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Digital Transformation - Melbourne
The document discusses the need for organizations to undergo digital transformation in order to remain relevant. It argues that digital strategies can no longer be marketing-centric and must have business-wide impact. Organizations that do not fundamentally transform are becoming irrelevant. True digital transformation requires fundamental changes that permeate the entire organization and shake up existing structures. The document outlines several themes around digital transformation, including harnessing customer service and crowdsourcing, adopting new revenue models, empowering employees with mobile technologies, and leveraging the internet of things and big data. It emphasizes that digital transformation is a journey that requires identifying measurable business value and rallying organizational support through compelling narratives.
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Digital Transformation - Melbourne
- 1. GEORGE EVANS &ROSE RILEY Daring to be Digital embedding digital in 21st century organisations
- 2. The Website Web strategy Digital strategy Digital transformation WE ARE EVOLVINGFROM A MARKETING CENTRIC TO BUSINESS WIDE VIEW OF THE WEB Marketing centric Business-wide impact
- 3. THOSE ORGANISATIONS THATDO NOT FUNDAMENTALLY TRANSFORM ARE RAPIDLY BECOMING IRRELEVANT
- 4. IF YOU THINKBEING 'IN E-BUSINESS' MEANS SUTURING ON AN E-COMMERCE APPENDAGE TO YOUR BODY CORPORATE, THEN THINK AGAIN. WE PROMISE YOU THAT WON'T WORK... YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE AN 8.0 EARTHQUAKE, YOU MUST BE PREPARED FOR THE REARRANGEMENT THAT WILL INEVITABLY OCCUR. Keyur Patel & Mary Mccarthy | Digital Transformation, 2000 DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE
- 5. A CHANGE THATIS NO LONGER A CHOICE BUT AN IMPERATIVE
- 6. Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% ANDTHERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
- 7. Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% THOSEWHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
- 8. BUT DON’T TAKEIT FROM US… What is the biggest threat that digital presents to your business?
- 9. THE GOOD NEWSIS THAT THERE IS LIGHT AT THE END OF THE TUNNEL, WE JUST NEED TO BE IN THAT FIRST 15% OF INNOVATORS AND ADOPTERS!
- 10. AND BEING WITHUS HERE TODAY… IS A GOOD START TO YOUR JOURNEY
- 11. DIGITAL TRANSFORMATION REFERSTO THE CHANGES ASSOCIATED WITH THE APPLICATION OF DIGITAL TECHNOLOGY IN ALL ASPECTS OF HUMAN SOCIETY. DIGITAL TRANSFORMATION MAY BE THOUGHT AS THE THIRD STAGE OF EMBRACING DIGITAL TECHNOLOGIES: DIGITAL COMPETENCE -> DIGITAL LITERACY -> DIGITAL TRANSFORMATION. THE LATTER STAGE MEANS THAT DIGITAL USAGES INHERENTLY ENABLE NEW TYPES OF INNOVATION AND CREATIVITY IN A PARTICULAR DOMAIN, RATHER THAN SIMPLY ENHANCE AND SUPPORT THE TRADITIONAL Wikipedia | ‘Digital Transformation’ TODAY WE WILL EXPLORE WHAT IT MEANS TO ACHIEVE DIGITAL TRANSFORMATION
- 12. WE’RE GOING TOEXPLORE 5 KEY THEMES 1. Customer service, the missing link 2. Harnessing the wisdom of crowds 3. New money models 4. The corporate tricorder 5. The Internet of things, and big data
- 13. WE’LL ALSO HELPYOU FIND YOUR INNER HERO…
- 14. Customer service, themissing link
- 15. MARKETING CAN NOLONGER SIMPLY FOCUS ON AIDA IT MUST FOCUS ON AIDA AND ITS REFLECTION The AIDA reflection | Mark Sherwin, Precedent 2013 AWARENESS INTEREST DESIRE ADVOCACY INVOLVEMENT DELIVERY ACTION
- 16. OPTICAL EXPRESS -NOT JUST AN AGGRESSIVE ACQUISITION MODEL
- 17. OPTICAL EXPRESS -DELIVERY
- 18. OPTICAL EXPRESS -INVOLVEMENT
- 19. OPTICAL EXPRESS -ADVOCACY
- 20. OPTICAL EXPRESS -NOT JUST AN AGGRESSIVE ACQUISITION MODEL
- 21. LOVEFILM – FAILINGAT THE FINAL HURDLE
- 22. TECHNOLOGY ENABLED CUSTOMERSERVICES
- 23. TECHNOLOGY ENABLED CUSTOMERSERVICES
- 24. TECHNOLOGY ENABLED CUSTOMERSERVICES
- 25.
