Perpetual leadershift - Digital strategy and change management go hand in hand

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The digital revolution is one of the most disruptive forces now at work in the business world. Transformation in response to this force requires most companies to rethink what digital really means. It is no longer sufficient to think in terms of web sites and other digital assets. Similarly, evolution is now so much more than focusing on managing discrete changes that a particular technical innovation may require, the speed of change requires a far more fluid and dynamic mode of management. This session will look at some of the heroes of the digital age and the key factors that enhance or hamper an organisations ability to rise to the challenge of a constantly evolving business environment.

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Perpetual leadershift - Digital strategy and change management go hand in hand

  1. 1. Perpetual Leadershift
 The X factor for driving digital transformation Jenny Williams | Ideagarden
  2. 2. The Renaissance: " 15th Century Da Vinci Michelangelo The Medicis The Industrial Revolution: " 19th Century The steam engine Google Facebook Cloud computing Quantum computers The Digital Age: " 1990 to ?
  3. 3. Our recent history is littered with technology that has changed the world ipad 2010 walkman 1979 personal computer 1973 radio 1895 vcr 1963 tv 1927 phone 1876 mobile phone 1987 cd 1983 iphone 2007 laptop 1984 camcorder 1982
  4. 4. In 1939, " The New York Times predicted that television would fail because people would not have time to " stop and stare " at a screen.
  5. 5. 1967 My childhood toys
  6. 6. In 1985 my first job was writing custom software for companies that were renting PC’s because businesses believed they were not viable enough to actually buy them  
  7. 7. In 2000 I returned " to Australia from the US to be told that MRM’s biggest digital client had an annual budget of $15,000  
  8. 8. Working in digital was very frustrating for a very long time  
  9. 9. Today most people acknowledge the importance of technology in our lives and its impact on business"
  10. 10. But, few businesses are changing as rapidly as consumers and devices  
  11. 11. transformation involves rethinking what digital really means.  
  12. 12. And…insanity… is doing the same thing over and over and expecting a different result
  13. 13. FAILURES OF THE DIGITAL AGE
  14. 14. VS FAILURES OF THE DIGITAL AGE
  15. 15. FAILURES OF THE DIGITAL AGE VS
  16. 16. FAILURES OF THE DIGITAL AGE
  17. 17. FAILURES OF THE DIGITAL AGE In the 1990s, the music industry phased out THE SINGLE, leaving consumers with no means to purchase individual songs. illegal peer-to-peer This market was initially filled by file sharing technologies, and then by online retailers such as the and Amazon.com This low end disruption eventually undermined the sales of physical, high-cost CDs. iTunes Store
  18. 18. Traditional cannibalised by non-traditional competitors The music industry, spent the majority of its time and effort fighting online music technology instead of trying to harness it. FAILURES OF THE DIGITAL AGE
  19. 19. launch of the iPod 1000 tunes in your pocket digital hum strategy greater connectivity access to apps better cameras and video iCloud connectivity iPad 2010 Followed with iPhone Introducing connectivity a digital camera (3.0) a video camera (3GS) apple launch 2009 Through the process of continuous improvement, 2001 Apple reviewed the options for extension of the product offer they chose music FAILURES OF THE DIGITAL AGE In contrast Apple’s music strategy
  20. 20. !   The digital revolution is one of the most disruptive forces now at work in the business world. !   Digital business is among the most significant factors driving business and societal change worldwide. !   Digital innovations have led to the creation, destruction, and transformation of businesses, industries, and even governments. !   Few organizations are fully exploiting digital disruptions or innovations. IN SUMMARY FAILURES OF THE DIGITAL AGE
  21. 21. MOST RECENT " DIGITAL DISRUPTIONS
  22. 22. MOST RECENT DIGITAL DISRUPTIONS Smartphone
 adoption The always on" consumer
  23. 23. Social Media
MOST RECENT DIGITAL DISRUPTIONS
