Daring to be_digital seminar_5th march edinburgh

MARK SHERWIN – GLOBAL COMMERCIAL DIRECTORROB VAN TOL – SENIOR STRATEGISTRYAN SACKETT – UX & STRATEGY CONSULTANT

LONDON

EDINBURGH

CARDIFF

PERTH

MELBOURNE

HONG KONG

Our broader experience

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@PrecedentComms

TheWebsite

Webstrategy

Digitalstrategy

Digitaltransformation

WE ARE EVOLVING FROM A MARKETING CENTRICTO BUSINESS WIDE VIEW OF THE WEB

Marketing centricBusiness-wide impact

DIGITAL TRANSFORMATION REFERS TO THE CHANGES ASSOCIATED WITH THE

APPLICATION OF DIGITAL TECHNOLOGY IN ALL ASPECTS OF HUMAN SOCIETY.

DIGITAL TRANSFORMATION MAY BE THOUGHT AS THE THIRD STAGE OF EMBRACING

DIGITAL TECHNOLOGIES:

DIGITAL COMPETENCE -> DIGITAL LITERACY -> DIGITAL TRANSFORMATION.

THE LATTER STAGE MEANS THAT DIGITAL USAGES INHERENTLY ENABLE NEW TYPES OF

INNOVATION AND CREATIVITY IN A PARTICULAR DOMAIN, RATHER THAN SIMPLY ENHANCE

AND SUPPORT THE TRADITIONAL

Wikipedia | ‘Digital Transformation’

TODAY WE WILL EXPLORE WHAT IT MEANSTO ACHIEVE DIGITAL TRANSFORMATION

THOSE ORGANISATIONS THAT DO NOT FUNDAMENTALLY TRANSFORMARE RAPIDLY BECOMING IRRELEVANT

If you think being 'in e-business' means suturing on an

e-commerce appendage to your body corporate,

then think again.

We promise you that won't work...

You've got to be prepared to let that e-business commitment

ripple through and shake up that body corporate.

And like an 8.0 earthquake, you must be prepared for the

rearrangement that will inevitably occur.

Keyur Patel & Mary Mccarthy | Digital Transformation, 2000

DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE

Innovators2.5%

Early Adopters

13.5%

Early Majority34%

Late Majority34%

Laggards16%

AND THERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO

Keyur Patel & Mary Mccarthy | Digital Transformation, 2000

Innovators2.5%

Early Adopters

13.5%

Early Majority34%

Late Majority34%

Laggards16%

THOSE WHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND

Keyur Patel & Mary Mccarthy | Digital Transformation, 2000

In a world filled with uncertainty, it’s easy to fall into a

“wait and see” mind-set.

But waiting and saying “no” has a cost just as high, if

not higher, than saying “yes.”

Because technology is increasing so fast and because

we are in a period of rapid transformation are the

exact reasons why you can no longer “wait and see”

what will happen.

Remember this: “If you don’t do it, someone else will.”

And they’re doing it right now!

Daniel Burrus, Flash Foresight

How is your industry being digitally disrupted?

WE’LL ALSO HELP YOU FIND YOUR INNER HERO…

WE’RE GOING TO EXPLORE 5 KEY THEMES

1. Customer service, the missing link

2. Harnessing the wisdom of crowds

3. New money models

4. The tricorder

5. The Internet of things

Customer service, the missing link

MARKETING CAN NO LONGER SIMPLY FOCUS ON AIDAIT MUST FOCUS ON AIDA AND ITS REFLECTION

The AIDA reflection | Mark Sherwin, Precedent 2013

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WIGGLE - NOT JUST AN ACQUISITION MODEL

WIGGLE - NOT JUST AN ACQUISITION MODEL

WIGGLE - NOT JUST AN ACQUISITION MODEL

WIGGLE - NOT JUST AN ACQUISITION MODEL

WIGGLE - NOT JUST AN ACQUISITION MODEL

LOVEFILM – FAILING AT THE FINAL HURDLE

LISTENING AND RESPONDING IN A HUMAN WAY IS A GOOD START

…AND CHOICE MAKES PEOPLE FEEL BETTER

TECHNOLOGY ENABLED CUSTOMER SERVICES

TECHNOLOGY ENABLED CUSTOMER SERVICES

Harnessing the wisdom of crowds

USES OF CROWD SOURCING

Idea Generation

Research & Development

OperationsFinancing ?

IDEA GENERATION - LEGO

R&D - GOLDCORP

x

FINANCING - KICKSTARTER

OPERATIONS - GIFF GAFF

? – SHUTLR

TURNING ADVOCATES INTO STAKEHOLDERS

Stakeholders

Idea generation

Research and Development

Financing

Operations

How could your business harness the wisdom of crowds?

