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DIGITAL TRANSFORMAION
WHY?
WHAT?
HOW?
MORETHAN 500 PEOPLETRANSFORMING COMPANIES
AROUNDTHEWORLD
“Si quieres construir un barco, no empieces por buscar
madera, cortar tablas o distribuir el trabajo. Inspira
primero en los hombres y mujeres el anhelo por el ancho
y libre mar.”
Antoine de Saint-Exupéry
Libertad y responsabilidad
Organización sin jerarquías
Y sin procedimientos
Hace 15 años…
BBVA
BBVA–Stratio Joint Venture for Corporate-Wide
Digital Transformation
WHY AND WHEN TO TRANSFORM?
TWO TYPES OF NECESSITY
Conclusión
Necessity
to survive
Maybe too
late
Who has used some of this?
“Add distinction and
avoid extinction”
Nothing is riskier
than not to risk
15
Necessity to continue being a leader is the way to go
Imagen Dragon
What are the digital challenges faced by our business?
WHY?:
NEW AND CHANGING COMPETITION
BANKING RETAILTELCO MEDIA LEISURE INDUSTRY ENERGYTRAVEL
THE BIG DIGITAL DRAGONS LIKE GOOGLE, AMAZON, FACEBOOK…
ARE CHALLENGING ALL SECTORS.
BIGGEST THREAT
 Big Digital companies
 Fintechs
 Startups
 Neobanks of existing players
 Traditional competitors partnering
 Companies from other sectors
 Others
 Transparency, a key principe. You can
not hide anything from customers
 TransferWise aggressively pushing its
alternative in London, UK
FINTECHS AGGRESSIVENESS
A DIGITAL AND GLOBAL WORLD
DIGITAL IS REINVENTING HUMAN EXPERIENCE
HOW PEOPLE LIVE, WORK, PLAY AND CONNECT
WE ARE IN THE AGE OF CUSTOMERS
 20% of your customers give you 80% of your revenue
 10% of your customers give you 90% of your profit
 98% of dissatisfied customers never complain, they just
leave
 65% of lost customers are due to negative experiences
 75% of negative experiences are not related to the
product
 It costs 3 times more to acquire than to retain a custome
 12 times more to win back a dissatisfied customer.
 Over 5 years a company retains 20% of customers
 5% increase in retention increase profits by 25 to 55%
 A very satisfied customer will tell 3 people.
 A dissatisfied customer will tell 12
 A very dissatisfied customer will tell 20
CUSTOMERS ARE IN CONTROL
THIS GAP BETWEEN DIGITAL CUSTOMERS IN THE CUSTOMER AGE AND
PHISICAL COMPANIES IS THE REASON FOR DIGITAL TRANSFORMATION
CUSTOMERS ARE MORE
DIGITAL THAN PHYSICAL
COMPANIES….
