B2B Digital Transformation

Lots of buzz around digital

Digital strategy, chief digital officers, digital teams, digital first, digital strategy, digital

innovation, digital governance…

But… what exactly is digital?

Is it just a set of technologies?

It is about changed consumer behaviour

Have higher expectations

Expect better customer service

@Acme. I have a question.

Can you help? Posted 10 minutes ago

Why haven’t theyreplied yet?

They have more choice

The customer has the power

Don’t fly British Airways, there customer service is

terrible!

But this all B2C. What about B2B?

Buyers in the B2c world are also buyers in the B2B world.

Scott Bauer, PWC

Buyers are increasingly becoming a younger generation. A generation who is used to using products that

are easy to use and now they expect that from their B2B solutions.

Leo Bley, PWC

By 2018, 67% of the CEOs of Global 2000 enterprises will have digital

transformation at the center of their corporate strategy.

Gartner

125,000 large organizations are launching digital business initiatives now and that

CEOs expect their digital revenue to increase by more than 80% by 2020.

Gartner

B2B and B2C are not that different:— Need online visibility.

— Desire word of mouth recommendation.

— Fear negative online reviews.

— Want a wider global audience.

— Are increasingly selling based on service and support.

— Recognise the value of a good customer experience.

- Increased conversion.

- Increased average value.

- Improved loyalty.

- More recommendations.

- Lower customer service cost.

- More repeat business.

- Lower cost of sales.

- Improved brand perception.

- Improved brand awareness.

- Improved offering.

- Lower marketing costs.

- Lower product development costs.

- New product innovations.

- Faster to market.

- It differentiates.

Benefits of a great digital customer experience

Ultimately digital is about people and not technology. It is about better serving the connected customers.

Brian Solis

So what needs to change?

You can’t just bolt digital on

Bureaucracies are honed by the past and almost never can they deal

effectively with the future.

Leroy Hood

A bolt on approach has led to some big failures

Birmingham Council £2.5 million (£2m over budget)

Department of Trade and Industry £11.78 per visit

Healthcare.gov $319 million. Set to rise to $677 million.

Transformation is a culture not a project. It doesn’t just finish one day.

Re-think business as usualStrategy, Structure and Culture

Creating a digital strategy

Understand your challenges and opportunities

Wrapping service around productWhat General Electric learned from Uber

69% of customers say that they feel really good about both the company and themselves when

they are able to answer a question or solve a problem related to that company on their own.

Millennials: Customer, Serve Thy Self

Define and prioritise your goals

1 2 3 4 5

Understand your usersTheir needs, questions, situation, journey.

Picture the final user experience

Establish some next steps

Building a digital structure

Consolidate, coordinate and collaborate

Establish strong leadership

Have a clear mandate

Introduce design thinkingThe IBM approach to Digital Transformation

Start with a users needI am…I want to…So I can…

Prototype and pilot

Build, test and iterate

Minimum Viable Product

Expenditure on digitalEffectiveness of site

Cos

tvs

Effec

tive

nes

s

Redesign project

Site begins to damage brand

An ongoing investment

Incremental and continual

Time

Expe

ndi

ture

ondi

gita

l

What we know aboutthe user.

Launching new website

Nurturing a digital culture

Break down silos

Have clear operating procedures

Create some guiding principles

Embed a culture of talking to users

Encourage digital by default

Incentivise around experience

40

60

505050

80

60

30

20

Encourage a mantra of ‘always be making new mistakes’.

Next Steps

1. Understand your digital customer

2. Find your digital champion

3. Commission your strategy

4. Start a pilot project.

boag.world/digital/