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Top Digital Transformation Trends and Priorities for 2016

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Top Digital Transformation Trends and Priorities for 2016

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Given the importance of digital transformation and the never ending onslaught of new technologies, how should organization prioritize limited resources, time, and attention? This presentation to the San Francisco American Marketing Association is the 7th year in a row when Charlene has presented her take of top digital trends.

Given the importance of digital transformation and the never ending onslaught of new technologies, how should organization prioritize limited resources, time, and attention? This presentation to the San Francisco American Marketing Association is the 7th year in a row when Charlene has presented her take of top digital trends.

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Top Digital Transformation Trends and Priorities for 2016

  1. Proprietary and confidential. Do not distribute. Charlene Li, Principal Analyst @charleneli Altimeter, a Prophet Company charlene@altimetergroup.com January 26, 2016 The Digital Transformation Helping Your Company Thrive in the Digital Era
  2. 2
  3. 3 What are the Important Trends? With limited time and resources, what should you focus on in 2016? What are crucial areas to focus on to drive digital transformation? What can we safely ignore?
  4. 4 Drives Measurable Business Value
  5. 5 Technology Maturity 2005 20152010 2020 Social Cloud Mobile Data Internet of Things Virtual Reality AdoptionRates
  6. 6 Top 10 Priorities for Digital Transformation in 2016 1 Customer Experience 2 Culture & Leadership 3 Content Strategy 4 Digital Ecosystem 5 Paid Social Watch and Prepare 6 Wearables 7 Visual Web 8 Internet of Things 9 Artificial IQ 10 Virtual Reality Top Priorities
  7. 1. Customer Experience Everything that you do (and don’t do) impacts the brand Priority: Map out and use the digital customer journey
  8. 8 Customer Journeys Are Not Connected to Digital Transformation Is your organization undergoing a digital transformation? Source: Altimeter Group Digital Transformation Study, 2014. 88% 12% Yes No 42% 25% 12% 12% 3% The need to do so hasn’t come up or been made a priority We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments We’ve talked about the need to do so but no one has taken the lead yet We are researching customer behavior now and waiting for results to inform our digital transformation strategy We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points Which best describes your company’s efforts around the customer journey/experience?
  9. 9 Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them.
  10. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The Top 50 Relentlessly Relevant Brands 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
  11. Relentlessly Relevant brands have four key characteristics CUSTOMER OBSESSED DISTINCTIVELY INSPIRED PERVASIVELY INNOVATIVE RUTHLESSLY PRAGMATIC
  12. 12 Traditional Journeys • Personas • Linear • Optimization focus • Functional • Episodic designed • Static • Survey & heuristic based Next Gen Experiences • Behavior-based segments • Unpredictable, shared • Strategic focus • Emotional • Continuously designed • Dynamic, real-time • Data-based Creating Next Generation Consumer Experiences
  13. 13 Sephora’s Marries Digital and Retail Data for Customized Experiences
  14. 14 An Ethical Data Strategy Becomes a Brand Issue
  15. 15 This isn’t a Technology Problem
  16. “You’ve got to start with the customer experience and work backwards to the technology.” - Steve Jobs
  17. 17 The Customer Experience Cloud
  18. 2. Culture & Leadership Priority: Support and amplify your brand internally
  19. 19 Biggest Challenges of Digital Transformation
  20. 20 Better Employee Relationships  Better Customer Experiences  Better Customer Relationships
  21. 21 Employee Engagement Has Very Slowly Improved US EMPLOYEE ENGAGEMENT Figures show are for February of each year 28.1 30.5 30.4 31.4 32.9 52.0 50.4 50.8 50.8 50.3 19.9 19.1 18.8 17.8 16.8 2011 2012 2013 2014 2015 Engaged Not engaged Actively disengaged Source: GALLUP
