Digital transformaton breakfast_final

Digital Expertise Breakfasts

Digital Transformation

© 2015 Digital Works Group. Proprietary and Confidential

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EXIT

ORGANISE

GROW

MEASURE

EXECUTE

MANAGE

PERFORM

THINK

OPERATE

IMPROVE


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Before we start | Some quick practicalities

Are located … and please go whenever you need to.

Help yourself whenever and to whatever...

We will stop at 9.30am sharp.

A very warm welcome !


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Mature businessesneedingDigital

Transformation

An expert business & IT consultancy

focusing on digital & mobile

Before we start | A quick introduction to DWC…

Passionate about enabling successful digital change and growth for our clients

High Growth Digital businesses mature and

maximise theirExit Valuation.

Rich (Morecroft)Over 25 years leading change, mostly in digital. Leads the DWC Digital Transformation practice.

Sid (Andrew Salmon)Over 20 years digital experience. Leads the DWC High Growth Digital Business practice.

Jarrod (Frye)

Your guides

Over 16 years digital experience. Senior member of the Business Acceleration practice

www.digitalworksconsulting.com


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Before we start | What we are planning to talk about today

Some insight into what’s happening in Digital today.

The effect digital may have on your business.

Digital Transformation Quick Overview. What it is, Benefits, How most companies approach it, and what that results in.

How to make the change, practical methods we and others have seen work (with examples).

Whatever else you would like to cover through questions, comments, and discussion.

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Digital Today – What’s happening1


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What’s happening | An Internet minute in 20141

We think this picture puts what’s happening into perspective. Even more so when you compare to 2013.

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What’s happening | New Market Characteristics


This is leading to market conditions with four main characteristics……

11 Explosive Growth Significant Pace Increasing Complexity Change everywhere

In all Geographical Regions

In all Verticals | Sectors

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What’s happening | Explosive Growth


“Global spending on Big Data will grow at a CAGR of 30% through 2018, reaching a total market size of $114B.” A.T. Kearney forecasts

“ Online payments was $725bn in 2010, forecast to grow to $1800bn by 2015. GAGR 19.9%.“ “ Mobile payments was $15bn in 2010, forecast to grow to $500bn by 2015. GAGR 101.6%.“

“In UK, £91 billion spent online in 2013, a 16% growth since 2012.” IMRG Cap Gemini e-Retail Sales Index

“18.3 million consumers in the U.K. estimated to regularly shop on a mobile device.” Barclays research 2015.

“62% of UK companies will increase their social media investment.” The Econsultancy Budgets survey 2013.

“ The average time spent consuming major media per day for the average UK adult consumer will reach 9 hours, 6 minutes in 2014, up from 8 hours, 35 minutes last year. eMarketer.

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What’s happening | Significant Pace


Devices

Data

Marketplaces

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What’s happening | Increasing Complexity


Changing Buy Cycles

Technology | Vendor Choice

More Usage Points

Technical Collisions & Fundamental Innovation

Fintech Martech

Big Data & Identity

Enhanced InsightGreater RelevancyBetter conversionNew risk models

More automation

Internet of Things | M2M

Devices

Location

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What’s happening | Change Everywhere


Skills

Culture

Decision makers

“The United States alone faces a shortage of 140,000 to 190,000 people with analytical expertise and 1.5 million managers and analysts with the skills to understand and make decisions based on the analysis of big data.” McKinsey.

“By 2017 the CMO will spend more on IT than the CIO”. Gartner

Horizontal OrganisationStructures

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2 Digital Today – The effect on business

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The Effects | Customer Behaviour


This change is leading to fundamental shifts in customer behaviour. Consumers or businesses…

Multi-device

Discerning

“Three years ago the average points of influence in the buy cycle was 5. Today it is 20.” McKinsey.

Customer Behaviour Change | Examples Needed Company Adaptation | Examples

Omni-Channel Business | Adaptive Design

End-to-end, user-centric, Customer Experience

Personalised | Relevant | Insight driven Experiences. Awareness > conversion > upsell>cross sell > advocacy.

Social Media Integration | Trusted Reviews | Mobile /Location point-of-sale smart.

“After waiting 3 seconds, 57% of customers will abandon an online site.” eMarketer.

“People in 2014 now own four digital devices on average.” Nielsen

Impatient

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The Effects | Employees


But it is not just todays digital customer that is adapting, digital is also enabling different employee experiences and needs…

Needed Company Adaptation | ExamplesEmployee Change | Examples

Innovative BYOD policies. But protecting data vulnerabilities.

Investing in flexible working and location practices and systems.

New reward and retention schemes.

Digital and Omni-business savvy senior leadership and talent.

