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Deloitte Digital NL - State of the digital nation
 

Deloitte Digital NL - State of the digital nation

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  • Full Name Full Name Comment goes here.
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  • You're welcome Pannaga, If you'd like more details on any of the topics then don't hesitate to reach out.
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  • Thanks Victor. Very insightful. We definitely are at a cusp of time where technology no longer is an after-thought but a key driver in the digital age. Deloitte digital nl is at the helm of this revolution.
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  • The pace of change is acceleratingexponentially – but do youreallybelieveit? do youreally accept it?Morgan stanley report (mary mee
  • WearablesAugmentedreality on Google GlassMeasuring body related dataGPS NavigationSensorsShopper interaction monitoringGoodslocation, temperature, out-of-stock monitoringAnalysis of in-store traffic flow
  • Technology has grownrapidly to be the numberone concernIBM CEO studycapitalizing on complexity
  • Using digital to go direct12619581
  • Then, Blockbuster declines several offers to buy Netflix for $50 million.Read more at http://www.omg-facts.com/Business/Blockbuster-Declined-Several-Offers-To-B/54217#oF3lIKKlcBGBLZUy.99 
  • Accelerating digital innovation:Start-up activity is hotterthan ever. Start-upscan get to Xm users and $Xmrevenue in record times. These are disrupting the market andincumbentorganistions must alsoadoptthis culture
  • Using digital to go direct12619581
  • Challenges – market data points Alignment across the organisationRequires a combination of different skills/knowledge. Technology, marketing, business rigour, supply chain, tax
  • Challenges – market data points Alignment across the organisationRequires a combination of different skills/knowledge. Technology, marketing, business rigour, supply chain, tax
  • Using digital to go direct12619581
  • Research goalsAssert that digital technologies allow organisations to be more customer centricShow how goal 1 can be proved using just one platform for online reviews – BazaarVoiceEstablish credibility of fact-based researchResearch methodDescribe the customer journey and the impact on the company key functionsDetermine and set hypotheses to test how product reviews can help to improve the company key functionsApply a statistical research method to test the hypothesesTest the hypotheses and draw conclusions based on the findingsResultsDescribe a future where other sources of data via digital channels could be used. Potentially re-use other findings from other data sources (maybe we merge this with the above)Provide advice on the high-level steps for an organisation can become more customer centric using our target operating model playbook
  • All retailers have a positive NPS, the bulk is higher than 50% which is considered very good on a scale of -100% to 100%The bulk of product ratings varies between 3,5 and 4,5 on a scale of 0-5 Retailer’s average rating of the products they are selling and their average NPS are significantly correlated:Retailers with a high average product rating have a high average NPSCustomers that are satisfied with the retailer’s products are also more likely to be loyal to that retailerAverage product rating and customer loyalty is the lowest for retailers in the Consumer Electronics industryAverage product rating and customer loyalty has the highest spread for retailers in the Home Improvement industry Average customer loyalty is the highest for retailers in the Drugstores industry
  • NPS is a measure of customer loyalty and advocacyFor high scoring NPS businesses complaints regarding customer service are less than 1% of total issues raised by the customerThe best performing businesses have do not suffer from an increase in customer service issues during the Christmas period
  • Using digital to go direct12619581
  • STRATEGYTo support the ~30% growth of its online businesses, Deloitte helped to develop a long-term Cross Channel strategy to support operational integration across channels. Deloitte identified “quick win” opportunities to improve the macys.com businesses’ capabilities and tools to drive continued aggressive growth. The result is a strategic direction, set of future-state processes, and a business case for Macy’s Cross Channel strategy.Inventory Visibility –Deloitte has supported numerous CPG companies to gain visibility of inventory across business channels and locations supporting intelligent order allocation and driving additional sales whilst reducing stocks holdingDelivery and AvailabilityIn turn this has been applied to support significant improvements in‘On time in full’ delivery and manage the cost of returning and reworking products
  • Using digital to go direct12619581
  • We are modelling business, competitor and social data for over 450 recent titles industry-wide to understand title-specific behaviour of upcoming releases,isolating the sales impact of their social media activities over and above other purchase drivers such as box office performance and discountingThe managed service gives the team access to a) Predictive scenario analysis tool b) Deloitte Insight Reports for individual titlesenabling Sony Pictures to apply the analytics throughout new release campaigns from planning through to post campaign review
  • Using digital to go direct12619581

Deloitte Digital NL - State of the digital nation Deloitte Digital NL - State of the digital nation Presentation Transcript

