Paul Laughlin discusses digital transformation and some common challenges organizations face. He notes that digital transformation can mean different things to different people and organizations. Some key tests of digital transformation include whether it improves efficiency, accessibility for users, rethinks processes using new digital tools, and enables more agile working methods. Laughlin also discusses how enabling technologies are growing but organizations need to focus on data foundations like availability, quality, and a single customer view before implementing predictive analytics or AI technologies. He provides tips on using journey mapping to understand customer needs and how digital transformation is an emotional journey that requires planning.

1. Paul Laughlin
Chief Blogger/Podcast Host, CustomerInsightLeader.com
Founder, LaughlinConsultancy.com
Big Data & Analytics in your
changing organisation

2. Digital Transformation is
unavoidable but also risky

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3. In Digital Transformation masterclass we
explore the steps that leaders need to take
“Why Digital Transformations Fail” (p. 28) by Tony Saldanha, Berrett-Koehler Publishers (2019)

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5. Digital Transformation can mean all
things to all people

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“Digital transformation can refer to anything from IT modernisation (for example, a move to
cloud computing), to digital optimisation, to the invention of new digital business models. The
term is widely used in public-sector organizations to refer to modest initiatives such as putting
services online or legacy modernisation.” Gartner Research
“Digital transformation marks a radical rethinking of how an organisation uses technology,
people and processes to fundamentally change business performance.” George Westerman,
principal research scientist, MIT

6. 4 tests to spot Digital Transformation

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1. Improves ef
fi
ciency of a process or an
organisation (Automation)
2. Improves accessibility and ease for
users/customers (Meeting needs)
3. Rethinking processes/services because
of what is possible with digital tools
4. Agile working methods (different ways
of working to deliver change)

7. Keep a weather eye on an ever
growing list of enabling technologies…

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8. Let’s demystify some of that IT jargon

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9. What do your mean by Analytics?

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10. What do your mean by Analytics?

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11. What do you mean by Big Data?

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13. Face the depressing facts

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14. Face the depressing facts

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15. Data is still foundational to Digital
Transformation & Data Science
Monica Rogati: The AI Pyramid of Needs. Hacker-noon blog post, 1 Aug 2017
(https://hacker-noon.com/the-ai-hierarchy-of-needs-18f111fcc007, accessed 19/04/2018).

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16. The digitisation of our lives also drives
a faster speed of Data Quality erosion
DATA ACCURACY CHALLENGE 2:
Research from Royal Mail Data Services (RMDS) reveals that
organisations believe that inaccurate customer data costs
them, on average, six per cent of their annual revenues.
DON’T KNOW
40%
30%
20%
10%
0%
5.1%
3.7%
3.3%
5.7%
33.2%
33.7%
20.1%
34.6%
30.6%
23.3%
4.2%
2.6%
16+% 11-15% 6-10% <5% 0%
COST OF POOR-QUALITY CUSTOMER CONTACT DATA AS A PERCENTAGE OF ANNUAL REVENUE
Source: Royal Mail Data Services Research 2017
complex interconnected digital economy, that the GiGo theory still applies – that is to say
‘garbage in = garbage out’.
A STEEP CLIMB OVER DATA ACCURACY CHALLENGES
Data gurus3
have offered advice on customer data quality management for over 20 years.
However, many factors make this a more complex challenge than those faced in the past.
The speed of changes in personal data, increased data protection regulation and the
amount of IT change planned all make this feel like a moving target.
Let’s consider those challenges in turn, to see how they may apply to your business...
DATA ACCURACY CHALLENGE 1: ‘SPEED OF CHANGE’
Changes in consumer behaviour, as well as a greater need for up-to-date data, mean
customer data decays at a faster rate than ever before. Akin to use-by dates on food,
data becomes useless if it is not updated to keep track of changing circumstances.
This rate of personal data change has gone unnoticed by too many organisations.
Looking at this in more detail, up to 3,000 changes are made every day to the Royal Mail
Postcode Address File (PAF®
). Couple this with the latest data from the Office of National
Statistics relating to daily life events that also affect customer data accuracy, there are so
many changes occurring on a daily basis for this to easily and quickly lead to out-of-date
addresses, names or inappropriate understanding of needs. The hidden cost to your
business of such inaccurate data reveals itself in many business functions. Inaccurate
addresses cause marketing and product delivery returns, as well as impacting billing
and collections. Inaccurate names deliver poor customer experience, and customers
may leave due to a poor impression of the company. In addition to marketing and
operational costs, there is a greater risk of regulatory fines.
9,590
HOUSEHOLDS MOVE
1,496
PEOPLE MARRY
810
PEOPLE DIVORCE
2,011
PEOPLE RETIRE
1,500
PEOPLE DIE
DAILY LIFE EVENTS
AFFECTING CUSTOMER
DATA ACCURACY
Source: Office of National Statistics

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17. Tip 1: Focus on your data
foundations before too much tech
Predictive + Prescriptive Analytics
Business Intelligence
Data Science & AI
Traditional Analytics
Data Availability & Quality are the foundations for building any part of this house
• Ease of data access (normally through
fl
exible Cloud based solution, AWS et al)
• Freedom to move and transform data (with suitable Data Lake or “sand pit” space available)
• Single Customer View (at least virtual, to enable customer records as basis for analysis

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18. Tip 2: Use journey mapping to focus on the
people you are seeking to help

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19. Tip 2: Use journey mapping to focus on the
people you are seeking to help

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20. Tip 2: Use journey mapping to focus on the
people you are seeking to help

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21. Using what GDRP requires can help

22. Tip 3: Digital/Data transformation is an
emotional journey, plan for it

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24. customerinsightleader.com
laughlinconsultancy.com
@LaughlinPaul
linkedin.com/in/paullaughlin
paul.laughlin@southwales.ac.uk
Any questions?