The Future of the Digital Experience: How to Embrace the New Order of Business & Transform for the Future
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If we learned anything in 2020, it’s that we need to be able to adapt. COVID-19 accelerated what was already a rapid pace of change. Every industry has been disrupted, and the digital experience is more important than ever. It is crucial to move from a digital tracked customer, to a digital engaged model, and finally, to a digital reimagined future. In this webinar, our Transformation practice lead Michael Daehne, will share a view into the future of business and how to get ahead of the change. He will walk through 7 considerations to make sure you embrace the new order of business in your industry. 1. Create Your Digital Transformation Roadmap 2. Strive to be a Data Leader – Not a Tech Leader 3. Adopt an Agile Mindset 4. Unbundle and Re-bundle the Value Chain 5. Explore the Power of the Platform 6. Integrate Location and Event Independence 7. Implement Personalization at the Core of Every Service
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The Future of the Digital Experience: How to Embrace the New Order of Business & Transform for the Future
- 1. The Future of the Digital Experience 1 How to Embrace the New Order of Business & Transform for the Future
- 2. Michael Daehne Partner & Transformation Practice Director 512.473.9039 mdaehne@sensecorp.com 2500 Bee Cave Road Building Three, Suite 100 Austin, TX 78746 2
- 3. 3
- 4. 4 “Girl Scout Cookie Selling Goes Omnichannel” --RetailWire (1/20/21)
- 5. 5 “This new order of business is anchored around a central unifying theme: a desire for a frictionless, digitally connected customer experience.” COVID-19 ACCELERATED THE ALREADY RAPID PACE OF DIGITAL DISRUPTION. THE RESULT IS A “NEW ORDER OF BUSINESS.” Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A Poll Question: As a consumer, in which industries have you noticed digital disruption recently?
- 6. 6 IT’S HAPPENING IN THE RESTAURANT INDUSTRY… Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 7. 7 …IN EDUCATION… Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 8. 8 …IN THE HEALTH & WELLNESS SPACE… Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 9. 9 …AND IN YOUR INDUSTRY, TOO. Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A Poll question: Are you seeing digital disruption in your industry? Any examples?
- 10. 10 1. Create Your Digital Transformation Vision & Roadmap 3. Strive to be a Data Leader – Not a Tech Leader 5. Explore the Power of the Platform 7. Implement Personalization at the Core of Every Service 2. Adopt an Agile Mindset 4. Unbundle and Re-Bundle the Value Chain 6. Integrate Location and Event Independence SO, THE QUESTION BECOMES NOT IF BUT HOW TO EMBRACE THE NEW ORDER OF BUSINESS WITHIN YOUR INDUSTRY. Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 11. Transformation requires a clear and compelling vision. Borrow ideas from other industries to play out scenarios of what the future in your industry might look like. Take every component of interaction and reimagine the service as a completely online experience. Rally your team around a common vision and then build your roadmap. 11 VISION FIRST. PLAN SECOND. EXECUTE THIRD. Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 12. 12 “If you are working on something exciting that you really care about, you don’t have to be pushed. The vision pulls you.” Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 13. 13 EVER HEARD THE PHRASE, “MEASURE ONCE, CUT TWICE?” THAT’S WHAT WE’RE TALKING ABOUT. Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 14. In the new order of business, digital gets all the attention, but data should be at the center of your universe. ECOMMERCE? OMNICHANNEL? PLATFORM SELLING? PERSONALIZATION? IT ALL REQUIRES GOOD DATA. 14 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 15. TRUE DIGITAL LEADERSHIP REQUIRES DATA, NOT TECHNOLOGY. Are you building your house on a solid foundation? Non- productive time Siloed systems Inaccurate reporting Incorrect data Incomplete customer data Gaps in Process Alignment Outdated & Dirty Master Data Little / no Data Governance 15 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 16. Reinventing your entire business for the digital age can feel like boiling the ocean. So, tackle it one component at a time. At each step of the value chain, ask yourself: Is this component value-adding for my customers and for my bottom line? • If it is, think about how to digitally reimagine and improve it. • If it isn’t, consider options for automated or offloading it. -50$ WHAT SHOULD YOU QUESTION ABOUT YOUR BUSINESS MODEL AND PRODUCT OFFERINGS? EVERYTHING. 