How to Build a Digital Culture in Three Stages
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The document discusses how to build a digital culture through digital transformation. It recommends taking transformation in three stages: first making surface-level changes to test bigger transformation; second, transforming the audience experience within constraints; third, transforming internal operations to match the new audience experience. Examples are given of companies like Netflix that underwent successful three-stage transformations, starting with things like streaming tests before overhauling their entire business model. Barriers to transformation are also outlined.
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How to Build a Digital Culture in Three Stages
- 1. BEFORE &AFTER PRECEDENT HOWTOBUILDADIGITALCULTURE Cory Hughes HEAD OF CONSULTANCY DIGITALTRANSFORMATION @precedentcomms #precsem Jenni Williams DIRECTOR OF STRATEGY
- 3. WHAT IS DIGITAL? @precedentcomms #precsem IN-HOUSE: – Websites – Tablet&mobile – Socialprofiles – Blogs&articles EXTERNAL: – Contentsyndication – SEO&SEM – Socialmarketing – Onlinecampaigns PHYSICAL: – Digitalsignage – Digitalkiosk – Virtualguide – Virtualhost
- 6. Evolving an organisation’s ways of working in order to continue delivering its mission in the face of changing technology, competition, audience need and behaviour. @precedentcomms #precsem
- 9. @precedentcomms #precsem 26 YEARS +100 EXPERTS IN DESIGN, TECH, STRATEGY & UX 6 LOCATIONS PRECEDENT.COM
- 10. @precedentcomms #precsem DIGITAL STRATEGY WEBSITES, TABLET & MOBILE DIGITAL TRANSFORMATION PRECEDENT.COM
- 12. Generation Z don’t want what came before them.1
- 13. 47% of all jobs will disappear over the next 20 years. 2
- 14. ‘Global’ is achievable and everyone’s a jetsetter. 3
- 15. We experience life through our devices. 4
- 16. We’re about to be blindsided by climate change. 5
- 17. Local, bespoke & personalised are the new Big Business. 6
- 25. SURFACE AUDIENCE INTERNAL TACTICAL CHANGE TO TEST THE CASE FOR BIGGER TRANSFORMATION. @precedentcomms #precsem
- 26. SURFACE AUDIENCE INTERNAL TRANSFORM THE AUDIENCE EXPERIENCE WITHIN INTERNAL CONSTRAINTS. @precedentcomms #precsem
- 27. SURFACE AUDIENCE INTERNAL TRANSFORM INTERNAL OPERATIONS TO MATCH THE AUDIENCE EXPERIENCE. @precedentcomms #precsem
- 28. LEARNING FROM PROS: BEFORE &AFTER @precedentcomms #precsem 3STAGESOFTRANSFORMATION
- 29. “ To provide our customers with the most convenient access to media entertainment.” @precedentcomms #precsem
- 32. “To be the best global entertainment distribution service.” @precedentcomms #precsem
- 34. THEN TO NOW: NETFLIX • 1997 Company founded • 2007 1 billionth DVD delivered • 2014 Spent $0 on marketing DVDs vs. $US65 million per quarter on streaming • 2015 Launched in Australia and New Zealand • 2016 Spending $US5 billion on programming • 2017 Expanding to stream in 200 countries @precedentcomms #precsem
- 36. SURFACE AUDIENCE INTERNAL SUPERFICIAL CHANGE TO TEST THE CASE FOR BIGGER TRANSFORMATION. @precedentcomms #precsem
- 38. SURFACE AUDIENCE INTERNAL TRANSFORM THE AUDIENCE EXPERIENCE WITHIN EXISTING CONSTRAINTS. @lindzeiy @precedentcomms #precsem
- 41. SURFACE AUDIENCE INTERNAL TRANSFORM INTERNAL OPERATIONS TO MATCH THE AUDIENCE EXPERIENCE. @precedentcomms #precsem
- 43. @precedentcomms #precsem BUT WHAT IF YOU AREN’T NETFLIX?
