SAPhybris: John Fisher & Brian Diehl

10 Steps to B2B Digital Transformation BRIAN DIEHL B2B Industry Principal JOHN FISHER Global Head of Industry Marketing

Game Plan B2B Conference October 2015

Introductions

Former Director, Innovation & Channel Technology at Bobcat/Doosan Ran European IT organization for 5 years Selected and implemented hybris in 45+ countries. Developed and Managed Commercial Technology Strategy & Roadmap for 3 years

Former VP, Ecommerce at Aramark Implemented: -  hybris (Ecommerce) -  Salesforce.com (CRM) -  Manticore (Marketing Automation) Oversaw digital transformation for 5 years

BRIAN DIEHL, B2B INDUSTRY PRINCIPAL

JOHN FISHER, HEAD OF INDUSTRY MARKETING

Agenda: 10 Steps to Digital Transformation

1.  Take Inventory- Look at the big Picture 2.  Vision & Goals 3.  Executive Alignment 4.  Justification 5.  Requirements Gathering

ROI Commerce Calculator Exercise

6.  Partner & Vendor Selection 7.  Planning & Team 8.  Culture & Change 9.  Launch & Support 10.  Iterate, Measure & Monitor

Q&A + Discussion

Ground Rules

•  We will present the 10 steps through our personal lenses - not a textbook of best practices

•  Not every step will receive that same amount of “love”

•  Sometimes the steps blur – so we may not go through 10 distinct steps

•  It’s meant to be interactive…please ask questions along the way

•  Speaking of interactivity…

KEEP YOUR PHONES ON! You will be participating in Live Online Polls.

To join, please text once: gameplan to 22333

Getting a Base Line

1. Take Inventory 2. Vision & Goals

IS YOUR IT YOUR ANCHOR OR YOUR SAIL?

?#!

Understand Your Current Reality

SAMPLE CHECKLIST: •  Leadership Commitment & Sense of Urgency

•  Status of Funding

•  IT System Landscape

•  Clear Roles & Responsibilities

•  Vision

•  Business Case

•  Rogue Business Units

•  Culture

•  Leadership Skills

John & Brian’s Perspective

•  Leadership Commitment & Sense of Urgency

•  Status of Funding

•  IT System Landscape

•  Roles & Responsibilities

•  Vision

•  Business Case

•  Rogue Business Units

•  Culture

•  Leadership Skills

Take-away:

1.  ROI trumps vision

2.  Don’t wait—it will never be perfect

Where are you in your digital project?

A.  Phase 1: Evaluation & Justification

B.  Phase 2: Requirements Gathering, Writing RFP

C.  Phase 3: Project Planning, Vendor Selection

D.  Phase 4: Build & Execution

E.  Phase 5: Post Launch, Optimization

To Join-Text Once: GAMEPLAN (one word) TO 22333

Text a Letter (A, B, C, D or E) to 22333:

Today in Room Forrester Survey

Why is “EVERY” Business Transforming? Because…Journey

12

The largest taxi company… does not own a taxi

The largest accommodation company… does not have any rooms

The largest media company… does not create any content

The most valuable retailer… does not have any stores

Corporate Objectives Reinforce These Trends

WORLD CLASS CUSTOMER EXPERIENCE DIGITAL ENABLEMENT & OPERATIONAL EFFICIENCY GROWTH & AGILITY

STRATEGIC PRIORITIES

§  Personalized view of Product Content & Pricing 24/7 §  Support customers across all Digital Channels §  Deliver self-service tools better serving customers & reducing costs §  Enforce Policy & Formalize Best Practices §  Seamless Experience between Channels §  Automate workflows and End-to-End Processes §  Enhance collaboration and management of partner relationships

§  Establish new solution & service-based revenue models §  Empower dealers and channel partners with effective sales tools §  Leverage Big Data and Predictive Capabilities

KEY IMPERATIVES

What’s the LEAST Digitally Visionary Travel Sector?

A.  Airlines

B.  Trains

C.  Cruise Ship Companies

D.  Major Hotel Chains


To Join-Text Once: GAMEPLAN TO 22333

And the Winner is… Play video

If Amtrak can digitally transform…so can you


Take-away:

1   Don’t underestimate Emotion

2   A clear vision unifies, communicates & excites

3. Executive Alignment 4. Justification

Myth: LET A THOUSAND FLOWERS

BLOOM; BOTTOM-UP ACTIVITY IS THE RIGHT WAY TO CHANGE.

Reality: TRANSFORMATION MUST BE LED FROM THE TOP.

CLEAR LEADERSHIP CLEAR DIRECTION

To move forward, leaders must create a vision, a sense of collective promise that overrides the fear of the unknown (with an ROI to match).

“Gut Check” 3 Key Perspectives Side-by-side

Executive Stakeholders

IT Stakeholders

LOB Stakeholders

Respond To Business Disruptions

Business Direction (operations and strategy)

Desired Business Outcomes

Future State Business Anchor Model

Business Goals

Business Disruptions

Sr. Executives Concerns and Oppertunities

LEVERAGING DIGITAL PLATFORMS TO: •  TRANSFORM THE SELLING PROCESS •  IMPROVE QUALITY + EFFICIENCY + COST •  DRIVE CHANNEL COLLABORATION •  DELIVER WORLD CLASS CUSTOMER ENGAGEMENT •  INNOVATE THE BUSINESS MODEL

Focused On Real Results

There Must Be A Business Outcome

Does it save time? Is it profitable / Does it make money?

Does it differentiate / Solve a market problem?