  24. 24. The increasing importance 
 of search MOST RECENT DIGITAL DISRUPTIONS
  25. 25. BIG Data MOST RECENT DIGITAL DISRUPTIONS
  26. 26. Penetration of broadband and the NBN? MOST RECENT DIGITAL DISRUPTIONS
  27. 27. Totally different media models Tarps vs CPA MOST RECENT DIGITAL DISRUPTIONS VS
  28. 28. The NBN" and disruptive workplace practices MOST RECENT DIGITAL DISRUPTIONS
  29. 29. MOST RECENT DIGITAL DISRUPTIONS Decline in newspaper revenues $
  30. 30. MOST RECENT DIGITAL DISRUPTIONS Internet advertising takes over TV
  31. 31. MOST RECENT DIGITAL DISRUPTIONS E-commerce and online servicing capability is now “hygiene”
  32. 32. MOST RECENT DIGITAL DISRUPTIONS Personalisation, targeting is" “best practice”
  33. 33. MOST RECENT DIGITAL DISRUPTIONS Almost every company is in " the business of creating “content”
  34. 34. As much information is now being generated every two days, according as existed between the dawn of civilization and 2003 Eric Schmidt, former Google CEO “ MOST RECENT DIGITAL DISRUPTIONS
  35. 35. MOST RECENT DIGITAL DISRUPTIONS Differentiation, the super wow is the holy grail
  36. 36. It’s not we have to adapt to the technology MOST RECENT DIGITAL DISRUPTIONS It’s the way we about “digital” think
  37. 37. FOUR" THOUGHT " LEADERSHIFTS
  38. 38. MOST RECENT DIGITAL DISRUPTIONS THOUGHT LEADERSHIFTS 1.  DIGITAL IS NOT A CHANNEL
  39. 39. Digital is just " the opposite " of analogue DIGITAL IS NOT A CHANNEL
  40. 40. // EXAMPLE: THE ADVERTISING INDUSTRY DIGITAL IS NOT A CHANNEL
  41. 41. THE CHALLENGE
  42. 42. Planners identify the key insight DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  43. 43. Creatives come up with the big idea DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  44. 44. Usually in the form of a TV ad DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  45. 45. Sometimes a " print ad DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  46. 46. In the old days, the guys who got the budget called the big shots Digital people didn’t like it but that’s just the way things where
  47. 47. PR retail DM outdoor TV radio digital mobile strategy insight The creative idea The traditional approach DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  48. 48. PR retail DM outdoor TV radio mobile strategy insight The creative idea digital digital But digital is not " a channel DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  49. 49. downloads buy now request info product info contact us The basics of digital awareness social mobile ads email search viral display digital strategy DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  50. 50. evolving ecosystem downloads product info contact us request info buy now forums videos UGC widgets online trial click to call mobile ads email search viral display digital strategy blogs social games podcasts word of mouth community tagging RSS DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  51. 51. IN ADDITION…
  52. 52. Digital Outdoor DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  53. 53. Digital Print DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  54. 54. Digital TV DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  55. 55. Digital Radio Online promotions," order products DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  56. 56. Digital POS DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  57. 57. Digital Loyalty DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  58. 58. Digital PR DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  59. 59. behind the scenes what the client sees… Develop a cool powerpoint presentation with lots of integration buzz words 1 Hire digital dude get him to handle all the digtial work until he quits 2 Buy a digital company and “absorb it” until there is no one left 3 Hire another digital dude but give him the ability to hire staff 4 When the digital unit grows big enough, split them up and sit them with the traditional guys until half of them leave in frustration to work at some hotshop digital agency 6 Hire a bigger name digital dude ….. 5 Send everyone that’s left on a digital training course traditional agency digital solution DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  60. 60. The problem is in the way we are thinking about digital and how we try to adapt DIGITAL IS NOT A CHANNEL // EXAMPLE: THE ADVERTISING INDUSTRY
