DMI 2014 Insights into Digital Transformation

3
About DMI 2014
• Independent research agency to collect the
views of over 100 business leaders from
across multiple sectors including retail,
media, health, financial services, telecoms
and public sector organisations
• Consumer opinion included to provide a
contrast – online survey of over 200
consumers
• Transform conducted in-depth, face-to-face
interviews with the digital leadership of 40
organisations
• Opinion pieces from five digital thought
leaders

DMI over the years
From the coming of age of multi-channel back in 2010, DMI through the years has evolved in line with
the customer trajectory and their adoption of technology and channels.

We’re all customer-centred now
6
• Digital is at the heart of citizen and customer
engagement
• Also a strategic focus for channel shift and
commercial growth
• In DMI 2014 we’re seeing significant customer
experience developments:
– 50% of organisations reported using four or
more UX techniques
– 75% of organisations now have customer
representation at board level

7
Risk another silo
• It’s not embedded in the end-to-end
experience or more importantly, the
psyche of the project, programme or
organisation
• Centres of excellence put customers
on the critical path • BUT…

9
The digital ecosystem
• As digital becomes more integral to the
underlying strategy, the component parts of
digital maturity must be treated as an
ecosystem, not a hierarchy.
• Preventing outcomes such as:
– Projects failing because of a focus on
technology and channel without understanding
business and customer requirements fully
– Operationalised customer initiatives –
communication of a digital initiative by
laminated sheet as employees have to leave
smartphones in lockers during working hours
• When ‘digital strategy’ simply becomes
‘strategy’ interdependencies will be critical

10
DMI 2014 – headline stats
Technology
Channels
Customers
Strategy
Culture

11
Technology
• We have seen a move towards agile delivery
methodologies and open source development
• There is a practical and attitudinal shift
supporting innovation techniques as well as the
build itself
• In 2012, 87% of organisations had no formal
process for innovation
• This year 67% are reporting that they use
hackathons, innovation labs or open APIs to
drive digital innovation
Which of these innovation tools are used in your organisation?

12
Channels
• Omnichannel (multi-channel done properly) is
ambitious
• Many organisations aren’t set up strategically,
structurally or culturally to deliver it
effectively
• Channel integration remains a priority:
– 19% report full integration of channels
– 32% state they have front-end integration
only
How effective are your channels in achieving the objectives you
have for them?

Channels
What are the key gains of of a stronger ability
to deliver transactions and services online? • We asked “What are the key gains of a stronger ability to
deliver transactions and services online?”
• 32% of organisations stated that they see digital
transactions as a primary driver for cost savings
• 35% want digital services to drive an enhanced customer
experience
• There continues to be a tension around objectives
• Setting the correct KPIs and defining the role of individual
channels is critical to the success of digital

Customer
Which tools and techniques do you regularly use to
understand your customers? • A focus on the customer within digital and the
emergence of customer experience as a
discipline is probably the most significant
organisational shift since we began DMI
• In 2011, 59% of private and 80% of public sector
organisations reported little or no understanding
of the end-to-end customer experience
• In 2014, 66% report customer ownership at
board level and there are a variety of tools and
techniques being used regularly in organisations
today

Customer
Which metrics do you use to measure customer
experience within your organisation?
• Another step change has been the move towards
measuring more intangible benefits, alongside the
commercial and transaction based KPIs that we know
and love.
• 53% of respondents now measure customer happiness
as a way of assessing how well digital channels are
performing
• 66% use a customer satisfaction index
• Organisations are recognising the importance of
customer experience and customer lifetime value,
rather than relying solely on transactional reporting

Strategy
The design and sharing of digital strategy… • 65% now have a digital
Does your organisation have a digital
vision and strategy?
How well is this shared and owned
across your organisation?
strategy in place but with
35% responding either ‘no’ or
‘don’t know’ there are still a
large number running from
roadmaps rather than
outcomes
• Also only 8% reported that
the strategy is ‘very well’
known about across the
organisation
• Digital must be under the
umbrella of the wider
organisation not stand alone

Culture
• Culture is the glue that holds everything
together but it’s often the hardest component to
define
• DMI 2014 has captured a range of developments
around digital culture including:
– Opening up code
– Empowering front line staff to own and
manage customer resolutions
• When it comes to decision making although 59%
of decisions are still set by senior management,
when you back this up against 65% of
organisations having a digital strategy, this
seems less HiPPO in nature
• Also test and learn innovation is on the rise but
the ‘fail fast’ culture is yet to be fully embraced
Which of these describes your organisation’s digital decision
making?

