’s why 60% of digital leading companies have entrusted the leadership of their transformation to their CIO, and that’s why experts say businesspeople must do more than have a vague understanding of the technology. They must also master a way of thinking and looking at business challenges that is unfamiliar to most people outside the IT department.

In other words, if you don’t think like a CIO yet, now is a very good time to learn.

However, given that you probably don’t have a spare 15 years to learn what your CIO knows, we asked the experts what makes CIO thinking distinctive. Here are the top eight mind hacks.

1. Think in Systems

A lot of businesspeople are used to seeing their organization as a series of loosely joined silos. But in the world of digital business, everything is part of a larger system.

CIOs have known for a long time that smart processes win. Whether they were installing enterprise resource planning systems or working with the business to imagine the customer’s journey, they always had to think in holistic ways that crossed traditional departmental, functional, and operational boundaries.

Unlike other business leaders, CIOs spend their careers looking across systems. Why did our supply chain go down? How can we support this new business initiative beyond a single department or function? Now supported by end-to-end process methodologies such as design thinking, good CIOs have developed a way of looking at the company that can lead to radical simplifications that can reduce cost and improve performance at the same time.

They are also used to thinking beyond temporal boundaries. “This idea that the power of technology doubles every two years means that as you’re planning ahead you can’t think in terms of a linear process, you have to think in terms of huge jumps,” says Jay Ferro, CIO of TransPerfect, a New York–based global translation firm.

No wonder the SAP-Oxford transformation study found that one of the values transformational leaders shared was a tendency to look beyond silos and view the digital transformation as a company-wide initiative.

This will come in handy because in digital transformation, not only do business processes evolve but the company’s entire value proposition changes, says Jeanne Ross, principal research scientist at the Center for Information Systems Research at the Massachusetts Institute of Technology (MIT). “It either already has or it’s going to, because digital technologies make things possible that weren’t possible before,” she explains.

2. Work in Diverse Teams

When it comes to large projects, CIOs have always needed input from a diverse collection of businesspeople to be successful. The best have developed ways to convince and cajole reluctant participants to come to the table. They seek out technology enthusiasts in the business and those who are respected by their peers to help build passion and commitment among the halfhearted.

Digital transformation amps up the urgency for building diverse teams even further. “A small, focused group simply won’t have the same breadth of perspective as a team that includes a salesperson and a service person and a development person, as well as an IT person,” says Ross.

At Lenovo, the global technology giant, many of these cross-functional teams become so used to working together that it’s hard to tell where each member originally belonged: “You can’t tell who is business or IT; you can’t tell who is product, IT, or design,” says the company’s CIO, Arthur Hu.

One interesting corollary of this trend toward broader teamwork is that talent is a priority among digital leaders: they spend more on training their employees and partners than ordinary companies, as well as on hiring the people they need, according to the SAP-Oxford Economics survey. They’re also already being rewarded for their faith in their teams: 71% of leaders say that their successful digital transformation has made it easier for them to attract and retain talent, and 64% say that their employees are now more engaged than they were before the transformation.

3. Become a Consultant

Good CIOs have long needed to be internal consultants to the business. Ever since technology moved out of the glasshouse and onto employees’ desks, CIOs have not only needed a deep understanding of the goals of a given project but also to make sure that the project didn’t stray from those goals, even after the businesspeople who had ordered the project went back to their day jobs. “Businesspeople didn’t really need to get into the details of what IT was really doing,” recalls Ferro. “They just had a set of demands and said, ‘Hey, IT, go do that.’”

Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants.

But that was then. Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants. “If you’re building a house, you don’t just disappear for six months and come back and go, ‘Oh, it looks pretty good,’” says Ferro. “You’re on that work site constantly and all of a sudden you’re looking at something, going, ‘Well, that looked really good on the blueprint, not sure it makes sense in reality. Let’s move that over six feet.’ Or, ‘I don’t know if I like that anymore.’ It’s really not much different in application development or for IT or technical projects, where on paper it looked really good and three weeks in, in that second sprint, you’re going, ‘Oh, now that I look at it, that’s really stupid.’”

