Digital Transformation Blueprint

Blueprint
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“ The greatest danger for most of us is not
that our aim is too high and we miss it, but
that it is too low and we reach it.
Michelangelo
If you strive for greatness, you needto aspirefor greatness.
Preface
Aspiring for Business Change

GUIDING PREFACE
Preface

This discussion document…
is intended to be a tool of inspiration to have a conversation among
key internal sponsors, champions, stakeholders and employees alike to align the
aspiration of digital transformation efforts into a highly integrated holistic
organizational transformative vision and process to benefit the business as a whole
across business operations, geographies, business units,
departments, brands, and products.
2022 offers the opportunity to
re-envision digital transformation.
Preface

For many organizations aspiring for transformation,
efforts may be viewed as disjointed…
If this is your situation, it’s time to bring stakeholders back together to revisit
the digital transformation initiative and discuss what it can be at an
organizational level for greater business success.
Preface

Albeit, comprehensive in design, the content contained within offers
inspiration, aspiration and ideation for impacting business change.
I encourage you to take the time to review its content in full to jumpstart
and renew thought processes for how you can make change individually, collectively,
and collaboratively as one organization for the benefit of your
business success, growth and prosperity.
This document is designed to be the catalyst to re-engage the conversation.
Preface

A clear vision and strategic direction are several core reasons
organizations continue to struggle with their digital transformation initiatives.
Source: MIT Sloan Management Review Preface

The most successful organizations understand that the power of a
digital transformation strategy lies in its vision, scope and objectives.
Less digitally mature organizations will tend to focus on individual technologies
and strategies that are decidedly operational in focus.
Source: MIT Sloan Management Review Preface

As digital technologies further emerge and mature,
technology becomes the catalyst for digital disruption reinforcing
aspirations for business change and digital transformation.
But technologies are not necessarily the underlying reason
necessitating business change and transformation.
Preface

Consider how digital technology has influenced
consumer communications, sharing, preferences,
decision making, and commerce.
This impact of technology on consumer behaviors
simply cannot be overlooked.
Preface

Technology
has become the enabler of disruption…
whereas…
Changing Consumer Behaviors
have actually become the business disruptor.
Preface

Therefore, when aspiring for digital transformation,
the focus should be on the customer and the relationship with the consumer
using technology as the bridge to impact transformational change.
Preface

Using the words of a notable technologist and visionary
which remains highly relevant to today’s digital transformation…
Preface

“ You’ve got to start with the consumer
experience and work backwards to the
technology.
Steve Jobs
Preface

TOPICS & CONTENT
Content
Designing a Blueprint for Business Change

Discussion Content
PERSPECTIVES 17
The Opportunity 18
ReflectionPoint 41
Paradigm Business Shifts 54
What History Can Tell Us 77
Understanding Disruption 96
Disruption Ahead 119
Consumer Impact 133
Finding Inspiration 149
GAFA Business Models 158
NAVIGATING TRANSFORMATION 178
COMMON CHANGE BARRIERS 180
ADDITIONAL CONSIDERATIONS 192
PILLARS OF CHANGE 196
Page Navigation is Hyperlinked
ACTIVATING TRANSFORMATION 211
1 LEADERSHIP 213
q Change Agents 215
q Value Proposition 228
q Vision 236
q C-Suite Support 250
2 EMPOWERMENT 255
3 INNOVATION 274
q Marketing Design 280
q Process Engineering 288
• Discovery 290
• Digital Footprint 295
• Campaigns 298
• Journeys 301
• Touchpoints 308
• Integration 313
• SEM 318
• SEO 321
Content
Designing a Blueprint for Business Change
Innovation (process engineering cont.)
• Paid Media 324
• Email Marketing 327
• Social Media 332
• Mobile Marketing 335
• Content Marketing 343
• Community Mgmt. 381
• Data& Analytics 391
• Business ROI 426
• Workflows 431
q Blueprint Review 439
4 CUSTOMER CENTRICITY 444
q Customer Experience 448
q Operations 477
q Business Model 503
FINAL THOUGHTS 518
CHECKLIST REVIEW 531
THE DIGITAL CHALLENGE 537

PERSPECTIVES
CATALYSTS FOR BUSINESS CHANGE.
Finding Opportunity for Business Change Perspectives
1 Content Navigation

THE OPPORTUNITY
WHERE CHANGE OFFERS OPPORUNITY.

