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Digital transformation chiefdigitalofficer_engl_hipp_090715

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The digital transformation is one of the biggest challenges affecting almost all businesses. Changing consumer habits, new competitors, disrupted business models and technology innovation impact strategy, people as well as all processes and technologies being used in enterprises. The presentation describes the the need, role, goals of a chief digital officer in a company, who can be cornerstone to successfully manage the digital transformation

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Digital transformation chiefdigitalofficer_engl_hipp_090715

  1. 1. Digital Transformation and the Chief Digital Officer (CDO) Magician for Digital Transformation or just Corporate PR? Helmar Hipp 8. Juni 2015 Helmar Hipp - July,11 2015 https://de.linkedin.com/in/helmarhipp Need, Role, Tasks and Objectives
  2. 2. 1. Trends – the business changes massively 2. Disruption in companies and the need for a CDO 3. Examples for a CDO (Chief Digital Officer) 4. Chief Digital Officer: Requirements, tasks and role in the organisation Disclaimer: Presentation contains 100% text and content. No fancy pictures for entertainment only. Digital Transformation and the Chief Digital Officer (CDO) – Agenda
  3. 3. 70% of all U.S. car buyers research online, an anverage of 18 hours per person (Polk, US) …. This goes inline with many other areas like real estate, dating. Digital marketing creates a survival of the fittest and fastest business model change across almost all industries. Retail businesses have to fight every day, every minute for new users on search engines and in social media. B2B und B2C companies need to in fundamentally change their interaction with customers – driven by the principles of digital marketing. Companies, that do not manage DIGITAL strategically, will loose their competitive position or may even face extinction, say 88% of the respondents (Accenture, US, 2014) Trends: The world changes (1)
  4. 4. Digital transformation has a mssive impact on all business areas. Numerical economy shakes business foundations: • “Acceleration of time” by algorithms, AI, software • Networked economy • Consumer takes the power • Globalisation of competition and price pressure • Marginal costs of Zero in digital / Winner takes it all – Model • Logic of specialisation and excellence Strategic design of all business dimensions towards the numerical economy Even old industries recently define digital strategies: Steel: Strtegic Goal of Klöckner & Co: 50% of all revenues will be digital transaction in 5 years from now. Trends: The world changes (2) – numerical economy
  5. 5. Even with a revenue decline of “only” 20-30 % a business may become extinct Digital Transformation: How does it work? SystemsGrowth Warning signals Emergency Development Industrialisation Old Business Current business foundation Digital: New Business Models (Disruption) Adaptive Digitisation Old Business Phase of critical decisions/ shift of resources / new management Disruption Signs of shifting paradigms Past I Present I Future Time
  6. 6. Businesses experience relevant changes and innovations in: • Customer Experience • Operational excellence, adaptive innovation • Business model changes, often driven by disruptive innovation In detail >> Digital Transformation: Implications in important areas
  7. 7. Digital Transformation: Goals and areas of change MIT Digital Transformation Study, 2013 cited by Adjuvi LLC.
  8. 8. • Enterprise data and information aggregation are growing rapidly • Technology kills first market participants (Analogy: How has the Internet changed the printing and publishing industry?) • Focus of IT shifts from pure systems management towards managing requirements at customer interfaces and usability • Role and relevance of intermediaries are in decline • Pressure on IT increases, to migrate from a cost center towards a strategic business generator. • More and more Digital Natives (Generation Z) in the company • Touch UI, App Stores, Smart mobil, Cloud, Social Meda, Internet of Things become frequently used vocabulary Changes in businesses and early signs of Digital Transformation
  9. 9. Accenture shows in reports: • 38% der CMOs beklagen mangelhafte Beteiligung durch IT. • 31% der CIOs sagen, Marketing sei technologisch unzureichend versiert. CMOs und CIOs haben immer mehr Konflikte, bei Fragen um Gestaltung, Verantwortung (Gartner, 2014) Es gibt sowohl zuwenig IT, als auch zu wenig Marketing Mitarbeiter, die Digital Marketing (inkl. Tech Themen) hinreichend verstehen. Marketing Tech wird laut Gartner ab 2017 mehr Investitionen bedürfen als klassische IT. Integration Tech/IT und Marketing wird “mission-critical”. Organisational deficiencies in the era of Digital Transformation: Clash of Marketing and IT
  10. 10. Companies, that reach theirs customers faster, deliver a better customer experience and communicate better with theirs customer, will advance in competition. This changes businesses globally. Dimension of change in companies Success factors in Digital Transformation People Tech- nology Strategy Culture Qualifications Talent MarTech IoT Mobile Cloud Business Models Markets Disruptors