16 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 17. THE OLD RULES DON’T APPLY ANYMORE – IDENTIFY YOUR CORE VALUE PROP AND DESIGN A VALUE CHAIN THAT MAXIMIZES IT. 17 Source: https://strategyforexecs.com/hbo-vs-netflix/ Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 18. As transactions are moved to digital platforms, the race to become the platform leader will intensify. This race will be determined by platforms that: o Allow all types of data to be captured The value of the captured, aggregated data then increases exponentially for companies that know how to monetize data assets o Offer a variety of services in a one-stop shop for customers The costs and headache involved in switching platforms becomes less and less desirable for users o Subsidize costs in the short-term to gain long-term market share BE THE PLATFORM OR USE THE PLATFORM. EITHER WAY, RECOGNIZE THE VALUE OF THE PLATFORM. 18 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 19. THE RISE OF THE PLATFORM MODEL HAS SHIFTED BUSINESS PRIORITIES FROM MANAGING INTERNAL RESOURCES TO ORCHESTRATING EXTERNAL RESOURCES AND BUILDING ACTIVELY ENGAGED COMMUNITIES. 19 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 20. The foundation of a frictionless digital customer experience is the anytime-anywhere model Location and event independence applies to both: - SUPPLY: providing the product / service - DEMAND: consuming product / service. GUESS WHAT? YOUR BUSINESS IS OPEN 24/7 – WHETHER YOU LIKE IT OR NOT. 20 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 21. HERE, EVERYTHING’S BETTER…INCLUDING THE DIGITAL EXPERIENCE. ANYTIME, ANYWHERE + LAST MILE DELIVERY 21 Create Your Vision & Roadmap Strive to Be a Data Leader Unbundle & Re-Bundle Value Chain Explore the Power of the Platform Integrate Location & Event Independence Introducing the New Order of Business Wrap Up / Q&A
- 22. Thanks For Joining Us We hope you enjoyed the presentation. If you’d like to learn more about how to prepare your organization for the new order of business, download our eBook. DOWNLOAD EBOOK 22 Want to chat more about your digital transformation journey? Reach out to me. I’d love to connect! Michael Daehne Partner & Transformation Practice Director 512.473.9039 mdaehne@sensecorp.com linkedin.com/in/michaeldaehne/
- 23. Thank you!
Editor's Notes
- The new year is a time for resolutions, strategy sessions and annual operating plans, and for those of us with a sweet tooth, girl scout cookies. The Girl Scouts have been selling cookies since 1917, and while the cookie flavors have changed, the “business model” has stayed largely the same: ship cookies to troops around the country and then rely on the Girl Scouts to sell their respective inventory through door-knocking in neighborhoods, setting up tables in malls and retail stores, selling to parents’ co-workers, etc. But what happens when a pandemic blows up the whole model?
- The Girl Scouts embraced digital! Embraced the power of the platform. Understood their customers’ needs. Unbundled and rebundled the value chain. Made a plan. All things we talk about in our new eBook.
- Plug the eBook Talk about unifying theme of frictionless experience Talk about how it’s cross-functional and cross-industry
- Just like the restaurant, education, and wellness industries, the pace of change is increasing across every industry, and it is driven by the common need for a frictionless digital customer experience. As you think about what this means for the “2030 future” of your industry, here are seven considerations to ensure you’re not left behind. Give some examples (with pictures) Telecom Commercial real estate Healthcare Oilfield services
- Get the right input from your customers and your internal stakeholders Focus A TON on the vision….before you get into technologies and project plans Examine your whole business model
- Tell the northmarq story Talk about GLO Power of vignettes and POC
- Tell the BFS and/or Ascend story (anonymize as manufacturing and distribution; highlight digital/eCommerce space) Lennox story also relevant Differentiated customer service models require…data. Strategic product management requires…data. Seamless omnichannel experiences requires…data. Profitability optimization requires…data.