AND ADVANCE FASTER
THE DAWN OF MACHINE AGE
WE ARE DIGITALIZING THE WORLD
SATELLITES
SENSORS, IOT, M2M
WHERE SOME ONLY SEE NOISE
OTHER GETS PATTERNS AND VALUE
THINK OUT OF THE BOX
WE ARE TRANSFORMING THE WORLD INTO DATA
NOT ONLY DIGITALIZING THE WORLD,
BUT WHAT IS HAPPENING AT THE WORLD
AT ANY MOMENT
WEARABLES
WHAT WE ARE FEELING
WHERE
WHEN
SENSING YOU
WE CAN TRANSFORM
THE FEELINGS OF THE
CUSTOMERS, AND SELL
SOMETHING
APPEALING TO THE
WAY THEY FEEL
CUSTOMERS’ JOURNEY WILL HAVE
INFINITE TOUCHPOINTS
ANY PLACE WILL BE A TOUCHPOINT
THE CUSTOMER AGE AND THE MACHINES AGE
We are in the fusion between people and machines
in ways we are not able to imagine yet
THE PRESENT
DATA INTELLIGENCE IN REAL TIME
THE FUTURE IS ARTIFICIAL INTELIGENCE
Taxi drivers, uber drivers? Not needed with Selfdriving cars
Pizza delivery people? Robots delivery
Truck drivers? Selfdriving trucks
More than 500 million Jobs will be lost
And other 100s of millions
will be created
Drones cost per unit:
3D printing cost averages
for equivalent functionality Industrial robots: Costs for DNA sequencing:
Solar power cost per kWh: Sensors:
Cost of smartphone
with similar specifications:
- 2007: $100k
- 2013: $700
- 2007: $40k
- 2014: $100
- 2007: $550k
- 2014: $20k
- 2000: $2.7bn
- 2007: $10mn
- 2014: $1k
- 1984: $30
- 2014: $0.16
- 2009: $30k
- 2014: $80
- 2007: $499
- 2015: $10
TECHNOLOGY EVOLUTION IS EXPONENTIAL
TECHNOLOGY COST IS ALSO DECREASING EXPONENTIALLY
In the next 20 years the technology advancement will be equal to all previous technology advancement until now
“What does mean exponentially?”
The company that moves more people?
THE NEW LEADERS HAVE CERO PHISICAL ASSETS, ONLY DIGITAL ASSETS
(Cars = 0)
(Hotels = 0)
(Music Studios = 0)
(Movie Studios = 0)
The company that reserves more rooms?
The company that sells more music?
The company that sells more movies?
SOFTWARE IS EATING THE WORLD
THE WORLD HAS CHANGED
THE WORLD IS CHANGING
FROM NECESSITY COMES THE DECISION OF DIGITAL TRANSFORMATION
AND ONCE YOU HAVE MADE THE DECISION YOU WILL NEED THE WILL AND
PERSEVERANCE TO EXECUTE IN A TRY-AND-LEARN APPROACH
WHAT?
WHAT SHOULD I BECOME TO BE A
DIGITAL COMPANY?
WHAT TO BECOME IS A LOGICAL
CONSEQUENCE OF THE DIGITAL AND
GLOBAL WORLD
THE CUSTOMER AGE
THE BEGINNING OF THE MACHINE AGE
1st VECTOR FOR DIGITAL TRANSFORMATION:
CUSTOMER CENTRICITY OBSESSION
Customers are the new bosses, adapt to them as fast as they required, or
you will loose your competitive advantage to become a laggard.
CUSTOMER CENTRIC OBSESION REQUIRES CONTINUE CUSTOMER
EXPERIENCE IMPROVEMENT AND
SEAMLESS OMNICHANNEL
DIGITAL LEADERS DELIVER 10 TIMES MORE CONVENIENCE
CUSTOMER EXPERIENCE
HOW TO BECOME THE 10 TIMES MORE CONVENIENCE COMPANY?
NICE INTERFACES DON’T DELIVER 10 TIMES
MORE CONVENIENCE CUSTOMER EXPERIENCE
10 TIMES REQUIRES A COMPLETE NEW SET OF
TECHNOLOGIES
(and mindset)
I HAVE TO KNOW MY CUSTOMERS BETTER
THAN THEIR FAMILIES
DIGITAL CHANNELS ARE THE CHANNELS THAT WILL HAVE MORE CONTACT
MOBILE CHANNELS ARE ALREADY THE CHANNEL WITH MORE CONTACT OR
THE ONES GROWING MORE
2ND VECTOR FOR THE DIGITAL
TRANSFORMATION:
DIGITAL CHANNELS
PRIORIZING MOBILE
CUSTOMERS SHOULD BE ABLE TO BUY AND MANAGE ALL PRODUCTS
AND SERVICES
IN ANY CHANNEL, PHISICAL AND DIGITAL
JUMPING IN BETWEEN SEAMLESSLY
JUMP AND ADAPT TO THE NEW CHANNELS
IN A GLOBAL AND DIGITAL WORLD
IN THE THE MACHINE AGE
DATA IS KEY
THIRD VECTOR FOR DIGITAL TRANSFORMATION:
DATA INTELLIGENCE IN REAL TIME
YOU CAN NOT BEND A
PHISICAL SPOON
BUT YOU CAN BEND A
DIGITAL WORLD
THINK OUT OF THE BOX
IN A DIGITAL WORLD
THE ONLY LIMITS ARE
YOUR IMAGINATION
TECHNOLOGY
CULTURE AND ORGANIZATION
BUSINESS
HOW?
