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Digitalization. A perspective.

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Digitalization. A perspective.

  1. 1. Digitalization. A perspective. Roope Ruotsalainen Chief Digital Officer
  2. 2. Digitalization is everywhere in marketing. Frankly Partners digitalization
  3. 3. 92 % of all data in the world has been saved during last two years. Frankly Partners digitalization
  4. 4. Frankly Partners digitalization Digitalization and data does not equal to re-targeting.
  5. 5. Digitalization changes structures, we are incapable to see. Frankly Partners digitalization
  6. 6. No candle-maker has become bulb manufacturer. No carriage-maker has become car producer. The post office did not invent the email. Frankly Partners digitalization
  7. 7. Frankly Partners digitalization Technology is the media New demand patterns will emerge Future leadership is the only growth driver
  8. 8. Frankly Partners technology is the media technology is the media Since Gutenberg and 1450’s, printing press was the core of media. Now,
  9. 9. Frankly Partners technology is the media President Roosewelt begun his famous Fireside Chat radio speeches in 1940’s. President Obama continued the tradition, but not in radio. Technology, Google Hangouts replaced the media.
  10. 10. Frankly Partners technology is the media Putous (most watched TV show in Finland, week 5) 1 931 000 viewers Pew Die Pie (random Swedish game geek, one clip, week 5) 6 225 000 views (and 20M YouTube followers)
  11. 11. Frankly Partners technology is the media Sanoma (content) 10 000+ employees 1081 M€ market value Instagram (platform) 16 employees 730 M€ market value
  12. 12. Frankly Partners technology is the media If the content is the king, technology is King Kong.
  13. 13. Frankly Partners technology is the media However, the content is only as good as people sharing it, not as good as people making it.
  14. 14. new demand patterns will emerge Frankly Partners new demand patterns will emerge Technology has changed how people behave and think. In business,
  15. 15. Frankly Partners new demand patterns will emerge 1992   MP3-­‐standard   2003   iTunes   2008   Spo3fy  
  16. 16. Frankly Partners new demand patterns will emerge 1992   MP3-­‐standard   2003   iTunes   2008   Spo3fy   1995   Consumer  priced   CD-­‐R  recorder   1999   Napster  &   peer-­‐to-­‐peer   networks  
  17. 17. Frankly Partners new demand patterns will emerge “The only thing keeping most big companies from creating new categories is their lack of imagination - to see beyond what they’re selling today” Eddie Voon & Linda Deeken Harvard Business Review 03/2013
  18. 18. Frankly Partners new demand patterns will emerge “People tend to visit same sites, watch the same videos, read the same articles, and eventually, think the same thoughts.” Internet = Xerox?
  19. 19. Frankly Partners new demand patterns will emerge Within the endless loop of sharing and curating, winners are those creating new categories, thus new demand. Technology has changed travel & booking. But not yet the cruise industry.
  20. 20. Frankly Partners new demand patterns will emerge Create a new category. Create new demand.
  21. 21. Frankly Partners new demand patterns will emerge Customer centricity “What causes the customer behavior?” “From the age of the mass to the age of the individual.” Source: Helge Tenno NEW VALUE PROPOSITIONS NEW BUSINESS MODELS NEW JOBS- TO-BE-DONE NEW CUSTOMER JOURNEY NEW MARKETS NEW RELATIONSHIPS NEW MEETING PLACES
  22. 22. Frankly Partners future leadership is the only growth driver Data and analytics changed already the game. But the future leadership is the only growth driver
  23. 23. Frankly Partners future leadership is the only growth driver “With data-driven insights, companies can achieve 10 % to 30 % improvements in marketing performance, yet maintain their existing budgets.” - Nichols, on Harvard Business Review
  24. 24. Frankly Partners future leadership is the only growth driver REVENUE MARKET SEASON UNEMPLOYMENT CONSUMER INDEX GAS PRICE ONLINE DISCUSSIONS COMPETITORS PRODUCT LAUNCHES PRICING ADVERTISING PROMOTIONS ACTIVATION REVENUE SOLD ITEMS MARGIN MARKET SHARE CLIENT LIFE-TIME VALUE PRINT ADS TV COMMERCIALS SO-ME DIRECT MAIL SEARCH (SEM/SEO) MARKETING PR DIALOGUE MOBILEAP PS CLIENT SERVICE PROMOTIONS POINT OF SALE EARNED MEDIA PRICING DIGITAL SERVICES MARKETING BUSINESS SEARCH BEHAVIOUR SOCIAL RECOMMENDATION SERVICE USAGE VISITS TO BRICK&MORTAR Source: Harvard Business Review
  25. 25. Frankly Partners future leadership is the only growth driver Hmm, okey. Good to know. [What I was doing before being disturbed…?] Hey, I’ve forecasted that next week there’s less demand than normally!
  26. 26. Frankly Partners future leadership is the only growth driver Measurement, data, analytics and insights are nothing, without re-thinking leadership. It’s about asking right questions. It’s about asking “why”, not “what”.
  27. 27. Frankly Partners digitalization Finally…
  28. 28. Frankly Partners digitalization When everything is digital, digital commerce follows clients to analogic.
  29. 29. Frankly Partners digitalization Newspaper published by MrPorter.com online fashion shop
  30. 30. Frankly Partners digitalization Thank you! Roope Ruotsalainen Chief Digital Officer

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