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Digital Transformation:
what it is & how to get there
Ashley Friedlein, CEO, Econsultancy
@AshleyFriedlein
NOTE: this presentation is licensed
under Creative Commons

(Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0))

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Editable PowerPoint version of this presentation, with commentary in the notes, and
including builds, is available to Econsultancy subscribers on the Econsultancy site.
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| Digital Transformation
About the author
Ashley is the CEO and Co-founder of Econsultancy, a
research and training group with over 200,000 subscribers.
Econsultancy provides access to data, best practice guides,
trends, training and events - all focused on improving digital
skills and digital marketing and ecommerce effectiveness.
Econsultancy was founded in 1999 and has offices in
London, New York and Singapore.
Ashley has written two books on digital marketing which
have sold over 40,000 copies. He is a columnist for
Marketing Week magazine and guest contributor to
numerous other digital media and marketing publications. He
writes for Econsultancy’s own award-winning blog and
speaks at events internationally, actively promoting
Econsultancy’s brand and content as well as the interests of
digital and marketing professionals more generally.
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Interested in Ashley
presenting to you?
Please see contact details on
final slide
Contents
 Digital Transformation
 Strategy
 Technology
 People
 Process
 Business Transformation

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Digital
Transformation

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| Digital Transformation
What is Digital Transformation?
 Digital Transformation is the journey from where

a
company is, to where it aspires to be digitally.

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What is a ‘digital’ organisation?
 digital organisation is one that:
A
1. Focuses on customer experience irrespective of channel
2. Has a ‘digital’ culture

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Net-a-Porter is a successful digital
business. What do they obsess about?
Customer
Service
Packaging

“EIP”s

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Who is better at digital based on the
packaging / unboxing experience?

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Amazon’s relentless focus on
improving the customer experience

Sources: Amazon, Oracle
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What is most impressive about Amazon?
The digital part of the customer
experience? Or the delivery?

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Perhaps most ‘transformative’ is where
digital meets physical to enrich the
customer experience

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*The* strapline for a digital
organisation?

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What is a digital culture?

Suggestion: Hire for culture /
personality and not (just) digital
skills. The latter can be taught.

1. Commercial

7. Empowered

2. Customer-centric

8. Data-driven

3. Transparent

9. Passion

4. Collaborative

10. Innovative

5. Environment

11. Agile

6. “Growth hacker”
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Perhaps you know you are digital /
digitally transformed when…
 No-one in your company has ‘digital, online, e-,

interactive…’ in their job title
 There is no separate ‘digital strategy’
 Real-time retargeted dynamic

online ads based on social
profile data #whatever
 Posters in the underground

#howcoolisthat
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Econsultancy’s Digital Maturity
Framework: roadmap to digital excellence

Digital
Excellence

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Success is down to leadership…

Source: McKinsey Global Survey, August 2013
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..and organisational alignment

Source: Econsultancy User Survey, Sept 2013
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But only 1 in 10 marketing and IT
executives believe collaboration between
CMOs and CIOs is at the right level

Source: The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity,
Accenture Interactive
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33% see Digital Transformation as a
‘huge challenge’

Source: Econsultancy User Survey, Sept 2013
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27% of execs rate digital transformation
as already “A Matter of Survival”

Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013
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“Executives estimate that at
best, their companies are
25% of the way toward
realizing the end-state vision
for their digital programs”

Source: McKinsey Global Survey, Aug 2013
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How do you actually make it happen at
scale, across the whole organisation?
1. Create the right environment for ‘osmotic’ digital

transformation
 Incentivising the right behaviours
 New blood/digital natives
 Show/prove the value of digital to all
 Digital culture

2. LEAD the transformation
 CEO should own/drive this

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"Demand is growing for insight
into digital business, particularly
among CEOs”

Source: Diane Morello, managing vice president, Gartner, 2013
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"31% say their CEOs
personally sponsor these
[digital] initiatives, up from 23%
who said so in 2012.
[...] the CEO is the only
executive who has the mandate
and ability to drive such a
cross-cutting program.”
Source: McKinsey Global Survey, Aug 2013
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Jez Frampton, Global CEO, Interbrand, on x-channel experiences +
importance of executive/CEO support (00:46 - 01:20)

