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Unlock Your Organization Through Digital Transformation

Digital Transformation allows you to be disruptor, not the disrupted. See what you missed from our workshop at the Carnegie Mellon Engineering and Technology Innovation Management (ETIM) program’s 10th Anniversary Summit with senior leaders from academia and industry. Learn how to digitally optimize your business with principles of human-centered design that put the heart of the consumer at the center of business model innovation.

Digital Transformation
Design Thinking

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Unlock Your Organization Through Digital Transformation

  1. 1. THROUGH DIGITAL TRANSFORMATION P R E S E N T E D B Y @ P E T E S E N A @ P E T E S E N A UNLOCK YOUR ORGANIZAT ION T HR OUG H D IGITA L TRANSFORMATION
  2. 2. DIGITAL SALES & MARKETING DIGITAL PRODUCTS & CHANNELS DIGITAL BUSINESS MODELS DIGITAL TRANSFORMATION DEFINED 2X ROI 5-10X ROI 10X+ ROI v Unlocking the full growth potential of your business with digital strategies, channels and products.
  3. 3. THE PROOF IS ALL AROUND US $20 BILLION 5 YEARS OLD $379 BILLION 22 YEARS OLD $126 BILLION 86 YEARS OLD $1 BILLION 5 YEARS OLD (ACQUIRED BY UNILEVER) $258 BILLION 124 YEARS OLD $593 BILLION 40 YEARS OLD $68 BILLION 7 YEARS OLD $1.2 BILLION 7 YEARS OLD
  4. 4. DIGITAL TRANSFORMATION UNLOCKS THE MAGIC 3 GREAT IDEA GREAT BUSINESS GREAT PRODUCT
  5. 5. IS YOUR BUSINESS DISRUPTING OR BEING DISRUPTED? NATIVE DIGITAL DISRUPTION High Low FREQUENCY OF PURCHASELow High TRANSACTION COMPLEXITY • Private Investments • Flooring • Mortgage • Recycling Services • Eye Glasses • Automobile • Mattresses • Employee Benefits • Travel • Music • Razors • Food
  6. 6. VERTICAL INTERMEDIARY DISRUPTOR Private Investment Investment Banks Venovate Eyeglasses Retailer/ Optician Recycling services Waste Management Rubicom Global Floors Contractor Mattresses Retailer Automobile Dealer Mortgage Loan Originators Health Benefits Insurance Broker Hotels Travel Agent Music Record Labels Razors Drug Store Food Supermarket NATIVE DIGITAL DISRUPTION
  7. 7. BE THE DISRUPTOR NOT THE DISRUPTED
  8. 8. FUTURE PROOF YOUR BUSINESS
  9. 9. 1. 2. 3. 4. 5. DIGITAL TRANSFORMATION STARTS WITH THESE 5 CORE QUESTIONS ARE YOU DISRUPTING OR BEING DISRUPTED ON DIGITAL CHANNELS? HOW SENSATIONAL IS YOUR CUSTOMER EXPERIENCE? DO YOU KNOW WHAT YOUR CUSTOMERS ARE THINKING AND DOING? ARE YOU EVOLVING AS FAST AS YOUR CUSTOMERS AND COMPETITION? HOW CONTEXTUALLY- RELEVANT AND COMPELLING IS YOUR CONTENT?
