Presentation given by Mark Sherwin and Rose Riley at Precedent's London Studio on 13 June 2013.

1. MARK SHERWIN & ROSE RILEY
June 2013
Daring to be Digital
embedding digital in 21st century organisations

2. The
Website
Web
strategy
Digital
strategy
Digital
transformation
WE ARE EVOLVING FROM A MARKETING CENTRIC
TO BUSNESS WIDE VIEW OF THE WEB
Marketing centric
Business-wide impact

3. THOSE ORGANISATIONS THAT DO NOT FUNDAMENTALLY
TRANSFORM ARE RAPIDLY BECOMING IRRELEVANT

4. IF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON AN
E-COMMERCE APPENDAGE TO YOUR BODY CORPORATE,
THEN THINK AGAIN.
WE PROMISE YOU THAT WON'T WORK...
YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT
RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE
AN 8.0 EARTHQUAKE, YOU MUST BE PREPARED FOR THE
REARRANGEMENT THAT WILL INEVITABLY OCCUR.
Keyur Patel & Mary McCarthy | Digital Transformation, 2000
DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE

5. A CHANGE THAT IS NO LONGER A CHOICE BUT AN IMPERATIVE

6. Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
AND THERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO
Keyur Patel & Mary McCarthy | Digital Transformation, 2000

7. Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
THOSE WHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND
Keyur Patel & Mary McCarthy | Digital Transformation, 2000

8. THE GOOD NEWS IS THAT THERE IS LIGHT AT THE END OF THE
TUNNEL, WE JUST NEED TO BE IN THAT FIRST 15% OF INNOVATORS AND
ADOPTERS!

9. DIGITAL TRANSFORMATION REFERS TO THE CHANGES ASSOCIATED WITH THE
APPLICATION OF DIGITAL TECHNOLOGY IN ALL ASPECTS OF HUMAN SOCIETY.
DIGITAL TRANSFORMATION MAY BE THOUGHT AS THE THIRD STAGE OF EMBRACING
DIGITAL TECHNOLOGIES:
DIGITAL COMPETENCE -> DIGITAL LITERACY -> DIGITAL TRANSFORMATION.
THE LATTER STAGE MEANS THAT DIGITAL USAGES INHERENTLY ENABLE NEW TYPES
OF INNOVATION AND CREATIVITY IN A PARTICULAR DOMAIN, RATHER THAN SIMPLY
ENHANCE AND SUPPORT THE TRADITIONAL
Wikipedia | ‘Digital Transformation’
TODAY WE WILL EXPLORE WHAT IT MEANS TO ACHIEVE
DIGITAL TRANSFORMATION

10. WE’RE GOING TO EXPLORE 5 KEY THEMES
1. Customer service, the missing link
2. Harnessing the wisdom of crowds
3. New money models
4. The corporate tricorder
5. The Internet of things, and big data

11. WE’LL ALSO HELP YOU FIND YOUR INNER HERO…

12. Customer service, the missing link

13. MARKETING CAN NO LONGER SIMPLY FOCUS ON AIDA
IT MUST FOCUS ON AIDA AND ITS REFLECTION
The AIDA reflection | Mark Sherwin, Precedent 2013
AWARENESS
INTEREST
DESIRE
ADVOCACY
INVOLVEMENT
DELIVERY
ACTION