- 26. Harnessing the wisdomof crowds
- 27. USES OF CROWDSOURCING Idea Generation Research & Development OperationsFinancing ?
- 28. RESEARCH AND DEVELOPMENT- GOLDCORP
- 29.
- 30. FINANCING – NICHEGIVING
- 31. x FINANCING – NICHEGIVING
- 32. OPERATIONAL RUNNING -GIFF GAFF
- 33. TURNING ADVOCATES INTOSTAKEHOLDERS Stakeholders Idea generation Research and Development Financing Operations
- 34. START WITH ALITTLE NAVEL GAZING
- 35. OVER TO YOU Howcould you combine online customer service and crowd sourcing strategies to better serve your customers?
- 36.
- 37. AS CUSTOMERS MOVETO A SUBSCRIPTION ECONOMY BUSINESSES MUST MOVE FROM A PRODUCT ORIENTATED TO CUSTOMER ORIENTATED VIEW
- 38. TRADITIONAL ORGANISATIONS WILLBE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS
- 39. TRADITIONAL ORGANISATIONS WILLBE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS
- 40. CUSTOMERS WANT INCREASINGLYGRANULAR PURCHASING OPTIONS MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN
- 41. THESE MODELS ARESTARTING TO PERFUSE INTO MORE NICHE APPLICATIONS AND SECTORS
- 42. OVER TO YOU… Howcould more flexible and granular revenue models create new value for your business?
- 43.
- 44. CONVERGENCE PUTS INCREDIBLEPOWER IN THE PALM OF OUR HAND Wired UK | 20 Years of Wired | June 2013
- 45. EVERY EMPLOYEE WITH MORECOMPUTING POWER AT THEIR FINGER TIPS THAN THE SPACE SHUTTLE. ANYTIME…ANYWHERE
- 46. DIGITAL CAN UNCHAINYOUR EMPLOYEES FROM THEIR DESKS OFFERING INNOVATIVE NEW PRODUCTIVITY SOLUTIONS
- 47. SMART PHONES CANNOW REPLACE MANY ANALOGUE PROCESSES AND DEDIATED DEVICES
- 48. THEY ALSO OFFERTHE OPPORTUNITY TO PROVIDE NEW VIEWS ON TO EXISTING DATA USING CONTEXT TO STREAMLINE EXPERIENCES
- 49. AS DIGITAL WALLETSBECOME MORE MAINSTREAM THE MOBILE OFFERS HUGE EFFICIENCY AND PRODUCTIVITY BENEFITS
- 50. INTEGRATING DIGTAL WITHTHE PHYSICAL WORLD (PHYGITAL) CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS
- 51. INTEGRATING DIGTAL WITHTHE PHYSICAL WORLD (PHYGITAL) CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS
- 52. WEARABLE TECHNOLOGY INTEGRATESCONTEXTUAL, MOBILE EXPERIENCES EVEN FURTHER INTO OUR EVERYDAY LIVES
- 53. OVER TO YOU… Howcould a Smart Phone enabled workforce deliver new productivity?
