BTOES Insights Official
June 30, 2020

iBPM Live - SPEAKER SPOTLIGHT : Digital Transformation - Why, Where, How, & What

Courtesy of O'Connor's Faisal Velani, below is a transcript of his speaking session on 'Digital Transformation - Why, Where, How, & What' to Build a Thriving Enterprise that took place at BTOES iBPM Live Virtual Conference.



Session Information:

In this new world post COVID, Digital Transformation is not only a desire for companies, it has become a necessity to survive and thrive. Current and upcoming technology changes are forcing the hand of many organizations that have been resisting this change. 

In this session we answer the questions of : 

  • Why should your company focus on Digital Transformation
  • Where is the current environment pushing Digital Transformation
  • How to start the process of Digital Transformation
  • What types of companies are succeeding in Digital Transformation

Session Transcript:

To our next speaker, and the closing speaker of the conference, Feisal Malani, who has been teaching business strategy coaching for over a decade, really helping organizations transform the culture, deployment, leaders, create operational efficiencies, and scale out to create a culture of innovation, and excellence, or at least a cultural gianni. So, feisal, welcome, and I will now hand.

Awesome. Thank you, Brian. Thank you for the introduction. It is great to be here, right now. Let me just make sure I'm sharing the right screen with you guys real quick.

All right. Brian, can you see my? Can you see my slides?


Sorry, ..., yes, I can see your slides, Not a problem.

Perfect, all right.

Screenshot (51)Alright, perfect, it's, it's a great pleasure to be here. Again. Brian, I wanna, I wanna thank you for the introduction, and honestly the, the entire team here at ..., for putting together such an amazing digital event. It really is mind boggling how you guys have been able to pivot so quickly, and these uncertain times. I really quickly want to do an introduction of Who Villani Consulting is and a little bit about myself.

So, again, my name is Feasible, Lani, and I'm the Founder and Chief Visionary Officer here at ... Consulting. We help organizations create a culture of growth, innovation, and excellence, or, as I call it, a culture of G E.

Now, before I started my own consulting firm, a bulk of my corporate career was spent working with the service industry, with some major players, and some smaller organizations, as well. And what I saw was a shift or a transformation coming.

See, we weren't at an inflection point and how business and technology work together.

Technology was starting to become one of the, if not the biggest, thing in business. Today, I want to talk to you about that transformation and answer for simple questions for you.

Btog CTAFeisal, we can't see your screen at the moment he didn't show.

Oh, I'm so sorry, can you see it now?

Yes, we can, thank you.

No worries, OK.

So, question one is, why should your company focus on digital transformation right now?

Question two is, where will the post covert 19 environment be for digital transformation?

Question three, How to start the process of digital transformation 10, and number four, what types of companies are actually succeeding at digital transformation currently, right now?

So, let's start with the why. Now, today, if you're a company that can't integrate your technologies, then it'll be extremely difficult for you to do well in the marketplace.

Now, there's some companies out here for whom this concept as a complete no-brainer, right? They've adopted it, and they're actively working on it, but there's a ton of smaller companies and some big corporations, as well, that have what we call these legacy, or these home-grown systems that are limited, and these companies are actively avoiding this inevitable change. See, the belief is that digital transformation is not needed, especially in their business, right? Nobody in their industry is doing it. So why do they need to worry about it? Let me tell you right now, no matter what industry you're in, there's already a digital master leading the charge.

The problem is, usually, they're not a part of your current competitors list and that you just don't know about them.

3-Jun-30-2020-08-31-08-88-AMIf you don't believe me, here's an example of one of the sexiest industries in the world.

Enjoy it.

Now, typically, insurance company takes anywhere between 2 to 8 weeks to process your claim, that from the time that the claim has come in, to risk fraud, and processing the payment all the way out to you, today, weeks. Now, you can just imagine the amount of internal processes, communications, and paperwork. This one order goes through.

Now, here comes a new company in the marketplace, Lemonade. Now, Brian's going to have this pulled up. Can you guys guess, for me how long it takes eliminate to process your claim?

And I'm gonna give you guys a little bit longer here.

It looks like we've got a few more answers coming in.