Fundamental business change just doesn’t happen.
It is common for transformation journeys to have many starts and fails.
Organizations do not quickly transform overnight.

The good news, there remains limitless opportunities for organizations
in their transformation journeys to work together and to continually evolve for
impacting business change through a common vision and iterative
transformative process via collective, sustaining collaboration.

This objective review is to realign your ongoing efforts and realign
the vision and the requisite integrated business systems, platforms, and processes
to move digital transformation initiatives to the next step…
while at the same time serve to… renew and expand organizational
inspiration, aspiration and advocacy for adopting business change.

DIGITAL TRANSFORMATION IS…
THE RE-ALIGNMENT OF, OR NEW INVESTMENT IN, TECHNOLOGY, PROCESS,
AND BUSINESS MODELS TO MORE EFFECTIVELY ENGAGE CONSUMERS AT
EVERY TOUCHPOINT IN THE CUSTOMER EXPERIENCE LIFECYCLE.
Using a common definition as aligned to where change can be most affected,

Although the impact of digitization is not new,
the digital economy continues to evolves which presents continual
unprecedented challenges for all C-Level executives.

We are now living in an increasingly complex, ever changing, digital world.
Information flow and data continues to grow at exponential rates with
technology advances bringing about fundamental and rapid changes to our society.

We just need to think about the recent emergence of Web 3.0
as the next step in the development of the internet.
Web 3.0 has the potential to be just as disruptive and to usher in a
significant paradigm shift as much as Web 2.0, where the fundamental ideas of
decentralization, openness and increased consumer usefulness are now
becoming the underlying foundation of the Internet.

Now more than ever, within this environment,
Smart Organizations are realizing that adaptability remains
paramount to future business success.

As a result, there is an inherent need to rethink the entire customer journey.
This, more often than not, has become the main facilitator for driving
both new and renewed Digital Transformation initiatives.

From the initial stimulus to the ultimate moment of truth…
the consumer is now at the center of all transformative change.
UMOT > ZMOT: Shared expressions from trusted impressions
Shared experiences affect every moment of truth
Discovery Consideration
to Purchase
Purchase &
Experience
Shared
Experience
Awareness
Stimulus
Zero
Moment
Of Truth
First
Moment
Of Truth
Second
Moment
Of Truth
Ultimate
Moment
Of Truth
source: AltimeterGroup

And this is even more relevant in a post-pandemic world
as commerce linked to the customer experience becomes more valued
in consumer purchasing behaviors.

Companies of all sizes – and across all industries continue to
facecommon pressures fromcustomers, employees and competitors alike
to begin or speed up their digital transformation efforts.

For manyorganizations,a common, onerous challengeexists.
Theymust iterateandinnovatein real-timewhile navigatingoutdated
businessprocessesandlegacytechnologysystems.
e.g.today,consumerfacingcompaniesare managingan averageof
44 disparatefront-end technologysystems.
Source: Salesforce Finding Opportunity for Business Change Perspectives

As organizations consider deploying
Digital Transformation initiatives, it must first be understood that
it will be a direction unique for every organization.

Implementing new technologies is certainly part of the equation.
However, the value proposition remains to be the customer relationship
which will strategically empower a vision through the necessary transformational steps
to realize the benefits for the possibilities new technologies create.

It will influence front- and back-end platforms, systems, workflows and collaboration
impacting all aspects of business including business models; operational processes;
marketing; data analytics; product innovation; logistics; and commerce.

All of which will influence an organization’s
Sales, Marketing, Customer Service, IT, and HR business functions
and reach across geographies, business units, and operational teams
for impacting every customer touchpoint.

And, in the end…
Digital Transformation will be about creating greater value
across the entire business ecosystem which will benefit the organization
at a holistic level to serve customers and to better compete
in a changing digital world.

Where VALUE is defined by delivering better
omnichannel brand experiences which benefits the entire organization…
by getting closer to customers leading to greater business
outcomes, profitability and success.

THIS IS THE OPPORTUNITY.

This is where leadership and vision
creates fundamental business change through
strategy, process and culture.

As a common and natural step in any transformation journey,
the discussion objective proposed today is self assessment and reflection.
This will allow you, as a change agent, to re-visit and re-frame the discussion
based on your own organization’s current progress to date and to refine the
transformation roadmap for how best to move forward.