- 54. The internet ofthings, and big data
- 55. ‘THE INTERNET OFTHINGS ISN’T WI-FI FRIDGES AND DEVICES WITH BOLT ON CONNECTIVITY: IT’S TINY, CHEAP SENSORS THAT WILL BRING EVERYDAY OBJECTS TO THE NETWORK – IN THEIR BILLIONS’ ‘BY STRAPPING A RECEIVING COMPUTER TO THE SIDE OF IT, THE INTERNET FRIDGE BRINGS THE INTERNET TO THE DEVICE. BY CONNECTING TRANSMITTING SENSORS TO THE NETWORK, THE INTERNET OF THINGS BRINGS THE DEVICE TO THE INTERNET.’ BEN HAMMERSLEY | WIRED, 2013 NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…
- 56. DIGITAL CAPABILITY ISNO LONGER RESTRICTED TO HIGH END COMMUNICATION DEVICES
- 57. IT USED TOBE THAT EVERY CHILD DREAMT OF HAVING THEIR OWN ROBOT
- 58. Beecham Research`s ConnectedDevices Sector Map | http://beechamresearch.com/article.aspx?id=4 CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD ACROSS A DIVERSE RANGE OF ‘THINGS’
- 59. Beecham Research`s ConnectedDevices Sector Map | http://beechamresearch.com/article.aspx?id=4 CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD ACROSS A DIVERSE RANGE OF ‘THINGS’
- 60. THIS CREATES HUGEOPPORTUNNITY FOR NEW MULTI-INPUT, MULTI-OUTPUT DIGITAL INTERACTIONS
- 61. THIS CREATES HUGEOPPORTUNITY FOR NEW MULTI-INPUT, MULTI-OUTPUT DIGITAL INTERACTIONS Use case from The New Digital Age | Schmidt and Cohen 2013
- 62. THIS CREATES HUGEOPPORTUNNITY FOR NEW MULTI-INPUT, MULTI-OUTPUT DIGITAL INTERACTIONS Use case from The New Digital Age | Schmidt and Cohen 2013
- 64. THIS CAN LEADTO INNOVATIVE NEW APPROACHES TO CUSTOMER INSIGHT, AND PRODUCT AND SERVICE DESIGN Mobile phone data redraws bus routes in Africa, BBC | http://www.bbc.co.uk/news/technology-22357748
- 65. AS THESE DEVICESSTORE DATA IN THE CLOUD WE WILL HAVE ACCESS TO MORE DATA ABOUT OUR WORLD THAN EVER BEFORE
- 66. OVER TO YOU… Howcould the connectivity of devices, or the big data derived from these devices create new business value for you?
- 67. Gotcha, but howdo I make that 15%?
- 68. The Website Web strategy Digital strategy Digital transformation FIRST WE MUSTARTICULATE WHAT IT MEANS TO EMBRACE DIGITAL TRANSFORMATION Marketing centric Business-wide impact
- 69. DIGITAL MUST MOVEFROM A MARKETING FUNCTION TO A BUSINESS-WIDE IMPERATIVE Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013
- 70. WHILST SOME MAYAPPOINT A CHIEF DIGITAL OFFICER, MOST MUST CHANGE FROM WITHIN. A DIGITAL HERO IS REQUIRED
- 71. MOST EXECUTIVES DON’TUSE SOCIAL NETWORKS OR SMART PHONES. MANY DON’T EVEN READ THEIR OWN EMAIL. SO TRYING TO CONVINCE DECISION MAKERS THAT THIS IS A WAR FOUGHT ON THE BATTLEGROUND OF TECHNOLOGY IS IN AND OF ITSELF FIGHTING A LOSING BATTLE. BRIAN SOLIS | WHAT’S THE FUTURE OF BUSINESS, 2013 WHILST SENIOR MANAGEMENT MAY SUPPORT CHANGE THEY MAY TO BE THE ONES TO DRIVE THE CHANGE.