I ran, what did we have?

Under NaN, 50% of you guys have under NaN, all right. Lemonade, you're right, can process your claim from the time that it comes in from risk fraud and processing your payment all the way out.

Again, under NaN, they do the help of AI and 18 anti fraud algorithms, were used to take up to eight weeks at a time and resources can now almost be done instantaneously.

These transformative companies have shifted the power, which now lies within the hands of the consumers.

Here's the company that can instantly tell you if your claim has been approved, and find you within the next couple of days, Do you think they were on the radar of Mass Mutual, or any other the big insurance firms that were out there, Right, think back 25 years, and think of a retail environment.

Big box, retailers like Wal-Mart, were leading the charge, leaving little or no profit margin for anybody who dare to enter the industry. And here comes a small company out of a garage. You guys might have heard of them, They're called Amazon, and they completely revolutionize the retail industry, digital transformation. In fact, in 20 18, Amazon officially reached a valuation of $1000 billion. Do you think they were on Wal-Mart's radar?

Screenshot (4)See, with the advent and availability of technology across the globe, anyone, anywhere at any time will and can challenge your current business model.

So, it's important for you to challenge your own business model, because if you're not doing it, somebody will do it for you. And that is why you have to start the process right now.

The technologies that are actually coming up on the horizon, the ones that are coming right now will make the past few years look like a tip of an iceberg.

Technology and innovation are accelerating at a rate, unimaginable to anyone here. Your organization needs to be prepared to integrate to these new technologies. And that is the key word here. It's integrate.

That is the main problem with home-grown or legacy systems. In order for them to integrate, you have to have onboard a staff that can continuously change and adapt your technology.

Even if you do have this, it puts a strain on your organization. The strain of time, The strain of money, and usually, the strain of resources.

Also, with new technologies coming out, what seems like every day now, smaller teams just can't keep up with the exponential change that's going on in the marketplace. The cost of continuing education alone will put some companies in the red. Again, that is why you need to start right now.

So now that you understand the why, let's talk about where we stand today.

The world is a much different place today than it was about four months ago.

Covered in 19 has changed. Everything, or communication models have changed for our clients and for our customers. The way we used to work with our teams and the way we used to talk to our customers is vastly different now than it was four months ago.

Delivery models have changed. If you're a company that sells physical products, you've had to figure out a way to provide contactless deliveries. Even if you're a service company to fulfill your orders, you've had to create workarounds by providing your employees with safety equipment and take all other necessary measures to ensure delivery.

Our internal operations, whether voluntary or not they have all changed with multiple teams working from home. How do we communicate with our people? How do we hold effective meetings? How do we resolve pending issue, to deal with the increasing client demand and so forth?

The expectations of our employees, our customers, and our stakeholders have all changed. They're all demanding more from our companies. They've asked us to make adjustments on the fly and still be effective at what we do. And honestly, companies have found a way to get it done.

In order to change the way we work, we always need to change our behaviors first in order to change behaviors. We have to change our beliefs. What is human?

take the most change, but what is the one thing that is constant in this world?

It's changed, right, We've got all these change. All these things changing around us, and our ability to adapt to this change is what's going to set us apart.

Now, up until now, changing belief was the hardest part of this entire process.

See, there are leaders in these organizations who have risen up the ranks by doing certain things and their beliefs are ingrained.

The hardest part was to convince them now, to change the ways that have brought them so much success, to create this paradigm shift.

Winston Churchill once said, That a good crisis is a terrible, terrible thing to waste. There is no better example of that than now.

Due to the pandemic companies who've been delaying or are working on digital transformation for years now have somehow pulled it off in a matter of months.

Our education system is a great example of this and we all know how adapt governmental institutions are to change, right?

Despite that, my daughter has been on a Zoom call almost every day, giving her the ability to continue her education.

So, what's so different now? Right? Why?

All of a sudden these impossible feat have become possible because they had to write There was no other choice.

They shifted their thinking. Instead of giving small pushes throughout the year, they put their full focus behind this change and it's amazing what focus can do for you.

If you think about it, the sun hits us with enormous amounts of light to add today.

