Digitally Outsmart the Competition During the Recession

M ag e n ta a dv i s ory p u b l i c at i o n

11 / 2012

M AG EN TA A DV I SO RY R E S E A RC H

Digitally Outsmart The Competition
During The Recession

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digitally. Our unique approach to management consulting
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03 e x ec u tive s u mmary
Digitally Outsmar t The Competition During The Recession | Magenta Advisory Research

i INTRODUCTION

Staples opens Despite the recession Macy’s is heavily
a new e-commerce occuring throughout investing in
innovation center Europe, Marks & Spencer is e-commerce and
with aims to triple spending $400 million will add 725
the size of staff for on relaunching its positions
Staples.com in the e-retail site, offering Wi-Fi to support its
next two years in stores and outfitting online sites
january 27, 2012 store staff with iPads. january 4, 2011
september 7, 2012

in this paper, we shed light on how companies can I Digital capability building
embrace and grow their digital business during an during an organizational
economic downturn. We have picked three typical cost-cutting period
corporate reactions to recessions and highlight the While the economy is down, companies tend
important role digital plays in not only helping your to slash costs across all departments and
current business, but also in laying the foundation increasingly take a short-term perspective
for future growth. on investments. Taking advantage of lean
In this paper, we outline how your company can development methods and digital solutions
benefit by investing in digital business today to out- such as Software as a Service helps in tackling
play the competition tomorrow. We recommend these issues.
companies build their digital and multichannel ca-
pabilities during the economic downturn by cutting II Digital business model
costs wisely, generating new revenue streams and/or explor ation to combat
growing internal competences. diminishing consumer spending
Applicable to most industries, whether B2C
or B2B, customers tend to spend and buy
less when the economy is down. New digital
business models provide innovative means
that cater to price conscious customers and
expand market footprint.

III Digital competence building
in an er a when
digital talent is laid off
In turbulent times, companies are often forced
to cut costs, leading to lay-offs. Recently
these have also included digital professionals
– a scarcity in Finland. Companies willing to
invest should seize the opportunity to recruit
digital talent now when the supply is high and
demand temporarily low.

Before looking at each of these areas in more
detail, let’s first look at why it really matters
how you play the game during a recessions.