- 72. DIGITAL TRANSFORMATION MUSTINTERLINK WITH ALL PARTS OF THE BUSINESS Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
- 73. AND TO GATHERSUPPORT IT MUST DELIVER TO ALL PARTS OF THE BUSINESS Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
- 74. GENERATE IDEAS ANDLOOK FOR THOSE IDEAS THAT IMPACT ACROSS ORGANISATIONAL GOALS
- 75. AVOID STARTING WITHA HUGE TECHNOLOGY SOLUTION INSTEAD LOOK FOR SMALL CHANGES THAT CAN DELIVER BIG IMPACTS
- 76. WE NEED TODELIVER RECOGNISABLE AND MEASUREABLE BUSINESS VALUE EVERY THREE TO FIVE MONTHS. THAT IS IMPERITIVE, OTHERWISE WE LOSE CREDIBILITY AND TRUST. Claes Mansson | Director, ICT Strategic Investment Programme , Monash University, 2013 UNDERSTAND HOW YOU WILL MEASURE BUSINESS VALUE ESTABLISH BASELINES, CONSTANTLY MEASURE, OPTIMISE AND EVOLVE
- 77. NARRATING THE STORIESIS CRUCIAL TO GATHERING SUPPORT FOR BIGGER CHANGE Creating engaging online experiences for ACI ‘s customers, James Downes, UX Director, Precedent 2012
- 78. SO LET’S SAYYOU ARE OUR HERO… WHAT’S THE JOURNEY GOING TO FEEL LIKE?
- 79. A HERO’S JOURNEY CHANGINGTHE WAY BUSINESSES CREATE EXPERIENCES INCEPTION You see the need for change. You feel as if more can be done. You’re not sure its your responsibility and the opportunity is bigger than you envisioned. You question your calling. Perhaps you refuse it. Then you meet others who will empower you…stand by you through change. What’s the Future of Business | Brian Solis, 2013
- 80. A HERO’S JOURNEY CHANGINGTHE WAY BUSINESSES CREATE EXPERIENCES TRIBULATION Change is met with hardship. It’s unavoidable. You start to feel the discomfort from leaving your comfort zone. Obstacles will arise; budget constraints, politics, scepticism, tunnel vision, blatant ignorance. Stay true stay focused. Your customers and employees are anxious for you to succeed. What’s the Future of Business | Brian Solis, 2013
- 81. A HERO’S JOURNEY CHANGINGTHE WAY BUSINESSES CREATE EXPERIENCES TRANSFORMATION Buzz and excitement permeates the halls of your business. Employees hear about what you are trying to do, they enquire how to be part of it or how soon they’ll see the fruits of your labour. To hold consensus takes frameworks and processes. This sets the stage for how people, teams, philosophies, and technology will support the transformation. It’s always darkest before dawn. There will be pushback, more and more challenges. Keep the team strong, you’ve come too far for that. What’s the Future of Business | Brian Solis, 2013
- 82. A HERO’S JOURNEY CHANGINGTHE WAY BUSINESSES CREATE EXPERIENCES REALISATION To call this the last stage is misleading. Transformation is continual, it becomes part of your business model. Here you learn and adapt accordingly. You lift your head and notice that the people inside and outside of the organisation are noticing change. Change is now constant. Take this moment to revel in your journey. Since you are the hero in this story, your journey is just beginning. What’s the Future of Business | Brian Solis, 2013
- 83. SO OVER TOYOU ONE LAST TIME… How will you start your Hero’s Journey?
