BSAD 372 - CH 10

Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
Part 3
Implementation
Chapter 10
Managing digital business
transformation and growth
hacking
Digital Business and E-Commerce
Management
Seventh Edition

Learning outcomes
• Critically analyse the journey of an
organisation through transformation
• Review the approaches to be taken in a
digital transformation exercise
• Produce a growth hacking/agile
marketing plan
• Create a plan to measure and improve
the effectiveness of digital businesses
using analytics tools

Management issues
• What makes an exercise in a digital
business a digital transformation project?
• What are the non-technical aspects of a
digital transformation project?
• How do we gain traction on a limited
budget?
• What techniques are available to measure
and optimise our services?
• Does the organisation have the right culture
to support a growth hacking approach?

Activity – Digital opportunities
• Make a list of any new technological
developments that have occurred in the last
12 months that seem to have appeared
from nowhere
• Consider what changes are needed by any
organisation to adapt to the development
– What cultural, practice or process changes
could the technology create?
– How would people change?

Typical responses
• People might bring in aspects of digital
culture
• People might work different hours or in a
different place
• People might change the way they do
something in the workplace

Definitions
• What’s the difference between:
– Digital transformation?
– Digital business transformation?
• What’s the difference between:
– Adopting technology?
– Adapting to technology?

Figure 10.1 Ward and Peppard’s
IT portfolio grid
Source: Ward and Peppard. (2002)

The applications portfolio
• What makes something high-potential?
• What makes something strategic?
• What makes something key-operational?
• What makes something support?

Opportunities provided by digital
• Customer service and service design
– Customer insight
– Adding value
– Interfaces with customers
• Business and organisational processes
– Automation
• Business models
– Digital at the heart of the business opportunity
– Adapting the business to a digital opportunity

Framework for transformation
• The process of review
– Looking at where the digital opportunity is
– Confidence about the digital opportunity
– Leadership grasp of digital
– Maturity of digital
• The process of strategy
• The process of resourcing and planning
– Design of transformation
– Programme of change

Framework for transformation
(Continued)
• The process of deployment
• The process of living with and evaluating
digital transformation

Figure 10.3 Ideal skill set of a
growth hacking team

The growth hacking process
There are five key pillars to achieving
growth hacking success:
1. Product/market fit – create a Minimum
Viable Product (MVP)
2. User data analysis
3. Conversion rate optimisation (CRO)
4. Viral growth
5. Retention and scalable growth

Figure 10.7 The lean start-up
Source: https://hbr.org/2013/05/why-the-lean-start-up-changes-everything

User data analysis
The five main areas of user testing are:
1. Technology analysis, for example, conversion
rate per browser
2. Heuristic analysis, for example, relevancy,
distraction and online value proposition
3. 3 Web analytics, for example, flow reports
4. Qualitative surveys, for example, exit surveys
5. Usability testing, for example, user session
videos

Figure 10.10 The conversion
optimisation loop
Source: www.slideshare.net/seanellis/cro-preso-for-growth-hackers-conf-nov-2013-ellis-updated-28050686/7-Steps_to_Better_
ConversionsTwitter_SeanElliswwwGrowthHackerscom7

User data analysis
There are seven main areas that can help
improve website conversion and sales:
1. A/B testing an multivariate testing
2. Having a structured approach
3. Customer journey analysis (covered in
Chapter 8)
4. Copy optimisation
5. Online surveys/customer feedback
6. Cart abandonment analysis
7. Segmentation (covered in Chapters 7 & 8)

Figure 10.11 Conversion rate
optimisation maturity model
Source: http://online-behavior.com/analytics/conversion-optimization-model

Viral growth
There are three main types of viral growth
1. Inherent virality: built into the product and
happens as a function of its use (e.g. Skype is
only useful if you share it with others)
2. Artifical virality: forced and is often built into a
reward system (e.g. GiffGaff and it’s community
of users, who help answer each other’s questions
and gain cash rewards)
3. Word-of-Mouth virality: when conversations are
generated by satisfied users (e.g. Zappos and it’s
high customer service, which is about ‘delivering
happiness’)

Figure 10.17 The practical growth
hacking framework

Figure 10.19 Dave McClure’s customer
lifecycle/conversion behaviour
Source : www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

Figure 10.20 Operational
elements of growth hacking

Figure 10.22 The five diagnostic categories
for e-marketing measurement from the
framework presented by Chaffey (2000)

Summary
• You should be able to critically analyse the
journey of an organisation through transformation
• You should be able to review the approaches to
be taken in a digital transformation exercise
• You should be able to produce a growth hacking /
agile marketing plan
• You should be able to create a plan to measure
and improve the effectiveness of digital
businesses using analytics tools

BSAD 372 - CH 10

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