Putting Digital to Work
4 Key Actions to Drive Digital
Transformation

2+ million search queries
Source: Intel

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

120+ reviews

30 hours of video uploaded
Source: Intel

100,000 tweets
Source: Intel

208,000 photo uploads
Source: Intel

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

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

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

1: KNOW YOUR CUSTOMER

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

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

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

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

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

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

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

2: LEAD WITH DATA

• “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

3: TEST AND LEARN

“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

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

Visual Information Specialist Jason Johnston/U.S. Army

4: MASTER ACCOUNTABILITY

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

RAPID
• Input
• Recommend
• Decide
• Agree
• Perform

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

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