Enterprise Transformation
Strategic Innovation Day
Registration & Breakfast
Welcome & Introductions
Transformation: The KONE Way
EVP Central & North Europe, Ari Lehtoranta, ...
Transformation: The KONE
Way
Ari Lehtoranta
28.8.2013
Contents
Starting change 2005
KONE’s way to develop competitiveness
Customer Experience Development in KONE
Situation 2/2005
• Global market share 9%
• Strong in Europe, weak in Asia and
North America
• EBIT 8%
We decided the key direction for change in 2/2005
FROM TO
Technology Customers & technology
Europe mindset
Europe, North A...
We defined a new strategy 2/2005
KONE gives a performance edge to its
customers with innovative services and
solutions.
Si...
We decided the 5 Must–Win Battles in order to put our
strategy alive
CUSTOMER FOCUS
1
PRODUCT/SERVICE PORTFOLIO
2
OPERATIO...
KONE WAY
We defined KONE Way process architecture
5/2005
KONE’s way to develop competitiveness
Development Programs support our
continuous renewal
2005 2006 2007 2008 2009 2010 2011
Process optimization
Development of...
Phase 4: Customer Experience development
 Value selling
 Sales development
 Customer interactions development
Customer ...
Development of profitability
Me
Liikevoitto poislukien kertaluonteiset erät.
Vertailutiedot vuodelta 2012 on oikaistu uudi...
Kevin F. Bandy
SVP, Enterprise Transformation
Become a Customer Company
Connect With Your Customers In A Whole New Way
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
This presentation may contain forward-lo...
1960s
Mainframe
Computing
1970s
Mini
Computing
1980s
Client
Server
Computing
x 10x 100x 1,000x 10,000x 100,000x
2010s
Soci...
Connected
Customers
Connected
Products
Connected
Employees
Connected
Partners
Social
New ways
to connect
Trust
New ways to...
Consumer
Packaged
Goods
High Margin Bundled Services
Greater Variety/Regional Relevance
Speed of Product Development
Autom...
CSC Study " The Growing Importance of Sustainable Supply Chain Management: Creating a Supply Chain Strategy”
*
Old Supply Chain
New Supply Chain New Demand Chain
Sequential Processes
Discrete Teams
Geographically constrained competit...
Source
Return Return
DeliverMake
Source
Return Return
DeliverMake
Source
Return Return
DeliverMake
Plan Plan
Supplier Comp...
Systems Of
Differentiation
CORE
Finance, ERP
Systems Of
Record
CRM
Systems Of
Innovation
Contracts &
Compliance
HR
Apps
Mo...
✔ ✔ ✔
sms
Connected
Things
Connected
Partners Connected
Employees
Connected
Consumers
✔
The Gartner Magic Quadrant is copyrighted 2013 by Gartner,
Inc., and is reused with permission. The Magic Quadrant is a
gr...
The CRM customer engagement center (CEC)
refers to a logical set of technologies and business
applications that are engine...
Increase Revenue
Decrease Business OpEx
Increase Revenue
Decrease Business OpEx
Increase Revenue
Decrease Business OpEx
De...
Keep Perspective
Understand where you were, where you are, and where you are heading
! First Significant Investment?
! Sco...
Business Value
Go to Market
Desired
Capabilities
Competitive
Differentiation
Increase
Revenue
Reduce
Assets
Reduce
Costs
E...
How do you sell as
a team?
How do you service
customers
everywhere?
How do you create
customer, partner,
vendor, distribut...
Agile and Efficient Selling
• Entreprise Transformation
• August 28,2013
• Kari Kaario
• Accenture Management Consulting
Copyright © Accenture 2013 All Rights Reserved
Several Enterprise Transformation Triggers indicate
that we need to look be...
Copyright © Accenture 2013 All Rights Reserved
The demand for more complex
solutions is changing the way sales
operates an...
Copyright © Accenture 2013 All Rights Reserved
Existing sales models slow down the flow of
information and compromise the ...
Copyright © Accenture 2013 All Rights Reserved
Enterprise Transformation consist of multiple Themes.
Agile and Efficient S...
Copyright © Accenture 2013 All Rights Reserved
Sales and management processes
are optimized for reporting rather
than sell...