Yet, if we just took a fraction of that energy and focused it, we can create a laser that can cut dianetics. So, this crisis has brought with it the opportunity to create, focus, focus on a singular goal, Business continuity by any means necessary.

Screenshot (51)So, now, more than ever, Not only do you need to worry about that company in their garage, but you even now have to worry about your existing competitors who have put their full focus on digital transformation. The post covered landscape of all industries will be dramatically different. And the ones who have implemented digital transformation as part of their strategy moving forward, will have a distinct competitive advantage.

So, now that you know why you need to do, and where we stand, let us see what kind of companies have started digital transformation, and how they've started to, Contrary to House Kemple PowerPoint slides, make it, Look, digital transformation is a messy process. It's like riding a bike for the first time. You can't just wake up one day and say, we're going to transform our company.

You will fall, more often than you life, and your initiative will have its fair share of critics, threw out the organization.

That is why digital transformation, It has to be a top driven initiative. It has to be driven by strong leadership.

If you want true transformation in your company, there has to be a consensus within your leadership team, and there needs to be a full buy in.

Most companies think that digital transformation is about the internet, or connecting to social media. That is far, far from the truth. Digital transformation is much, much bigger than that.

At the heart of digital China.

Feisal, with most your Speaking.

Disconnectedness is what drives this change, it's breaking down silos and hierarchies that have been created over time, focusing more on working like a network that is testing and sharing relevant information openly.

If there's an absence of true buy in from your leadership team here, you will start to opt out in the middle of the process. So you need to first obtain a full buy in.

Right? Now, the digital transformation actually has three factors associated to it.

The first one is your business model. This is how you make money, and how you collect one. Or you have you on cash, checks, credit cards, or have you adopted to apps, Apple Pay, Google Pay yet.

Every business, sooner or later, will be a digital business in the future.

The second one is your customer experience. This is about revamping the customer experience with great touchpoints and relevant data.

Do you only have a website, or have you developed an app?

Are you communicating through, e-mail that blast, or are you working through behavior based activities?

Those sorts of things. Now, these first two things are what most companies usually focus on, because that's what they're aware of, and that's the issue that they're trying to solve.

The last one is your operations. This is anything that has to do with your internal processes. Communications within the company, how your people work, and the data flow within the organization to create transparency.

This is one area that is completely under the radar for most companies. See, most companies think that just by purchasing a tool, again, like a shared document program or Slack, it will solve all their internal issues.

Digital transformation is a strategy based approach. We should include digitizing your core processes that will create a massive productivity improvement within the company. And that will eventually directly create a positive impact to your bottom line.

So the question then becomes, where do you actually start?

Your strategy for digital transformation should have the customer at the heart of it, or a full 360 degree view of the customer.

Start with the customer journey process to see where you can make improvements.

Most digital master's work from the outside in to really understand the problem that their customers are facing, while dealing with the company, and then work to decrease, or to remove those barriers completely.

Uber is a great example of this. Rather than calling for a cab and waiting endlessly, Uber found a way to match up their consumers with their drivers in real time, knowing exactly how far the driver is, and the rating of the driver based on other customers.

So, once you know what the customer wants, then focus on streamlining your internal operations to remove the constraints of time, paper, and any other low value activities.

So, again, let's take a look at eliminate here. as an example. They reduce their internal operations from 2 to 8 weeks down to an almost instant decision making, that had to cost them the value of time and money, and they were able to remove all these low value activities from their processes.

Lastly, once you have focused on customer and internal operations, then focused on your business model here, again, Uber is a great example: consumers never have to take out their cash for their card. They just step out of the car, and the payment has already been made.

In fact, Amazon has actually created a physical stores called Amazon Go, where you can walk in by scanning your Amazon app on the phone. Pick up your grocery, bag them, and walk out. Your Amazon account will automatically get charged with a full breakdown of each item, removing the time that you have to wait in line, and that creates a bottleneck for the customer. Right? It's keeping the customer at the heart of the experience. This is how you start the digital process.

Lastly, now that you know why, where, and how, I want to talk about what types of companies are actually successful at implementing digital transformation.

