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2015 and Beyond: The Disappearance of Digital

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Many organisations are recognising that concentrating digital responsibilities into a single team can create a silo in its own right. This presentation, first given at CharityComms' 2015 & Beyond seminar (London) in September 2014, looks at industry examples of how digital capabilities and accountabilities can be integrated into every aspect of business, and explains how, as Global Director of Digital at Amnesty International, I dissolved my own department in order to democratise digital throughout the organisation.

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2015 and Beyond: The Disappearance of Digital

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  2. 2. 2015 and Beyond The Disappearance of Digital Owen Valentrne Pringle. Co—FOLinder Therein
  3. 3. Anyone with a modicum of intelligence will steer clear of futuregazing. Here's why. ..
  4. 4. A - - ct I. History and Context Nevertheless, futuregazing is why we are here.
  5. 5. In 1492, Christopher Columbus landed on the island now known as Cuba. Native residents presented him with a gift of two similar plants. 'i. »rL. ‘eHf¢; _ mil 34-
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  7. 7. - N When Gutenberg's Press was invented in 1454, there was no way he could have known the part it would N play in The Renaissance and The Reformation.
  8. 8. 1989 - 2052 Likewise, we are too close to the point of its creation to know how Sir Tim Berners-Lee's invention will be regarded 63 years after its introduction.
  9. 9. 1975 Steve Sasson invents the digital camera for Kodak Ti : iT. .Ie*. .Ti ‘M. iii M ‘ ‘'‘. . —a-» U. T.'7l‘J_. . l_v» T1: iiI; I2uJ1 v x, “
  10. 10. 2005 Kodak introduces the world's first wifi—enab| ed camera
  11. 11. 201i‘ Kodak files for Chapter 11 Bankruptcy
  12. 12. — I KODAK FILES FOR BANKRUPTCY Eastman Kodak Co. a 130-yea: -old photographic iilm DOOOSOF. has filed tor bankruptcy protection. It said it had also obtained a $950 million. l8~month credit tacilny from Citigroup to keep ‘it going SHARE PRICE HISTORY — WEEKLY CLOSE IN USS 1973 1087 1091 2004 Jan. 19 I Launches Enters Launches F u my Announces outs of Files tor Colomurst filmless Professional 53;“ i2.ooo io i5.ooo Chapter ii 100 instant photography (S)igital Camera . jobs wonamde bankruptcy camera market ys1em protocuon I — I so , .., Kodak éfio Announces fluagogeu unom so 1 Photo CD anaiuyuybok - , system ' wondiiinde 2009 Ends l Kodacnromeline 40 ’ ° 0 . ' iws. -T. .T~= ~*~m» . - $2212 INS vfliocnmporuy °% 2° ' 7 Beclrisgou. uungmilmamviiii $2530 ' / J,, _,, I I $20.94 cuilgyurs inunungmo $2438 $6”. wig 0 I I ‘ I I I I ' I I I I ' I I I I ' I I I I . I I I I ’ I I I I I I ‘Q I I 1900 1985 1990 1995 2000 2006 2010 #1 i. _. %J L N Rawwa$.9 Revenues! Rovmuc$l43oh R9vonue$72oh Proust: Proust: Lass staun Lossssannri SaucesEAsvvu1KodakCo,7ruInsonRei. nersII¢wsrepoIrs Lfineurens _The Unknowable Consequenciolcatalytical Everis
  13. 13. Nevertheless, futuregazing is why we are here. I New and Old New Things mum T. .. tll7'VI:1td[lV(lMIAru 2014 . Digital TTaTTstoTrTTaiToTT zots ~ 777 Hype Cycle Txwn apaimm Lu Galltlau . ——/ ——.
  14. 14. Twenty years in digital is a long time. My memory isn't what it was. ..
  15. 15. .. .but I remember my first epiphany: Being Digital by Nicholas Negroponte (1995) The Premise - “Anything that can be digitised, will be" - ‘Unwieldy atoms" will undergo the ‘Negroponte Switch’ The Legacy The digitisation of books, maps, music, films, telephony etc. would follow: - - 1995: Amazon - 1996: Mapquest - 1999: Napster - 2001: BitTorrent - 2003: Skype. .. The revolution began well before Facebook and Twitter ‘TM 1T: Tori 1 New an I , .. Pea“ d 3‘ . _.. .