REFLECTION POINT
SELF ASSESSMENT. REVISITING THE NEED FOR BUSINESS CHANGE.
Reflection Point
Assessing Need for Business Change

“ Coming together is a beginning. Keeping
together is progress. Working together is
success.
American industrialist and automaker Henry Ford
Assessing Need for Business Change Reflection Point

This proposed Reflection Point is to re-engage in the digital transformation
discussion to review and refine your initiatives underway which can impact core
business systems, processes, methodologies, frameworks, analytics,
and ultimately the customer experience.

Renewing the discussion should steer meaningful and insightful
stakeholder conversations across business operations to assess your progress
to date and to further advance concepts in a continuing effort for developing
actionable transformation roadmaps.

As a self reflection point, sponsors and champions must re-emphasize
to executives, stakeholders, and employees alike…
Digital Disruption Has Indeed Changed Business As Usual.

To set the baseline for discussion…
Stakeholders must understand digital disruption occurs when
new technologies and business models affect the consumer value proposition
of existing goods and services.

And, contrary to common belief, digital disruption impacts
all channels across the online and offline spectrum as it influences all
customer touchpoints and shapes new consumer purchasing behaviors
impacting the business bottom line.

Therefore, to succeed with any digital transformation initiative,
efforts will need to align across the organization holistically.
Progressive roadmaps must define how an integrated digital ecosystem
can support efficiencies across operations, business units, brands, departments,
and consumer touchpoints for creating greater business outcomes.

Fundamentally, there are three core elements to digital transformation.

Of significant note, transformation can not and must not
be done in silos. There must be collaboration and integration at all business levels
across all three transformation areas.
This is where many organizations fail in their transformation efforts.

People who bet against the
Internet [digital], who think that
somehow this change is just a
generational shift, miss that it is a
fundamental reorganizing of the
power of the end user.
“
- EricSchmidt,GoogleChairman

Consider the paradigm shifts as occurred over time
affecting business change.

THE BUSINESS LANDSCAPE HAS SHIFTED NECESSITATING
BUSINESS CHANGE IN A DIGITAL WORLD.
PARADIGM SHIFTS
Business Shifts
Recognizing Global Business Change

IT’S NOT BUSINESS AS USUAL.
Recognizing Global Business Change Business Shifts

The manufacturing economy used technology
to scale production and reduce costs to produce affordable products
and goods using economies in scale.

The distribution economy used technology
to connect markets and suppliers to consumers.

The information economy used technology
to connect supply chains to the world population through the Internet.

Now, the experience economy uses technology
to connect brands to individuals, peers and groups.

Reflection Point
We Are Now Living in the Experience Economy
Source: Forrester Research
Age of Manufacturing
Mass manufacturing makes
industrial powerhouses
successful
Age of Distribution
Global connectionsand
transportation systems
make distribution key
Age of Information
Connected PCs and supply
chains means those who
control information flow
dominate
Age of the Customer
Power comes from engaging
with empowered customers
Ford,RCA,GE,
P&G,Sony
Wal-Mart,UPS,Toyota,
CSXRailroad
Comcast, Amazon,
E*Trade, American
Express,Google
Amazon,Target,Netflix,
Best Buy,Apple,Starbucks,
Zappos

All the while as the emerging subscription economy is using technology...
to connect consumers to recurring subscriber products and/or services
where brands are emphasizing customer retention over customer acquisition.

REFLECT ON BUSINESS IN THE PAST
Market change was slow, steady and predictable.
Important variables (i.e., pricing, adoption rates) in a market
were known and understood.
Business model shifts were evolutionary with little volatility.
Product development processes were easily defined
and (relatively) simple to execute.

NOW REFLECT ON BUSINESS TODAY
Rapidly changing technology advances.
Very short product cycles.
Market players are more interconnected.
Networks of relationships between businesses, between business
and consumers, and consumers-to-consumer are denser.
Digital [data] feedback loops are quicker.
Markets are moving faster and more unpredictably
than ever before.
Consumer behaviors and preferences are rapidly changing.

SOMETHING INTERESTING IS HAPPENING
Bitcoin, the world’s biggest bank,
has no actual cash.
Uber, the world’s largest taxi company,
owns no vehicles.
Facebook, the world’s most popular media owner,
creates no content.
AirBnB, the world’s largest accommodation provider,
owns no real estate.
Alibaba, the most valuable retail owner,
owns no inventory.
Source: TechCrunch Recognizing Global Business Change Business Shifts

SOMETHING ELSE IS HAPPENING TOO…
Internet users are generating
2.5 quintillion bytes of data each day.
Every person generates
1.7 megabytes of data per second.
Google receives over 3.5 billion searches daily.
WhatsApp users are sending 65 billion messages daily.
Worldwide more than 3.6 billion people use social media
accounting for 33% of all total time spent online.
Netflix uses data to save
$1 billion per year on customer retention.
Source: techjury.net Recognizing Global Business Change Business Shifts

From pushing… To attracting.
PUSH PULL
NOW, CONSIDER THESE MARKETING SHIFTS...

