DSI’s business model

DSI’s business modelFor GreenSI, 2019 should mark a turning point for the IT department’s role in corporate digital transformation.

And that’s good because the role of IS investments over which DSI has an impact, even if it is not alone, has asserted itself as being the most divisive parameter for the success of this transformation.

So when a group of DSI arranges an exchange evening this week on the theme “When the CIO (re) invents the company’s financial model“, GrønSI could not be there.

This was an opportunity to roll out two feedbacks from companies – Edenred and Suez where DSI, or a digital entity close to DSI, has played a key role in marketing the company’s new services, and de facto changed its business model.

In 2010 and 2019, Edenred published two shareholder reference documents, which allow us to measure the progress made.

IN 2010 Edenred, the inventor of “Ticket Restaurant®”, formerly Accor Services, was born out of the split of the AccorHotels group between its hotel and prepaid service activities. It now claims to be the world number one in its market. But in 2010, all of its products are paper-dependent; they are called “tickets” (Ticket Restaurant®, Ticket Alimentación, Ticket CESU, Childcare Vouchers …) when many start-ups explore the total dematerialization of transactions with the Internet.

It was the entire IT department of the “new” Edenred that was able to leverage this new impetus to digitize IS and understand that this chart (above) taken from the 2010 activity report clearly showed thatEdenred was a dissemination platform that brought together companies, their employees and even the public authorities, in more than 40 countries. The announced transformation plan to lay the foundations for a new long-term growth strategy implemented in three phases (“Succeeding 2010”, “Conquering 2012” and “Inventing 2016”) will therefore be a success that would not have taken place without its SI.

In 2019, Edenred was at the heart of a virtuous ecosystem of 750,000 businesses, 1.4 million affiliated merchants, enabling 43 million employees to take advantage of digital transaction services, such as the famous Ticket Restaurant®.

This transformation was accompanied by the economies of scale of the platforms by increasing its turnover during the period faster than its workforce.

The digital transformation of Edenred’s IS, which relied on the Internet, had been seen as obvious, unlike other CIOs who simultaneously viewed the Internet as a topic outside their IS.

The strong links between DSI and GD have certainly been a catalyst for this success.

Same era, but different sector, a unit of Suez from a research center, Ondeo Systems, later renamed Smart solutions (editor’s note: this is where I work when not blogging!), launches external marketing to local authorities of advanced business solutions used internally by Suez. In 2009, it launched an external metering reading platform on the left bank of Paris to digitize end-to-end metering of water consumption and its traditional uses, such as billing or network management. Its customers’ businesses (subscribers to its data), both internal and external, are then transformed.

To further develop its area of ​​expertise, it then took over the business applications managed by DSI and enriched its teams with IT specialists from its ranks. In 2012, its technology was improved and maintained by GRDF for its own gas meters. It then developed a whole range of expert software (Aquadvanced®), based on the analysis of the billions of data collected each month by its platform.

In 2019, it is the world leader in smart solutions in water, leads an ecosystem around the chosen open technology (Wize Alliance – 169MHz), becomes an important building block for rethinking smart cities (Smart Cities) and has paved the way for Suez to an economic model of publisher / integrator / data operator, very different from its core business based on sales of quantities (m3 or tonnes) processed.

Platforms, ecosystems, digitization internally and externally through IS, CIOs play a key role in these aspects of digital transformation. These two examples, over 10 years, also show the obligation to have a medium-term step-by-step strategyeither implemented in a program like Edenred, or through the flexibility of the regular restructuring of activities in the market like Smart Solutions.

In this case, The IT department has its own business model, linked to digital activities, and why not a profit center, versus the cost center model found in all IS management. She then organizes herself to manage sales and support relationships with the company’s external customers, while maintaining strong connections to the IT used internally, where she acquires her business expertise.

But technology is not everything and there are many obstacles to prevent the newly converted to digital business from succeeding.

In 2018, Gartner examined the obstacles to the development of digital business models, summarized in 6 major obstacles and presented under the IT / Expo:

  1. a culture that is resistant to change
  2. underdeveloped sharing and collaboration practices
  3. trades are not ready
  4. the talent gap
  5. current practice does not promote good digital practice
  6. underestimate change management

We see that while the IT department can accelerate the transformation of the digital platform into the heart of the digital business of the future, the brakes are not all dependent on technology, although in some cases it can also support them (especially internal collaboration, its broad dissemination or support for change).

Thus, if DSI understands the business issues, it will be able to strengthen its advisory role vis-à-vis DGlooking for one internal mentor in a rapidly changing technological world. It should also integrate more entrepreneurial profiles into its teams, not afraid of risk, and more suited to sales, dialogue and pedagogy.

The digital future is therefore full of opportunities for the CIO, who will be able to increase his management skills and agility.which will have abandoned its historical links (governance and non-digital suppliers) and will be able to build the modern digital platform that the company needs to develop its revenue and reinvent its business model.

Leave a Comment