Whether you are changing your business model, digital communications road map, or refreshing your website – this presentation will talk you through some practical insights and actions you can take to get your business ready for change.
The presentation looks at organisational culture, agile thinking, resourcing, and workflows critical for success.
It provides often hidden insights gathered from our team, clients and the digital industry on ways to improve strategy and tactical execution of critical digital transformation.
Please feel free to get in touch, if you have any question regarding this presentation or want to find out more about how you can get your business ready for digital change.
3. Mastering digital change webinar series
Now…
TOM VOIROL MAURICE QUEK
GLOBAL HEAD OF
USER EXPERIENCE
DIGITAL STRATEGIST
PRESENTER
TOM@READINGROOM.COM
FACILITATOR
MAURICE.QUEK@READINGROOM.COM
DIGITAL
READINESS
TOM VOIROL
7. The adoption of SMACIT
(social, mobile, analytics,
cloud, Internet of Things)
technologies
What do we mean by digital?
Digital?
Source: http://cisr.mit.edu/research/current-projects/designing-digital-orgs/
16. Ultimately, digital shouldn’t
be something you do
in addition to
doing business, it should
be how you do business
Reading Room’s take on digital
Digital?
18. Digital leaders outperforming market
Readiness?
Technology-enabledinitiativesin:
•CustomerEngagement
•InternalOperations
Leadership capabilities including:
• Vision
• Governance, engagement
Source: Cap Gemini: The Digital Advantage – How digital leaders outperform their peers in every industry
19. Digital leaders outperforming market
Revenue Generation Profitability
Readiness?
Source: Cap Gemini: The Digital Advantage – How digital leaders outperform their peers in every industry
21. The pillars of digital readiness
Digital Business Digital Market Digital Resources
Processes
Structure
Leadership
Strategy
Competition
Partners
Customers
Products
Technology
Content
Money
People
Digital Native Organisation
22. Digital business
The pillars of digital readiness
Digital Business
Processes
Structure
Leadership
Strategy
Digital Market Digital Resources
Strategy
Competition
Partners
Customers
Products
Technology
Content
Money
People
Digital Native Organisation
27. Don’t worry about developing a
strategy for social, mobile, cloud, or
any other technology. Develop a
strategy for succeeding in the
digital economy—a purpose that
leverages your unique capabilities
and responds to market
opportunities. Then grab every
technology that takes you there.
Digital business / Strategy
Jeanne W. Ross,
Director of the Center for Information Systems Research (CISR)
MIT Sloan School of Management
29. Provide outstanding service
every day, one customer at a
time.
We work hard to make
decisions in the best interest
of our customers and those
serving them.
Nordstrom’s mission
Digital business / Strategy
30. Nordstrom 2004-2014
• New POS system allowing salespeople to track individual
customer requests and needs
• Launch of an innovation lab, creation of Nordstrom apps
• Introduction of mobile checkout
• Acquisition of cloud-based men’s personalised clothing service
• Their employees are now armed with information about what a
customer has bought in the past, what they like, an what they
shopped for but could not find
• Mobile checkout makes it easier for any employee to see a
customer through the payment process and thank them, rather
than sending them to a cash register
Digital business / Strategy
31. Nordstrom hasn’t used
SMACIT to develop a
digital business model —
they have further digitized
their business model, and
pursued their purpose,
using SMACIT
Digital supporting strategy & mission
Digital business / Strategy
33. Leadership in digital
True digital leaders make use of multiple digital avenues to
accumulate, filter, and disseminate information
A digital-permeated business strategy must be carried by the C-
suite
Only a digitally-savvy C-suite has the credibility to implement digital
in a strategic way. Consider training / workshopping at the top level
Leadership does not just happen at the top. Consider structures that
support leadership where it occurs
Top management can lead the brand from the front in digital
Digital business / Leadership
35. Case study
Digital business / Leadership
• Has 474,000 followers on
LinkedIn
• Runs a 456,000-member
LinkedIn group for
entrepreneurs
• Runs the OnStartups
Facebook group with 154,000
members
• Has 253,000 followers on
Twitter
36. It’s not its size, it’s how you use it
• During a recent hiring push at HubSpot, Shah tweeted about the
company’s need for talented engineers and quickly received
referrals for hundreds of candidates, several of whom he hired
• While wrestling with an error-prone program for a new product,
he asked his online followers for help. Within hours he received
many suggestions, and one person provided instructions for
debugging the program
Digital business / Leadership
37. Digital networking by leaders
Few leaders understand how they can use their networks to gather
information and wield influence. Focus on:
Reputation
• Provide high quality, immediately applicable content that helps
your audiences be better in their job
Specialisation