62
TOP DOWN
FROM BOARD AND CS TO ALL COMPANY
ONE DIRECTION FOR THE WHOLE COMPANY
TOTAL ENGAGEMENT
DEFINE A DIGITAL TRANSFORMATION STRATEGIC PLAN
FROM AS IS TO TO BE
DEFINE THE TIME PERIOD
DEFINE THE INITIATIVES AND BUDGET NEEDED
CREATE A DIGITAL TRANSFORMATION EXECUTION PLAN
DEFINE KPIS, MEASURE IN A TRY AND LEARN, AND TRY AND FAIL PARADIGM
FROM INSIDE OUT TO OUTSIDE IN
Increase the value proposition
Partner with other companies and other sectors
Build an open ecosystem
Open products, Open technologies, Open APIs, Open innovation
Fill the gaps
REGAIN THE CONTROL
OPEN SOURCE
ENGINEERING TEAMS
FOLLOWER OR INNOVATOR?
HOW WILL BE THE WORLD AND
OUR CUSTOMERS IN 5 YEARS?
You can not stay looking whats coming
It is your choice to be disrupted
Or ride this wave and be a disruptor
“THEY CAN LIVE IN MY NEW WORLD
OR DIE IN THEIR OLD ONE”
DAENERYS TARGARYEN, GAME OF THRONES
That’s all, thanks
“Quality s not an action, it’s a habit “
Aristóteles

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Transformación Digital

  • 2. MORETHAN 500 PEOPLETRANSFORMING COMPANIES AROUNDTHEWORLD
  • 3. “Si quieres construir un barco, no empieces por buscar madera, cortar tablas o distribuir el trabajo. Inspira primero en los hombres y mujeres el anhelo por el ancho y libre mar.” Antoine de Saint-Exupéry Libertad y responsabilidad Organización sin jerarquías Y sin procedimientos
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. BBVA BBVA–Stratio Joint Venture for Corporate-Wide Digital Transformation
  • 11. WHY AND WHEN TO TRANSFORM? TWO TYPES OF NECESSITY
  • 13. Who has used some of this?
  • 14. “Add distinction and avoid extinction” Nothing is riskier than not to risk
  • 15. 15 Necessity to continue being a leader is the way to go
  • 16. Imagen Dragon What are the digital challenges faced by our business? WHY?: NEW AND CHANGING COMPETITION
  • 17. BANKING RETAILTELCO MEDIA LEISURE INDUSTRY ENERGYTRAVEL THE BIG DIGITAL DRAGONS LIKE GOOGLE, AMAZON, FACEBOOK… ARE CHALLENGING ALL SECTORS.
