Leading digital transformation in Brazil : opportunities and challenges

Leading digital transformation in Brazil : opportunities and challenges

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  LEADING DIGITAL TRANSFORMATIONIN BRAZIL OPPORTUNITIES AND CHALLENGES Fred DONIER – Founder & Ceo Crescendo Round Table with ESCP Europe EMBA Students09/20/2017
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  2 Leading Digital Transformation– 10/16/2017 – ESCP Europe Agenda 1. Introduction 2. Brazil´s Digital Economy Landscape 3. Digital Transformation in the real world: Opportunities and Challenges 4. Conclusions and Perspectives
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  3 Leading Digital Transformation– 10/16/2017 – ESCP Europe Crescendo, a multicultural consultancy born in Brazil, with a strong international experience 3  Crescendo is a top management consultancy born in Brazil in 1999 with a relevant international experience in more than 15 countries (Latin America, Europe, USA, Fast growth countries).  We are dedicated to highly customized collaborations with our clients in the fields of strategy and transformation management.  Our team is involved in the academic world and develop specific methodologies, approaches, expertises, benchmarks, resources etc.
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  4 Leading Digital Transformation– 10/16/2017 – ESCP Europe Prestigious and diversified experiences in Brazil with large, medium groups and start-ups Engineering, Infrastructure, Oil & Gas Process and Manufacturing Industries ServicesHealthcare Retail / Omni-commerce Education, Social and Non Profit Sector
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  5 Leading Digital Transformation– 10/16/2017 – ESCP Europe Agenda 1. Introduction 2. Brazil´s Digital Economy Landscape 3. Digital Transformation in the real world: Opportunities and Challenges 4. Conclusions and Perspectives
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  6 Leading Digital Transformation– 10/16/2017 – ESCP Europe Contrast between old and new Brazil economy is amazing despite the (slow) recovery from the worst crisis of the Brazilian Republic history 2014 2015 2009 2013 2016 “Old Economy” “New Economy” Source: Hootsuite / 2017 digital yearbook Source: The Economist 2017
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  7 Leading Digital Transformation– 10/16/2017 – ESCP Europe Interpersonal communication at the center of Brazilian digital economy: WhatsApp in Brazil is for smartphones as Rede Globo is for TV ◻ The highest penetration for an app in Brazil : 98.1% of Brazilian Internet users with smartphones have the app installed on their device; ◻ 97.5% of those who own the app say they use it every day or almost every day to send or read messages ◻ 76.3% of monthly active users would like to communicate with brands within the app; ◻ 70.1% would like to be able to ask questions and receive technical support regarding products and services in conversations; ◻ 69.6% do not see any problem in doing negotiations in WhatsApp Source: survey Panorama Mobile Time/Opinion Box
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  8 Leading Digital Transformation– 10/16/2017 – ESCP Europe A dense Brazilian universe of ~5500 start-ups, of which 200 funded by VCs: 57% of the funds raised in Latin America between 2011 and 2015 have been invested in Brazil 8 Start-ups in Brazil funded by VCs 2011-15 Weight of VC in Brazil vs LatAm 2011-15 (value US$ bi_ Source: ABVCAP
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  9 Leading Digital Transformation– 10/16/2017 – ESCP Europe Startups funded by VCs in 2017 : Fintech leading the path 9
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  10 Leading Digital Transformation– 10/16/2017 – ESCP Europe Start-ups in Brazil are part of a vibrant and diverse eco-system made up of networks, accelerators, global & local VC's, educators, ... 10 "Google Campus size shows the strength of Brazil's startups ecosystem“ Operation in SP is the largest in the world in number of members (89.000 after 15 months). André Barrence, project director, talks about achievements, challenges and plans for the future Source: Magazine Pequenas empresas Grandes Negócios 02.10.2017
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  11 Leading Digital Transformation– 10/16/2017 – ESCP Europe The entrepreneurial culture is the driving force of the Brazilian digital economy, while the challenges are the business environment, the skills and knowledge base 11 Source: EY G20 - Digital Entrepreneurship - Barometer – 2016  Entrepreneurial culture: ‒ #11 / 20  Access to finance ‒ # 15 / 20  Digital business environment ‒ # 19 / 20  Digital skills ‒ # 20 / 20  Digital knowledge and ICT base ‒ # 19 / 20
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  12 Leading Digital Transformation– 10/16/2017 – ESCP Europe Agenda 1. Introduction 2. Brazil´s Digital Economy Landscape 3. Digital Transformation in the real world: Opportunities and Challenges 4. Conclusions and Perspectives “Strategy, not technology, drives digital transformation” — MIT SLOAN school management review
