2015, The Year of Digital Transformationdicitas.com/wp-content/uploads/2015/02/NYR-2015... · Digital Performance Benchmark - Read about our “Digital Performance Benchmark” how

How to become and stay competitive in a digital world?

2015, The Year of Digital Transformation

Copyright © 2014 Dicitas Consulting. All Rights Reserved. 1

New years reception Dicitas Consulting & Software AG 5 February 2015

Introducing Dicitas Consulting


You – You are an organization that has been successful for

many years. Still you are asking yourself some serious questions what digital might mean for you.

What we do – Dicitas Consulting helps you to create substantial

business value with digital technology and innovation that deliver breakthrough business performance improvements and initiate digital transformation.

Dicitas Consulting Partners in Transformation

The Digital Challenge


Digital Reality – Business fundamentally changed. With full digital

engagement being the minimum expected from customers, digital has emerged as a critical enabler.

The Challenge – Countless companies aspire to innovate their business,

only those with digital at the heart of their strategy are truly successful.

2015 will be the year of the full breakthrough of Digital


Digital Predictions for 2015 - Read about our “Digital Predictions for 2015” and learn

how fundamentally our society and your business landscape changed.

Digital Performance Benchmark - Read about our “Digital Performance Benchmark” how it

can help you to benchmark your digital capabilities and how to build a roadmap for the future.

Masters in Digital

1. Deliver a superior digital

experience

2. Use digital to create and

shape demand

3. Use digital technology to

innovate

4. Organize to be digital

5. Master big data to

enable digital engagement

6. Measure your Digital

Performance

Digitization is getting Full-Scale in 2015


–  The Digital Age is here to stay. Those who do not tap its potential will get left behind. However, complete digitization is necessary for true transformation is to happen.

–  From R&D investments and streamlined processes to skills upgrading and even KPIs, digital transformation needs to be formalized as a companywide priority.

–  By 2018, the total cost of ownership for business operations will be reduced by 30 percent through smart machines and digitized services (Gartner).

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Expert panel prediction: 80% likely or higher

Companies need to deepen the overall business strategy with digital


– Digital is more then just marketing

– Chief Digital Officers need to help help organizations lessen their focus on demand creation and heighten it on organizing end to end customer journeys and process.

– Digital should be an integral part of your business strategy

–  By 2018, digital business will require 50 per cent less business process workers and 500 percent more key digital business jobs, compared with traditional models (Gartner).

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Companies need to “Break Down The Silos” to fully embrace digital


–  Even if your marketing organization becomes master in digital, it will still fail if they are unable to work together.

– Digital marketing requires the strategic and tactical alignment of content creation, asset production, SEO, promotion and analytics all connected along a common backbone.

–  For true digital transformation to take place in 2015, organizations will need to put the right organizational structure and processes in place to break down the silos between their different teams.

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Digital drives Structural Transformation


– A digital transformation has to start with a structural transformation.

–  It requires a new way of thinking about the organization, the skills that are required, the reporting structure, and the culture, training, and measurement system.

– Whether digital is successful will depend on how management sets up the organization to facilitate success.

– As digital becomes more sophisticated, maximizing potential in 2015 will require more C-level thinking in how to organize and integrate it with non digital efforts.

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Marketing will become the Driver for Digital Transformation


– Marketers can pave the way to true digital transformation by stepping out of their comfort zone.

–  That means challenging existing business models as well as enabling other divisions of the company to adapt to digital trends.

–  Be present in the moments that matter and build a framework for digital-driven business.

– Marketers need to drive digital transformation.

–  If it will not be the marketing people who will? 5%

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As digital is tightly integrated with technology, the walls between Marketing and IT are weakening.


–  If marketers are truly to harness digital, they must not only communicate but “co-operate” with IT.

–  They must build a common vision, leverage one another’s skills, and be respectful of each other’s resource and time pressures.

– And it won’t be easy. In fact, it will be culturally disruptive for many companies – but absolutely crucial to the success of digital transformation.

–  There is no other way.

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Stop treating digital as a siloed tactic, embrace it as an ecosystem


–  See your digital channels as one ecosystem

–  The ecosystem will enable a singular goal of attracting, engaging and retaining new and existing customers…

– …by providing information and content that gives customers everything they need to locate, purchase and use their products and services.

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Mobile will take over


– As usual data will get better, but in 2015 you will see proximity messaging take off. With so many mobile payments options that track your purchases, location and everything else about you, expect to see targeted messaging based on who, what and where I am.

– Mobile analytics is going to become a much bigger factor in 2015. No one is doing a great job of tackling this right since the world is still transitioning to a more mobile world.

–  By 2020, developed world life expectancy will increase by 0.5 years due to widespread adoption of wireless health monitoring technology (Gartner).

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Internet will connect Things


–  The interconnection of different devices and the automation in all fields is destined to change the way customers interact with products and brands.