What does digitally mature look like?
18
• It’s an ecosystem rather than a hierarchy
• All components are interdependent
• You can download the full report from our
website: www.transformuk.com/dmi2014
• Share your views on twitter (#DMI2014) and on
LinkedIn (DMI 2014 group)

Thank you
19
Transform UK
60 Great Portland Street
London
W1W 7RT
Tel: 020 3128 8300
Email: enquiries@transformuk.com
www.TransformUK.com
@TransformUK
Transform DMI 2014

The Autonomous
Customer:
5 Trends for the
Future.
Dr Nicola J. Millard
Head of Customer Insight & Futures
BT
nicola.millard@bt.com
@DocNicola
BT Contact. Relationships that grow

Trend 1: Easy is the New Loyalty.
44%
Say that loyalty to
companies is a thing
of the past (50% in
the UK).
BT Contact. Relationships that grow 22
Copyright- BT Global Services, 2014
5%
Felt they had got good
value for money when
they had a difficult
experience
32%
Of shoppers regard
‘easy’ as a top 5
factor when it comes
to shopping.

“Net Easy” Does It.
Making it Easy is the missing link between operational
quality and loyalty:
Incremental value
Advocacy
Customer experience
Operational performance
Churn
reduction
NPS
Net Easy
OCR &
RFT
Why measure Easy?
ü True voice of the customer
ü Drives advocacy, VFM & loyalty
ü Highly actionable feedback
ü Applicable in all channels
ü Engages and resonates with staff
ü Low effort also = lower cost
Customers finding it easy are
40% less likely to churn
Copyright- BT Global Services, 2014

Trend 2: Omnichannel is the New Normal.
say organisations make it easy to
switch between 1:2 17% different channels only
BT Contact. Relationships that grow Copyright BT Global Services, 2014
24
say they constantly change the
way they deal with organisations

Trend 3: Webchat is growing faster than Social Media.
9 in 10 consumers
want support while online
89%
Want my queries
answered by a person
whilst shopping online
88%
Of advisors rated
Webchat as good or
very good
68%
Would like to have
webchat offered whilst
online
82%
Of customers rated
Webchat as good or
very good
26%
Of customers use
webchat as a
preferred contact
channel currently
15%
Increase in
productivity compared
to phone
Copyright BT Global Services, 2014

Trend 4: Smartphones Fundamentally Change Behaviours
16-34 year olds
driving smartphone commerce

Trend 5: The Contact Centre Model Will Change.
Employees need help to deal with today’s consumer
Primary function 2020
Agent skills 2020

Contact Centre or Relationship Hub?
Voice
Webchat
VoIP
SMS / MMS
E-mail
‘Call me’
Video
Social Media
Home Workers
Branch Offices
Remote Workers
Mobile Workers
Contact Centres
HQ

Thank You!
Dr Nicola J. Millard
Head of Customer Insight & Futures
BT
nicola.millard@bt.com
Twitter: @DocNicola
BT Let’s Talk Blog:
http://letstalk.globalservices.bt.com/en/
author/nicolamillard/
BT Contact. Relationships that grow

Kathy Settle
Government Digital Service

Kathy Settle
Director, Digital Policy and
Departmental Engagement
Government Digital Service#

Digital by Default - 2 Years On
What has the programme delivered
to date?
What have we learnt?
What’s next?#
Kathy Settle# GDS#

Transforming government
services and information
provision#
Kathy Settle# GDS#

www.gov.uk#
Kathy Settle# GDS#

https://www.gov.uk/performance/site-activity#
Kathy Settle# GDS# 37

GOV.UK Transition#
#
By December 2014, 312
sites will have moved to
GOV.UK#
#
1,829 sites closed in total#
Kathy Settle# GDS#

Digital Transformation
programme#
Kathy Settle# GDS#

Create digital services
that are so good that all
those who can use them
will choose to do so#
Kathy Settle# GDS#

whilst those who can’t are
not excluded#
Kathy Settle# GDS#

Working with 8 departments
– together they cover 95% of
government transactions#
Kathy Settle# GDS#

Building capability to sustain
and grow ‘digital by default’
services#
Kathy Settle# GDS#

Transforming Services!
!
From this!
www.gov.uk/lasting-power-of-attorney#

To this!
www.gov.uk/lasting-power-of-attorney#

www.gov.uk/carers-allowance#
Kath Settle# GDS# 48

168 questions removed
from the process (30%
reduction)#

www.gov.uk/transformation#
Kathy Settle# GDS#

We want to ensure that
take-up rates of
government services
reflects the number of
adults who are online and
able to use digital
services….#
Kathy Settle# GDS#