  61. 61. HOLISTIC DIGITAL MARKETING
  62. 62. Display Digital signage Desktop applications email Digital TV 3G content Podcasting Websites SMS GPS devices PDA’s Gaming devices search kiosk Understand the primary digital touch points
  63. 63. hear photograph & share send to a friend Add the digital amplification opportunities word of mouth In store/demos radio tv outdoor QR code bluetooth download send to a friend voice notify tweet search enter vote buy augmented reality QR code augmented photos ideas buy augmented reality QR code coupons notify competitions bookmark download download coupon loyalty share like post print promotions website apps pos social
  64. 64. Develop truly channel neutral strategies THE DIGITAL FUTURE Digital Brand Data Analogue RETAIL DM OUTDOOR TV RADIO MOBILE ONLINE PR
  65. 65. Areas to consider THE DIGITAL FUTURE mobile first omni-channel integration social grows up user experience brings art and science to business user adoption – the missing link analytics – removing the guess work trends UX
  66. 66. Build a long term acquisition and retention strategy Campaign Support Crowd sourcing Alliances Advocacy Loyalty programs System integration Integration Customer Support MEASUREMENTANDMONITORINGSYSTEMS Partnerships Brand campaign Event Q3 Event Q2 Event Q1 Event Q4 Promotion Partners Strategic Alliances Event partners special offer special offer CRM Build a fan base THE DIGITAL FUTURE
  67. 67. Accept …. The devil is in " the detail PR Blog watching retail Digital In store " displays outdoor Digital billboards TV iTV radio Podcasting mobile Content and Messaging online Display Ads and Websites Technology Enablement 1 Platform capabilities 2 Penetration Statistics 2 market insight 3 customer data 1 competitive landscape the core idea engagement strategy 1 competitive landscape 2 customer data Deployment Strategy 1 Partnerships 2 Affiliate opportunities THE DIGITAL FUTURE
  68. 68. PR Blog watching retail Digital In store " displays outdoor Digital billboards TV iTV radio Podcasting mobile Content and Messaging Deployment Strategy online Display Ads and Websites Technology Enablement 1 Platform capabilities 2 Penetration Statistics 2 market insight 3 customer data 1 competitive landscape the core idea engagement strategy 1 competitive landscape 2 customer data 1 Partnerships 2 Affiliate opportunities THE DIGITAL FUTURE app Search blogger QR code Website eCRM SMS NFC Search Social Social And it just gets more and more complex everyday
  69. 69. MOST RECENT DIGITAL DISRUPTIONS THOUGHT LEADERSHIFTS 1.  DIGITAL IS NOT A CHANNEL 2.  DIGITAL IS MORE THAN JUST MARKETING
  70. 70. Disruptive empowerment Customers have technology that enables them " to use products and services on their terms. DIGITAL IS MORE THAT JUST MARKETING
  71. 71. Revenues are " threatened DIGITAL IS MORE THAT JUST MARKETING
  72. 72. The issue is that disruption, by its very nature, " breaks process. DIGITAL IS MORE THAT JUST MARKETING When faced with breakage we tend to try to piece it back together like a child with a smashed vase and superglue
  73. 73. WHAT HAPPENS ? the speed of is accelerating change
  74. 74. Speed and impact is variable SHORT FUSE, BIG BANG LONG FUSE, BIG BANG SHORT FUSE, SMALL BANG LONG FUSE, SMALL BANG Accommodation & food service Arts and Recreation Retail ICT & media Finance Professional Services Real estate IMPACT Transport Health Recruitment Agriculture Government Utilities Constructing Mining Wholesale TIME DIGITAL IS MORE THAT JUST MARKETING Source: Deloitte consulting Manufacturing
  75. 75. THE CHALLENGES
  76. 76. This is all too much, we just need to keep this simple That’s all very well but we are not there yet We have a 5 year plan that addresses that ““ DIGITAL IS MORE THAT JUST MARKETING
  77. 77. What does this " mean for me? THE EXECUTIVE CONTINUUM With luck, this won’t happen in my time DENY & BLOCK LAND GRAB This is my chance to be the next CEO! DIGITAL IS MORE THAT JUST MARKETING
  78. 78. CEO “We are not a digital business we have been doing XYZ for a long time very successfully” EXECUTIVES “My KPI’s relate to profit, I do not want to put that at risk” MIDDLE MANAGEMENT “I am way too busy doing what I need to I have no time to try new things that are untested” COAL FACE “This is the way we do things around here and it has always worked well” The problem starts at the top DIGITAL IS MORE THAT JUST MARKETING