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The Effects | Competitors


And, unfortunately for incumbents, digital disruption and investment is beginning to blowing holes through traditional barriers to entry…

Disruption – Digital DarwinismInvestment – new HGDB Regulation

Has become one of the fastest growing areas for venture capital investment, according to a study released by Accenture. Global investment in financial services technology ventures tripled since 2008, growing from $928 million in 2008 to $2.97 billion last year, the study found. That investment will increase to an estimated $6-8 billion by 2018, the study predicted.

Fintech

Martech

Hold on to your butts: there’s been over $21.8 billion of venture capital and private equity invested in marketing technology companies in 2014. (emarketer)

“ Unfortunately won’t save anyone in the long-term. Even those barriers will adapt and erode.”

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http://www.accenture.com/us-en/pages/index.aspx

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Fundamental customer experience improvements

Massive digital-led growth

What is clear is that the pressure to adapt is just growing. So the answer to when to change is NOW.

The Effects | Overall


Opportunities (more on these soon) Challenges

These big changes are leading to big opportunities, but also big challenges…

The degree and pace of change

Enhancements to operational & GTM efficiency

Innovate new business models

Positively impacting the top and bottom-lines.

Where to change and in what order

How to change.

Avoiding dead ends. Future proofing the business. Controlling the change. While hitting short-term targets.

And because of the challenges, an opportunity right now to move faster than the competition.

Knowledge on what to change

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The Effects | Overall


….it can’t be stopped.And we all know what happened to King Canute….

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Digital Transformation. - Quick Overview.

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Digital Transformation | What is it ?


Digital Transformation is this. Vital business transformation needed because of technical change and resultant market/ behavioural shifts. Simple.

Digital/Technical Change

Market /Behavioural

Change

Company Change

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Digital Transformation | The target State


A digitally transformed business is one in the stage 3 end state.

Enabling new types of CREATIVITY AND

INNOVATION where Digital is at your business’s heart, not

just enhancing it

STAGE 3: DIGITAL

TRANSFORMATION

• Centralised Web Site

• Data Analytics

• Reporting

• Aid’s Decision

Making

STAGE 1: DIGITAL ADOPTION

• Digital Single Customer View

• CRM Driven Business• Data -> Info and

Knowledge• Data leads decisions

STAGE 2: DIGITAL BUSINESS

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Digital Transformation | What can it do for me?


It can bring massive benefits to a company who fully embraces it. Here are some examples of where. Transforming Customer Experience

Transforming Operational Processes

Transforming Business Models

Customer Understanding (insight)

Top-line Growth (Go-to-Market)

Customer Touch-Points (propositions/ e-care)

Process Digitisation (operations)

Worker Enablement (operations, organisation)

Performance Management (organisation)

Digitally Modified Business (organisation/suppliers)

New Digital Businesses (innovation)

Digital Globalisation (go-to-market/organisation)

360 degree understanding of market, company and customers.

End-to-end, fully joined up , solutions for any device the customer wishes to engage with. Omni-channel.

Use of new technology in ecommerce to augment in-person sales conversations aiding conversion.

Automation. E-Care / IT platforms / HR / Suppliers etc.

BYOD or able to conduct work from home environments. Improved collaboration and expertise via technology solutions

Deeper insights into products, regions and customers, allowing decisions to be made on real data.

Finding ways to augment physical with digital offerings ; using digital to share content across organizational silos.

Introducing digital solutions that complement traditional approaches.

Digital technology coupled with integrated information is allowing businesses to gain global synergies.

MITSloane model

The most digitally mature companies are 26 Percent More Profitable than their industry competitors. Cap Gemini

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Digital Transformation | How do most companies approach it?

We call this the micro-approach to digital transformation.


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Business Model

Management

IT/Technology

Workflow/Governance/Process

Product

Strategy & Insight

Customer Service and Sales

HR/People

Channels/ Marketing

Data

Data

Digitising or Transforming a part or parts of their organisation, one isolated piece at a time.

Example 1

Example 2

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Digital Transformation | Which often results in…


• Large FMCG company. Many brands, many countries.

• Marketing-led identification of the need to be more ‘digital’. Multi-million annual spend.

• Federated approach to digital change. No end vision, limited senior sponsors, no formal holistic change program.

• Prudent estimation is their digital marketing investment working half as hard as it should be.

• Poor, disjointed customer experience. Variable by brand and country. Not Omni-channel.

• Poor efficiencies and reaction times to market, caused by lack of automation through end-to-end digital Martech platform or commonality of digital knowledge.

Example

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Digital Transformation.-Making the change.3

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Digital Transformatio

n

IT/Technology

Workflow/Governance

Product

Customer Services and Sales

HR/People

Channels/ Marketing LeadershipClear Vision

Focus on Customer Experience

Innovative and Brave

Digital Transformation | How should you do it?