Copyright © Accenture 2013 All Rights Reserved
Professionals have unclear roles
and responsibilities
ISSUE 3 4 51 2 6
Copyright © Accenture 2013 All Rights Reserved
Companies are organized in departmental
silos and sales are supported by st...
Copyright © Accenture 2013 All Rights Reserved
Decision making is hierarchical
and slow
ISSUE 3 4 51 2 6
Copyright © Accenture 2013 All Rights Reserved
Generating
Leads &
Researching
Accounts
Selling (Phone
or Face-to-
Face)
Me...
Copyright © Accenture 2013 All Rights Reserved
Complexity of touch points and globalization
are Driving Growth at accelera...
Copyright © Accenture 2013 All Rights Reserved
We need to manage the whole
ecosystem not just our value chain
Source: Kaar...
Copyright © Accenture 2013 All Rights Reserved
Ad-hoc Systematic
Centralized
Local
3. Process
employed
4. Entrepreneurship...
Copyright © Accenture 2013 All Rights Reserved
You need to learn and benefit
from Social Media tools
New client
visit
Chec...
Copyright © Accenture 2013 All Rights Reserved
Client /
opportunity
attractiveness
Our
ability to winLow
Low
High
High
FUT...
Copyright © Accenture 2013 All Rights Reserved
Client /
opportunity
attractiveness
Our
ability to winLow
Low
High
High
Cle...
Copyright © Accenture 2013 All Rights Reserved
Clients are expecting aligned
sales and service operations
Break the silos ...
Copyright © Accenture 2013 All Rights Reserved
Panel Discussion
Kevin Bandy is a senior executive at Salesforce.com with g...
Copyright © Accenture 2013 All Rights Reserved
Panel Discussion
How has your value chain changed?
How does your ecosystem ...
Copyright © Accenture 2013 All Rights Reserved
Panel Discussion
How to motivate the use of new
tools?
How much integration...
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Helsinki Strategic Innovation Day - Enterprise Transformation with salesforce.com, Accenture and The Kone Way

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  1. 1. Enterprise Transformation Strategic Innovation Day
  2. 2. Registration & Breakfast Welcome & Introductions Transformation: The KONE Way EVP Central & North Europe, Ari Lehtoranta, KONE Corporation (Leader of the Customer Experience Development Programme) Transformation in the Enterprise SVP Enterprise Transformation, Kevin Bandy, salesforce.com Coffee & Networking Break Agile and Efficient Selling MD Nordic CRM Service Line, Kari Kaario, Accenture Management Consulting Panel discussion with industry leaders EVP Central & North Europe, Ari Lehtoranta, KONE Corporation SVP Enterprise Transformation, Kevin Bandy, salesforce.com Country MD, Frank Korsström, Accenture Finland & Nordics Moderated by Kari Kaario, Accenture Management Consulting Lunch & Networking
  3. 3. Transformation: The KONE Way Ari Lehtoranta 28.8.2013
  4. 4. Contents Starting change 2005 KONE’s way to develop competitiveness Customer Experience Development in KONE
  5. 5. Situation 2/2005 • Global market share 9% • Strong in Europe, weak in Asia and North America • EBIT 8%
  6. 6. We decided the key direction for change in 2/2005 FROM TO Technology Customers & technology Europe mindset Europe, North America & Asia Pacific mindset Profit Profitable growth Differentiation Differentiation & cost competitiveness High fixed cost level Streamline and use fixed cost base for competitive advantage Relatively slow Fast Functional Cross-functional collaboration
  7. 7. We defined a new strategy 2/2005 KONE gives a performance edge to its customers with innovative services and solutions. Simultaneously, KONE’s products and services are cost competitive and its processes characterized by globally aligned operational excellence.
