The document discusses the need for organizations to undergo digital transformation in order to remain relevant. It argues that digital strategies can no longer be marketing-centric and must have business-wide impact. Organizations must be willing to fundamentally change their structures to fully embrace digital. The document also discusses several key themes of digital transformation, including harnessing customer service, crowdsourcing, new business models, empowering the workforce with technology, and leveraging the internet of things and big data. It advocates that organizations need "digital heroes" who can drive digital transformation by starting small projects that deliver measurable business value and garnering support across the organization.
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
8. BUT DON’T TAKE IT FROM US…
What is the biggest threat that digital presents to your business?
9. 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!
10. AND BEING WITH US HERE TODAY…
IS A GOOD START TO YOUR JOURNEY
11. 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
12. 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
15. 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
66. 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’
67. 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’
68. THIS CREATES HUGE OPPORTUNNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
69. THIS CREATES HUGE OPPORTUNNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
Use case from The New Digital Age | Schmidt and Cohen 2013
71. ‘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…
72. WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS,
COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER DATA
OPPORTUNITIES
73. AS THESE DEVICES STORE DATA IN THE CLOUD WE WILL HAVE ACCESS
TO MORE DATA ABOUT OUR WORLD THAN EVER BEFORE
74. 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
77. DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013
78. WHILST SOME MAY APPOINT A CHIEF DIGITAL OFFICER,
MOST MUST CHANGE FROM WITHIN. A DIGITAL HERO IS REQUIRED
79. 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.
80. DIGITAL TRANSFORMATION MUST INTERLINK
WITH ALL PARTS OF THE BUSINESS
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
81. AND TO GATHER SUPPORT IT MUST
DELIVER TO ALL PARTS OF THE BUSINESS
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
82. GENERATE IDEAS AND LOOK FOR THOSE IDEAS
THAT IMPACT ACROSS ORGANISATIONAL GOALS
83. AVOID STARTING WITH A HUGE TECHNOLOGY SOLUTION
INSTEAD LOOK FOR SMALL CHANGES THAT CAN DELIVER BIG IMPACTS
84. 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
85. 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
86. SO LET’S SAY YOU ARE OUR HERO…
WHAT’S THE JOURNEY GOING TO FEEL LIKE?
87. 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
88. 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
89. 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
90. 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
91. SO OVER TO YOU ONE LAST TIME…
How will you start your Hero’s Journey?
92. 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
93. 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
94.
95. 120 experts
Strategy & research
Branding & communications
User-centred design
Development & hosting
Digital marketing
99. Mobile first
Tesco Bank
- Design and User Experience for Mobile
- Usability testing
- Agile development and optimisation
Editor's Notes
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
MNo
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
MNo
ConclusionCustomer segmentation, Persona development etc – all valuableBUT remember that customer experience is a journey – we can’t predict it so we need approaches that adapt to the users behaviour in potentially suprising and personal way
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First stumbling block in moving from digital strategy to digital transformation
The traditional marketing model, funnelling people through to action, is no longer sufficient. Online activity must also be concerned with:Delivery: How is the product or service being delivered to the individual and how can online improve thisInvolvement: Are you actively seeking to involve the customer through post purchase/action engagement such as asking for ratings/reviews, or providing value added servicesAdvocacy: How can you turn satisfied customers into online advocates for your brand
Unexpected example of the reflection.Typical online ad sales – subconsciously a low expectation of high quality customer service
Strong persuasion triggers (price, delivery, collection)Great browsing controls (faceted as well as directly on the product itself)
Buying decision supported by, not just a great sales experience but also from other customers – breaking out Q&A works well, complementing the social proof / validation that customer reviews bring.
Parcel arrives (well packaged, on time, with clear returns information) AND a very simple bit of customer delight
Excellent online advocacy used on website – volume of positive reviews (on site enables a loop with advocacy feeding back into awareness)
Its so easy to get this wrong…Love film and other internet successes have been instrumental in the downfall of less nimble business like blockbuster, Seamless experience throughout, easy management of system through an intuitive interface, flexible subscriptions – even the option to have a payment holiday at the press of a button.But the fail comes when they make it hard to leave – with no option for online cancellation of an accountForcing you to phone an aggressive retention teamHard to leave = less inclined to rejoin.If a company allows online joining, it has to allow online cancellation.
Someone who’s not doing it so well.O2 – provide an online chat facility accessed under ‘Help and Support’ on their site – Something that would naturally be sought out by those seeking customer services. Understaffed – frequently unavailableUsed as a sales channel – staff not able to provide valid support – simply push sales messages. Leads to endless blogs of peopleposting examples of the irrelevant sales messaging they receive
Leads to reams of negative feedback online
HOINTERMens jeans shop in USABelieved that all men don’t hate shopping, so were curious to explore how they could make it betterNo pushy sales assistants,no confusing piles of clothes and no endless lines at the tills. Only one of each style of jeans is displayed on the shop floor.
Shoppers use a smartphone app to scan items they wish to try on, and choose a size and colour.Jeans arrive in 30 secondsIf they’re good, the customer swipes a card to pay and leavesMessage > Stock room > Tensioned cables drop jeans into fitting room > payment card swiped through a reader > and out they go
Understanding the pain points of the existing experience. Creating something unique and memorable – developing brand value and potentially saving on the staffing costs of servicing the store, not to mention the engagementopportunities opened up by exploiting digital
IBM super computer WatsonFamouslydefeated 2 jeopardy champions live on TV in 2011 - demonstrating novel capabilities in understanding natural languageNow focusing on customer service – giving it commercial purposeIn finance 96% customers think banks don’t understand customer experienceThough use of natural language processing, hypothesis generation and evaluation and evidence based learning and of course the data an institution holds on itself and its customersWatson will provide the next generation of online customer service agent delivering fast, evidence based responses. A natural conversation with an artificial helper – responding uniquely to each question. Being rolled out by ANZ bank.We can’t all afford a super computer, but what happens on a super computer one day is commonplace the next. And back in 2011 when Watson won jeopardy, there was one physical Watson, whereas now it is being replicated for each use case across the cloud.