  11. 11. Digital Transformation = CEO / Executive Task & Commitment CEO has to cover old/core business & new business. Need for Digital Transformation Lead on Eexcutive Board Level Integration of all initiatives Digital Transformation in a CDO on Exec Level People Tech- nology Strategy Cief Digital Officer can be the driving force for change: He hat the ability to – with a mix of experience of know-how in technology, business building and consumer orientation – to unite marketing and technology, and contribute on strategy definition as well as cultural ecolution.
  12. 12. What percentage of companies do have a CDO by sector? CDO Talent Map: CDO Summit (NYC Feb 2013) Large sectors like retail, finance, services have a backlog
  13. 13. • 25% of all US Large Corporates will have a CDO by 2016 CDO (Gartner, Russell Reynolds) • Number of CDOs in US large Corporates hat quadrupled in 2012-2014 (CDO Club) • Examples • Atif Rafiq, Global Digital Officer, Mc Donald´s • Adam Brotman, CDO, Starbucks • Charlie Redmayne, CDO Harper Collins, now CEO More and more CDO positions defined & filled
  14. 14. • For businesses facing disruptive challengs (Analog to digital, paid to free/freemium), e.g. media, publishing, … Transformative product- and technology-know-how, Development of Business Models, Consumer-Interfaces, Process- and Management-Know-how for new branches >> Online-Entrepreneuer within company • For Consumer Goods and Services: Online Marketing and Social Media Know-how, in conjunction with brand management and consumer engagement. • For e-Commerce, Online Retail, Producer with Online Sales: E-Commerce and Transactions-Expertise: Building abd developing reach, conversion, revenue, management of channels, SKUs, customer journey Skills & Know-how: What is a good CDO?
  15. 15. • Strategic – focused but open for change • Execution – delivers results • Comitted – thinking sustainable • Deleops relationships – generates buy-in for digitale topics • Respected leader with board, customers and has maximum support of CEO • People – attracts good people • Entrepreneurial – develops new business and revenue • Innovator – develops a transformative and disruptive vision with the board, drives implementation Personality: How acts a versed CDO?
  16. 16. Positioning of Chief Digital Officer in Executive Management Structure CIO Chief Information Officer CMO Chief Marketing Officer CDO Chief Digital Officer COO Chief Operation Officer CEO Implementation of a agile IT-Strategy, Multiplatform/-device with customer/userfocus Build Customer-Intelligence Optimise Usability (Lean UX), Focus on Conversion and Metrics Improvement of operational efficiency through digital processes (Lean Ops) Digital Transformation is core within strategy, Ontop of CEO Agenda Responsibility for Digital Transformation and manages digital projects with CIO, CMO, COO
  17. 17. Marketing will be domintaed by online, offline will be secondary. CMO has a focus on advertising, CDO ha sthe view on all digital customer touchpoints (information, transaction, delivery, service….) Holistic view of the customer journey >> possible trend towards a Chief Customer Experience position. CDO does not replace CIO – CIO has focus on functional technical systems, hosting, architecture > CDO manages customer needs and impact on all areas based on analytics CDO may also be a Business Development oder Chief Innovation Officer function on executive level with high strategic focus CDO is probably a transition position until 2020, for the era until the company has fully embraced & implemented the digital transformation. Wired Magazine 2014, Preston Editor in Chief Information Week, Wired.com/2014.year-of-the-cdo CDO within the Management Organisation
  18. 18. Chief Digital Officer Role – Modern Heptathlon CDO Developing Digital Marketing Strategy Shaping Digital User Experience Ensuring Mult- Channel/Device Transforms Processes towards Digital Implements new digital Business Models Recruts Digital Talent Reports to the Board
  19. 19. Disruptive New Busines Models Separated Orga- New Value Chains, Innovation Products/Services nisation and P&L, Growth, Platforms, Netzworks M&A, PE Invest- Leading Digitale with customers/partners ment Change Adaptive Digital Processes & Coopertion CDO Efficiency Gain, Innovation Internet Technology, with BUs, CMO, CIO Productivity Gain Customer Centricity in existing Core Business Business, I Direct ROI Methods Digital Methods and Tools from Silicon Valley / Start-ups Innovation (Build Measure Learn / Fail fast, learn fast / OKR Method / Business Canvas, Think big, act small) Digital Transformation: Goals & Implementation Development Implementation Result Innovation and delivering Value for customers and partners
  20. 20. Helmar Hipp hipphelmar@gmail.com +49-175-1818808 https://de.linkedin.com/in/helmarhipp Over 15 years in management positions in digital and internet sector Managed digital transformation successfully and built digital business in several sectors M&A, Venture Capital and PE experience from over 60 transactions Contact details

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