4. Learn Horizontal Leadership

CIOs have always needed the ability to educate and influence other leaders that they don’t directly control. For major IT projects to be successful, they need other leaders to contribute budget, time, and resources from multiple areas of the business.

It’s a kind of horizontal leadership that will become critical for businesspeople to acquire in digital transformation. “The leadership role becomes one much more of coaching others across the organization—encouraging people to be creative, making sure everybody knows how to use data well,” Ross says.

In this team-based environment, having all the answers becomes less important. “It used to be that the best business executives and leaders had the best answers. Today that is no longer the case,” observes Gary Cokins, a technology consultant who focuses on analytics-based performance management. “Increasingly, it’s the executives and leaders who ask the best questions. There is too much volatility and uncertainty for them to rely on their intuition or past experiences.”

Many experts expect this trend to continue as the confluence of automation and data keeps chipping away at the organizational pyramid. “Hierarchical, command-and-control leadership will become obsolete,” says Edward Hess, professor of business administration and Batten executive-in-residence at the Darden School of Business at the University of Virginia. “Flatter, distributive leadership via teams will become the dominant structure.”

5. Understand Process Design

When business processes were simpler, IT could analyze the process and improve it without input from the business. But today many processes are triggered on the fly by the customer, making a seamless customer experience more difficult to build without the benefit of a larger, multifunctional team. In a highly digitalized organization like Amazon, which releases thousands of new software programs each year, IT can no longer do it all.

While businesspeople aren’t expected to start coding, their involvement in process design is crucial. One of the techniques that many organizations have adopted to help IT and businesspeople visualize business processes together is design thinking (for more on design thinking techniques, see “A Cult of Creation“).

Customers aren’t the only ones who benefit from better processes. Among the 100 companies the SAP-Oxford Economics researchers have identified as digital leaders, two-thirds say that they are making their employees’ lives easier by eliminating process roadblocks that interfere with their ability to do their jobs. Ninety percent of leaders surveyed expect to see value from these projects in the next two years alone.

6. Learn to Keep Learning

The ability to learn and keep learning has been a part of IT from the start. Since the first mainframes in the 1950s, technologists have understood that they need to keep reinventing themselves and their skills to adapt to the changes around them.

Now that’s starting to become part of other job descriptions too. Many companies are investing in teaching their employees new digital skills. One South American auto products company, for example, has created a custom-education institute that trained 20,000 employees and partner-employees in 2016. In addition to training current staff, many leading digital companies are also hiring new employees and creating new roles, such as a chief robotics officer, to support their digital transformation efforts.

Nicolas van Zeebroeck, professor of information systems and digital business innovation at the Solvay Brussels School of Economics and Management at the Free University of Brussels, says that he expects the ability to learn quickly will remain crucial. “If I had to think of one critical skill,” he explains, “I would have to say it’s the ability to learn and keep learning—the ability to challenge the status quo and question what you take for granted.”

7. Fail Smarter

Traditionally, CIOs tended to be good at thinking through tests that would allow the company to experiment with new technology without risking the entire network.

This is another unfamiliar skill that smart managers are trying to pick up. “There’s a lot of trial and error in the best companies right now,” notes MIT’s Ross. But there’s a catch, she adds. “Most companies aren’t designed for trial and error—they’re trying to avoid an error,” she says.

To learn how to do it better, take your lead from IT, where many people have already learned to work in small, innovative teams that use agile development principles, advises Ross.

For example, business managers must learn how to think in terms of a minimum viable product: build a simple version of what you have in mind, test it, and if it works start building. You don’t build the whole thing at once anymore.… It’s really important to build things incrementally,” Ross says.

Flexibility and the ability to capitalize on accidental discoveries during experimentation are more important than having a concrete project plan, says Ross. At Spotify, the music service, and CarMax, the used-car retailer, change is driven not from the center but from small teams that have developed something new. “The thing you have to get comfortable with is not having the formalized plan that we would have traditionally relied on, because as soon as you insist on that, you limit your ability to keep learning,” Ross warns.