High volume of enquiries from prospective applicants.Need to provide information efficiently to so many people. An automated online service relieves pressure on the Enquiries Team by supporting the most repetitive enquiries - improving service levels and ensuring efficient use of resources.
Moving on a step from Customer Service – What can the public do for you?
This is nothing new
GoldCorp had owned the rights to the mine at red lake ontario for over 50 yearsCouldn’t find the goldMade the radical decision to crowd source by making their data publicGave out 400 megabytes of data and a $575 thousand prize fundExpected responses from elsewhere in the industry – got them from unexpected sources such as mathematicians, military offices, even new graduatesContestants identified 110 sites for potential targetsOf which 50% were new to GoldcorpOf those 80% yielded substantial quantities of goldTurning Goldcorp from a $100 million to a $9 billion company.
Crowd sourced funding is nothing newThe first black man to become American president also revolutionised campaign funding with crowd sourced micropaymentsIn an electoral system that requires immense budgets to promote candidates across the nation, raising funds is a pivotal piece of every successful campaign. Obama’s tech savvy approach allowed him to connectBy allowing for minor donations to be made with the click of a button, Obama monetized his relationship with his supporters. Donations of $200 or less accounted for about 47 percent of Obama’s total fundraising. By comparison, only 26 percent of Sen. John McCain’s fundraising came from donations that small (1). Obama’s $778,642,962 in fundraising trumped McCain’s $383,913,834
But you don’t need to be Barak Obama to crowd source funding these days – whether it’s the latest tech start-up, or a group of superfans wanting to put the tardis in space, tools like kickstarter allow crowd sourced funding for anything and everything.
Taking crowd sourcing even furtherCompanies like Mechanical Turk and Giff GaffCrowd sourcing of the operational running of their businessRun by membersGain rewards by answering customer service questions, recruiting new customers, implementing marketing etc
Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
Shutl, an organisation taking it one step further, using crowd sourcing to bridge one of the biggest gaps between digital and physical capabilities for retail organisations.
Crowd sourcing – doesn’t hurt to start at homeRedesigning intranets from unused tomes to tools for social business – that’s probably a whole seminar for itself…Imagine if you could harness the knowledge, experience and ideas of your employees to help solve the challenges you and your clients faceMechnical Turk Pledging time
But for now…5 mins chat: intro you company and think about ideas as a groupShare ideas with group
MNo
MNo
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
Everything we’ve covered so far should be on the immediate agenda of any organisation not wanting to be left behind in the digital ageBut now lets thing about some more aspirational issues, something for the roadmap perhaps
Covers almost 70 digital products (including dropbox, evernote, GMAIL) – creating rules personal / valuable to the user (s)
Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everything
It used to be that every child wanted their own robotNow every child can make their own robotPlay video to battery
Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everything
Digital is now part of everythingAnd everything can have the ability to collect, and share dataInputs and outputs from all industry sectors, from construction to healthcare to securityHighly suggest looking at the model from this beecham research – unpacks use cases in all sectors
Lets consider a familiar sector – consumer and home goods.
No one enjoys being woken by an alarm clock
Credit digital shift bookYou awake at the ideal moment in your sleep cycleambient lighting, and the smell of freshly brewed coffee, and the sound of your favourite musicWith precisely the right amount of time needed to get to the office ready for a big meetingThis will happen because:Sleep sensors in your bed, monitoring your sleep cycleWirelessly connected to your calendarWhich has cross referenced time you need to get to the office with your GPS against expected traffic patternsTo determine when to wake youIt has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the dayWhats exciting is that all this technology already exists – its just a case of linking it up
Credit digital shift bookYou awake at the ideal moment in your sleep cycleambient lighting, and the smell of freshly brewed coffee, and the sound of your favourite musicWith precisely the right amount of time needed to get to the office ready for a big meetingThis will happen because:Sleep sensors in your bed, monitoring your sleep cycleWirelessly connected to your calendarWhich has cross referenced time you need to get to the office with your GPS against expected traffic patternsTo determine when to wake youIt has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the dayWhats exciting is that all this technology already exists – its just a case of linking it up
There was an early misconception that the internet of things was a device with an integrated web interface
Technology like this already exists:San Francisco parking spot finder1 in 3 drivers in San Fran searching for a parking spotDetectors under every spot – made up of just a battery, radio antenna and magnetometerDetect when a car is above themMake data available about free spots to smartphone usersCity able to adjust cost to match demand_____________________________________________________________________Dublin investing in being a smart cityThe city council working to improve the transport network without any major re-development. Instead, it has been collecting and analysing data, to tackle congestion. Journey information is released and updated by Dublin city council every minute. Residents can go online and find the quickest route to their destination
Big data is really a mis-noma – its about mass, micro data.How that data is analysed and used is where the big opportunities lie – the data is there, you just need to work out what to do with it
Data for development competition by Orange released anoymous data on 2.5 million call records from the Ivory CoastIBM researchers focused on Data in Abidjan – Ivory Coast’s largest cityAnalysis when and where people were using the bus networkSpotted gaps to identify two new routes neededFound that they could reduce the averagejourneytimeby10% - all done within a month
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
MNo
MNo
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
Thaler and Sunstein bookChoice architecture ‘Improving choice’?Nudge Unit in GovernmentRoad tax exampleHome insulation exampleJob centre example
MNo
You can gain competitive advantage through this understanding in any sector
MNo
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector
You can gain competitive advantage through this understanding in any sector