  8. 8. We decided the 5 Must–Win Battles in order to put our strategy alive CUSTOMER FOCUS 1 PRODUCT/SERVICE PORTFOLIO 2 OPERATIONAL EXCELLENCE 3 GLOBAL SOURCING 4 PRESENCE IN ASIA-PACIFIC 5
  9. 9. KONE WAY We defined KONE Way process architecture 5/2005
  10. 10. KONE’s way to develop competitiveness
  11. 11. Development Programs support our continuous renewal 2005 2006 2007 2008 2009 2010 2011 Process optimization Development of culture Common vision Agility and speed Challenging industry leadership Service Leadership Innovative Solutions for People Flow™ Employee Engagement Customer Experience Delivery Chain Excellence Environmental Excellence Operational Excellence People Flow Solutions Customer Focus People Leadership Sourcing Operational Excellence Product and Service Excellence Customer Focus Focus in Asia 2012 2013
  12. 12. Phase 4: Customer Experience development  Value selling  Sales development  Customer interactions development Customer experience development in KONE Phase 3: Tools integration and further development Phase 2: Tools to support the process Phase 1: Processes  One common customer process  Customer segment model  Customer loyalty survey (NPI) 2006 2007 2008 2009 2013  Global CRM  Process and tools training  Customer data quality and KPIs  New KONE.com, integrated to CRM  New tender and order tool (KTOC), integrated to CRM and SAP
  13. 13. Development of profitability Me Liikevoitto poislukien kertaluonteiset erät. Vertailutiedot vuodelta 2012 on oikaistu uudistetun IAS 19, Työsuhde-etuudet –standardin mukaisesti. 243 160 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 Q4Q3Q2Q1 15,5 % 19,2 % 2005 2013 13 ©KONE Oyj | 19. heinäkuuta 2013 | Osavuosikatsaus tammi–kesäkuulta 2005 2013
  14. 14. Kevin F. Bandy SVP, Enterprise Transformation Become a Customer Company Connect With Your Customers In A Whole New Way
  15. 15. Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.
  16. 16. 1960s Mainframe Computing 1970s Mini Computing 1980s Client Server Computing x 10x 100x 1,000x 10,000x 100,000x 2010s Social Revolution 1990s Cloud Computing 2000s Mobile Computing
  17. 17. Connected Customers Connected Products Connected Employees Connected Partners Social New ways to connect Trust New ways to build relationships Mobile New ways to reach customers Big Data New ways to discover insight Community New ways to collaborate Apps New ways to build apps Cloud Computing New ways to connect everything
  18. 18. Consumer Packaged Goods High Margin Bundled Services Greater Variety/Regional Relevance Speed of Product Development Automotive & Manufacturing Innovative Value Added Offerings Simplify the Buying Process Customer / Distributors Connections Media & Telecommunications Virtual is Reality À la carte Services Loyalty via Customer Experience Quick Service Restaurant Franchisors Great Ideas From Customers Social Feedback is Reality Consistency Across Franchise Retail & Commercial Banking Intra-Bank Client Lifetime Value Mobile Banker-Client Interaction Multi-Channel Client Marketing Business Process Outsourcing Every Agent is a Salesperson Management by Service Level Contractual Resource Reporting
  19. 19. CSC Study " The Growing Importance of Sustainable Supply Chain Management: Creating a Supply Chain Strategy” *
  20. 20. Old Supply Chain New Supply Chain New Demand Chain Sequential Processes Discrete Teams Geographically constrained competition Few : Few communication Old Demand Chain Iterative Processes Connected Team Global Competition - Global Customers Many : Many communication • Volume of Connections are Increasing • Time per Connection is Decreasing • Connections Own The Value Chain
  21. 21. Source Return Return DeliverMake Source Return Return DeliverMake Source Return Return DeliverMake Plan Plan Supplier Company Retailer Plan Sell- Through % Rate of Return Improved Inventory Accuracy Lower Fulfillment Costs Improved Inventory Turnover Lower out of Stock Rate Increase in Perfect Order Rate Days Sales Outstanding Back Order Rates KPIImpactedviaSocial Increase % of truckload capacity utilized Increase in Truck turnaround time Reduction in Percentage of defects SCOR Model
  22. 22. Systems Of Differentiation CORE Finance, ERP Systems Of Record CRM Systems Of Innovation Contracts & Compliance HR Apps Mobile AppsE-Commerce Site IT Helpdesk Connected Things Connected Partners Connected Employees Connected Consumers Departmental Apps ERP Extension Apps Project Management Apps
  23. 23. ✔ ✔ ✔ sms Connected Things Connected Partners Connected Employees Connected Consumers ✔
  24. 24. The Gartner Magic Quadrant is copyrighted 2013 by Gartner, Inc., and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from salesforce.com. Magic Quadrant for the CRM Customer Engagement Center May 13, 2013 Analyst(s): Michael Maoz
  25. 25. The CRM customer engagement center (CEC) refers to a logical set of technologies and business applications that are engineered to provide customer service and support, regardless of the interaction (or engagement) channel Gartner May 2013 - Maintain customer context regardless of interaction channel, including Social Media, Communities and traditional channels -The Agent has full context and knows what the customer has done leading up to current engagement - Deliver the appropriate business rule, next best action or information to meet the customer at the point of need
  26. 26. Increase Revenue Decrease Business OpEx Increase Revenue Decrease Business OpEx Increase Revenue Decrease Business OpEx Decrease Business OpEx Increase Revenue Decrease Business OpEx Increase Revenue Decrease Business OpEx Decrease IT OpEx
  27. 27. Keep Perspective Understand where you were, where you are, and where you are heading ! First Significant Investment? ! Scope Shrink vs. Creep? ! Exogenous Effects? ! Learning Curve vs. Mature Use? ! Point in vs. Trend over Time? ! Measuring Consistently? ! New Business Insights? ! Unforeseen Network Effects? ! Qualified vs. Quantified Value? ! Solution Evolving with Users?
