Mark Manton - Digital Transformation - Birmingham Marketing Conference

Mark Manton

Driving Change Through InnovationBirmingham, 16th September

©2015 Experian plc. All rights reserved. Experian Public.

How digital transformation drives innovation

Mark Manton - Head of Online Marketing UK&I

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Experian Public.

A Brief History of Digital

with images and frames

Full Development + UX

High Cost/High Impact

Digital Culture & Environment

Innovate Through Digital

What Success Looks Like


We’re a leading global information services company…

In a faster, more complex world, our data and analytics help people and

organisations protect, manage and make the most of their data.

Revenue

US$4.8 bnEBIT

US$1.3 bnMarket Cap*

c. £12bn – UK FTSE Top 50

Employees

c.17,000Offices in

39 countries

Largest markets

US, Brazil, UK

A Brief History of Digital

199520 Years of Hyper-Growth

A Disrupter.

77%Of SME’s have basic digital skills.

Source: Lloyds Bank/Accenture

1 in 4Of Birmingham SME’s lack the skills

and resources required to utilise data

effectively.

Source: Digital Birmingham

Innovate Through Digital

CUSTOMERS

Customer buying behaviour

is changing in every industry,

market and country.

£719mUK average weekly spend online in

2014.

Source: ons.gov.uk

13%Just 13% of organisations are using

their websites for ecommerce.


INNOVATION

Is the process of creating

exceptional customer value

through active listening.

Innovation

Exceptional

Value

Listening


4 Types of Digital Maturity

Consumer Services

Dig

ita

l In

ten

sity

Digital Leadership

FASHIONISTAS DIGIRATI

BEGINNERS CONSERVATIVES

Source: Capgemini Consulting.


Digital Maturity Financial Performance

+6%

Revenue Generation

-11%

Profitability

-12%

Market Valuation

-4%

Revenue Generation

-24%

Profitability

-7%

Market Valuation

+9%

Revenue Generation

+26%

Profitability

+12%

Market Valuation

-10%

Revenue Generation

+9%

Profitability

+7%

Market Valuation

Source: Capgemini Consulting. Sample size 184 publicly traded companies

1/3Digitally mature companies are one-

third more likely to report an increase

in turnover compared to non-mature.



Digital Transformation Models

Digital modification to the business

• Typically implemented by adding digital channels

The creation of new digital businesses

• Produce digital products that complement traditional products

Digital globalisation

• Business becomes multi-national in its outlets and markets


Digital Transformation

Strategy People

Processes Technology


Digital Transformation of Financial Services

Understanding the customer

journey

How customers are using mobile

Teams are fully trained in digital

Optimise online/offline

data

Customer behaviour insights

Deliver the digital promise


The Impact of Digital on Financial Services

Consumer Services

• Digital technology is having a disruptive influence

• Consumer needs and behaviours are changing

the landscape

• How do businesses remain relevant and useful?

• Digital has changed what people demand, but

also how they want it supplied

• Consumers and businesses are expecting a high

degree of convenience, simplicity and speed

73%Of financial services companies are

planning to experiment heavily with

digital in 2015.

Source: Accenture

67%Of consumers would consider buying

insurance from companies other than

insurers.

Source: Accenture

25%Would consider buying insurance

from large tech companies such as

Google and Amazon.

Source: Accenture

PROBLEMSPACE




SOLUTIONSPACE


Importance vs Satisfaction Framework

Opportunity Competitive

Low Returns

Low Returns

High

Importance

Low

Importance

Low

Satisfaction

High

Satisfaction


Idea Innovation

Consumer Services

• Determine your target customers

• Identify underserved customer needs

• Define your value proposition

• Specify Minimum Viable Product (MVP) feature

set

• Create your MVP prototype

• Test MVP with customers – get feedback


Product & Service Innovation

UX

Feature Set

Value Proposition

Product Market Fit

Understand Market

Target Customer

Pro

du

ct

Problem

Space

Solution

Space

Mark

et

Test

Learn

Feedback



Consumer Services

• Innovate with Minimum Viable Product (MVP)

and get rapid feedback

• The main reason products fail is that they don’t

meet customer needs – Product:Market fit

• Evaluate disruptive innovation vs incremental

innovation

• Strategy is also about saying no!



Consumer Services

• Digital innovation is about communication

• Listening is the most important aspect of digital

innovation

• Add innovation and value at each point of contact

– the layers of customer touch

• Customer touch points: pre-touch, first touch, in-

touch and last touch

• 80% of what your customer feels about your

brand will happen on the first touch

80/20Focus your efforts on finding areas which

are most important in your business and

should get the right level of attention.

Perfectionism is a non-optimal way to

iterate!

Digital Culture and Environment

DIGITAL

TOP-DOWN

Digital transition must come from top-

down. Your digital ambitions needs to

be owned and driven by your CEO,

MD or senior executive team.


Digital Culture

Consumer Services

• Is the foundation stone to any digital initiative

• Culture is how organisations think, feel and

works as whole to achieve excellence

• External focus is the cultural lifeblood that keeps

innovation going – be curious, keep learning

• Most things that go wrong with innovation can be

attributed to internal focus – excessive risk

aversion, process focus, bureaucracy etc


Digital Culture

Consumer Services

• Does your business have a digital culture or an

analogue culture

• Your digital strategy must be part of an

integrated, open culture – fix the company

culture and infrastructure

• Create a digital command centre – air traffic

control for all your digital activities

• Organise digital learning sessions – digital labs

• Establish an innovation platform to encourage

idea submissions from the team

PLAYwith images and frames



INVENT

LISTEN

DEPLOY

DISRUPTOr be disrupted.

What Success Looks Like

VISA

• Created a digital division

• 500 million cards in Europe

• Future where all cards are digitised and

available for use in mobile form

• Developing digital wallets

• Removing friction from the retail

experience via V.me by Visa – a new

digital wallet with a 4-step buying process

– no need for lengthy shopping carts

• Mobile money transfer services using just

a mobile phone number

• Future concepts of putting payments into

cars – combining connectivity and

continuity to complete the customer

journey

FT

• In 2000, the US newspaper industry

generated $60bn in advertising – 10 years

later this was down to $20bn

• UK publishers have closed 181 titles in

the last 10 years

• In 2001, with 90,000 subscribers on print,

FT started to charge readers for access to

content. In 2007, used metered charging

model using consumer demand to price

content

• In 2014, FT subscriptions and sales

reached an all time high of 700,000

• Digital subscriptions increased 23% YOY

• Digital subscribers accounted for two-

thirds of the total paying audience

• Mobile accounts for 50% of FT’s traffic

1 billionThe number of people that the BBA

estimates by 2017 will have used

their mobile devices for banking.

Source: British Banking Association (BBA)

20205 Year Digital Roadmap

Bold

Agile

Disruptive

Adaptable

Embrace Digital Transformation




Build Your Digital Culture

Innovate, Iterate & Disrupt

Data & Customers

In our digital world, speed

and convenience wins.

How will your business use digital

to stay relevant and useful to

your customers?

Roundtable Question