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Strategy

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2013

LV= Strategy Day, Econsultancy Presentation
| Digital Transformation
What should be in a Digital Strategy? (1)
Strategy
•Make it clear how the digital strategy supports the overall business

strategy.
•Business plan/P&L for digital as necessary.
•Articulate short, medium and long term plan/vision for digital. For example it

may well be that in the long term the objective is that ‘digital’ will dissolve
back into the business so structures, roles, P&Ls etc will change over time.
•Define digital principles and digital design principles. Focus should be user-

centred design and customer experience
•Define “what good looks like” for digital: KPIs, success metrics, what

analytics/reporting are planned

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What should be in a Digital Strategy? (2)
People/Process
•Digital governance: who makes decisions and how? Who are the

leaders for digital?
•Structure: organisational design, teams, roles and responsibilities for

digital
•Culture for digital: define how you plan to work (agile, iterative), your

planned environment, your values e.g. sharing, transparency,
collaboration
•Training, education, empowerment, integration of digital across the

business. Articulate how you plan to bring digital to the whole business,
break down knowledge, and other, silos.
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What should be in a Digital Strategy? (3)
Tech/Ops
•Your plans around content, community, commerce
•Digital tech: infrastructure, architecture and ecosystem inc. points of

integration across business
•Data: metadata, taxonomy, integration with rest of business and systems

e.g. CRM, sales
•Tech Standards: standards/protocols you intend to use/comply with
•Legal: data protection, privacy, IP/rights policies, licences etc.
•Procurement: define who is in charge of digital tech and agency

procurement/selection (should be digital specialists)
•Define tools/environment the digital team will require to do their jobs

effectively
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What should be in a Digital Strategy? (4)
Marketing/Sales
•Plans/resourcing around customer lifecycle: customer acquisition,

conversion, retention (including online customer service)
•Address plans around digital marketing fundamentals: advertising,

email / eCRM, content marketing, social, mobile, search marketing,
customer experience, analytics/optimisation

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Tate’s digital strategy evolution

Source: Tate website
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GOV.UK digital & design principles

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Technology

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Even politics has experienced the rise
of tech

• Obama’s 2008 presidential campaign
team had 4 engineers working on it
• Obama’s 2012 campaign team had a
team of how many engineers?

40!

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By 2017 the CMO will spend
more on IT than the CIO

Source: Gartner, 2013
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66% strongly agree that:
Marketing is becoming
increasingly
technology-driven

Source: Econsultancy User Survey, 2013
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Most future disruptive technology relates
directly to digital business transformation

Source: McKinsey Institute, “Disruptive technologies: Advances that will transform life,
business, and the global economy”
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However… although 90% of professionals
say tech impacts their job, only 20% have
the right skills

Source: Research for Digital Domination Summit 2012
(2,000 professional respondents)
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*Which* technology is much less important than organisational alignment with IT

“Marry the
technologists”

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People

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Structure

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Stage 1: Let many digital flowers bloom…

BBC
1997-2001

Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing
Best Practice Guide
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Stage 2: Dedicated Digital Team / CoE

BBC
2001-2006

Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing
Best Practice Guide
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Stage 3: Hub & Spoke

BBC
2007-2012

Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing
Best Practice Guide
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Stage 4: Multiple Hub & Spoke

BBC
2012

Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing
Best Practice Guide
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Digital Enlightenment = “Honeycomb”

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Culture

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Culture is one of the most significant
barriers to digital transformation

Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013
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What is a digital culture? (recap)
1. Commercial

7. Empowered

2. Customer-centric

8. Data-driven

3. Transparent

9. Passion

4. Collaborative

10. Innovative

5. Environment

11. Agile

6. “Growth hacker”
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Nordstrom: “What we want in a teammate”
“Customer-driven”
“Constantly changing”

“Collaborative”
“Curiosity”
“Passion”
“Always learning”
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Roles &
Responsibilities

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“Pi-shaped” people: broad skills but
depth in creative / marketing AND tech /
data (left and right brain)

T

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Growth Hacker
• From Silicon Valley
• Combines marketing with
product development
• About getting to points of
sustainable growth with new
products/services
• AirBnB case study: Growth
Hacker is the new VP
Marketing
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Product Manager

Source: Mind the Product
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One way to do it... from CIO to CMO
Ali Hine
CIO CMO, IG Group

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To CDO or not to CDO?
“30% of respondents have a
CDO. [those with a CDO]
indicate significantly more
progress toward their digital
vision than those without one”
McKinsey Global Survey, 2013

Suggestion:
CDO should be an interim role.
CDO should report to CEO.