…but we also need to
support those who can’t
use government services
independently#
Kathy Settle# GDS#

Whether it’s over the
phone…#
#
Kathy Settle# GDS#

or face by face#
#
Kathy Settle# GDS#

www.gov.uk/government/publications/
government-approach-to-assisted-digital#
Kathy Settle# GDS#

87% (44.6m) adults have
access to the internet#
#
76% (34m adults) use the
internet every day#
#
11m adults do not have
basic digital skills#
Kathy Settle# GDS#

We are collaborating with
public, private and
voluntary sector partners
to help people and
business go online#
www.gov.uk/government/publications/government-digital-inclusion-
strategy/uk-digital-inclusion-charter#
Kathy Settle# GDS#

We want to reduce the
number of people who are
offline by 25% (2.7m
people) by 2016#
Kathy Settle# GDS#

And continue to do this
every 2 years#
Kathy Settle# GDS#

So that, by 2020,
everyone who can be
digitally capable will be#
www.gov.uk/government/publications/government-digital-inclusion-
strategy/government-digital-inclusion-strategy#
Kathy Settle# GDS#

What have we learnt?#
Kathy Settle# GDS#

Transforming organisations
is critical…#
Kathy Settle# GDS#

Transforming organisations
is critical…and difficult!#
Kathy Settle# GDS#

Get senior leadership and
(political) backing in place
at the outset#
Kathy Settle# GDS#

Ensure you have the right
people with the right skills#
www.gov.uk/service-manual/the-team#
Kathy Settle# GDS#

Multi-disciplinary
teams!
Kathy Settle# GDS#

Recruiting new people,
retraining existing people#
Kathy Settle# GDS#

Recruitment hub#
Kathy Settle# GDS#

End to end transformation
of government services#
Kathy Settle# GDS#

From an old way of doing
things…#
Kathy Settle# GDS#

…to a new one#
Kathy Settle# GDS#

Help people do it right#
Kathy Settle# GDS#

GDS#
www.gov.uk/service-manual#

Check up front that
people intend to do the
right thing – spend
controls#
Kathy Settle# GDS#

www.gov.uk/government/publications/cabinet-office-controls/
cabinet-office-controls-guidance-version-32#
Kathy Settle# GDS#

And then check at regular
intervals that they are still
doing the right thing –
service standard
assessments#
Kathy Settle# GDS#

GDS#
www.gov.uk/service-manual/digital-by-default#

Look for opportunities to
do things once….where it
makes sense#
Kathy Settle# GDS#

New platforms#
Kathy Settle# GDS#

Identity Assurance#
Kathy Settle# GDS#

www.gov.uk/government/publications/introducing-govuk-verify#
Kathy Settle# GDS#

Sort procurement and get
access to the right
suppliers#
Kathy Settle# GDS#

New frameworks#
Kathy Settle# GDS#

New frameworks#
www.gov.uk/digital-marketplace#
Kathy Settle# GDS#

Keep control
of your data#
Kathy Settle# GDS#

www.gov.uk/performance#
Kathy Settle# GDS#

Renew a patent#
www.gov.uk/performance/renew-patent#
Kathy Settle# GDS#

Governance#
Kathy Settle# GDS#

Governance#
www.gov.uk/service-manual/governance/governance-principles#
Kathy Settle# GDS#

Focused on
user needs
Kathy Settle# GDS#

User research lab!
Kathy Settle# GDS#

For more information about
what we’ve done:#
#
www.gov.uk/government/collections/
government-digital-strategy-reports-and-
research#
#
www.gds.blog.gov.uk#
Kathy Settle# GDS#

What’s next?#
Kathy Settle# GDS#

Kathy Settle
Director, Digital Policy and
Departmental Engagement
Government Digital Service
kathy.settle@digital.cabinet-office.gov.uk#

Professor Moira Clark
Henley Business School

CX CX
excellence:
excellence: achieving
and
achieving maintaining
service
and
maintaining service excellence for
today’s consumers.
Professor
Moira
Clark
Maximising
Value
through
Rela:onships
www.hccmsite.co.uk
excellence
for
today’s
consumers.
Professor
Moira
Clark

103
What makes a ‘perfect’ customer experience?
• Experience
orientated

Memories are the currency of
customer experience

The Customer Experience Model
Emotional
Access
Value for
Time
Application of
Knowledge
Atmosphere
Caring
– Attitude –
Caring
– Procedures, Processes –
Communication
Sector
Differences
Individual
*
Experience Outcomes
Peer-to-Peer
Relationship
Reliability
Safety
Social Impact
Supplier
Condition
Value for
Money
Variety /
Choice
Service
Product
*
*
*
* Emphasis on attitude