  10. 10. DIGITAL GROWTH STRATEGY DIGITAL TRANSFORMATION BY THE NUMBERS of manufacturers will start selling directly to their customers HUMAN-CENTERED DESIGN of marketers are prioritizing the customer experience as the focal point of the branding, design, and delivery of their products and services CUSTOMER INSIGHTS of CMOs believe better leveraging data and analytics will be a top organizational priority by 2020 AGILE DEVELOPMENT of marketers are trying to incorporate agile ways of working and marketing CONTENT DEVELOPMENT of CMOs agree they need to become publishers in order to support their growth programs 40% 89% 67% 89% 93%
  11. 11. In the 1990s and early 2000s, software companies tried to outdo their competitors by packing their products with as many features as possible, but this resulted in time- consuming, clunky user experiences — particularly in financial software. Mint Founder Aaron Patzer built a streamlined interface that evaluates a user’s bank statements and presents an easily-digestible breakdown of their budgets. By taking the pain out of financial planning, the company exceeded a million users within two years and was purchased by financial software giant Intuit. 1.5 MILLION CUSTOMERS acquired in 24 months PURCHASED BY INTUIT for 170 Million DESIGN DISRUPTION : FINANCIAL
  12. 12. REIMAGININGTHE PRIVATE BENEFITS MARKETPLACE Does any employee ever enjoy picking their benefits? Three ring binders, confusing jargon, endless options — it becomes impossible to understand what’s best for you and your family. Liazon acts an intermediary between insurance providers and employees to provide a more personalized, transparent, and navigable digital experience. The key is not to show the customer a bunch of choices, but the choice that’s best for them. Employers that use Liazon to deliver benefits have tripled employee engagement. 2x CUSTOMER SATISFACTION CUSTOMER ENGAGEMENT 3x INSIGHTS DISRUPTION : INSURANCE
  13. 13. DTC DISRUPTION : DTC CPG Razor blades aren’t cheap. And they’re behind lock and key in your local drugstore. Startup Dollar Shave Club disrupted an industry dominated by two titans with a direct-to-consumer, e-commerce business model that delivered blades for cheap right to the consumer’s doorstep. And they made shaving funny with a viral YouTube video that to date has over 24 million views. In 2016, industry giant Unilever bought the four-year old startup for 1 billion dollars. ACQUIRED BY UNILEVER for 1 Billion
  14. 14. DTC DISRUPTION : FASHION In 2006, Burberry was declining. Sales were tepid and the luxury brand was growing at a mere 2% per year. That year, new CEO Angela Arhendts began connecting with a digital demographic that reaches for their phone in moments of want or need. These targeted, personalized digital campaigns resulted in a Facebook presence that boasted more than 1 million followers; the largest for any luxury brand. By 2012, revenues doubled to 3 billion dollars. DIGITAL IS DRIVING 40% of projected sales growth
  15. 15. PEOPLE PROCESS PLATFORMS THE KEYS TO UNLOCKING DIGITAL TRANSFORMATION
  16. 16. PEOPLE
  17. 17. REDEFINE THE ORG CHART vs Flexible Cross-Functional TeamsTraditional Top-Down Silos
  18. 18. New: Adaptive eLearning Tools & ResourcesOld: Static Ways of Learning INSTILL KNOWLEDGE Stagnant Content, Unmeasurable Outcomes Adjustable Platforms, Quantifiable Results vs
  19. 19. BIG IDEAS COME FROM EVERYWHERE Walmart established @WalmartLabs, an “idea incubator,” as part of its expanding e- commerce division in Silicon Valley—far from the company’s headquarters in Arkansas. The group’s innovations, including a company- wide e-commerce platform, helped Walmart increase online revenue by 30%, actually outpacing Amazon’s rate of growth.
  20. 20. PROCESS
  21. 21. •Waterfall Project Management •Linear, Siloed Thinking •Annual Reviews PROCESS •Agile Project Management •Cross-Functional Thinking •360-Degree Peer Reviews REACTIVE ORGANIZATIONS PROACTIVE O RGANIZATION S [ R E S T R I C T I V E ] [ A D A P T I V E ]
  22. 22. WHAT DRIVES
 PEOPLE
  23. 23. PROCESS 01Purpose 02Autonomy 03Mastery The WHY Objectives & Key Results Access to Digital Learning & Development SHARED ORGANIZATIONAL VISON FREEDOM TO FAIL (AND SUCCEED) EMPOWER EXPLORATION
  24. 24. Eliminated annual reviews saving both time and annual turnover. Created a “Connect + Develop” open-source program that taps external data to accelerate internal innovation. Saved approximately 80,000 hours of managers’ time 30% reduction in voluntary turnover 20 submissions every weekday or more than 4,000 a year Implemented company-wide workshops to eliminate unconscious bias and create a culture where it’s safe to express new ideas. Trained team members are 16% more likely to avoid negative outcomes stemming from bias
  25. 25. PLATFORMS
  26. 26. PLATFORMS EMAIL STATIC SPREADSHEETS FACEBOOK AT WORK SLACK REAL-TIME 
 ACTIONABLE INSIGHTS AND SHARED LEARNINGS
  27. 27. MORE CONNECTION, LESS EMAIL While those at the headquarters of the rapidly growing UK cosmetics company Lush were aligned, teams located on the other 5 continents that they operate reported frequent miscommunication. To increase transparency and eliminate disconnects, Lush implemented Slack. The workplace communication platform increased effective communication and transparency, but best of all, employees reported a 75% reduction in internal email use.