Source: Econsultancy
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New job descriptions for HR to understand

Source: Econsultancy
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How do you attract top digital talent?
 Digital vision – a clear strategy and the

opportunity “to make a difference”
 Product – the chance to create a beautiful

product / experience
 Talent begets talent - get to work with other talent,

digital ‘craft’
 Culture - you have a digital culture (see earlier)

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Environment

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BBC W1 – tech + editorial together

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BBC Salford, Google London – open /
collaborative / ‘ad hoc’ spaces

Space echoes working practices:
small, rounded teams; fluid / agile;
mixing 2013
disciplines; no hierarchy.
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Process

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Four big challenges for digital / process
1. Multi-disciplinary
2. Speed / Agility
3. Complexity
4. Innovation

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How we need to work
“A successful digital culture is reliant on innovation,
openness and responsiveness.”
Rachel Neaman, Department of Health, Deputy Director, Digital, Channel
Strategy and Publishing

“Being able to change at speed is very important. We
know government can move quickly because we built the
new e-petitions system in less than 2 months.”
Sharon Cooper, Government Digital Service, Cabinet Office, Deputy Director

“Transformation means a change in culture and process in
order to deliver change and make sure that we are seen
by our customers to be innovating and moving forward.”
Simon Shorey, Barclays, Head of Development, UK Retail and Business Banking
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| Digital Transformation
Multi-disciplinary: Amazon’s “two pizza” teams

+ co-located
+ manage by objectives / “freedom within
boundaries”
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| Digital Transformation
How do we deal with the need to
operate at SPEED?!

Real time
On demand

Agile
Responsive

Automation
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| Digital Transformation
Agile – for software development
Manifesto for Agile Software
Development
We are uncovering better ways of developing
software by doing it and helping others do it.
Through this work we have come to value:

Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on
the right, we value the items on the left more.

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Agile – for marketing

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Nordstrom Innovation Lab

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Speed is a vital source of
competitive advantage in digital

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Google’s USP has always been speed?

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From mere fast to Now. Predictive. Push.

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iOS7’s “background refresh” –
improving the speed / responsiveness
of the user experience

“more recent information... content
fresh and ready... no need to wait...
massive improvement in customer
experience”
Eventbrite, Yplan, Realmac

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1-3 days: if a video is to go viral

Source: Unruly “Science of Sharing”, July 2013
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< 6 hrs: half your email opens occur

Source: Mailer Mailer
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< 3hrs: 50% of clicks on shared links

Source: bit.ly
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00:01 – Twitter is ‘Marketing in the Moment’

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The Stalagmite vs. the Conductor

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Business
Transformation

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| 1 Feb 2010
2013

LV= Strategy Day, Econsultancy Presentation
| Digital Transformation
The rate of change is accelerating at a business level too

“The average lifespan of an S&P
500 company has decreased by
more than 50 years in the last
century, from 67 years in the
1920s to just 15 years today”
Source: Professor Richard Foster, Yale University
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“By 2020, more than threequarters of the S&P 500 will be
companies that we have not
heard of yet.”

Source: Professor Richard Foster, Yale University
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The journey towards digital excellence

Source: Econsultancy Digital Maturity Framework
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Burberry – doing well because of
‘digital transformation’?

Source: The Digital Advantage: How digital leaders outperform
their peers in every industry, CapGemini / MIT Sloan Management
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Digitally-transformed busineses
outperform their peers in every industry
Profitability

Source: The Digital Advantage: How digital leaders outperform their peers in every
industry, CapGemini / MIT Sloan Management
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| Digital Transformation
Digital Transformation
is actually
Business Transformation

| 86

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| Digital Transformation
Digital Transformation
with Econsultancy
We can measure your organisation’s digital
capabilities so you know where you are. This is the
baseline against which improvement can be measured
and benchmarked, both internally and versus the
market.
We deliver digital capability programs via training
and workshops both face to face and online. These
accelerate the adoption and integration of the digital
skills needed to deliver on digital transformation.
Talk to us about an initial, no-cost consultation.

Call us on +44 (0)20 7269 1450 (UK) or
+1 212 971-0630 (US) or email
transformation@econsultancy.com
| 87

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| Digital Transformation

Editable PowerPoint version of
this presentation, with
commentary in the notes, and
including builds, is available to
Econsultancy subscribers on the
Econsultancy site.

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Digital Transformation: What it is and how to get there

