The first week of Decoding Digital for Business Victoria: Developing your digital strategy.

1. Decoding Digital
Week One: Developing a digital strategy
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2. Introduction
Ryan Smith
Digital Consultant
Symphony3
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Fergal Coleman
Director
Symphony3
Andrea Halliday
Stakeholder &
Marketing Coordinator
Business Victoria
Online

3. About Decoding Digital
• The Decoding Digital program has been designed to help participants develop,
implement and measure a digital strategy for their business.
• The aim is to provide you with the skills and tools so that you can start
developing the digital capacity of your business. The program will run over four
weeks which you’ll see shortly.
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4. How to engage with us by webinar
We want you to get the most out of the program by asking questions, giving
your feedback, telling us your stories and participating in opinion polls.
• Chat box
– How to communicate with the chat box
• Polls
– How to participate with polls
• Twitter
– We will be answering questions during the session on Twitter. Contact us directly at
@Symphony3Think and/or use the hashtag #DigitalVic
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5. Get involved
• We are running a LinkedIn Group for the Decoding Digital program which is your
changes to stay in touch, receive updates throughout the week, share your
experiences and connect with other participants.
Join here:
https://www.linkedin.com/groups/Decoding-Digital-Business-Victoria-6923565
• Do your homework! – this is important in week one especially
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6. About Decoding Digital
Week 1: Developing a digital strategy (Tuesday 3rd Feb)
Hangout: LinkedIn (Thursday 5th)
Week 2: Design & implementation (Tuesday 10th Feb)
Hangout: Facebook (Thursday 12th Feb)
Week 3: Launching and marketing the business (Tuesday 17th Feb)
Hangout: Twitter (Thursday 19th Feb)
Week 4: Evaluation and continuous improvement (Tuesday 24th Feb)
Hangout: Google Analytics (Thursday 26th Feb)
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7. The Result
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• A digital strategy that can grow the
business
• A digital business platform (website)
• A digital marketing plan
• Social media channels
• Content marketing
• Continuous improvement plan (by
measuring what’s working)

8. Today’s Session: Developing a digital strategy
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Week one is about thinking about your business, the
overall strategy and how to bring that online.
1. Digital Leadership
2. Our case study: Oz Crafters
3. Digital Diagnostic (finding the gaps)
4. Business Model Canvas
5. SWOT Analysis
6. Customer personas
7. Customer journey
8. Creating a plan

9. What is a digital leader?
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10. Digital Leadership
Beginner: You know you need to do something, but you’re not sure where to start
Technology Led: You’re using digital tools for your business but you’re not sure
how they contribute to your overall strategy
Change Ready: You have a clear vision of where your business is going but need
assistance with the digital technologies to get you there
Digital Leader: You’re successfully using digital technologies as part of a well-
documented strategy and generating profits 25% greater than your competitors
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11. The Digital Diagnostic – Your Results
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Understanding of future customer needs 5.72
Understanding of what the business needs to look like in
the future (Vision and strategy)
5.68
Business model and process 5.86
Our People 5.56
IT Infrastructure 5.52
Data 5.17

12. Business Case Study: Oz Crafters
• Oz Crafters are boutique woodworkers based in
Ballarat, founded in 1981
• The business was started by Frank Jones, who left his
job as an accountant to pursue his love for woodwork
• Starting out alone, Frank handmade wood crafts from
children’s toys through to custom-built furniture from
locally and ethically sourced timber
• Oz Crafters sell a range of pre-made toys, home
products and furniture from their shopfront in Ballarat,
and the workshop is open for viewing to the public on
Saturdays to see the team at work
• There are 7 retail partners who sell Oz Crafters’
products in other metropolitan hubs in Victoria,
however the company has not branched out interstate.
2 retail partners have recently gone out of business.
• Frank has 3 employed woodworkers and 3 shop
assistants. His wife, Angela also helps with the
management of the store and business admin
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13. The Future Vision
• Frank & Angela’s son, James (29 years old), has been living
and working in Europe for the past 5 years and is returning
home to re-join the family business
• At 61, Frank is beginning to think about retirement and would
love to see his son carry on the business into the future
• James sees huge potential in using digital to grow the customer
base of Oz Crafters, and wants to set a target to grow
revenues by 30% in 2 years and 50% in 3 years. Current
turnover is $1m.
• By utilising digital, James believes Oz Crafters will be able to
sell more products within Victoria, but also build a strong
customer base in other states both with partners (B2B) and
directly to consumers (B2C).
• While mass furniture and homeware producers like IKEA
continue to grow their market share, James believes there is
still a great opportunity to provide a niche product that is high
quality, hand made and ethically sourced and that customers
will be willing to pay a premium for those characteristics.
OzCrafters are currently CHANGE READYwww.symphony3.com 13