  16. 16. Fast-fonivard to 2014, and organisations are still grappling with how to be digital ‘T*. uig; £gi, riasnsronTmaiToTtT* The ivew'iiéwTrniTag Z
  17. 17. /. :, ,-, i: IIIIIIIIH 2003.-'g: ’tTo, ,ent I I «V/38 The ,8.’ . F °/ Lrti acebook an(Z17l'): ,%: ’r7 Well before ,0 r ‘ ~ A . - New and Old New Things VISIIIUTV Peak of Inflated Expectations Plateau of Productivity '1 _ _ _ Slope oi Enlightenment 2014 - Digital Transformation Trough ol Disillusionment 2015 - ? ?? _ Technology Trigger 1 N: 0., ’
  18. 18. Digital Transformation 7?’? The thing about new things is that no one can agree on a definition. CapGemini “. ..the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new business models). ’' Altimeter Group “. ..the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience | ifecycle. " econsultancy “. ..the journey from where a company is, to where it aspires to be digitally. " ~. i_ ‘ r 1;:
  19. 19. but is isn't this. .. or this. .. T. /xxx. ;. .., ,. .; .1. n r. J. . . 5 T Tn. 2. T. .. T T . m. .rm. _.w A. .T. TT4.. uz . . mf, «~T. .r. uo. .wf . T . . u . . , . . .. .. . T. tT. . I 4 ~; // ‘I I E‘m/ ~. )§§'i4"
  20. 20. Digital Transformation 7?’? The thing about new things is that no one can agree on a definition. CapGemini “. ..the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new business models). ’' Altimeter Group “. ..the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle. " econsultancy “. ..the journey from where a company is, to where it aspires to be digitally. " ~. i_ ‘ s 1;:
  21. 21. However, digital transformation seems to occur. .. either. .. As a timely response to changes in consumer behaviour, some of which may have been previously anticipated OI‘. .. When organisational panic sets—in, based on the realisation that something needs to change about their digital function, even if they're not quite sure what
  22. 22. However trans , digital formation
  23. 23. Key Dimensions (Internal) . ..often driven by panic Structural : T~A. ‘:>': ’:>‘: j:: '>" — Digital within the org—chart. '_j ( _ ‘lg Functional e’. "‘: 'T. ‘;-i‘ — Mindset embedded elsewhere’? , Operational ,7 — Internal systems and processes. ', .'*
  24. 24. Key Dimensions (External) . ..more often a timely response Customer Experience V — Servicing the empowered consumer. l, D Engagement - Marketing and communications. -’ 1' l & U’ ( Innovation ‘ " (I — For product, service and business. {‘ Q)
  25. 25. i. .. . = . .nu. W : . _ III III III. Ilm III I III I «Mk III _ III I will III ¢ mlll nll III I. ..“ II. I = - = - -9.. --A. =- 1 . III Blllw III . ... .. .5. km . ... W_ . ... .. _ I III mEB III . I III m ®II III _. =. . .m. ... .. nfi. ... . . ... ... p as H. --m. m.. --. ... .- _ _ III III III _ III . | I II. -= -= . & -= -= _ I I I I II III III I
  26. 26. Act II: Cause and Effect
  27. 27. nu-I A ' msnupnou: ‘ A BIG IDEA TO ASPIRE TO. , 7/ . ‘ J VISION: P A PROJECTION arms ['2 i COMPANY mm we FUTURE. ’ l A RADICAL NEW IDEA TO HELP CONVENTION: V" REACH ms VISION FASTER. A WIDELY ACCEPTED BELIEF. - Low-end disruption: targets customers who do not need the full performance valued by customers at the high end of the market - New-market disruption: targets customers that could previously not be served profitably by the incumbent. >auIr, (‘ Cla‘/ inn M Dvyslmsm
  28. 28. 24:00:00 The Disruption of News Media 00:60:00 :51‘ 00:00:60 F‘ @Rea| |yVirtuaI mi. . . . Uh oh, now I'm the guy who liveblogged the Osama raid without knowing it. ‘l'wn¢lDeck Favovlla Ratwael nuoiv F‘ @RealIyVirtua| ,. —'. n ‘ V A huge window shaking bang here in Abbottabad Cantt. I hope its not the start of something nasty : —S Twaw| Dui. 'k Favorite fialwsut new F‘ Gfleallyllirlual “'5 7 HM Helicopter hovering above Abbottabad at 1AM (is a rare event). fwsallkck Fax-pvrls Rulwsal Rnply Relweeted by Davrrthlweei and 100< others
  29. 29. r= Telephone Banking iii: 9 EJAr«J/ . Challenger Banks Internet Banking Pingit Mobile Money Transfer Democratised Investing The Disruption of Retail Finance