14. OPTICAL EXPRESS - NOT JUST AN AGGRESSIVE ACQUISITION MODEL

15. OPTICAL EXPRESS - TAILORED PRE AND POST PURCHASE COMMUNICATIONS

16. OPTICAL EXPRESS - REWARDING CONTINUED ENGAGEMENT

17. OPTICAL EXPRESS - LINKING, BUT NOT DEMANDING ADVOCACY

18. OPTICAL EXPRESS - USING ADVOCACY TO DRIVE NEW AWARENESS AND
INTEREST

19. LOVEFILM – FAILING AT THE FINAL HURDLE

20. A MORE CONSIDERED APPROACH

21. ANTICIPATING NEEDS

22. HELPFUL ALTERNATIVE SUGGESTIONS AND FURTHER
ACTIONS

23. NEXT GENERATION DIGITAL CUSTOMER SERVICE AGENTS -
REPLICATING HUMAN INTERACTION?
http://www-05.ibm.com/uk/watson/

24. Harnessing the wisdom of crowds

25. USES OF CROWD SOURCING
?OperationsFinancing
Research and
Development
Idea generation

26. IDEA GENERATION – MY STARBUCKS

27. RESEARCH AND DEVELOPMENT - GOLDCORP

28. FINANCING

29. x
FINANCING - KICKSTARTER

30. OPERATIONAL RUNNING - GIFF GAFF

31. TURNING ADVOCATES INTO STAKEHOLDERS
Stakeholders
Idea
generation
Research and
Development
Financing
Operations

32. The corporate tricorder

33. EVERY EMPLOYEE
WITH MORE COMPUTING POWER
AT THEIR FINGER TIPS THAN
THE SPACE SHUTTLE.
ANYTIME…ANYWHERE

34. DIGITAL CAN UNCHAIN YOUR EMPLOYEES FROM THEIR DESKS
OFFERING INNOVATIVE NEW PRODUCTIVITY SOLUTIONS

35. SMART PHONES CAN NOW REPLACE MANY ANALOGUE PROCESSES
AND DEDIATED DEVICES

36. THEY ALSO OFFER THE OPPORTUNNITY TO PROVIDE NEW VIEWS
ON TO EXISTING DATA USING CONTEXT TO STREAMLINE EXPERIENCES

37. AS DIGITAL WALLETS BECOME MORE MAINSTREAM THE MOBILE
OFFERS HUGE EFFICIENCY AND PRODUCTIVITY BENEFITS

38. INTEGRATING DIGTAL WITH THE PHYSICAL WORLD (PHYGITAL)
CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS

39. INTEGRATING DIGTAL WITH THE PHYSICAL WORLD (PHYGITAL)
CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS
http://www.youtube.com/watch?v=fGaVFRzTTP4

40. WEARABLE TECHNOLOGY INTEGRATES CONTEXTUAL, MOBILE EXPERIENCES
EVEN FURTHER INTO OUR EVERYDAY LIVES
http://youtu.be/ykDDxWbt5Nw

41. New money models

42. AS CUSTOMERS MOVE TO A SUBSCRIPTION ECONOMY BUSINESSES MUST
MOVE FROM A PRODUCT ORIENTATED TO CUSTOMER ORIENTATED VIEW

43. TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A
MORE FLEXIBLE APPROACH TO ACCESS

44. TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A
MORE FLEXIBLE APPROACH TO ACCESS

45. TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A
MORE FLEXIBLE APPROACH TO ACCESS

46. CUSTOMERS WANT INCREASINGLY GRANULAR PURCHASING OPTIONS
MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN

47. NEW PURCHASING MODELS CAN DRIVE NEW CONSUMER HABITS
AND DELIVER GREATER RETURNS

48. WHILST PURCHASING MODELS ARE CHANGING SO ARE OTHER ASPECTS
OF FINANCIAL TRANSACTIONS SUCH AS RAISING FUNDS

49. THESE MODELS ARE STARTING TO PERFUSE INTO MORE NICHE
APPLICATIONS AND SECTORS

50. The internet of things, and big data

51. DIGITAL CAPABILITY IS NO LONGER RESTRICTED TO
HIGH END COMMUNICATION DEVICES

52. IT USED TO BE THAT EVERY CHILD DREAMT OF HAVING THEIR OWN ROBOT
http://www.kickstarter.com/projects/john-cole/brickpi-lego-bricks-with-a-raspberry-pi-brain/widget/video.html

53. Beecham Research`s Connected Devices Sector Map | http://beechamresearch.com/article.aspx?id=4
CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD
ACROSS A DIVERSE RANGE OF ‘THINGS’

54. Beecham Research`s Connected Devices Sector Map | http://beechamresearch.com/article.aspx?id=4
CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD
ACROSS A DIVERSE RANGE OF ‘THINGS’

55. THIS CREATES HUGE OPPORTUNNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
Use case from The New Digital Age | Schmidt and Cohen 2013

