Daring to be Digital webinar january 2014

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  • Those 130 of us are spread across obviously here in Sydney, and studios in Melbourne, Perth, the UK and recently Hong Kong, where we are building on the IP and project experience we have built up in the Asian market over the last 5 years.Our studios act are independent full-service delivery teams, and act as individual centres of excellence specialising in mobile, strategy, or technical – ensuring we allow our clients to lead, rather than follow.
  • Here are just some of the clients we work with, from a digital vision and customer experience project with the City of Melbourne, , a 3 year digital partnership leveraging the Sitecore platform with company directors, to a business-wide digital transformation programme at Monash University
  • Good news is…
  • You can gain competitive advantage through this understanding in any sector
  • Digital used to mean a desktop computer and a website for marketing purposes, But now, to truly take advantage of digital is to ingrain it in your organisations DNA, to have business-wide impact.In order to be transformational, an organisation’s digital agenda must be owned in the boardroom as a fundamental part of the corporate vision and strategy.If transformation is successful in delivering an exemplary user experience, or a unique product or service, then marketers can begin to spread the wordto target audiences using their own complementary marketing strategy, integrated with the broader vision.
  • The risks?Not adopting a business-centric view of the web is obvious. I put together a graveyard slide of companies in Australia and globally who have been too slow to react to using digital, and have been overtaken by the competition.Obviously these are retails organisations – often the first sector to get hit by changing business models and digital has disrupted – we’re seeing it across the education sectorDoes anyone have any examples from their own sectors that they can think of?
  • However, the transformational nature of digital isn’t anything new – Mary McCarthy for one has been talking about it for well over a decade, and this quote here sums it up perfectlyIF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON ANE-COMMERCE APPENDAGE TO YOUR BODY CORPORATE,THEN THINK AGAIN. WE PROMISE YOU THAT WON'T WORK...YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE AN 8.0 EARTHQUAKE, YOU MUST BE PREPARED FOR THE REARRANGEMENT THAT WILL INEVITABLY OCCUR.
  • It used to be a perfectly viable strategy to let others innovate and take on the risks associated, and for your organisation to still comfortably in the late majority, and even the laggards could have a viable business.However, in the digital age we would argue that this isn’t a viable strategy anymore, and that adoption looks more like this…
  • And anyone who now thinks they can still hang around in the late majority and laggards section will end up on that graveyard slide.
  • MNo
  • Does anyone know what the tricorder is? If you do, please save it until later on in the session
  • First stumbling block in moving from being digitally strategic, to digitally digitally transformational is customer service.
  • We all know the traditional marketing model of Awareness, Interest, Desire, funnelling people through to Action.Well, this is no longer sufficient.We need to consider AIDA’s reflection: Delivery: How is the product or service being delivered to the individual and how can online improve thisInvolvement: Are you actively seeking to involve the customer through post purchase/action engagement such as asking for ratings/reviews, or providing value added servicesAdvocacy: How can you turn satisfied customers into online advocates for your brand
  • Its so easy to get this wrong…Love film and other internet successes have been instrumental in the downfall of less nimble business like Blockbuster, Seamless experience throughout, easy management of system through an intuitive interface, flexible subscriptions – even the option to have a payment holiday at the press of a button.But the fail comes when they make it hard to leave – with no option for online cancellation of an accountForcing you to phone an aggressive retention teamHard to leave = less inclined to rejoin.If a company allows online joining, it has to allow online cancellation.
  • Unexpected example of the reflection.Aggressive sales – low expectation of high quality customer service
  • Good email commspre and post purchase. Value added through providing relevant, tailored information
  • Post purchase involvement:‘My’ optical express – feels personal. Encouraging involvement. Rewarding advocacy.
