You are on page 1of 27

Transformation at Microsoft

DIGITAL TRANSFORMATION IN THE FOURTH INDUSTRIAL AGE 34

TRANSFORMATION AT MICROSOFT 56
REIMAGINING IT LEADERSHIP TO ENABLE DIGITAL TRANSFORMATION
THE ROADMAP TO DIGITAL TRANSFORMATION

ENGAGING CUSTOMERS 711


RETHINKING CUSTOMER ENGAGEMENT
BUILDING LOVE FOR OUR PRODUCTS
BUILDING CUSTOMER RELATIONSHIPS WITH 360-DEGREE LIFECYCLE INSIGHTS
LOWES: EXPERIENCE HOME IMPROVEMENT IN A WHOLE NEW WAY
ROADMAP FOR ENGAGING CUSTOMERS

EMPOWERING EMPLOYEES 12-16


RETHINKING EMPLOYEE EMPOWERMENT
ENABLING THE EVERYWHERE OFFICE : MICROSOFT JAPAN
DELIVERING AN ENGAGING HR EXPERIENCE
KENNAMETAL: REACHING AND EMPOWERING EVERYONE
ROADMAP FOR EMPOWERING EMPLOYEES

OPTIMIZING OPERATIONS 1722


RETHINKING OPERATION OPTIMIZATION
IMPROVING UTILIZATION OF BUILDINGS WITH IOT
USING PREDICTIVE ANALYTICS IN THE SALES PROCESSES
DARTMOUTH-HITCHCOCK: REVOLUTIONIZING HEALTHCARE
ROADMAP FOR OPTIMIZING OPERATIONS

TRANSFORMING PRODUCTS 2326


RETHINKING PRODUCT TRANSFORMATION
USING DATA TO ENTER NEW MARKETS
PRIORITIZING AGILITY
TEMENOS: BRINGING BANKING TO ANYWHERE IN THE WORLD
ROADMAP FOR TRANSFORMING PRODUCTS

WHY MICROSOFT 27
THE FOURTH INDUSTRIAL AGE

Leaders in digital
transformation generate an
average of $100 million
more in additional operating
income each year1

Klaus Schwab, Founder and Executive Chairman


of the World Economic Forum
January 2016

The first revolution helped humans mechanize Capitalizing on this phenomenon is the key to
production with steam power, followed by the second innovation and growth. From the rise of
revolution which was enabled by electricity and brought connected devices and other things within the
on the era of mass production. The third revolution used Internet of Things (IoT), the growing mounds of
electronics and information technology. data, to augmented reality and the next frontiers,
the challenge for business leaders is to harness
The speed of current breakthroughs and the exponential the disruptive force of technology to increase
pace of disruptive innovation now bring about a fourth efficiency and shape their destiny.
industrial revolutioncharacterized by unprecedented
processing power, storage, access to knowledge and the Naturally, this comes while navigating the
blurring of lines between physical, digital, and biological expectations of a changing workforce, addressing
space. evolving cybersecurity threats, and managing a
host of other challenges.
It is a unique point in time, and it will fundamentally
alter the way we live, work and relate to each other. In response, companies are going through a
digital transformation that is creating huge
opportunities, but is also increasing the pressure.
Although many businesses are sold on the why
of digital transformation, they are stuck on the
50% of the workforce how. How do you transform for success in the
future while running your business today?
will be digital natives,
As we partner with and enable thousands of
connected 24/7 and organizations who are navigating their
work the way they transformation journeys, we share some of the
want to by 20202 insights and examples of our own journey in this
report, and provide answers on how to find your
roadmap for a digital-first business.

1 Keystone Strategy Interviews, Oct 2015 Mar 2016


2 Mind the gaps: The 2015 Deloitte Millennial Survey, Deloitte Touche Tohmatsu , 2015
MIND-SET FOR CHANGE

To stay competitive, organizations should


pivot toward rapid incrementalism
incrementally altering existing structures
to make the most of what is already in place.
TRANSFORMATION AT MICROSOFT


TRANSFORMATION AT MICROSOFT
THE ROADMAP TO DIGITAL TRANSFORMATION

ENGAGING EMPOWERING OPTIMIZING TRANSFORMING


CUSTOMERS EMPLOYEES OPERATIONS PRODUCTS
RETHINKING CUSTOMER ENGAGEMENT

millennials in the US
connect with companies
on social media networks1

Rethinking .