Now, earlier, I told you that accompany Villani Consulting focuses on creating a culture of what I call G E.

Now, we do this by implementing five key habits in every organization.

There's no reason why we call them habits, though, and that's because a habit is an ongoing campaign and not a one-time event.

The companies that we've seen successful at digital transformations are the ones who have successfully implemented at least three of these five habits within their organization.

The first habit that they've implemented as a habit to simplify their organization, They've defined their vision and their core values, and are constantly working on implementing them on a daily basis, and improving them year after year. That is why it a habit.

Your digital transformation needs to be aligned with your vision for your company. Now, we continuously see companies who've defined their vision years ago, and never really bothered to track it, or to revisit it. Now, when they work on transforming their company, it lines up with a vision because the vision has been outdated for so long.

3-Jun-30-2020-08-31-08-88-AMI spend a bulk of my time with these leadership teams within these companies to first set their foundation and change their beliefs. So, simplify your organization first, and align your strategy with your vision.

Next, they've implemented the habit to select the right people to bring on board.

Like I mentioned earlier, digital transformation is messy. It is hard.

In order for you to successfully implement this, you'll need to have the right people on board who believe in the company, Vision, and the core values. You'll need a total by.

Now, we all know the same. Culture eats strategy for breakfast. The people in your organization want to be inspired. They're looking for organizations that can adapt to the changing environment, but still keep their people at the heart of their decision making.

They want to create value for the organization.

Define and implement change for the better. They don't want to be managed anymore. They want to be led. They want to be led by removing roadblocks and low value activities. And by giving them the ability to provide strategic input into processes, technology, and business overall, by allowing them to take chances and the ability to fail as long as it aligns with the company strategy, that's what they want. They want to be empowered to make these decisions, to provide value. You can have the best strategy planned, But if you have a weak culture, your initiative is doomed to fail to evaluate your people and make sure your company is ready for the undertaking.

Lastly, the habit to solve, Needless to say that, during the transformative stage, you will have a period where legacy will be overlapped by new technology.

Change is never easy and when it comes to issues, your company's probably already dealing with its own sets of issues. When you go to a digital transformation state, that will bring new issues on board. If you don't have the habit to solve issues, getting to the root cause and actually solving them for good, this digital transformation phase will be very difficult for you.

So the bare minimum is that you have to have mastered at least these three habits.

The last two are system ization and see or value the right KPIs. These can be implemented as part of the transformation phase, but there are a must for your organization to actually succeed.

The companies that are hostile to technology and I mean the ones that believe that they already have the best systems and don't put any effort into evaluating the market are going to be left behind Reputation in the marketplace will only take you so far.

Alright, so with that, I want to thank you all for allowing me the time and the space to talk about a subject that is very near and dear to my heart. Please connect with me on LinkedIn, if you have any other questions or comments.

Thank you again, so much for giving me the space. Thank you, Brian.

Thank you, ..., very illuminating presentation. If you have any further questions, please do send it through, as we go through the initial questions that we have for sizing to also, right now. So, Feisal, just to start off, if I can ask one of the reasons, why, do you need to have a clear and defined vision before you take on the digital transformation process? Especially?

where, as you point out, that a lot of the enterprise level organizations had a vision, which is barely shifted over 15, 20 years. In some instances, Lady Longo, why is it so important to have a clear and defined visage vision that is updated on a regular basis?

Know, Brian. That's actually probably one of the questions that I get asked a lot, and typically what I, what I tell people is, any business, if I could turn right and think of starting a journey, you don't know where you want to go, you just get in your car, just start.

When you do that, you're going to be wasting time. Gas, money, resources.

You're going to make people impatient, because you don't have a clear, defined vision.

I'll give you an example. Eliminate, right? I talk about them a lot, because they were very clear on their vision. They knew that they wanted to take the conversation off the phones and onto their application. They wanted to get the human element out of it, and they wanted to make instant decision making.

The vision was very clear, and that's how they focused on their digital transformation, and that's the journey that they went to compare that to a company like Burberry, like somebody who sells these high-end boutique items. That doesn't want to take the conversation offline. Like they want to keep in touch with their people. Their entire goal is to get them on the phone so their consultants could talk to them about the fabric, the feel of it, the event that they're going to. Why is it that they should be spending 15,000 or whatever that price tag is on this particular item?