  • Tailored, intuitive platform.Ease of use with multiple routes to make the referral. Clear, substantial reward. Request for review – linked but not mandatory – encourages feeling of mutual give and take
  • Excellent online advocacy used on marketing site – volume of positive reviews enables a loop with advocacy feeding back into awareness
  • The Yorkshire building society + Synthetix to provide valuable technology enabled customer serviceReplaced search with instant entry into smart FAQs
  • Wherever an answer isn’t available, it records and feeds this back, allowing continual improvementFurther than that, to enhance the customer journey it connects you to a real person who knows what you are searching for and what info you have already seen, so you don’t have to start from scratch again.This is resulting in stats like20% reduction in calls to call centres40% reduction in email enquiryThis frees up operational budget – meaning this doesn’t and shouldn’t be paid for by marketing – its real digital transformation.
  • Wherever an answer isn’t available, it records and feeds this back, allowing continual improvementFurther than that, to enhance the customer journey it connects you to a real person who knows what you are searching for and what info you have already seen, so you don’t have to start from scratch again.This is resulting in stats like20% reduction in calls to call centres40% reduction in email enquiryThis frees up operational budget – meaning this doesn’t and shouldn’t be paid for by marketing – its real digital transformation.
  • A good example of granular and flexible payment models is something I’m sure most of you are familiar with – buying music.A decade ago the choice was album or single. Now users can try before they buy, download whole albums, cherry pick tracks, or indeed subscribe to a service like Spotify or Napster to get single price access to all music. These expectations are starting to form customer expectations and they will demand similar in all aspects of their dealings with organisations.
  • Moving on a step from Customer Service – What can the public do for you?
  • GoldCorp had owned the rights to the mine at red lake ontario for over 50 yearsCouldn’t find the goldMade the radical decision to crowd source by making their data publicGave out 400 megabytes of data and a $575 thousand prize fundExpected responses from elsewhere in the industry – got them from unexpected sources such as mathematicians, military offices, even new graduatesContestants identified 110 sites for potential targetsOf which 50% were new to GoldcorpOf those 80% yielded substantial quantities of goldTurning Goldcorp from a $100 million to a $9 billion company.
  • Taking crowd sourcing even furtherCompanies like Mechanical Turk and Giff GaffCrowd sourcing of the operational running of their businessRun by membersGain rewards by answering customer service questions, recruiting new customers, implementing marketing etc
  • Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
  • So, new money models.people are getting used to online commerce and one of the key outputs of this is the increased level of granularity, and flexibility of payment options – this is what they now expect.
  • A good example of granular and flexible payment models is something I’m sure most of you are familiar with – buying music.A decade ago the choice was album or single. Now users can try before they buy, download whole albums, cherry pick tracks, or indeed subscribe to a service like Spotify or Napster to get single price access to all music. These expectations are starting to form customer expectations and they will demand similar in all aspects of their dealings with organisations.
  • The CIM should have been the organisation delivering digital leadership in UK. Our colleague Mark Sherwin was running talks on what digital should mean for businesses as early as 1998 for CIM. However they had a walled garden approach. Their site told people about all the wonderful resources they had but these were only available to members at a premium membership price. E-consultancy came from no where – started less than a decade ago as a free blog, they started offering reports and as the value of these was recognised starting they started to adapt their business model.For only a small amount more than a single report you could become a member.This subscription model, with a permeable pay wall and the ability for customers to slowly build loyalty has resulted in a powerhouse that has trumped CIM in the digital arena – so much so that you can now do a degree with e-consultancy – run by Manchester Met Uni the brand power of e-consultancy means customers would rather purchase as part of e-consultancy than they would from the traditional educational institution
  • You can gain competitive advantage through this understanding in any sector
  • Mark talked about Kickstarter earlier, and it’s not just making money that’s granular, it’s sourcing funding as well.We’re working with a similar firm called Sponsorcraft with the University of Southampton – their twist is crowdfunding for the education sector.It can raise funding for everything from a research project, to new facilities, or a student show. Much more engaging and relevant than previous funding approaches asking users to basically stick $30 into a $10 million project fund.