- 88% of companies report that inaccurate data had a direct impact on their bottom line
- Give some examples Companies should be examining how to unbundle their value chain and explore ways to re-bundle it back with every aspect digitally reimagined. Talk about what’s driving the unbundling need Going digital and cutting out the manual face to face What forces would cause you and your company to unbundle – CX drivers, profitability analysis within different aspects of your vertical; doordash example (restaurants outsourcing it) Tell the telco story? Generic intro with tactics
- TELCO unbundling example.. Give some examples Talk about what’s driving the unbundling need Going digital and cutting out the manual face to face What forces would cause you and your company to unbundle – CX drivers, profitability analysis within different aspects of your vertical; doordash example (restaurants outsourcing it) Netflix example… Originally came to market targeting content acquisition + customer acquisition … using Post Office as distribution Then expanded to create content + own distribution channel HBO’s value chain has been optimized to extract value from premium cable subscriptions and licensing deals with TV networks, so arguably it would be highly inefficient to try to outcompete Netflix in online streaming. Netflix’s streaming business model has been entirely designed since its inception to be an “over the top” (OTT) service, that is, to operate as a standalone business that streams content online directly to users, bypassing conventional broadcasting channels such as cable television. That means that Netflix’s model has been optimized from A to Z to deliver a great online experience and all buyers need to use its service is a reliable internet connection, which makes Netflix’s potential market huge. To support its business model, Netflix was a pioneer in the implementation of “recommender” algorithms that crunch massive amounts of users’ data to make accurate recommendations, and introducing streaming techniques that optimize content quality even at slower internet speeds. In 2009, the company awarded $1 million for the creation of its recommender algorithm in a widely publicized competition. HBO, on the other hand, initially saw its online presence as an extension to its premium cable offer which for decades has been the core of the company’s revenues. It launched its HBO GO app in 2010, three years after Netflix launched its streaming service, and only HBO customers could stream through the app. Until then, the market potential for HBO was people with cable who could afford their premium subscription service. It wasn’t until 2015 that the company launched its HBO Now service offering the network’s premium content directly to users who were not subscribers to its cable service. However, because of HBO’s licensing agreements, the service was not available worldwide. Although HBO has been streaming online for over a decade now, it stills lags behind in terms of its online functionality, features and availability worldwide, and its service is priced above Netflix, even though it features only a fraction of the content volume. That’s because global online streaming is not HBO’s core business, and its main users for decades have been consumers of cable TV and the networks around the world who license its content. That means that most of its revenues come from premium cable subscriptions and licensing deals. HBO is highly profitable with a boutique approach to curated content, where it carefully hand-picks what it features, while Netflix on the other hand has gone shotgun hunting after the masses and is buying content in chunks from acclaimed directors and producers. They are both profitable at what they do, and each has come to master its business model. However, HBO faces a problem that Netflix doesn’t: demand for cable TV is shrinking, and market growth seems to be happening abroad as more users around the globe get access to reliable internet, so the network needs to rethink its strategy to deal with these new realities.