  • 1. Digital Transformation: what it is & how to get there Ashley Friedlein, CEO, Econsultancy @AshleyFriedlein
  • 2. NOTE: this presentation is licensed under Creative Commons (Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0)) Your are free to share, copy, distribute and transmit the work Editable PowerPoint version of this presentation, with commentary in the notes, and including builds, is available to Econsultancy subscribers on the Econsultancy site. | 2 | 2013 | Digital Transformation
  • 3. About the author Ashley is the CEO and Co-founder of Econsultancy, a research and training group with over 200,000 subscribers. Econsultancy provides access to data, best practice guides, trends, training and events - all focused on improving digital skills and digital marketing and ecommerce effectiveness. Econsultancy was founded in 1999 and has offices in London, New York and Singapore. Ashley has written two books on digital marketing which have sold over 40,000 copies. He is a columnist for Marketing Week magazine and guest contributor to numerous other digital media and marketing publications. He writes for Econsultancy’s own award-winning blog and speaks at events internationally, actively promoting Econsultancy’s brand and content as well as the interests of digital and marketing professionals more generally. | 3 | 2013 | Digital Transformation Interested in Ashley presenting to you? Please see contact details on final slide
  • 4. Contents  Digital Transformation  Strategy  Technology  People  Process  Business Transformation | 4 | 2013 | Digital Transformation
  • 6. What is Digital Transformation?  Digital Transformation is the journey from where a company is, to where it aspires to be digitally. | 6 | 2013 | Digital Transformation
  • 7. What is a ‘digital’ organisation?  digital organisation is one that: A 1. Focuses on customer experience irrespective of channel 2. Has a ‘digital’ culture | 7 | 2013 | Digital Transformation
  • 8. Net-a-Porter is a successful digital business. What do they obsess about? Customer Service Packaging “EIP”s | 8 | 2013 | Digital Transformation
  • 9. Who is better at digital based on the packaging / unboxing experience? | 9 | 2013 | Digital Transformation
  • 10. Amazon’s relentless focus on improving the customer experience Sources: Amazon, Oracle | 10 | 2013 | Digital Transformation
  • 11. What is most impressive about Amazon? The digital part of the customer experience? Or the delivery? | 11 | 2013 | Digital Transformation
  • 12. Perhaps most ‘transformative’ is where digital meets physical to enrich the customer experience | 12 | 2013 | Digital Transformation
  • 13. *The* strapline for a digital organisation? | 13 | 2013 | Digital Transformation
  • 14. What is a digital culture? Suggestion: Hire for culture / personality and not (just) digital skills. The latter can be taught. 1. Commercial 7. Empowered 2. Customer-centric 8. Data-driven 3. Transparent 9. Passion 4. Collaborative 10. Innovative 5. Environment 11. Agile 6. “Growth hacker” | 14 | 2013 | Digital Transformation
  • 15. Perhaps you know you are digital / digitally transformed when…  No-one in your company has ‘digital, online, e-, interactive…’ in their job title  There is no separate ‘digital strategy’  Real-time retargeted dynamic online ads based on social profile data #whatever  Posters in the underground #howcoolisthat | 15 | 2013 | Digital Transformation
  • 16. Econsultancy’s Digital Maturity Framework: roadmap to digital excellence Digital Excellence | 16 | 2013 | Digital Transformation
  • 17. Success is down to leadership… Source: McKinsey Global Survey, August 2013 | 17 | 2013 | Digital Transformation
  • 18. ..and organisational alignment Source: Econsultancy User Survey, Sept 2013 | 18 | 2013 | Digital Transformation
  • 19. But only 1 in 10 marketing and IT executives believe collaboration between CMOs and CIOs is at the right level Source: The CMO-CIO disconnect: Bridging the gap to seize the digital opportunity, Accenture Interactive | 19 | 2013 | Digital Transformation
  • 20. 33% see Digital Transformation as a ‘huge challenge’ Source: Econsultancy User Survey, Sept 2013 | 20 | 2013 | Digital Transformation
  • 21. 27% of execs rate digital transformation as already “A Matter of Survival” Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013 | 21 | 2013 | Digital Transformation
  • 22. “Executives estimate that at best, their companies are 25% of the way toward realizing the end-state vision for their digital programs” Source: McKinsey Global Survey, Aug 2013 | 22 | 2013 | Digital Transformation
  • 23. How do you actually make it happen at scale, across the whole organisation? 1. Create the right environment for ‘osmotic’ digital transformation  Incentivising the right behaviours  New blood/digital natives  Show/prove the value of digital to all  Digital culture 2. LEAD the transformation  CEO should own/drive this | 23 | 2013 | Digital Transformation
  • 24. "Demand is growing for insight into digital business, particularly among CEOs” Source: Diane Morello, managing vice president, Gartner, 2013 | 24 | 2013 | Digital Transformation
  • 25. "31% say their CEOs personally sponsor these [digital] initiatives, up from 23% who said so in 2012. [...] the CEO is the only executive who has the mandate and ability to drive such a cross-cutting program.” Source: McKinsey Global Survey, Aug 2013 | 25 | 2013 | Digital Transformation
  • 26. Jez Frampton, Global CEO, Interbrand, on x-channel experiences + importance of executive/CEO support (00:46 - 01:20) | 26 | 2013 | Digital Transformation
  • 27. Strategy | 27 | 1 Feb 2010 2013 LV= Strategy Day, Econsultancy Presentation | Digital Transformation
