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Digital Transformation Ashley Friedlein CEO Econsultancy

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Digital Transformation Ashley Friedlein CEO Econsultancy

  1. 1. Digital Transformation: what it is & how to get there Ashley Friedlein, CEO, Econsultancy @AshleyFriedlein
  2. 2. | 2013 | Digital Transformation NOTE: this presentation is licensed under Creative Commons (Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0)) | 2 Your are free to share, copy, distribute and transmit the work Editable PowerPoint version of this presentation, with commentary in the notes, and including builds, is available to Econsultancy subscribers on the Econsultancy site.
  3. 3. | 2013 | Digital Transformation| 3 Ashley is the CEO and Co-founder of Econsultancy, a research and training group with over 200,000 subscribers. Econsultancy provides access to data, best practice guides, trends, training and events - all focused on improving digital skills and digital marketing and ecommerce effectiveness. Econsultancy was founded in 1999 and has offices in London, New York and Singapore. Ashley has written two books on digital marketing which have sold over 40,000 copies. He is a columnist for Marketing Week magazine and guest contributor to numerous other digital media and marketing publications. He writes for Econsultancy’s own award-winning blog and speaks at events internationally, actively promoting Econsultancy’s brand and content as well as the interests of digital and marketing professionals more generally. About the author Interested in Ashley presenting to you? Please see contact details on final slide
  4. 4. | 2013 | Digital Transformation Contents | 4  Digital Transformation  Strategy  Technology  People  Process  Business Transformation
  5. 5. | 2013 | Digital Transformation Digital Transformation
  6. 6. | 2013 | Digital Transformation What is Digital Transformation? | 6  Digital Transformation is the journey from where a company is, to where it aspires to be digitally.
  7. 7. | 2013 | Digital Transformation What is a ‘digital’ organisation? | 7 A digital organisation is one that: 1. Focuses on customer experience irrespective of channel 2. Has a ‘digital’ culture
  8. 8. | 2013 | Digital Transformation Net-a-Porter is a successful digital business. What do they obsess about? | 8 Customer Service Packaging “EIP”s
  9. 9. | 2013 | Digital Transformation Who is better at digital based on the packaging / unboxing experience? | 9
  10. 10. | 2013 | Digital Transformation Amazon’s relentless focus on improving the customer experience | 10 Sources: Amazon, Oracle
  11. 11. | 2013 | Digital Transformation What is most impressive about Amazon? The digital part of the customer experience? Or the delivery? | 11
  12. 12. | 2013 | Digital Transformation Perhaps most ‘transformative’ is where digital meets physical to enrich the customer experience | 12
  13. 13. | 2013 | Digital Transformation *The* strapline for a digital organisation? | 13
  14. 14. | 2013 | Digital Transformation What is a digital culture? | 14 7. Empowered 8. Data-driven 9. Passion 10. Innovative 11. Agile Suggestion: Hire for culture / personality and not (just) digital skills. The latter can be taught. 1. Commercial 2. Customer-centric 3. Transparent 4. Collaborative 5. Environment 6. “Growth hacker”
  15. 15. | 2013 | Digital Transformation Perhaps you know you are digital / digitally transformed when… | 15  No-one in your company has ‘digital, online, e-, interactive…’ in their job title  There is no separate ‘digital strategy’  Real-time retargeted dynamic online ads based on social profile data #whatever  Posters in the underground #howcoolisthat
  16. 16. | 2013 | Digital Transformation Econsultancy’s Digital Maturity Framework: roadmap to digital excellence | 16 Digital Excellence
  17. 17. | 2013 | Digital Transformation Success is down to leadership… | 17 Source: McKinsey Global Survey, August 2013
  18. 18. | 2013 | Digital Transformation ..and organisational alignment | 18 Source: Econsultancy User Survey, Sept 2013
  19. 19. | 2013 | Digital Transformation But only 1 in 10 marketing and IT executives believe collaboration between CMOs and CIOs is at the right level | 19 Source: The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity, Accenture Interactive