  • This is the tricorder. Startrek. Communications. Health diagnosis and healing. Transportation. The iphone does all of this with advanced comms, and apps for anything and everything inc health and lifestyle, and of course hailing a taxi.Most firms now have a smartphne enabled workforce – think of the opportunities this could bring.
  • Lovely illustration showing the evolution of hand held technologiesWith all these capabilities now existing in the smartphone
  • Lemon card connects with accounting software to automatically manage expenses
  • Environment agency, data being pulled in to show previous flooding damage areas so hotspots can be identified
  • HOINTERMens jeans shop in USABelieved that all men don’t hate shopping, so were curious to explore how they could make it betterNo pushy sales assistants,no confusing piles of clothes and no endless lines at the tills. Only one of each style of jeans is displayed on the shop floor.
  • Shoppers use a smartphone app to scan items they wish to try on, and choose a size and colour.Jeans arrive in 30 secondsIf they’re good, the customer swipes a card to pay and leavesMessage > Stock room > Tensioned cables drop jeans into fitting room > payment card swiped through a reader > and out they go
  • Understanding the pain points of the existing experience. Creating something unique and memorable – developing brand value and potentially saving on the staffing costs of servicing the store, not to mention the engagementopportunities opened up by exploiting digital
  • Everything we’ve covered so far should be on the immediate agenda of any organisation not wanting to be left behind in the digital ageBut now lets thing about some more aspirational issues, something for the roadmap perhaps
  • There was an early misconception that the internet of things was a device with an integrated web interface
  • There was an early misconception that the internet of things was a device with an integrated web interface
  • No one enjoys being woken by an alarm clock
  • But imagine you awake at the ideal moment in your sleep cycleambient lighting, the smell of freshly brewed coffee, and the sound of your favourite musicWith precisely the right amount of time needed to get to the office ready for a big meetingWell, this will happen because: there can be sleep sensors in your bed, monitoring your sleep cycle which iswirelessly connected to your calendar,Which has cross referenced the time you need to get to the office with your GPS against expected traffic patternsAll to determine when to wake you.The sensor has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the dayWhat’s exciting is that all this technology already exists – its just a case of linking it up
  • Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everything
  • Covers almost 70 digital products (including dropbox, evernote, GMAIL) – creating rules personal / valuable to the user (s)
  • Digital used to = desktop computeremergence of simple devices like raspberry pi – digital = everywhere, everything
  • Technology like this already exists:San Francisco parking spot finder1 in 3 drivers in San Fran searching for a parking spotDetectors under every spot – made up of just a battery, radio antenna and magnetometerDetect when a car is above themMake data available about free spots to smartphone usersCity able to adjust cost to match demand
  • However, big data is really a mis-noma – its about mass, micro data.How that data is analysed and used is where the big opportunities lie – the data is there, you just need to work out what to do with it
  • However, slightly less creepy is how big data could be used for customer insight, and to improve product and service design.Orange ran a competition, releasing anoymous data on 2.5 million call records from the Ivory CoastOne of the teams who took up the challenge, were a group of IBM researchers, who focused on Data in Abidjan – Ivory Coast’s largest cityThey analysed when and where people were using the bus networkSpotted gaps to identify two new routes neededFound that they could reduce the average journey time by 10% for bus commuters - all done within one month
  • So what does it mean to implement digital transformation?