  • 28. What should be in a Digital Strategy? (1) Strategy •Make it clear how the digital strategy supports the overall business strategy. •Business plan/P&L for digital as necessary. •Articulate short, medium and long term plan/vision for digital. For example it may well be that in the long term the objective is that ‘digital’ will dissolve back into the business so structures, roles, P&Ls etc will change over time. •Define digital principles and digital design principles. Focus should be user- centred design and customer experience •Define “what good looks like” for digital: KPIs, success metrics, what analytics/reporting are planned | 28 | 2013 | Digital Transformation
  • 29. What should be in a Digital Strategy? (2) People/Process •Digital governance: who makes decisions and how? Who are the leaders for digital? •Structure: organisational design, teams, roles and responsibilities for digital •Culture for digital: define how you plan to work (agile, iterative), your planned environment, your values e.g. sharing, transparency, collaboration •Training, education, empowerment, integration of digital across the business. Articulate how you plan to bring digital to the whole business, break down knowledge, and other, silos. | 29 | 2013 | Digital Transformation
  • 30. What should be in a Digital Strategy? (3) Tech/Ops •Your plans around content, community, commerce •Digital tech: infrastructure, architecture and ecosystem inc. points of integration across business •Data: metadata, taxonomy, integration with rest of business and systems e.g. CRM, sales •Tech Standards: standards/protocols you intend to use/comply with •Legal: data protection, privacy, IP/rights policies, licences etc. •Procurement: define who is in charge of digital tech and agency procurement/selection (should be digital specialists) •Define tools/environment the digital team will require to do their jobs effectively | 30 | 2013 | Digital Transformation
  • 31. What should be in a Digital Strategy? (4) Marketing/Sales •Plans/resourcing around customer lifecycle: customer acquisition, conversion, retention (including online customer service) •Address plans around digital marketing fundamentals: advertising, email / eCRM, content marketing, social, mobile, search marketing, customer experience, analytics/optimisation | 31 | 2013 | Digital Transformation
  • 32. Tate’s digital strategy evolution Source: Tate website | 32 | 2013 | Digital Transformation
  • 33. GOV.UK digital & design principles | 33 | 2013 | Digital Transformation
  • 34. Technology | 2013 | Digital Transformation
  • 35. Even politics has experienced the rise of tech • Obama’s 2008 presidential campaign team had 4 engineers working on it • Obama’s 2012 campaign team had a team of how many engineers? 40! | 2013 | Digital Transformation
  • 36. By 2017 the CMO will spend more on IT than the CIO Source: Gartner, 2013 | 36 | 2013 | Digital Transformation
  • 37. 66% strongly agree that: Marketing is becoming increasingly technology-driven Source: Econsultancy User Survey, 2013 | 37 | 2013 | Digital Transformation
  • 38. Most future disruptive technology relates directly to digital business transformation Source: McKinsey Institute, “Disruptive technologies: Advances that will transform life, business, and the global economy” | 38 | 2013 | Digital Transformation
  • 39. However… although 90% of professionals say tech impacts their job, only 20% have the right skills Source: Research for Digital Domination Summit 2012 (2,000 professional respondents) | 2013 | Digital Transformation
  • 40. *Which* technology is much less important than organisational alignment with IT “Marry the technologists” | 40 | 2013 | Digital Transformation
  • 41. People | 2013 | Digital Transformation
  • 42. Structure | 42 | 2013 | Digital Transformation
  • 43. Stage 1: Let many digital flowers bloom… BBC 1997-2001 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide | 43 | 2013 | Digital Transformation
  • 44. Stage 2: Dedicated Digital Team / CoE BBC 2001-2006 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide | 44 | 2013 | Digital Transformation
  • 45. Stage 3: Hub & Spoke BBC 2007-2012 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide | 45 | 2013 | Digital Transformation
  • 46. Stage 4: Multiple Hub & Spoke BBC 2012 Source: Econsultancy’s Digital Marketing: Organisational Structures and Resourcing Best Practice Guide | 46 | 2013 | Digital Transformation
  • 47. Digital Enlightenment = “Honeycomb” | 47 | 2013 | Digital Transformation
  • 48. Culture | 48 | 2013 | Digital Transformation
  • 49. Culture is one of the most significant barriers to digital transformation Source: MIT Sloan Management/Capgmini, “Embracing Digital Technology”, 2013 | 49 | 2013 | Digital Transformation
  • 50. What is a digital culture? (recap) 1. Commercial 7. Empowered 2. Customer-centric 8. Data-driven 3. Transparent 9. Passion 4. Collaborative 10. Innovative 5. Environment 11. Agile 6. “Growth hacker” | 50 | 2013 | Digital Transformation
  • 51. Nordstrom: “What we want in a teammate” “Customer-driven” “Constantly changing” “Collaborative” “Curiosity” “Passion” “Always learning” | 51 | 2013 | Digital Transformation
  • 52. Roles & Responsibilities | 52 | 2013 | Digital Transformation
  • 53. “Pi-shaped” people: broad skills but depth in creative / marketing AND tech / data (left and right brain) T | 53 | 2013 | Digital Transformation
  • 54. Growth Hacker • From Silicon Valley • Combines marketing with product development • About getting to points of sustainable growth with new products/services • AirBnB case study: Growth Hacker is the new VP Marketing | 2013 | Digital Transformation
  • 55. Product Manager Source: Mind the Product | 55 | 2013 | Digital Transformation
  • 56. One way to do it... from CIO to CMO Ali Hine CIO CMO, IG Group | 56 | 2013 | Digital Transformation
