STRATEGY for DIGITAL TRANSFORMATION

Taken from article's of
STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION
from MIT Sloan Management Review

Becoming a Digitally Mature Enterprise

MIT Sloan Management Review and Deloitte’s1 2015 global study of digital business found that maturing digital businesses are focused on integrating digital technologies (Social, Mobile, Analytics and Cloud), in the service of transforming how their businesses work. Less-mature digital businesses are focused on solving discrete business problems with individual digital technologies.

The ability to digitally reimagine the business is determined in large part by a clear digital strategy supported by leaders who foster a culture able to change and invent the new. While these insights are consistent with prior technology evolutions, what is unique to digital transformation is that risk taking is becoming a cultural norm as more digitally advanced companies seek new levels of competitive advantage.

The following are highlights of the findings:

1. Digital strategy drives digital maturity. Only 15% of respondents from companies at the early stages of what we call digital maturity (an organization where digital has transformed processes, talent engagement and business models) say that their organizations have a clear and coherent digital strategy. Among the digitally maturing, more than 80% do.

2. The power of a digital transformation strategy lies in its scope and objectives. Less digitally mature organizations tend to focus on individual technologies and have strategies that are decidedly operational in focus. Digital strategies in the most mature organizations are developed with an eye on transforming the business.

3. Maturing digital organizations build skills to realize the strategy. Digitally maturing organizations are four times more likely to provide employees with needed skills than are organizations at lower ends of the spectrum. Consistent with our overall findings, the ability to conceptualize how digital technologies can impact the business is a skill lacking in many companies at the early stages of digital maturity.

Digital Era

Taken from McKinsey article's

Cisco’s John Chambers on the digital era

The world has now entered a digital era that will be “the biggest technology transition ever.” 

This digital era will dwarf what’s occurred in the information era and the value of the Internet today. As leaders, if you don’t transform and use this technology differently—if you don’t reinvent yourself, change your organization structure; if you don’t talk about speed of innovation—you’re going to get disrupted. And it’ll be a brutal disruption, where the majority of companies will not exist in a meaningful way 10 to 15 years from now.

This digital age is the connectivity of going from a thousand devices connected to the Internet to 500 billion. It will transform business and transform our lives. Business models will rise and fall at a tremendous speed. It will create huge opportunities - probably $19T in economic value over the next decade. That’s the size of the US economy, plus some.

But it will also result in tremendous disruption. And this is where it’s so important—whether they’re countries or companies, regardless of their size—that you either disrupt or you get disrupted. Probably 40% of enterprise customers around the world will not exist in a meaningful way 10 years from now.

Evolving the organization

When many people think about this, you want to think about the intelligence of an architecture, where you can get access to any data, any point and time you want. It’s simple to describe, but it really means you’re dealing with intelligent networks—a next generation of the Internet. But connecting 500 billion devices doesn’t get the job done. It’s the process change behind it. So you’ve got technologies like cloud or mobility and cybersecurity and the Internet of Things that are very important. That’s actually the easy part.

The hard part is how do you change your organization structure? How do you change your culture to be able to think in terms of outcomes for your customers? It’s all about speed of innovation and changing the way you do business. The majority of companies will be digital within five years, yet the majority of their digital efforts will fail, which speaks to what a CEO has to do differently.

She or he has to think much more outside the box. They have to reinvent themselves. They have to reinvent their company. Not stay doing the right thing too long. That’s what got companies in trouble in the past. But the rate of change then was much slower. Today, you’re talking about digitization being an integral part of the fabric of a company’s business strategy or the way it interfaces its supply chain with its customers. Not enabled by technology—technology will become the company.

How Cisco has changed

Focus more horizontally on how things work together as opposed to silos. If all you do is have a bunch of silos in your company that don’t really talk to each other, you’re going to get displaced by, perhaps, a small company that has just a CEO and a CIO and has $1 billion in sales.

We transformed our engineering organization from being in silos to being horizontal, taking out about 5,000 people. We worked across the groups, refocused on leaders who could work horizontally together as opposed to in silos, the majority on their own profit and loss. We changed our sales organization, which is one of the top sales organizations in high tech. Yet we changed 41% of the client interface and execs because they were selling routers and switching technology, not business outcomes, architectures, and speed-to-market delivery.

And it caused us to change our top leadership. We changed probably 40% of our top leadership over the last two years. That’s not something I’m terribly proud of, but it’s something that we had to do so that we disrupt as opposed to be disrupted. So, when I talk about, what CEOs need to do, this is what we did ourselves.

Finding innovation

The sources of innovation have to move from being something you do on the fringe to something you have to do mainline. We use M&A as a way to enter new markets, and we’re number one or number two in 16 major product families. Our targeted minimum market share is 40%, which we hit most all the time. But it’s about to change again. We have to do this faster. We have to create an environment of really rapid innovation internally.

The first step is merely making it an independent group, because if you do it inside your organization, your existing culture will kill it. Companies fail to understand the implications of how quickly this technology will transform their business. And they underestimate what it really means to their economic growth or that of their competitors.

Secondly, they stay doing the right thing too long. And that’s what gets so many of us trouble, because we’re trained to get a 3% to 5% increase in productivity. To just crank it: do a little bit better each year; cut expenses a little bit; grow the top line. This is about exponential change.

Blokir OTT bandel jadi program pemerintah ?

