‘Digital transformation’ is the latest buzz phrase but what does it really mean?
Our seminar takes a look at the difference between those who are digitally reactive, strategic, and transformational and asks: Which are you and what difference does it make to your business?
We look at the challenges and tangible benefits of digital transformation and why it needs to move out of the marketing team and into the boardroom.
9. WE ARE EVOLVING FROM A MARKETING CENTRIC
TO BUSINESS WIDE VIEW OF THE WEB
The
Website
Web
strategy
Digital
strategy
Digital
transformation
Business-wide impact
Marketing centric
10. TODAY WE WILL EXPLORE WHAT IT MEANS
TO ACHIEVE DIGITAL TRANSFORMATION
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’
12. DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE
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
13. AND THERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO
Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
Late Majority
34%
Laggards
16%
14. THOSE WHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND
Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
Late Majority
34%
Laggards
16%
15. In a world filled with uncertainty, it’s easy to fall into a
“wait and see” mind-set.
But waiting and saying “no” has a cost just as high, if
not higher, than saying “yes.”
Because technology is increasing so fast and because
we are in a period of rapid transformation are the
exact reasons why you can no longer “wait and see”
what will happen.
Remember this: “If you don’t do it, someone else will.”
And they’re doing it right now!
Daniel Burrus, Flash Foresight
16. How is your industry being digitally disrupted?
18. 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 tricorder
5.
The Internet of things
41. WE’D WANT TO HIGHLIGHT NINE DIFFERENT TYPES OF BUSINESS MODELS
ALL OF THEM HAVE BEEN IMPACTED BY THE WEB
Brokerage
| Bringing buyers & sellers together e.g. Estate Agents, IFAs
Advertising
| Content provider carrying adverts e.g. Google, Facebook
Infomediary
| Consumer habits & personalisation e.g. DoubleClick
Merchant
| Selling e.g. Amazon, John Lewis, Argos
Manufacturer Direct | Build and sell e.g. Dell
Affiliate
| Revenue sharing e.g. Amazon
Community
| User supported e.g. Open source, Kickstarter
Subscription
| Periodic payment e.g. Guardian, Spotify, membership orgs
On-demand
| Pay as you go e.g. In App/Game Payments
42. MERCHANTS: CUSTOMERS WANT INCREASINGLY GRANULAR PURCHASING OPTIONS.
MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN
73. NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…
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
74. THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
75. THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
Use case from The New Digital Age | Schmidt and Cohen 2013
76. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
Learns your behaviour by
you manually changing
the temperature, and it
learning your routine.
And can be adjusted by
your smartphone app.
77. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
78. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
79. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
WHETHER WEARABLE OR AMBIENT
80. THIS IS A 2020 CONCEPT FROM SONY ABOUT A FULL COMPUTER YOU WEAR ON
YOUR WRIST
86. FIRST WE MUST ARTICULATE WHAT IT MEANS
TO EMBRACE DIGITAL TRANSFORMATION
The
Website
Web
strategy
Digital
strategy
Digital
transformation
Business-wide impact
Marketing centric
87. DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013
88. AND TO GATHER SUPPORT IT MUST DELIVER
TO ALL PARTS OF THE BUSINESS
DIGITAL
TRANSFORMATION
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
DIGITAL
TRANSFORMATION
89. GENERATE IDEAS AND LOOK FOR THOSE IDEAS
THAT IMPACT ACROSS ORGANISATIONAL GOALS
91. UNDERSTAND HOW YOU WILL MEASURE BUSINESS VALUE
ESTABLISH BASELINES, CONSTANTLY MEASURE, OPTIMISE AND EVOLVE
We need to deliver recognisable and measureable business value
every three to five months.
That is imperative, otherwise we lose credibility and trust.
CLAES MANSSON | DIRECTOR, ICT STRATEGIC INVESTMENT PROGRAMME , MONASH UNIVERSITY, 2013
95. 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 it’s 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
96. 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
97. 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
98. 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
100. Transformation will not wait, pause, or stand aside while you think about
it. There are three critical truths about business in this new era that you
cannot afford to ignore; we might call them corollaries to the Golden Rule:
1) Transformation will happen.
2) If it can be done, it will be done.