  • 57. To CDO or not to CDO? “30% of respondents have a CDO. [those with a CDO] indicate significantly more progress toward their digital vision than those without one” McKinsey Global Survey, 2013 Suggestion: CDO should be an interim role. CDO should report to CEO. Source: Econsultancy | 57 | 2013 | Digital Transformation
  • 58. New job descriptions for HR to understand Source: Econsultancy | 58 | 2013 | Digital Transformation
  • 59. How do you attract top digital talent?  Digital vision – a clear strategy and the opportunity “to make a difference”  Product – the chance to create a beautiful product / experience  Talent begets talent - get to work with other talent, digital ‘craft’  Culture - you have a digital culture (see earlier) | 59 | 2013 | Digital Transformation
  • 60. Environment | 60 | 2013 | Digital Transformation
  • 61. BBC W1 – tech + editorial together | 61 | 2013 | Digital Transformation
  • 62. BBC Salford, Google London – open / collaborative / ‘ad hoc’ spaces Space echoes working practices: small, rounded teams; fluid / agile; mixing 2013 disciplines; no hierarchy. | 62 | | Digital Transformation
  • 63. Process | 2013 | Digital Transformation
  • 64. Four big challenges for digital / process 1. Multi-disciplinary 2. Speed / Agility 3. Complexity 4. Innovation | 64 | 2013 | Digital Transformation
  • 65. How we need to work “A successful digital culture is reliant on innovation, openness and responsiveness.” Rachel Neaman, Department of Health, Deputy Director, Digital, Channel Strategy and Publishing “Being able to change at speed is very important. We know government can move quickly because we built the new e-petitions system in less than 2 months.” Sharon Cooper, Government Digital Service, Cabinet Office, Deputy Director “Transformation means a change in culture and process in order to deliver change and make sure that we are seen by our customers to be innovating and moving forward.” Simon Shorey, Barclays, Head of Development, UK Retail and Business Banking | 65 | 2013 | Digital Transformation
  • 66. Multi-disciplinary: Amazon’s “two pizza” teams + co-located + manage by objectives / “freedom within boundaries” | 66 | 2013 | Digital Transformation
  • 67. How do we deal with the need to operate at SPEED?! Real time On demand Agile Responsive Automation | 2013 | Digital Transformation
  • 68. Agile – for software development Manifesto for Agile Software Development We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more. | 68 | 2013 | Digital Transformation
  • 69. Agile – for marketing | 69 | 2013 | Digital Transformation
  • 70. Nordstrom Innovation Lab | 70 | 2013 | Digital Transformation
  • 71. Speed is a vital source of competitive advantage in digital | 71 | 2013 | Digital Transformation
  • 72. Google’s USP has always been speed? | 72 | 2013 | Digital Transformation
  • 73. From mere fast to Now. Predictive. Push. | 73 | 2013 | Digital Transformation
  • 74. iOS7’s “background refresh” – improving the speed / responsiveness of the user experience “more recent information... content fresh and ready... no need to wait... massive improvement in customer experience” Eventbrite, Yplan, Realmac | 74 | 2013 | Digital Transformation
  • 75. 1-3 days: if a video is to go viral Source: Unruly “Science of Sharing”, July 2013 | 75 | 2013 | Digital Transformation
  • 76. < 6 hrs: half your email opens occur Source: Mailer Mailer | 76 | 2013 | Digital Transformation
  • 77. < 3hrs: 50% of clicks on shared links Source: bit.ly | 77 | 2013 | Digital Transformation
  • 78. 00:01 – Twitter is ‘Marketing in the Moment’ | 78 | 2013 | Digital Transformation
  • 79. The Stalagmite vs. the Conductor | 79 | 2013 | Digital Transformation
  • 80. Business Transformation | 80 | 1 Feb 2010 2013 LV= Strategy Day, Econsultancy Presentation | Digital Transformation
  • 81. The rate of change is accelerating at a business level too “The average lifespan of an S&P 500 company has decreased by more than 50 years in the last century, from 67 years in the 1920s to just 15 years today” Source: Professor Richard Foster, Yale University | 81 | 2013 | Digital Transformation
  • 82. “By 2020, more than threequarters of the S&P 500 will be companies that we have not heard of yet.” Source: Professor Richard Foster, Yale University | 82 | 2013 | Digital Transformation
  • 83. The journey towards digital excellence Source: Econsultancy Digital Maturity Framework | 83 | 2013 | Digital Transformation
  • 84. Burberry – doing well because of ‘digital transformation’? Source: The Digital Advantage: How digital leaders outperform their peers in every industry, CapGemini / MIT Sloan Management | 84 | 2013 | Digital Transformation
  • 85. Digitally-transformed busineses outperform their peers in every industry Profitability Source: The Digital Advantage: How digital leaders outperform their peers in every industry, CapGemini / MIT Sloan Management | 85 | 2013 | Digital Transformation
  • 86. Digital Transformation is actually Business Transformation | 86 | 2013 | Digital Transformation
  • 87. Digital Transformation with Econsultancy We can measure your organisation’s digital capabilities so you know where you are. This is the baseline against which improvement can be measured and benchmarked, both internally and versus the market. We deliver digital capability programs via training and workshops both face to face and online. These accelerate the adoption and integration of the digital skills needed to deliver on digital transformation. Talk to us about an initial, no-cost consultation. Call us on +44 (0)20 7269 1450 (UK) or +1 212 971-0630 (US) or email transformation@econsultancy.com | 87 | 2013 | Digital Transformation Editable PowerPoint version of this presentation, with commentary in the notes, and including builds, is available to Econsultancy subscribers on the Econsultancy site.