04 introd u ction

What do the winners of recessions company’s business today but its importance both in
have in common? absolute figures as well as indirectly as a part of an
As we enter 2013, the global economic outlook re- omnichannel customer experience is growing all the
mains covered in dark clouds. While most associate time. This is well visible in Figure 3, which compares
recessions with losing, every downturn also has its us retailers’ same store sales and online sales. Since
winners. This was also the case in the 1930’s Great the dip in 2008, nearly all of us retailers’ absolute
Depression. Although many companies lost fortunes sales growth has come from digital business ($16bn
and went bankrupt, companies such as Procter & vs. $1bn). Even more, the growth of online sales has
Gamble, Camel and Chevrolet emerged as winners. far exceeded that of same store sales for several years.
Whilst there are underlying variables and differ- In order to see if companies that focus on ecom-
ent theories to why this was, merce have really succeeded
one thing is generally agreed better than others, we com-
upon: These companies dared A good hockey player pared the stock price develop-
to invest in the future. These plays where the puck is. ment of the top 20 publicly
companies placed significant A great hockey player listed online retailers to that
sums of money into market- plays where the puck of s&p 500 From Figure 4 we
ing and product development is going to be. can easily see that companies
when everyone else cut back wayne gretzky with large online sales have
on spending. survived the recession better.
When looking at more re- By mid August 2012, the Top
cent research, similarities can be found from com- 20 online retailers’ shares were 20 % more expensive
panies that survive recessions better. A study by than the respective investment in s&p 500 in the
Harvard Business School (2010) studied 4,700 public beginning of 2008.
companies’ performance during the past three glob- The same development is also happening in
al recessions. The results suggest that companies, Europe as can be seen from Figures 5 and 6. First, as
which either cut costs fast and deep or invest reck- Figure 5 illustrates, online share of media spending
lessly during a downturn, have a lower probability to is growing rapidly and online is quickly becoming
beat competitors when times get better (see Figure the dominant advertising channel. This is mostly
2). According to the study, the most probable post due to the fact that online commerce has been also
recession winners are companies that are able to cut growing rapidly despite the recession, as Figure 6
costs selectively and focus on operational efficiency, illustrates.
but at the same time invest in the future by spend- Another interesting point is how Finland ranks
ing more on marketing, r&d and new assets. in these comparisons. Finns rank among the most
As we will present later in this paper, digital busi- frequent online shoppers, but online share of media
ness provides a cost-effective means to invest into spend is still relatively small. This could imply that
new assets and market development. However, let’s Finnish retailers are losing a major share of their
first look at why digital is our solution for surviving sales abroad because of a lack of investment in digi-
the recession. tal business.
This is a good example of how the business envi-
Why can digital business ronment has changed dramatically during the last
help survive the downturn? decade. Online pure players and foreign retailers
Sooner or later, every downturn is followed by an have entered the game and are here to stay.
upturn. Companies that have prepared for econom- To generalize, we explain the success of digital-
ic recovery by wisely divesting and investing into focused companies through three different factors.
the future, are way ahead of their competitors when First, digital-focused companies are able to get a
the economy picks up. Yet it is not enough to simply better return on their investments in the short term.
invest - companies need to know where to invest. Second, digital business enables new business mod-
“A good hockey player plays where the puck is. els and expanding sales to new customer segments
A great hockey player plays where the puck is and geographical areas with relatively small costs.
going to be.” — Wayne Gretzky Third, companies that have dared to invest in digital
Although comparing ice hockey to running a operations during the downturn have been able to
business might be far fetched, the ability to think cherry-pick the best talents from the market. In the
strategically about your next move is just as applica- next three chapters we will go through each of these
ble to both. Digital business might be a fraction of a areas in detail.

05 introd u ction

FIGURE 2:
Strategic options for
companies during
recession Promotion-focused moves

Market Asset
Both
development investment

Employee +3.3% -5.2%
Prevention-focused moves

reduction Sales growth EBITDA growth

Operational +13% +12.2%
efﬁciency Sales growth EBITDA growth

Both

Source: Adapted from Harvard Business Review 2010

FIGURE 3:
US retailers’
same store sales
vs. online sales

Source: Internet Retailer 2012

06 introd u ction

FIGURE 4: Top 20 US publicly listed e-tailers vs. S&P 500
Change in %
Stock price Top 20 e-tailers:
performance of
Top 20 US e-tailers
45 %
vs. S&P 500 index

Digital monetization gap
30 %

TOP 20 E-TAILERS
15 %

0%

-15 %

-30 % S&P 500

-45 %
2008 2009 2010 2011 2012
All the companies in the Top 20 index are equally weighted on 2nd January 2008

Source: Google Finance, Internet Retailer’s Top 500 list 2012

FIGURE 5: (left) Online share of all media ad spend 2011 Growth People with last online purchase in the last 3 months
Online share of
70 %
all media ad spend UK 35,9 % +14 %
and growth
Denmark 27,9 % +15 % UK
60 %
Netherlands 27,9 % +13 % SWEDEN
FIGURE 6: (right)
People with last Norway 24,9 % +6 %
50 %
online purchase Sweden 23,4 % +14 %
in the last
3 months Europe average 21,7 % +15 % 40 %
FINLAND
Germany 21,4 % +11 %
30 %
France 20,6 % +9 %
EU-27
Poland 16,2 % +23 %
20 %
Russia 15,9 % +56 %
ITALY
Finland 15,9 % +8 %
10 %
Italy 15,2 % +16 %

