Digital Maturity AssessmentTM of the Sports and Entertainment Industry

@StratfordMgrsDT #DigitalMaturity #Seat2015

SPORTS AND ENTERTAINMENT

DIGITAL MATURITY ASSESSMENTTM

Conducted as part of the Sports and Entertainment Alliance in Technology Conference

held in San Francisco July 19 – 22, 2015


Introduction /Evolution of Digital

What we call “digital” today goes well beyond the typical responsibilities

of IT teams. Digital defined as channels being used to access

and enable transactions and interactions at any time on any platform and

device.

Digital has become a significant driver for the bottom line in terms

of cost savings and revenue uplift.

Therefore, what we call "Digital Maturity" has evolved from being able to

leverage digital technology only in customer and marketing channels to

leveraging digital and technology holistically across the enterprise.


The Challenges

In light of this: • Who drives the digital agenda? How do you coordinate the

resources across the organization? • Who is responsible for performance when responsibilities crosses

the entire organization?• How do you prioritize what to do first?• How do you develop a long term road map yet remain nimble, and

adopt a test and learn mentality?


What is the Digital Maturity AssessmentTM ?

• As part of the SEAT 2015 conference, Stratford Managers Corporation gave participants

from the pro sports, college, ticketing and venue industries access to the Digital Maturity

AssessmentTM online.

• The assessment is based on a survey evaluating an organization’s digital readiness

against five key dimensions that have been proven to drive digital performance:

1. Strategy: Enterprise vision, opportunity assessment, channel strategy

2. Customer Experience: Customer insight, ownership of customer experience

3. Technology and Data: Systems, analytics, platform and partner integration

4. Operational Processes: Processes supporting execution of strategy

5. People and Culture: Skills, behaviors required to capitalize on digital opportunities


What is the Digital Maturity AssessmentTM ?

Those five performance drivers are evaluated against four stages of maturity to provide a

Digital Maturity ScorecardTM back to the organization.

STAGE 1

Ad Hoc

STAGE 2

Emerging

STAGE 3

Advanced

STAGE 4

Optimized

Five Dimensions

1. Strategy

2. Customer Experience

3. Data and Technology

4. Operations/Manageme

nt

5. People and Culture

Non-existent or ad

hoc

Not understood

Not consistent

Not organized

Not formalized

Intuitive decision

making vs. data driven

Not documented

Occurs when necessary

Evaluated occasionally

Somewhat repeatable

Consistent and

Documented

Predictable

Evaluated often

Well managed

Understood

Continuous and

effective

Integrated

Proactive

Usually automated

Always evaluated


Who Participated

64%

12%

23%

80 Professional sports teams

from the NHL, NFL, MLS,

NBA, PGA, MLB, as well as

college teams and venues.

*The group included a few

ticketing organizations not shown

in this sector breakdown


Output / Benefits

Participating organizations received their

personalized scorecard analyzed against the

group’s average as well as:

• Immediate insight into digital strengths and

weaknesses across different parts of the

business compared against industry standards

• A blue print to take back to the rest of the

executive team for what actions to take for short

term rapid gain and longer term performance


Findings /Highlights


• From a total possible score of 72 (which would mean

the organization is in the 4th level of maturity, optimized

across all dimensions) the industry average was 43.5

• The digital maturity scores of individual organizations

ranged from the lowest at 25 to the highest at 65

Top 4 Challenges:

1. Lack of enterprise

vision and executive

buy-in

2. Collaboration

3. Appropriate funding

and resources

4. Customer data and

insight


Enterprise Vision

Ad Hoc4%

Emerging29%

Advanced54%

Optimized13%

• The majority (54%) say certain

departments leading the way. There is

collaboration amongst the teams and

resources are set aside but strategy is

not necessarily fully aligned.

• 29% say there is a basic digital strategy

in place with some executive support and

funding is by department.

• Only 13% said there is an integrated

enterprise digital vision, owned and

communicated by the Executive team

with dedicated annual funding.


Customer Experience

Everyone indicated that customer experience (CX) is a priority, however

the degree to which it is managed collaboratively and measured varies

greatly:

• 6% say there is no clear ownership of the CX

• 38% say CX is on the agenda of certain departments but

managed in siloes

• 39% say CX is part of enterprise vision and cross functional

teams are in place

• 17% can say that the CX is being proactively measured and

monitored.


Customer Journey/Channels

Major efforts are underway to understand and map the customer

journey (experience) across digital channels. This requires a strong

data and analytics strategy.

• Although 30% indicate they have a cross-channel strategy in

place with cross-departmental collaboration, only10% say the

role of each channel in the path to purchase is currently

understood.

• And only 5% indicate the customer experience is currently

consistent and seamless across channels and platforms.


Engagement /Listening

Ad Hoc6%

Emerging38%

Advanced46%

Optimized10%

• The majority (46%) indicate that the value of

social media is understood across the

organization and that some objectives and

KPIs are in place along with a cross

functional team.