- 84. THE INTERNET ISAMONG THE FEW THINGS HUMANS HAVE BUILT THAT THEY DON’T TRULY UNDERSTAND. IT IS THE LARGEST EXPERIMENT INVOLVING ANARCHY IN HISTORY. AS GLOBAL CONNECTIVITY CONTINUES ITS UNPRECEDENTED ADVANCE. MANY OLD INSTITUTIONS AND HIERACHIES WILL HAVE TO ADAPT OR RISK BECOMING OBSOLETE. THE STUGGLES WE SEE TODAY IN MANY BUSINESSES, ARE EXAMPLES OF THE DRAMATIC SHIFT FOR SOCIETY THAT LIES AHEAD. AND WE’VE BARELY LEFT THE STARTING BLOCKS. Eric Schmidt & Jared Cohen | The New Digital Age, 2013
- 85. WE SHOULD ALLBE CONCERNED ABOUT THE FUTURE BECAUSE WE WILL ALL HAVE TO SPEND THE REST OF OUR LIVES THERE. Charles F. Kettering, American inventor and businessman
Editor's Notes
- #2 Housekeeping.We have a presentation today to run through with you, but we want it to be interactive so during several points we’ll stop and ask you some questions to spark some discussions. Whilst we’re the digital agency, it’s through proper partnership with our clients are we able to drive the digital transformation agenda through, as we learn from you too.So, we’ve been talking about using digital for business benefit rather than just a marketing tool for a long time, andnow as a concept it is really taking off, which is exciting, but the risk of not elevating this to board level decisions creates potentially dangerous operating models for those who don’t do it quickly enough.
- #3 Digital used to mean a desktop computer and a website for marketing purposes, But now, to truly take advantage of digital is to ingrain it in your organisations DNA, to have business-wide impact.In order to be transformational, an organisation’s digital agenda must be owned in the boardroom as a fundamental part of the corporate vision and strategy.If transformation is successful in delivering an exemplary user experience, or a unique product or service, then marketers can begin to spread the wordto target audiences using their own complementary marketing strategy, integrated with the broader vision.
- #4 The risks?Not adopting a business-centric view of the web is obvious. I put together a graveyard slide of companies in Australia and globally who have been too slow to react to using digital, and have been overtaken by the competition.Obviously these are retails organisations – often the first sector to get hit by changing business models and digital has disrupted – we’re seeing it across the education sectorDoes anyone have any examples from their own sectors that they can think of?
- #5 However, the transformational nature of digital isn’t anything new – Mary McCarthy for one has been talking about it for well over a decade, and this quote here sums it up perfectlyIF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON ANE-COMMERCE APPENDAGE TO YOUR BODY CORPORATE,THEN THINK AGAIN. WE PROMISE YOU THAT WON'T WORK...YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE AN 8.0 EARTHQUAKE, YOU MUST BE PREPARED FOR THE REARRANGEMENT THAT WILL INEVITABLY OCCUR.
- #6 However, it is not now a case of ‘should my organisation head down this road’ – it’s an imperative
- #7 It used to be a perfectly viable strategy to let others innovate and take on the risks associated, and for your organisation to still comfortably in the late majority, and even the laggards could have a viable business.However, in the digital age we would argue that this isn’t a viable strategy anymore, and that adoption looks more like this…
- #8 And anyone who now thinks they can still hang around in the late majority and laggards section will end up on that graveyard slide.
- #9 Throwing it back over to you guys here, just shout out if there’s any threat that digital presents to your business?
- #10 However, it’s not all doom and gloom, there is light at the end of the tunnel, we just need to be in that first 15% of innovators and adopters.
- #11 Good news is…
- #12 So today we’re going to explore what it means to achieve digital transformation.Wikipedia define it as the third stage of embracing digital technologiesDigital competenceDigital literacyDigital transformationIn a nutshell, digital transformation means digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional
- #13 Does anyone know what the tricorder is? If you do, please save it until later on in the session
- #15 First stumbling block in moving from digital strategy to digital transformation
- #16 The traditional marketing model, funnelling people through to action, is no longer sufficient. Delivery: How is the product or service being delivered to the individual and how can online improve thisInvolvement: Are you actively seeking to involve the customer through post purchase/action engagement such as asking for ratings/reviews, or providing value added servicesAdvocacy: How can you turn satisfied customers into online advocates for your brand
- #17 Unexpected example of the reflection.Aggressive sales – low expectation of high quality customer service
- #18 Good email commspre and post purchase. Value added through providing relevant, tailored information
- #19 Post purchase involvement:‘My’ optical express – feels personal. Encouraging involvement. Rewarding advocacy.