0%
2005 2006 2007 2008 2009 2010 2011

Source: IAB Europe, Adex Benchmark 2011 Source: Eurostat 2012

07 case st u dy I – nordstrom

Founded in 1901, Nordstrom is an upscale department store operating
Case I 234 brick-and-mortar stores in the us and with online sales to several coun-
tries worldwide, including Finland. Nordstrom has been able to weather the
recession better than most of its competitors by making a series of smart
investments to sustain growth.
In 2005, Nordstrom’s online sales constituted 5.7 % of overall revenue
and the company stated that 10 % would be a tough figure to get beyond.
During the economic turmoil in 2008, the company’s overall sales declined
4.3 % whereas online sales kept growing at double-digit figures.This was the
point when the company decided to start investing heavily in e-commerce.
Nordstrom’s success in recent years hasn’t come by coincidence. First,
the company invested in integrating inventories between warehouses
and stores. In practice this means that when one orders a product from
the online store in San Francisco, it can be dispatched from a department
store in Manhattan. This buy anywhere, fulfill anywhere mentality enables
Nordstrom to sell products from stores that have excess inventory, mini-
mizing the need to mark down items at the end of the season. The integra-
tion has resulted in record setting warehouse turnaround times (from 4.8
in 2005 to 5.6 in 2011).
Second, to increase sales when consumers are cutting on spending,
Nordstrom acquired flash sales site HauteLook for $180 million. Whereas
other department stores have tried to build their own flash sales sites with
minimal success, Nordstrom minimized risks by acquiring an already estab-
lished business.
Third, Nordstrom has invested heavily in its e-commerce platform. During
the next five years, the company plans to use one-third of its capital expen-
ditures, in other words $1 billion, in e-commerce.
With these investments, Nordstrom has been able to get ahead of its
competitors in otherwise difficult times. Today, online sales already make
nearly 10 % of the company’s revenue and are growing 30 % a year. In 2012,
the company is expected to make over $1 billion online. The double-digit
growth in online business and stock value hitting new heights is showing
that Nordstrom is on the right track.

08 D igita l ca pabi l ity b u i l ding d u ring an organi z ationa l cost- c u tting p eriod

I Digital capability building
during an organizational
cost-cutting period

during times of economic struggle, companies are business: Start utilizing lean thinking and leverage
often put under intense pressure to cut costs across opportunities provided by digital outsourcing such
the board and somehow maintain profitable opera- as Software as a Service (SaaS).
tions to keep shareholders happy. It is undeniable Lean development should not only be seen as a
that costs often do need to be cut, but these cuts method for software development, but more of a
should be made in the correct places. Bearing in mindset. In brief, lean development involves devel-
mind the importance of digital capabilities in the fu- oping and deploying a simple version of a business
ture, cutting back in this area would be questionable. solution as fast as possible before developing it fur-
In addition to having to cut costs, companies are ther or developing a new feature. Therefore, com-
often pressured to change their investment focus. panies that don’t have a lot of capital to invest can
In times of downturn, investment behavior is often still continue their product development efforts by
focused on short-term portfolios with quick return- starting small and expanding them later on.
on-investment, while more unknown areas such as Companies that have used this technique in the
digital are perceived as too risky. past include Groupon, Twitter, Facebook, Instagram
We offer two pieces of advice for cash-strapped and Dropbox. A more detailed description of a typi-
companies that are looking to keep costs minimal cal lean process can be seen in Figure 7.
and obtain a short-term focus for their investments, Using lean development provides two main ad-
while still taking into account the role of digital vantages that are especially worthwhile in difficult

FIGURE 7:
Example of
lean business MINIMUM VIABLE CAPABILITY
ITERATIVE PRODUCT
PLANNING CONCEPT
PRODUCT DEVELOPMENT SCALING
development DEVELOPMENT
• Defining product • As little functionalities • Continuous • Developing scalable IT
vision as possible development of system with lean
• Defining KPI metrics • Only provided for operating model and methods
and objectives limited number of functionalities on basis • Defining scalable
customers of KPIs operating model
• Minimum viable • Monthly iterative
product definition for • Developed with lean version releases • Broad usage across
testing idea methodology developed iteratively organizations
• Business unit involved • Business unit involved • End user training
on daily basis on daily basis
• Product scaling
• Maximum 6 months
decision made when
development time
KPI objectives met