New money models

WE’D WANT TO HIGHLIGHT NINE DIFFERENT TYPES OF BUSINESS MODELSALL OF THEM HAVE BEEN IMPACTED BY THE WEB

Brokerage | Bringing buyers & sellers together e.g. Estate Agents, IFAs

Advertising | Content provider carrying adverts e.g. Google, Facebook

Infomediary | Consumer habits & personalisation e.g. DoubleClick

Merchant | Selling e.g. Amazon, John Lewis, Argos

Manufacturer Direct | Build and sell e.g. Dell

Affiliate | Revenue sharing e.g. Amazon

Community | User supported e.g. Open source, Kickstarter

Subscription | Periodic payment e.g. Guardian, Spotify, membership orgs

On-demand | Pay as you go e.g. In App/Game Payments

MERCHANTS: CUSTOMERS WANT INCREASINGLY GRANULAR PURCHASING OPTIONS.MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN

ON-DEMAND: NEW PURCHASING MODELS CAN DRIVE NEW CONSUMER HABITSAND DELIVER GREATER RETURNS

OLD SUBSCRIPTION: TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS

NEW SUBSCRIPTION: TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE FLEXIBLE APPROACH TO ACCESS

NEW SUBSCRIPTION: THE VALUE OF KNOWLEDGE HAS PLUMMETED AS THE WEBHAS WIDENED ACCESS TO IT

0.69pa month

COMMUNITY: THESE MODELS ARE STARTING TO PERFUSE INTO MORE NICHE APPLICATIONS AND SECTORS

COMMUNITY: THESE MODELS ARE STARTING TO PERFUSE INTO MORE NICHE APPLICATIONS AND SECTORS

COMMUNITY: FINANCING – NICHE GIVING

BROKERAGE: A NEW SET OF KNOWLEDGE BROKERS HAS GROWN UP, TO FORCE DOWN PRICES IN ACROSS A NUMBER OF SECTORS

ADVERTISING: HAS HAD TO BECOME BLENDED WITH THE CONTENT

ADVERTISING: HAS HAD TO BECOME BLENDED WITH THE CONTENT

INFOMEDIARY: HAS BEEN VERY EFFECTIVE IN COLLECTING PERSONAL INFORMATION, A COUNTER TO SHOWROOMING, BUT HAS PRIVACY CONCERNS

AFFILIATE: PAY FOR PERFORMANCE MODEL – IF THE AFFILIATE DOESN’T GENERATE SALES, IT COSTS THE MERCHANT NOTHING

MANUFACTURER DIRECT: DISINTERMEDIATING THE TRADITIONAL MERCHANT AND OFFERING CUSTOMISATION ON BUILD

MANUFACTURER DIRECT: NEW SUBMIT YOUR DESIGN TO BE 3D PRINTED. AND A 3D PRINTER IS CREATING A PIZZA – SHADES OF STAR TREK’S REPLICATOR

The tricorder

EVERY EMPLOYEEWITH MORE COMPUTING POWERAT THEIR FINGER TIPS THANTHE SPACE SHUTTLE.ANYTIME…ANYWHERE

CONVERGENCE PUTS INCREDIBLE POWER IN THE PALM OF OUR HAND

Wired UK | 20 Years of Wired | June 2013

SMART PHONES CAN NOW REPLACE MANY ANALOGUE PROCESSESAND DEDICATED DEVICES

THEY ALSO OFFER THE OPPORTUNITY TO PROVIDE NEW VIEWSON TO EXISTING DATA USING CONTEXT TO STREAMLINE EXPERIENCES

AS DIGITAL WALLETS BECOME MORE MAINSTREAM THE MOBILEOFFERS HUGE EFFICIENCY AND PRODUCTIVITY BENEFITS

PHONE AS BUS TICKET AND BUS TRACKER

INTEGRATING DIGITAL WITH THE PHYSICAL WORLD (PHYGITAL)CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS

TECHNOLOGY ENABLED SERVICE EXPERIENCES

TECHNOLOGY ENABLED SERVICE EXPERIENCES

TECHNOLOGY ENABLED SERVICE EXPERIENCES

INTEGRATING DIGITAL WITH THE PHYSICAL WORLD (PHYGITAL)CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS

How will you fit into your staff and customers’ mobile lives?

The internet of things

NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…

DIGITAL CAPABILITY IS NO LONGER RESTRICTED TOHIGH END COMMUNICATION DEVICES

The internet of things isn’t wi-fi fridges and devices with bolt on

connectivity: it’s tiny, cheap sensors that will bring everyday objects

to the network – in their billions’

‘By strapping a receiving computer to the side of it, the internet

fridge brings the internet to the device. By connecting transmitting

sensors to the network, the internet of things brings the device to

the internet.’

