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International Keynote: Hilding Anderson's (SapientRazorfish) presentation at Mumbrella360

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Hilding Anderson, Director of Research & Insights at SapientRazorfish, presented on Reimagining Business in The Age of The Customer at Mumbrella360.

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International Keynote: Hilding Anderson's (SapientRazorfish) presentation at Mumbrella360

  1. 1. Reimagining Business in the Age of the Customer J U N E 7 , 2 0 1 7 INTERNATIONAL KEYNOTE: Hilding Anderson: Director of Research & Insights, SapientRazorfish
  2. 2. Director of Research & Insights 18 years of experience at Sapient Razorfish Published in Forbes, speaker at SXSWi Angel Investor A B O U T Y O U R S P E A K E R
  3. 3. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 3 The Situation The Opportunity Stories from the Field Five Rules C O N T E N T
  4. 4. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L SapientRazorfish exists to reinvent businesses for the digital age. A B O U T U S
  5. 5. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L F O R A G E N C I E S A N D T H E I R C L I E N T S The Situation
  6. 6. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 6 T H E I N N O V A T I O N E C O N O M Y SOURCE: HARVARD BUSINESS REVIEW & CONSTELLATION NR Average life expectancy of 75 years 1955 Average life expectancy of 15 years 2017 In the last 15 years, 52% of the global Fortune 500 companies have disappeared.
  7. 7. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 7 A C H A N G I N G I N D U S T R Y $355.9B $297.8B MARKET VALUE AS OF DECEMBER30, 2016 COMPANY CHANGE IN VALUE OVER THE LAST 10 YEARS: MARKET VALUE 2006 MARKET VALUE 2016 % CHANGE $27.8B $18.1B $12.4B $24.2B $24.2B $28.4B $51.3B $214.0B $17.5B 96% 86% 33% 64% 55% 54% 21% 1% 1,934% The Transformation Imperative: Digital Agility & Culture Drives Business Success $1.1B $2.6B $8.3B $8.8B $11.0B $13.2B $40.6B $212.4B $355.9B
  8. 8. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 8 T H E I N N O V A T I O N E C O N O M Y The Connected Consumer is in charge Empowered and demand transparency Value experiences over most things Embrace and seek new companies with which to engage Demand personalization and real- time relevance Agnostic to screens or value chains
  9. 9. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 9 Digital transformation is linked to higher profits 10% 45% Immature: Enterprises planning digital initiatives Mature: Fully digital enterprises Digitally mature companies were 4x more likely to report they were profit leaders Global Executive Survey. June 2016 N=500. SOURCE: COMBINATION OF TWO QUESTIONS: HOW PROFITABLE IS YOUR ORGANIZATION , AND HOW DIGITALLYMATURE IS YOUR ORGANIZATION.
  10. 10. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 10 A C H A N G I N G I N D U S T R Y Companies are realizing their existing business models have to be updated – that they must disrupt themselves
  11. 11. Agencies are uniquely positioned due to their focus on experience and understanding of the customer. O U R P O V
  12. 12. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L F O R A G E N C I E S A N D T H E I R C L I E N T S The Opportunity
  13. 13. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 13 A P R I L 1 2 , 2 0 1 7 “Jeff, what does Day 2 look like?” That’s a question I just got at our most recent all-hands meeting. I’ve been reminding people that it’s Day1 for a couple of decades. I work in an Amazon building named Day 1, and when I moved buildings, I took the name with me. I spend time thinking about this topic. “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day1.” Jeff Bezos, 2017 Amazon Shareholder Letter C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
  14. 14. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 14 The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.” JEFF BEZOS CEO & President, Amazon.com
  15. 15. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 15 We live in a radical customer centric world – and this is a tool to compete against the consultants, strategists and others. But what does delivering DBT mean?
  16. 16. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 16 Reimagining business is centered around three core principles Radical Customer Centricity The Connected Digital Enterprise Agile Innovation
  17. 17. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 17 Creating journeys & segments R A D I C A L C U S T O M E R C E N T R I C I T Y
  18. 18. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 18 Focusing on customer experience 50% 47% 39% 38% 37% Improve the experience we offer customers Become more innovative Improve how employees collaborate internally and with partners Improve our products and/or services Improve how the organization handles data and analytics Top ways that immature companies generate value through digital business transformation SAPIENTRAZORFISH GLOBAL EXECUTIVE SURVEY. JUNE 2016 N=500. R A D I C A L C U S T O M E R C E N T R I C I T Y
  19. 19. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 19 Successful transformation requires CEO-level leadership Among those that have successfully transformed A C H A N G I N G I N D U S T R Y of CEOs have been visibly engaged in DBT 94%
