A presentation on the WHY-WHAT-WHO-HOW of building the digital capability of the company.
This was a Leadership & Management talk given to the Kyoto University Asian Business Leaders who visited Ateneo de Manila University.
13. 13!
13
First, let’s define the Big Word
A capability is the ability to perform or achieve certain actions or
outcomes through a set of controllable and measurable faculties,
features, functions, processes, or services.
noun: capability
power or ability.
synonyms: ability, capacity, power, potential; More
a·ware
adjective: aware
having knowledge or perception of a situation or fact.
synonyms: mindful of, informed about, familiar with,
14. Why-What-How to Build Digital Capability
HOW
TO
STRENGTHEN
YOUR
COMPANY’S
DIGITAL
CAPABILITY
1WHY
2WHAT
3HOW
17. Why : 2. Competitive Advantage
The world’s largest taxi
company, owns no vehicles.
The world’s most popular
media owner, creates no
content.
The world’s largest
accomodation provider,
owns no real estate.
19. Why : 4. Simplify to Get More for Less
Removing
the
Non-‐Value
aspects
of
Everyday
20. Why
Companies
are
Building
Digital
CapabiliGes?
Example #1 Procter & Gamble
http://www.mckinsey.com/insights/consumer_and_retail/inside_p_and_ampgs_digital_revolution
Business Objective
To make P&G the most technologically-enabled business
in the world. (P&G Digital Revolution)
Business Goals
1. Better Innovation
2. Higher Productivity
3. Lower Costs
4. Promise of Faster Growth
Size of Digital Team: More than 100 Globally under the IT
team of its Shared Services Business Unit with a Digital skills
integrated across functions and to every employee
21. Example #2 AVON
2013 Annual Report of AVON as shared in its Global website. www.avon.com
Business Focus (1 out of 3)
Expand our Brand and Channel to reach New Customers and Drive
Profitable Growth
Business Goals
1. Reach New Consumers
2. Improved Earnings Opportunity of Representatives
3. Drive Profitable Growth
Size of Digital Team: Less than 50 Globally with
local Digital Team under Marketing or PR/Communication
- Basic: 2 FTE’s – Marketing/Media & PR/Social Media
- Advance: 10-20 FTE’s – w/ eCommerce and Apps/Tools
* All Production is outsourced
Why
Companies
are
Building
Digital
CapabiliGes?
24. What : 2. eCommerce
1. E-Store
2. Order
Placement
3.
Payment
4. Order
Fulfilment
& Delivery
Part of Digital
Marketing
E-Brochure and
Website to Social
Media Activation
Digital Apps &
Tools enables the
Reps to get Orders
from Customers
e-Commerce enables the
business to receive
payment from Reps or
Customers
30. How : 2. Build an Innovative Culture
Play 2015 TrendsVideo
31. How : 3. Digital Champion per Function
Supply Chain – Real Time Inventory System to reduce Product
Storage cost;Avoid Over-Supply and Out-of-Stock
HR – Equip employees with Digital skills and tools to make
decision making faster, operate with agility & accuracy
Finance – Automate expense report generation with connection
of Corporate Credit Cards transactions to Concur (Online
financial system)
Marketing – Engaging consumers and customers who are online
then understanding how Digital can make their life easier and more
convenient
35. President
Marketing IT Digital
Media /
Marketing
Paid /
Campaigns
Owned /
Website
Social
Media / PR
CRM
Earned
Media
Sales /
eCommerce
Owned
3rd party
Apps &
Tools
Online
Offline
HR Sales
Who will build the Digital Capability?
36. 36
Outsource non-Core Business Capabilities
Business
Integration
Search
Marketing
Digital
Performance
Optimizer
Social
Infusion
Trading &
Negotiations
Shopper
Marketing
Digital
Commerce
POE
Optimization