  28. 28. Business Value Go to Market Desired Capabilities Competitive Differentiation Increase Revenue Reduce Assets Reduce Costs Execution & Compliance Run Reliably Supply Chain Risk Sensing Supplier Community Reduced Fallout New Product Sensing R6 Demand Sensing Chatter Demand Planning Enhanced Collaboration Upstream and Downstream Visibility Execution Excellence & Risk Mitigation
  29. 29. How do you sell as a team? How do you service customers everywhere? How do you create customer, partner, vendor, distributor and employee communities? How do you connect your products? How far do you extend the applications to become a customer company? How do you listen to every customer? How do you engage on every channel? 53 4 6 7 1 2 Connected Customers Connected Products Connected Partners Connected Employees
  30. 30. Agile and Efficient Selling • Entreprise Transformation • August 28,2013 • Kari Kaario • Accenture Management Consulting
  31. 31. Copyright © Accenture 2013 All Rights Reserved Several Enterprise Transformation Triggers indicate that we need to look beyond incremental change Turbulent Industry Significant Economic Opportunity No Clear Change Direction Aggressive Expansion Plans Outdated Business Model Pre-existing Call to Action 1 3 5 2 4 6 FACT 1 2 3
  32. 32. Copyright © Accenture 2013 All Rights Reserved The demand for more complex solutions is changing the way sales operates and engages with clients FACT 1 2 3
  33. 33. Copyright © Accenture 2013 All Rights Reserved Existing sales models slow down the flow of information and compromise the sales force’s effectiveness and responsiveness FACT 1 2 3
  34. 34. Copyright © Accenture 2013 All Rights Reserved Enterprise Transformation consist of multiple Themes. Agile and Efficient Selling is driving several of them. Growth and New Business International Expansion Science & Technology Value Maximization Operating Model Restructuring Strategic Cost Reduction Growth Focused Cost Focused Agile and Efficient Selling Agile and Efficient Selling
  35. 35. Copyright © Accenture 2013 All Rights Reserved Sales and management processes are optimized for reporting rather than selling ISSUE 3 4 51 2 6
  36. 36. Copyright © Accenture 2013 All Rights Reserved Professionals have unclear roles and responsibilities ISSUE 3 4 51 2 6
  37. 37. Copyright © Accenture 2013 All Rights Reserved Companies are organized in departmental silos and sales are supported by stand alone systems, not integrated to marketing & customer service ISSUE 3 4 51 2 6
  38. 38. Copyright © Accenture 2013 All Rights Reserved Decision making is hierarchical and slow ISSUE 3 4 51 2 6
  39. 39. Copyright © Accenture 2013 All Rights Reserved Generating Leads & Researching Accounts Selling (Phone or Face-to- Face) Meetings & Administrative Tasks Account Service Calls & Training Source: CSO Insights - 2012 Sales Performance Optimization Study (over UDS 1B revenue) ISSUE Your sales people are using less than half of their time selling 3 4 51 2 6
  40. 40. Copyright © Accenture 2013 All Rights Reserved Complexity of touch points and globalization are Driving Growth at accelerated pace Information Store Office Gym Concert Pub / Lounge Parking Library School Web Mobile Radio TV Airport Station Hotel Restaurant/ Café In the street Home Museum Outdoor Oil station Theatre Cinema Catalogue Newspaper Leaflet Store window Vending machine Sales AssistantLoyalty card Kiosk Contact center E-mail Social Network Website Bluetooth SMS/ MMS Videogames TV/Radio advertisement TV/Radio shows Movie Billboard Promoter News Socialization Networking Sample Promotion Emotion Participation The Touchpoint Explosion New channels New devices Anywhere, anytime Difficult to control Globalization Consolidation Growth & Innovation from Emerging Markets Economic turbulence in Euro area ISSUE 3 4 51 2 6
