1.
Digital Transformation and the
Shared Value Shift
Presentation by Akoulina Connell
www.akoulinaconnell.com Twitter: @akouconnell LinkedIn: @akoulinaconnell

2.
Shared value isn’t always where you
plan it…
This Photo by Unknown Author is licensed under CC BY-SA

3.
Digital transformation: a cultural shift
The main concepts in this presentation are credited to:
David L. Rogers: The Digital Transformation Playbook.
The digital shift moves us from transactional to relational.
The five domains of strategy altered in the digital shift include:
• Customers
• Competition
• Data
• Innovation
• Value

4.
From Analog to Digital:
the digital transformation journey
« The future is already here - it’s just not very evenly
distributed. »
- William Gibson

5.
Customers / Audience
This is all about who your organization serves.
For an arts service organization, it’s membership.
For a performing arts organization, it’s audience,
subscription-holders, and donors.

6.
Audience, members, donors (Customers)
Analog Digital Age
Audience as a mass market Audience as dynamic network
One-way value flows:
communications are broadcast to
audience (inside>out)
Reciprocal value flows:
Communications are two-way
(reciprocity)
Organization is the key influencer Audience(s) are a key influencer
Marketing to persuade purchase Marketing to inspire purchase,
loyalty, advocacy

7.
Harnessing Customer
Networks
Analog vs Digital
(networked)core
behaviours of audience
(customer) networks

8.
Competition
From analog competition to digital co-opetition.
To succeed, you may need to collaborate with your direct
competition for networked market share.
New paradigms are required to succeed in the attention
economy.

9.
Competition
Analog Digital Age
Competition within defined sector
segment
Competition across fluid sectors
Clear distinctions between partners
and rivals
Blurred distinctions between partners
and rivals
Competition is a zero-sum game Competitors cooperate in key areas
Key assets are held inside your org Key assets reside in outside networks
Products with unique features and
benefits
Platforms with partners who exchange
value

10.
Data
When it comes to data, we’re moving from learning to read
to reading to learn.
Linked Digital Future (LDF) Digital Maturity Assessment
https://linkeddigitalfuture.ca/#digital-maturity-

11.
Data
Analog Digital
Data is expensive to generate in-house
(human hours for manipulation)
Data is continuously generated
everywhere (crossover with external data;
automated dashboards (APIs))
Challenge of data: storing and managing it Challenge of data: turning it into valuable
information
Organizations only use structured data
(relational databases / internal)
Unstructured data is increasingly usable and
valuable (linked open data / external)
Data is managed in operational silos
(software solution = one dataset)
Value of data is in connecting it across
silos (interoperability)
Data is a tool for optimizing processes • Data is a key intangible asset for value
creation

12.
Interoperability starts at home…
Step one: Interoperability between in-house data
Step two: Linked Open Data using standardized
practices across multiple organizations with
similar profiles
Financial software
CRM softwareOther digital assets
Communications
(website/social media
metrics)
Arts Knowledge Graph
Medusa Dance Corps
Dance companies
Theatre companies
Music companies

13.
Innovation
Innovation is, at its very foundation, the creative
process. This is where artists are expert, and it is where
other sectors turn for inspiration and insight.
And yet we have we have traditional paradigms of our
own that also demand to be questioned and tested.

14.
Innovation
Analog Digital
Decisions made based on intuition and
seniority
Decisions made based on testing and
validating
Testing ideas is expensive, slow, and difficult Testing ideas is cheap, fast, and easy
Experiments conducted infrequently, by
experts
Experiments conducted constantly, by
everyone
Challenge of innovation is to find the right
solution (“excellent” + popular = profit)
Challenge of innovation is to solve the right
problem (relevance = deeper community
engagement, advocacy + profit)
Failure is avoided at all cost / focus is on the
finished product
Failures are learned from, early and cheaply /
focus is on minimum viable prototypes and
iteration after launch

15.
Value
Value is the driver at the core of any decision or action.
Shared value has deeper relevance and greater staying power,
but its generation is iterative and evolves over time.