how to
engage
customers

1 Five Truths for Future Marketers. SDL research. March 19, 2014
ENGAGING
CUSTOMERS

BUILDING LOVE
FOR OUR PRODUCTS SOCIAL LISTENING AND 1:1 ENGAGEMENT

Azure Machine Microsoft Social


Learning Engagement

Power BI

1 Five Truths for Future Marketers. SDL research. March 19, 2014
ENGAGING
CUSTOMERS

Getting a consistent, 360-degree view of your customer The goal of this platform is to provide always-on,
across all touch points and channels is the first important connected experiences with contextually relevant and
step in your engagement strategy. Microsoft has personalized information to actively nurture customers to
embarked on a project that not only ties together conversion and ongoing usage and engagement.
customer insights from various sales and marketing
Our Global Engagement Program is enabled through first-
channels, but allows us to build deeper, more contextual
party marketing automation services (Microsoft Dynamics
relationships across all segments with our customers.
CRM and other in-house services), third-party marketing
We have created a Global Engagement Program, automation tools for demand generation and email
spanning pre-sales and post-sales customer journeys, marketing, Azure for data management, and analytics
which enables us to nurture customers digitally through capabilities (Azure Data Lake, SQL Azure, Azure ML, Azure
their lifecycle from unknown leads to free and trial users Stream Analytics, Power BI).
to paying customers in the best-suited channels (email,
web, mobile, in-product, social).

360-DEGREE LIFECYCLE INSIGHTS

Profiling, lead scoring, right content at right time

Anonymous
Microsoft
Dynamics CRM
Lead Tele
Scoring Qualification Advanced
and Tele analytics
Nurture

Azure Data Lake


Azure Data Lake
Analytics
Sales Azure Machine
Post Sales Usage&
Paying Field, Partner Learning
Relationship Adoption
Customer or Tele
Marketing Insights
TRANSFORMING
CUSTOMER
ENGAGEMENT ENGAGING
AT LOWES CUSTOMERS

EXPERIENCING HOME IMPROVEMENT IN A WHOLE NEW WAY

Lowes operates 1,840 home Microsoft partnered with Lowes For Lowes, it brings customers
improvement retail stores in to help reinvent visualization a new way to experience full-
the US, Canada, and Mexico. and design in a whole new way, scale design and appliance
using holograms. options while maximizing
Because home improvement precious floor space
is an incredibly visual Using HoloLens, Lowes is
undertaking, it can be difficult providing customers in select Lowes can quickly and
to conceptualize a full-scale pilot stores a new way to affordably show an array of
remodel using just sample experience home improvement. options that can be digitally
squares and paint swatches. refreshed with far less impact
Through HoloLens customers than what it would take to
get to experience a variety of replace tile or cabinetry
design options for kitchen samples.
cabinetry, countertops,
appliances, and features like In-store designers, spouses, or
backsplashes, in a visually rich friends can view what the
and interactive way. customer is seeingand
changing in real timethrough
a hand-held Surface tablet.
ROADMAP
FOR CHANGE ENGAGING
CUSTOMERS

Customer engagement starts by understanding Build the infrastructure to enable customer


customer behavior. Intelligence plays a critical role in engagement, such as telemetry, a 360-degree view of
understanding and dissecting massive amounts of data the customer, and modern commerce systems.
to recognize patterns of sentiment and behavior across Drive viral find, try, and buy opportunities that
our customer base. help cross-sell and upsell, and build these capabilities
into our product services.
The roadmap for a digital-first business translates into Ensure core services are API (application platform
these key priorities: interface)enabled to allow simpler integration.
There will be a
shortage of 40 million
highly skilled workers
globally by 20201

Rethinking
how to
empower
employees

1 Mark J. Barrenechea,Digital: Disrupt or Die, OpenText, 2015


2 Research Institute for Corporate Productivity, October 19, 2015
EMPOWERING
EMPLOYEES
AT MICROSOFT EMPOWERING
EMPLOYEES

ENABLING THE EVERYWHERE OFFICE


Office 365 2. Encouraged teleworking in
response to economic and
social changes through
Skype/Skype Translator
management.

SharePoint/OneDrive

OneNote

1. Established a technology 3. Provided internal


infrastructure to enable work from communication
anywhere, at all times. Teleworking and training.
as an integral part of business
continuity plans.

4. Instant communication and


video replaymade relevant
corporate info available through
social groups.
EMPOWERING
EMPLOYEES
AT MICROSOFT EMPOWERING
EMPLOYEES

new approach and in delivering on a dashboard, allowing managers to track


new vision called HR Reimagined. key HR insights for their business.