From interrupting … To inviting.
PUSH PULL

From unfocused… To focused.

From control… To many unknowns.

From avoiding risk… To managing risk.

From disjointed
(customer) experiences…
To seamless omnichannel
(customer) experiences.

From transactional… To customer centricity.

At the center of all of these paradigm shifts…
advances in technology have enabled digital disruption at scale
with the Customer at the center.

There can be little debate…
Consumer Attention is now the New Business Currency.

The difference between helping and
selling is just two letters. But those two
letters are critically important to the
success of business today.
“
- Jay Baer, Speaker & Author

History too can offer us some valuable lessons to inspire change.

DISRUPTION’S IMPACT ON BUSINESS PROSPERITY.
HISTORY LESSONS
History Lessons
Embracing Global Business Change

Consider the Evolution of Branding.
Embracing Global Business Change History Lessons

Reflection Point
The 4 Ages of Brand Evolution
Brands serve as a market
positioning identifier, setting
businesses and individual
products apart from the
crowd - both visually and
verbally.
q Began as a mark of ownership,
trust, and quality, and evolved
into a more sophisticated symbol
of differentiation and
identification.
q Adopted slogans and mascots.
q As commerce became global and
markets became saturated with
products, the need for product
differentiation increased, as
did the need to help customers
identify and choose.
q Mass media promotion on radio
and television became prevalent.
Brands become valuable
business assets that
contributed significantly
to financial performance -
driving choice, loyalty, and
affording the owner a
premium.
q Increasingly views on building
brand equity changed where it
was recognized they required a
combination of business activities
covering products and services,
environments, culture, and
communication to create the total
brand perception held by
customers and employees alike.
q Marketing expenditures no longer
seen as “cost structures” but
rather “investments” where
Brand strategy begins to be
intertwined to the core business
strategy.
q Digital promotion emerges with
introduction of Web.
Brands receive deeper
appreciation for the role they
play in delivering satisfying
and differentiated consumer
experiences.
q Increasingly brand support
required seamless, contextually
relevant interactions to create
an ecosystem of integrated
products, services, information
and entertainment: both physical
and digital.
q Brands like Google, Apple,
Facebook and Amazon (GAFA)
reset customer expectations
raising the bar for expected brand
experiences.
q Consumer empowerment and
two-way conversations required
brands to follow new rules for
creating advocacy, influence,
and engagement across a growing
digital landscape.
q Presence and promotion across
digital, social media, and mobile
increased.
Brands begin to strategically connect
business to people and people
to each other serving as enablers
of both business and personal
value creation.
q It’s a New era - one of ubiquitous
computing requires the real-time
analysis of consumer data to identify
human (behavioral) characteristics.
q Data analysis leads to consumer
insights aiding strategic directions for
brand building.
q New rules begin delivering truly
personalized and curated experiences
to satisfy the new individual
consumer Mecosystem culture.
q Integration requirements across
digital and offline creates catalyst for
business transformation focused on
customer centricity guiding principals.
q Customer journey mapping guides
new branding initiatives and
directions.
Source: Interbrand Embracing Global Business Change History Lessons

Over the last 75 years,
branding and customer marketing has significantly evolved.
During each evolutionary stage, companies had to respond to changing consumer
behaviors to engage consumers and to remain relevant
or risk obsolescence.

The risk is real…
no organization or industry is an exception.

The net impact on today’s business remains.
Failure to adapt to the new realities for engaging with consumers created
through waves of digital influence can and will fundamentally
create significant risk for many businesses.

Consider the lifespan of an S&P company is shrinking.

Source: McKinsey
1930 1940 1950 1960 1970 1980 1990 2000 2010 2013 2020
21
90
Research now reveals a trend towards shorter company lifespans.
† Average lifespan (in years) of an S&P 500 company.
(1) company is now replaced every (2) weeks
75% will be replaced in (15) years
L
i
f
e
s
p
a
n
Y
e
a
r
s

Source: Innosight Embracing Global Business Change History Lessons
Entered the Index Exited the Index
S&P 500 Churn In The Age of Disruption
Sampled companies who have entered and exited the Index since 2002.

