Upload
elevar
View
322
Download
2
Tags:
Embed Size (px)
DESCRIPTION
What do large enterprises need to know in the digital age? How should they develop a 'digital strategy'? A primer on what it means to be 'digital' today.
Citation preview
Cracking the Code: A Framework for Digital Strategy
How Large Enterprises Can Successfully ‘Digitize’
SILICON VALLEY, CAJULY 2014 www.elevarco.com
Elevar – All Rights Reserved www.elevarco.com 2
About Elevar
Digital Strategy Point of View
Table of Contents
Elevar – All Rights Reserved www.elevarco.com
Today, 3 out of 4 enterprises claim to have a digital vision, but their executivesstruggle to define and execute a clear digital strategy
3
Only 17-21% of CEOs in large organizationshave a clear digital strategy vision
Yes No Maybe
Just 15% of corporate executives believethey can deliver a digital strategy
Yes No
17-21% 15%
Although 74% of corporate executives claim to have a digital strategy in their organizations…
Sources: David Sealey, Digital Consultant; Forrester – The State of Digital 2014
Elevar – All Rights Reserved www.elevarco.com
A digital strategy is about leveraging technology to achieve two goals: breakingdown siloes internally, and connecting with individual stakeholders externally
4
FrontOffice
MiddleOffice
BackOffice
ExecutiveOffice
SharedServices
FrontOffice
BackOffice
MiddleOffice
SharedServices
ExecutiveOffice
Internal Capabilities External Capabilities
Siloed Digital Capabilities Unified Digital Capabilities Digital Delivery Tools Stakeholders
Digital Strategy: A Uniform Definition
Supplier / Partner
Customer
A unified, cross-functional approach leveraging internal and external digital assets to enhance customer andbusiness benefits
Connect departments and improve their relationships with newtechnology
Improve communication and data transfer across lines of business
Enhance user experience to drive new internal revenue streamsand cost savings
InternalDigital
Strategy
Offer more service tools to engage all typesof users (i.e., suppliers, customers, etc.)
Utilize analytics to increase personalization
Stay ahead of the curve on emerginginnovation trends (i.e., mobile, social media)
ExternalDigital
Strategy
A B
Data Exchange
Siloed Digital Capabilities
Elevar – All Rights Reserved www.elevarco.com
A digital strategy is distinct from other enterprise strategies – it’s about connectinginternal and external digital capabilities to drive individualized experiences
5
ITStrategy
DigitalStrategy
Internal technology capabilities Some cross-functionality, but mostly focused
on discrete internal business units Greater focus on internal operations Less focus on engaging users
OnlineStrategy
ITStrategy
DigitalStrategy
BusinessStrategy
OnlineStrategy
• Transcends the borders and barriers amongdepartments to unify business, IT and onlinestrategies into a set of digital initiatives
• Focuses on the use of technology to accomplish andimprove upon user (external) and business (internal)objectives
The Role ofDigital
Strategy
Where does a digital strategy fit in? How does a digital strategy compare?