Editor's Notes

  1. Clearly Net-a-Porter focus a lot of effort on their digital experiences. But just as much consideration is given to the whole experience including non-digital ones such as personal shoppers and the packaging. Indeed these non-digital experiences are arguably more important than the digital ones to Net-a-Porter’s highest value customers. “EIPs” are more than VIPs. They are Extremely Important Persons. These are the top 1% responsible for a disproportionate amount of Net-a-Porter’s business. Their orders are prioritised - picked, packed and despatched first. They get an even better customer experience.
  2. This may not now be illustrative / fair but at the time the Liberty experience of a taped up jiffy bag was no way near as good as the Burberry experience. Companies like Apple are also known for their packaging. Burberry is well regarded for its pioneering digital experiences. But the point is that to be ‘digital’ is about focusing on the customer experience across all touch points, not just the digital ones.
  3. Amazon regularly tops customer satisfaction surveys as this letter from Jeff Bezos shows. And yet, as this research from Oracle shows, it is also the case that customers want a telephone number to deal with queries. We all know how hard it is to find a telephone number to contact Amazon. So how come customers are so satisfied with them? It is because everything just works. They focus so much on the customer experience and making it easy that you don’t have to resort to customer service. Executing on customer experience is the best route to customer satisfaction.
  4. Amazon have done impressive and pioneering things over the years in digital e.g. One-click. But now their digital experiences are no better than others who have caught up? In fact, now, it is Amazon’s non-digital experiences (delivery) that make them stand out. As a titan of ‘digital’ businesses they too are focused on all channels to optimise the experience, not just digital ones.
  5. National Geographic brought to live through Augmented Reality in a shopping mall. Meatpack’s mobile application ‘Hijack’ Audi’s Digital Car Showroom Window-shopping through tablets and phones (Net-a-Porter)
  6. Commercially minded Customer-centric Transparent – data available to all, including commercials Collaborative – multidisciplinary teams (that often change by project) Environment - tools/tech to collaborate (cloud/SasS); hierarchy not evident (e.g. ‘department’ not used but ‘team’; open plan offices) “Growth hacker” - marketing + tech closely aligned; marketers are tech savvy… techies are marketing-savvy Empowered – ‘fail fast’, ‘ideas from anywhere’ Data-driven – test and learn. Evidence-based decisions Passion – hungry to learn more Innovative – naturally innovative. Embrace change. Curious. Agility – in processes &amp; approach
  7. The second two points relate to Econsultancy’s marketing team. ‘Digital’ marketing is the norm for them. Where they get excited is ‘traditional’ marketing. This ‘retro’ thinking seems to be a characteristic of sophisticated digital organisations.
  8. This is Econsultancy’s model to show how organisations mature from emergent to managed to optimised across the four key transformational vectors of strategy, technology, people, process.
  9. Tate’s online strategy is interesting partly because it is public and also because it is now in its second incarnation so you can see how thinking has moved on. The level of sophistication in their thinking is evident in the sub-title to the latest digital strategy “Digital as a Dimension of Everything”.
  10. It matters less that your digital/design principles are ‘correct’ and more that you actually have them in order to guide decision making and focus the efforts.
  11. Commercially minded Customer-centric Transparent – data available to all, including commercials Collaborative – multidisciplinary teams (that often change by project) Environment - tools/tech to collaborate (cloud/SasS); hierarchy not evident (e.g. ‘department’ not used but ‘team’; open plan offices) “Growth hacker” - marketing + tech closely aligned; marketers are tech savvy… techies are marketing-savvy Empowered – ‘fail fast’, ‘ideas from anywhere’ Data-driven – test and learn. Evidence-based decisions Passion – hungry to learn more Innovative – naturally innovative. Embrace change. Curious. Agility – in processes &amp; approach
  12. Used to talk of people who are T-shaped i.e. Deep specialism in one area but a broad base of skills/knowledge. For digital now we see this being extended to the idea of Pi-shaped where both left and right brain skills are required: an ability to be creative/irrational/emotional/intuitive but also analytical, technical, data-driven.
  13. One of many new roles to emerge that is ‘pi-shaped’