Dicuplik dari artikel Bisnis.com "Aplikasi Over The Top akan Diblokir. Line, WhatsApp dkk Bakal Mati"
Rabu, 24 Februari 2016, 16:44 WIB
Lukas Hendra TM

Bisnis.com, JAKARTA - Pemerintah akan melakukan pemblokiran melalui operator seluler untuk aplikasi over the top (OTT) yang tidak memenuhi ketentuan beleid soal kewajiban badan usaha tetap.

(Red. : kenapa hanya dari operator seluler ? Bagaimana dengan OTT yang melewati fixed broadband ?)

Menteri Komunikasi dan Informatika (Kominfo) Rudiantara mengatakan pihaknya tengah melakukan finalisasi untuk diterbitkannya peraturan menteri berkaitan dengan kewajiban badan usaha tetap (BUT) bagi pemain OTT yang beroperasi di Indonesia.

Dia menargetkan beleid itu akan meluncur pada akhir Maret 2016 yang di dalamnya juga menyebutkan soal masa transisi bagi OTT agar bisa memenuhi kewajiban tersebut. "Punishment kalau nggak dipenuhi, teknisnya gampang, nanti diblokir dari operator," katanya di Kantor Staf Presiden, Rabu (24/2/2016).

Dia mengungkapkan pendekatan kebijakan pemerintah di sektor telekomunikasi memang bersahabat dengan pebisnis, tetapi juga tidak terlalu lunak. Oleh karena itu, pihaknya berharap agar pelaku OTT bisa memenuhi kewajiban itu.

Namun, dia tidak ingin jika OTT hanya membuka kantor cabang saja, melainkan harus berbadan usaha di Indonesia. Para pemain OTT, lanjutnya, juga bisa membentuk badan usaha patungan (joint venture/JOV) atau bisa juga memilih bekerja sama dengan operator seluler.

(Red.: Lagi2 seluler, OTT diatas jaringan data fixed juga ada kan ?)

Rudiantara menyebutkan upaya tersebut sebagai bentuk terhadap perlindungan konsumen. Namun, upaya ini juga bisa mengeruk potensi pajak yang tidak terserap akibat OTT tidak berbadan hukum di Indonesia.

Dia mencontohkan pada 2015 iklan digital dari Indonesia memiliki nilai US$430 juta. "Kalau misalnya kena PPn 10% sudah US$43 juta, belum PPh badan," ujarnya.

Sebelumnya, Masyarakat Telematika Indonesia (Mastel) mendesak pemerintah bersikap tegas dengan memblokir OTT asing yang telah lama beroperasi dan menjadikan Indonesia hanya sebagai pasar untuk meraup keuntungan.

Nonot Harsono, Chairman of Mastel Institute memprediksi pemain OTT asing akan tumbuh dengan signifikan di Indonesia dalam beberapa tahun ke depan. Indikator itu sangat dimungkinkan sejalan dengan pertumbuhan pengguna Internet dan smartphone di Tanah Air.

Dari 255,5 juta penduduk Indonesia, 72,2 juta di antaranya merupakan pengguna Internet aktif. Di sisi lain, pengguna smartphone di Tanah Air juga telah melebihi jumlah penduduk di Tanah Air yaitu sebanyak 308 juta pengguna . Artinya, setiap satu orang Warga Negara Indonesia sampai saat ini menggunakan satu hingga dua smartphone.

“Tidak sedikit pemain OTT asing ini yang menjalankan bisnisnya di Indonesia tanpa permisi seperti Line, Whatsapp, Kakao Talk, Netflix dan masih banyak yang lainnya. Mereka seharusnya mengajukan izin terlebih dulu kalau ingin berjualan di sini,” ujarnya.

Nonot menjelaskan saat ini tidak sedikit pemain OTT asing yang mulai beroperasi di Indonesia secara vulgar seperti yang dilakukan oleh layanan video streaming Netflix beberapa waktu lalu.

Menurutnya, Netflix merupakan salah satu pemain OTT asing yang tidak memiliki izin badan usaha di Indonesia, sehingga pemerintah sulit mengenakan pajak dan biaya lainnya untuk pemasukan pemerintah. “Kami mengapresiasi sikap Telkom yang dengan tegas memblokir layanan Netflix tersebut,” tegasnya.

Win customers by targeted content and leveraging billing assets

Taken from Total Telecom's article "Time is right for telcos to profit from mobile TV"

By Mary Lennighan, in Barcelona
Tuesday 23 February 2016

Operators can win customers by offering more targeted content, leveraging their billing assets to encourage consumers to make small purchases.

Customers are willing to pay more – to a certain extent - for the right multi-screen TV service and that could mean an additional revenue stream for telecoms operators, provided they get their propositions right.

As networks evolve, telcos are able to provide multi-screen offerings and mobile apps in addition to their standard home broadband and TV offers. And while consumers, particularly the younger generations, expect this sort of capability as standard, there is still some incremental revenue to capture.

Telcos' billing assets give them a big opportunity in the market, by facilitating low-value transactions on the part of their customers.

A customer is more likely to pay for a movie rental or sign up for a Netflix package, for example, if they can add the cost to their regular bill, and as a result content providers are more likely to give a small revenue cut to the telcos.

Customers are very happy to pay a slight premium, on top of a standard home broadband and TV package for a TV bundle that comes with the right content, said Lewis Insight.

Customers will pay for their fixed and mobile connectivity, but operators can generate "thin-ish layers of revenue [on top]… as long as it's not extortionate".

This is especially true for telcos competing with high-end cable packages, where customers are paying a premium for a plethora of channels, many of which they don't actually want. Telecoms operators can be more relevant by offering more targeted content.