- #20 Tailored, intuitive platform.Ease of use with multiple routes to make the referral. Clear, substantial reward. Request for review – linked but not mandatory – encourages feeling of mutual give and take
- #21 Excellent online advocacy used on marketing site – volume of positive reviews enables a loop with advocacy feeding back into awareness
- #22 Its so easy to get this wrong…Love film and other internet successes have been instrumental in the downfall of less nimble business like blockbuster, Seamless experience throughout, easy management of system through an intuitive interface, flexible subscriptions – even the option to have a payment holiday at the press of a button.But the fail comes when they make it hard to leave – with no option for online cancellation of an accountForcing you to phone an aggressive retention teamHard to leave = less inclined to rejoin.If a company allows online joining, it has to allow online cancellation.
- #23 Yorkshire building society + Synthetix to provide valuable technology enabled customer serviceReplaced search with instant entry into smart FAQs
- #24 Synthetix work with their clients to create FAQ’s which are auto populated when entering a search term
- #25 Wherever an answer isn’t available, it records and feeds this back, allowing continual improvementFurther than that, to enhance the customer journey it connects you to a real person who knows what you are searching for and what info you have already seen, so you don’t have to start from scratch again.This is resulting in stats like20% reduction in calls to call centres40% reduction in email enquiryThis frees up operational budget – meaning this doesn’t and shouldn’t be paid for by marketing – its real digital transformation.
- #26 IBM super computer WatsonFamouslydefeated 2 jeopardy champions live on TV in 2011 - demonstrating novel capabilities in understanding natural languageNow focusing on customer service – giving it commercial purposeIn finance 96% customers think banks don’t understand customer experienceThough use of natural language processing, hypothesis generation and evaluation and evidence based learning and of course the data an institution holds on itself and its customersWatson will provide the next generation of online customer service agent delivering fast, evidence based responses. A natural conversation with an artificial helper – responding uniquely to each question. Being rolled out by ANZ bank.We can’t all afford a super computer, but what happens on a super computer one day is commonplace the next. And back in 2011 when Watson won jeopardy, there was one physical Watson, whereas now it is being replicated for each use case across the cloud.
- #27 Moving on a step from Customer Service – What can the public do for you?
- #28 This is nothing new
- #29 GoldCorp had owned the rights to the mine at red lake ontario for over 50 yearsCouldn’t find the goldMade the radical decision to crowd source by making their data publicGave out 400 megabytes of data and a $575 thousand prize fundExpected responses from elsewhere in the industry – got them from unexpected sources such as mathematicians, military offices, even new graduatesContestants identified 110 sites for potential targetsOf which 50% were new to GoldcorpOf those 80% yielded substantial quantities of goldTurning Goldcorp from a $100 million to a $9 billion company.
- #30 whether it’s the latest tech start-up, or a group of superfans wanting to put the tardis in space, tools like kickstarter allow crowd sourced funding for anything and everything.
- #32 whether it’s the latest tech start-up, or a group of superfans wanting to put the tardis in space, tools like kickstarter allow crowd sourced funding for anything and everything.
- #33 Taking crowd sourcing even furtherCompanies like Mechanical Turk and Giff GaffCrowd sourcing of the operational running of their businessRun by membersGain rewards by answering customer service questions, recruiting new customers, implementing marketing etc
- #34 Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
- #35 Crowd sourcing – doesn’t hurt to start at homeRedesigning intranets from unused tomes to tools for social business – that’s probably a whole seminar for itself…Imagine if you could harness the knowledge, experience and ideas of your employees to help solve the challenges you and your clients face
- #36 But for now…5 mins chat: intro you company and think about ideas as a groupShare ideas with group
- #37 So, new money models.people are getting used to online commerce and one of the key outputs of this is the increased level of granularity, and flexibility of payment options – this is what they now expect.
- #38 So we use Act as our CRM in UK. This is based on a product lifecycle model which means that typically the vendor invests heavily in a new version, they sell this hard and then can sit on their laurels. Moving to a product like Salesforce, which we use over here in Australia, uses a subscription model. With a subscription model, the customer needs to be constantly delighted as it becomes much more frictionless to move and they haven’t made massive up front financial commitments, and as a result this is forcing organisations to shift from product orientation to customer orientation. This is becoming the users accepted mental model – purchasing services rather than products and expecting constant improvement and support.