  • The digital project must become inheretly linked to your business strategy, seen as a key enabling channel
  • You can gain competitive advantage through this understanding in any sector
  • And the best ideas are ones which show value for multiple business areas
  • MNo
  • MNo
  • MNo
  • Good news is…
  • Daring to be Digital webinar january 2014

    1. 1. A PRECEDENT WEBINAR – 22nd January 2014
    2. 2. MARK SHERWIN GLOBAL COMMERCIAL DIRECTOR
    3. 3. LONDON PERTH EDINBURGH MELBOURNE CARDIFF HONG KONG
    4. 4. Who we work with
    5. 5. WE ARE EVOLVING FROM A MARKETING CENTRIC TO BUSINESS WIDE VIEW OF THE WEB The Website Web strategy Digital strategy Digital transformation Business-wide impact Marketing centric
    6. 6. THOSE ORGANISATIONS THAT DO NOT FUNDAMENTALLY TRANSFORM ARE RAPIDLY BECOMING IRRELEVANT
    7. 7. DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE If you think being 'in e-business' means suturing on an e-commerce appendage to your body corporate, then think again. We promise you that won't work... You've got to be prepared to let that e-business commitment ripple through and shake up that body corporate. And like an 8.0 earthquake, you must be prepared for the rearrangement that will inevitably occur. Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
    8. 8. AND THERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO Innovators 2.5% Early Adopters 13.5% Early Majority 34% Keyur Patel & Mary Mccarthy | Digital Transformation, 2000 Late Majority 34% Laggards 16%
    9. 9. THOSE WHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND Innovators 2.5% Early Adopters 13.5% Early Majority 34% Keyur Patel & Mary Mccarthy | Digital Transformation, 2000 Late Majority 34% Laggards 16%
    10. 10. In a world filled with uncertainty, it’s easy to fall into a “wait and see” mindset. But waiting and saying “no” has a cost just as high, if not higher, than saying “yes.” Because technology is increasing so fast and because we are in a period of rapid transformation are the exact reasons why you can no longer “wait and see” what will happen. Remember this: “If you don’t do it, someone else will.” And they’re doing it right now! Daniel Burrus, Flash Foresight
    11. 11. WE’RE GOING TO EXPLORE 5 KEY THEMES 1. Customer service, the missing link 2. Harnessing the wisdom of crowds 3. New money models 4. The tricorder 5. The Internet of things, and big data
    12. 12. Customer service, the missing link
    13. 13. DESIRE INTEREST ADVOCACY INVOLVEMENT The AIDA reflection | Mark Sherwin, Precedent 2013 ACTION DELIVERY AWARENESS MARKETING CAN NO LONGER SIMPLY FOCUS ON AIDA IT MUST FOCUS ON AIDA AND ITS REFLECTION
    14. 14. OPTICAL EXPRESS - NOT JUST AN AGGRESSIVE ACQUISITION MODEL
    15. 15. OPTICAL EXPRESS - DELIVERY
    16. 16. OPTICAL EXPRESS - INVOLVEMENT
    17. 17. OPTICAL EXPRESS - ADVOCACY
    18. 18. OPTICAL EXPRESS - AIDA COMES FULL CIRCLE
    19. 19. TECHNOLOGY ENABLED CUSTOMER SERVICES
    20. 20. TECHNOLOGY ENABLED CUSTOMER SERVICES
    21. 21. Harnessing the wisdom of crowds
    22. 22. RESEARCH AND DEVELOPMENT - GOLDCORP
    23. 23. IDEA GENERATION - LEGO
    24. 24. OPERATIONAL RUNNING - GIFF GAFF
    25. 25. TURNING ADVOCATES INTO STAKEHOLDERS Idea generation Operations Stakeholders Financing Research and Development
    26. 26. New money models
    27. 27. CUSTOMERS WANT INCREASINGLY GRANULAR PURCHASING OPTIONS. MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN
    28. 28. TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS
    29. 29. TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS
    30. 30. THESE MODELS ARE STARTING TO PERFUSE INTO MORE NICHE APPLICATIONS AND SECTORS
    31. 31. FINANCING – NICHE GIVING