56. ‘THE INTERNET OF THINGS ISN’T WI-FI FRIDGES AND DEVICES WITH
BOLT ON CONNECTIVITY: IT’S TINY, CHEAP SENSORS THAT WILL
BRING EVERYDAY OBJECTS TO THE NETWORK – IN THEIR BILLIONS’
‘BY STRAPPING A RECEIVING COMPUTER TO THE SIDE OF IT, THE
INTERNET FRIDGE BRINGS THE INTERNET TO THE DEVICE. BY
CONNECTING TRANSMITTING SENSORS TO THE NETWORK, THE
INTERNET OF THINGS BRINGS THE DEVICE TO THE INTERNET.’
BEN HAMMERSLEY | WIRED, 2013
NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…

57. WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS,
COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER DATA
OPPORTUNITIES

58. THE DATA IS EASY TO GATHER, OR ALREADY EXISTS – THE OPPORTUNITY
LIES IN WORKING OUT HOW TO USE IT

59. THIS CAN LEAD TO INNOVATIVE NEW APPROACHES TO CUSTOMER
INSIGHT, AND PRODUCT AND SERVICE DESIGN
Mobile phone data redraws bus routes in Africa, BBC | http://www.bbc.co.uk/news/technology-22357748

60. Gotcha, but how do I make that 15%?

61. The
Website
Web
strategy
Digital
strategy
Digital
transformation
FIRST WE MUST ARTICULATE WHAT IT MEANS
TO EMBRACE DIGITAL TRANSFORMATION
Marketing centric
Business-wide impact

62. Marketing centric
Business-wide impact
DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Business
Strategy
Marketing
Strategy
Web
Strategy
Business
Strategy
Marketing
Strategy
Digital
Strategy
Digital
Strategy
Business
Strategy
Marketing
Strategy
Digital
Transformation
Web strategy Digital strategy Digital transformation
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013

63. Marketing centric
Business-wide impact
DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Business
Strategy
Marketing
Strategy
Web
Strategy
Business
Strategy
Marketing
Strategy
Digital
Strategy
Digital
Strategy
Business
Strategy
Marketing
Strategy
Digital
Transformation
Web strategy Digital strategy Digital transformation
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013

64. Marketing centric
Business-wide impact
DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Business
Strategy
Marketing
Strategy
Web
Strategy
Business
Strategy
Marketing
Strategy
Digital
Strategy
Digital
Strategy
Business
Strategy
Marketing
Strategy
Digital
Transformation
Web strategy Digital strategy Digital transformation
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013

65. WHILST SOME MAY APPOINT A CHIEF DIGITAL OFFICER,
MOST MUST CHANGE FROM WITHIN. A DIGITAL HERO IS REQUIRED

66. MOST EXECUTIVES DON’T USE SOCIAL NETWORKS OR SMART PHONES.
MANY DON’T EVEN READ THEIR OWN EMAIL.
SO TRYING TO CONVINCE DECISION MAKERS THAT THIS IS A WAR
FOUGHT ON THE BATTLEGROUND OF TECHNOLOGY IS IN AND OF
ITSELF FIGHTING A LOSING BATTLE.
BRIAN SOLIS | WHAT’S THE FUTURE OF BUSINESS, 2013
WHILST SENIOR MANAGEMENT MAY SUPPORT CHANGE
THEY MAY TO BE THE ONES TO DRIVE THE CHANGE.

67. DIGITAL TRANSFORMATION MUST INTERLINK
WITH ALL PARTS OF THE BUSINESS
FINANCE
OPERATIONS
CUSTOMER
SERVICE
MARKETING
HUMAN
RESOURCES
RESEARCH &
DEVELOPMENT
DIGITAL
TRANSFORMATION
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013

68. AND TO GATHER SUPPORT IT MUST
DELIVER TO ALL PARTS OF THE BUSINESS
BUSINESS
VALUE
IMMEDIATE
RETURN
CUSTOMER
SATISFACTION
BRAND
VALUE
KNOWLEDGE
RETENTION
INNOVATION
DIGITAL
TRANSFORMATION
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013

69. GENERATE IDEAS AND LOOK FOR THOSE IDEAS
THAT IMPACT ACROSS ORGANISATIONAL GOALS
BUSINESS
VALUE
IMMEDIATE
RETURN
CUSTOMER
SATISFACTION
BRAND
VALUE
KNOWLEDGE
RETENTION
INNOVATION
IDEA

