Digital Readiness - Get your business ready for digital change
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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.
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Digital Readiness - Get your business ready for digital change
- 1. Digital readiness Tom Voirol Global Head of User Experience
- 2. Mastering digital change webinar series Previously… DIGITAL PSYCHOLOGY DEBORAH KO
- 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
- 4. Contents Digital readiness? The pillars of digital readiness • Business • Market • Resources Making it sustainable Questions
- 6. What do we mean by digital? Digital?
- 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/
- 8. a cost centre Digital is not… Digital?
- 9. something the IT department does Digital is not… Digital?
- 10. a tactical channel in the marketing mix Digital is not… Digital?
- 11. all about the customer experience Digital is not… Digital?
- 12. just relevant to technology companies Digital is not… Digital?
- 13. just relevant to B2C companies Digital is not… Digital?
- 14. just relevant to companies Digital is not… Digital?
- 15. a strategic competency Digital is… Digital?
- 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?
- 17. Readiness?
- 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
- 20. Digital face / digital body Readiness?
- 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
- 23. Strategy Digital business Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 24. Business strategy Digital business / Strategy
- 25. Digital strategy Digital business / Strategy
- 26. Digital-permeated business strategy Digital business / Strategy
- 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
- 28. Case study Digital business / Strategy
- 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
- 32. Leadership Digital business Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 34. Case study 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
- 38. Structure Digital business Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 41. Hierarchy and network Digital business / Structure
- 42. Case study 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
- 44. First Direct Digital business / Structure
- 45. Processes Digital business Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 46. Adaptability Digital business / Processes Leon C Megginson
- 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
- 49. Case study 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
- 53. Products Digital market 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?
- 55. Case study Digital market / Products
- 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
- 57. Going digital Digital market / Products
- 58. DIY maps Digital market / Products
- 59. Customers Digital market Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 62. Case study Digital market / Customers
- 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
- 64. Partners Digital market Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 65. Partners and suppliers Digital market / Partners
- 66. Partners and suppliers Digital market / Partners
- 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
- 68. Case study Digital market / Partners
- 69. Laing O’Rourke – Digital engineering Digital market / Partners
- 70. Competition Digital market Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 72. Case study 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
- 74. People Digital resources 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
- 76. Case study Digital resources / People
- 77. Case study Digital resources / People
- 78. Money Digital resources Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 81. Content Digital resources Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 84. Case study Digital resources / Content
- 85. Net-A-Porter Digital resources / Content
- 86. High-quality visual content Digital resources / Content
- 87. Increasing move from retail to publishing Digital resources / Content
- 88. Turn big data into content for consumers Digital resources / Content
- 89. Technology Digital resources Digital Business Processes Structure Leadership Strategy Digital Market Digital Resources Strategy Competition Partners Customers Products Technology Content Money People Digital Native Organisation
- 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
- 91. Case study Digital resources / Technology
- 92. SBB staff digital equipment 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
- 95. Keep it agile Making it sustainable
- 96. Kill the 5-year plan Making it sustainable
- 97. Produce concrete outcomes, not paper Making it sustainable
- 98. Learn and iterate Making it sustainable
Notes de l'éditeur
- What do we mean by digital?
- Implies Web
- Relevant to B2B, governments, not for profits…
- Dharmesh Shah, Founder and CTO of HubSpot, inbound marketing software company, issuing IPO this year, valued at ~$500M
- Dharmesh Shah, Founder and CTO of HubSpot, inbound marketing software company, issuing IPO this year, valued at ~$500M
- http://www.mckinsey.com/insights/business_technology/the_digital_tipping_point_mckinsey_global_survey_results
- UK direct banking arm of HSBC
- 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.
- Keep it agile