This document outlines 4 key actions for driving digital transformation: 1) Know your customer by understanding their behaviors, preferences, and needs across different digital platforms and devices. 2) Lead with data by using customer data and analytics to test strategies, measure outcomes, and continuously improve. 3) Test and learn through staged market tests, A/B testing, and continuous learning from results. 4) Master accountability by establishing clear roles and responsibilities, and decision-making processes to enable rapid testing and learning. Taking these actions can help organizations capture market share and revenue growth through customer-centric digital transformation.

1. Putting Digital to Work
4 Key Actions to Drive Digital
Transformation

3. 2+ million search queries
Source: Intel

4. 204,000,000 e-mails sent
Source: Intel

5. 120+ reviews

6. 30 hours of video uploaded
Source: Intel

7. 100,000 tweets
Source: Intel

8. 208,000 photo uploads
Source: Intel

9. 9
• 44% of all cell users
• 40% of those 35-44
• 50% of smartphone owners
• 60% of those 18-34
Source: Pew Internet & American Life Project

13. Fragmented “Customer”
Set
Industry
Disruption/Disintermedia
tion
Risk-Sensitive Culture Highly Emotional
Purchase

14. 4 key actions
1. Know your customer
2. Lead with data
3. Test and learn
4. Master accountability

15. 1: KNOW YOUR CUSTOMER

16. Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71

17. Date Event Split-adjusted share
price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94

18. Date Event Split-adjusted share
price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66

19. Date Event Split-adjusted share
price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66
January, 1998 •Cut commissions to $29.95 in all
channels
6.67

20. Date Event Split-adjusted share
price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66
January, 1998 •Cut commissions to $29.95 in all
channels
6.67
Year-end, 1998 •59% commission revenue growth
•Pre-tax margin 18% vs. 10.7%
industry average
•ROIC 5x industry average
•50% market share
15.47

21. 0
5
10
15
20
25
30
35
40
45
12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95
Split-adjusted share price

22. 0
5
10
15
20
25
30
35
40
45
12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95
Split-adjusted share price
•30%-35% of all revenue-
based trades occurred
online (up from ~0%)
•Schwab captured half
•All by focusing on
customer

24. 2: LEAD WITH DATA

26. • “You’re not losing placement on one site;
you’re gaining placement on a dozen more”
• Defined potential lost revenue to each hotel
• Rolled out with only four brands
• Reported incremental hotel results monthly
• Additional brands asked us to enlist in
program

27. 3: TEST AND LEARN

28. “Swing for Fences” or “Slow and Steady”?
• Staged sequence of market tests
for client
• Holdback and A/B tests on
marketing messages
• Averaged 1.6% increase monthly
• 83% revenue increase over three
years
• 22% CAGR
Image source: http://www.usmc.mil/marinelink/image1.nsf/ae82f18a8e1b160b852568ba007e7e5e/afd408b3a327a3d4852570850054af5b/$FILE/02padres01.jpg

29. Not “Big Data.” Your data.
• Know your
customer
• Competitive
differentiator
• Scale when ready

30. Visual Information Specialist Jason Johnston/U.S. Army

31. 4: MASTER ACCOUNTABILITY

33. Image © 2011 Manu Cornet http://www.bonkersworld.net/2011/06/27/organizational-charts/

34. RAPID
• Input
• Recommend
• Decide
• Agree
• Perform

35. 4 key actions
1. Know your customer
2. Lead with data
3. Test and learn
4. Master accountability

36. Thank you
Web: timpeter.com
Phone: 201-305-0055
E-mail: tim@timpeter.com
Twitter: twitter.com/tcpeter