Mark Manton discusses how digital transformation drives innovation. He outlines Experian's history and business, then discusses how digital has disrupted many industries. Manton describes the importance of digital skills and maturity for businesses and the financial performance benefits of digitally mature companies. He discusses different models of digital transformation and the impact of digital on financial services in terms of changing consumer needs and expectations. Manton advocates developing a digital culture and environment to support innovation and provides examples of digital success at Visa and the Financial Times.

1. Mark Manton
Driving Change Through Innovation
Birmingham, 16th September

2. ©2015 Experian plc. All rights reserved. Experian Public.
How digital transformation drives innovation
Mark Manton - Head of Online Marketing UK&I
©2015 Experian plc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian plc.
Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may
be reproduced, modified, or distributed in any form or manner without prior written permission of Experian plc.
Experian Public.

3. A Brief History
of Digital
with images
and frames
Full Development
+ UX
High Cost/High Impact
Digital Culture
& Environment
Innovate
Through Digital
What Success
Looks Like

4. ©2015 Experian plc. All rights reserved. Experian Public.
We’re a leading global information services
company…
In a faster, more complex world, our data and analytics help people and
organisations protect, manage and make the most of their data.
Revenue
US$4.8 bn
EBIT
US$1.3 bn
Market Cap*
c. £12bn – UK
FTSE Top 50
Employees
c.17,000
Offices in
39 countries
Largest markets
US, Brazil,
UK

5. A Brief History of Digital

6. 1995
20 Years of Hyper-Growth

8. A Disrupter.

9. 77%
Of SME’s have basic digital skills.
Source: Lloyds Bank/Accenture

10. 1 in 4
Of Birmingham SME’s lack the skills
and resources required to utilise data
effectively.
Source: Digital Birmingham

11. Innovate Through Digital

12. CUSTOMERS
Customer buying behaviour
is changing in every industry,
market and country.

13. £719m
UK average weekly spend online in
2014.
Source: ons.gov.uk

14. 13%
Just 13% of organisations are using
their websites for ecommerce.
Source: Lloyds Bank/Accenture

15. INNOVATION
Is the process of creating
exceptional customer value
through active listening.

16. Innovation
Exceptional
Value
Listening

17. ©2015 Experian plc. All rights reserved. Experian Public.
4 Types of Digital Maturity
Consumer
Services
DigitalIntensity
Digital Leadership
FASHIONISTAS DIGIRATI
BEGINNERS CONSERVATIVES
Source: Capgemini Consulting.

18. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Maturity Financial Performance
+6%
Revenue Generation
-11%
Profitability
-12%
Market Valuation
-4%
Revenue Generation
-24%
Profitability
-7%
Market Valuation
+9%
Revenue Generation
+26%
Profitability
+12%
Market Valuation
-10%
Revenue Generation
+9%
Profitability
+7%
Market Valuation
Source: Capgemini Consulting. Sample size 184 publicly traded companies

19. 1/3
Digitally mature companies are one-
third more likely to report an increase
in turnover compared to non-mature.
Source: Lloyds Bank/Accenture

20. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Transformation Models
Digital modification to the business
• Typically implemented by adding digital channels
The creation of new digital businesses
• Produce digital products that complement
traditional products
Digital globalisation
• Business becomes multi-national in its outlets and
markets

21. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Transformation
Strategy People
Processes Technology

22. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Transformation of
Financial Services
Understanding
the customer
journey
How customers
are using mobile
Teams are fully
trained in digital
Optimise
online/offline
data
Customer
behaviour
insights
Deliver the
digital promise

23. ©2015 Experian plc. All rights reserved. Experian Public.
The Impact of Digital on Financial Services
Consumer
Services
• Digital technology is having a disruptive influence
• Consumer needs and behaviours are changing
the landscape
• How do businesses remain relevant and useful?
• Digital has changed what people demand, but
also how they want it supplied
• Consumers and businesses are expecting a high
degree of convenience, simplicity and speed

24. 73%
Of financial services companies are
planning to experiment heavily with
digital in 2015.
Source: Accenture

25. 67%
Of consumers would consider buying
insurance from companies other than
insurers.
Source: Accenture

26. 25%
Would consider buying insurance
from large tech companies such as
Google and Amazon.
Source: Accenture