- #39 The CIM should have been the organisation delivering digital leadership in UK. Our colleague Mark Sherwin was running talks on what digital should mean for businesses as early as 1998 for CIM. However they had a walled garden approach. Their site told people about all the wonderful resources they had but these were only available to members at a premium membership price. E-consultancy came from no where – started less than a decade ago as a free blog, they started offering reports and as the value of these was recognised starting they started to adapt their business model.For only a small amount more than a single report you could become a member.This subscription model, with a permeable pay wall and the ability for customers to slowly build loyalty has resulted in a powerhouse that has trumped CIM in the digital arena – so much so that you can now do a degree with e-consultancy – run by Manchester Met Uni the brand power of e-consultancy means customers would rather purchase as part of e-consultancy than they would from the traditional educational institution
- #40 Another example here is for the British Dental Association.We recently redesigned membership renewal site for them. Now the BDA have moved from their old model where which dentistry school you went to and how many years of practice determined premium by which you had to pay. From the user experience work that was done to understand the audience types better and identify pain points in the process, understanding the customer through this digital process has meant that the BDA has redesigned its membership model to 3 levels of flexible options starting with an online only membership offer, rising to something more similar to original membership – then a premium which charges more for the high value services, allowing users to change annually.
- #41 A good example of granular and flexible payment models is something I’m sure most of you are familiar with – buying music.A decade ago the choice was album or single. Now users can try before they buy, download whole albums, cherry pick tracks, or indeed subscribe to a service like Spotify or Napster to get single price access to all music. These expectations are starting to form customer expectations and they will demand similar in all aspects of their dealings with organisations.
- #42 Rose talked about Kickstarter earlier, and it’s not just making money that’s granular, it’s sourcing funding as well.We’re working with a similar firm called Sponsorcraft with the University of Southampton – their twist is crowdfunding for the education sector.It can raise funding for everything from a research project, to new facilities, or a student show. Much more engaging and relevant than previous funding approaches asking users to basically stick $30 into a $10 million project fund.
- #45 Lovely illustration showing the evolution of hand held technologiesWith all these capabilities now existing in the smartphone
- #46 This is the tricorder. Startrek. Communications. Health diagnosis and healing. Transportation. The iphone does all of this with advanced comms, and apps for anything and everything inc health and lifestyle, and of course hailing a taxi.Most firms now have a smartphne enabled workforce – think of the opportunities this could bring.
- #47 In our London office we are running out of desks. There is now an hot desking app. Tell it when you are in, and who you would like to sit with. It does the rest.
- #48 There is a huge range of opportunity for a mobile enabled workforce. In the UK traffic wardens are taking mobile payments – good for the wardens, bad for the drivers
- #49 Environment agency, data being pulled in to show previous flooding damage areas so hotspots can be identified
- #50 Lemon card connects with accounting software to automatically manage expenses
- #51 And there are a wide range of applications for this sort of technology. In the UK busy city centre pubs are solving the Friday rush for the bar by bringing the bar to the tables.
- #52 Tesco, a major UK supermarket, recognised the value of mobile in bringing the product to the consumer in South Korea.
- #53 And wearable technology has the capability to transform lives
- #54 You can gain competitive advantage through this understanding in any sector
- #55 Everything we’ve covered so far should be on the immediate agenda of any organisation not wanting to be left behind in the digital ageBut now lets thing about some more aspirational issues, something for the roadmap perhaps
- #56 There was an early misconception that the internet of things was a device with an integrated web interface
- #57 So, as I mentioned earlier, digital used to = a desktop computerNow, the smallest wireless receiver in the world is the size of just a match-headThe internet of things is really about the emergence of simple devices like raspberry pi, which means digital = everywhere, everythingAnd it’s the ability to use and manipulate the internet of things is in the hands of the everyman
- #58 It used to be that every child wanted their own robotNow every child can make their own robotPlay video to batteryFunding for the brick pi, untethers it from the mains, and uses legotechnixs to create a robot
- #59 Digital is now part of everything, and everything can have the ability to collect, and share dataHighly suggest looking at the model from this research that Beecham have recently come out with, which unpacks use cases in all sectorsInputs and outputs from all industry sectors, from construction to healthcare to securityNot going to go through this as it would take a while, so…
- #60 Lets consider a familiar sector – consumer and home goods.