We call this the MACRO-approach to digital transformation.

Strategy & InsightFlexible

Data DrivenReactive

Blah

Blah

Blah Blah

Blah

Blah


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Digital Transformation Change | The best approach


To get the full benefits. A big bang vision, delivered in an agile / incremental / planned manner. Led by the senior management team.

Companies that succeed at digital tend to have leaders who share their vision and define a road map, create cross-organizational authority for adoption and reward employees for working towards it.

Think & Plan Execution Sponsorship

MITSloane

Roadmap view

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Digital Transformation Change | What is the best approach?


Companies who have used this vision lead, top level governance method and have had success include…

Free broadband Emerging business and mobile money

£1bn invested - ongoing

£450m invested – ongoing

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Digital Transformation Change | Case Study


Launch of Free broadband

• A clear Vision defined by PLC Board

• Clear priority established across the business

• Proposition/strategy, goals, budget, timeline defined at onset – regular reporting, communications

• Dedicated Team established to launch the business

• New channels• New network• New technology• New Contact Centre

• Effective stakeholder management – taking everyone along the journey

• Flexibility– agility was key to launching so fast and adapting to the huge demand

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Digital Transformation Change | Proposition & Product Innovation Methods


Proven MethodologySuccess Story

• Requirement: Build new business lines for Ooredoo Qatar (Telco) without impacting existing business.

• Approach: Established an “incubation” team to research, strategise, scope and pilot new business ventures of all types.

• Pilots launched in financial services, digital advertising, devices and location based services.

• Financial services and devices now integrated, successful and growing.

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Anything we’ve not covered ?

30 © 2015 Digital Works Group. Proprietary and

Confidential

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Digital Works ConsultingEnabling your success. In Digital.


Confidential

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Mature businessesneeding

Digital Transformation

High Growth Digital businesses mature and

maximise theirExit Valuation.

Who We Are | What We Can Help With


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An expert business & IT consultancy

focusing on digital & mobile

Passionate about enabling successful digital change and growth for our clients

Helping Businesses In these Sectors | Get These Benefits

Financial Services & Fintech

Retail & Ecommerce

Entertainment & Media

Telecoms & Mobile

FMCG & Martech

Optimised digital

propositions and

monetisationOptimised eCare & business

operations

Benefiting the top and bottom lines. Regaining advantage. Maximising valuation

through capability and profit growth

Compelling and successful

digital innovation

Clear and appropriate

business strategy

Optimised Omni-channel

customer journeys

Critical next-gen digital platform &

data capabilities

A digitally ready

organisation

Strong brand, channels, and

markets

Energised for growth and expansion


Confidential

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Which we achieve through our difference

Deep Digital Expertise.

End-to-End Knowledge.

Proven Methods. For Digital.

Extensive Networks & Partners.

Great Spirit.

A team of 20 plus. Each with at least 10 years digital experience. Bringing multi-skilled knowledge.

Think | Execute | Grow. Strategy & Management. Product & Technology. Project Management. eCare. Business Acceleration.

Strategy development. Digital Audit. M&A planning. Project turnaround. New product innovation. Digital data audit. New territory expansion. Multi-channel optimisation. + many more…

Trusted capability partners. Able to open doors fast.

Passionate about your success in digital. Agile, fluid, trusted.


Confidential

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Which all these clients have benefited from

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“Created a strategic vision and a new business unit within Ooredoo, managed a very complex, cross business initiative in rapid timescales and in a culturally diverse environment“ Director, Ooredoo

“ Clear expertise in strategy development, knowledge of the payments industry, flexible/inclusive approach, all delivered on time and budget. “ CEO, Kalixa Payments Group

“ With just a top-level project brief, DWC identified the right problems to solve, designed implementable solutions and managed virtual teams to deliver on time and to budget.” Global Product Director, eBay


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Delivered by these digital experts

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Strategy & Management

Product & Technology

Project Management

Business Acceleration

eCare

Richard Morecroft

Andrew ‘Sid’ Salmon

Liam Carroll

Jason Binks

Suki Sandhu

Simon ClarkeSarah Hide

Steve Crawshaw

Martin ProutRob Connell

Chris Simmons

Anestis Karavaggelis

Elise Korolev Jarrod Frye

Sophie Fraser Karen Young

Steve Brady

Sarah Pacey Eram Osman


Rob Townsend

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Please contact us for more information

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[email protected]

m

+44 7714 689796www.linkedin.com/in/richardmorecroft

Richard MorecroftSenior Partner | Digital Transformation

[email protected]

+44 (0)7801 439011www.linkedin.com/in/andrewsalmon

Andrew ‘Sid’ SalmonSenior Partner | High Growth Digital


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