14. The Business Model Canvas
http://www.businessmodelgeneration.com/
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15. OzCrafters Business Model Canvas
• Key Activities
– Crafting
beautiful
products
– Marketing online
(close store
eventually)
• Key Resources
– Workshop
– Expertise of
craftsmen
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• Key Partners
– Find a digital
partner
– Interior
designers
• Value
Proposition
– Crafting
beautiful
personalised
products
– Ethically
sourced
materials
– Australian-made
– Last forever
• Customer Relationships
– Face to face
– Online support
– Social media
• Channels
– Online website
– Social media
– WOM
– Partners/ Interior
designers
• Customer
Segments
- High Net
worth
individuals
- Corporates
• Cost Structure
– Reduce size of store or eliminate
– Reinvest savings in online
– Staff – high quality craftsmen
• Revenue streams
– Direct orders online
– Interior designers
– Once off high value corporate jobs
– Courses/workshops

16. More on business model canvas
• http://www.slideshare.net/esaife/business-model-canvas-101
• http://www.slideshare.net/oukearts/10-disruptive-business-models-thaesis-and-
trendwatching
• http://www.slideshare.net/oukearts/10-new-business-models-for-this-decade
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17. Changing Business Models
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18. Changing Business Models
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19. Changing Business Models
www.shoesofprey.com
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20. Nomi.com.au
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The list goes on
Peer to peer payments: societyone.com.au
Online Education: Coursera.org or even this webinar!
Crowdfunding – Pozible.com.au

21. Market Research
• A key step in the development of your digital strategy is doing background
research on your market, competitors, partners, and what is happening overseas.
• By comparing your offering to other members of the industry, you should aim to
establish your Strategic Competitive Advantage (SCA) – what is it that separates
you from your competition?
• Some suggested tools you may use to structure your research include:
– Porter’s Five Forces Model http://www.mindtools.com/pages/article/newTMC_08.htm
– Unique Selling Proposition (USP) http://www.mindtools.com/pages/article/newTMC_11.htm
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22. SWOT Analysis
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STRENGTHS WEAKNESSES
Australian/locally made Limited production
capacity
Loyal customers in local area Customer base
predominantly local (very
little revenue growth)
Reliable material suppliers Limited marketing budget
and reach
Relationship with metro
retailers in Melbourne &
Bendigo
No established long-term
growth or marketing plan
Individual, custom, one-off
products that cannot be
replicated
No online presence or
social media activity
OPPORTUNITIES
Ability to sell directly to
customers outside Ballarat
online (e-commerce)
Connect with existing
customers online
Use online data to
forecast
demand/production
Take business processes
and customer service online
Reach new customers
outside Ballarat using
digital
Undertake digital
training and education
(Decoding Digital)
Expand retail partner base
using online and allow online
retail orders
Save resources by moving
processes online (e.g. retail
orders)
Outsource digital tasks
where required (website
developer)
Recruit skilled employees
using digital as the business
grows
Correspond with customers
about custom orders online
Get input and inclusion
from all staff in digital
strategy
Include customers in product
design and production
Allow semi-custom
products to be designed on
website
THREATS
Competition from online
retailers and mass
producers
Focus on local made & high
quality selling proposition
in online marketing
Focus on direct
marketing to loyal
customers
Ability to increase output
with business growth
Consider just-in-time
inventory/production
Utilise social for low-
budget marketing
Backlash from cutting out
retailers
Offer online discounts to
retail partners
Develop internal policies
for digital management
Less control over online
reputation and feedback
Monitor and address online
reviews and feedback
Maintain focus on
quality of production
Imitation products
Step 1:
• Develop four strengths (what’s great about you or what
you do well),
• Develop four weaknesses (areas of deficiency or in need
of improvement)
• Identify four opportunities (where and what are they?),
and
• Identify four threats (what could potentially get in your way
of success?)
Step 2:
• How can I use these strengths to maximise these
opportunities?
• How do I use these strengths to overcome these threats?
• What do I do to make sure that these weaknesses don’t
spoil these opportunities?
• What if these weaknesses combine with these threats,
what corrective action will I need to take?