16.
Value
Analog Digital Age
Value proposition defined by industry Value proposition defined by changing audience
audience needs
Execute your current value proposition Uncover the next opportunity for audience
Optimize your organization’s business model as
long as possible (stasis by default)
Evolve before you must, to stay ahead of the
curve (active evolution)
Judge change by how it affects your current
success
Judge change by how it could create your next
success
Market success allows for complacency Only the risk-takers survive

17.
Value chain mapping exercise
What does your current value chain currently look like? Let’s map it!
To create a value train diagram, begin by answering three questions:
1. Scope: What is the value offering (product or service) you will analyze? (write description in
the heart)
2. Customer/audience/member: Who is your ultimate customer/audience/member? Draw
them as a circle on the far right of your diagram and write a short description.
3. Last entity: What source does the customer receive the offering directly from? Draw this
party as a square to the immediate left of the customer.
4. Prior entities: What other organizations, if any, provide unique inputs to that organization?
Draw them as additional squares to the left.
AUDIENCEORG 1 ORG 1 ORG 1

18.
DIGITAL TRANSITION: towards shared value
What changes would you see in your value chain if you take the following
elements into account?
• Linked Open Data (networked discoverability)
• Networked audience (customers) + reciprocity loops (iterative value generation)
• Demographic diversity (new perspectives on shared value)
• Cooperative models for competetive advantage (co-opetition with traditional
competitors for a larger collective share of the attention market)

19.
Value chain mapping exercise, continued…
Conduct the same exercise, but now consider…
Focal organization: Which organization is the focus of your analysis? (e.g. your own organization, or another
whose value chain you are studying) Add an additional outline to the square around it.
Value and data exchange: Between each square, add arrows in both directions. Label each arrow pointed to
the right to indicate what value and/or data is being delivered to the downstream party (e.g. product,
service, or creative element on them). Label each arrow pointed to the left to indicate what value is being
delivered upstream / data shared.
Symmetric competitors: For each square in the chain, identify the symmetric competitors (i.e. organizations
that offer similar value, with a similar operating model). Add them to diagram as rectangles below the square
square they compete with (e.g. if the NAC was in your value chain as the final distributor, below it you would
put a rectangle indicating other brick and mortar distributors).
Asymmetric competitors: For each square in the chain, identify the asymmetric competitors (e.g. an alternate
distribution channel, producer, or creative contributor/collaborator that can substitute for the organization,
has a different organizational model). Add them to the diagram as trapezoids above the square they could
potentially serve as a substitute for.

20.
Value chain mapping exercise
Figure 3‐11: Complete Value Train Diagram for Sony Music in the MP3 Music Market (Rogers, 2014)

21.
Mapping Resources for Your Digital Transformation
What resources do you need in place to enable your organization’s digital
transformation and create the conditions where new shared value can develop, evolve,
thrive over time?
• Partners & Collaborators (similar organizations or organizations with complementary or
divergent offerings that broaden the scope of opportunity)
• Funders (financial stability will be essential
• Skills & Training (where can training be sought to support internal capacity
development?)
• Specialists / Experts (are there gaps in your organization’s competencies? Where can
you go to seek mentorship, strategic advice, or hire for specific skillsets?)

22.
Final Considerations
Change comes with risk.
Stasis carries risk, too.

23.
Stragegic Planning now requires an
integrated Digital Strategy
Whether your organization is tiny or large scale, from now on,
strategic planning and developing a digital strategy goes
hand in hand.
Your strategic plan is about your mission, vision, values and
goals.
Your digital strategy lays out how you’ll experiment, create,
support, implement, report, measure, learn, exchange, and
evolve over time.

24.
THANK YOU!
And thanks to our collaborators and funding
partners:
linkeddigitalfuture.ca