  28. 28. AT THE HEART OF DIGITAL DISRUPTION
  29. 29. AT THE HEART OF DIGITAL DISRUPTION
  30. 30. PLATFORMS MARKETING ANALYTICS STRATEGY STOP THINKING DIGITAL MARKETING
  31. 31. STOP THINKING DIGITAL STRATEGY PLATFORMS MARKETING ANALYTICS STRATEGY
  32. 32. PLATFORMS MARKETING ANALYTICS STRATEGY STOP THINKING DIGITAL ANALYTICS
  33. 33. PLATFORMS MARKETING ANALYTICS STRATEGY STOP THINKING DIGITAL PLATFORMS
  34. 34. PLATFORMS MARKETING ANALYTICS STRATEGY STOP THINKING DIGITAL NATIVES
  35. 35. IT’S ABOUT CONVERGENCEBringing people and technology together to create better experiences
  36. 36. DOING GOOD…ON DEMAND
  37. 37. ELIMINATING
 SILOS
  38. 38. WHERE YOUR IS CORE TO EVERYTHING CUSTOMER
  39. 39. WHERE YOUR CUSTOMERIS CORE TO EVERYTHING
  40. 40. HUMAN CENTERED DESIGN
  41. 41. F O C U S O N REDUCING FRICTION
  42. 42. YOUR TURN: COMBINE ONE FROM EACH COLUMN TO IMAGINE A NEW BUSINESS OR PLATFORM DTC DISRUPTION : DESCRIPTOR
  43. 43. 3D Printing 5G Artificial intelligence Augmented Reality Autonomous Vehicles Drones Geolocation IoT (internet of things) Mobile Robotics SaaS Social The Cloud Streaming Media Virtual Reality Wireless Power Wearables TECHNOLOGIES Autonomy > Monotony Betterment Cashless Transactions Cord-cutting Crowdsourcing Gamification Hackers & Makers Love for Local Made for me Mission-driven Businesses Multi-sense experiences Multi-screening “One-tap” Products/ Services Status Tests The Sharing Economy Virtual Social TRENDSAUDIENCE Casual Gamers Entrepreneurs eSports Competitors Facebook Moms Fashionistas Grandparents Hipsters LOHAS Consumers Nostalgic Consumers Single Parents Sports fanatics Startup Founders Teachers Tech-evangelists The Disabled Time-starved Technophiles Vegans
  44. 44. DISCUSSION: WHAT WE CAME UP WITH DTC DISRUPTION : DESCRIPTOR
  45. 45. VOTING: PICK ONE VIABLE IDEA DTC DISRUPTION : DESCRIPTOR
  46. 46. P R O D U C T I N N O V AT I O N S U P P LY C H A I N CUSTOMER CENTRIC O R G D E S I G N E X P E R I E N C E M A R K E T I N G A N A L Y T I C S S O C I A L C R MD M P A D V E R T I S I N G
  47. 47. P R O D U C T I N N O V AT I O N S U P P LY C H A I N CUSTOMER CENTRIC O R G D E S I G N E X P E R I E N C E M A R K E T I N G A N A L Y T I C S S O C I A L C R MD M P A D V E R T I S I N G
  48. 48. BREWING 
 CONNECTED EXPERIENCES Seattle coffee giant Starbucks first appointed a Chief Digital Officer, Adam Brotman, in 2009. Major digital strides in mobile, mobile payment, loyalty, social, and e-gifting have grown Brotman’s team to over 100 employees operating as larger cross-functional teams focused on digital goals and objectives. Wireless charging stations, an integration with social music platform Spotify, and a Starbucks for Life mobile-powered game promotion are all evidence of the coffee brand’s ability to provide valuable digital experiences for their customers.