  20. 20. | 2013 | Digital Transformation 33% see Digital Transformation as a ‘huge challenge’ | 20 Source: Econsultancy User Survey, Sept 2013
  21. 21. | 2013 | Digital Transformation 27% of execs rate digital transformation as already “A Matter of Survival” | 21 Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013
  22. 22. | 2013 | Digital Transformation| 22 “Executives estimate that at best, their companies are 25% of the way toward realizing the end-state vision for their digital programs” Source: McKinsey Global Survey, Aug 2013
  23. 23. | 2013 | Digital Transformation How do you actually make it happen at scale, across the whole organisation? | 23 1. Create the right environment for ‘osmotic’ digital transformation  Incentivising the right behaviours  New blood/digital natives  Show/prove the value of digital to all  Digital culture 2. LEAD the transformation  CEO should own/drive this
  24. 24. | 2013 | Digital Transformation| 24 "Demand is growing for insight into digital business, particularly among CEOs” Source: Diane Morello, managing vice president, Gartner, 2013
  25. 25. | 2013 | Digital Transformation| 25 "31% say their CEOs personally sponsor these [digital] initiatives, up from 23% who said so in 2012. [...] the CEO is the only executive who has the mandate and ability to drive such a cross-cutting program.” Source: McKinsey Global Survey, Aug 2013
  26. 26. | 2013 | Digital Transformation| 26 Jez Frampton, Global CEO, Interbrand, on x-channel experiences + importance of executive/CEO support (00:46 - 01:20)
  27. 27. | 2013 | Digital Transformation| 1 Feb 2010 | LV= Strategy Day, Econsultancy Presentation| 27 Strategy
  28. 28. | 2013 | Digital Transformation What should be in a Digital Strategy? (1) | 28 Strategy •Make it clear how the digital strategy supports the overall business strategy. •Business plan/P&L for digital as necessary. •Articulate short, medium and long term plan/vision for digital. For example it may well be that in the long term the objective is that ‘digital’ will dissolve back into the business so structures, roles, P&Ls etc will change over time. •Define digital principles and digital design principles. Focus should be user- centred design and customer experience •Define “what good looks like” for digital: KPIs, success metrics, what analytics/reporting are planned
  29. 29. | 2013 | Digital Transformation What should be in a Digital Strategy? (2) | 29 People/Process •Digital governance: who makes decisions and how? Who are the leaders for digital? •Structure: organisational design, teams, roles and responsibilities for digital •Culture for digital: define how you plan to work (agile, iterative), your planned environment, your values e.g. sharing, transparency, collaboration •Training, education, empowerment, integration of digital across the business. Articulate how you plan to bring digital to the whole business, break down knowledge, and other, silos.
  30. 30. | 2013 | Digital Transformation What should be in a Digital Strategy? (3) | 30 Tech/Ops •Your plans around content, community, commerce •Digital tech: infrastructure, architecture and ecosystem inc. points of integration across business •Data: metadata, taxonomy, integration with rest of business and systems e.g. CRM, sales •Tech Standards: standards/protocols you intend to use/comply with •Legal: data protection, privacy, IP/rights policies, licences etc. •Procurement: define who is in charge of digital tech and agency procurement/selection (should be digital specialists) •Define tools/environment the digital team will require to do their jobs effectively
  31. 31. | 2013 | Digital Transformation What should be in a Digital Strategy? (4) | 31 Marketing/Sales •Plans/resourcing around customer lifecycle: customer acquisition, conversion, retention (including online customer service) •Address plans around digital marketing fundamentals: advertising, email / eCRM, content marketing, social, mobile, search marketing, customer experience, analytics/optimisation
  32. 32. | 2013 | Digital Transformation| 32 Source: Tate website Tate’s digital strategy evolution
  33. 33. | 2013 | Digital Transformation| 33 GOV.UK digital & design principles
  34. 34. | 2013 | Digital Transformation Technology
  35. 35. | 2013 | Digital Transformation Even politics has experienced the rise of tech • Obama’s 2008 presidential campaign team had 4 engineers working on it • Obama’s 2012 campaign team had a team of how many engineers? 40!