- #61 No one enjoys being woken by an alarm clock
- #62 But imagine you awake at the ideal moment in your sleep cycleambient lighting, the smell of freshly brewed coffee, and the sound of your favourite musicWith precisely the right amount of time needed to get to the office ready for a big meetingWell, this will happen because: there can be sleep sensors in your bed, monitoring your sleep cycle which iswirelessly connected to your calendar,Which has cross referenced the time you need to get to the office with your GPS against expected traffic patternsAll to determine when to wake you.The sensor has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the dayWhat’s exciting is that all this technology already exists – its just a case of linking it up
- #63 So I read an article over the weekend and I thought I’ve got to drop this in as an example of the internet of things, and wearable tech possibly going a bit too far
- #64 A researcher and professor of computer science at National Taiwan University, has been inspired to apply computer science to oral hygiene by his daughter, who saw a dentist regularly for cavities. He’s created a tooth sensor which could possible monitor her teeth brushing.The tooth sensor, however, goes directly in the mouth. When theytested the system by embedding the sensor (which works by employing accelerometers) on eight volunteers’ molars, they found that the tool classified subjects’ behavior (coughing, drinking, chewing, or talking) with up to 94% accuracy. So the sensor could be connected with Bluetooth, for example, and people could have a no-cheat system of monitoring their diet through a health app on their phones. Or, maybe the sensor could hold a person looking to quit smoking responsible for a sneaky cigarette.All this isvery well and good, but the development of wearable computing also raises an important question: If third-party trackers and marketers have access to personal health data through mobile apps, what happens when your oral habit data is up for grabs? As that data gets more and more specific (or, optimized, as others might argue), it also gets increasingly creepier to realize your information is potentially beyond a comfortable level of personal control.
- #65 However, slightly less creepy is how big data could be used for customer insight, and to improve product and service design.Orange ran a competition, releasing anoymous data on 2.5 million call records from the Ivory CoastOne of the teams who took up the challenge, were a group of IBM researchers, who focused on Data in Abidjan – Ivory Coast’s largest cityThey analysed when and where people were using the bus networkSpotted gaps to identify two new routes neededFound that they could reduce the average journey time by 10% for bus commuters - all done within one month
- #66 However, big data is really a mis-noma – its about mass, micro data.How that data is analysed and used is where the big opportunities lie – the data is there, you just need to work out what to do with it
- #67 You can gain competitive advantage through this understanding in any sector
- #69 So what does it mean to implement digital transformation?
- #70 The digital project must become inheretly linked to your business strategy, seen as a key enabling channel
- #71 And it must be lead by someone
- #72 Your can’t expect it to be lead by a traditional board
- #73 You need to show value to leadership in all areas of the business
- #74 You can gain competitive advantage through this understanding in any sector
- #75 And the best ideas are ones which show value for multiple business areas
- #76 It may seem daunting, but you can start small. UK govt, UX improvement for online tax form
- #77 MNo
- #78 You can gain competitive advantage through this understanding in any sector
- #79 MNo
- #80 You can gain competitive advantage through this understanding in any sector
- #81 You can gain competitive advantage through this understanding in any sector
- #82 You can gain competitive advantage through this understanding in any sector
- #83 You can gain competitive advantage through this understanding in any sector
- #84 You can gain competitive advantage through this understanding in any sector
- #85 MNo
- #86 MNo
- #87 Good news is…