Digital DNA - Concept & Definition

São Paulo & London May 2015

Fabricio Dore

Digital DNA

Concept & Definiton

10% of the world’s photos

were taken in the last 45 days.

Source: Future of the Latam Banking Experience, Brett King, 2014.

79 million #selfie on Instagram.

(Even the Pope). Source: http://www.wired.com/2014/02/explore-world-selfies-new-data-visualization-tool/ (2014)

76% of all mobile phones in Brazil

are smartphones. Source: IDC (2014)

58% of CEOs still think Digital is a major challenge.

Fonte: http://www.forbes.com/sites/gilpress/2015/02/27/new-pwc-survey-ceos-embrace-digital-transformation/ (2015)

A short bio.

UFRJ, Umeå, IDEO, Itaú, Huge.

Foto no hospital

Foto no hospital

Foto da ford

Agenda. 1 Analog vs Digital Companies. 2 Digital DNA. 3 Transforming a Bank.

Analog vs Digital Companies.

Analog

IKEA Retail

HSBC Financial Services

Hertz Mobility

P&G Consumer Products

Fonte: http://www.retailwire.com/discussion/17883/does-p-and-g-need-retailers-anymore

$19.22 ($18.26) Amazon

$19.22 ($18.26) Target

$19.99 P&G eStore

Sainsburys Supermarket

“The grocery retailers are feeling the heat from British consumers switching

from a weekly shop in a supermarket to smaller shopping trips across

supermarkets, convenience stores and online.”

Source: http://www.telegraph.co.uk/finance/newsbysector/epic/sbry/11585124/Sainsburys-falls-to-first-loss-for-a-decade.html

Natura, Abril, Itaú, Folha de São Paulo, NYT, New Jersey Transit, BMW, Novartis, Bayer CropScience, Broadway, Walmart, Staples…

Companies facing the challenge.

Retail, Financial Services, Mobility, Consumer Products, Supermarket, Hospitality, Pharma…

Industries affected.

Digital

44

Characteristics of a digital company.

Technology as the foundation of UX and Business, Customer-centered, Real Time, Transparent, Desintermediation, Marketplace, Remove Friction, Rethink the Entire Experience, Mobile First.

Digital DNA.

It’s much more than having an app.

It’s much more than having a marketing campaign about Digital.

47

It’s about technology: Data, Back-end, Front-end.

48

It’s about the connection of strategy and execution.

49

Digital DNA is the combination of organizational, human and

technological factors that make-up a Digital Company.

51

5 Elements of the Digital DNA

Organizational Design

1 People

Management Leadership Technology

Platform User

Experience

5432

Organizational Design Distributed decision making and

responsibilities in flexible org structures.

1 1

“Research shows that every time the size of a city doubles, innovation or productivity per resident increases by 15 percent. But when companies get bigger, innovation or productivity per employee generally goes down. So we're trying to figure out how to structure Zappos more like a city, and less like a bureaucratic corporation. In a city, people and businesses are self-organizing. We're trying to do the same thing by switching from a normal hierarchical structure to a system called Holacracy, which enables employees to act more like entrepreneurs and self-direct their work instead of reporting to a manager who tells them what to do.” – Tony Hsieh, CEO da Zappos

Fonte: http://www.zapposinsights.com/about/holacracy

Holacracy

Lean Startup (as team building)

“Within companies the power has shifted as well. Individuals and small teams can have a massive impact.”

- Eric Schmidt, ex-CEO Google

People Management Recruiting, evaluation, development

and retention of Smart Creatives*.

1 2

“They are intellectually versatile, typically combining technical depth

with business savvy and creative flair.”

How Google Works: Smart Creatives.

Leadership Distributed, based on inspiration,

influence and mentorship.

1 3

Fonte: https://hbr.org/2014/01/ideos-culture-of-helping/ar/1

HBR: IDEO’s culture of helping.

Technology Platform Is the foundation to deliver and

create value. Technology is strategy.

1 4

User Experience The power is on the customer’s

hands.

1 5

Transparent: Audible

Control: AO.com

Friction-less: 99Taxis

Smart: Nest

Simple: Moven

Transforming a bank.

Biggest transformation in financial services in the last 4000 years.

32% bank’s revenues will be at risk by 2020.

Source: Accenture (2014)

Millennials are questioning the role of banks.

71% Prefer to go to

the dentist instead of their

banks.

33% Believe they don’t need a

bank for anything.

73% Would prefer to

bank with Google,

Amazon, etc.

Source: http://www.millennialdisruptionindex.com/ (2014)

Customers are already digital.

Source: Itaú (2014)

74 70 62 58 57

47 42

26 30 38 42 43

53 58

2008 2009 2010 2011 2012 2013 2014

% of Volume of Transactions at Itaú Unibanco (2008-2014):

Canais Tradicionais (TCX, ATM, Telefone) Canais Remotos (Internet e Mobile)

Where were you this day?

Customers know what to use social media for.

120%

Source: Itaú (2014)

Increase in customer service via social media.

2011-2015 Head of Digital Innovation

24-37 dedicated team. +15 projects in tandem encompassing

from strategy to delivery.

96k FTEs

6,5mil FTEs in IT

+20bi Net Income (2015, BRL)

Digital Channels Digital Bank

Site

Customer-centered.

Mobile first.

Multiple digital touchpoints.

Transforming from inside-out.

Each and every business is now

Digital.

Even if they don’t know or don’t want to accept it.

Q&A

Obrigado!

@superfab

fabricio.dore@gmail.com

fabriciodore