Household Brands such as Blockbuster, Blackberry, Kodak and Nokia
all have their own story to tell. Blockbuster and Kodak had to contend with the
internet and digitization driving a wrecking ball through their business.

Blackberry and Nokia misread and then were slow to act
on more basic market segment and consumer preference shifts
– touch screens and a rich App ecosystem.

At the heart of these business struggles and many other stories like them,
companies did not or were not willing to recognize quickly evolving market complexities.
Each failed to cope and respond to the reality that their industries
were profoundly changing.

And this is where many businesses continue to fail today.
History is continuing to repeat itself as companies resist change
in the face of significant market forces and consumer shifts that are fundamentally
reshaping the business landscape of the future.

So how does a company continue to thrive in the age of digital disruption?

One approach would be for a company to have a wide economic moat,
a term coined by Warren Buffett to describe businesses that are difficult for new
competitors to gain entry to, either due to the sheer scale of the enterprise
or to an exclusive patent or other such competitive advantage.
However for most organizations, this simply isn’t possible.

The alternative is for executives to create
a sense of urgency for change within their organizations.
Embrace its own creative destruction through business change and innovation
by finding ways to stay relevant by envisioning itself as the customer and then
creating value within its own market.
This is the essence that defines digital transformation.

History tells us… if organizations are not actively
rethinking how technology, disruptive forces, and changing consumer behaviors
are impacting its future business health and prosperity…
they are risking everything.

THE GOOD NEWS, RISK CAN BE MANAGED.
With vision, commitment and action, organizations can reinvent themselves
managing risk against obsolescence.

But to manage risk is to understand risk and the disruptive forces in play.

DIGITAL DISRUPTION
TECHNOLOGY IS THE ENABLER. CONSUMERS ARE THE DISRUPTOR.
Digital Disruption
Adapting to Business Change

To manage risk is to understand disruption is everywhere
and it needs to be embraced and managed head on as technology, society and
consumers evolve at an unprecedented pace.
Adapting to Business Change Digital Disruption

Digital advances and its impact on business has changed the business landscape.
The proliferation and mass adoption of digital devices, applications and networks
are at the forefront of today’s business disruption.

Of worthy re-emphasis… as digital further emerges and matures, technology
remains to be the catalyst for aspiring to business change and digital transformation.
Not the Reason.

Advances in technology influences how people work, communicate,
share, make decisions, and purchase products, goods and services.

And, it is the technology that is enabling changing consumer behaviors
which creates the disruption in business and the need for change.

Consider… the concept of Digital Darwinism.

Digital Darwinism is the phenomenon
when technology and society evolve faster
than an organization can adapt…
[it] is a fate that threatens most
organizations in almost every industry.
Because of this, businesses not only have
to compete for today but also for the
unforeseeable future.
Brian Solis
Digital Analyst
“

Organizations who overlook the concept of DigitalDarwinism
and its impact on business prosperity and healthput themselves at risk.
Digital technologies have transitioned markets from being complicated and stable
to markets that are now complexand characterizedby velocity.

Relevancy and competitiveness now require
looking at business and the world through a different lens, adapting to it,
and then getting out in front of disruptive forces before they occur.

For digital transformation to truly impact business change,
it becomes critical for organizations to recognize both the enablers and the
resulting disruptive forces to keep in step for how consumers
engage with today’s business.

As a result, organizations must formalize and adopt
new business models, refine or create new operational processes,
develop new systems and skillsets, use data analytics, and redefine
new customer experiences to remain relevant,
competitive, and profitable.

Change may be difficult.
But successful transformation enables organizations to more rapidly
assess new opportunities and to facilitate the testing of new ideas to engage
and re-engage consumers throughout the customer journey to ensure
business prosperity and longevity.

Source: IBM
Reflection Point
Smartorganizations will transformand embracetechnological change.
Today, technological change underway is
both rapid and pervasive.
Disruptive technologies are being developed
and maturing much faster and more
profoundly than at any other time in history.
It’s a continuous cycle that is transforming
life, business and the global economy.
q Internet of Things
q 3D Printing
q Workflow Automation
q Advanced Robotics
q Artificial Intelligence
q Cloud Computing
q Big Data
q Web 3.0

Technology is actually the easy part in the transformation...
integrated front- and back-end business systems, platforms, networks,
web and digital assets, digital channels, et al.