- 45. 10 Best CDO Practices for Dealing with Digital Transformation 1. Buildahigh-performancedigitalteam 2. Digitalshouldbeeveryone'sjob 3. Don'tdodigitalforthesakeofdigital 4. Dofewerthingsbetter 5. Createanatmosphereofcollaboration 6. Bakedata-informedthinkingintotheculture 7. Thinkfromtheoutside-in 8. Sometimesit'sbettertobegforforgivenessthenaskpermission 9. Getexperimentalandanalytical 10. Managementneedstolivedigital Perry Hewitt, Harvard Chief Digital Officer
- 46. BARRIERS TO CHANGE • Misconceptions about digital • Departments trapped in silos • Traditional culture and mind sets • Rewards for being risk-averse • Small budgets (and getting smaller) • Wide gaps in audience knowledge @precedentcomms #precsem
- 47. “In the last 5 years, the world has moved faster outside the business than in it.” H O W W O U L D Y O U T R A N S F O R M ? @precedentcomms #precsem
- 48. “Our structure is too cumbersome, decision making too slow.” H O W W O U L D Y O U T R A N S F O R M ? @precedentcomms #precsem
- 49. “We will be faster with innovation, smarter with taking risks, bolder with moves that drive transformation.” H O W W O U L D Y O U T R A N S F O R M ? @precedentcomms #precsem
- 54. 20% MORE SPEND THAN IN-STORE
- 56. 30% MORE SPEND THAN CASHIERS
- 58. • Audiences are already digital-first • Competition from other sectors and areas • Opportunities to cost-save and grow reach • Competition for top staff talent • ‘Traditional’ services under scrutiny • Service ‘shelf life’ will only get shorter @precedentcomms #precsem REASONS TO CHANGE
- 59. DISCUSSION TIME: WHAT’S YOUR &WHATARETHEBARRIERS? @precedentcomms #precsem VISION
- 60. LEARNING FROM PROS: BEFORE &AFTER @precedentcomms #precsem 3STAGESOFTRANSFORMATION
- 61. SURFACE AUDIENCE INTERNAL TACTICAL CHANGE TO TEST THE CASE FOR BIGGER TRANSFORMATION. @precedentcomms #precsem
- 63. BEFORE
- 64. BEFORE AFTER
- 66. SHARES UP FROM $8 IN 2009 TO $89 NOW
- 68. BEFORE
- 71. STEP 1: TRANSFORM THE SURFACE H O W T O B U I L D A D I G I T A L C U LT U R E ✱ Tackle a specific problem or perception change online, with measurements in place. ✱ Create digital versions of existing offerings, incentivising their adoption. ✱ Track everything and share victories widely and loudly within the organisation. @precedentcomms #precsem
- 72. SURFACE AUDIENCE INTERNAL TRANSFORM THE AUDIENCE EXPERIENCE WITHIN EXISTING CONSTRAINTS. @precedentcomms #precsem
- 74. BEFORE
- 76. 70% LESS INFORMATION (4 PAGES DOWN FROM 14)
- 79. 46% OF PEOPLE STOPPED USING SUNBEDS
- 81. BEFORE
- 83. 277% INCREASE IN ONLINE DONATIONS
- 84. 40% INCREASE IN F&E DONATIONS = £1M
- 85. 74% INCREASE IN EVENT REGISTRATIONS
- 86. STEP 2: TRANSFORM FOR AUDIENCES ✱ Collaborate outside comfort zones to enhance experiences for priority audiences. ✱ Make on-going audience feedback and engagement part of every new initiative. ✱ Track and escalate barriers to create plans and business cases for overcoming them. @precedentcomms #precsem H O W T O B U I L D A D I G I T A L C U LT U R E
- 87. SURFACE AUDIENCE INTERNAL TRANSFORM INTERNAL OPERATIONS TO MATCH THE AUDIENCE EXPERIENCE. @precedentcomms #precsem
- 89. BEFORE
- 90. BEFORE AFTER
- 95. BEFORE
- 101. STEP 3: TRANSFORM THE INTERNAL ✱ Get the right investment and authority, set expectations and update plans throughout. ✱ Tackle business critical processes and systems first with clear benchmarks and targets. ✱ Identify and implement ‘quick wins’ throughout using existing resources and skillsets. @precedentcomms #precsem H O W T O B U I L D A D I G I T A L C U LT U R E
- 102. BUT WHAT DOES IT ALL MEAN? @precedentcomms #precsem
- 109. QUESTIONS & THANK YOU. @precedentcomms #precsem
Editor's Notes
- Hello & Welcome – Intros DT – bandied about with exuberance What does it really mean? Look at orgs that have done it. Practical tips for why and how you should do it
- Start with the basics…
- Digital touches every part of a business Even ‘phygital’ Cross cuts internal departments and silos Is a menu of options you can use to improve your business
- Used well – digital can TRANSOFRM your business – or so we’re told Panacea for all ills – e-bay millionaires to FB and Google If only you can tap into it…. DT has gone top of agenda
- But if you are not a FB or Google – what does DT mean?