    32. 32. The tricorder
    33. 33. EVERY EMPLOYEE WITH MORE COMPUTING POWER AT THEIR FINGER TIPS THAN THE SPACE SHUTTLE. ANYTIME…ANYWHERE
    34. 34. CONVERGENCE PUTS INCREDIBLE POWER IN THE PALM OF OUR HAND Wired UK | 20 Years of Wired | June 2013
    35. 35. AS DIGITAL WALLETS BECOME MORE MAINSTREAM THE MOBILE OFFERS HUGE EFFICIENCY AND PRODUCTIVITY BENEFITS
    36. 36. THEY ALSO OFFER THE OPPORTUNITY TO PROVIDE NEW VIEWS ON TO EXISTING DATA USING CONTEXT TO STREAMLINE EXPERIENCES
    37. 37. TECHNOLOGY ENABLED SERVICE EXPERIENCES
    38. 38. TECHNOLOGY ENABLED SERVICE EXPERIENCES
    39. 39. TECHNOLOGY ENABLED SERVICE EXPERIENCES
    40. 40. The internet of things, and big data
    41. 41. NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…
    42. 42. NOT A FRIDGE WITH AN IPAD STRAPPED TO IT… The internet of things isn’t wi-fi fridges and devices with bolt on connectivity: it’s tiny, cheap sensors that will bring everyday objects to the network – in their billions’ ‘By strapping a receiving computer to the side of it, the internet fridge brings the internet to the device. By connecting transmitting sensors to the network, the internet of things brings the device to the internet.’ BEN HAMMERSLEY | WIRED, 2013
    43. 43. THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT, MULTI-OUTPUT DIGITAL INTERACTIONS
    44. 44. THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT, MULTI-OUTPUT DIGITAL INTERACTIONS Use case from The New Digital Age | Schmidt and Cohen 2013
    45. 45. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
    46. 46. DIGITAL CAPABILITY IS EXTENDING VALUE OF PRODUCTS
    47. 47. THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES
    48. 48. WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS, COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER DATA OPPORTUNITIES
    49. 49. AS THESE DEVICES STORE DATA IN THE CLOUD WE WILL HAVE ACCESS TO MORE DATA ABOUT OUR WORLD THAN EVER BEFORE
    50. 50. THIS CAN LEAD TO INNOVATIVE NEW APPROACHES TO CUSTOMER INSIGHT, AND PRODUCT AND SERVICE DESIGN Mobile phone data redraws bus routes in Africa, BBC | http://www.bbc.co.uk/news/technology-22357748
    51. 51. Gotcha, but how do I make that 15%?
    52. 52. FIRST WE MUST ARTICULATE WHAT IT MEANS TO EMBRACE DIGITAL TRANSFORMATION The Website Web strategy Digital strategy Digital transformation Business-wide impact Marketing centric
    53. 53. DIGITAL MUST MOVE FROM A MARKETING FUNCTION TO A BUSINESS-WIDE IMPERATIVE Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013
    54. 54. AND TO GATHER SUPPORT IT MUST DELIVER TO ALL PARTS OF THE BUSINESS DIGITAL TRANSFORMATION Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013 DIGITAL TRANSFORMATION
    55. 55. GENERATE IDEAS AND LOOK FOR THOSE IDEAS THAT IMPACT ACROSS ORGANISATIONAL GOALS
    56. 56. UNDERSTAND HOW YOU WILL MEASURE BUSINESS VALUE ESTABLISH BASELINES, CONSTANTLY MEASURE, OPTIMISE AND EVOLVE We need to deliver recognisable and measureable business value every three to five months. That is imperative, otherwise we lose credibility and trust. CLAES MANSSON | DIRECTOR, ICT STRATEGIC INVESTMENT PROGRAMME , MONASH UNIVERSITY, 2013
    57. 57. CONSIDERATIONS
    58. 58. Transformation will not wait, pause, or stand aside while you think about it. There are three critical truths about business in this new era that you cannot afford to ignore; we might call them corollaries to the Golden Rule: 1) Transformation will happen. 2) If it can be done, it will be done. 3) If you don’t do it, someone else will. The message is clear: in the days, weeks, months, and years ahead, expect and plan for radical transformation. Daniel Burrus, Flash Foresight

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