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Putting Digital to Work

Leading your organization through a digital transformation requires 4 key actions. This presentation examines how digital magnifies your culture's strengths and opportunities, and reviews how your business can adjust to customers' shifting behaviors.

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Putting Digital to Work

  1. 1. Putting Digital to Work 4 Key Actions to Drive Digital Transformation
  2. 2. 2+ million search queries Source: Intel
  3. 3. 204,000,000 e-mails sent Source: Intel
  4. 4. 120+ reviews
  5. 5. 30 hours of video uploaded Source: Intel
  6. 6. 100,000 tweets Source: Intel
  7. 7. 208,000 photo uploads Source: Intel
  8. 8. 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
  9. 9. Fragmented “Customer” Set Industry Disruption/Disintermedia tion Risk-Sensitive Culture Highly Emotional Purchase
  10. 10. 4 key actions 1. Know your customer 2. Lead with data 3. Test and learn 4. Master accountability
  11. 11. 1: KNOW YOUR CUSTOMER
  12. 12. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71
  13. 13. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71 May, 1997 •700k/1.5MM online accounts 4.94
  14. 14. 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
  15. 15. 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
  16. 16. 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 $29.95 in all channels 6.67 Year-end, 1998 •59% commission revenue growth •Pre-tax margin 18% vs. 10.7% industry average •ROIC 5x industry average •50% market share 15.47
  17. 17. 0 5 10 15 20 25 30 35 40 45 12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95 Split-adjusted share price
  18. 18. 0 5 10 15 20 25 30 35 40 45 12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95 Split-adjusted share price •30%-35% of all revenue- based trades occurred online (up from ~0%) •Schwab captured half •All by focusing on customer
  19. 19. 2: LEAD WITH DATA
  20. 20. • “You’re not losing placement on one site; you’re gaining placement on a dozen more” • Defined potential lost revenue to each hotel • Rolled out with only four brands • Reported incremental hotel results monthly • Additional brands asked us to enlist in program
  21. 21. 3: TEST AND LEARN
  22. 22. “Swing for Fences” or “Slow and Steady”? • Staged sequence of market tests for client • Holdback and A/B tests on marketing messages • Averaged 1.6% increase monthly • 83% revenue increase over three years • 22% CAGR Image source: http://www.usmc.mil/marinelink/image1.nsf/ae82f18a8e1b160b852568ba007e7e5e/afd408b3a327a3d4852570850054af5b/$FILE/02padres01.jpg
  23. 23. Not “Big Data.” Your data. • Know your customer • Competitive differentiator • Scale when ready
  24. 24. Visual Information Specialist Jason Johnston/U.S. Army
  25. 25. 4: MASTER ACCOUNTABILITY
  26. 26. Image © 2011 Manu Cornet http://www.bonkersworld.net/2011/06/27/organizational-charts/
  27. 27. RAPID • Input • Recommend • Decide • Agree • Perform
  28. 28. 4 key actions 1. Know your customer 2. Lead with data 3. Test and learn 4. Master accountability
  29. 29. Thank you Web: timpeter.com Phone: 201-305-0055 E-mail: tim@timpeter.com Twitter: twitter.com/tcpeter

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