• Be known for something specific. In Shah’s case technology and
entrepreneurship. Focus sharply on your topics
Network position
• Become a bridge between otherwise unconnected groups
Digital business / Leadership
39. Structure is #1 obstacle to digital adoption
Digital business / Structure
Source: The digital tipping point: McKinsey Global Survey results June 2014
40. Learn from start-ups
Focus on tasks, rather than roles or positions in a hierarchy
Enable agility by eliminating anything that gets in the way of value
creation
Use small, multi-disciplinary teams in a fractal or nested structure
Emphasise autonomy and responsibility among your workers
Build a customer-centric structure
Hierarchy is only one aspect. Consider the networks, communities,
autonomous teams, and skunkworks that digital technologies
enable
Digital business / Structure
43. First Direct
Phone and internet banking only
Brand is built on top-notch customer service
This is why people switch to them
Contact centre restructure:
• No IVR system
• Call leads directly to human 24/7
• Removed knowledge silos
• Trained up all staff in most topics
• Empowered CC staff with digital tools and information
Digital business / Structure
47. Processes
Develop the capacity to respond to change rather than prematurely
optimise existing operations
Re-engineer processes around digital interactions, both internally
and with clients and suppliers
Adopt agile methodologies for business and project management:
• Build change right into your processes
• Have processes in place to sustainably roll out process changes
after trials
• Empower staff to recognise deficiencies and improve them
Digital business / Processes
48. Using agile methods for process redesign
Adaptability
• Iterative approach, analyse KPIs frequently, adapt as required
Teamwork
• Cross-functional teams, with unique and applicable skill sets
Focus
• Work in short sprints with rollout after each round
• Learn from each round and apply learnings
Communication
• Emphasise open and efficient communication, track progress on
prominently displayed charts
Digital business / Processes
50. Codelco
Digital Business / Processes
Largest copper producer in the world, 18,000 staff
Chilean state owned
Took strategic look at future of mining
Created Codelco Digital in 2003
Both operational and strategic objectives: drive initiatives in mining
automation and support the CEO in developing, evolving and
communicating a digital vision
Today, four mines in Chile are operated automatically, information is
shared in real time, etc.
Involved culture change, employee engagement and new skills
Process innovation partially driven by staff
51. “Our company is very
conservative, so changing the
culture is a key challenge.
We created internal
innovation awards to promote
new ideas and encourage our
workers to innovate.
Digital Business / Processes
Marco Antonio Orellana Silva
CIO Codelco-Chile
52. Digital market
The pillars of digital readiness
Digital Business
Processes
Structure
Leadership
Strategy
Digital Market Digital Resources
Strategy
Competition
Partners
Customers
Products
Technology
Content
Money
People
Digital Native Organisation
54. Products and services
Digital market / Products
Are your products and services digitally enabled?
How will your customers want to use digital means to interact with
them?
How do you need to redesign your services to match your
customers’ working practices or lifestyle?
56. Hema maps
Digital market / Products
Printed maps are a dying market
Competition from Google Maps and other free services
“We are not in the business of printing and selling maps, we’re in
the business of helping 4WDers and nature lovers get inspired, plan
and safely undertake trips off the beaten track”
Developed numerous digital products, including specialised mobile
apps, digital map data and off-road touchscreen navigation devices
60. We get wrong what customers want
Digital market / Customers
61. Task #1: Understand your customers
Digital market / Customers
The best approach is not to ask them what they want
The best approach is to understand them completely
• Their goals
• Their preferences
• Their natural behaviour in certain situations
• How all these relate to what you are trying to do for them
Design digital products and services to solve these problems
63. Royal Caribbean
Oasis class: Largest cruise ships in the world, 5,400 passengers
Royal Caribbean thought about every aspect of the ship and its
operations from a guest’s perspective
Key findings:
• People have zero tolerance for queues
• Offshore excursions shouldn’t feel like being herded
• Getting around in a ship this huge and finding restaurants, shows
etc. can be a chore
• People like using their own devices
Digital market / Customers
67. Partners and suppliers
Digital market / Partners
Investigate the human and technical interfaces with your partners
and suppliers
Find time sinks, sources of mistakes, frustrations for both your staff
and your partners’
Find digital solutions to integrate at the boundaries
71. Competition
Monitor what your competitors are doing in digital
Don’t remain fixated on chasing competitors – consider comparators
too
Where is the market as a whole heading?