– As customers’ expectations grow, business models will need to change, and you can’t ignore the opportunity given by the net of Things to deliver new amazing digital experiences.

–  By 2017, a significant disruptive digital business will be launched that was conceived by a computer algorithm (Gartner).

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Augmented reality and wearable technology will breakthrough


– Augmented reality and wearable technology converge the online and offline world

–  This change will be so profound that we will look back at this revolution as something that is as important as the Internet itself.

–  The Internet of things will create a completely new kind of environment and marketers will have to keep up with its rapid development in order to stay in touch with the changing needs of consumers.

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Brands become publishers


–  2015 will be the year we create and curate content our customers will thank us for.

–  Rich and relevant content becomes an important asset in our marketing communication

– Content will make it easy for new and existing customers to locate and use the best products and services they intend to look for in various channels.

–  In 2015 we will see a large move among brands to invest in media, content and omnichannel capabilities to build loyal audiences.

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Those that pitch are becoming ignored (Help, don’t sell)


– A little bit of selling here and there is great, but those marketers who do nothing but sell, sell, sell, are gonna get ignored.

– Don’t focus on selling but on helping customers to buy, wherever they are.

–  Engage in real customer dialogues and provide more value to the relationship.

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We Will See More Videos Than Ever


–  YouTube alone reaches more U.S. adults than any cable network.

–  The use of videos for marketing purposes has been exploding.

– Videos are perfect to show how a service or product works in such a way that is impossible to achieve with text or images only.

– Video Analytics is emerging.

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The rise and eventual preeminence of mobile (data)


– As a call to action from whatever channel arise, today’s smartphone-equipped consumers can take actions in the moment in a way that can be directly attributed to the medium that drove the action.

–  By 2017, U.S. customers’ mobile behavior will drive mobile commerce revenue in the U.S. to 50 percent of U.S. digital commerce revenue (Gartner).

– Clickstream (web) data simply misses too many elements of the consideration and purchase process.

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The customer journey will be omnichannel


– With most purchase decisions significantly influenced by digital channels, marketers need to truly embrace omnichannel that cuts across marketing, media, distribution, and aftersales in order to meet their consumers’ needs.

– Needed is: 1.  deep consumer insights to understand the

path to purchase and influences to purchase;

2.  a technology backbone, including data analytics, to develop predictive models for effective consumer engagement;

3.  and engagement across functions and entire leadership–not just marketing and sales.

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Your competition is investing in the customer experience


–  Just 10 years ago, the phrase customer experience management (CEM) didn’t even register on Google trends.

– Customer experience is not just digital; great customer experience simply can’t exist without it.

–  By 2017, 50 percent of consumer product investments will be redirected to customer experience innovation (Gartner).

–  By 2017, 70 per cent of successful digital business models will rely on deliberately unstable processes designed to shift as customer needs shift (Gartner).

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Personalized Means Better


– Marketers want users to interact with their content, and what better way to achieve that than through providing something relevant?

–  By offering personalized content companies were able to increase the number of sales, lower the costs of operation, inspire users to enter into a longer term dialogue.

–  Personalization is expected to become a widely adopted practice in 2015, leading to the growth of 1-to-1 marketing.

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Marketing Channels Will Be Even More Connected


–  2015 is the year of the omnichannel breakthrough

– Content creation, search optimization and social media will be less siloed as specific departments are treated more like skills that exist across the organization.

– Optimization will move beyond individual tactics and focus more on overall customer experience across channels.

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Marketing will be more data-driven & more hyper-targeted


– Marketers already use analytics to see how customers interact with their company’s products or services.

–  The importance will rise in 2015, with spending expected to rise by 60%.

–  2015 will be the year of data-driven marketing. All design, advertising and social media will focus on driving measurable results using cutting edge tracking and predictive analytics.

–  2015 will be the year of machine learning driven context analytics

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A critical mass of interest in user-controlled identity will mobilize


–  Identity management has always been centralized. From social media providers to cable companies to ecosystem providers

– Apple / Google – love controlling user identities. Control is critical to gather data about individuals and target them with ads.

– Consumers however, are getting fed up with this routine. Consumers want to be in control.

–  2015 will be the year this balance of power shifts to consumers, as people will get sufficiently fed up and demand technology that empowers them to take control of their own identities.

– Once this call is loud enough, investor money will begin to pour into the market.

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We will see the beginning of the end of apps


–  We will see the end of apps that just focus on “one thing”, but more sophisticated ones that combine the forces of the Digital Transformation – especially mobile, data and geo-spatial services – and act as an assistant to your life.

–  They know you, they connect with you and other services for your benefit and those digital supportive apps will create an addiction in bridging your private and business life.

–  The more Google and Apple are including features and functions in their operating systems, the less apps will sustain from other providers.

–  Just check the stats about how many smartphone users do not even download apps, or very few of them.