Microsoft also embraced talent analytics


to analyze volumes of data generated in
the recruiting effort, and developed a
mobile digital companion application
for the recruitment process, to attract
millennials with a better recruitment
To help drive the strategy and cultural experience.
changes, Microsoft fundamentally
altered its approach to managing The new tools and resources provided
employee performance and as a result of the HR Reimagined
development to promote new levels of initiative are used by Microsoft
teamwork and agility. The human HR-related data is made employees daily, and have resulted in
resources organization took the lead available to internal customers through productivity increases and cost savings
role in designing and implementing the self-service Power BI in a single live by standardizing on Azure.

Microsoft Azure
Dynamics CRM

1. Used analytics to process 2. Built a mobile Candidate


volumes of data from past Experience App as a digital
recruiting efforts. companion for candidates
interviewing at Microsoft.

Azure

Azure SharePoint
Online

4. Personalized onboarding 3. Implemented a self-service HR


and trainingbe part of the portal to empower all employees with
team from day one. mobile-first HR experiences accessible
from anywhere at any time.
REACHING AND
EMPOWERING
EVERYONE EMPOWERING
EMPLOYEES

BUSINESS NEED SOLUTION OUTCOME


With 14,000 employees in
60 countries, across many core
competencies, Kennametal found
it challenging to connect
individuals with each other.
Kennametal needed a secure way
to foster collaboration among its
thousands of materials scientists
and engineers spread from
Germany to the United States to
India, and drive closer connection
to its 5,000 factory workers who
do not have their own desktop.
ROADMAP
FOR CHANGE
EMPOWERING
EMPLOYEES

Knowledge and insight exist inside your Provide a mobile experience on any device.
infrastructure; its just waiting to be found. Transform business processes for HR and others.
Make processes easier to use and more intuitive
By securely breaking down information barriers you across platforms.
can understand and learn how everyone in the Reinvent collaboration productivity with Office 365.
company uses their time and help maximize the Enable a data-driven culture with curated, easy-to-
impact of our workforce. Take these steps: : access data.

PHASE 1: UNDERSTAND YOUR DATA TAXONOMY AND


CATEGORIZATION SECURITY MODEL

PHASE 2: CONNECT PEOPLE AND TEAMS


Enable seamless idea sharing and collaborative development irrespective of
location and time zone.
Increase productivity across functional teams, geographical boundaries, and
supplier organizations.
Reach everyone.

PHASE 3: CREATE VALUE THROUGH MOBILE PRODUCTIVITY


Use data from in-market products, social networks, and analytics to
uncover new opportunities and roadmap commitments.
Enable leaner co-creation of value across the organization.

PHASE 4: APPLY ANALYTICS


Enable employees to be customer-obsessed:
Gain insights from product sentiment and market trends to inform
product design.
Support decision making, planning, and customer connection.
Rethinking
how to
optimize
operations
Try more, fail, try
again, and test new services and products today at a fraction of the cost due to
TRANSFORMING
OPERATIONS
AT MICROSOFT OPTIMIZING
OPERATIONS

IMROVING UTILIZATION OF BUILDINGS WITH IOT

Azure IoT Suite Azure IoT Suite

1. Deployed low-cost IT 2. Captured input from


sensors to learn more motion, sound, and
about the work temperature sensors in
environment and each room to learn about
optimize resources. room occupancy, noise
level, temperature.

Power BI Azure

4. Data science helps 3. Displayed app on central


predict which rooms are dashboard for employees
never used, and optimize of available rooms with
for energy efficiency. right attributes.
TRANSFORMING
OPERATIONS
AT MICROSOFT OPTIMIZING
OPERATIONS

PREDICTIVE ANALYTICS IN THE SALES PROCESS


Microsoft Azure Machine
Azure
Dynamics CRM Learning

1. Used more than 3 million 2. Developed basic


opportunities from past two recommendation model.
years, to calculate near real-
time opportunity win/loss
predictions with sophisticated
machine-learning algorithms.