So their digital transformation will be so much different than what lemonade was trying to do.

It's really important to define your vision So that way you can work backwards and you're not. You're not what we call these Fashionista in the industry. You're just spending money on every technology out there.

You are purposed spending money on the right technology that's going to help you advance your vision.

Screenshot (4)one thing I tell my companies all the time is: technology should support your business processes, not the other way around. Don't change your processes to fit a technology. That's the wrong way to go.

Thank you for the fuzzy. That's provided some insight to the question.

Another question this up here is if I have a home-grown or legacy system, what point does it become no longer efficient to continue to maintain that system?

This is a easy one for me. I always use the word integrate.

When you have gone to this place in the market where a new technology comes out and you define a project for your team to integrate, your team finally ends up integrating with that new technology, whether that's Google Pixels or any kind of marketing campaign out there and next thing, you know, there's another new technology. And, now, you're trying to integrate that, that time, shorten it up every time there's a new project shorten and shorten your technology integration is exactly the same.

When you finally get to that breaking point, where your team can keep up with integrating with new technologies, it's time to let it go. Because if you can't keep up with the right now, the new technologies that are going to be coming out, they're going to be much, much harder, And integration is just the first face.

Learning to use that technology and make it effective actually takes an exponential curve, is not linear. So at a certain point in time, you're going to have to pay the price. But when to actually learn it and implement it, that curve will be still exponential. That'll help your business inquiries.

Fantastic. And, finally, if I may.

When you're looking at everyone in the leadership team, who's, boy, this is most important for digital transformation to be successful, or is it a combination of individual?

Ideally, you want the entire company onboard, obviously, But if you don't have the head of the snake, if you don't have the CEO, the partner, the owner, the visionary, whoever is at the very top, making making the decisions, so you don't have their buy in him or her. It's going to be extremely difficult. I'll give you an example. I was in a company where The CFO absolutely wanted to bring on this digital transformation, but the CEO wasn't bought in on it.

And we spent at least about a year and a half, two years, just trying to prove, from the numbers perspective that this is worth it, And eventually, at the end of the day, even though the numbers prove that, we all know that decision making is an emotional process, and as hard just wasn't in it. So, you need to get one first day, it has to be the top person who can then trickle down the team to buy it.

Now, one caveat, though, you never want a forest buying. So just because the CEO has bought into it, that doesn't mean that he or she forces his team to buy in you. You really, truly do want a true buy in, because this process is long, and in the middle, you're gonna run into issues.

And when you do run into issues, you want people supporting you not sitting back and saying, see, I told you this wasn't going to work because that that is an endless loop that will feed itself.

Fantastic. Thank you for that. I'd like spikes very exciting presentation. I'm sure that anybody that wants to be in touch with you, after the events, and as far as the wind, if you were going to connect, please feel free to link to with that flies, and switch, Sorry, much for your presentation. Your time. And the rest of the rest.

Perfect, thank you, YouTube, Brian.

They can't buy Ladies and gentlemen, with the final presentation that ends IBM license for 2020. The next event in the series is our Enterprise Architecture Live Event, which is taking place in July from the 42, the 60. You would have seen a note about that in the question in the chat box. So if there is anything that is exciting about that for you, please join us. But, there is 14 other events in the series, So I'm sure there's something there which, which you or your colleagues appetite. So, once again, thank you for joining us, Have a fantastic rest of the day, and my, you keep safe and well taken.


About the Author

more (3)Faisal Velani,

Faisal Velani has been teaching business strategy and coaching for over a decade now. He has worked for and with startups to Fortune 500 companies, helping them transform their culture, identify level 5 leaders, create operational efficiencies and scale up to create a culture of Growth, Innovation & Excellence or G.I.E.  

Faisal has held leadership positions in large, global companies to mid-size corporations all the way to creating and successfully selling his own startups. Throughout his career, Faisal has developed and refined the G.I.E. program by implementing the same 5 habits leading to accelerated innovation, strategy execution, and value creation.


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