  36. 36. | 2013 | Digital Transformation| 36 By 2017 the CMO will spend more on IT than the CIO Source: Gartner, 2013
  37. 37. | 2013 | Digital Transformation| 37 66% strongly agree that: Marketing is becoming increasingly technology-driven Source: Econsultancy User Survey, 2013
  38. 38. | 2013 | Digital Transformation| 38 Source: McKinsey Institute, “Disruptive technologies: Advances that will transform life, business, and the global economy” Most future disruptive technology relates directly to digital business transformation
  39. 39. | 2013 | Digital Transformation However… although 90% of professionals say tech impacts their job, only 20% have the right skills Source: Research for Digital Domination Summit 2012 (2,000 professional respondents)
  40. 40. | 2013 | Digital Transformation| 40 *Which* technology is much less important than organisational alignment with IT “Marry the technologists”
  41. 41. | 2013 | Digital Transformation People
  42. 42. | 2013 | Digital Transformation| 42 Structure
  43. 43. | 2013 | Digital Transformation| 43 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide Stage 1: Let many digital flowers bloom… BBC 1997-2001
  44. 44. | 2013 | Digital Transformation| 44 Stage 2: Dedicated Digital Team / CoE BBC 2001-2006 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide
  45. 45. | 2013 | Digital Transformation| 45 Stage 3: Hub & Spoke BBC 2007-2012 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide
  46. 46. | 2013 | Digital Transformation| 46 Stage 4: Multiple Hub & Spoke BBC 2012 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide
  47. 47. | 2013 | Digital Transformation| 47 Digital Enlightenment = “Honeycomb”
  48. 48. | 2013 | Digital Transformation| 48 Culture
  49. 49. | 2013 | Digital Transformation Culture is one of the most significant barriers to digital transformation | 49 Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013
  50. 50. | 2013 | Digital Transformation What is a digital culture? (recap) | 50 7. Empowered 8. Data-driven 9. Passion 10. Innovative 11. Agile 1. Commercial 2. Customer-centric 3. Transparent 4. Collaborative 5. Environment 6. “Growth hacker”
  51. 51. | 2013 | Digital Transformation| 51 Nordstrom: “What we want in a teammate” “Customer-driven” “Constantly changing” “Collaborative” “Curiosity” “Passion” “Always learning”
  52. 52. | 2013 | Digital Transformation| 52 Roles & Responsibilities
  53. 53. | 2013 | Digital Transformation| 53 “Pi-shaped” people: broad skills but depth in creative / marketing AND tech / data (left and right brain) T
  54. 54. | 2013 | Digital Transformation Growth Hacker • From Silicon Valley • Combines marketing with product development • About getting to points of sustainable growth with new products/services • AirBnB case study: Growth Hacker is the new VP Marketing
  55. 55. | 2013 | Digital Transformation| 55 Product Manager Source: Mind the Product
  56. 56. | 2013 | Digital Transformation| 56 One way to do it... from CIO to CMO Ali Hine CIO CMO, IG Group
  57. 57. | 2013 | Digital Transformation| 57 To CDO or not to CDO? Source: Econsultancy “30% of respondents have a CDO. [those with a CDO] indicate significantly more progress toward their digital vision than those without one” McKinsey Global Survey, 2013 Suggestion: CDO should be an interim role. CDO should report to CEO.
  58. 58. | 2013 | Digital Transformation New job descriptions for HR to understand | 58 Source: Econsultancy
  59. 59. | 2013 | Digital Transformation How do you attract top digital talent? | 59  Digital vision – a clear strategy and the opportunity “to make a difference”  Product – the chance to create a beautiful product / experience  Talent begets talent - get to work with other talent, digital ‘craft’  Culture - you have a digital culture (see earlier)
  60. 60. | 2013 | Digital Transformation| 60 Environment
  61. 61. | 2013 | Digital Transformation| 61 BBC W1 – tech + editorial together
  62. 62. | 2013 | Digital Transformation| 62 BBC Salford, Google London – open / collaborative / ‘ad hoc’ spaces Space echoes working practices: small, rounded teams; fluid / agile; mixing disciplines; no hierarchy.
