Digital Transformation Class 17 PDF

9/30/24 DIGITAL TRANSFORMATION PART 1 Dr Zubir Azhar CamEd 1 Learning Objectives u Understand Digitization, Digitalization, and Digital Transformation u Discuss digital transformation’s implications –...

9/30/24 DIGITAL TRANSFORMATION PART 1 Dr Zubir Azhar CamEd 1 Learning Objectives u Understand Digitization, Digitalization, and Digital Transformation u Discuss digital transformation’s implications – People, Process, Technology, Culture u Risk of ignoring digital transformation in accounting & the latest trends 2 1  9/30/24 Digitization u Creating a digital (bits and bytes) version of analog/physical things – paper documents, images, photographs, sounds, etc. u It’s simply converting something non-digital (like signals, health records, location data, identity cards, inventory records, etc.) into a digital format. u Which then can be used by a computing system for recording and reporting purposes. If I scan a document, I am DIGITIZING It. 3 Digitalization u Digitalization can be If I automate defined as a new way of entire factory’s doing work / business operations, I am u By leveraging technology DIGITALIZING It. to create customer Digitalization requires experience Digitization of information u To unlock new value. and more (and at the very center of it is data) 4 2  9/30/24 Definition Digitalization is the process of employing digital technology & data to transform business operations & create value 5 Digital Transformation u Digitization is the move from analog to digital u Digitalization is using digital data to simplify how you work. u Digital transformation is about adding value to every customer interaction (Customer at heart of everything) – Digitalize and Digitize with customer as the driver 6 3  9/30/24 Digital Transformation 7 Definition Digital transformation is organizational change through the use of Digital Technologies & Business Models to add value to every customer interaction so as to improve Performance 8 4  9/30/24 9 Trends & Disruption in Accounting What can be disruptive in the context of AIS? § Mobile/digital/cloud § Data analytics § Technological transformation § Less reliance on staff (human) 10 5  9/30/24 Digital Transformation in API Economy No Cars No Inventory No Real Estate 6 11 Trends – Technologies Driving Digital Technologies Driving Digital u Big Data u Mobility u Cloud Computing u Internet of Things (IoT) u Cognitive Computing u Blockchain (Artificial Intelligence) u Robotic Process Automation 12 6  9/30/24 Data Driven Decisions: Real Time DATA 13 Digital for Business Processes Medium High Asset Management Commercial Optimization Asset Strategy & CD Commercial Development ASP High Potential Items Performance Define Maintenance Digital Transformation Potential P&S Planning and Scheduling EUM MST MS Strategy Commercial Performance P&S TKM SCM Sourcing Strategy & CPM SCM Contractor Management Management PM High CD PS MPS Manage Maintenance SCM Develop Equipment Energy & Utility ME DES Strategies EUM SCS MWP Management PA W&L TRM EO CSM Maintenance Planning & PSM EPD MPS Scheduling Operations ASP LIP Sales and Operations RtP EM Maintenance Execution SOP ME Planning R&D SP MS PRM PE RP Manage Shutdowns & SCM Supply Chain Optimization S&R MST Turnarounds Which M SOP CPMPSM DES Monitor Work and Asset processes are WC Work Controls WC PPM Medium MWP Performance CM most relevant OE Operations Execution OE Capital Projects LQA BO OM as primary PRM Portfolio & Risk Management BO Blending Operations candidates for Project Management & digital? OM Oil Movement Business Value PM Assurance Production Performance Technology & Engineering EPD Engineering & Project Data PPM Management Non-Hydrocarbon Supply Chain R&D Research & Development PS Project Support EHS & Operations Support HSSE Strategy and Engineering S&R SCS Supply Chain Strategy EM Reporting Management Hydrocarbon SC Trading & Risk M HSSE Management RP Requirements Planning PE Process Engineering TRM Management Process Safety W&L Warehousing & Logistics PA Process Automation EO Envelope Optimization PSM Management Technical Knowledge Crude Supply CM Compliance Management RtP Requisition to Pay TKM CSM Management Management Laboratory & QA SP Sourcing and Procurement Refined Product Supply LQA LIP Manage Licensing & IP PSM Management Management 14 7  9/30/24 3 Fundamental Questions WHAT do we need to transform? WHY HOW do we need to transform? can we transform? 15 Digital Transformation Barriers Revenue Data Issues Training / Skills Lack of budget for Digital Resources Cybersecurity remains as Lack of knowledge with Transformation a risk technology Unwillingness to invest to new technology 16 8  9/30/24 Digital Transformation Implications 17 Customer Management Understanding Digital Transformation Listen to customers requires good leadership before changing and expertise for anything and focus on successful how to improve value for implementation. them. Digitally Modified Customer Touch Business Points Core Use of digital channels to Create a new Customer Journey and engage in Elements transform a new growth in business new ways. Growth Digitization Process Review the Improve efficiency of results and derive process for employees to actionable refocus on more insights. strategic tasks. 18 9  9/30/24 Analyze Current Market 30% 90% 60% 45% New Market Customer Demands Stakeholders Customer Engagement Investors who are directly Potential leads who are Increase in demand due to New process will be done impacted by the new interested to innovation. constant changes. without human interaction. business processes. 19 Business Success Criteria 1. 2. 3. 4. 5. 6. Be Digital Invest in People Be Agile Leverage on Data Technology Improved Governance Continue to build digital In addition to recruitment Embrace the digitisation Ongoing investment in Continue to adopt new and Ensure IT investments are services that are channels, collaboration of information Data Analytics innovative technologies that aligned with and delivered customer centric continues to take place with capabilities to enhance enhance customer in accordance with the other organizations to Further explore corporate decision experience organizational strategic Focus on a Digital continue to build technologies to enhance making objectives by defining Transformation agenda technology capability Enable Technical agility organizational structures, technical agility and enable organization to be Leverage data to assist through software processes, leadership, roles Further exploit Review roles and skill sets in the delivery of the modernisation of our and responsibilities more efficient & dynamic opportunities to on an ongoing basis to targets set out in various existing strategic implement digital ensure the organization has organizational activities Enable access to platforms. Enhance governance solutions across the wide- the necessary capabilities information from structures across the ranging scope of business and resources to meet Ongoing compliance to anywhere Extend adoption of Green IT organization activities future challenges the legislations technology to reduce the Advance the impact on the environment Monitor adherence to embracement of agile Information Security development to ensure through regulations and business agility & adapt standards (e.g., ISO 27001 to changing Information Security requirements Standard) Building Business Architecture by breaking down organizational silos 20 10  9/30/24 Recap u Digitization u Digitalization u Digital Transformation u Trends 21 Class Activity 1) Discuss the impact of digital transformation on accounting. 2) Discuss the biggest challenges of digital transformation for accountants. 22 11  9/30/24 THANK YOU! Dr Zubir Azhar 23 12