  30. 30. ’ What Does This Tell Us: - O 1. Disruption happens not once, but over and over again. ’ D S o 2. This often means when it happens, it happens incrementally. 3. Over time, a series of incremental changes amount to exponential change. ‘ 4. As a result of the above, we only know what it looks like after it's happened. ; For digital disruption, just add technology, speed and external actors
  31. 31. Martec's Law / — / technology management is deciding which changes are adopted technology changes exponentially organizations change logarithmically
  32. 32. Technology disrupts long-established industries uw "£“f‘_’_“_":3 §", ’§"[” p°5tI.3.l. '}. t.E[. .!i9‘“m mr. ..ri*li; liili~ P-I PRESSES Mmincm-IE “"“"“~u 3 l I . ..: :. I r J I '. ‘a/ r 7 I " l . .v. r.r, rii. " _ . L
  33. 33. Technology even disrupts itself Featurephones outwitted by Smartphones JTT Netbooks left with few words against Tablets PVRs dead in the water due to Online Streaming External hard drives left high and dry by Cloud Storage
  34. 34. It's more important than ever to be digitally adaptive than digitally strategic ‘Wot mm by 5:»: wnue sum Du! death tw Piranha‘ Ray Vela ova mike
  35. 35. .. o‘"_I 3 . r 1 But if the technology industry can't keep up, what chance have the rest of us got? ‘V fa t . g V 1
  36. 36. gsgif "7 ; ';~"I’ ’, 3 } Q ‘ . s‘Q. ’¢§ s‘t’; s Q‘ . . - C s C ‘ Q . ‘ ‘ I ¢ It's more important than "4 W 9 ever to be digitally adaptive ‘ " than digitally strategic 64 ~v vv~ xvi : .‘ fit". ‘Q ; ‘ ? L ‘ ‘ § . ‘ ‘4
  37. 37. "Not death by Great White Shark, but death by Piranha" Roy Vella, over coffee
  38. 38. LLOYDS TESCO Bank
  39. 39. r‘ "' . _. ".. .l . ' Digital Eagles - In-branch ‘Tea & Teach‘ sessions Pingit — 7000 staff upskilled as digital trainers I ~ Four months from concept to launch - Approx. 3m downloads since launch LLOYDS sank VeinlD - Authentication tool for home-use - Roll-out during 2015 and beyond £nt. eElistars . :A ‘ ( ix "Aw, . ‘.L . ... ‘- IA Accelerator — Mentoring for 11 fintech startups - Offices and $20k of seed funding
  40. 40. What do adaptive digital transformations have in common? Outside-in perspective, customer first, then organisation second Root and branch review of operations beyond digital ‘sea. .: r‘ Clarity of purpose, uniformly understood throughout organisation
  41. 41. Act III: Third Sector Snapshot , , r| UL? ‘ V we 4e1tt(V'VI‘
  42. 42. ageing supporter-base ‘ iv’, ‘ disintermediation of CSOs changing nature of affiliation nimbler competitors
  43. 43. “[i"I‘u7’. Oflfl‘ Sscxcty Centre T "We do not work together very well, we do not learn from each other : W and we are not very good at political intervention at a global level. .. ! } l. } : . Burkhard Gnarig, Executive Director, ICSC
  44. 44. .. .for example, the global eradication of poverty requires input from all three NGO sub-sectors, yet co-ordination is limited. " Human Rights Development ‘_
  45. 45. Convergence: The Three Sided-Approach The Shifting Sands of Civil Society "There is no longer an appropriate separation between the NGO, business and governmental commitments to development. " Lord Hastings, KPMG W6 R LD "New. more effective ways of tackling societal E CC) NOM I C challenges will inevitably transcend traditional F R UM sector boundaries. This means civil society actors need to look to unusual sources for inspiration and relevance in order to adapt successfully. " The Future Rule ul Civil Sociely, WEF "Non-profits can no longer iust view the pri ate sector as charitable supporters, they are critical partners in affecting change through core business activities. ” Development Partnerships Impact Report. Acceriture
  46. 46. change. org AVAAZonc causes
  47. 47. Remember. ..
  48. 48. Is co-operation the only way to prevent organisational casualties?
  49. 49. Act IV: Navigating change All csos / Ii/ G05 present saw Ihemselvex lrl Ihis category I
  50. 50. "The future ain't what it used to be. " Yogi Berra
  51. 51. The First Social Networl<? 'nu«; onsxanvxan . C't, ,§; _'r,2.5, VVEEKEND REVIEW _ . . ~. . ~. .. . . .