  22. 22
  23. 23 The Engaged Leader Framework Listen at Scale Share to Shape Engage to Transform
  24. 24 “I don’t have the time.”
  25. 25 #MKTNATION “It’s not about me.”
  26. 26 “It’s marketing’s job.”
  27. 27 #MKTNATION “I don’t want to get my company in trouble.”
  28. 3. Content Strategy Priority: A cohesive strategy that address content needs across the organization
  29. 29 Do You Have a Cohesive Content Strategy?
  30. 30 Content Management Team Case Study: Nespresso • Sets governance for content production process, guidelines for tone, visuals and messaging • Orchestrates content across PR, customer service, local markets and commercial teams. • Works closely with CRM and customer insights group The Content Management Team: • Turns customer insights into relevant content. • Hosts digital/creative assets. • Sets governance for how content is used. • Establishes guidelines for consistent voice, message and tone. • Looks for integration between paid, earned and owned content.
  31. 31 Be Clear About The Purpose of Each Type of Content
  32. 4. Digital Ecosystem Rationalization Priority: Break social and digital silos, distribute digital throughout the organization and leadership
  33. 34
  34. 35 Break Down Silos to Align Customer Experience Priorities • Different KPIs lead to competing efforts • Consumer data lives in silos, each department has partial insight • Same channels have disparate content
  35. 36 Key Players in Digital Transformation CHRO CMO CIO
  36. 5. Paid Social Priority: For Marketers, take a measured approach to paid social’s place in the strategy and budget
  37. 38
  38. 39 Three Key Issues Around Paid Social Paid Social Ads Social Community Management Social Customer Care Will brands shift resources from engaging customers through community management to paid social for reach, and shift engagement to social customer care?
  39. 40 Three Key Issues Around Paid Social Paid Social Ads Employee Advocates Or will the rise of employee advocacy increase reach and thus reduce social ad spend?
  40. 41 Three Key Issues Around Paid Social Paid Social Ads Will brand teams continue to use social at the top of the sales/marketing funnel? Or will digital advertising use paid social ads to drive e-commerce? Brand Marketers Digital Advertising
  41. 6. Wearables Why Wait: Primarily health/fitness use cases Why Act: Develop content that can be consumed on these emerging platforms
  42. 43 Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce Have a strong content strategy and capabilities to take advantage of emerging platforms
  43. 7. Visual Web Why Wait: Technology to identify and analyze your visual brand are still nascent Why Act: Your brand is under fire/being lauded/ignored and you don’t know
  44. 45 How Is Your Visual Brand Being Used?
  45. 8. Internet of Things Why Wait: Standards are a complete mess Why Act: Post-purchase experiences and opportunities to build loyalty/advocacy
  46. 47 Diageo piloted connects bottle to smartphone campaign for a personalized content experience • 72%  sales during pilot • Expanded program to 6 countries • 100k unique QR code downloads •  supply chain efficiency/visibility
  47. 9. Artificial Intelligence Virtual Assistants Why Wait: Still very early in development Why Act: Build trusted relationships with recommendations/ads via AI-powered virtual assistants
  48. 49 Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use
  49. 10. Virtual Reality Why Wait: Proprietary platforms are just launching this year, standards are still emerging Why Act: Study and develop new storytelling capabilities
  50. 51 Prepare Content and Customer Experiences for VR by Exploring Storytelling Oculus Rift, March, $599 HTC Vive Pre, March Sony PlayStation VR, H1 ‘16 Samsun Gear VR, $99 Microsoft HoloLens, 2016 $3,000 Google Cardboard, $30
  51. 52 Top 10 Priorities for Digital Transformation in 2016 1 Customer Experience 2 Culture & Leadership 3 Content Strategy 4 Digital Ecosystem 5 Paid Social Watch and Prepare 6 Wearables 7 Visual Web 8 Internet of Things 9 Artificial IQ 10 Virtual Reality Top Priorities
  52. For more information please contact: Charlene Li Principal Analyst charlene@altimetergroup.com @charleneli www.altimetergroup.com www.charleneli.com