  • 18. BIGGEST THREAT  Big Digital companies  Fintechs  Startups  Neobanks of existing players  Traditional competitors partnering  Companies from other sectors  Others
  • 19.  Transparency, a key principe. You can not hide anything from customers  TransferWise aggressively pushing its alternative in London, UK FINTECHS AGGRESSIVENESS
  • 20. A DIGITAL AND GLOBAL WORLD
  • 21. DIGITAL IS REINVENTING HUMAN EXPERIENCE HOW PEOPLE LIVE, WORK, PLAY AND CONNECT
  • 22. WE ARE IN THE AGE OF CUSTOMERS
  • 23.  20% of your customers give you 80% of your revenue  10% of your customers give you 90% of your profit  98% of dissatisfied customers never complain, they just leave  65% of lost customers are due to negative experiences  75% of negative experiences are not related to the product  It costs 3 times more to acquire than to retain a custome  12 times more to win back a dissatisfied customer.  Over 5 years a company retains 20% of customers  5% increase in retention increase profits by 25 to 55%  A very satisfied customer will tell 3 people.  A dissatisfied customer will tell 12  A very dissatisfied customer will tell 20 CUSTOMERS ARE IN CONTROL
  • 24. THIS GAP BETWEEN DIGITAL CUSTOMERS IN THE CUSTOMER AGE AND PHISICAL COMPANIES IS THE REASON FOR DIGITAL TRANSFORMATION CUSTOMERS ARE MORE DIGITAL THAN PHYSICAL COMPANIES…. AND ADVANCE FASTER
  • 25. THE DAWN OF MACHINE AGE
  • 26. WE ARE DIGITALIZING THE WORLD
  • 29. WHERE SOME ONLY SEE NOISE
  • 30. OTHER GETS PATTERNS AND VALUE
  • 31. THINK OUT OF THE BOX WE ARE TRANSFORMING THE WORLD INTO DATA
  • 32. NOT ONLY DIGITALIZING THE WORLD, BUT WHAT IS HAPPENING AT THE WORLD AT ANY MOMENT
  • 33. WEARABLES WHAT WE ARE FEELING WHERE WHEN SENSING YOU
  • 34. WE CAN TRANSFORM THE FEELINGS OF THE CUSTOMERS, AND SELL SOMETHING APPEALING TO THE WAY THEY FEEL
  • 35. CUSTOMERS’ JOURNEY WILL HAVE INFINITE TOUCHPOINTS ANY PLACE WILL BE A TOUCHPOINT
  • 36. THE CUSTOMER AGE AND THE MACHINES AGE We are in the fusion between people and machines in ways we are not able to imagine yet
  • 38. THE FUTURE IS ARTIFICIAL INTELIGENCE
  • 39. Taxi drivers, uber drivers? Not needed with Selfdriving cars
  • 40. Pizza delivery people? Robots delivery
  • 42. More than 500 million Jobs will be lost And other 100s of millions will be created
  • 43. Drones cost per unit: 3D printing cost averages for equivalent functionality Industrial robots: Costs for DNA sequencing: Solar power cost per kWh: Sensors: Cost of smartphone with similar specifications: - 2007: $100k - 2013: $700 - 2007: $40k - 2014: $100 - 2007: $550k - 2014: $20k - 2000: $2.7bn - 2007: $10mn - 2014: $1k - 1984: $30 - 2014: $0.16 - 2009: $30k - 2014: $80 - 2007: $499 - 2015: $10 TECHNOLOGY EVOLUTION IS EXPONENTIAL TECHNOLOGY COST IS ALSO DECREASING EXPONENTIALLY In the next 20 years the technology advancement will be equal to all previous technology advancement until now
  • 44. “What does mean exponentially?”
  • 45. The company that moves more people? THE NEW LEADERS HAVE CERO PHISICAL ASSETS, ONLY DIGITAL ASSETS (Cars = 0) (Hotels = 0) (Music Studios = 0) (Movie Studios = 0) The company that reserves more rooms? The company that sells more music? The company that sells more movies? SOFTWARE IS EATING THE WORLD THE WORLD HAS CHANGED THE WORLD IS CHANGING
  • 46. FROM NECESSITY COMES THE DECISION OF DIGITAL TRANSFORMATION AND ONCE YOU HAVE MADE THE DECISION YOU WILL NEED THE WILL AND PERSEVERANCE TO EXECUTE IN A TRY-AND-LEARN APPROACH
  • 47. WHAT? WHAT SHOULD I BECOME TO BE A DIGITAL COMPANY?
