Digital Transformation, Analytics, and the Modern C-Suite

IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Digital Transformation, Analytics, and the Modern C-Suite
- Intelligent Resiliency in Changing Times
John Santaferraro
Research Director
EMA
Sponsored by

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Slide 2
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Featured Speaker
Slide 3 © 2020 Enterprise Management Associates, Inc.
John Santaferraro, Research Director, EMA
John is the research director for analytics, business intelligence, and data
management at EMA. He has 23 years of experience in data and
analytics, from startups to executive positions at Fortune 50 companies.
His deep understanding of the industry comes from years of leadership in
implementation, product and marketing organizations, along with multiple
big data imagineering efforts for finance, communications, retail,
manufacturing, healthcare, events, oil and gas, and utilities.
jsantaferraro@emausa.com
@santaferraro

Research Sponsor
4 © 2020 Enterprise Management Associates, Inc.
Concentric is prescriptive analytics for strategic decisions. Our what-if software
enables enterprise companies to manage uncertainty and make informed
decisions by uniting business users and analytics teams through a single
collaborative process. Self-service analytics that delivers faster, better answers
to your questions about tomorrow.

Agenda
• The Post-Pandemic Digital Shift
• The State of Digital Transformation
• The State of Analytics in Digital Transformation
• The Modern C-Suite
• Ecosystem Thinking and Unified Analytics

• The COVID-19 lockdowns put
every digital strategy to the test
• The new digital mandate is
superiority, not transformation
The Post-Pandemic Digital Shift

INDUSTRY ANALYSIS & CONSULTING7 © 2020 Enterprise Management Associates, Inc.
A Shift in Digital Transformation Perception
Which stage of maturity best describes your organization's current digital transformation journey?
0%
2%
5%
5%
17%
52%
19%
5%
5%
16%
8%
21%
35%
9%
0% 10% 20% 30% 40% 50% 60%
Infancy - just beginning with digital transformation
Childhood - a few digital programs are in place, but
they are isolated and immature
Adolescence - several digital programs are in place
and we are improving
Teenage - several digital programs are showing initial
return on investment, but it's limited
Young adult - some of the enterprise is now
functioning digitally, but integration is needed
Adult - most of the enterprise is now functioning
digitally and is integrated
Fully mature - the entire enterprise is now functioning
digitally and is integrated and optimized
Before COVID-19 Lockdown (3/30/20)
After COVID-19 Lockdown (4/1/20)

Approximately how far along are you in the completion of your digital transformation initiative?
2%
5%
5%
0%
5%
5%
26%
26%
17%
10%
0%
1%
12%
10%
7%
17%
21%
19%
7%
6%
0% 5% 10% 15% 20% 25% 30%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Approximately what percentage of your digital transformation projects are successful?
0%
0%
2%
2%
7%
10%
14%
19%
33%
12%
1%
2%
2%
8%
9%
14%
17%
19%
19%
8%
0% 5% 10% 15% 20% 25% 30% 35%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

A Shift in Analytics Perception
Approximately what percentage of your analytics projects are successful?
0%
0%
2%
2%
2%
10%
19%
21%
33%
10%
1%
2%
0%
6%
14%
16%
19%
21%
13%
8%
0% 5% 10% 15% 20% 25% 30% 35%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

A Shift in Digital Technology Priorities
Which of the following are part of your enterprise-wide digital transformation efforts?
3 Areas That Remained the Same
4 Areas That Changed
79%
71%
69%
77%
71%
65%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Cloud
Advanced analytics
Data
76%
69%
79%
74%
59%
58%
56%
50%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Business intelligence
Artificial intelligence
Big data
SaaS
Before COVID-19 Lockdown (3/30/20) After COVID-19 Lockdown (4/1/20)

• Digital business models must
make the move from predictive to
prescriptive analytics.

A Shift in Digital Drivers
What are the most important drivers for digital transformation in your organization?
62%
52%
26%
50%
36%
21%
51%
48%
42%
40%
36%
24%
0% 10% 20% 30% 40% 50% 60% 70%
Improved operational efficiency
Improved customer experience
Potential new business models
Improved employee experience
Competitive pressure
Avoiding market disruption

• Digital business models built on
prescriptive analytics are more
important than ever.