- Here is where B2B can really learn from B2C examples.. Go back to Girl Scouts cookie example Talk about power of food delivery platforms like Grubhub Talk about example of HEB acquiring Favor pre-COVID; wise move and good example in Retail space
- A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. *A consumer-goods retailer has begun to implement a platform-based model as it transitions from a bricks-and-mortar business to one that is data driven. Its CIO demonstrated how the company has achieved this in a competitive and highly saturated market by offering customers more local, simple, and digital solutions through artificial-intelligence personalization. Its flexible app platform enables the delivery of value to both the customer and the business. A feature on the platform showed that users who selected a “prepaid” option were generating significantly higher sales. “So we now offer a rebate to customers using this feature,” he told us, which benefits both customer and retailer. The deeper reason that platforms have lately captured so many business leaders’ imaginations is that they enable the “pull-based” approaches which have long been seen as the future of serving customers profitably. In the past, sellers have been limited by the economics of production and distribution to “push-based approaches,” meaning that they simply made an efficient batch size of what they sold and foisted it onto the marketplace. This of course meant investing effort into anticipating what the customer demand might be, using that to create a sales forecast, and then procuring the right resources and people to produce the appropriate quantity of goods. A push-based approach is very efficient if the forecast is accurate—and can at least be profitable if, failing that, the marketer is able to alter demand with its pricing and advertising. But in today’s world, those have become much bigger “ifs.” Where do platform businesses get their competitive edge? Their business model inherently unlocks new sources of supply for value creation. In platform markets, the nature of supply changes so that the business harnesses contributions from communities that were previously just sources of demand. For example, compare the ease with which Air BnB can provide more accommodation in contrast to the extensive resources required for a hotel chain owner to create more rooms for guests. Platforms also can leverage the power of data-based tools to create community feedback loops. As platforms mature, they become better apt at ‘matchmaking’, that is, connecting consumers to the most relevant value units, for example popularity of YouTube videos or reliability of Air BnB homeowners. Community feedback loops are more efficient and allow easier scalability than traditional approaches to regulating content. What makes a successful platform strategy? The rise of the platform model has demanded a shift in strategy from business leaders. Platform leaders must focus on orchestrating external resources and building actively engaged communities, rather than managing internal resources and eradicating competitive barriers. Ecosystem governance, rather than product optimization, is the key driver for success. Identification of your raison d’être: defining the core interaction between producers and consumers Without understanding your core interaction, you will not be able to construct an ecosystem that facilitates the relationships necessary for value exchange. Once it is understood what your core interaction will be, you can then move on with defining who the participants are, what value units will be created, and which filters can be applied to facilitate this core interaction. Value units are created by producers, for example, a service listing for a home on Air BnB The platform provides the infrastructure to make the exchange of value units for currency rewarding and easy An algorithmic tool ensures that users access the appropriate value units. A simple example is a search query The value unit is a crucial part of the platform. While early phases may see the platform producing value units, platform maturity usually sees value comes from producers, to enable rapid scalability. This means that the platform often winds up with no direct control over its inventory. It therefore needs a system which allows it to monitor content quality and ensures that consumers can easily access those value units that are most relevant and useful to them. Platform business leaders must therefore reflect carefully on a strategy that considers how value units are created, incorporated into the platform, and controlled for quality. As platforms evolve, more layers of interaction between producers and consumers may be added. This can either be from needs identified by the platform administrators or through the innovation of the platform users themselves. For example, LinkedIn’s initial core interaction was users creating a profile page. Once it was identified that more was needed to encourage active usage, discussion groups were added, followed by recruitment and advertising functions, and finally the ability for thought leaders – and then any user – to publish content, effectively turning LinkedIn into a publishing platform.
- Integrate Location & event Independence. (to each part of the value chain?) the foundation of a frictionless digital customer experience is the anytime-anywhere model. This location and event independence applies to both: SUPPLY: providing the product / service DEMAND: as well as consuming product / service. *Which means you need to understand every segment of your value chain… every customer touchpoint, every point of friction, every dependence on 3rd party delivery… anywhere that you are NOT a platform leader. Here are 2 key take-aways to start with: With location and event independence, there will be: (internal) TALENT: A move from the gig economy to a talent economy with increasing dependence on People-as-a-Service rather than needing to hire employees. As our clients have (heck, we even offer a Team-as-a-Service in lieu of a 1-off staffing model). (external) Location independence will be further driven by delivering goods wherever they are needed (the “last mile of delivery”). The customer doesn’t have to come to you… you have to go to the customer… No longer services and goods HAVE to be distributed through physical channels and brick-and-mortar locations. Where is the intersection of digital oppty, data capture, customer experience,? Recently, Amazon received FAA approval to operate a fleet of Prime Air delivery drones. We expect this and the use of autonomous vehicles to increase location independence as it solves the last mile delivery. Speaking of last mile of delivery… let’s look at HEB..
- HEB already vertically integrated… Now the got last mile…