= Milestone

Source: Eric Reis, Magenta Advisory Analysis

09 digita l ca pabi l ity b u i l ding d u ring organi z ationa l cost- c u tting p eriod

FIGURE 8:
How companies
• Silicon Valley based airline Virgin America moved their corpo-
achieve cost-savings
by utilizing SaaS? rate e-mail into the cloud in 2010 by utilizing Google Apps
• Migration will cut e-mail system costs by approximately
half on an annual basis
• Long-term storage benefits of move into cloud
will save them over 18 terabytes of space

• Multi-national transaction facilitator Global Blue implemented
Amazon Web Services due to capacity issues caused by rapid
growth in online refund issuing business
• Move resulted in cost savings of 800,000 USD
in CAPEX and 78,000 USD in OPEX
• Other realized advantages include increased speed and capacity

• Location-based social network Foursquare
implemented Amazon web services to perform
analytics across 5 million + daily check-ins
• Implementation resulted in cost savings of 53%
compared to self-hosting, while still maintaining scalability needs
• Other advantages include decreased data processing time
without having to develop new applications or add risk

Source: Amazon Web Services, Google Apps

times. First, lean development enables faster time SaaS is a third party hosted software that a com-
to market, as beta versions of a product can be re- pany can use and pay only for the amount of actual
leased a long time before the actual version is ready usage. From a company perspective this means that
for release. Early adopters are likely to start using a investments needed to start a venture are small. If
product that is in its early stage even if it still isn’t a the investment doesn’t prove viable, the service can
perfected product. be terminated on a short notice with minimal in-
Second, lean product development decreases both vestments having to be made. In turn, if the project
capital and operational expenditures. This is because proves that there is profit to be made, the service
lean development doesn’t require committing to can be easily scaled up or even insourced. The risks
large investments with long timelines, but empha- and investment levels remain small compared to the
sizes cutting down product development to smaller opportunity that is present. In Figure 7, we can see
pieces. After each step decisions can be made about how large global companies have started using SaaS
the next steps based on whether they deliver enough to save costs.
return on investment or not. In addition, waste is By utilizing SaaS, companies are able to decrease
eliminated in project work because features are typi- their capital expenditures (capex) and move these
cally not developed until it is absolutely necessary. costs into operational expenditures (opex) at the
Having looked at how to provide short-term rate at which the software is used. In times when
wins with more efficient development techniques, both investments and risk-taking is low, this pro-
let’s now look at how costs can further be decreased vides an opportunity to develop digital capabilities
concretely by utilizing digital outsourcing. We have otherwise seen as too risky.
picked SaaS as an example.

10 case st u dy I I – gi lt gro u p e / airbnb

Gilt Groupe was launched during the economic turmoil of 2007.
Case II The timing couldn’t have been better, as the founders predicted
correctly that during a recession consumers would be intrigued
by the idea of buying high-end branded products for 50-70 %
cheaper prices.
The business model utilized by Gilt, also known as flash sales,
was originally introduced by a French company called Vente-
Privee. It is based on buying a large quantity of products and
selling them within a limited time frame (in Gilt’s case, 48 hours).
In times of decreasing demand, many manufacturers are will-
ing to get rid of their extra stock even if it has to be sold at a
lower margin. Gilt, in turn, is able to sell those products with a
lower price tag than other retailers, therefore attracting a large
audience.
Gilt Groupe originally launched only for women, but as the
concept proved successful, the company quickly expanded to
menswear and home furnishing. In 2011, Gilt Groupe’s rev-
enues were estimated at $500 million and the company was
valued at $1 billion.

11 case st u dy I I – gi lt gro u p e / airbnb

Airbnb, launched in 2007, is an online service that matches peo-
ple looking for accommodation with those for rooms to rent.
Due to increased price sensitivity, consumers have quickly found
the service as an alternative to staying at hotels.
Airbnb’s business model is an adaptation of eBay’s popular
consumer-to-consumer marketplace. The company has simply
translated eBay’s business model to the travel industry by offer-
ing accommodation from people to people. Airbnb’s role is to
act as the marketplace, providing a platform for secure reserva-
tions and transactions. In addition to general C2C sites such as
Craigslist, Airbnb provides a money-back guarantee for guests
and an insurance of up to 700,000 € for hosts.
Currently, Airbnb gets 43,000 nights booked every day, out of
which ¾ are first time bookers. The company made an estimat-
ed $52.8 million in revenue in 2011 and is valued at $1.3 billion.