• 38% report that they have a social media

presence but it’s not yet tied to business

outcomes.

• 10% report having a full social business

strategy in place with shared tools, real-time

engagement with customers, clear policies

and objectives tied to business outcomes.


Technology Governance

When it comes to technology governance and oversight, there is quite a bit of

divide:

• 47% say technology assets are known, however governance is not always

clear, there is project based budgeting as required.

• The other half (53%) report governance is firmly established, there is

collaboration and sharing of resources across the organization with dedicated

annual budget.

• Many (58%) are struggling with platform integration and legacy systems but

37% have a forward facing road map to deal with this.

• Not surprisingly for the sports and entertainment industry, 69% say there

is a high level of partner integration to improve customer service and fan

experience.


Data and Analytics

Ad Hoc3%

Emerging37%

Advanced51%

Optimized9%

• The majority (51%) report that the value of

data is recognized and an enterprise

strategy is being formed, data is being

mapped and integrated where needed.

• 9% have already accomplished this; data is

secure, accurate and integrated. The

velocity of data-driven decision-making has

progressed to weekly or daily.

• 37% say that data is analyzed and shared

manually; there are recognized gaps in

data and accuracy.


Operational Processes

Ad Hoc8%

Emerging56%

Advanced21%

Optimized15%

• The majority (56%) indicate that

project planning is being done in

siloes; there is recognition for the

need to further align efforts and

resources.

• 21% say that large initiatives at the

enterprise level are agreed upon but

only 15% report that a fully

integrated digital road map is in

place with strong Executive

alignment.


Operational Efficiency

Ad Hoc8%

Emerging44%

Advanced42%

Optimized6%

• Only 8% say that there is little to no

integration between physical and digital

channels used to serve the fan/customer.

• 44% say that technology is being

leveraged for core customer services (e-

commerce, ticket exchanges etc.) and

another 42% report there is a proactive

plan to transition to a digital-first approach.

• Only 6% can report that all steps in the

customer value chain are fully optimized

based on the value to the customer and

the business.


People and Culture/Skills

Ad Hoc6%

Emerging51%

Advanced32%

Optimized11%

• The majority (51%) indicate they have

limited resources and for the most part,

junior staff are assigned to digital

channels; there is no proactive plan for

training and education.

• 32% say there is senior level oversight of

the digital strategy with yearly education

and training budget.

• Only 10% indicate there is C-suite

oversight and know-how and that training

is proactively mapped against the goals

of the digital strategy.


Internal Engagement/Collaboration

• 40% say they have basic tools such as a simple intranet to help with internal

collaboration but it is largely supporting one-way communications.

• Another 40% say digital tools and technology are proactively used to facilitate

information sharing and workflows but only 11% say these tools are currently

leveraged to fully engage the staff in the enterprise digital strategy.

• Not surprisingly, 74% indicated that innovation is encouraged within their

organization and new ideas are welcomed but only 18% said a “test and

learn, fail fast” mentality is an accepted mode of operating.


Building Blocks

What will have the most impact in

raising your organization’s Digital IQ?

Organizations that are deriving the most value from digital channels have

common building blocks which contribute to their high level of digital

maturity…


Six Game Changers

1. Agree on an enterprise vision with full Executive participation.

• Without an agreed upon vision for where the organization is headed,

followed by full staff engagement, all other points below will be a

challenge. The first step in the visioning process is to understand your

starting point /current state.

1. Prioritize projects. Align resources.

• Build an integrated road map (2-3 year focus)

• Pick one or two focus areas and make big strides vs. making small

steps in multiple direction. This allows for progress much more quickly

and at scale.


Six Game Changers

3. Invest in data and analytics to drive customer insight.

• Almost anything can be measured. The right question is rather

what is meaningful? What do we need to know about our

customers in order to drive more value both for them and the

business.

4. Strive to understand the entire consumer journey.

• Study behaviors and expectations throughout every stage of the

customer lifecycle / fan experience.

• It’s not enough to meet the basic expectations. We must now

anticipate and plan for the next need. (This requires a solid data

and analytics strategy, hence point 3 above.)


Six Game Changers

5. Collaboration /Test and Learn

• Agree on a governance model. How will decisions be made and how

will we coordinate resources to meet our agreed-upon goals?

• Adopt a test and learn mentality. Although digital strategy requires a

long term road map, it’s also a journey where change is not the

exception but the norm. Start small with pilot projects.

6. Build and invest in digital skill sets.

• Digital is the new normal. It is inherent in every job and should not be

isolated. Develop or recruit digital talent across the organization, not

just in marketing.


Wrap Up

If you did not participate in the Digital Maturity AssessmentTM for SEAT

and would like to assess your organization’s readiness or to discuss how

we can help to develop your enterprise digital vison and road map, please

contact:

Isabelle Perreault

Vice President, Digital Transformation

Stratford Managers Corporation

[email protected]

www.stratfordmanagers.com

http://www.stratfordmanagers.com/

Digital Maturity AssessmentTM of the Sports and Entertainment Industry

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