Transform to the power of digital
COMPETITIVE
ADVANTAGE OF
DIGITAL
TRANSFORMATION
&
SOCIAL CRM
Martin Hack
Head of Salesfo...
2
Social Business and Digital Transformation – the mega trends are undoubted
CustomerExperience
Digital Shopper Relevancy
...
3
Copyright © 2013 Capgemini Consulting. All rights reserved.
...but: is there a measurable impact on revenue, profit or s...
CapgeminiConsultingand BostonMIThave teamed up to analyse why
some companies successfully embrace Digital Transformation w...
We assess the DigitalMaturityof organizations as a combination of two separate
but related dimensions: Digital Intensity a...
The twodimensionsspell out four different types of digital maturity defining the
alchemy of success in Digital Transformat...
We quantifiedthe digital maturity of 391companies and analyzed their financial
performance
7
* Of the 391 companies in our...
Companies that are mature on the digital intensity dimension are
better at driving revenue through their existing assets
D...
Companies that are mature in the transformation management intensity
are more profitable
Transformation Management Intensi...
Companies that are mature in the transformation management intensity
achieve higher market valuations
Transformation Manag...
The digital transformation performance varies across industries– but in all
industries there are outperformers and followe...
12
…so simple? Still our benchmarks and studies show:
There is a gap between perceived need for action and reality
Copyrig...
Social CRM – Hype or competitive advantage?
Example from our annual CRM Barometer:
though digital and social CRM has high ...
There are patterns regarding areas of improvement that are typically targeted
14
Digital Transformation offers a huge vari...
The Customer Experience Transformation approach of Capgemini Consulting presents a
structured and pragmatic way to create ...
Customer journeys allow organizations to view themselves from
the customer’s point of view. They identify:
 All touch poi...
Customers expect the same experience across the different channels, so companies need
to consider all of their channels wh...
18
As leader for digital transformation we work on extraction of the DNA of
successful digital transformations – and how t...
Step 1: Assess where you are with our DigitalMaturityAssessment
based on industry benchmarks
19
1) DMA = Digital Maturity ...
Step 2: Design the your transformationpathdepending based on
your specific context (various examples deliver orientation)
...
DIGITAL MATURITY MATTERS
IT MATTERS IN EVERY INDUSTRY
AND THE APPROACHES THAT DIGITALLY
MATURE COMPANIES USE CAN BE
ADOPTE...
For details on our Thought Leadership, please visit:
www.capgemini-consulting.com/think
For details on our Digital Maturit...
2013 03-05 competitive advantage of digital transformation
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2013 03-05 competitive advantage of digital transformation

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Digital maturity matters

It matters in every industry

And the approaches that digitally mature companies use can be adopted by any company that has the leadership drive to do so

The future is arriving quickly. Take action now to create your own digital advantage

