digital transformation

@jan_heyens @jan_heyens

Digital transformation

@jan_heyens – jan heyens – [email protected]


Speed inside the company Speed outside the company

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Do you see this happening ?


Do you feel like I did one day ?

“Digital transformation is

the answer but what, how,… “

Source : Eric Brown


Are you, as I am, not digital by

nature ?

“Plain English please”


If 3x “Yes” than

@jan_heyens @jan_heyens Source : mizzitechinfo

5 layers that change the game

• You can “rent” vs buy your IT infrastructure • Security, upgrades, storage … are included • All is in the cloud so accessible anytime, anywhere

Even a small company can do miracles

all the knowledge of the world in your pocket

Talk with the world and become your own media channel


5 layers that change the game

All has become digital so can be • traced, stored • computed to generate insights • automated

All humans and billions of objects always connected


Data = new raw materials of

tomorrow’s economy

Data input will go ballistic

• 90% of interactions will be digital. • App use ; Social media

• IOT *(Cars, wearables, health monitoring,..

Cheaper data treatment and storage in the cloud

• Price of Parse, MS Azure, Amazon webservices

Connectivity & battery life improvements

• IOT (1 €/year to connect) and battery life 10 years

• 4G, Wifi, bluetooth

IOT = Internet of things = objects connected to the web


Example : What does it mean for

marketing ?

Scaled to millions of people quickly and cheaply as costs for storage, bandwidth, and computing are relatively tiny.

Delivered globally in a fraction of a second.

Easily altered — you can manipulate bits in the digital world far more fluidly than atoms in the physical world.

Easily measured — you can accurately track how people interact with them. Source : Scott Brinker


“We are entering a world where digital innovation is merging with traditional marketing

fundamentals to create new approaches, new brand leaders, and new models for success.”

Source : Forrester research David Cooperstein


Digital transformation

3 reasons


Better

processes

New

business model

Customer

experience


Myths on digital transformation

Myth : “We invest in technology, so we are ok.” Fact : Technology is not the problem. But if culture, objectives and leadership not in place, technology ROI will be bad.

Myth : “Culture is the least important factor” Fact : Transformation = change = resistance. So in fact culture shift is the hardest part

Myth : “We have appointed a Chief Digital Officer, he will solve the issue.” Fact : While a CDO might be useful, often it is a way to park the challenge in a silo and 1 year later the CDO quits or gets fired.


Transformation in steps

Step 1 : Business Model


“80% of all businesses will be affected by the

digital transformation”

Source : Forrester research David Cooperstein


Some examples ?


The WHY is : What utility do we create for the customer or put

differently :

NOW : Business model as is

Is your business model at risk ?

If your company would disappear what would

customers say about you ?

“I will miss them because ………. ”

PS : If you won’t be missed you got a problem


What will happen in the future ?

Is your business model at risk ?

Questions Some random examples

Buying behavior Online,..

Communities Co-buying

Sharing vs buying Car sharing

Platforms Booking. com,..

Technology breakthrough Batteries recharging in 10 min

Internet of things Collect data and create a better experience

Competition Concentration and more buying power

Cost drivers Replace cost drivers by automatisation

…..

@jan_heyens @jan_heyens Source : Peter Fisk

Do you want to be a game changer ?


Step 2 : Better

processes

Step 2 : Customer

experience

Transformation in steps



The list of possible changes is long

@jan_heyens @jan_heyens Source : Peter Fisk


Step 2 : Better

processes

Step 2 : Customer

experience 1. What are the biggest problems (acquisition, retention, costs,…) 2. What journeys show critical points ? (internal & external) 3. Which 20% generate 80% of the cost/benefit ? 4. What are the organization's capabilities at this stage ? 5. KPI’s and objectives to reach ?

Step 3 :

Prioritisation

So therefore prioritize


Example of a multi-brand garage

Step 3.1 : Biggest problem = acquisition


Opportunities Potential Solution Cost/Effort Priority

We don’t attract enough visitors on the website

+400% visitors • Content marketing (LT)

• Adwords campaign (ST)

• High

• Low

5

4

Once they are on the website they leave too quickly

+ 30% less leavers

Rearrange the website and structure

Medium 3

The appointment form is abandoned in 30%

+ 20% more conversion

Split the fomr in 2 parts

Low 1

50 % browses with a smartphone and our site is made for PC

+ 50% less leavers

Responsive website

Medium 2

…..


Step 2 : Better

processes

Step 2 : Customer

experience 1. What are the biggest problems (acquisition, retention, costs,…) 2. What journeys show critical points ? (internal & external) 3. Which 20% generate 80% of the cost/benefit ? 4. What are the organization's capabilities at this stage ? 5. KPI’s and objectives to reach ?

Step 3 :

Prioritisation

Culture

Enablers (should grow as you

are progressing)

Tools

Organization

And look for Enablers


Support from CxO


Find a Cxo sponsor that shares

your vision and wants to help

There will be failures on the road so get the buy in to make them


As changing organisation is tough


And changing culture is even tougher

• Ignorance : “Why change ?”

• Resistance : “Change means risk and work and my boss asks 0 risk”

• Giving up : • “He tried to change something and

failed, why would it work now ?” • “Digital means testing, trying,… ><

“Mgmt wants results, ROI, business case so we don’t try new stuff”

• “As long as silo’s stay ,we will never succeed”

• Town hall meetings to create

awareness

• ° “Coalition of the willing”

• Proof of concepts supported by

CxO

• Communicate a lot

• Celebrate small victories


And then there are other road blocks

Data in silo’s Opposing

department

goals

Overwhelmed

by technology


Digital marketing is tool hungry : 3

examples of what tools companies use


So where do you start ? Step by step

Know what you want

the tool to do

• Google/ Blogs i.e. www.raziorsocial.com • Ask # suppliers to inform you • Ask a multi-vendor consultant to

guide you

See demo’s • Ask suppliers / Free demo’s /visits at other cies

• Make sure tool is compatible with future tools

Write

RFP*

• Most demo version are free of charge • Suppliers are willing to give you test

environment for free • RFP models are plentiful on the web

Use

demo

Hire marketing

technologist

• This person will be in charge of the tool(s) and will educate internal users

1.

2.

3.

4.

A. B. or

RFP = request for proposal or an offer a supplier makes


Tools : tips & tricks

Start with free/cheap tools to learn better what you want

The master of the tool (mkt technologist) has to have tons of

passion

Start with the tool that solves a big problem as you need to

gain credibility

Ask help setting up the tool. Some suppliers have success

coaches to help you launch the tool.

Philosophy should be that 70%-95% can be managed without

IT.

@jan_heyens @jan_heyens Source : Oracle

Most legacy companies

are here

Most start-ups are here

You could start by positioning yourself

@jan_heyens @jan_heyens Source : Altimeter

Or by filling out a checklist


“The best way is to start small and solve a

problem “

digital transformation

Marketing