12 D igita l b u siness mode l e x p loration to combat diminishing cons u mer s p ending

II Digital business model
exploration to
combat diminishing
consumer spending

during economic downturns, customer spending Since directly imitating a business model from an
tends to decrease and customers tend to become online pure player might not always be the best
more price sensitive and start opting for cheaper al- strategy, companies can also make use of business
ternatives. This decreases the demand for more up- models in other ways. First, companies can local-
scale products and services. ize an existing concept to their own market where
When the market isn’t growing, companies must it isn’t present. A good example of this is Sanoma
either increase existing customers’ share of wallet Group’s owned Offerium, which is a localized ver-
or expand to new market segments. Digital busi- sion of Groupon. Second, companies can apply an
ness provides two different solutions. First, com- existing concept to other industries. This is what, for
panies can incorporate new digital business mod- example, Airbnb has done by introducing the c2c
els into their business. Second, companies can marketplace to booking accommodation.
use cost-effective market entry models enabled
by digital services.
How to use digital as a platform
for international growth?
How to cater to Digital offers companies the possibility to utilize
the more price-sav v y consumers? cost-effective market-entry models. For example,
First, increasing existing customers’ share of wallet companies who are not yet selling their products
can be a strenuous task when consumer spending is globally can utilize e-commerceto expand their
going down. As Case 2 illustrates, digital provides reach abroad. While far from a “walk in the park”,
new innovative business models, such as flash sales, selling abroad through an online store is a smaller
consumer-to-consumer marketplaces and group investment compared to opening new brick and
sales, to overcome this challenge. mortar stores in several countries.
Although originally introduced by online pure Some companies have decided to outsource
players, traditional retailers are also able to utilize e-commerce back-end operations when expand-
these models in their business. For example, Gilt ing to multiple markets to decrease risk. Investing
Groupe created a new flash sales online business in customer care, logistics and finance can be ex-
model to enable high-end brand manufacturers tremely heavy with localized customer prefer-
to sell products to price-conscious consumers that ences and legal constraints. Case 3 goes through
would be otherwise left to stock. Traditional us re- how William-Sonoma outsourced its e-commerce
tailer Saks Fifth Avenue followed in 2011 by intro- back-end operations.
ducing its own flash sales site Saks FASHIONfix.

13 case st u dy I I I – wi l l iams - sonoma

M USD

4500 100 %
3945
4000 3721 90 %
3504
3500 3361 80 %

S
3103
Company revenue

70 %
3000

hare
60 %

of
2500
50 %

onl
2000 38 %
34 % 40 %
31 % 30 %

ine
1500 28 %
30 %

sa l es
1000 20 %
500 10 %

0 0%
2007 2008 2009 2010 2011

Williams-Sonoma is an American high-end retailer of home furnishing and
Case III kitchenware founded in 1956. It operates 576 brick-and-mortar stores
around the us and owns brands such as Pottery Barn and West Elm.
By 2007, Williams-Sonoma had mainly grown by investing in new brick-
and-mortar stores and acquiring some of its competitors, such as Pottery
Barn in 1986. In 2008, when the stock market crashed, the company re-
corded comparable store sales of -17 %, being one of the worst years in
the company’s history. In the same year, sales in the online channel were
down only -6 %, generating more than $1 billion of
the total revenue.
Marketing
In 2009, the company made a strategic shift to use
brick-and-mortar stores mainly as showrooms and
make its online store the primary sales channel. This
Merchandizing
enables the company to save on property costs, as
fewer square feet are needed as well as to decrease
Site Content Management & inventory levels. This was also the first year that the
Operations company started closing down its brick-and-mortar
stores.
Order Management & During this time, Williams-Sonoma has closed
Finance
down several brick-and-mortar stores and online
Outsourced
now accounts for nearly 40 % of all revenue.
Logistics With the help of online commerce, Williams-
Sonoma was able to star t selling its prod-
ucts internationally in 2011. To minimize the
Product Management investment and risks, it buys ser vices from
FiftyOne, a company specialized in international
expansion of e-commerce. FiftyOne takes care
of currency conversions, duties, returns and postal regulations in dif-
ferent countries. Now Williams-Sonoma is selling its products
to over 100 countries.