Published in: Business

2013 03-05 competitive advantage of digital transformation

  1. 1. Transform to the power of digital COMPETITIVE ADVANTAGE OF DIGITAL TRANSFORMATION & SOCIAL CRM Martin Hack Head of Salesforce.com at Capgemini Consulting D/A/CH Hannover, 5th March 2013
  2. 2. 2 Social Business and Digital Transformation – the mega trends are undoubted CustomerExperience Digital Shopper Relevancy Social Insights SocialBusiness All Channel Experience Realtime Personalisation Copyright © 2013 Capgemini Consulting. All rights reserved. “…develop a new business, which is not only selling skis, but also selling services and dreams” Rossignol (Ski Equipment) “We’re creating a world, where the car becomes a friend to its owner” Toyota “You have to be totally connected with anyone who touches your brand” Burberry We’re going to change the way banking happens” Commonwealth Bank “Become more social, both in terms of how we communicate internally and how we communicate with our customers” O2 “Linear interaction […] is not longer valid” Virgin America “The social enterprise will be the differentiator on how we interact with our customers, our employees and our partners” Hewlett-Packard “We need to interact with customers the ways that work best for them Activision” (Video Games) “You need a view on all the touch points to understand the customer” GE GlobalCollaboration Machine2Machine communication
  3. 3. 3 Copyright © 2013 Capgemini Consulting. All rights reserved. ...but: is there a measurable impact on revenue, profit or shareholder value?
  4. 4. CapgeminiConsultingand BostonMIThave teamed up to analyse why some companies successfully embrace Digital Transformation while others fail 4 „Digital Transformation: A roadmap for Billion-Dollar Organisations“ is ranked among the top five best publications in the last 10 years.¹ ONE COOPERATION WITH …OVER 450 INTERVIEWS WITH IT AND BUSINESS EXECUTIVES …OF MORE THAN 390 COMPANIES …MANY OF THEM BILLION-DOLLAR ENTERPRISES …THREE RESEARCH PHASES OVER MULTIPLE YEARS Source: White Space – a leading institute for market research in the consulting sector, 2012 Copyright © 2013 Capgemini Consulting. All rights reserved.
  5. 5. We assess the DigitalMaturityof organizations as a combination of two separate but related dimensions: Digital Intensity and Transformation Management Intensity 5 Digital Intensity: investment in technology-enabled initiatives to change the way a company operates ‒ customer engagements, internal operations, business models. Transformation Management Intensity: creating the leadership capabilities necessary to drive digital transformation in the organization. Location-based marketing Digital Design Connected Products Mobile sales Customer Service in Social Media … Digital Vision Cross-silos coordination New skills Cultural change … Copyright © 2013 Capgemini Consulting. All rights reserved.
  6. 6. The twodimensionsspell out four different types of digital maturity defining the alchemy of success in Digital Transformation: Style and substance 6 Transformation Management Intensity DigitalIntensity BEGINNERS Beginners… …carry out some experiments, immature digital vision and culture FASHIONISTAS Fashionistas … … have advanced digital features in silos but no overarching vision and coordination CONSERVATIVES Conservatives… … have few advanced digital projects, coordinated but underdeveloped vision DIGIRATI Digirati… ...have strong vision and governance. Digital initiatives generating measurable benefits. Copyright © 2013 Capgemini Consulting. All rights reserved.
  7. 7. We quantifiedthe digital maturity of 391companies and analyzed their financial performance 7 * Of the 391 companies in our sample, 184 were publicly traded We analyzed financial data & interviewed top- executives from all the publicly-traded companies in our sample* ** Industry adjusted FY2011 financial performance for 184 publicly traded firms, controlling for geography Transformation Management Intensity DigitalIntensity Copyright © 2013 Capgemini Consulting. All rights reserved. Digitally-mature companies are achieving statistically significantly better financial performance**
  8. 8. Companies that are mature on the digital intensity dimension are better at driving revenue through their existing assets Digital Intensity and RevenueGeneration 8 Basket of indicators:  Revenue / Employee  Fixed Assets Turnover (Revenues / Property, Plant & Equipment) +6% +9% -4% -10% Copyright © 2013 Capgemini Consulting. All rights reserved.
  9. 9. Companies that are mature in the transformation management intensity are more profitable Transformation Management Intensity and Profitability 9 Basket of indicators:  EBIT Margin  Net Profit Margin -11% +26% -24% +9% Copyright © 2013 Capgemini Consulting. All rights reserved.
  10. 10. Companies that are mature in the transformation management intensity achieve higher market valuations Transformation Management Intensity and MarketValuation 10 Basket of indicators:  Tobin’s Q Ratio  Price / book ratio -12% +12% -7% +7% Copyright © 2013 Capgemini Consulting. All rights reserved.
  11. 11. The digital transformation performance varies across industries– but in all industries there are outperformers and followers Copyright © 2013 Capgemini Consulting. All rights reserved. 11 Banking Consumer Packaged Goods Insurance Manufacturing Pharmaceuticals Retail High Technology Telecoms Travel and hospitality Utilities Average industry maturity: Telcos  Fast to launch digital initiatives  Need to integrate and align initiatives across silos Retailers  Strong in social and mobile  Need to focus on cross-channel consistency, worker enablement and analytics Manufacturers  See less opportunity / threat in digital transformation  Need a transformative digital vision and the leadership drive to develop impetus Insurers  Strong digital governance capabilities, but  Regulatory worries and a risk- averse culture
  12. 12. 12 …so simple? Still our benchmarks and studies show: There is a gap between perceived need for action and reality Copyright © 2013 Capgemini Consulting. All rights reserved.