• Digital transformation is primarily
focused on information technology
• Speed, scale, and smarts are
hindering the digital journey
The State of Digital Transformation

Digital Transformation Straddles Tech Business
Slide 16 © 2020 Enterprise Management Associates, Inc.
Who in your organization is responsible for enterprise-wide digital transformation?
36%
34%
12%
10%
5%
3%
CTO/CIO
CEO
CMO
Chief Digital Officer
CFO
CAO/CDO

Digital Focused on IT First
Which areas of your business are furthest along in digital transformation?
78%
35%
34%
33%
30%
29%
27%
22%
13%
Information technology, IT
C-suite
Operations
Finance
Human resources
Marketing
Supply chain
Customer service
Sales

Speed, Scale, and Smarts Hinder Digital
What are your greatest challenges in moving digital transformation forward?
42%
31%
30%
30%
29%
27%
22%
22%
Speed to production and usability
Barriers to scale
Lack of data literacy
Lack of talent and resources
Lack of data infrastructure
Difficulty measuring ROI
Lack of vision
Collaboration between departments

• Analytics are vital to both digital
and traditional business models
• Leading organizations manage
analytics as a strategic asset
The State of Analytics in Digital Transformation

Analytics are Vital to Digital Transformation
How important are analytics to your enterprise-wide digital transformation efforts?
41%
22%
23%
11%
3%
0%
0%
Vital
Strategic
Very important
Important
Tactical
Not very important
Not important at all

Analytics are Managed as Strategic Assets
Which of the following best describes the strategic role of analytics in your overall organization?
34%
48%
13%
5%
1%
Our entire organization manages data and
analytics as strategic assets
Most of our divisions manage data and
Some of our divisions manage data and
One of our divisions manages data and
We don't manage data and analytics as
strategic assets

Analytic Projects are Highly Successful
Approximately what percentage of your analytics projects are successful?
1%
2%
1%
5%
10%
14%
19%
21%
20%
9%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

• Modern executives are
analytic-savvy.
• Modern CEOs and
CMOs are focused on
driving value with
analytics.
The Modern C-Suite

Digital Transformation and Analytics Priority
How important are analytics and digital transformation to your operation as a senior executive team?
38%
24%
24%
9%
5%
0%
0%
Vital
Strategic
Very
important
Important
Tactical
Not very
important
Not
important…

The Modern C-Suite is Analytic-Savvy
On average, how analytics-savvy or data literate is your senior executive team?
4%
16%
53%
27%
Beginners
Intermediates
Advanced
Experts

Digital Transformation and Analytics Priority
How important is analytics expertise when it comes to hiring people into your senior executive team?
35%
29%
27%
7%
2%
0%
0%
Vital
Strategic
Very important
Important
Tactical
Not very important
Not important at all

The Modern CEO

What Matters to the CEO
Which analytic applications are most important to you in your role as CEO?
56%
41%
35%
35%
29%
29%
26%
Financial analytics
Sales forecasting
Marketing analytics
Product or technology analytics
HR analytics
Predictive analytics
General sales analytics

A Shift in CEO Analytics Priorities
56%
44%
19%
38%
44%
31%
38%
0%
56%
39%
33%
33%
28%
28%
22%
0%
0% 10% 20% 30% 40% 50% 60%
Financial analytics
Sales forecasting
Marketing analytics
HR analytics
Other
Before COVID-19 Lockdown (3/30/20) After COVID-19 Lockdown (4/1/20)

What Matters to the CEO – SMB v. Enterprise
26%
53%
32%
37%
26%
42%
42%
60%
60%
40%
33%
27%
13%
13%
Sales forecasting
Financial analytics
Marketing analytics
HR analytics
SMB Enterprise

The Modern CMO

What Matters to the CMO
Which analytic applications are most important to you in your role as CMO?
47%
40%
37%
33%
30%
28%
26%
26%
23%
19%
12%
Marketing ROI
Marketing attribution
Conversion rate
Customer retention
Customer acquisition
Customer profitability
Customer profiling
Pricing optimization
Campaign effectiveness/optimization
Marketing mix optimization
Offer optimization

CMO Observations
• The pervasiveness of CMO analytics put them on par with
the CIO or CDO.
• CMO digital opportunities abound with unified analytics
versus today’s siloed analytics.
• ROI measurement is important to the CMO because the
CMO is measured by ROI.
• The CMO owns the digital customer experience.