3) If you don’t do it, someone else will.
The message is clear: in the days, weeks, months, and years
ahead, expect and plan for radical transformation.
Daniel Burrus, Flash Foresight
101. 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
Notas del editor
Those 130 of us are spread across obviously here in Sydney, and studios in Melbourne, Perth, the UK and recently Hong Kong, where we are building on the IP and project experience we have built up in the Asian market over the last 5 years.Our studios act are independent full-service delivery teams, and act as individual centres of excellence specialising in mobile, strategy, or technical – ensuring we allow our clients to lead, rather than follow.
Good news is…
Good news is…
You can gain competitive advantage through this understanding in any sector
Digital used to mean a desktop computer and a website for marketing purposes, But now, to truly take advantage of digital is to ingrain it in your organisations DNA, to have business-wide impact.In order to be transformational, an organisation’s digital agenda must be owned in the boardroom as a fundamental part of the corporate vision and strategy.If transformation is successful in delivering an exemplary user experience, or a unique product or service, then marketers can begin to spread the wordto target audiences using their own complementary marketing strategy, integrated with the broader vision.
So today we’re going to explore what it means to achieve digital transformation.Wikipedia define it as the third stage of embracing digital technologiesDigital competenceDigital literacyDigital transformationIn a nutshell, digital transformation means digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional
The risks?Not adopting a business-centric view of the web is obvious. I put together a graveyard slide of companies in Australia and globally who have been too slow to react to using digital, and have been overtaken by the competition.Obviously these are retails organisations – often the first sector to get hit by changing business models and digital has disrupted – we’re seeing it across the education sectorDoes anyone have any examples from their own sectors that they can think of?
However, the transformational nature of digital isn’t anything new – Mary McCarthy for one has been talking about it for well over a decade, and this quote here sums it up perfectlyIF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON ANE-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.
It used to be a perfectly viable strategy to let others innovate and take on the risks associated, and for your organisation to still comfortably in the late majority, and even the laggards could have a viable business.However, in the digital age we would argue that this isn’t a viable strategy anymore, and that adoption looks more like this…
And anyone who now thinks they can still hang around in the late majority and laggards section will end up on that graveyard slide.
MNo
You can gain competitive advantage through this understanding in any sector
MNo
Does anyone know what the tricorder is? If you do, please save it until later on in the session
First stumbling block in moving from being digitally strategic, to digitally digitally transformational is customer service.
We all know the traditional marketing model of Awareness, Interest, Desire, funnelling people through to Action.Well, this is no longer sufficient.We need to consider AIDA’s reflection: 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.
X
X
Mothercare brought the customer experience in its contact centres and Web sites up to the level of its stores - while reducing costs.They achieved improvements in costs, revenues, efficiency, customer satisfaction, and delivery of the brand promise through an improved customer experience by consolidating company knowledge into a single database with a natural-language search interface.
'Online Self-Help' - a comprehensive search and answer system built around natural-language processing with an online persona designed for customers.'Ask Mothercare' - sharing the same knowledgebase as the Online Help but with advanced functionality to aid contact centre staff.A custom, lightweight interface, optimized for in-store tills, giving employees instant access to detailed customer information.- Only 3.5% need to escalate queries. (600,000 Qs answered wince launch)- Emails and calls to the Mothercare contact centre have greatly reduced- Ask Carrie contributes to the overall business. Of Mothercare’s UK sales, 18.5% are now delivered through direct channels and overall direct sales increased by 25.5% in 2009.
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.
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.
Bridging the gap between physical and digitalShutl, 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.
Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
So, new money models.people are getting used to online commerce and one of the key outputs of this is the increased level of granularity, and flexibility of payment options – this is what they now expect.