11%
Ease &
Convenience
14%
Service &
Personal Care
12%
Trust &
Reputation
10%
Product Origin
12%
Health &
Safety
11%
Ease &
Convenience
12%
Service &
Personal Care
10%
Trust &
Reputation
7%
Product Origin
9%
Health &
Safety
21%
Quality
19%
Price
26%
Quality
25%
Price
Post-Pandemic Pre-Pandemic
While price and quality have long been
and remain the dominant motivations in
consumers’ choice rationale, other
consumer values and motivations have
lessened in influence and value post-
pandemic.
This is an inevitablelong-term
consequence of digital disruption and
the shift to digital technologies informing
and enabling purchases—with greater
acceleration fueled by the pandemic.
Each organization in their own
transformational process will need to
make an investment into understanding
how its own consumers are changing in
the wake of shifting societal changes.
Source: Acccenture
Reflection Point
Smarterorganizations will also embracechanging consumerbehaviors.
R E P R E S E N T A T I O N

The difficult part in the transformation process is the cultural change
required to adopt new business models, operating processes and skillsets to
understand and adapt for changing and shifting customer behaviors
created by digital influence.

This may require a new way of thinking.
Creativity + Innovation + Analytics + Strategy + Purpose.

Reinforcing the discussion point, digital transformation is
certainly about the technology (both as an enabler of disruption and as a
transformative organizational change component)…
but it must be understood the essence of digital disruption is
how an organization’s own consumers are adapting to technological change
and how behaviors are changing for engaging with business.

Embracing digital transformation head on affords organizations
the opportunity to leverage disruption to get closer to customers to understand
changing consumer values, motivations, buying behaviors, and purchasing preferences
for greater business benefit.

Disruption will be unique for every organization,
as why it is digital transformation is unique for every company.
There will certainly be common industry disruptors across the business landscape,
but there remain to be nuances to changing consumer behaviors
unique for every organization.

A key benefit and component to any digital transformation effort will be
understanding customer nuances and being able to adapt to consumer behaviors
much more rapidly via business intelligence delivered through data analytics.

But disruption and risk is not simply a one time event.
Managing risk is continuous which requires constant monitoring, analysis
and planning with the foresight to look over the horizon to see what’s coming next.

DISRUPTION AHEAD
ADAPTING AND PLANNING FOR THE NEXT WAVE OF CHANGE.
Planning for Business Change Digital Disruption

Over the past decade, disruptive technologies...
such as artificial intelligence, intelligent process automation, and deep data learning
to name a few have shaped and transformed how business operated.

These past technological changes of disruption are now maturing…
with new emerging disruptors further advancing and shaping how business
is conducted in a new Web 3.0 and post-pandemic world.

With foresight and proactive planning, organizations can get ahead of
the next wave of business disruptors which began in 2022…
How an organization responds to the continuous change of evolving business
disruptions will determine an organization’s longer-term success in their own
digital transformation journey.

DECISION INTELLIGENCE (DI)
WILL ESTABLISH OBJECTIVES AND MAP DECISIONS ACCORDINGLY.
Decision-making fuels organizational growth. Decision Intelligence (DI) aims to
solve the problem of siloed decision islands and help executives in their decision-
making process considering enterprise objectives as the big picture.
Source: Gartner Group Planning for Business Change Digital Disruption

INTEGRATED DATA
WILL BECOME THE MOST VALUED ASSET FOR AN ORGANIZATION.
Integrated data will become imperative for organizations to enhance
customer experiences through business intelligence. Data integration must be
flexible and resilient across platforms and to its users to simplify an organization’s
data infrastructure and to create a scalable data architecture.

HYPER-AUTOMATION
WILL BE CONSIDERED THE FIRST STEP TOWARDS DIGITAL TRANSFORMATION.
Hyper-Automation will expand process automation by identifying and
automating as many business processes as possible rapidly. It will further reduce
manual workloads and optimize business processes leveraging tools such as
Robotic Process Automation, AI, ML, Data Analytics and more
to automate processes faster.

REMOTE-FIRST ENTERPRISE
WILL BECOME THE NORM POST PANDEMIC AND SEE EXPONENTIAL GROWTH.
Remote workplaces will rise in adoption. New collaborative workforce models
will enable frictionless customer experiences with boundary-less engagements
while enabling dispersed and scalable global workforces to expand
worldwide customer footprints.