  • 48. WHAT TO BECOME IS A LOGICAL CONSEQUENCE OF THE DIGITAL AND GLOBAL WORLD THE CUSTOMER AGE THE BEGINNING OF THE MACHINE AGE
  • 49. 1st VECTOR FOR DIGITAL TRANSFORMATION: CUSTOMER CENTRICITY OBSESSION Customers are the new bosses, adapt to them as fast as they required, or you will loose your competitive advantage to become a laggard.
  • 50. CUSTOMER CENTRIC OBSESION REQUIRES CONTINUE CUSTOMER EXPERIENCE IMPROVEMENT AND SEAMLESS OMNICHANNEL
  • 51. DIGITAL LEADERS DELIVER 10 TIMES MORE CONVENIENCE CUSTOMER EXPERIENCE HOW TO BECOME THE 10 TIMES MORE CONVENIENCE COMPANY?
  • 52. NICE INTERFACES DON’T DELIVER 10 TIMES MORE CONVENIENCE CUSTOMER EXPERIENCE 10 TIMES REQUIRES A COMPLETE NEW SET OF TECHNOLOGIES (and mindset)
  • 53. I HAVE TO KNOW MY CUSTOMERS BETTER THAN THEIR FAMILIES
  • 54. DIGITAL CHANNELS ARE THE CHANNELS THAT WILL HAVE MORE CONTACT MOBILE CHANNELS ARE ALREADY THE CHANNEL WITH MORE CONTACT OR THE ONES GROWING MORE 2ND VECTOR FOR THE DIGITAL TRANSFORMATION: DIGITAL CHANNELS PRIORIZING MOBILE
  • 55. CUSTOMERS SHOULD BE ABLE TO BUY AND MANAGE ALL PRODUCTS AND SERVICES IN ANY CHANNEL, PHISICAL AND DIGITAL JUMPING IN BETWEEN SEAMLESSLY
  • 56. JUMP AND ADAPT TO THE NEW CHANNELS
  • 57. IN A GLOBAL AND DIGITAL WORLD IN THE THE MACHINE AGE DATA IS KEY THIRD VECTOR FOR DIGITAL TRANSFORMATION: DATA INTELLIGENCE IN REAL TIME
  • 58.
  • 59. YOU CAN NOT BEND A PHISICAL SPOON BUT YOU CAN BEND A DIGITAL WORLD
  • 60. THINK OUT OF THE BOX IN A DIGITAL WORLD THE ONLY LIMITS ARE YOUR IMAGINATION
  • 62. 62 TOP DOWN FROM BOARD AND CS TO ALL COMPANY ONE DIRECTION FOR THE WHOLE COMPANY TOTAL ENGAGEMENT
  • 63. DEFINE A DIGITAL TRANSFORMATION STRATEGIC PLAN FROM AS IS TO TO BE DEFINE THE TIME PERIOD DEFINE THE INITIATIVES AND BUDGET NEEDED
  • 64. CREATE A DIGITAL TRANSFORMATION EXECUTION PLAN DEFINE KPIS, MEASURE IN A TRY AND LEARN, AND TRY AND FAIL PARADIGM
  • 65. FROM INSIDE OUT TO OUTSIDE IN
  • 66. Increase the value proposition
  • 67. Partner with other companies and other sectors
  • 68. Build an open ecosystem Open products, Open technologies, Open APIs, Open innovation Fill the gaps
  • 69. REGAIN THE CONTROL OPEN SOURCE ENGINEERING TEAMS
  • 71. HOW WILL BE THE WORLD AND OUR CUSTOMERS IN 5 YEARS?
  • 72. You can not stay looking whats coming
  • 73. It is your choice to be disrupted
  • 74. Or ride this wave and be a disruptor
  • 75. “THEY CAN LIVE IN MY NEW WORLD OR DIE IN THEIR OLD ONE” DAENERYS TARGARYEN, GAME OF THRONES
  • 76. That’s all, thanks “Quality s not an action, it’s a habit “ Aristóteles