9 different business models
A good example of granular and flexible payment models is something I’m sure most of you are familiar with – buying music.10 years ago the choice was album or single, now you can try before they buy, download albums, cherry pick tracks, or moved to a subscription service like Spotify. These have also tried to become closed eco-system merchants
People who are unwilling to fork out £50 on a game will, once they are absorbed, willingly pay a lot more than that in incremental in-game or in-app payments
The CIM should have been the organisation delivering digital leadership in UK. Our colleague Mark Sherwin was running talks on what digital should mean for businesses as early as 1998 for CIM. However they had a walled garden approach. Their site told people about all the wonderful resources they had but these were only available to members at a premium membership price. E-consultancy came from no where – started less than a decade ago as a free blog, they started offering reports and as the value of these was recognised starting they started to adapt their business model.For only a small amount more than a single report you could become a member.This subscription model, with a permeable pay wall and the ability for customers to slowly build loyalty has resulted in a powerhouse that has trumped CIM in the digital arena – so much so that you can now do a degree with e-consultancy – run by Manchester Met Uni the brand power of e-consultancy means customers would rather purchase as part of e-consultancy than they would from the traditional educational institution
LinkedIn not only tries to upgrade you, it gracefully degrades you to encourage you to stay at a higher level
You can gain competitive advantage through this understanding in any sector
Kickstarter is not just making money that’s granular, it’s sourcing funding as well, and opens up new revenue streams to all sorts of niche products.
We’re working with a similar firm called HubHub (was Sponsorcraft) with the University of Southampton – their twist is crowd funding for the education sector. It can raise funding for everything from a research project, to new facilities, or a student show. Much more engaging and relevant than previous funding approaches asking users to basically stick $30 into a $10 million project fund.
The Community business model can also be adapted for successfully to charities.
The web has made knowledge more accessible, more aggregate-able – making comparisons easier to make and driving down prices, though some of the relationship remains opaque.
Of course, we all know the King of Advertising, but the key to their success is making the advertising more relevant to the content your are after.
Of course, we all know the King of Advertising, but the key to their success is making the advertising more relevant to the content your are after.
And beyond
This is the tricorder. Startrek. Communications. Health diagnosis and healing. Transportation. The iphone does all of this with advanced comms, and apps for anything and everything inc health and lifestyle, and of course hailing a taxi.Most firms now have a smartphne enabled workforce – think of the opportunities this could bring.
Lovely illustration showing the evolution of hand held technologiesWith all these capabilities now existing in the smartphone
You can gain competitive advantage through this understanding in any sector
Environment agency, data being pulled in to show previous flooding damage areas so hotspots can be identified
Lemon card connects with accounting software to automatically manage expenses
Lemon card connects with accounting software to automatically manage expenses
You can gain competitive advantage through this understanding in any sector
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
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
There was an early misconception that the internet of things was a device with an integrated web interface
Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everything
There was an early misconception that the internet of things was a device with an integrated web interface
No one enjoys being woken by an alarm clock
But imagine you awake at the ideal moment in your sleep cycleambient lighting, 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 meetingWell, this will happen because: there can be sleep sensors in your bed, monitoring your sleep cycle which is wirelessly connected to your calendar, which has cross referenced the time you need to get to the office with your GPS against expected traffic patterns. All to determine when to wake you.The sensor has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the day. What’s exciting is that all this technology already exists – its just a case of linking it up
Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everythingGoogle have paid $3.2 B for NestThe market is for remote and learning control of lights, thermostats, door locks, appliances.
Wearable tech is already covering a huge range of devices, and is still in its infancy
Source: North American Technographics Consumer Technology Survey, 2013n=4,657And while Wearable is suffering from a bit of a hype bubbleBut then so did the Internet itself in 1999
Wearable tech already impacting Fitness & Wellness, Health & Medical, Infotainment and Industry and the Military.
You can gain competitive advantage through this understanding in any sector
Big companies need to adapt fast to keep up with a rapidly changing market. British Gas have launched hive to enable remote control of heating, but will this be enough to stave off more sophisticated alternatives?
Technology like this already exists:San Francisco parking spot finder 20,000 sensors1 in 3 drivers in San Fran searching for a parking spot, 60% give upDetectors 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 demandLos Angeles and other cities use Streetline.
Technology like this already exists:San Francisco parking spot finder 20,000 sensors1 in 3 drivers in San Fran searching for a parking spot, 60% give upDetectors 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 demandLos Angeles and other cities use Streetline.
Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
So what does it mean to implement digital transformation?
The digital project must become inherently linked to your business strategy, seen as a key enabling channel
You can gain competitive advantage through this understanding in any sector
And the best ideas are ones which show value for multiple business areas
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