Post on 09-May-2015
Digital Transformation
The New ‘New Thing’
That moment of epiphany
Being Digital by Nicholas Negroponte (1995)
“Anything that can be digitised, will be”
“Unwieldy atoms” will undergo the ‘Negroponte Switch’
Suddenly, websites were merely furniture within a much larger digital house
Old New Things
2011 - Responsive2012 - Big Data2013 - Internet of Things2014 - Digital Transformation
2015 - ???
Gartner Hype Cycle
The thing about new things...
2014 - Digital Transformation
CapGemini“...the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new business models).”
Altimeter Group“...the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle.”
eConsultancy“...the journey from where a company is, to where it aspires to be digitally.”
...is that no one can agree on a definition...is that no one can agree on a definition. However, digital transformation seems to occur...
either...
As a timely response to changes in consumer behaviour, some of which may have been previously anticipated
When organisational panic sets-in, based on the realisation that something needs to change about their digital function, even if they're not quite sure what
or...
The Key DimensionsInternal(often panic)
Structural- Digital within the org-chart.
Functional- Mindset embedded elsewhere?
Procedural- Internal systems and processes.
External(often timely)
Customer Experience- Servicing the empowered consumer.
Engagement- Marketing and communications.
Innovation- For product, service and business.
“Digital Transformation is not an end-goal, it’s a continuous journey”
Brian Solis
1. Customer First, Organisation Second
General Motors formed a Customer Experience (CX) Group and changed how decisions were made and reward structures
Source: Altimeter Group
Start thinking about the entire customer journey
74% of consumers rely on social networks to guide purchase decisions
Source: Gartner
Consumers who research across online, offline and mobile channels spend 18-36% more than those who don’t
Source: BazaarVoice
1. Customer First, Organisation Second
1. Is this need being driven by the org or the customer?
2. How will this improve the CX? 3. Will it help to democratise the CX
throughout the organisation?
Stop building digital stuff… until you know the following:-
Not people vs. technology. Tech should be used not to distance
orgs from people, but instead to
bring them closer
From here to here in just over half a decade
● Wrong demographic● Brand in trouble● 2% annual growth
against industry average of 6%
● Nearly trebled income between 2006-12
● Reestablished luxury brand status
● CEO poached by Apple to reinvent stores
...required systematic organisational change facilitated by digital channels
2013
2006
2. Relinquish ControlFrom Gatekeeper to Enabler
Digital as a dimension of everything
"It's my job to enable and embed digital, then to operationalise digital disruption throughout the organisation"
John Stack, Head of Digital Transformation
Tate Digital Transformation Project Aims
1. Establish a digital culture2. Embed digital practice across
Tate3. Embed digital skills across
Tate4. Introduce new transparent
production processes and digital governance
5. Operationalise digital disruption
6. Change the practice of the Tate Digital department to support these changes
7. Openness and transparency
90% of companies lack suitable digital skills yet only 46% of organisations are investing in the development of digital skills
Source: Capgemini
2. Relinquish ControlBuild Capacity, Not Fiefdoms
Digital / Social
Are digital and social business units becoming their own silos?● Digital/Social business units
are often unfamiliar with the entire customer journey
● Are subject-matter specialists for digital and/or social enough when such tools and skillsets are being democratised?
● Universal digital ‘ownership’ under a single business unit is becoming obsolete
53% of senior executives say that the top cultural barrier to digital transformation is competing priorities
Source: MIT Sloan Management / Capgemini
3. Structural & FunctionalBottom Up and Top Down
Strategy Structure
ProcessesFunctions
Technology
ROI
InnovationStarbucks CDO worked with CIO, developed a cross-functional team ‘intrapreneurs’
C-Level
Practitioner
Mid-Mgt.
65% of staff believe senior management’s digital knowledge is average or less
Source: Econsultancy
27% of senior executives rate digital transformation as a “matter of survival”
Source: MIT Sloan Management / Capgemini
Owen Valentine Pringle(Outgoing) Director of Digital Communications, Amnesty International
/in/owenvalentinepringle/