  79. 79. CSO CFO CIO 5 year technology roadmap CMO CXO 12 month Marketing strategy The challenge operational, political and financial silos CEO BOARD DIGITAL IS MORE THAT JUST MARKETING
  80. 80. THE SOLUTION
  81. 81. divisions CIO divisions CFO divisions president CRM systems, sales " automation, CRM 3D printing deployment systems ROI calculations and cost reductions Alliances, data procurement Intranets, online training Warehouse management and tracking systems HumanResources Research Product dev " groups and research Cost reductions Division CIO PROFITABILITY, REVENUE STREAMS AND COST REDUCTION DIGITALS ROLE IN THE BUSINESS THE DIGITAL FUTURE Engage multiple layers of an organisation CEO CFO audit committee board of directors (investors and advisors) Sales Mfg R&D Marketing Int. Finance Warehouse HR IT Purchasing
  82. 82. CEO EXECUTIVES COAL FACE MIDDLE MANAGEMENT Define ownership and responsibilities Shareholder visibility Digital Governance Board Specific digital KPI’s Inspiration, Training and mentorship THE DIGITAL FUTURE
  83. 83. ©Fusion Digital Pty Ltd + IdeaGarden Pty Ltd 2013 Distribution Strategy Strategic Themes   Leverage Data   Digital Branch   Simplicity   Seamlessness   Financial Coaching   Family Focus   Multi-cultural " Opportunity Technology Strategy   Technology Roadmap   Vendor Relationships   Architecture, Data, " software etc   Mobile Marketing Brand Roadmap Risk Treasury Payments Strategy People+" Culture People Strategy Product Product Plan Retail+ Advice Sales Strategy ATM PHONE CALL CENTRE ONLINE BRANCH MOBILE Digital Strategy Corporate Strategy THE DIGITAL FUTURE Link your digital strategy to every other organisational strategy
  84. 84. THE DIGITAL FUTURE Online product acquisition Build and enhance" community program e-Commerce enablement" transactional + administrative Demonstrate" Innovation Connect employees with members digitally Drive awareness/media spend/" social sharing opportunities Enable employee education and training Digital Strategy Ensure “Digtial” positively impacts internal and external audiences equally
  85. 85. an impulse to do what's familiar and comfortable" an impulse towards novelty and challenge Most people want to change … and they don’t THE DIGITAL FUTURE
  86. 86. CUSTOMER VALUE PAIN   Our dilemma is that we hate change and love it at the same time; what we really want is for things to remain the same but get better. Sydney J. Harris, American Journalist The pain of change, must be less than the pain of not changing. Cost  of   change   Benefit  of   not   changing   Cost  of  not   changing   Benefit  of   change   PAIN PLEASURE Change No Change
  87. 87. BAU = " Developing a business model that can embrace disruptive change THE DIGITAL FUTURE
  88. 88. Create reward and attribution systems that motivate success THE DIGITAL FUTURE
  89. 89. Position change as opportunities, for learning and professional growth THE DIGITAL FUTURE
  90. 90. Reward and celebrate people trying new things even if they fail THE DIGITAL FUTURE
  91. 91. CEO EXECUTIVES COAL FACE MIDDLE MANAGEMENT BAU=
 Permission to behave differently CUSTOMER VALUE
  92. 92. MOST RECENT DIGITAL DISRUPTIONS THOUGHT LEADERSHIFTS 1.  DIGITAL IS NOT A CHANNEL 2.  DIGITAL IS MORE THAN JUST MARKETING 3.  DIGITAL IS NOT ABOUT TECHNOLOGY ITS ABOUT CUSTOMER VALUE
  93. 93. REDEFINING CUSTOMER VALUE
  94. 94. CUSTOMER VALUE Elements " of Digital Transformation Most companies focus on one OR the other VALUEINDELIVERY VALUE IN PROPOSITION Refine Extend Enhance THE WHAT THEHOW Create Leverage Integrate Source: IBM Institute for Business Value analysis
  95. 95. CUSTOMER VALUE The ideal path to Digital Transformation Envisage a transformed customer value proposition and operating model and build a new set of capabilities around that VALUEINDELIVERY VALUE IN PPROPOSITION Refine Extend Enhance THE WHAT THEHOW Create Leverage Integrate Source: IBM Institute for Business Value analysis END STATE
  96. 96. CUSTOMER VALUE Because consumer tastes change much faster than business’ tastes, platforms today must adapt very quickly – or face obsolescence.