23. Creating Customer Personas
• Creating ‘customer personas’ allows you to distinctly
envision who it is you’re trying to market to and sell to
• Most businesses will have multiple personas based on
different customer segments/selling propositions
• It often helps to base your customer persona on a real life
customer
• Be detailed and be explicit – give them a name, age,
income, location and even imagine and draw what they
look like
• This will become the basis of who you design your online
strategy for
• Consider what makes them tick, what motivates them and
how they use online tools to find products/services like
yours (or your competitors)
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24. Get into the character!
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25. Customer Personas
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26. Google Customer Journey
https://www.thinkwithgoogle.com/tools/customer-journey-to-online-
purchase.html#!/australia/business-and-industrial/small/generic-paid-search
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https://www.thinkwithgoogle.com/collections/zero-moment-truth.html

27. The Customer Journey
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28. Developing a One Page Plan (OPP)
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One Page Plan:
Oz Crafters adapted from Mindshop
Australia template
Now
No online presence
Predominantly local customer base
Offline business process procedures
Little marketing activities or business growth
Strategy Action Items Timing Estimated Duration Who
Use online freelancer to develop branding and colour
schemes Feb 1 week James & Frank
Research most appropriate CMS for Oz Crafters Feb 1 week James
Prepare a brief on functional requirements of website Feb 1 day James
Interview developers to undertake build of website Feb 1 month James & Frank
Undertake keyword research for OzCrafters
March 1 Day
James
Review competitors' SEO strategies for guidance
March Half day
James
Develop ongoing content strategy and plan
March Ongoing
James
Conduct audit of site structure and meta data
March 2 Days
James
Research possible tools for accounting and customer
management April 2 Days James
Understand which tools customers wish to use for
customer service April 1 Day James
Receive training for Frank and Angela April 1 Day Frank and Angela
Move internal documents and processes to cloud April 1 Day James
Create internal process documents for employees April 1 Day James
Create social media accounts for relevant platforms (based
on customer personas and journeys) March 2 Days James
Share relevant content on social media networks March Ongoing James
Create small advertising budget for social media March Ongoing James
Respond to customer requests on social media March Ongoing James
Develop a fully functional e-commerce website
and online brand for Oz Crafters
Build search engine presence through SEO
activities
Take manual processes online to save time
and effort
Promote brand awareness with digital
marketing techniques
Where
How
From Feb 2015 to July 2015 Take business admin and accounting online via cloud
Fully functional website with built-in eCommerce for customers and
retailers
50% growth in interstate sales via online store
Grow brand awareness through SEO and social media marketing

29. Summary
• Setting the right foundations for a digital strategy is vital
• Don’t develop a website or engage in social media until you are clear on your
digital strategy
• Assess your digital readiness with the digital diagnostic
• Work through your Business Model Canvas and SWOT Analysis
• Map out your customer personas
• Map out your customer journey
• Take the most important items from your journey and put them into a One Page
Plan
• Send us your one page plan
• Next week…. Design, development and technology
Hangout this Thursday at 12.30pm – Hands on with LinkedIn!
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30. Have your say
Discuss topics and stay up to date in the LinkedIn Group.
Tweet your questions with the hashtag: #DigitalVic
Tweet us at @Symphony3Think
Contact us at: https://www.facebook.com/Symphony3
Email us at: decodingdigital@symphony3.com
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