8. Understand the True Cost—and Speed—of Data

Gut instincts have never had much to do with being a CIO; now they should have less to do with being an ordinary manager as well, as data becomes more important.

As part of that calculation, businesspeople must have the ability to analyze the value of the data that they seek. “You’ll need to apply a pinch of knowledge salt to your data,” advises Solvay’s van Zeebroeck. “What really matters is the ability not just to tap into data but to see what is behind the data. Is it a fair representation? Is it impartial?”

Increasingly, businesspeople will need to do their analysis in real time, just as CIOs have always had to manage live systems and processes. Moving toward real-time reports and away from paper-based decisions increases accuracy and effectiveness—and leaves less time for long meetings and PowerPoint presentations (let us all rejoice).

Not Every CIO Is Ready

Of course, not all CIOs are ready for these changes. Just as high school has a lot of false positives—genius nerds who turn out to be merely nearsighted—so there are many CIOs who aren’t good role models for transformation.

Success as a CIO these days requires more than delivering near-perfect uptime, says Lenovo’s Hu. You need to be able to understand the business as well. Some CIOs simply don’t have all the business skills that are needed to succeed in the transformation. Others lack the internal clout: a 2016 KPMG study found that only 34% of CIOs report directly to the CEO.

This lack of a strategic perspective is holding back digital transformation at many organizations. They approach digital transformation as a cool, one-off project: we’re going to put this new mobile app in place and we’re done. But that’s not a systematic approach; it’s an island of innovation that doesn’t join up with the other islands of innovation. In the longer term, this kind of development creates more problems than it fixes.

Such organizations are not building in the capacity for change; they’re trying to get away with just doing it once rather than thinking about how they’re going to use digitalization as a means to constantly experiment and become a better company over the long term.

As a result, in some companies, the most interesting tech developments are happening despite IT, not because of it. “There’s an alarming digital divide within many companies. Marketers are developing nimble software to give customers an engaging, personalized experience, while IT departments remain focused on the legacy infrastructure. The front and back ends aren’t working together, resulting in appealing web sites and apps that don’t quite deliver,” writes George Colony, founder, chairman, and CEO of Forrester Research, in the MIT Sloan Management Review.

Thanks to cloud computing and easier development tools, many departments are developing on their own, without IT’s support. These days, anybody with a credit card can do it.

Traditionally, IT departments looked askance at these kinds of do-it-yourself shadow IT programs, but that’s changing. Ferro, for one, says that it’s better to look at those teams not as rogue groups but as people who are trying to help. “It’s less about ‘Hey, something’s escaped,’ and more about ‘No, we just actually grew our capacity and grew our ability to innovate,’” he explains.

“I don’t like the term ‘shadow IT,’” agrees Lenovo’s Hu. “I think it’s an artifact of a very traditional CIO team. If you think of it as shadow IT, you’re out of step with reality,” he says.

The reality today is that a company needs both a strong IT department and strong digital capacities outside its IT department. If the relationship is good, the CIO and IT become valuable allies in helping businesspeople add digital capabilities without disrupting or duplicating existing IT infrastructure.

If a company already has strong digital capacities, it should be able to move forward quickly, according to Ross. But many companies are still playing catch-up and aren’t even ready to begin transforming, as the SAP-Oxford Economics survey shows.

For enterprises where business and IT are unable to get their collective act together, Ross predicts that the next few years will be rough. “I think these companies ought to panic,” she says. D!


About the Authors

Thomas Saueressig is Chief Information Officer at SAP.

Timo Elliott is an Innovation Evangelist at SAP.

Sam Yen is Chief Design Officer at SAP and Managing Director of SAP Labs.

Bennett Voyles is a Berlin-based business writer.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.
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CEO Priorities And Challenges In The Digital World

Dr. Chakib Bouhdary

Digital transformation is here, and it is moving fast. Companies are starting to realize the enormous power of digital technologies like artificial intelligence (AI), Internet of things (IoT) and blockchain. These technologies will drive massive opportunities—and threats—for every company, and they will impact all aspects of business, including the business model. In fact, business velocity has never been this fast, yet it will never be this slow again.