  97. 97. Change the way " you innovate, look outside yourself CUSTOMER VALUE
  98. 98. PILOT A SMALL TEST IN THE REAL WORLD TO PROVE AND EVOLVE THE CONCEPT ROLLOUT "GLOBAL" IMPLEMENTATION LAB DEVELOP AND TEST IN A SIMULATED ENVIRONMENT CUSTOMER VALUE Provide a process for fast, inexpensive, and flexible experiments
  99. 99. Embrace new devices and connectivity CUSTOMER VALUE
  100. 100. Give up perfectionism CUSTOMER VALUE
  101. 101. Look beyond short term performance CUSTOMER VALUE
  102. 102. MOST RECENT DIGITAL DISRUPTIONS THOUGHT LEADERSHIFTS 1.  DIGITAL IS NOT A CHANNEL 2.  DIGITAL IS MORE THAN JUST MARKETING 3.  DIGITAL IS NOT ABOUT TECHNOLOGY ITS ABOUT CUSTOMER VALUE 4.  DIGITAL IS ABOUT INNOVATION, EXPERIMENTATION AND … TRANSFORMATION
  103. 103. HEROES OF THE DIGITAL AGE
  104. 104. HEROES OF THE DIGITAL AGE The Gang of Four
  105. 105. WHAT DO THESE COMPANIES HAVE IN COMMON?
  106. 106. They utilise a platform of multiple powerful technologies—and their intelligent use is embedded into the business at all levels CUSTOMER VALUE
  107. 107. CUSTOMER VALUE you do it alone can’t
  108. 108. CUSTOMER VALUE Now Open systems Collaborative partnerships 1990s Closed systems Limited partnerships
  109. 109. HEROES OF THE DIGITAL AGE
  110. 110. HEROES OF THE DIGITAL AGE
  111. 111. HEROES OF THE DIGITAL AGE
  112. 112. They have used digital technologies to transform their operating model for greater customer interaction " and collaboration CUSTOMER VALUE
  113. 113. Continuously reshape their offering around a continually changing customer need CUSTOMER VALUE
  114. 114. Primary functions are about consumer " utility and communications CUSTOMER VALUE To organize the worlds information To give people the power to share and make the world more open and connected. Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.
  115. 115. They embrace a culture of dynamic change CUSTOMER VALUE Source: The Change Corporation.
  116. 116. CONCLUSION
  117. 117. CONCLUSION It’s not the disruption that decides what happens to “ your company you respond It’s how to it.
  118. 118. CONCLUSION !   A continuous finger on the pulse of what the customers need and want as well as how they feel about your brand !   Acceptance of the innovation process (including the ability to fail) !   Structured innovation budgets (as a percent of revenue) !   Systems to identify, fund and evaluate innovation projects. !   A collaborative culture of continuous learning through knowledge sharing and insights Winners in the digital age will have:
  119. 119. NO MATTER WHAT YOUR ROLE" BE THE CHANGE " YOU WANT TO SEE
  120. 120. THANK YOU jenny@ideagarden.com.au www.ideagarden.com.au … or find me on linked in

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