• The modern C-suite
operates with digital
and analytic-savvy.
• The modern C-suite
continually improves
their analytic-savvy.
Best Practices of the Modern C-Suite

Prioritize Digital Transformation Initiatives by Value
Which best practices are currently part of your senior executive team interactions?
56%
47%
44%
42%
41%
38%
33%
30%
We require data to support all or most major
decisions
We measure ROI on our digital transformation
projects
We align digital transformation with business
strategy
We measure ROI on our analytics projects
Our digital transformation initiatives are required to
positively impact customer experience in some way
We empower a digital workforce
We consistently track the digital maturity of our
leaders' organizations
We require certification of data utilized for strategic
decisions

Build Multifaceted Data Literacy Programs
How does your organization promote data literacy, an understanding of
how to extract value from data, and analytic expertise in your senior executive team?
50%
48%
48%
47%
45%
34%
32%
We pair our leaders with data and analytics
experts
We hire leaders who are data literate and
analytics-savvy
We require our leaders to support their
initiatives with data and analytics
We provide specialized data and analytics
training for leaders
We commonly discuss data and analytics in
our board and leadership meetings
We created a CDO or CAO position to promote
data and analytics for leaders
We compensate leaders based on their data
literacy and analytics expertise

Data Literacy Programs for the Modern C-Suite
Organizational Structure
• Pair every senior executive with an analytics executive.
• Require senior executives to back decisions with analytics.

Data Literacy Programs for the Modern C-Suite
Hiring and Training
• Make analytics expertise mandatory for all executives
• Make analytics training compulsory for all executives

Overcome Challenges with Ecosystem Thinking
Which organizational challenges have analytics and digital transformation
brought to your senior executive team?
36%
35%
30%
30%
29%
29%
27%
23%
It takes too long to get information
Departmental analytics are very
disconnected from one another
Not everyone understands the importance of
digital transformation
Not everyone understands the importance of
analytics
There is too much data to process
There is resistance to change
Technology doesn't do what is promised by
vendors
Reporting numbers are inconsistent

Ecosystem Thinking
Offer

Ecosystem Thinking
Offer
Timing
Pricing

Ecosystem Thinking
Offer
Timing
Pricing
Supply
Weather
Market

Ecosystem Thinking
Offer
Timing
Pricing
Supply
Weather
Market
Manufacturing
Parts
Materials

Ecosystem Thinking
Offer
Timing
Pricing
Supply
Weather
Market
Manufacturing
Parts
Materials
Customer
Demographics
Psycho-
graphics
History

Ecosystem Thinking
Offer
Timing
Pricing
Supply
Weather
Market
Manufacturing
Parts
Materials
Customer
Demographics
Psycho-
graphics
History
Purchases
Browsing
Channel

Ecosystem Thinking
Offer
Timing
Pricing
Supply
Weather
Market
Manufacturing
Parts
Materials
Customer
Demographics
Psycho-
graphics
History
Purchases
Browsing
Channel
Human
Resources
Inventory
Facility

Unified Analytics and Simulation
Offer
Timing
Pricing
Supply
Weather
Market
Manufacturing
Parts
Materials
Customer
Demographics
Psycho-
graphics
History
Purchases
Browsing
Channel
Human
Resources
Inventory
Facility
All analytics connected, working
together in sliding scales.

Three Characteristics of Unified Analytics
• Multi-dimensional what-if analysis
• Connected optimization models
• Complex neural processing

Question and Answer: Log Questions in the Q&A panel
© 2020 Enterprise Management Associates, Inc.
For more information on Concentric…
• Visit www.concentricmarket.com
• Email info@concentricmarket.com
For more information on EMA. . .
• Visit www.enterprisemanagement.com
• Contact John at jsantaferraro@emausa.com
Sponsored by

Digital Transformation, Analytics, and the Modern C-Suite

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