- Key to this is your mission.. That’s the secret Not in isolation. Use differently depending on context of what you want to achieve Digital and Business strategy are inextricably linked How can digital help you better deliver to your business strategy?
- So in the example of Precedent… This is WHY we exist
- In 1989 HOW delivered it = CD Roms in our studio in Shoreditch
- Fast forward 26 years HOW has changed dramatically Grown – multi disciplines
- Full service that deliver to clients changing needs. Think about your mission or vision – will be relevant throughout the morning…
- Digital natives Far more interested in environment and being change makers and not totally driven by matieralism Want to see the value of their input
- Self drive cars Digtial is impacting – things are getting more automated As automation ncreases the need for particular roles is diminshed
- World is getting smaller Cant just think about your audience in location or physical building Achieving things on a global scale – being world class
- Lifes special moments are often seen through a viewfinder Even something as intimate as a wedding is obscured by a smartphone
- Technilogy adapting to climate change – narutal disaster – help people know you’re safe Social networks
- Instead of buy the world a coke its all about how it related to you as an individual
- Knowing all of this – knowing your mission, understanding trends etc.. If you could start from scratch
- Ithey are made up of millennials
- So: critical to DT is establishing a digital culture Wont achieve without it Look at some e.g.s not easy for everyone DT is a journey – diff for everyone (SME v start up v university)
- 3 key stages – things you can do at every stage to harness potential
- All about the presentation layer Trial and test small changes to test water Build business case
- Clung rigidly to retail model In face of changing entertainment industry Transformed by the internet Failed to listen to changing prefs, to value CX, to deliver to their brand promise Result? Total annihilation by Netflix
- Total antithesis to Blockbuster – Netflix constantly change and adapt Mail order dvds Recognised advent of streaming media online Customers preferred online Created online subscription model
- Hugely successful - But didn’t stop there Listened and learned to create new content – exclusive experience But they didn’t stop there Recognised disrupted experience by waiting Sit on the sofa with a bag of doritos watching 24 Binge watching Released series in one go
- Result? 150 million new subscribers Cut titles and raised subscription fees Didn’t lose customers Now THAT’s what you call valuing the customer experience and reaping the rewards
- The second conversation took place in 2002, a few months after our IPO. Laura, our bookkeeper, was bright, hardworking, and creative. She’d been very important to our early growth, having devised a system for accurately tracking movie rentals so that we could pay the correct royalties. But now, as a public company, we needed CPAs and other fully credentialed, deeply experienced accounting professionals—and Laura had only an associate’s degree from a community college. Despite her work ethic, her track record, and the fact that we all really liked her, her skills were no longer adequate. Some of us talked about jury-rigging a new role for her, but we decided that wouldn’t be right. We faced the latter challenge at Netflix in a fairly dramatic way as we began to shift from DVDs by mail to a streaming service. We had to store massive volumes of files in the cloud and figure out how huge numbers of people could reliably access them. (By some estimates, up to a third of peak residential internet traffic in the U.S. comes from customers streaming Netflix movies.) So we needed to find people deeply experienced with cloud services who worked for companies that operate on a giant scale—companies like Amazon, eBay, Google, and Facebook, which aren’t the easiest places to hire someone away from. Our compensation philosophy helped a lot. Most of its principles stem from ideals described earlier: Be honest, and treat people like adults. For instance, during my tenure Netflix didn’t pay performance bonuses, because we believed that they’re unnecessary if you hire the right people. If your employees are fully formed adults who put the company first, an annual bonus won’t make them work harder or smarter. We also believed in market-based pay and would tell employees that it was smart to interview with competitors when they had the chance, in order to get a good sense of the market rate for their talent. Many HR people dislike it when employees talk to recruiters, but I always told employees to take the call, ask how much, and send me the number—it’s valuable information. Even if you’ve hired people who want to perform well, you need to clearly communicate how the company makes money and what behaviors will drive its success. At Netflix, for instance, employees used to focus too heavily on subscriber growth, without much awareness that our expenses often ran ahead of it: We were spending huge amounts buying DVDs, setting up distribution centers, and ordering original programming, all before we’d collected a cent from our new subscribers. Our employees needed to learn that even though revenue was growing, managing expenses really mattered.
