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Building Digital Capability of the Company

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Dear PANA Members,

You are all invited to PANA’s September GMM entitled: “HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY”. This will be on September 25, 2014 (Thursday), 12 Noon at the Hard Rock Cafe, 3/F Glorietta 3, Makati City. Speaker is Mr. Albet Roble-Buddahim, Department Head of Digital Activation and Business Transformation, Avon Cosmetics Inc. (Registration starts at 11:30AM.)

Find out the answers to the following questions:
- What are the different options for an internal digital team given a brand's objectives and scale?
- What are the different competencies that need to be developed?
- What are the different positions, and how does the org chart look like for a digital team?
- When do you decide to outsource digital work?
- What are the different types of suppliers and digital agencies out there?
- How do you evaluate prospective suppliers and digital agencies?
- How do you evaluate the effectiveness of a digital campaign?

Published in: Business
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Building Digital Capability of the Company

  1. 1. HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY September 25, 2014 PANA GMM
  2. 2. It is an honor to share in the Organization of my Leaders Ms. Pauline Lao My former Manager in P&G Philippines (ex) Media Head Ms. Christine Eugenio My current Manager in AVON Philils. Channel Enablement Director
  3. 3. 1. What are the different positions, and how does the org chart look like for a digital team? 2. What are the different options for an internal digital team given a brand's objectives and scale? 3. How do you evaluate the effectiveness of a digital campaign? 4. What are the different competencies that need to be developed? 5. When do you decide to outsource digital work? 6. What are the different types of suppliers and digital agencies out there? 7. How do you evaluate prospective suppliers and digital agencies?
  4. 4. Given the time of 30 minutes constraint Why do I need to build the company’s digital capability? - What are the different positions, and how does the org chart look like for a digital team? - What are the different options for an internal digital team given a brand's objectives and scale? - How do you evaluate the effectiveness of a digital campaign? What will be the competencies to build? - What are the different competencies that need to be developed? How do I build or augment (buy) digital capabilities? - When do you decide to outsource digital work? - What are the different types of suppliers and digital agencies out there? - How do you evaluate prospective suppliers and digital agencies?
  5. 5. Why-What-How to Build Digital Capability WHY WHAT HOW HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY
  6. 6. WHY Strengthen the Company’s Digital Capability - What are the different positions, and how does the org chart look like for a digital team? - What are the different options for an internal digital team given a brand's objectives & scale? - How do you evaluate the effectiveness of a digital campaign?
  7. 7. Because its an Industrial Revolution vs. (only) Media shift Industrial Revolution: 1760-1840 This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, improved efficiency of water power, the increasing use of steam power, and the development of machine tools. It also included the change from wood and other bio-fuels to coal. Second Industrial Revolution: 1860 - 1920 Characterized by the build out of railroads, large scale iron and steel production, widespread use of machinery in manufacturing, greatly increased use of steam power, use of oil, beginning of electricity and by electrical communications.
  8. 8. Adopting to an Industrial Revolution is needed to Survive Third Industrial or Digital Revolution: 1950-1980 Central to this revolution is the mass production and widespread use of digital logic circuits, and its derived technologies, including the computer, digital cellular phone, and the Internet. Information Age: 1990’s – Present Formed by capitalizing on the computer microminiaturization advances, with a transition spanning from the advent of the personal computer to the Internet's reaching a critical mass in the early 1990s. This evolution of technology in daily life, as well as of educational life style, the Information Age has allowed rapid global communications and networking to shape modern society.
  9. 9. My daily Life in an Information Age / Digital Revolution I wake-up in the morning, I grab my mobile phone to check the time then my calendar, my E-mails, Facebook, Instagram, see if there are any good Car deals in Sulit.com.ph and randomly Search the Internet Then I go to the Living Room and turn-on Cable TV, surf the Channels for anything interesting then prepare for work. I drive my car, activate Bluetooth and play music from my phone. When I arrive at the office, I sync my computer with my mobile devices then visit several company websites to approve VL/SL’s, Expense Reports; mandatory online trainings; online meetings; etc.
