Putting Digital to Work

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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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  • Showed this slide to my daughter. She said, “I recognize that sound. I’ve seen old movies.”
  • Source of Schwab financial returns:
    The Charles Schwab Corporation
    http://mail1.actionenvelope.com/about/overview/history.html
    History of The Charles Schwab Corporation – FundingUniverse
    http://www.fundinguniverse.com/company-histories/the-charles-schwab-corporation-history/
    How We’re Different
    http://www.schwab.com/public/schwab/investing/why_choose_schwab/how_were_different
    History Timeline | About Schwab
    http://aboutschwab.com/about/history
    05/25/19 REMAKING SCHWAB
    http://www.businessweek.com/1998/21/b3579181.htm
    The bull has an identity crisis - Forbes
    http://www.forbes.com/forbes/1999/0405/6307108a.html
    Crossing the Digital Divide: A Transition Baedeker
    http://www.strategy-business.com/article/10516?gko=1341b
    Get Into E-Commerce Without Betting The Store
    http://www.journalofaccountancy.com/Issues/1999/May/piturro.htm
    Merrill Lynch to offer online trading | ZDNet
    http://www.zdnet.com/article/merrill-lynch-to-offer-online-trading/
  • 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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