TAI 2017

Developing the digital offer

Michael Appleby

Director - Altair

26th April 2017

Introduction What this session will cover

1 – Setting the context for digital change

2 – Future Gazing, Future Shaping – how the sector is transforming

3 – Developing the digital offer

Setting the context for digital change

Analogue

Digital

Internet

Social

Mobile and

4G

Broadband

and wifi

Maturists Baby boomers Gen X Gen Y Gen Z

What’s next?

Smart everything

Artificial intelligence

This year – digital natives will be

the majority customer segment

Setting the context The speed of change

Same

needs New options

New ways of

doing

business

In many areas customer needs have remained consistent, but technology has created new possibilities and is shifting the way individuals behave.

This is leading to organisations needing to adopt different operating models.

Banking Banking with

support when

needed

Online, at any

location at any

time

Closed branches,

staff working 24/7,

online chat etc.

Grocery

shopping I want food

Online,

delivered at a

time to suit me

Online stores,

distribution

arrangements

Setting the context Technology and changing behaviours

Partly in response to changes in technology, but also due to experiences in other sectors, the expectations of customers on the relationship they

have with a service provider is dramatically changing.

On demand services

Simplicity and ease of

access

Great customer service Personal experiences

Setting the context Changing customer demands

Setting the context Why should you change?

“It is not the strongest species that

survive nor the most intelligent, but the

ones who are most responsive to

change”

Charles Darwin

Setting the context Why should you change?

In 1975 Steve Sasson – an

employee at Kodak –

invented the first digital

camera but was told to

‘shelve the idea’ by his

managers’.

Setting the context Scale of digital change

Revolution Evolution Stagnation

Future Gazing, Future Shaping - How the sector is transforming

Future Gazing, Future Shaping Overview

Altair, working in partnership with 3C, launched a sector-wide

research project in August 2016.

Surveyed over 70 providers, interviewed 20 Executives and

carried out desk top research.

From this, developed a series of three reports entitled ‘future

gazing: future shaping’ to address three main questions:

1. What do people see as the vision for how a housing provider will

operate in 2025?

2. How are organisations approaching transformation?

3. What can be learnt from others activities (both in and out of the

sector)?

Intended to stimulate discussion and debate on the

possibilities for the future.

Future Gazing, Future Shaping What will the sector look like in 2025?

Competition for customers will

be the norm

Diverse product range catering

for niche customer markets More commercial business

models Agile working

De-regulation allowing new

entrants into the sector

Digitalisation and the ‘internet

of things’

Digital conservatives

Tend to favour prudence over innovation and are typically sceptical of the value of new

digital trends

Digital beginner

Have done very little to digitalise services but are investigating their options

Digital fashionista

Have implemented or experimented with digital applications. Some of these initiatives

may create value, but many do not

Digirati

Understand how to drive value with digital transformation and have invested in & have

carefully coordinated our digital initiatives

Other

Future Gazing, Future Shaping How does the sector see itself now?

How are organisations transforming?

Processes

69%

Digitalisation

66%

Culture

61%

Customers

58%

What are the main drivers for

transformation?

Increasing efficiency – 61%

Improving customer experience – 53%

Delivering the corporate strategy – 34%

Future Gazing, Future Shaping How is the sector transforming?

There is a significant “push” toward digitalisation amongst our survey respondents’ organisations; with over 85% focussing on looking at ways of working (such as flexible, mobile and home working) and developing customer access channels.

Back office processes is an area that appears to be seen as less of a priority in the sector despite the significant potential for efficiencies to be delivered.

Potential skills gap. half of organisations stated that they don’t have the skills in-house to deliver their planned transformation

Future Gazing What’s happening now?

What are organisations prioritising for

digitalisation?

Future Gazing, Future Shaping Who is the sector learning from?

Respondents widely recognised that it is

important to look beyond housing in the

search of innovation applicable to their

business.

The retail, banking and online market place

industries were cited as key sectors that

housing organisations can learn and take

inspiration from.

Future of housing Changing operating models

Traditional

Reception

Traditional housing

officer

Specialist

Demand

Co

mp

lexity

The future?

Contact centre

Digital on-demand

Local and mobile staff

(Remote) Specialists

Demand

Co

mp

lexity

Future Gazing, Future Shaping Interesting innovations - Housing sector

Drones to support

asset services Smart Homes and the

Internet of Things

Virtual reality

Wearable technology

Agile and flexible

working

What are others doing now to transform the way they operate?

Data, data and more

data

Future Gazing, Future Shaping Interesting innovations – Other sectors

Developing artificial intelligence

Virtual contact centres

Combines customer data and wearable

technology to provide unique customer

experiences

Gamification of services

A customer focused digital platform

Developing the digital offer

Target Operating Model

Strategy

Cu

sto

me

rs

Pro

ce

sses

Org

an

isa

tion d

esig

n

Te

ch

no

log

y

Pe

op

le a

nd

cu

lture

Not only who your

customers (internal

or external) are, but

your relationship

with them and how

they access

services

Right people, with

the right skills in

the right

environment to

drive performance

Lean and efficient,

designed to meet the

needs of your

customers

Clarity on functions,

locations and flexible to

meet changing demands

Robust and designed to

support the delivery of all

other elements

Clarity in vision,

value proposition

and clear and

measurable targets

Developing the digital offer It’s not just about technology!

Developing the digital offer The golden rules

Rule 1 Lead from the top

Rule 2 Benchmark – Quantify your current position

Rule 3 Don’t recreate the wheel – Learn from others who

have been through it

Rule 4 Create the digital vision – And share it to create a

common goal

Rule 5 Return on investment and prioritise – Consider return

when prioritising projects

Rule 6 Digital by choice – Customers will use digital if its

quicker and easier

Rule 7 Automate – Automate where at all possible

Rule 8 Smartphone first – Design for interaction on

smartphones

Rule 9 Digital assist – Redirect staff to assist customers who

need help

Rule 10 Incentivise and motivate – Consider carrots and sticks

to achieve shift

Rule 11 Analytics – Measure which channels are being used

Rule 12 Data is king – Your data much be accurate, available

and secure

Rule 13 Cultural transformation – Involve staff and celebrate

success

Good luck!

Michael Appleby - Director

Altair Ltd

michael.appleby@altairltd.co.uk

07545 314 749

Property People Strategy & Governance Finance