70. AVOID STARTING WITH A HUGE TECHNOLOGY SOLUTION
INSTEAD LOOK FOR SMALL CHANGES THAT CAN DELIVER BIG IMPACTS

71. WE NEED TO DELIVER RECOGNISABLE AND MEASUREABLE BUSINESS
VALUE EVERY THREE TO FIVE MONTHS. THAT IS IMPERITIVE, OTHERWISE
WE LOSE CREDIBILITY AND TRUST.
Claes Mansson | Director, ICT Strategic Investment Programme , Monash University, 2013
UNDERSTAND HOW YOU WILL MEASURE BUSINESS VALUE
ESTABLISH BASELINES, CONSTANTLY MEASURE, OPTIMISE AND EVOLVE

72. NARRATING THE STORIES IS CRUCIAL
TO GATHERING SUPPORT FOR BIGGER CHANGE
Creating engaging online experiences for ACI ‘s customers, James Downes, UX Director, Precedent 2012

73. SO LET’S SAY YOU ARE OUR HERO…
WHAT’S THE JOURNEY GOING TO FEEL LIKE?

74. A HERO’S JOURNEY
CHANGING THE WAY BUSINESSES CREATE EXPERIENCES
INCEPTION
You see the need for change.
You feel as if more can be done.
You’re not sure its your responsibility and the
opportunity is bigger than you envisioned.
You question your calling.
Perhaps you refuse it.
Then you meet others who will empower
you…stand by you through change.
What’s the Future of Business | Brian Solis, 2013

75. A HERO’S JOURNEY
CHANGING THE WAY BUSINESSES CREATE EXPERIENCES
TRIBULATION
Change is met with hardship.
It’s unavoidable.
You start to feel the discomfort from leaving
your comfort zone.
Obstacles will arise; budget constraints,
politics, scepticism, tunnel vision, blatant
ignorance.
Stay true stay focused.
Your customers and employees are anxious
for you to succeed.
What’s the Future of Business | Brian Solis, 2013

76. A HERO’S JOURNEY
CHANGING THE WAY BUSINESSES CREATE EXPERIENCES
TRANSFORMATION
Buzz and excitement permeates the halls of
your business.
Employees hear about what you are trying to
do, they enquire how to be part of it or how
soon they’ll see the fruits of your labour.
To hold consensus takes frameworks and
processes. This sets the stage for how
people, teams, philosophies, and technology
will support the transformation.
It’s always darkest before dawn. There will be
pushback, more and more challenges.
Keep the team strong, you've come too far for
that.
What’s the Future of Business | Brian Solis, 2013

77. A HERO’S JOURNEY
CHANGING THE WAY BUSINESSES CREATE EXPERIENCES
REALISATION
To call this the last stage is misleading.
Transformation is continual, it becomes part
of your business model.
Here you learn and adapt accordingly.
You lift your head and notice that the people
inside and outside of the organisation are
noticing change.
Change is now constant.
Take this moment to revel in your journey.
Since you are the hero in this story, your
journey is just beginning.
What’s the Future of Business | Brian Solis, 2013

78. THE INTERNET IS AMONG THE FEW THINGS HUMANS HAVE BUILT THAT THEY
DON’T TRULY UNDERSTAND. IT IS THE LARGEST EXPERIMENT INVOLVING
ANARCHY IN HISTORY.
AS GLOBAL CONNECTIVITY CONTINUES ITS UNPRECEDENTED ADVANCE. MANY
OLD INSTITUTIONS AND HIERACHIES WILL HAVE TO ADAPT OR RISK BECOMING
OBSOLETE.
THE STUGGLES WE SEE TODAY IN MANY BUSINESSES, ARE EXAMPLES OF THE
DRAMATIC SHIFT FOR SOCIETY THAT LIES AHEAD.
AND WE’VE BARELY LEFT THE STARTING BLOCKS.
Eric Schmidt & Jared Cohen | The New Digital Age, 2013

79. WE SHOULD ALL BE CONCERNED ABOUT
THE FUTURE BECAUSE WE WILL ALL HAVE
TO SPEND THE REST OF OUR LIVES THERE.
Charles F. Kettering, American inventor and businessman