  63. 63. | 2013 | Digital Transformation Process
  64. 64. | 2013 | Digital Transformation Four big challenges for digital / process | 64 1. Multi-disciplinary 2. Speed / Agility 3. Complexity 4. Innovation
  65. 65. | 2013 | Digital Transformation| 65 How we need to work “A successful digital culture is reliant on innovation, openness and responsiveness.” Rachel Neaman, Department of Health, Deputy Director, Digital, Channel Strategy and Publishing “Being able to change at speed is very important. We know government can move quickly because we built the new e-petitions system in less than 2 months.” Sharon Cooper, Government Digital Service, Cabinet Office, Deputy Director “Transformation means a change in culture and process in order to deliver change and make sure that we are seen by our customers to be innovating and moving forward.” Simon Shorey, Barclays, Head of Development, UK Retail and Business Banking
  66. 66. | 2013 | Digital Transformation| 66 Multi-disciplinary: Amazon’s “two pizza” teams + co-located + manage by objectives / “freedom within boundaries”
  67. 67. | 2013 | Digital Transformation How do we deal with the need to operate at SPEED?! Real time On demand Agile Automation Responsive
  68. 68. | 2013 | Digital Transformation| 68 Agile – for software development Manifesto for Agile Software Development We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more.
  69. 69. | 2013 | Digital Transformation| 69 Agile – for marketing
  70. 70. | 2013 | Digital Transformation| 70 Nordstrom Innovation Lab
  71. 71. | 2013 | Digital Transformation | 71 Speed is a vital source of competitive advantage in digital
  72. 72. | 2013 | Digital Transformation | 72 Google’s USP has always been speed?
  73. 73. | 2013 | Digital Transformation | 73 From mere fast to Now. Predictive. Push.
  74. 74. | 2013 | Digital Transformation | 74 iOS7’s “background refresh” – improving the speed / responsiveness of the user experience “more recent information... content fresh and ready... no need to wait... massive improvement in customer experience” Eventbrite, Yplan, Realmac
  75. 75. | 2013 | Digital Transformation 1-3 days: if a video is to go viral | 75 Source: Unruly “Science of Sharing”, July 2013
  76. 76. | 2013 | Digital Transformation < 6 hrs: half your email opens occur | 76 Source: Mailer Mailer
  77. 77. | 2013 | Digital Transformation < 3hrs: 50% of clicks on shared links | 77 Source: bit.ly
  78. 78. | 2013 | Digital Transformation | 78 00:01 – Twitter is ‘Marketing in the Moment’
  79. 79. | 2013 | Digital Transformation The Stalagmite vs. the Conductor | 79
  80. 80. | 2013 | Digital Transformation| 1 Feb 2010 | LV= Strategy Day, Econsultancy Presentation| 80 Business Transformation
  81. 81. | 2013 | Digital Transformation| 81 The rate of change is accelerating at a business level too “The average lifespan of an S&P 500 company has decreased by more than 50 years in the last century, from 67 years in the 1920s to just 15 years today” Source: Professor Richard Foster, Yale University
  82. 82. | 2013 | Digital Transformation| 82 “By 2020, more than three- quarters of the S&P 500 will be companies that we have not heard of yet.” Source: Professor Richard Foster, Yale University
  83. 83. | 2013 | Digital Transformation| 83 The journey towards digital excellence Source: Econsultancy Digital Maturity Framework
  84. 84. | 2013 | Digital Transformation Burberry – doing well because of ‘digital transformation’? | 84 Source: The Digital Advantage: How digital leaders outperform their peers in every industry, CapGemini / MIT Sloan Management
  85. 85. | 2013 | Digital Transformation Digitally-transformed busineses outperform their peers in every industry | 85 Source: The Digital Advantage: How digital leaders outperform their peers in every industry, CapGemini / MIT Sloan Management Profitability
  86. 86. | 2013 | Digital Transformation| 86 Digital Transformation is actually Business Transformation
  87. 87. | 2013 | Digital Transformation| 87 Digital Transformation with Econsultancy We can measure your organisation’s digital capabilities so you know where you are. This is the baseline against which improvement can be measured and benchmarked, both internally and versus the market. We help organisations build their digital capability roadmap outlining how they are going to achieve their digital transformation in terms of people skills. We deliver digital capability programs via training and workshops both face to face and online. These accelerate the adoption and integration of the digital skills needed to deliver on digital transformation. We can provide certification and CPD for the digital capability programs we deliver Editable PowerPoint version of this presentation, with commentary in the notes, and including builds, is available to Econsultancy subscribers on the Econsultancy site. Call us on +44 (0)20 7269 1450 (UK) or +1 212 971- 0630 (US) or email transformation@econsultan cy.com

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