  20. 20. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 20 A C H A N G I N G I N D U S T R Y But CMOs also have a critical seat at the table A C H A N G I N G I N D U S T R Y
  21. 21. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 21 A C H A N G I N G I N D U S T R Y In fact, at some companies, marketing has led the transformation
  22. 22. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 22 Marketing and technology – long support functions for large enterprises – are now strategic weapons, and agencies have an opportunity to play a great role in driving change.
  23. 23. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 23 New skills and expertise must be developed, yet we believe the fundamentals of agency life – customer understanding, creativity and innovation – means that many agencies can be valuable partners for brands reimagining their business.
  24. 24. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 24 T H E O P P O R T U N I T Y Transformation Principles for the CMO F R O M T O Product or Technology-led Campaign Orientation Push Marketing / Large Media Buys Within Organizational Silos ‘Business of Today’ KPIs IT handles technology Fixed Mindset Customer-led Rapid, test & learn, data-driven Co-creation and Pull / Targeted Buys End-to-end XFL Teams ‘Business of Tomorrow’ KPIs Agile tech development is critical to marketing’s success Entrepreneurial Mindset
  25. 25. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L F O R A G E N C I E S A N D T H E I R C L I E N T S Stories of Transformation
  26. 26. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 26 S T O R I E S O F T R A N S F O R M A T I O N
  27. 27. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 27 Sephora was named as a leader in our retail study starting with our first edition in 2012. Digital technology, in-store innovations, personalized experiences & customer-focused loyalty program. S T O R I E S O F T R A N S F O R M A T I O N We believe that teaching beauty is a competitive advantage.” Calvin McDonald CEO, Sephora
  28. 28. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 28 S T O R I E S O F T R A N S F O R M A T I O N
  29. 29. Dominos Pizza, the e-commerce company S T O R I E S O F T R A N S F O R M A T I O N
  30. 30. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 30 S T O R I E S O F T R A N S F O R M A T I O N
  31. 31. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 31 104 Mortgage lending & Intermediaries Corporate pensions Personal account servicing Commercialservicing Onboarding Lending Savings Credit cards Personal current account Loans Shared Components Covering Of total total FTE~40% 90+% of total retail & commercial servicing transactions 80% of total customers 65+% of total loans and advances 100% of corporate pensions clients Commercial 8 Retail Customer Onboarding 1 9 10 2 3 5 6 4 7 10 Journeys S T O R I E S O F T R A N S F O R M A T I O N Feels like we are working in a different bank.” Digital Innovation Director
  32. 32. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 32 Think E2E - improving even one interaction is hard in old legacy organizations… O R G A N I Z A T I O N A N D O P E R A T I O N S U X C C X B A C K S T A G E § Policy/Compliance § Distribution § Product design § Pricing § Conduct/regulation § Operations § Technology F R O N T S T A G E § All customer touch points § Marketing § Branch telephony § Service excellence § Fulfillment D I G I T A L C U S T O M E R E X P E R I E N C E , G U I § Web § Mobile § Tablet § Kiosk, wearable, smart device End to end transformation F R O N T S T A G E B A C K S T A G E S T O R I E S O F T R A N S F O R M A T I O N
  33. 33. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 33 And some misses
  34. 34. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 34 S T O R I E S O F T R A N S F O R M A T I O N P&G’s Gillette Acquisition A missed opportunity. Dollar Shave Club purchased for $1B. By Unilever. v
  35. 35. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 35
  36. 36. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 36 THE RECORDING INDUSTRY $26.60 $21.76 $15.65 $15.03 $14.97 $15.00 $15.70 $17.50 $23.00 1999 2005 2012 2013 2014 2015 2016 2021 2026 ANNUAL GLOBAL RECORDED MUSIC REVENUES SOURCE: GOLDMAN SACHS $ Billions in revenues Streaming revenues will nearly double between 2017 and 2020
  37. 37. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 37 T H E S A P I E N T R A Z O R F I S H T H R E E - W A V E M O D E L A U T O M O T I V E E A R L Y G O V ’ T E N T E R T A I N M E N T + M E D I A A D V A N C E D R E T A I L T E L C O M I D D L E C P G F S T R A V E L + H O S P I T A L I T Y
  38. 38. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L F O R T H E A G E N C Y O F T O M O R R O W Five Rules
  39. 39. 1. Embrace the technology in marketing 2. For smart clients, the ask is no longer just great creative awards, it is delivering tangible business value 3. Agencies must extend their span of services: in a post-funnel world, you can no longer focus just on the very top of the funnel – on demand generation. 4. Physical properties matter more, not less, in digitally-led companies 5. AI, machine learning are key skills. But no fluff: Make sure you apply AI for a few, discrete use cases – not to solve a massive, diffuse problem. Do you have data scientists? Five rules for the agency of tomorrow

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