  52. 52. The Social ile'7niiici'li<. est. "The whole of social life can be seen as "a set of points, some of which are joined by lines" to form a "total networ " of relations. " Professor J. A. Barnes ‘ P I x : :— -_ ‘Tut! -"'1-" " I ' , ,o*' , I ' -:2. ~ . , --« {,5 . .'- ,1"- ! 2'1"‘ _» fr‘-~"" _-.4 ! ,~ ‘ X ' r. ‘_''u: ‘v ‘A I ‘V . .= " ‘= . I . “ : , /»r*%~ ‘ f / ’:‘’i , '.-I, —,‘'’ : :§'e:7 _. .P-. . . .''4 T 95A
  53. 53. €53 organisation - INNOVATIO innovation un development to HR . ” ' N: Creation it focused of technology of a tactical on reb y sh/ ft/ ng
  54. 54. .. ... category
  55. 55. AM N "By 2016, we should no longer have a Director of Digital, nor a centralised digital department. " INTERNATIONAL Me, March 2012 1. Not customer-centric - Organisation and Channel first, Customer and Content second - Creation of digital content divorced from non-digital . .-. s.n. ... .m. g 3.. ... . 3: > I _ _ % % 2. Limited appreciation of the role ‘,5 as technology could play i s . . - Arab Spring and Occupy reinvented :5; :3: 1. rzr :3: :5! :3: :9. :3: at grassroots mobilisation - Technology for indirect social change was still the default 3. Digital operating model was creaking at the seams - Huge increase in demand for digital from both organisation and customer was not matched by investment - Centralised function could not move at the pace required The very existence of the department was becoming an impediment to wholesale adoption of digital thinking throughout the organisation
  56. 56. Still most commonly used structure within organisations Pros: .ii. ‘_. ‘.l. " l‘ °*°*"""*"“ - Consistent messaging 'hcENTRALIzED J E gl-;5;7;; ;g, across channels - Common platforms and tools throughout the organisation - Clear departmental ownership of the digital Digital Experience Z remit ~r'. §,'~t- Cons: *qk* - Treats digital as a single- DEg; <'; -mu, focus function E - Often lacks mandate to '5' * * * * make transformative * f Q * y 9 9 9 y * changes throughout org * ' * ‘ i’ ' i’ i’ - Centralised units can be Y** Y** Y** *** *** process-heavy and slow to respond - Makes innovation difficult within a complex organisation Source. Communicopia
  57. 57. Source. Cnmmumoupia fl D. ... n.. ,., o H Y BRID PCODII Vlflh Dlgital Experience 3 ~r'. :,'~r ~r*~r Diorut. DEPARTMENT Z , ?i'* ** . . ~? . . Vk . *0? . 1:39 93$ ~: r,‘! ;~r 333 “X Most conducive to continuous digital innovation Pros: - Multiple CoEs supported by service-orientated central unit - Functions manage own digital operations - Agile, innovative and responsive to change Cons: - Strategy remains open to interpretation - More organic than most organisations are comfortable with “To be sustainable, support for this new type of collaborative leadership needs to come via a larger change initiative from the top that moves toward looser, more adaptive structures overall. "
  58. 58. AM N "By 2016, we should no longer have a Director of Digital, nor a centralised digital department. " INTERNATIONAL Me, March 2012 1. Not customer-centric - Organisation and Channel first, Customer and Content second - Creation of digital content divorced from non-digital . .-. s.n. ... .m. g 3.. ... . 3: g I _ _ % % 2. Limited appreciation of the role ‘,5 as technology could play i s . . - Arab Spring and Occupy reinvented :5; :3: 1. rzz :3: :5! :3: :9. :3: at grassroots mobilisation - Technology for indirect social change was still the default 3. Digital operating model was creaking at the seams - Huge increase in demand for digital from both organisation and customer was not matched by investment - Centralised function could not move at the pace required The very existence of the department was becoming an impediment to wholesale adoption of digital thinking throughout the organisation
  59. 59. - I tug‘. i. .t. n.u_n. III kA_lIl£AlILA to. uiguui nu. .. both organisation and customer was not matched by investment - Centralised function could not move at the pace required The very existence of the department was becoming an impediment to wholesale adoption of digital thinking throughout the organisation Research & Procurement Talent Acquisition Engagement New Product Product Customer Development and Management Development Distribution Self-Service Income Generation The opportunity Normal digital business operations The opportunity The ‘Visible Spectrum‘ of Digital “°""‘°"”e‘“‘*°°"°"""“Y= ' a) Normalise digital thinking across the organisation by shifting our functional remit from that of strategic gatekeeper to operational enabler b) Resolve bottleneck issue by building digital capacity in, and devolving digital operations to, most functionally appropriate department or unit c) Creation of a flexible. yet robust. governance to ensure a coherent and cohesive digital customer experience