BusinessStrategy
Limited to deployment of online assets Discrete function with minimum cross-
functionality Heavy focus on user engagement
Internal and external business capabilities Some cross-functionality, but generally
focused on individual departments Generally divided from IT, online, and digital
strategies
Internal and external digital capabilities Holistic approach to unify siloed
technological initiatives in the enterprise Collect and analyze user information to drive
individualized experiences for stakeholders
Elevar – All Rights Reserved www.elevarco.com
There are three phases across the digital strategy continuum – to date,different industries have evolved to different phases of maturity
6
Digital Strategy EvolutionAugment Breakthrough Disrupt
Leve
l
Health Insurance
TechnologyFirms
A unified digital strategy vision is nearlynon-existent, but there are some unique
digital capability offerings
There is a unified digital strategy, centeredaround a single platform with compelling
digital asset offerings
New and emergingplatforms drive the
business model
Banks
HealthInsurance Emerging mobile apps, with
some simplistic functionality Redesigned web interface Basic tracking of customer
interactions
Inte
rnal
Exte
rnal
Exam
ple
Indu
strie
s
Awareness of need for BigData analytics
Some staff aligned topredictive analytics, butminimal formalizeddepartments Banks &
Airlines Investment in “internetof things” – i.e., kiosks
“All-in-one” mobile app Investments in
innovation labs andstartups
Use of internal Big Data,business intelligenceand advanced analyticslines of business
TechFirms
A
B
Inte
rnal
Exte
rnal
A
B Identifying use cases for
innovative newplatforms (i.e., GoogleGlass, iWatch)
World-class useranalytics
Data driven culturesupported by innovativeIT technologiesIn
tern
alEx
tern
al
A
B
Elevar – All Rights Reserved www.elevarco.com
Case study: Banks and airlines have developed ‘all-in-one’ mobile apps as part oftheir digital strategy, achieving ‘breakthrough’ maturity – and bottom line results
7
Reduced customer service utilization
• 43% of customers said they make fewer phone callsto their bank’s call center due to mobile banking1
Reduced issue resolution
• 35% said they visited branches less often than theydid before adopting mobile banking1
Increased customer loyalty
• 30% of U.S. mobile banking users say mobile bankinghas made them more likely to stay with the bankfrom which they receive the service1
Reduced customer service costs
• 80% reduction in per-check-in cost compared totraditional counter check-in due to mobile check-in2
Enhanced consumerization
• 50% reduction in time required to launch newservices or channels to individual consumers3
Industry-wide impact
• 97% of the world’s carriers are investing in newways that passengers can use their smart phones to“mobilize the entire journey”3
Banks Airlines
Industry Adoption of An ‘All-In-One’ Mobile App – A ‘Breakthrough’ Capability
1) Forrester Research - http://www.forrester.com/The+ROI+Of+Mobile+Banking/fulltext/-/E-RES585042) The IBM Software story for the Travel and Transportation industry http://www.ibm.com/smarterplanet/us/en/leadership/aircanada/assets/pdf/AirCanada_Paper.pdf3) Microsoft in Aviation http://az370354.vo.msecnd.net/whitepapers/SingaporeAirshow_Infographic.pdf
Elevar – All Rights Reserved www.elevarco.com
Our research has shown that large enterprises without a clear digital strategy facefive pain points, common across different organizations and industries
8
Overarching Pain Points Sample Client Quotes Summary of Overarching Pain Points
Website user interface and experience are subpar, creatingcomplaints
Stakeholders cannot find the features they want
No data captured on existing or potential customers
There is no way of telling what these individuals require and howto better engage them
Employees cannot access data pertinent to them
Lack of confidence that data is accurate and current
Siloed units restrict a culture of data sharing
Departments are unable to access relevant data
Internal process automation is lacking and could be improved inorder to enhance the overall customer experience
Organizations often lack the ability to utilize existing technologyto improve the customer experience
Friction points withcustomers and users
Deep siloes acrossinternal departments
Data that’s wrong anddifficult to access
Labor intensive manualprocesses
“For any given project, 30%of the team’s time is spentjust finding the data.”
“For any given project, 30%of the team’s time is spentjust finding the data.”
“It’s too difficult to findanything on our website…”“It’s too difficult to findanything on our website…”
“Many related projects arerunning concurrently, butthere is no systematic wayto share knowledge.”
“Many related projects arerunning concurrently, butthere is no systematic wayto share knowledge.”
Limited ability tounderstand the
individual customer
“We can’t captureinformation on potentialcustomers who engage us.”
“We can’t captureinformation on potentialcustomers who engage us.”
“Many customer serviceproblem call-ins could besolved with a very simpleapp.”
“Many customer serviceproblem call-ins could besolved with a very simpleapp.”
