DIGITAL TRANSFORMATION ROUNDTABLE.1 8 / / O C T O B E R / / 2 0 1 6

INTRODUCTIONS

ANDREA BURROWSGLOBAL MANAGING DIRECTORPRECEDENT

CORY HUGHESCLIENT SERVICES DIRECTORPRECEDENT

ALLEN REIDDIRECTOR OF CLIENT PROJECTSHART SQUARE

AGENDA

AGENDA

What if we don’t change at all…?

Defining the big hairy audacious goal

Tackling the biggest blockers to digital transformation

Getting board room buy in

The first small steps towards transformation

QUESTIONS FOR TODAY

What should a strategy for success look like?

Which organisations are getting it right?

Why do businesses fail?

And what are the blockers to transformation?

How do you get boardroom buy in?

What do you need to know before you start?

WHAT IF WE DON’T CHANGE AT ALL…?

“One third of UK business leaders are concerned about a significant new competitor from the technology sector.” PWC Annual Global CEO Survey

Businesses moderately or massively disrupted by digital in the next 12 months. Russell Reynolds Survey (Aug 2015)

THE BLUE OCEAN STRATEGY

Refers to the creation by a company of a new, uncontested market space

that makes competitors irrelevant and that creates new consumer value often

while decreasing costs.

WHICH ORGANISATIONS ARE GETTING IT RIGHT?

• The Airbnb for parking spaces

• In August 2014, JustPark announced a partnership with BMW, whose cars will have a JustPark dashboard app built in

• With investment from BMW and Index Ventures, JustPark closed a record-breaking £3.5m equity crowdfunding round in 2015

• A not-for-profit organisation connecting blind and sighted people all over the world via live video connection

• Allows sighted people to participate in casual ‘micro-volunteering’

• Designed to leverage the accessibility features available on Apple’s iPhone, including the use of the VoiceOver feature

• Not originally founded as an online payments company. Initially envisioned as a cryptography company, then later as a means of transmitting money via PDAs.

• Ultimately became the default online payments system of millions

• Founded in 1998, able to change course by 2002, leading to purchase by eBay for $1.5 billion

Audiences are looking for an experience that is:

AuthenticConvenientRelevant

Look beyond your industry for examples of:

Self identification: British Heart FoundationLife stage navigation: HSBC Need based and mobile first: Adobe Data visualisation: Nutmeg Talking to different users: Royal Mail

WHAT’S YOUR B.H.A.G?

BH A G

BIGHAIRY AUDACIOUS GOAL

“Our vision is a world where everyone everywhere hassafe water, sanitation and hygiene.”

“Our vision is a world in which every child attains the right to survival, protection, development and participation.”

TACKLING THE BLOCKERS

Tackling the biggest blockers to digital transformation:

Outdated technologyLack of timeNot enough budgetIneffective structure and processLack of internal buy inUnclear purposePoor quality of management Weak culture

BEFORE TAKING THAT FIRST SMALL STEP

Before taking that first small step, you need to understand:

Where is change occurring?Which customer journeys matter?Are teams collaborating?Are budgets tied to process?How are you challenging ideas?

YOUR NEXT SMALL STEP

9 SMALL STEPS

You can push digital change forwards in lots of ways at different times.

We’ve outlined nine small project ideas to give you food for thought.

9 SMALL STEPS1. Setting out a broad vision of what the digital future looks like, so that you

have a shared aim of your direction of travel.

2. Developing a process to champion the customer throughout the business,

so that you can have a mechanism for involving the wider business in digital

transformation.

3. Scanning the digital landscape horizon, so that you can have a common

understanding of the developing digital terrain when planning your future

direction.

9 SMALL STEPS4. How you can exploit your content and think more like a publisher, so that

you can move beyond product information and into engaging with, selling to

and servicing your customers.

5. Revise your analytics to answer business questions, so that you can

realign your analytics to support senior decision making.

6. Show a clear snapshot of your digital efforts: resources, priorities,

dependencies, costs - enhancing your sense of control and shedding light

on where to focus further investment.

9 SMALL STEPS7. Give senior managers an accurate view of digital performance, so you can

demonstrate that digital is an investment, not a cost.

8. Hold an executive seminar with digital thought leaders supplied by

Precedent and its partners, to equalise knowledge and allow executives to

probe experts.

9. Articulate and test what a digitally transformed service would look like:

costs, processes, people, customer experience, governance, risks,

technology - the full suite of what will be needed.

Future State

External FocusInternal Focus

Current State

1. Future Digital Vision

3. Digital Landscape2. Championing digital

4. Exploiting yourContent

5. Putting Businessbefore Analytics

6. Snapshot of yourdigital effort

7. Corporate digital

performance

8. ExecutiveSeminar

9. Digital targetoperating model

THE IMPORTANCEOF CULTURE

INFLUENCE YOUR CULTURE• Use live data rather than historic information. Turn the data into insight.

Evidence led decisions. Remove bias.

• Build, measure, learn

• Define KPIs that are relevant for today’s business.

• Build a relevant board – one that is digitally fluent and has people at its heart.

(Russell Reynolds survey suggested 4% of Global 500 businesses have a

board that’s digitally ready.)

• Digital transformation is everybody’s job, every day.

“When you’re finished changing, you’re finished.” Benjamin Franklin