  10. 10. Why Strengthen your Company’s Digital Capability? To leverage the efficiency and competitive advantage that Science & Technology can provide in the Information Age of the Digital Revolution which started in 1950’s.
  11. 11. - What are the different positions, and how does the org chart look like for a digital team? And this means Every Department in our Company must think of how to leverage Digital. Supply Chain – Real Time Inventory System to reduce Product Storage cost; Avoid Over-Supply and Out-of-Stock HR – Equip employees with Digital skills and tools to make decision making faster, operate with agility & accuracy Finance – Automate expense report generation with connection of Corporate Credit Cards transactions to Concur (Online financial system) Marketing – Engaging consumers and customers who are online then understanding how Digital can make their life easier and more convenient
  12. 12. how does the org chart look like for a digital team? 1. What are the different positions, and My recommended Structure for a Digital Team in a company, in a way that it looks across the opportunities in the company President Marketing IT Digital Media / Marketing Paid / Campaigns Owned / Website Social Media / PR CRM Earned Media Sales / eCommerce HR Sales Owned 3rd party Apps & Tools Online Offline
  13. 13. The Size of the Internal Digital Team depends on your Company’s Business Goals and Objectives 2. What are the different options for an internal digital team given a brand's objectives and scale? Example #1 Procter & Gamble http://www.mckinsey.com/insights/consumer_and_retail/inside_p_and_ampgs_digital_revolution Business Objective To make P&G the most technologically-enabled business in the world. (P&G Digital Revolution) Business Goals 1. Better Innovation 2. Higher Productivity 3. Lower Costs 4. Promise of Faster Growth Size of Digital Team: More than 100 Globally under the IT team of its Shared Services Business Unit with a Digital skills integrated across functions and to every employee
  14. 14. The Size of the Internal Digital Team depends on your Company’s Business Goals and Objectives 2. What are the different options for an internal digital team given a brand's objectives and scale? Example #2 AVON 2013 Annual Report of AVON as shared in its Global website. www.avon.com Business Focus (1 out of 3) Expand our Brand and Channel to reach New Customers and Drive Profitable Growth Business Goals 1. Reach New Consumers 2. Improved Earnings Opportunity of Representatives 3. Drive Profitable Growth Size of Digital Team: Less than 50 Globally with local Digital Team under Marketing or PR/Communication - Basic: 2 FTE’s – Marketing/Media & PR/Social Media - Advance: 10-20 FTE’s – w/ eCommerce and Apps/Tools * All Production is outsourced
  15. 15. 2. What are the different options for an internal digital team given a brand's objectives and scale? - At the very least, have a Digital Champion in the organization to work on your Media/Marketing campaigns then outsource the non-core work of the business like Website production, Content writing, etc. - For me, the ideal is to have 5 Headcounts and outsource the tactical and technical work Digital Media / Marketing Paid / Campaigns Owned / Website Social Media / PR CRM Earned Media Sales / eCommerce Owned 3rd party Apps & Tools Online Offline
  16. 16. 3. How do you evaluate the effectiveness of a digital campaign? The effectiveness of a Digital campaign must be tied-back to the Business Goals & Objectives OBJECTIVE (Service) HOW WHERE REACH GOAL RESULTS DRIVE TRIAL amongst Online Shoppers eComm Website ZALORA XXXXX Zalora Shoppers XXXXX Coupons Sold Share Sales Trial Rate Efficiency Cost/Trial Promo Facebook XX Million SEC D’s XXXXX Coupons Redeemed OBJECTIVE (Product) HOW WHERE REACH GOAL RESULTS Increase Product Consumption amongst Current Users Educate YouTube XXXXX YT viewers XXXXX Products Sold Share Sales Efficiency Company Website XXXXX U.Visitors XXXXX Online Educate Cost/Trial Order
  17. 17. WHAT Digital Competencies to Build and Prioritize for the Company - What are the different competencies that need to be developed?
  18. 18. Slides courtesy of IMMAP IIDM CDM Program International Institute of Digital Marketing * Digital Marketing Plan * Digital Media Planning
  19. 19. Your Digital Champion to be a Certified Digital Marketing
  20. 20. Pay-Per-Click (PPC) across Channels Re-Targeting Real Time Bidding (RTB) Media Planning for a Brand Copy/Creative Testing
  21. 21. Clickstream Analytics Drive-to-Site Analytics Multivariate Testing Cross-Media Analytics Multi-Channel Attribution E-Mail Analytics Excel for Analysts Social Media Analytics
  22. 22. Content Marketing Social Media Policy Social Media Analytics Social Videos Online Community Management Twitter for Brands Facebook for Brands