  49. 49. F O C U S O N OUTCOMES OUTPUTS N O T
  50. 50. WRITE FIRST, BUILD LATER Before Amazon developers write a single line of code, they have to write the hypothetical product's press release and FAQ announcement. This forces software and engineers to fully understand not just the creative technology that will power the product or project, but what the value proposition is and how it will be marketed to the end user. If the press release isn’t compelling, the product won’t be either. HERE'S AN EXAMPLE OUTLINE FOR THE PRESS RELEASE: HEADING Name the product in a way the reader (i.e. your target customers) will understand. SUB-HEADING Describe who the market for the product is and what benefit they get. One sentence only underneath the title. SUMMARY Give a summary of the product and the benefit. Assume the reader will not read anything else so make this paragraph good. PROBLEM Describe the problem your product solves. SOLUTION Describe how your product elegantly solves the problem. QUOTE FROM YOU A quote from a spokesperson in your company. HOW TO GET STARTED Describe how easy it is to get started. CUSTOMER QUOTE Provide a quote from a hypothetical customer that describes how they experienced the benefit. CLOSING AND CALL TO ACTION Wrap it up and give pointers where the reader should go next.
  51. 51. DISCUSSION: WHAT WE CAME UP WITH DTC DISRUPTION : DESCRIPTOR
  52. 52. 1. 2. 3. 4. 5. DIGITAL TRANSFORMATION STARTS WITH THESE 5 CORE QUESTIONS ARE YOU DISRUPTING OR BEING DISRUPTED ON DIGITAL CHANNELS? HOW SENSATIONAL IS YOUR CUSTOMER EXPERIENCE? DO YOU KNOW WHAT YOUR CUSTOMERS ARE THINKING AND DOING? ARE YOU EVOLVING AS FAST AS YOUR CUSTOMERS AND COMPETITION? HOW CONTEXTUALLY- RELEVANT AND COMPELLING IS YOUR CONTENT?
  53. 53. GROWTH DEFINE OPPORTUNITIES & THREATS • Competitive disruption • Technology trends • Emerging behaviors • Business models • Assets and capabilities • Market adjacencies • Profit drivers • Sources of competitive advantage • Behavior change • Touchpoints • Sentiment • Digital adoption • Unarticulated needs • Segmentation • Key points of failure, friction, and frustration • Identifiers • Touchpoints • Journey mapping • Emotion • Economics • Cost to sell • Key points of difference • Value story • Promise • Digital Sales & Marketing • Digital Channels • Digital Offerings • Business model Innovation • Roadmap • Go-to-Market Mix • Channel Development • Platform development • Value story • Offers • Message • Offerings • Experience • Promise INSIGHTS DIGITAL SURGEONS FRAMEWORK FOR DIGITAL TRANSFORMATION UNDERSTAND CUSTOMER BEHAVIOR ESTABLISH AN EXPERIENCE DESIGN POINT DEVELOP A STRATEGY/ ROADMAP MINIMALLY VIABLE PRODUCT ITERATE, OPTIMIZE, AND SCALE DESIGN
  54. 54. QUESTIONS ANSWERS OUTCOMES DRIVING GROWTH WITH DIGITAL TRANSFORMATION FOR YOUR BUSINESS + =
  55. 55. WHEN BUSINESS MODEL INNOVATION INTERSECTS WITH THE HEART OF THE CONSUMER DISRUPTION HAPPENS
  56. 56. THROUGH DIGITAL TRANSFORMATION P R E S E N T E D B Y @ P E T E S E N A

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