Editor's Notes

  • Do you *know* your digital customers? They are not just young Millennials. They are all ages, backgrounds. They are your customers, and they are digital. The opportunity today is to know so much more about them.
  • While it’s great to think about new technologies like IoT and VR, the trends that will drive real business value will be the ones that are maturity today – Social, Cloud, Mobile, and Data. It’s really the convergence of these tech trends coming together that are creating opportunities.
  • Here are the top 10 priorities for digital transformation in 2016. The Top 5 should be the core focus of your efforts and limited time/resources. The next five are still developing – and the best way to prepare is to make sure that the top five priorities are met. If you can deliver great customer experiences across the customer journey, have a content strategy in place, and the digital ecosystem worked out, you’ll be able to execute on these newer trends as they develop over the next 1-2 years.
  • Altimeter’s research shows that 88% of companies are going through a digital transformation. But only 25% truly understand the customer journey and use it to create new digital touch points.
  • Here’s an example: Nordstrom’s purpose statement is focused on the relationship with customers, defined by EMPOWERMENT. They started with inventory systems because they helped salespeople fulfill a key need of customers. Then armed employees with tablets, information at their fingertips. Then incorporated Pinterest pins into merchandising, and even put pins in the stores. Their technology choices were grounded in what will build experiences that deepen the relationship. This is a strategy.
  • For more information, see prophet.com/relevantbrands
  • Even the way we create traditional customer journeys needs to change – next generation experiences will go beyond a few personas to be individualized, be continously designed based on dynamic, real-time data.
  • Sephora uses behavior to segment down to thousands of segments to customize the experience online and in the store. ColorIQ is a key component of this, but so is the online experience around these 110 segments X preferences/purchases.
  • For more information on this research, go to http://bit.ly/IoTPrivacy2015
  • For more information on this research, go to http://bit.ly/CXcloud2015
  • For more on this research, go to: http://www.altimetergroup.com/2014/07/the-2014-state-of-digital-transformation/
  • For more on this research, go to http://www.altimetergroup.com/2014/12/strengthening-employee-relationships-in-the-digital-era/
  • For more on this research, go to http://bit.ly/2015socialbiz
  • For more information about “The Engaged Leader” book by Charlene Li, please visit charleneli.com/the-engaged-leader
  • Can you find 15 minutes to listen to what is on the minds of your top customers and employees?
  • Correct. No one cares what you had for lunch. They care what you talked about at lunch.
  • Incorrect. You lead a team, you lead your company’s information strategy. It’s your job to set the strategy, and communicate it over and over again.
  • This is the hardest to overcome, how to build up the confidence in your judgment.

    This is the hardest part of being engaged. Palms sweaty, stomach churning.
  • For more information on this research, go to http://www.altimetergroup.com/2014/12/a-culture-of-content/
  • For more information on the research, go to http://bit.ly/ContentPerf2015

  • For more on this research, go to http://bit.ly/2015socialbiz
  • For more information on this research, go to http://bit.ly/CXcloud2015
  • For more on this research, go to http://bit.ly/2015socialbiz
  • For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  • For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  • For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  • gives Diageo a direct, one-to-one channel for communicating with consumers: their products.
    3. It enables users to personalize products, by definition, in unique ways.
    4. It converts existing, even generic, products into functionally intelligent ones, which (with the addition of smart phones) can deliver dynamic ad messaging linked to specific physical objects.
    5. It creates a rationale for the consumer to have an on-going relationship with the brand — by linking continuing online interactions to real world product-based experiences.

    – The campaign changed customer perception of the whisky category, re-positioning the participating Diageo brands as innovative and modern
    – CRM opt-ins meant that Diageo gathered permission-based intelligence it could then reapply for future customer interactions
    – Resulted in a 72% sales uplift in the two weeks leading up to Father’s Day, plus an earned media value five times higher than investment
    – Due to the success in Brazil, the Father’s Day digital gifting campaign will rollout in 2013 across multiple markets, and Diageo’s first mobile loyalty scheme running on EVRYTHNG’s Engine launches in May this year

    Results
    72% increase in sales in the 2 weeks before Father’s Day
    Earned media impact 5x investment
    Several celebrities created videos tweeted to 1M followers
    100k increase in Facebook fans
    Global PR and industry coverage
    Permission-based opt-ins to CRM program, loyalty program expanded
    100,000 unique QR downloads
    Program expanded to 6 countries
    Increased loyalty, loyalty rewards
    Enabled mobile targeting linked to specific QR code
    Increased supply-chain efficiencies



    https://evrythng.com/customers/diageo-case-study/
    http://www.marketingmagazine.co.uk/article/1311292/five-brands-successfully-embracing-internet-things
  • Uses Title Only slide layout with pre-programmed “live” text placeholders. Orange boxes can be re-colored any of the other 5 approved Prophet theme colors, but don’t mix and match colors: choose only 1 and carry throughout all process slides in sequence.

    Text placeholders utilize the same “increase/decrease list level” function as other customized layouts. I.E., bold text is text level 1, increase list 1 level to get to non-bold copy, increase list 2 levels to get to bullets.
  • ×