  13. 13. Social CRM – Hype or competitive advantage? Example from our annual CRM Barometer: though digital and social CRM has high potential it is not fully leveraged up to now 13 2/3 of the companies aim at creating a uniform customer experience, both online and offline… ... of which 55 % find it challenging to harmonise the customer contact points through all the channels … of the companies see highest potential in social CRM for winning additional customer information… ... However 7 out of 10 companies evaluate their present capabilities to be insufficient for social media data analysis For 8 out of 10 companies, the high relevance of digital media and social media leads to a relaunch of their CRM strategy… … only 13 % of all the companies have already integrated their social media activities in their CRM strategy …of the companies predict a further increase in the relevance of social media… ... Only 8 % of the companies have established practical business processes for tapping the full potential of social CRM Copyright © 2013 Capgemini Consulting. All rights reserved.
  14. 14. There are patterns regarding areas of improvement that are typically targeted 14 Digital Transformation offers a huge variety of potentials for top-line growth and operational excellence  Customer analytics and insights  Service adoption and information  Crowd sourcing of ideas  Innovation management platforms for employees and partners  Collaboration platforms (internal/partners)  E- and mobile learning/training  Marketing, sales and service automation  Additional revenues through digital channels and ad-hoc services  Customer and brand engagement  Customer service in social media Copyright © 2013 Capgemini Consulting. All rights reserved.  Extended / smart products and services  Retention management through predictive / Next best action EXAMPLE
  15. 15. The Customer Experience Transformation approach of Capgemini Consulting presents a structured and pragmatic way to create a strong Customer Experience 15 Customer Experience Strategy Customer Journeys Customer Experience Transformation Customer Measurement 2 3 4 5 CustomerExperienceTransformation Customer Insight1 Establish your desired perception Analyze a sequential set of customer activities Redesign processes & improve the experience Optimize the Customer Experience Get to know your customers Copyright © 2013 Capgemini Consulting. All rights reserved.  Marketing, sales and service automation DEEP DIVE  Additional revenues through digital channels and ad-hoc services
  16. 16. Customer journeys allow organizations to view themselves from the customer’s point of view. They identify:  All touch points & steps that a customer takes  The current offer of the company at each of these steps Customer journeys represent the end-to-end activities that are needed to satisfy customer needs and resolve questions, all seen through the eyes of the consumer 16 Which interaction points are considered as most crucial by customers? This is where companies should impress their customers Customer journeys put companies in a customer-centric frame of mind Moments of truth I want to know which product suits my needs best I know which product to buy I want to be inspired with product images I want to compare the products and see reviews I need to choose what is important for me I want to speak an advisor Be inspired by the website with product info Check reviews, comparisons , wikipedia & youtube Choose my essential requirements Receive advice to help me with my choice J1: Product Discovery ! ! Moment of truth Awareness Discover Purchase Receive Use Get help Cancel / Renew Customer Journeys3 Copyright © 2013 Capgemini Consulting. All rights reserved. Example
  17. 17. Customers expect the same experience across the different channels, so companies need to consider all of their channels when designing customer journeys 17 Awareness Discover Purchase Receive Use Get help Cancel / Renew Touch point x EXAMPLE: Cross-channel customer journey x x x x x x x x x Wow moment Channel switch J1 Product Discovery J3 Seamless UpdateJ2 Service Excellence Illustrative only Web-Site Social Networks Webshop/ Retail At home Customer Service Align and synchronize all channels & install “wow-moments” Copyright © 2013 Capgemini Consulting. All rights reserved. Customer Journeys3
  18. 18. 18 As leader for digital transformation we work on extraction of the DNA of successful digital transformations – and how this can apply to you Copyright © 2013 Capgemini Consulting. All rights reserved. Customer Experience Operational Processes Business Model
  19. 19. Step 1: Assess where you are with our DigitalMaturityAssessment based on industry benchmarks 19 1) DMA = Digital Maturity Assessment  Structured questionnaire to assess the company’s ‒ Transformation Management Intensity ‒ Digital Intensity  Contains benchmarks of leading global corporations DMA1 Tool www.capgemini-consulting.com/dma Are you behind? Customer understanding Customer experience Process automationDecision making HR processes Top performers of the industry based on MIT-CC surveyYour positioning based on CC maturity model Are you aligned on priorities? Vision Engagement GovernanceSkills Ways of working
  20. 20. Step 2: Design the your transformationpathdepending based on your specific context (various examples deliver orientation) 20 Source: Capgemini Consulting – Digital Services Strategy – Technology Transformation (c) 2011 Copyright © 2013 Capgemini Consulting. All rights reserved. +6% +9% -4% -10% -11% +26% -24% +9% -12% +12% -7% +7% Start building a strong vision on digital:  how to leverage digital on our core assets?  For which objectives?  At what pace?  Which investment?  What are the key impacts ? Then, start implementing new digital initiatives In most cases, it will be necessary to  rationalize the firms’ digital landscape,  to build the right organization and governance towards digital, before restart developing digital services.  Digital conservatives companies have already build strong vision focus on business areas and some digital services.  It will be possible to build on these solid roots to increase leverage of digital advantage at global scale RevenueProfitabilityValue
  21. 21. DIGITAL MATURITY MATTERS IT MATTERS IN EVERY INDUSTRY AND THE APPROACHES THAT DIGITALLY MATURE COMPANIES USE CAN BE ADOPTED BY ANY COMPANY THAT HAS THE LEADERSHIP DRIVE TO DO SO THE FUTURE IS ARRIVING QUICKLY. TAKE ACTION NOW TO CREATE YOUR OWN DIGITAL ADVANTAGE Copyright © 2012 MIT CDB and Capgemini Consulting
  22. 22. For details on our Thought Leadership, please visit: www.capgemini-consulting.com/think For details on our Digital Maturity Assessment, please visit: www.capgemini-consulting.com/dma Martin Hack Head of Salesforce.com – D/A/CH Capgemini Consulting Karlstrasse 12, D-80333 Munich Phone: +49 151 4025 1418 E-Mail: martin.hack@capgemini.com
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