To move quickly, companies need to be clear on what they want to achieve through digital transformation and understand the possible roadblocks. Based on my meetings with customer executives across regions and industries, I have learned that CEOs often have the same three priorities and face the same three challenges:

1. Customer experience – No longer defined by omnichannel and personalized marketing.

Not surprisingly, 92 percent of digital leaders focus on customer experience. However, this is no longer just about omnichannel and personalized marketing – it is about the total customer experience. Businesses are realizing that they need to reimagine their value proposition and orchestrate changes across the value chain – from the first point of interaction to manufacturing, to shipment, to service – and be able to deliver the total customer experience. In some cases, it will even be necessary to change the core product or service itself.

2. Step change in productivity – Transform productivity and cost structure through digital technologies.

Businesses have been using technology to achieve growth for decades, but by combining emerging technologies, they can now achieve a significant productivity boost and reduce costs. For this to happen, companies must first identify the scenarios that will drive significant change in productivity, prioritize them based on value, and then determine the right technologies and solutions. Both Mckinsey and Boston Consulting Group expect a 15 to 30 percent improvement in productivity through digital advancements – blowing the doors off business-as-usual and its incremental productivity growth of 1 to 2 percent.

3. Employee engagement – Fostering a culture of innovation should be at the core of any business.

Companies are looking to create an environment that encourages creativity and innovation. Leaders are attracting the needed talent and building the right skill sets. Additionally, they aim for ways to attract a diverse workforce, improve collaborations, and empower employees – because engaged employees are crucial in order to achieve the best results. This Gallup study reveals that approximately 85 percent of employees worldwide are performing below their potential due to engagement issues.

As CEOs work towards achieving these three desired outcomes, they face some critical challenges that they must address. I define the top three challenges as follows: run vs. innovate, corporate cholesterol, and digital transformation roadmap.

1. Run vs. innovate – To be successful you must prioritize the future.

The foremost challenge that CEOs are facing is how they can keep running current profitable businesses while investing in future innovations. Quite often these two conflict as most executives mistakenly prioritize the first and spend much less time on the latter. This must change. CEOs and their management teams need to spend more time thinking about what digital is for them, discuss new ideas, and reimagine the future. According to Gartner, approximately 50 percent of boards are pushing their CEOs to make progress on digital. Although this is a promising sign, digital must become a priority on every CEOs agenda.

2. Corporate cholesterol – Do not let company culture get in the way of change.

The older the company is, the more stuck it likely is with policies, procedures, layers of management, and risk averseness. When a company’s own processes get in the way of change, that is what I call “corporate cholesterol.” CEOs need to change the culture, encourage cross-team collaborations, and bring in more diverse thinking to reduce the cholesterol levels. In fact, both Mckinsey and Capgemini conclude that culture is the number-one obstacle to digital effectiveness.

3. Digital transformation roadmap – Digital transformation is a journey without a destination.

Many CEOs struggle with their digital roadmap. Questions like: Where do I start? Can a CDO or another executive run this innovation for me? What is my three- to five-year roadmap? often come up during the conversations. Most companies think that there is a set roadmap, or a silver bullet, for digital transformation, but that is not the case. Digital transformation is a journey without a destination, and each company must start small, acquire the necessary skills and knowledge, and continue to innovate.

It is time to face the digital reality and make it a priority. According to KPMG, 70 percent to 80 percent of CEOs believe that the next three years are more critical for their company than the last fifty. And there is good reason to worry, as 75 percent of S&P 500 companies from 2012 will be replaced by 2027 at the current disruption rate.

Download this short executive document. 

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Dr. Chakib Bouhdary

About Dr. Chakib Bouhdary

Dr. Chakib Bouhdary is the Digital Transformation Officer at SAP. Chakib spearheads thought leadership for the SAP digital strategy and advises on the SAP business model, having led its transformation in 2010. He also engages with strategic customers and prospects on digital strategy and chairs Executive Digital Exchange (EDX), which is a global community of digital innovation leaders. Follow Chakib on LinkedIn and Twitter