  • State of the digital nation A snapshot of the digital market September 2013
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Presenting to you today... 2 • Director Consumer Business • Focused on helping consumer business organisations shape and deliver digital and cloud initiatives • Lead the Deloitte research project on digital conversations in collaboration with Bazaarvoice • Research group chairman for Shopping 2020 (www.shopping2020.nl) • Recent clients include Canon, Heineken, Coca-cola, Mexx and Ahold Victor Hoong Director Deloitte Consulting B.V. Laan van Kronenburg 2 1183 AS Amstelveen The Netherlands Direct: +31 88 288 71 55 Mobile :+31 6 1312 7261 E-mail: vhoong@deloitte.nl @vhoong http://nl.linkedin.com/in/victorhoong/
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Minicomputer 1bn+ units 10bn+ units? 100m+ units Desktop internet Technology change is accelerating exponentially 3 Mainframe PC Mobile internet 1960 1970 1980 1990 2000 2010 2020 Devices/Users(inmillionsinlogscale) 1 10 100 1000 10,000 100,000 1,000,000 Computing growth over time 1m+ units 10m+ units Year Source: Morgan Stanley 2010
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 4 Smartphones (1.5bn units) Tablets (200m units) Consumer businesses need to deal with the rapid arrival of new and overlapping engagement channels 2007 Sensors, Nanotech 2010 2013 Wearables Time
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 5 Technology is the number one concern for CEOs today Technology factors People skills Market factors Macro-economic factors Regulatory concerns Globalization Socio-economic factors Environmental issues Geopolitical factors 84% 42% 33% 67% 48% 56% 71% 44% 48% 39% 69% 41% 35% 69% 37% 2004 2006 2008 2010 2012 Source: IBM Global CEO study
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 6 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 7 There is an increased appetite for structured innovation programmes and corporate venture teams 25% of corporate global R&D budgets will shift towards open innovation programs, startup acceleration and startup incubator programs in 2013
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Deloitte Fast Ventures has been launched in response to a lack of start-up market transparency Technology ventures Security and Privacy Corporate needs Digital payment Analytics Retail engagement Gamification 8
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 9 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Heineken asked us to help strategize how to drive revenues from the digital opportunity
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. We worked with Diageo to help them approach consumer directly through digital to drive new revenues For me For you For many Buying for yourself e.g. stocking drinks cabinet Gifting for someone else e.g. special occasion Corporate gifting e.g. recognition reward
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 12 Canon asked us to support them in prioritising their digital initiatives and defining their digital strategy
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 13 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. We undertook a digital study to learn from customer reviews 7.8m customer reviews 230 businesses
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Average NPS versus average Product Rating 15 AverageNPS Consumer Electronics Mass Merch. & Gen. Home Improvement Books, Toys, CD/DVDs Apparel Drugstores Transportation Sports Products Travel Average product rating 3.0 3.5 4.0 4.5 5.0 0 25 50 75 100 Retailers can increase customer loyalty by selling products that generate high customer satisfaction
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 16 Top performers drive customer issues to below 1% of total customer feedback Percentage of Customer Service issues per NPS category Xmas period mid-Nov to end Dec. 5 4 3 2 1 0 8 7 6 Oct-12 Sep-12 Aug-12 Jul-12 Jan-12 Apr-12 Mar-12 May-12 Date Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Feb-12 Jun-12 High 70- 90 Med 55- 70 Low 8- 55 %ofreviewswithaservicecomplaint Retailer NPS category:
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 17 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 18 Leading retailers must find supply chain improvements to support the online channel Business case for aligned supply chain channel management Average 5 -15% reduction in inventory costs, reduced write-offs 5-15% reduction of cost -to-deliver / returns management Strategy • Macy’s, Kohl’s and Musician's friends Inventory Visibility • Sony, Coke, Sainsbury’s Delivery & Availability • Nike, Warner Brothers, Tesco 24 Macy CEO Terry Lungren – (referring to fulfilling online orders from store) ‘’The benefit of avoiding a mark down almost always outweighs the shipping cost‘’ Nordstrom attributes 39% on line sales increase to integrating on line / in store inventories Online sales have increased 30% since they started to use stores as back up fulfillment centers
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 19 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. Sony Pictures Home Entertainment are utilising social analytics to support decision-making on new releases The model: • Proves the causal relationship between social media and sales • Identifies key social media KPIs driving sales (e.g. volume, sentiment, reach, engagement etc.) • Quantifies return on investment of individual social media activations across social platforms • Optimises marketing spend and channel mix between social media and above-the- line activity. Title characteristics Market data Social & search data Non-linear econometric model
  • Deloitte Digital Copyright © 2013 Deloitte Holding B.V. All rights reserved. 21 Growth accelerated through start-ups Digital driving incremental revenues Insights from online consumer feedback The omni-channel supply chain Social analytics reveals marketing ROI 1 2 3 4 5 A snapshot of the digital market...
  • Thank you