It Must Improve How You Compete

Product Price Service Quality Execution

Why is YOUR ORGANIZATION transforming? (Business Drivers)

A.  Cost Savings/Efficiencies

B.  Match Competitors

C.  Higher Customer Lifetime Value

D.  Customers Expectations

E.  Consistent Experience Across Channels


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Cost Savings 60%

Match Competitors 55%

Lifetime Value 64%

Customer Expectations 74%

Consistent Experience 65%

Primary Business Drivers?

Today in Room 2015 Forrester Survey


Take-away:

1   Manage ALL stakeholders

2   Understand what your business values most

5. Requirements Gathering Online ROI Calculator 6. Partner & Vendor Selection

Was that digital transformation?

… or did we simply digitize?

Companies are struggling to find their patterns because….

… we simply copied the analog world

§ Processes are ad hoc

§ Systems are fragmented

§ Data creates chaos § Expertise networks are disconnected

DIGITAL TRANSFORMATION

IS NOT AN ONLINE STORE

VERY EXPENSIVE OLD PROCESSES

New Technology Old Processes

+

You Need Input & Feedback:

Interview customers Interview Internal stakeholders

Review the competition

§ RFP § Vendor Evaluation

§ Internal Justification

1.  Customers: Critical component. It cannot be overstated that customers

need to be at the center every requirements gathering exercise.

2.  Internal approvers/ VETO Power: If you’ll need they’re approval later, you need their requirements now

3.  Subject matter experts (SMEs): Make sure that someone on the team is representing finance, HR, operations, customer service, inside sales, field sales, etc.

You Need Input & Feedback:

Inside- out, Outside-in

The Law Of Average

WHO ME?

Managing Expectations

56

Br eaking 35

Ba d

JUST BECAUSE YOU CAN,

DOESN’T MEAN YOU SHOULD

Focus On The Future

“I skate to where the puck is going to be, not where it has been.”

– Wayne Gretzky

By The Way…

YOUR ROI MIGHT BE “WRONG”,

BUT…

COMMERCE ROI CALCULATOR

Please use Chrome: www.hybris.com/roi-calc

6. Partner & Vendor Selection

Businesses are Individuals, too

Get The “A” Team

§  Take experience over technical knowledge

§  Results vs. Procedural Excellence

§  Understand why you need a Partner §  Strategy §  Implementation §  Support

Not Asking Questions that can be easily compared

Leaving the RFP process to the procurement dept

Inviting too many vendors to bid

Ignoring the people aspects

Not having a budget before issuing an RFP

Not involving all stakeholders

Trying to be too impartial

Taking the short view

Not doing sufficient due diligence

Wording the questions in a way that enables the vendor to “spin” the truth

RFP Mistakes


Take-away:

1  Requirements: Less is more

2  Partners: The “Waterloo Moment”

7. Planning & Team 8. Culture & Change

Understand Your Strengths & Weaknesses:

•  Process & Policy maturity

•  Change Management

•  Team skillset

•  Standards & Data Quality

•  Executive Ownership

•  Data & Functional Ownership

Planning: Get Real & Be Honest

Pockets of Awesome

“TAKE ME TO

YOUR LEADER” (x2)

“Culture eats strategy for Breakfast” – Peter Drucker

“Customers are already satisfied with our

service”

“Customers like talking to us”

“It’s a system that’s designed to

eliminate jobs”

Employee Resistance

“Customers won’t go online to order”

“I don’t know how to use the website/

online tools”

“I’m afraid that customers won’t need

me anymore”

“I fear I’ll lose the relationship with my

customers”

“I’m afraid this system will

eliminate my job”

So What’s The Problem?

FEAR!

Change Management

“We have met the enemy, and they are us.”

Supply Chain’s KPI of Fewer SKUs

Supply Chain department chooses which vendors you can use

They are very powerful

They want fewer product SKUs - only allowed “preferred” vendors to have pics on website

98% Correct Is 100% Wrong

Adding Images: 10% increase in AOV;

20% reduction in customer service calls

Launch: Missing 50% of images

Low AOV; huge # of complaints

Do you have a “REAL” Change Management Plan?

A.  Yes

B.  Partial

C.  No

D.  Don’t Know / Not Sure

Text a Letter (A, B, C or D) to 22333:



Take-away:

1  Culture, Culture, Culture

2  Change Management

9. Launch & Support 10. Iterate, Measure & Monitor

Launch And Learn

WELL DONE IS BETTER THAN WELL SAID.

– Benjamin Franklin

Approaching Launch

CONDUCT SHOWCASES

CELEBRATE BUGS

DEDICATED “DEFECT TAKEDOWN” SPRINTS

JUST IN TIME TRAINING

MISSION ACCOMPLISHED

(Go Live is just the beginning)

Stablize, Stablize, Stabilize

Never too early for Phase 2

Distinguish Support from Phase 2 Development

Support: Insource vs. Outsource

By The Way…

YOU WILL GET BIGGER

BEFORE YOU GET SMALLER

What are Your Top Implementation Barriers? (vote>1)

A.  Data (sharing, cleansing, etc.)

B.  Channel Conflict

C.  Lack of measurements / incentives

D.  Back-end integrations

E.  Limited by Partners / Customers

F.  Staff Skillset



Today in Room 2014 Forrester Survey

Channel 36%

Lack Meas. 33% Back-end Int. 44%

Partners/Custs 40%

Staff Skills 32%

Top Implementation Barriers? (vote>1)

Data 42%

–Winston Churchill

TO IMPROVE IS TO CHANGE, TO BE PERFECT IS TO CHANGE OFTEN

Software

SAPhybris: John Fisher & Brian Diehl