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Digital Readiness - How well prepared are German brands for a digital future?

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Digital Readiness - How well prepared are German brands for a digital future?

  1. 1. DIGITAL READINESSHow well prepared are German brandsfor a digital future?Key results of the study Ι Munich February, 2013
  2. 2. Page 2!
  3. 3. SOME OPEN TODOSPage 3!
  4. 4. Digital Readiness is the extent towhich an organization combines•  top management’s awareness andadvocacy for digital topics with•  the adoption of digital marketingtools and processes which are•  effectively used to increasecustomer agility and drive digitalchange across the entire valuechain„  „  Page 4!
  5. 5. DIGITAL READINESS DRIVES CUSTOMER AGILITY AND FIRMPERFORMANCEPage 5!FirmPerformance    3      1      2  CustomerAgilityDigitalAdoptionTopManagementadvocacy•  Digital awarenessand adoption•  Digital marketing& sales tools,processes andknow-how•  Marketingleadership•  Revenue growth•  Profitability•  Market share•  Sensing dynami-cally changingcustomer needs•  Responding quick-ly and appropri-ately on product andservice level•  Digital topics on topmanagementagenda•  Top managementknow-howDigital Readiness
  6. 6. Customer AgilityDIGITAL READINESS DRIVES FIRM PERFORMANCEPage 6!TopManagementAdvocacyDigitalAdoptionMarketingCustomerSensingCustomerRespondingFirmPerformance88%66%25%45%45%
  7. 7. DIGITAL LEADERS, FOLLOWERS, LAGGARDSTop Management Advocacy calculated through mean value of Top Management Advocacy question set: low = X ≤ 3; middle = 3 <  X ≤  4.5; high = 4.5 <  X  ≤  5Customer Agility calculated through mean value of Customer Agility question set: low = X ≤ 3; middle = 3 <  X ≤  4.5; high = 4.5 <  X  ≤  5DIGITALLAGGARDS(n=94; 30,7%)DIGITAL LEADERS(n=80; 26,1%)DIGITALFOLLOWERS(n=132; 43,1%)HIGHLOWLOW HIGHMIDDLEMIDDLECustomer AgilityTopManagementAdvocacyPage 7!
  8. 8. THE ROLE OF TOP MANAGEMENTPage 8!=  Leader  =  Follower  =  Laggard    Digital VisionA culture ofdigital change(n=306), denoted is share of top two answers*98% 98%82%67%28%15%Digital topics areregularly part of ourmanagement agenda.Our top management candraw on extensive know-how regarding digitaltopics.* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
  9. 9. DIGITAL ADOPTION IN MARKETING & SALESPage 9!DigitalMarketing &Sales ToolsWe have developed digital strategies regarding…denoted is share of top two answers*93% 92%76%84%92%79%73% 69%62%42% 40%31%Website Mobile Social Media Innovation /generating ideasn=285 n=286 n=277 n=288=  Leader  =  Follower  =  Laggard    * on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
  10. 10. DEFINITION OF CUSTOMER AGILITYPage 10!Customer SensingCapabilityCustomer Res-ponding Capability98% 95%88%78%29%18%We are able to recognizechanges in customers needsand desires early on.We immediately implementchanges once we recognizecustomers dissatisfactionwith our products or services.Sensing and Responding capabilities(n=306), denoted is share of top two answers*=  Leader  =  Follower  =  Laggard    * on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
  11. 11. PERFORMANCE DIFFERENCES BETWEEN LEADERS,FOLLOWERS AND LAGGARDS=  Leader  =  Follower  =  Laggard  Self assessment of companies compared to strongest competitors(n=306), denoted is share of top two answers*75% 75%90%83% 81%60% 60%76%67%60%36%30%40%22% 24%Market share Profitability Customersatisfaction /loyaltyProduct andservice innovationAbility to attractand retainqualified humanresources* on a 5-point Likert scale ranging from 1 = „Much worse “ to 5 = „Much better“; significant differences between groups at the 5% level regarding mean answerLeaders outperform Followers and Laggards on all major KPIs and capabilities!Page 11!
  12. 12. TOP 3 TAKEAWAYSPage 12!1.  Digital Readiness drives more than 50%of firm performance2.  Without Top Management advocacy,digital remains communication 2.0– instead of being a central driver forgrowth3.  Customer Agility replaces customerorientation - continuous integration ofcustomers fosters innovation andgenerates new business models
  13. 13. CONTACTS FOR FURTHER INFORMATIONPage 13!Coming soon: www.digital-readiness.comDr. Markus PfeifferFounding Partner Bloom Partnersmpfeiffer@bloom-partners.com+49 (0) 89 124 1395-10Jörn DickhautPartner at Bloom Partnersjdickhaut@bloom-partners.com+49 (0) 89 124 1395-20Bloom Partners,Hohenstaufenstr. 180801 Munich, Germanywww.bloom-partners.deBloom Partners,Hohenstaufenstr. 180801 Munich, Germanywww.bloom-partners.de

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