Knowledge – From Brain to Heart
Two
types
Articulate knowledge
We can write it down
• BA (hons), MBAs
• Accountant, Engineer
The Brain
• Physical need
• Practical
• Comfort
• Sensible
• Common Sense
• Rational
Tacit knowledge
• Silent
• Implicit
• Can’t write it down
Heart
• Experience
• Emotions
• Esteem
• Aesthetics
• Impulse
Tacit knowledge - the next generation of competitive advantage

Important CE Factors in B2B and B2C
B2B B2C
1. Extent of Personal Contact
2. Flexibility
3. Implicit Understanding of Customer
Needs
4. Pro-activity in Eliciting Customer’s
Objectives
5. Pro-activity in Checking that Everything
is OK
6. Promise Fulfilment
7. Knowledge
1. Helpfulness
2. Value for Time
3. Customer Recognition
4. Promise Fulfilment
5. Problem Solving
6. Personalisation
7. Competence
8. Accessibility

Important CE Factors in B2B
1. Extent
of
Personal
Contact
The
extent
to
which
the
company
deals
with
the
customer
through
personal
contact
methods
2. Flexibility
How
willing
and
able
are
the
company
to
modify
their
offering
in
response
to
the
customer’s
specific
needs
or
changing
requirements?
3. Implicit
Understanding
of
Customer
Needs
Does
the
company
understand
the
context
of
the
customer’s
order?
Do
they
use
their
prior
knowledge
of
the
customer
and
their
business
to
serve
them
beJer?

Important CE Factors in B2C
1. Helpfulness
Are they really prepared to help me – where nothing is too much trouble for
their staff?
2. Value for Time
Do they respect and make efficient use of my time – by shortening queues
and delivering what they provide efficiently?
3. Customer Recognition
When I contact them do they recognise and acknowledge me as an
individual?

1.
You
need
to
develop
good
customer
insight

SemioCcs
Ethnography
Customer insight
Use the full toolbox…………
etc
• Get
into
the
mind
of
the
customer!
• Make
it
easy
to
be
a
customer

The
Great
Recession
2008-‐2009
2009:
Hyundai
Assurance:
If
you
lose
your
job
or
income
within
a
year
of
buying
the
car,
you
can
return
it
with
no
penalty
to
your
credit
ra:ng.
Industry
sales
declined
37%
but
Hyundai
sales
nearly
doubled
and
sold
more
than
Chrysler
who
had
4X
more
dealerships

Customer insight
Use
customer
feedback
from
customers
to
improve
the
customer
experience
• Surveys
and
monitoring
online
and
offline
behaviour

Rant & Rave – Active - 66099

Real-time customer
feedback
Customers send text messages
about their experience.

A picture paints a
thousand words…
Customers may also choose to send you
images that show you their experience.

2.
Put
the
user
first!
Design
around
the
needs
of
the
user
and
not
the
needs
of
the
company
Usability
beats
persuasion
every
:me
We
are
differen:a:ng
parity
products
STOP
making
parity
products

Metro Bank Promise
ü Surprise
and
delight
every
customer
ü Deliver
unlimited
coverage
–
online
and
7
days
a
week
ü No
stupid
bank
rules
ü Sa:sfac:on
guarantee

Achieving customer centricity
4.
No
innova:on
un:l
everything
works
Adding
more
bells
and
whistles
doesn’t
help!

5.
Customer
centricity
must
be
part
of
your
company
values
This
makes
a
differen:ated
customer
experience!
John
Lewis
Principles
• The
Partnership’s
ul:mate
purpose
is
the
happiness
of
all
its
members,
through
their
worthwhile
and
sa:sfying
employment
in
a
successful
business.
• The
Partnership
aims
to
deal
honestly
with
its
customers
and
secure
their
loyalty
and
trust
by
providing
outstanding
choice,
value
and
service.

123
Service culture for selling partners
• Create
an
environment
in
which
people
can
be
themselves
• Making
the
day
customer,
not
task,
focused
• Intui:on
• Taking
risks
• Fun
for
customers
AND
Partners!
Variety
is
NOT
the
spice
of
life
Consistency
creates
trust!

6.
Be
Human
–
you
don’t
have
to
be
perfect!

Warmth and support
“Train
people
well
enough
so
they
can
leave,
Treat
them
well
enough
so
they
don’t
want
to”
Richard
Branson

For More Information
Director of the Henley Centre for
Customer Management
Henley Business School
moira.clark@henley.ac.uk
Work: 01491 571454

DMI 2014 Insights into Digital Transformation

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