- MC DONALDS chief CEO
- 2008 where sales declined, stores were closing and the stock price was under 10$
- 2008 where sales declined, stores were closing and the stock price was under 10$
- No better e.g. than Cancer Research’s R U V UGLY? campaign reduce sunbed use in 16-18 year-old females 2 reasons for success 1 – tapped into mindset. No health message. Vanity – look old. Celebrities 2 – Took campaign to audiences - UV scanning cameras in shopping centres – free consultations. In the weeks following the campaign, 46% of respondents reported that they had stopped using sunbeds, or were using them less. As a result of its success, the Department of Health decided to continue the campaign. It was supported by a digital photo booth which took UV as well as normal photos, showing sun damage. It’s had great results, and since been commissioned by UK governments. With an appearance obsessed audience, ‘prone to switching off to health messaging’ they focused on a pure-play vanity message – using a sunbed would make them look old before their time. They used text speak, and came up with R UV UGLY? - leveraging the 'UV' in sunbeds and asking a question which could draw in engagement. They used UV skin scanning cameras at the heart of the campaign, it graphically showed what lurked beneath the skin. This gave the audience an opportunity to see the damage already done - and therefore the very real risk of melanoma. Cancer research knew that their audience, obsessed with appearance, would find it irresistible, which a focus group confirmed. Cancer Research intentionally targeted certain celebrities to support the campaign. These included Binky Felstead (Made in Chelsea), Maria Fowler and Sam & Billie Faiers (TOWIE), Gemma Merna (Hollyoaks), Kym Marsh (Coronation Street) and singer Paloma Faith. Their involvement was promoted through interview placements, placed skin assessments and by encouraging them to tweet to drive fans to the Facebook voucher page. To make the campaign digital, they took it to where the audience hung out, creating a bespoke Facebook tab as a campaign hub. It contained information, as well as video tanning tips featuring Made in Chelsea's Binky.
- 46% of respondents reported that they had stopped using sunbeds, or were using them less. Because they went the extra mile – potential savings in preventative measures Department of Health decided to continue the campaign.
- To win the fight against heart diseaseCharity Revamp site New strategy to focus on funding medical research “to win the fight against heart disease” Old site was all things to all men – reflected silo’s Confusing to navigate or complete a task Shifted to focus to the supporter And 3 core areas of revenue generation – donations, fundraising event and furniture and electrical Easier to find and complete these tasks - stripped down donation form - why are you donating today? - robust tech platform to manage events - teams can sign up, co-ordinate and promote efforts Results? 277% increase in donations Conversion rate of 29% up from 8 30% increase in furniture and electrical collection requests 1,800 new event registrations Phenomenal
- 277% increase in donations Conversion rate of 29% up from 8
- . Furniture & Electrical collections requests were again over 20,000 for the month of March up 40% on March 2014 and representing roughly £1 million to the BHF. . Event registrations were up 74% this month on the same month last year. . Heart Matters sign-ups were up 25%.
- . Furniture & Electrical collections requests were again over 20,000 for the month of March up 40% on March 2014 and representing roughly £1 million to the BHF. . Event registrations were up 74% this month on the same month last year. . Heart Matters sign-ups were up 25%.
- 700 customer surveys coming in a week. Waitrose’s sales rose 2.9%, a relatively strong performance in a market which expanded by just 1%. grocery prices overall fell by 2%. April last year, the retailer surpassed its £1bn online sales target over a rolling 52-week period, a year earlier than planned. Its click-and-collect business is going from strength to strength with more than a third of all online orders collected in John Lewis or Waitrose stores. Mobile now accounts for more than 40% of traffic to Johnlewis.com and traffic is up more than 115% year on year.
- 700 customer surveys coming in a week. Waitrose’s sales rose 2.9%, a relatively strong performance in a market which expanded by just 1%. grocery prices overall fell by 2%. April last year, the retailer surpassed its £1bn online sales target over a rolling 52-week period, a year earlier than planned. Its click-and-collect business is going from strength to strength with more than a third of all online orders collected in John Lewis or Waitrose stores. Mobile now accounts for more than 40% of traffic to Johnlewis.com and traffic is up more than 115% year on year.
- 700 customer surveys coming in a week.