TOTAL EXPERIENCE (TX)
WILL BECOME A PRIMARY DRIVER OF BUSINESS.
Total experience (TX) combines the customer experience components of
satisfaction, loyalty and advocacy into a multi-experience to create seamless
enterprise-wide customer experiences across business operations.
It considers all stakeholders such as end-users, business users, partners,
affiliates, and employees to accelerate and drive business growth.

These new disruptive trends as forecasted by the Gartner Group
should further reinforce the need for digital transformation…
organizations simply can not use yesterday’s thinking
to approach the problems of tomorrow.

We cannot solve our
problems with the same
thinking we used when we
created them.
- Albert Einstein
“

The one thing we can counton with absolutecertainty…
futuredisruptivetrendsin technologywill continueto shape
the globaldigitallandscapeandinfluencechangingconsumerbehaviors.

Therefore,businesses with the greatest foresight will evolve
with technological advances and continually adapt for retaining
customer relevancy through business change.

Thisonlybecomespossiblewhen organizationskeep
Customersat the centerof BusinessChange.

DISRUPTION’S INFLUENCE ON CONSUMER BEHAVIORS
REINFORCE THE NEED FOR TRANSFORMATION.
CONSUMER IMPACT
Consumer Impact
Reimagining Business Change

Creating betterconsumerexperiencesis at the centerof the
valuepropositionfor digital transformation.
Reimagining Business Change Consumer Impact

And if thereis still any lingeringmisunderstandingas tothe benefit
of digital transformation,this is the opportunitytocommunicatetransformationis much more
than realizingnear-termoperationalefficienciesand profitability.

Digital transformationis trulythe reimaginationof the organization
to more effectivelyengageconsumersthroughoutthe customerjourneyto deliver
bettercustomerexperiencesat everytouchpointforsustainedrelevancyandcompetitiveness
leadingto greaterexpandedandsustainedbusinessgrowthandprofitability.

Why is this important?
Why do we need to clarify and re-emphasizethe customer
in our transformationdiscussion?

As shoppinghabitsradicallyevolve,researchshowsthat
lessthanhalfof executiveshavedefinedtheircustomerexperiencestrategies.
Source: Gartner Group Reimagining Business Change Consumer Impact

Thecustomerexperiencestrategyis the lifelineto all future,sustainedsuccess.

This becomesevenmuch more relevantwhen considering
we are now living in the ageof the experienceand the subscriptioneconomies.

Dismissing,overlookingor placing lesseremphasison this criticalguiding direction,
an organization losesthe businessopportunityfor impactingreal lastingbusinesschange
via the investmentit makesin the digital transformationprocess.

Whatwe must continuallyreinforceis…
a brand’srelevanceis nowdefinedthroughthe customerexperience
whichincludesthe sumof all engagementsa customerhaswith a business
throughouteverytouchpointin the customerjourney.

80%
of all shopperssaidthattheywill
abandona brandafterthree badexperiences.

So understandingchangingconsumerbehaviors,
and then planning for and creatingvaluedcustomerexperiences
is paramountto all futurebusinesssuccess.

No-one can disagreethatconsumershopping habits
are indeed changingwith digital.
Thegoodnewsis thatorganizationscanbe proactive
to stayahead of changeand prosper with a digital transformativemindset
usingtoday’sabundanceof availableconsumerand businessdata.

“Post COVID-era, business will need to reimagine
the future of shopping built upon the new
trajectory of technology and evolving customer
trends.
Transformation initiatives will need to include
ever changing in-demand consumer shopping
expectations, preferences, and behaviors.
It is now reported61% of customers
will spend more time online after the
pandemic than they did before.
We’re not going back to normal even as physical
stores start to open. On the contrary, customers
expect brands and retailers to not only keep up
change, but also enhance customer experiences.
Source: Salesforce
Reflection Point
Changing ConsumerBehaviors| Channels.
40%
Re-emerging channels like
delivery apps, social media,
and messaging platforms
have also become serious
commerce players, with their
share of transactions
increasing more than 20%.
Creating digital channels to
engage customers where
they are is only the start.
The user experience (UX),
personalization, navigation
(UI), and experience
integration will be key to all
transformation efforts.
Between2019and2021,
fourtypes of digital channels grew
consumertransactionshare by nearly40%
-- brandwebsites,retailerwebsites,apps,
andonline marketplaces.
REPRESENTATION