  41. 41. Copyright © Accenture 2013 All Rights Reserved We need to manage the whole ecosystem not just our value chain Source: Kaario, K. (2009). Transformation Kaleidoscope FUTURE, Agile & Efficient Sales 1 2 3 Co-production between firms and their customer and their suppliers Using IT to create new bridges between producers and customers New forms of B2B commerce including the emergence of specialist “horizontal” players Consumer–to–consumer content sharing Peer-to-Peer markets operating outside the traditional value chain Cooperative consumption by group of end–consumer Changes in traditional B2B business models Joint go to market B2B Companies B2C Companies End- Consumer Intermediaries 4 5 6 1 2 2 3 2 7 1 1 2 3 4 5 6 7 B2C Companies 8 8
  42. 42. Copyright © Accenture 2013 All Rights Reserved Ad-hoc Systematic Centralized Local 3. Process employed 4. Entrepreneurship 1. On Your Own 2. Manage by Numbers Sales & Channel mgmt Decisionmaking FUTURE, Agile & Efficient Sales 1 2c 3 We need to dare to define and manage sales
  43. 43. Copyright © Accenture 2013 All Rights Reserved You need to learn and benefit from Social Media tools New client visit Check calendar & route Ask for references from co- workers Follow GPS and check- in at client Announce about a new deal Update customer database FUTURE, Agile & Efficient Sales 1 2 3a
  44. 44. Copyright © Accenture 2013 All Rights Reserved Client / opportunity attractiveness Our ability to winLow Low High High FUTURE, Agile & Efficient Sales 1 2 3b You need to learn and benefit from Social Media tools
  45. 45. Copyright © Accenture 2013 All Rights Reserved Client / opportunity attractiveness Our ability to winLow Low High High Clear Bid Clear No Bid FUTURE, Agile & Efficient Sales 1 2 3b You need to learn and benefit from Social Media tools
  46. 46. Copyright © Accenture 2013 All Rights Reserved Clients are expecting aligned sales and service operations Break the silos to enable solution selling Future processes and tools need to empower and benefit the users The logic of social media needs to be adopted to sales management SUMMARY Kari.Kaario@Accenture.com 050-375 2671
  47. 47. Copyright © Accenture 2013 All Rights Reserved Panel Discussion Kevin Bandy is a senior executive at Salesforce.com with global experience in development of strategies, assets and tools that help companies improve their sales and operational capacities in pursuit of large-scale transformations or diversified growth efforts. Ari Lehtoranta EVP Central & North Europe for KONE. He is also leading the Customer Experience Development Programme for the whole of KONE. Ari has extensive experience in managing sales and large scale transformations. Frank Korsström is Managing Director Accenture Finland and Nordics. He has been supporting numerous clients from many industries over the years.
  48. 48. Copyright © Accenture 2013 All Rights Reserved Panel Discussion How has your value chain changed? How does your ecosystem look like? Where is your sales culture? Which Enterprise Transformation themes are most relevant in your business? Are your customers demanding more complex and comprehensive solutions? What is the readiness of your sales force / rest of the organization in relation to modern sales management? How do you manage innovation? What are your capabilities related to fast implementation?
  49. 49. Copyright © Accenture 2013 All Rights Reserved Panel Discussion How to motivate the use of new tools? How much integration is needed? What is the level of your organizations social media skills? How to move from task completion to outcome creation? Who should sponsor a agile sales program? The CEO? The CSO? The CIO? All?

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