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  13 Leading Digital Transformation– 10/16/2017 – ESCP Europe Crescendo framework: Transformation 3.0 covers an augmented transformation scope and ‘start-up era’ boosting methods 13 Agile / Empathy / Digital thinking methodologies Traditional management methodologies Tactical / Specific focus Strategic / Broad Scope Change Management (1.0) Classical Transformation Management (2.0) Transformation 3.0 Static; From A to B Limited; Mono-channel Auxiliary soft skill Project Management focus Dynamic, Continuous Transversality Multi-year Multi-channel Hard + soft skills Program Management focus Phygital (Physical + digital) Cross value chain Accelerated / Start-up beat Design Thinking / Co-creation / prototyping Leadership 3.0 Augmented Transformation focus Transformation Office
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  14 Leading Digital Transformation– 10/16/2017 – ESCP Europe Digital is one the 5 ‘transformation pillars’ that sustain Transformation 3.0 1. Estratégia & Business Development Organization Organizational architecture Operational governance Post-merger integration Participative transformation of organizations Restructuring Process & Performance Strategic steering Purchasing Performance Optimization Business process design and effectiveness Crisis management / Turnaround support Corporate & Business strategy process design & facilitation Competitive intelligence Go-To-Market strategy New businesses / strategic alliances Internationalization strategy Strategy Culture Shared Vision Cultural Transformation Intercultural alignment Collective intelligence processes Innovation culture “Tropicalization” processes Collective efficiency Leadership development Digital Digital strategy and venturing Digital Innovation Sprints From startup to scale-up Startups-Corporations partnerships Makers Transformation
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  15 Leading Digital Transformation– 10/16/2017 – ESCP Europe Opportunity 1: human centered approaches are well adapted to Brazilian culture Some human centered methodologies: ◻ Design Thinking ◻ Hackathons / Innovation Sprints ◻ Lean Startup ◻ Makers Transformation ◻ UX and UI design
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  16 Leading Digital Transformation– 10/16/2017 – ESCP Europe Opportunity/Challenge: When well combined and orchestrated within a shared digital transformation project, Brazilian and European cultures tend to form a very fruitful blend • Optimism / Energy • Creativity • Passion for Progress + • Rigor • Method/organization • Planning 16 1. VISION 2. CULTURE 3. EFFICIENCY 4. PLEASURE INTERCULTURAL ALIGNMENT ‘VCEP’
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  17 Leading Digital Transformation– 10/16/2017 – ESCP Europe Some Learnings from Digital Transformation Projects in Brazil ◻ The combination of various approaches to digital transformation often yields better results ‒ Hard + soft ‒ Top-down + Bottom-up ◻ Digital transformation has to be rigorously managed with a robust governance ‒ Direct sponsorship of the CEO, because the transformation is a Company-wide project, not a Department project; Steering Committee = Board ‒ An internal 'Transformation Office' led by a sponsor (“CTO/CDO”) to provide a cross-cutting vision and ensure the adequate pace of transformation ‒ Foster digital community / Leverage Millenials team mixed with senior executives ◻ Digital transformation only makes sense if done through people ‒ 'The fear of the digital' is often one of the main cause of resistance ‒ Importance of a genuine and neutral listening process of employees ‒ Importance of developing Leaders 3.0 to embrace digital transformation
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  18 Leading Digital Transformation– 10/16/2017 – ESCP Europe Agenda 1. Introduction 2. Brazil´s Digital Economy Landscape 3. Digital Transformation in the real world: Opportunities and Challenges 4. Conclusions and Perspectives
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  19 Leading Digital Transformation– 10/16/2017 – ESCP Europe Overall Conclusion: digital transformation is one of the two key societal transformations for a sustainable future in Brazil ◻ Ethical, Institutional and Political Transformation => Lava Jato Operation and State Institutional Reforms ⬜ To modify in depth the relation between the State and the major private groups: to go beyond the so-called model of “croony capitalism" / “state capitalism" (see Sergio Lazarini – strategy professor @Insper) ⬜ Reforms of the Political Parties funding and the Structure of the Political System ◻ Entrepreneurial and economic transformation => digital transformation & Startups entrepreneurship ⬜ Treatment of real pains of the consumer and/or Brazilian citizen by effective, transparent and measurable solutions ⬜ To increase the level of productivity and competitiveness of the Brazilian economy, which has stagnated since the 1980s ⬜ Increased international opening to technologies and new business models ORDEM PROGRESSO
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  [email protected] Tel: +55 113521 7322 / +55 11 98346 3060 leading Digital Transformation in Brazil10/16/2017