  14. Likewise the growing roles around ‘product management’ that are very typical of internet companies like Google, Amazon, Facebook etc.
  15. An interesting idea to address the problems of IT/marketing alignment at the top of the organisation and create pi-shaped capabilities. This from a FTSE 250 company (finance, spreadbetting). The CIO became CMO.
  16. There are arguments against having a Chief Digital Officer (it concentrates too much in one person, it dis-enfranchises the CMO or CTO who should be leading digital etc.) but also arguments for it (necessary interim step to move large organisations forwards etc). Seems likely to grow/continue for now. But should be an interim position and needs to report to CEO to have necessary authority/mandate.
  17. This is all challenging for HR departments who are not used to the job titles, what the roles/responsibilities are, how to hire, what the career progression should be, what training is necessary, how much to pay and how this relates to existing roles etc. There is a need to train HR teams in all this.
  18. Some thoughts on what it is that attracts top digital talent to an organisation. Not necessarily ‘digital’ – these criteria attract talent in any discipline.
  19. Co-location and mixing of teams in an open environment is important and effective to make digital work. This was a learning and precursor to the even more evolved office space in Salford – see next slide.
  20. This shows the open environment again. The circular meeting spaces echo the idea of collaboration, of small “rounded” teams, with areas where people can come together in an ‘ad hoc’ way.
  21. Teams that are small enough that they can be fed with two pizzas i.e. 6-8 people.
  22. Agile has been around for quite a while for software development
  23. But this thinking and approach, which is very well suited to digital, is permeating other departments. For example marketing. There is now a manifesto for agile marketing proposed.
  24. Large companies are trying to embrace the ideas around agile and ‘lean startup’ thinking.
  25. The best digital companies realise how important speed is. fastFT is a new product from the FT around breaking news. FT Fastclick is code that FT have open-sourced which is about making clicking in a mobile web app feel as fast as clicking in a native app. A small touch but a vital one if customers aren’t to tire of using an application that is just a bit too slow to be useful.
  26. Arguably Google’s USP was never about its alogrithm but about its clean interface and the speed at which it worked. To this day it shows how fast it returns search results. The latest algo update (Hummingbird) is about speed, agility and precision as the name implies.
  27. Google Now bring you results and information before you’ve even requested them.
  28. Apple also recognise how important the speed and responsiveness of a digital experience is. The recent iOS7 update focused on this along with a cleaner, flatter, less intrusive design.
  29. Digital operates very quickly so your processes, teams and business needs to be able to react and respond at the same speed.
  30. Twitter has been described as the ‘heartbeat’ of what is happening in the world. The speed at which things break, and our shared, on Twitter is almost instantaneous so businesses need to be able to capitalise on opportunities, or mitigate problems, much faster than ever before. In this screenshot where Ed Miliband makes up the hashtag #DowngradedChancellor you can see how quickly there is a massive spike (seconds) on Twitter from nowhere for this hashtag.
  31. A metaphor for thinking about how marketing and business operations in the digital world is changing. It used to be like a stalagmite approach – by continually drip feeding stuff through, over time and in a linear way, you hope to build something and make an impact. Now it is more like being a conductor. There is a score you are working too and you have specialists in your orchestra but there is much more dynamism, more light and shade, more responsiveness, more sensing of the audience, it is choreographic and orchestrated, not so fixed and linear.
  32. This is the digital journey towards excellence but it corresponds to business excellence not just digital excellence
  33. Burberry is considered excellent at digital. And it has been doing very well as a company. Which came first – business or digital excellence? Probably the former but there does seem to be a very high correlation between companies being good at digital and those doing well overall.
  34. ... As this research from CagGemini and MIT Sloan also shows.
  35. So focusing on digital transformation and becoming excellent at ‘digital’ in the broader terms outlined in this presentation (focus on customer experience across all channels, having a digital culture) is really about business, not just digital, transformation.