  23. 23. Designing a Mobile App Mobile App Marketing Mobile Ad Networks Location-Based Marketing Mobile Videos Mobile Search Mobile Site Voice and SMS Marketing
  24. 24. E-Commerce E-CRM Effective E-mail Marketing
  25. 25. 4. What are the different competencies that need to be developed? Digital Competencies to Build in the different functions/department of the Company Media 1. Digital Marketing Analytics 2. Digital Media Planning 3. Social Media Marketing Brand/Marketing 1. Digital Marketing Analytics 2. Social Media Marketing 3. Mobile Marketing PR 1. Digital Marketing Analytics 2. Social Media Marketing Digital * All Competencies | Certified Digital Marketer
  26. 26. HOW do I Build or Augment (Buy) the Digital Capabilities of the Company? - When do you decide to outsource digital work? - What are the different types of suppliers and digital agencies out there? - How do you evaluate prospective suppliers and digital agencies?
  27. 27. HOW do I Build or Augment (Buy)? • To Build and Invest? – Business/Digital Strategies – Digital Steward/Champion – All Marketing, Media & PR to understand the Business, Competitive & Consumer/Customer Landscape Digital Platform then be able to identify the opportunities-to-actions needed to grow the business
  28. 28. FREE Online Training for your Teams Understand 1. Digital Terms 2. Website Ads 3. Targeting 4. Ad Exchanges 5. Tracking 6. Video 7. Search 8. Mobile 9. Contextual Marketing http://www.msa-digitalacademy.com/login/index.php
  29. 29. FREE Online Training for your Teams https://www.facebook-studio.com/education/index
  30. 30. FREE Online Training for your Teams https://www.google.com/partners/#p_certifications
  31. 31. ENROLL your Teams at the IIDM-CDM program http://www.imadigitalmarketer.com/
  32. 32. HOW do I Build or Augment (Buy)? • To Build and Invest? – Business/Digital Strategies – Digital Steward/Champion – All Marketing, Media & PR to understand the Business, Competitive & Consumer/Customer Landscape Digital Platform then be able to identify the opportunities-to-actions needed to grow the business • To Augment / Outsource? – Research & Insighting – Digital Tools – Media Planning/Buying – Technical work – All Digital Production from website to Mobile Apps, Creative Ads, etc. – eCommerce operations unless its core business (eg.Sulit, Zalora, Google)
  33. 33. Agency Example Venus Navalta IPG Mediabrands CEO Chito Jusi Deputy Managing Director Universal McCann
  34. 34. 5. When do you decide to outsource digital work? We outsource work and leverage Agencies for • Competencies (Technical, Seasonal, Project-Based) • Approach (Strategy, Marketing Framework, Mindset)
  35. 35. Key Messages 35 • World’s leading, focused media and digital communications group • We help clients communicate and build relationships with consumers around their products and brands • Redefining Media for World’s leading brands • is the leading independent media planning & buying specialist, using media in new ways to deliver business value to clients (Market leader according to Recma) • World’s fastest growing media group • Global communications network that unites people and brands through meaningful connections. • Digital at the core and content run through veins • Maxus is a global network of local media agencies Only media agency emerged in the digital age • driven by our internal PACE values: Maxus people are passionate, agile, collaborative and entrepreneurial. • People first, better results • By understanding consumers better than any other agency, we build brand connections that maximise client growth • Inspiring people and exceptional results • Ambition to be our clients’ most valued partner • Diversify service without sacrificing quality
  36. 36. MARKETING TECHNOLOGY DATA SCIENCES NEW AGE CONTENT BUSINESS INTEGRATION SOCIAL MARKETING
  37. 37. 5. When do you decide to outsource digital work? We outsource work and leverage Agencies for • Competencies (Technical, Seasonal, Project-Based) • Approach (Strategy, Marketing Framework, Mindset) • Results that yields Sales (vs. Rates/ASF) • People (w/ Experience and the Best at what they do) • Efficiency (Incur cost only when there’s work, Reduced FTE) • Tools (Global tools with scale,
  38. 38. 6. What are the different types of suppliers and digital agencies out there? Business Integration Digital Performance Optimizer Search Marketing Social Infusion Digital Commerce Shopper Marketing POE Optimization Trading & Negotiations
  39. 39. 7. How do you evaluate prospective suppliers and digital agencies? Primary Measure of Success is Sales - Trial or More Consumption is secondary - TOM/Recall/Salience is 3rd priority PAID OWNED EARNED Awareness Influence Transaction Loyalty SALES
  40. 40. HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY +63 998 549 8123 albet.buddahim@gmail.com

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