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The Digital Laggards Will Finally Adopt


–  Businesses will finally wake up to the fact that digital, social media and mobile marketing are no longer new phenomena;

–  They should be integrated right from the start in any business strategy and customer engagement;

–  Yet, countless companies aspire to deliver leading customer experiences, only those with digital at the heart of their plans are truly successful;

–  The future of digital lies in companies being digital, social and mobile by design!

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Why Digital Benchmarking is important


It’s now – 2015 will be the year of the full breakthrough of Digital

– The rules of the game will change, resulting in massive disruption of current business models

You need to: –  Understand the characteristics of digital leaders in your industry

–  Benchmark your digital capabilities and spend against industry and business model leaders

–  Identify and prioritize the areas of greatest opportunity for improvement and revenue generation

–  Define your path to become a master in digital

Masters in Digital


experience

2. Use digital to create and

shape demand


innovate





Performance

How to start?


Dicitas’ Digital Performance Benchmark helps to you assess your current digital maturity and develop a improvement roadmap for the future.

Masters in

Digital


experience 2. Use digital to create and

shape demand


innovate





Performance

Ana

lytic

al C

ap

ab

ilitie

s

1. Deliver a superior digital experience •  Deliver digital experience consistently •  Deliver a branded digital experience •  Enable customer service differentiation and personalization •  Have an integrated customer experience strategy towards digital

2. Use digital to create and shape demand •  Expand Into New Markets •  Have best in class e-commerce capability •  Use Channels Strategically •  Create High-Margin Digital Products and Services •  Use digital to reinforce position in the value chain

6. Measure your Digital Performance •  We review our digital performance

improvement roadmap regularly •  We measure our digital

performance and know the bottom-line

•  We monitor our Digital Customer Experience

5. Master big data to enable digital engagement •  Extract and Apply Value-Adding

Insights •  Use Customer Data Strategically

3. Use Digital technology to innovate •  Execute Pervasive Digital Innovation Agenda •  Implement clear, efficient processes •  Use digital to improve the efficiency and effectiveness of business

processes •  Master Digital Security •  Master Digital Channels

4. Organize to be digital •  Articulate a clear integrated strategy towards digital •  Integrate digital throughout the organization •  Manage, Train, and Retain Best Talent •  Ensure Senior Executives are Digital Savvy

The Digital Performance Benchmark


The Digital Performance Benchmark cycle takes 4 weeks to complete

KICK OFF the study -  Prepare for the survey:

•  The survey is intended for the mid and senior levels involved in marketing, sales, service, CRM or Digital.

•  The survey is composed of 100-120 questions (web based)

•  The survey takes between 45 to 60 minutes to complete

•  There are no mandatory questions to simplify the experience for the respondent

• Define the response group cross functions and hierarchy

-  Send survey invitations to response group

Analyze survey feedback

•  Benchmark against peers

•  Write conclusions of research

•  Build research report

•  Conduct executive interviews

•  Prepare workshop

Collect survey responses -  Monitor survey progress

-  Ensure maximum survey participation

-  Send reminders to possible non-response one week after start survey

-  Qualitative check on survey responses

-  Further respondent interviews to deepen specific topics

Discuss results and Plan

•  Deliver research report

•  Conduct workshop

•  Discuss research findings and insights

•  Identify digital strengths and weaknesses

•  Define strategic and business digital priorities

•  Develop digital roadmap

REPORT AND PLAN ANALYSIS SURVEY PREPARE

Dicitas Consulting’s Digital Performance Benchmark Study is based on a web based survey


Martin Hermsen Rufus Udo Davy Verhulst Partner Customer & Channel Innovation M: +31 646 82 87 85 [email protected]

Partner Business Transformation M: + 31 622.525.392 [email protected]

Partner Belux Strategy & Analytics M: +32 475 83 99 98 [email protected]

Martin Hermsen is partner at Dicitas Consulting and is responsible for the customer innovation practice. He has over 20 years of consulting experience in growth, competitive strategy, product innovation, marketing and customer management. Martin studied Information Engineering at the University of Amsterdam, and MBA at the Rotterdam School of Management.

Rufus Udo is partner at Dicitas Consulting and responsible for the transformation & innovation practice. He has more than 20 years of experience in defining, realizing and managing complex business transformation programs for multinational clients. Rufus studied Mechanical Engineering at the University of Technology in Delft.

Davy is managing partner for Belux and has over 15 years of experience in business consultancy, marketing, commercial procurement, e-commerce and customer management of national and international companies. He gained experience in line management at AB-Inbev. Davy graduated as commercial engineer at UFSIA,.

For information call:

New years reception Dicitas Consulting & Software AG 5 February 2015

Join us to celebrate the new year 2015, the year of Digital Transformation!

Copyright © 2015 Dicitas Consulting | Software AG 31

2015, The Year of Digital Transformationdicitas.com/wp-content/uploads/2015/02/NYR-2015... · Digital Performance Benchmark - Read about our “Digital Performance Benchmark” how

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