27. PROBLEM
SPACE
with images
and frames
Full Development
+ UX
High Cost/High Impact
SOLUTION
SPACE

28. ©2015 Experian plc. All rights reserved. Experian Public.
Importance vs Satisfaction Framework
Opportunity Competitive
Low
Returns
Low
Returns
High
Importance
Low
Importance
Low
Satisfaction
High
Satisfaction

29. ©2015 Experian plc. All rights reserved. Experian Public.
Idea Innovation
Consumer
Services
• Determine your target customers
• Identify underserved customer needs
• Define your value proposition
• Specify Minimum Viable Product (MVP) feature
set
• Create your MVP prototype
• Test MVP with customers – get feedback

30. ©2015 Experian plc. All rights reserved. Experian Public.
Product & Service Innovation
UX
Feature Set
Value Proposition
Product Market Fit
Understand Market
Target Customer Product
Problem
Space
Solution
Space
Market
Test
Learn
Feedback

31. ©2015 Experian plc. All rights reserved. Experian Public.
Product & Service Innovation
Consumer
Services
• Innovate with Minimum Viable Product (MVP)
and get rapid feedback
• The main reason products fail is that they don’t
meet customer needs – Product:Market fit
• Evaluate disruptive innovation vs incremental
innovation
• Strategy is also about saying no!

32. ©2015 Experian plc. All rights reserved. Experian Public.
Product & Service Innovation
Consumer
Services
• Digital innovation is about communication
• Listening is the most important aspect of digital
innovation
• Add innovation and value at each point of contact
– the layers of customer touch
• Customer touch points: pre-touch, first touch, in-
touch and last touch
• 80% of what your customer feels about your
brand will happen on the first touch

33. 80/20
Focus your efforts on finding areas which
are most important in your business and
should get the right level of attention.
Perfectionism is a non-optimal way to
iterate!

34. Digital Culture and Environment

35. DIGITAL
TOP-DOWN
Digital transition must come from top-
down. Your digital ambitions needs to
be owned and driven by your CEO,
MD or senior executive team.

36. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Culture
Consumer
Services
• Is the foundation stone to any digital initiative
• Culture is how organisations think, feel and
works as whole to achieve excellence
• External focus is the cultural lifeblood that keeps
innovation going – be curious, keep learning
• Most things that go wrong with innovation can be
attributed to internal focus – excessive risk
aversion, process focus, bureaucracy etc

37. ©2015 Experian plc. All rights reserved. Experian Public.
Digital Culture
Consumer
Services
• Does your business have a digital culture or an
analogue culture
• Your digital strategy must be part of an
integrated, open culture – fix the company
culture and infrastructure
• Create a digital command centre – air traffic
control for all your digital activities
• Organise digital learning sessions – digital labs
• Establish an innovation platform to encourage
idea submissions from the team

38. PLAY
with images
and frames
Full Development
+ UX
High Cost/High Impact
INVENT
LISTEN
DEPLOY

39. DISRUPT
Or be disrupted.

40. What Success Looks Like

41. VISA
• Created a digital division
• 500 million cards in Europe
• Future where all cards are digitised and
available for use in mobile form
• Developing digital wallets
• Removing friction from the retail
experience via V.me by Visa – a new
digital wallet with a 4-step buying process
– no need for lengthy shopping carts
• Mobile money transfer services using just
a mobile phone number
• Future concepts of putting payments into
cars – combining connectivity and
continuity to complete the customer
journey

42. FT
• In 2000, the US newspaper industry
generated $60bn in advertising – 10 years
later this was down to $20bn
• UK publishers have closed 181 titles in
the last 10 years
• In 2001, with 90,000 subscribers on print,
FT started to charge readers for access to
content. In 2007, used metered charging
model using consumer demand to price
content
• In 2014, FT subscriptions and sales
reached an all time high of 700,000
• Digital subscriptions increased 23% YOY
• Digital subscribers accounted for two-
thirds of the total paying audience
• Mobile accounts for 50% of FT’s traffic

43. 1 billion
The number of people that the BBA
estimates by 2017 will have used
their mobile devices for banking.
Source: British Banking Association (BBA)

44. 2020
5 Year Digital Roadmap

45. Bold
Agile
Disruptive
Adaptable

46. Embrace Digital
Transformation
with images
and frames
Full Development
+ UX
High Cost/High Impact
Build Your
Digital Culture
Innovate, Iterate
& Disrupt
Data &
Customers

47. In our digital world, speed
and convenience wins.

49. How will your business use digital
to stay relevant and useful to
your customers?
Roundtable Question