digital readiness webinar

Digital readinessTom Voirol

Global Head of User Experience

Mastering digital change webinar series

Previously…

DIGITALPSYCHOLOGYDEBORAH KO

Mastering digital change webinar series

Now…

TOM VOIROL MAURICE QUEKGLOBAL HEAD OFUSER EXPERIENCE

DIGITAL STRATEGIST

[email protected]

[email protected]

DIGITALREADINESSTOM VOIROL

Contents

Digital readiness?

The pillars of digital readiness

• Business

• Market

• Resources

Making it sustainable

Questions

Digital readiness?

What do we mean by digital?

Digital?

“”

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/

“”

a cost centre

Digital is not…

Digital?

“”

something the IT department does

Digital is not…

Digital?

“”

a tactical channel in the marketing mix

Digital is not…

Digital?

“”

all about the customer experience

Digital is not…

Digital?

“”

just relevant to technology companies

Digital is not…

Digital?

“”

just relevant to B2C companies

Digital is not…

Digital?

“”

just relevant to companies

Digital is not…

Digital?

“”

a strategic competency

Digital is…

Digital?

“”

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?

Readiness?

Digital leaders outperforming market

Readiness?Te

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logy

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:• C

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• Int

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Leadership capabilities including:• Vision• Governance, engagement

Source: Cap Gemini: The Digital Advantage – How digital leaders outperform their peers in every industry

Digital leaders outperforming market

Revenue Generation Profitability

Readiness?

Source: Cap Gemini: The Digital Advantage – How digital leaders outperform their peers in every industry

Digital face / digital body

Readiness?


Digital Business Digital Market Digital Resources

Processes

Structure

Leadership

Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People

Digital Native Organisation

Digital business


Digital Business

Processes

Structure

Leadership

Strategy

Digital Market Digital Resources

Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Strategy

Digital business

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Business strategy

Digital business / Strategy

Digital strategy


Digital-permeated business strategy


“”

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.


Jeanne W. Ross,Director of the Center for Information Systems Research (CISR)

MIT Sloan School of Management

Case study


“”

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


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


“”

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


Leadership

Digital business

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

Case study


Case study


• 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

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 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


Structure

Digital business

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Structure is #1 obstacle to digital adoption

Digital business / Structure

Source: The digital tipping point: McKinsey Global Survey results June 2014

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


Hierarchy and network


Case study


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


First Direct


Processes

Digital business

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Adaptability

Digital business / Processes

Leon C Megginson

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


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


Case study


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

“”

“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 SilvaCIO Codelco-Chile

Digital market


Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Products

Digital market

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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?

Case study


Hema maps


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

Going digital


DIY maps


Customers

Digital market

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


We get wrong what customers want

Digital market / Customers

Task #1: Understand your 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

Case study


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


Partners

Digital market

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


Partners and suppliers

Digital market / Partners

Partners and suppliers


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

Case study


Laing O’Rourke – Digital engineering


Competition

Digital market

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

Case study

Digital market / Competition

Digital resources


Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


People

Digital resources

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

Case study

Digital resources / People

Money

Digital resources

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

Case study – Crowdfunding

Digital resources / Money

Content

Digital resources

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

“”

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?”


Umair HaqueDirector, Havas Media Labs

Case study


Net-A-Porter


High-quality visual content


Increasing move from retail to publishing


Turn big data into content for consumers


Technology

Digital resources

Digital Business

Processes

Structure

Leadership

Strategy


Strategy

Competition

Partners

Customers

Products

Technology

Content

Money

People


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

Case study


SBB staff digital equipment


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


Keep it agile


Kill the 5-year plan


Produce concrete outcomes, not paper


Learn and iterate


Digital ready cards