14 D igita l com p etence b u i l ding in an era when digita l ta l ent is l aid off

III Digital competence building
in an era when
digital talent is laid off

Facebook acquires WalMart plans hiring
mobile bookmarking 200 developers for WalmartLabs
service Spool in Bangalore by 2012
– april 17, 2012
the social networking giant
is paying for the company’s
five employees, Marissa Mayer is the new
not its technology CEO of Yahoo
july 12, 2012 july 16, 2012

be it through company acquisitions, headhunting or because digital investments are technology focused.
direct steals, global companies fight for digital tal- The underlying assumption is usually that digital
ent because they know it is a scarcity. Digital talent business runs itself. Top management should always
is as hard to find for cxo-level positions as it is for remember to align sales targets with headcount
operational smes. allocations as Figure 9 illustrates. Alike any other
“…there is a war for talent. This industry is one business, digital business requires competent people
hot industry…We want to attract the best and the to maximize performance.
brightest.” — Peter Sachse (chairman of Macys.com
until February 2012)
If finding the best and brightest digital talent is How do we know what talent
difficult in the us – it’s even harder in Finland. The we are looking for?
current recession however provides a unique time to Organizing digital operations to deliver digital
grab talent other companies have laid-off. strategy is a fundamental starting point in digital
transformation. There is no single way to organize,
but what is important is that you select a model,
Why is finding and retaining digital which suits your selected strategy, targets and cur-
talent so important? rent organization the best. In Figure 10 we present
Translating your digital strategy into efficient digital three typical structures to organize digital business
operations requires not only the underlying tech- in organizations.
nology but also processes and people to run the day- Companies should also bear in mind that suit-
to-day business. Thus, how you recruit and retain ability of different organization models change as
talent to build your company’s digital dna is vital digital maturity evolves. For example, a company
in how you succeed in your chosen digital strategy. may choose to have digital talent scattered across
While new competences are needed for digital the organization at first, then decide to create a
organizations, companies often hesitate to allocate digital center of excellence and finally, implement a
budgets to its headcount. More often than not, hub and spoke model.
digital organizations are severely understaffed

15 D igita l com p etence b u i l ding in an era when digita l ta l ent is l aid off

FIGURE 9: (on left) 78 people Decentralized
Average e-commerce Average eCommerce
team headcount team headcount when
based on company’s online revenue $10 M
online revenue – $150 M annually

FIGURE 10: (on right)
Different ways
Digital Digital Digital Digital
to organize
digital operations

Centralized

23 people
Average eCommerce
Digital
team headcount when
online revenue under
$10M annually

Shared service

Digital

Source: Adapted from Forrester Research 2012 Source: Forrester Research 2009

How do I build a digital organization, our company’s Digital DNA?

I Assess and select which digital III Decide what roles are required might want to outsource its online
organizational model is suitable for within each team, how many em- content production – for a branded
your digital business. Consider digi- ployees are required, what will be consumer goods company content
tal objectives, analyze these against their responsibility areas and what marketing and high quality content
various organizational models and type of capabilities are required. production may be a top priority
select the one with best fit. for internalization.
IV Decide which roles you want to
II Plan organizational teams and their keep in-house and which to out- V Recruit and retain digital talent! As
ways of working. Consider what source. As in any business, consider always, recessions lead to lay-offs
teams are needed, their responsibil- what should be at the core of your throughout organizations. This can
ity areas, deliverables, interfaces to competitive advantage and keep be also seen as an opportunity as
others in the organization and how that inside your company, outsourc- it means that there are plenty of tal-
they will be measured. ing non-core roles. As an example, a ented people on the market. Now
retailer will definitely keep its pur- is therefore a unique time to build
chasers inside the organization but digital competences.