Digital market / Competition
73. Digital resources
The pillars of digital readiness
Digital Business
Processes
Structure
Leadership
Strategy
Digital Market Digital Resources
Strategy
Competition
Partners
Customers
Products
Technology
Content
Money
People
Digital Native Organisation
75. People
Digital literacy
• Research, analyse and validate information from digital
resources
• Communicate, collaborate and form communities over a distance
• Synthesise existing technologies and tools into new solutions
Understand the difference between digital natives and digital
immigrants
Develop training and mentorship, both formal and informal
Culture that rewards innovation
Digital resources / People
79. Money
How are you investing in digital initiatives?
Have you set KPIs so you can calculate ROI?
Does your budget recognise digital transformation?
How are you raising funds for improvement initiatives?
Digital resources / Money
80. Case study – Crowdfunding
Digital resources / Money
82. Content
You are a media owner
You are already sitting on rivers of content (or at least the ideas for
them)
• Your staff’s experiences and ideas
• Customer requests and issues
• Industry developments
The page is dead, long live the chunk
Digital resources / Content
83. The real question […] isn’t
“How loyal can we compel,
seduce, or trick our
customers into being?” It’s:
“How loyal are we to our
customers? Do we truly
care about them?”
Digital resources / Content
Umair Haque
Director, Havas Media Labs
90. Technology
Assess current systems for how well they support your digital
readiness
Remember agile: Don’t try to buy the one massive system to solve
all your problems
Tactical software solutions (e.g. WCMS) are not inherently worse in
your digital strategy than enterprise-level, strategic applications
Work with a partner who is not married to a single vendor / platform
/ technology
Digital resources / Technology
93. SBB staff digital connectivity rollout
By end of 2014, every employee will:
• be reachable wherever they are
• receive all information relevant to their job
• consume multi-media content wherever they are
• have personal access to relevant work applications
• have one device they can use for work and privately
Digital resources / Technology
Rather than making queues more endurable, Royal Caribbean sought to eliminate them. How? By implementing different combinations of digital and physical resources across the twenty-six processes where passengers could potentially experience a queue.
GPS devices are made available for passengers to self-guide themselves in onshore excursions
The company used shape recognition cameras to determine restaurant capacity and made the information available to passengers within their natural behaviour flows. Digital terminals or passenger’s own devices on the >900 WiFi access points on the ship provide guidance.
Largest privately owned construction company in UK
15,000 staff - $7 billion revenue
Suppliers and partners develop digital catalogues that allow LOR engineers to incorporate products with their actual dimensions and specifications into planning and order directly.
Leading electronics distributor. Saw its competitors being whittled away by the internet providing direct-to-customer sales channels.
Learning from the competition’s mistakes early, Marshall continued to sell electronics components, but invested heavily in digital technology to transform from the traditional sales-driven strategy to a customer-focused, service-driven strategy. In addition to the investment in digital systems and practices, Marshall completely restructured its the compensation and incentive system and overhauled its hiring practices.
Today, they thrive on consulting and solutions design.
Second-largest mobile telecommunications provider in the United Kingdom
Ann Pickering, Group HR director, asked one of their interns in HR what she thought of her induction.
She said it was a bit paper-driven, a bit ‘chalk-and-talk’, a bit PowerPoint.
Pickering said “Well, go away and do something about it.”
The intern, who had a background in computer science, created an app so good that Pickering rolled it out across the entire company. The HR director said, and I quote, “It’s outstanding. But what was so interesting is that it wasn’t a big deal to her. She blew me away but she was quite surprised at my reaction.”
Net-A-Porter.com is a billion dollar revenue high-fashion online retailer.
Net-A-Porter.com is a billion dollar revenue high-fashion online retailer.