4. Sales teams can see 3. Sellers get actionable


whether opportunity is hot, suggestions to move
warm, or cold at a glance and forward on an opportunity
prioritize correctly. in their sales pipeline.
HARNESSING
TECHNOLOGY
FOR NEXT LEVEL OPTIMIZING
EFFICIENCIES OPERATIONS

Ethan M. Berke, MD, MPH


Medical Director, Clinical Design and Innovation

REVOLUTIONIZING HEALTHCARE WITH PERSONALIZED CARE


AND PROVIDER COLLABORATION

Dartmouth-Hitchcock Medical Dartmouth Hitchcock created The system built on Cortana


Center in New Hampshire ImagineCare, an ever-present Analytics Suite, Dynamics CRM,
wanted to define a proactive healthcare system in the cloud, and the Azure cloud platform
health system that is available which allows nurses and health results in a dynamic and
wherever and whenever coaches to track and respond to contextual care plan, which is
patients need it. an individuals health status in more customized and accurate
real time. as it uses Azure machine
Doctor, nurses, and healthcare learning and predictive analytic
workers lacked real-time Data from sensors and devices capabilities.
insights into patients well- such as blood-pressure cuffs,
being, and lacked the tools to pulse oximeter devices, and ImagineCare also lowers cost,
act on them more effectively. activity trackers like Microsoft because the healthcare
Band are transmitted via provider can proactively reach
Care taker teams needed smartphone to the Azure cloud out and prevent emergency
a better way to coordinate care room visits and unnecessary
for individuals and Date is pulled into a Cortana hospital admissions.
communities. Analytics Suite dashboard at a
contact center staffed by
registered nurses who
proactively reach out if alerted.
ROADMAP
FOR CHANGE OPTIMIZING
OPERATIONS

Digital technology now allows businesses to move at Modernize your application portfolio,
incredible speed and accelerate the responsiveness to processes, and skills.
uncover issues and inefficiencies, predict what will Migrate to the cloud by prioritizing the
happen, and then adjust as needed. highest opportunities to fund transformation.
Focus new automation on best opportunities
Your roadmap should focus on three key areas: to eliminate manual work.
of the top 100 largest
enterprise software
companies will have
integrated cognitive
technologies into their
products by 20201

Building
.

love for our


products
1 Deloitte. Cognitive technologies enhance enterprise software. Deloitte. 2016.
2 Keystone Strategy Interviews, Oct 2015 Mar 2016
TRANSFORMING
PRODUCTS

BUILDING THE NEXT GENERATION DIGITAL ASSISTANT

Natural language
Search engine
recognition
1. Built up 10 years of 2. Built foundational
Bing search assets and technologies
technical capabilities.

Predictive analytics Machine Learning

3. Created Cortana, an advanced personal digital assistant, with the ability to


complete tasks in context without being prompted, and personalize user
interaction, using machine learning, contextual, and predictive technologies.
TRANSFORMING
PRODUCTS
AT MICROSOFT TRANSFORMING
PRODUCTS

CYBERSECURITY AS A SERVICE
Azure Machine
Learning

1. Investigating trillions of 2. Aggregating data into


data points from billions of Intelligent Security
sources; 3,500 security- Graph, enriched with
focused professionals contextual metadata and
working 24/7. cloud-powered machine
learning.

3. Analyzing the complex


relationship between
4. In the event of attacks, insights are identities, devices, and
operationalized and put to use to behaviors to connect the
trigger a rapid response. dots, when anomalous
behavior indicates attack.
REVISE BUSINESS
MODELS TO
PRIORITIZE TRANSFORMING
AGILITY PRODUCTS

- Murray Gardiner,
Temenos MicroBanking Suite

10 million underserved
people can now access
banking services thanks
to the Temenos cloud
BRINGING BANKING TO solution built on Azure.
ANYWHERE IN THE WORLD

Thousands of firms around the Temenos developed a cloud With this cloud-based
world use Temenos banking version of its core banking application, Temenos clients are
software, including 38 of the application T24 that uses Azure now able to reach even the
top 50 banks to process Cloud Services. remotest customers in the
transactions. world and open up new markets
Now banks using Temenos T24
Temenos wanted to create a for their services.
application in the cloud can
banking solution for the deploy the application in only a With Azure Cloud Services,
2 billion people in the world few months, and enable Temenos is now on the cusp
who are unbanked. banking through mobile devices of enabling the inclusion of
anywhere. 2 billion more people in formal
financial arrangements.
ROADMAP
FOR CHANGE
TRANSFORMING
PRODUCTS

Every company is becoming a data company. We need Connecting people to enable seamless idea sharing.
to create connected services and generate insights to Gaining insights from product sentiment and market
see what can be monetized to unlock new business trends to drive roadmap decisions.
models. The roadmap to support these efforts should Using data from in-market products, social networks, and
focus on: analytics to uncover new opportunities.
Trustworthy:

Flexible:

Integrated:

Learn more
http://aka.ms/leadingdisruption