16 case st u dy I V – S anoma

Sanoma is a European media group with a portfolio of digital, learning,
Case IV news, magazine and tv activities. With 11,000 people in some 20 countries,
it is one of the leading companies in its industry.
As many media companies with a long history in printed press, Sanoma
long held the belief that traditional media won’t lose its share to digital
media. In 2011, however, with declining revenues from its printed products,
Sanoma placed digital as one of its strategic focus areas. This has meant
several changes in the organization.
First, the company decided to change its organization structure so that in
addition to seven business units, there are two horizontal units, digital op-
erations and customer market operations. This change was done to ensure
that digital business expertise could be utilized throughout the organization.
Second, they started to build their digital center of excellence by aggres-
sively recruiting digital talent from an array of industries. The company also
appointed its first ever Chief Digital Officer, reporting directly to the ceo.
The results of the shift in strategy are already starting to show. In the first
half of 2012, Sanoma’s online sales (excluding TV and radio) grew by 20.9%
to €115.8 million, accounting for 9.7% of the group’s net sales.

Sample of digital positions Sanoma has been recruiting in 2011/2012
Director Consumer Marketing & Sales Feb 2012
Graphic designer April 2012
Digital Marketing planner May 2012
Digital planner May 2012
Head of Online Analytics and Insights Feb 2012
IT Manager Nov 2011

17 H ow M agenta A dvisory can he l p yo u r organi z ation ?

How Magenta Advisory
can help your organization?

CAPABILITY BUSINESS
STRATEGY CONCEPT
CONCEPT CAPABILITIES
EXCELLENCE
DEVELOPMENT
Vision and mission Business concept Vendor selection Management for hire
definition definition Program management Key performance
Strategy definition Customer value Program audits indicator definition
Target setting proposition design Business performance
Use case definition
Strategy roadmap Best practice analysis
benchmarks Operating process
creation creation Performance
Business model Business requirements management
definition Organization design establishment
definition and ramp-up
Business case creation Detailed business case Development
creation Training & change roadmapping
Competitor analysis management
Program planning

Magenta Advisory helps both top management and operative teams cre- Figure 11:
ate competitive advantage digitally. Be it strategy creation or continuous Sample of Magenta
Advisory services
optimization of digital business operations, we commit to helping our clients
become digital leaders. Magenta Advisory can help your company in its’
digital transformation to outperform the competition.
In Figure 11 we have selected a sample of services we offer across a
clients digital transformation.
We believe in building long-term relationships with our clients to work
with them throughout their digital transformation. Our clients choose us
and stay with us because:

• We are leading experts in digital and multichannel business
• We understand digital channels should be business and facts driven
• We have a track record of helping our clients succeed
• We understand both multinational and local brands
• We deliver results

18 abo u t the a u thors

About the authors

Mia Folkesson is a Partner at Magenta Contact information
Advisory. Mia is a leading expert in digital
business transformation, digital capability Magenta Advisory
building and operational excellence. Mia info@magentaadvisory.com
has a background in successfully driving Bulevardi 6 A 12
complex international digital business 00120 Helsinki
transformations. Finland

mia.folkesson@magentaadvisory.com
+358 400 377 170

Juho Ullakonoja is a Consultant at Magenta
Advisory. Juho is a business development
specialist focusing on digital marketing and
sales with industry experience covering re-
tail, telecom and consumer goods industries.

juho.ullakonoja@magentaadvisory.com
+358 40 757 1001

Eemeli Metsäntähti is a Consultant at
Magenta Advisory. Eemeli is a business
development expert focusing on digital
business transformation with a background
in business technology.

eemeli.metsantahti@magentaadvisory.com
+358 50 346 2920

Digitally Outsmart the Competition During the Recession

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