BEN HAMMERSLEY | WIRED, 2013

NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…

THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT,MULTI-OUTPUT DIGITAL INTERACTIONS

THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT,MULTI-OUTPUT DIGITAL INTERACTIONS

Use case from The New Digital Age | Schmidt and Cohen 2013

THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES

Learns your behaviour by

you manually changing

the temperature, and it

learning your routine.

And can be adjusted by

your smartphone app.

THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES

THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVES

THE INTERNET OF THINGS IS PERVADING EVERY FACET OF OUR LIVESWHETHER WEARABLE OR AMBIENT

THIS IS A 2020 CONCEPT FROM SONY ABOUT A FULL COMPUTER YOU WEAR ON YOUR WRIST

BIG NAME BRANDS NEED TO ADAPT FAST TO SURVIVE

WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS, COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER OPPORTUNITIES

WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS, COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER OPPORTUNITIES

How will you be / how are you being impacted by the Internet of Things

Gotcha, but how do I make that 15%?

TheWebsite

Webstrategy

Digitalstrategy

Digitaltransformation

FIRST WE MUST ARTICULATE WHAT IT MEANSTO EMBRACE DIGITAL TRANSFORMATION

Marketing centricBusiness-wide impact

DIGITAL MUST MOVE FROM A MARKETING FUNCTIONTO A BUSINESS-WIDE IMPERATIVE

Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013

AND TO GATHER SUPPORT IT MUST DELIVERTO ALL PARTS OF THE BUSINESS

Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013

DIGITALTRANSFORMATION

DIGITALTRANSFORMATION

GENERATE IDEAS AND LOOK FOR THOSE IDEASTHAT IMPACT ACROSS ORGANISATIONAL GOALS

A STORY IS WORTH 10,000 WORDS

We need to deliver recognisable and measureable business value

every three to five months.

That is imperative, otherwise we lose credibility and trust.

CLAES MANSSON | DIRECTOR, ICT STRATEGIC INVESTMENT PROGRAMME , MONASH UNIVERSITY, 2013

UNDERSTAND HOW YOU WILL MEASURE BUSINESS VALUEESTABLISH BASELINES, CONSTANTLY MEASURE, OPTIMISE AND EVOLVE

CONSIDERATIONS

A HERO’S JOURNEYCHANGING THE WAY BUSINESSES CREATE EXPERIENCES

INCEPTIONYou see the need for change.

You feel as if more can be done.

You’re not sure it’s your responsibility and the opportunity is bigger than you envisioned.

You question your calling.Perhaps you refuse it.

Then you meet others who will empower you…stand by you through change.

What’s the Future of Business | Brian Solis, 2013

A HERO’S JOURNEYCHANGING THE WAY BUSINESSES CREATE EXPERIENCES

TRIBULATIONChange is met with hardship.It’s unavoidable.

You start to feel the discomfort from leaving your comfort zone.

Obstacles will arise; budget constraints, politics, scepticism, tunnel vision, blatant ignorance.

Stay true stay focused.

Your customers and employees are anxious for you to succeed.

What’s the Future of Business | Brian Solis, 2013

A HERO’S JOURNEYCHANGING THE WAY BUSINESSES CREATE EXPERIENCES

TRANSFORMATIONBuzz and excitement permeates the halls of your business.

Employees hear about what you are trying to do, they enquire how to be part of it or how soon they’ll see the fruits of your labour.

To hold consensus takes frameworks and processes. This sets the stage for how people, teams, philosophies, and technology will support the transformation.

It’s always darkest before dawn. There will be pushback, more and more challenges.

Keep the team strong, you’ve come too far for that.

What’s the Future of Business | Brian Solis, 2013

A HERO’S JOURNEYCHANGING THE WAY BUSINESSES CREATE EXPERIENCES

REALISATIONTo call this the last stage is misleading. Transformation is continual, it becomes part of your business model.

Here you learn and adapt accordingly.

You lift your head and notice that the people inside and outside of the organisation are noticing change.

Change is now constant.

Take this moment to revel in your journey.

Since you are the hero in this story, your journey is just beginning.

What’s the Future of Business | Brian Solis, 2013

How will you start your hero’s journey?

Transformation will not wait, pause, or stand aside while you think about

it. There are three critical truths about business in this new era that you

cannot afford to ignore; we might call them corollaries to the Golden Rule:

1) Transformation will happen.

2) If it can be done, it will be done.

3) If you don’t do it, someone else will.

The message is clear: in the days, weeks, months, and years ahead,

expect and plan for radical transformation.

Daniel Burrus, Flash Foresight

WE SHOULD ALL BE CONCERNED ABOUT

THE FUTURE BECAUSE WE WILL ALL HAVE

TO SPEND THE REST OF OUR LIVES THERE.

Charles F. Kettering, American inventor and businessman