External Focus Internal FocusWithin enterprise:
Elevar – All Rights Reserved www.elevarco.com
The good news is enterprises don’t need to be perfect – an effective digital strategycan be implemented by focusing on pain points most relevant to company needs
9
External Focus Internal Focus
Mobile app gives user/customerthe opportunity to self-correctdata in real time
Basic website Mobile app consists of
website pulls
Software and/or socialmedia tools to enhanceinformation exchange
Significant investment inautomation tools acrossdepartments
Data is available,but is oftenoutdated and wrong
Limited infosharing acrossdepartments
Most internal processesare manual
Friction points withcustomers and users
Deep siloes acrossinternal
departments
Data that’s wrongand difficult to
access
Labor intensivemanual processes
Limited ability tounderstand the
individual customer
Case Study – A Regional Health Insurance Client
Post-Digital Strategy TargetPre-Digital Strategy
Inability to trackcustomerinteractions
Predictive data synchronizes in realtime, supported by a dedicatedpredictive analytics team
Elegant redesigned website Dedicated mobile app with core
features
Augment Breakthrough Disrupt
This organization hasfocused their digitalstrategy primarily ondeveloping a betterunderstanding of theircustomers
This organization hasfocused their digitalstrategy primarily ondeveloping a betterunderstanding of theircustomers
Elevar – All Rights Reserved www.elevarco.com
Industry Pain Point Digital Health Company Description
An end-to-end digital health company developingsolutions to improve an individual's health
Addresses health payers’ need to engagecustomers beyond when they are sick
Acts as a health and wellness tool for customers
Develops a web application that providesindividual consumers with clarity around theirhealthcare costs, usage, coverage, and choices
Helps employers gain control over healthcarespending
Allows self-insured employers to optimizehealthcare investments and achieve the highestquality outcomes for their workforce
Developing an app for Google Glass that will allowmedical doctors to instantly access patientinformation
Reclaims hours that doctors spend on paperworkin order to dedicate that time to patientinteractions
Case study: Healthcare enterprises have begun to partner with and acquireemerging digital health companies to address long-standing industry pain points
10
Friction pointswith customers
and users
Limited ability tounderstand the
individualcustomer
Optum, part ofUnitedHealth Group,
acquires majority interestin Audax Health in 2014$56M in funding, with
24 year old CEO
Data that’s wrongand difficult to
access Silicon Valley darlingfounded in 2008 with
$177M in funding
Castlight empowersemployees of CVS
Caremark, a pharmacyand drugstore company,
with healthcare pricetransparency solutions
External Focus Internal Focus
Early-stage startupfounded in 2012 with
$7.3M in funding
Dignity Health, a largehospital system, partners
with Augmedix to pilotGoogle Glass devices in
clinical settings
Within enterprise:
Forward Looking Enterprise
Elevar – All Rights Reserved www.elevarco.com 11
Stakeholder Behavior Emerging Technologies
1. Demand for Individualization
4. Digital Asset Adoption
2. Mobile App Proliferation
3. Industry Adoption of New Technologies
Convergence of Stakeholder Behaviors and Emerging Technology
• Loyalty is correlated with individualizedattention, service quality and costconsiderations
• Market surge in digital asset adoption, creatinghigher expectations for features and services
• Mobile and digital assets havebecome a fundamental part ofdaily life
• Multiple industries have been rapidly adopting newdigital assets to engage with their customers
The Need For ADigital Strategy
Rapid changes in behaviors, and an influx of emerging technologies signal that largeenterprises should prioritize their digital strategy or face long-term obsoleteness
Elevar – All Rights Reserved www.elevarco.com 12
About Elevar
Digital Strategy Point of View
Table of Contents
Elevar – All Rights Reserved www.elevarco.com 13
Elevar is a unique innovation management company – we operate digitalinnovation labs for large enterprises
We are innovation advisors
Elevar helps large organizationsinnovate by partnering with highpotential startups
We align enterprise problems withstartup solutions to drive low-risk,high-impact innovation
We represent the interests of bothenterprises and startups – ensuringmutual benefit and a spirit of long-termpartnership for both sides
We operate digital innovation labs thatconnect enterprises with startups
First, we work closely with largeorganizations to uncover their mostcritical pain points
Next, we align high potential startupsto innovate customizable, scalablesolutions for enterprise
Once the most promising solutions areselected by enterprise, we work hand-in-hand to create transformativepartnerships between the parties
Who we are: How we operate:
For general inquiries, please contact Chris Edell: [email protected].
For intellectual capital inquiries, please contact Alek Bituin: [email protected].
www.elevarco.com