  60. 60. If you do anything, do the following: - 1. Get Human Resources on your side in terms of JDs and ongoing Learning & Development 2. Understand where subject matter expertise stops, digital expertise starts, and how to negotiate the overlap 3. Accept that there will be inevitable pain before unbridled pleasure 4. Don't lose your nerve
  61. 61. Devo-Max? Dissolving I your department is the nuclear opuon, not the only opuon
  62. 62. Build Capacity, Not Fiefdoms Are digital and social business units becoming their own silos? Digitaj I Social _ - Digital/ Social business units are ' g VK M _ often unfamiliar with the entire r, ‘ ‘ j , l ' ‘X customer journey ~~‘ I TY. »-—r—— vs» - Are subject-matter specialists “nag " for digital and/ or social enough when such tools and skillsets are being democratised? F _ ’_‘__i’” " - Universal digital ‘ownership’ under a single business unit is , ,., ,~> H becoming obsolete
  63. 63. Evolve from the role of gatekeeper to that of enabler HAlf HA! , ¥fifl_. .,g: ‘iiiiiiit'” llilTEl(EEPEll!
  64. 64. Bottom Up and Top Down C_ S U Strategy Structure ROI 0. M 65% of stuff believe senior management's ‘R v E E] digital knowledge is average or less ‘ GA’, 3 a Source: Econsultancy I/ F‘ : ,, ,,_ ec<°“" X 4 E 9 _ us: ’ (Q : i - J J C“. .- Mid-Mgt. Tech"°'°9v A, Nov 3 gQi u. .. . / . D Innovatwn Starbucks CDO worked with Clo, developed a - - . cross-fu nctional team Practjtjoner Functions Processes ‘intrapreneurs’
  65. 65. Baby Steps ". ..because perpetual revolution can be a tiresome thing” , D 0 on . ‘ , -“ ‘~ ‘ M. _ A «F. Why Small Tremors are better than Extremes of change-inducing m9ments*: - . Seismic Shifts: - - Does not require a huge investment in terms of effort resources finance . _ ~ - qj — or human capital Trauma _> Eplphany - Increased likelihood that they will be " e ‘ adopted across the organisation - Evidence-based, and thereby free of conjecture " Source: Vincent Deary I
  66. 66. Epflogue Brian Solis, Altimeter Group 1. Don't OD on OD - Be upfront: imposing digital transformation via the back door of organisational development will alienate stakeholders — get them involved from the outset. - Don't presume that everyone will instantly ascribe to your version of change (and it isn't necessarily because 'they don't get it‘). - Anticipate and mitigate the inevitable turf wars that will arise through greater devolution, especially between CMO and CIO. 2. Structural change is merely the beginning - Heed the advice of Peter Drucker: "Culture eats strategy for breakfast. " Your dreams of digital transformation will amount to nothing without sustainable behavioural change. - Fortify your relationship with Human Resources, making them an equal partner in your digital transformation programme. - Develop a comprehensive digital governance model prior to devolution; test, validate, modify, repeat. 3. Scenario planning within known parameters won't cut it - Fight confirmation bias towards existing product lines and business models. "lfyou do what you always did, you'll get where you always got, '’Albert Einstein. - Your customer does not see your business in the way that you do. Be bold enough to disrupt yourself, again and again, before someone else does. - Pilot ideas that a) can clearly demonstrate reciprocal benefits, b) limit your exposure to risk, and c) have the ability to scale rapidly.
  67. 67. 2015 and Beyond The Disappearance of Digital (). '.'er'r . /alenline Pr ngle t? :>—l«i1mtSer lheiein why ar V c far ? W 1-L—-—. D———- { use and 5h“ —‘ . / } I :9 _ '9 , t I / ‘g l gt H nu. 7 / ‘ “" V “ix . _. M. .. ‘- u E‘ a 40! -‘Th/ r.1 89910 A ’S""Pshat mg c~= “9e '-v . am“ ‘y R I». ,_¢, t ' 7 fl! . . . A , _ K‘ -4 “I I . / t >’ 1 -4- V . -3 E3 Iinlowenvalentinepringlel J‘ @thereinafter AI. » therein. org

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