“Shopping at the edge is where consumers start —
and hope to complete — their shopping journey, usually
outside of a brand or retailer’s physical and digital space.
Channels include social media, messaging apps, and live
streaming services.
Salesforce research identified three different edge behaviors
reshaping the customer journey:
Discovery at the edge: Social media, influencers, and
messaging apps are the most popular methods for discovery.
Buying at the edge: Mobile wallets, email, and social media
represent the top digital destinations for shoppers to make a
purchase.
Service at the edge: Self-service channels (chatbots, chat,
instant messaging) and social media are the most popular ways
to engage customer service.
Reflection Point
Changing ConsumerBehaviors| Journeys.
Engagingcustomersdirectlywhere their attention is focused
creates inroadsfromthe brand/store to shoppers.
Creatingrelevant andintuitive touchpointsand directly
connecting them to desired outcomes, at the edge, will increase
engagementand conversions.
Reimagining Business Change
Source: Salesforce Consumer Impact
REPRESENTATION

The discussionso far has focusedon theneed for change.
There’smanyexamplesof companiesforwhichhavesuccessfullytransformed
andwhichcanprovideinspiration.

INSPIRATION
ASPIRATIONAL COMPANIES REIMAGINING THEMSELVES.
Inspirational Change

Success stories are growing which can aspire and lead the way.
History affords us the opportunity to study companies who are getting it right.
Aspiring for Business Change Inspirational Change

q Category: Electronics
q Best Buy saw its market share in the consumer electronics industry
dip until its new CEO brought an innovative digital perspective that
led the transformation of the company into a digital technology
leader.
q It took 7 years, but going digital has enabled Best Buy to become a
company that uses technology to enrich people’s lives, not just sell
them hot new CDs and the latest TVs.
q The company used digital technology to improve delivery times and
began advising consumers and helping them get the most out of their
digital devices.
q Best Buy eschewed snail mail and embraced digital marketing,
provided customized assistance and recommendations for consumers
based on digitally gathered data, improved delivery times, introduced
the Geek Squad, as well as a price matching program.
q Net result – their stock price rose from $23.70 in 2012 to about $98
today.

q Category: Consumer Goods
q Target added new technology in their stores, introduced online
ordering and increased their social media, web presence and online
sales to increase their market share.
q A new, remodeled, store design and greater focus on direct to
customer sales has enabled customers to discover new products, gain
easier access to popular brands and make purchases online and
directly through social media.
q The transformative digital strategy enabled deeper consumer
customization at every touchpoint.
q Net result – the company startedits retail digital transformation
efforts in 2006 and has since seen its stock value rise from a low of
$53 to $217 today with revenue increasing by 50% to more than $93
billion in 2020.

q Category: Home-BuildingMaterials
q Even though The Home Depot has been very successful, in late 2017
the company decided to adopt a more expansive digital
transformation strategy.
q Goal was to enhance the online shopping experience and provide
customers with the highest quality products and best resources
through a seamless process across all channels.
q Home Depot invested $11 billion over three years to improve both its
in-store and online shopping experience, and hired 1,000
professionals who specialize in information technology to improve the
customer experience.
q They now have back-end and distribution channels leveraging more
effective use of customer data with the added benefit of realizing
business efficiencies for tracking local trends and maintaining proper
inventory levels.
q Net result – over the past two years, its stock value has risen from
$135 to $373 with revenue growing more than 30% since 2017
reaching $132 billion in 2021.

q Category: Active Sports
q One of the world’s top athletic shoes and clothing companies, Nike,
felt they were starting to become sluggish and outdated. Nike’s
leadership didn’t hesitate.
q The company focused on better connecting with its customer base via
emphasis on more powerful data analytics, an updated e-commerce
strategy, and stronger digital marketing campaigns to ramp up direct to
customer sales.
q Use of digital consumer data led Nike to open concept stores, create
more membership opportunities and improve the customer
experience online and through apps.
q Transformation has aided in quicker product development cycles, near-
instantaneous response to new trends.
q Net result – It’s stock price has grown from $52 to almost $148 in the
two years since the transformation began.

q Category: Food & Beverage
q In 2008, Starbuck sales where in decline, stores were closing and the
stock price was under $10.
q Digital transformation efforts began with a new “Digital Ventures”
investment to create a unique Starbucks experience in stores and
online.
q By activating its loyal consumer base, it collected over 50 thousand
customer-submitted ideas to improve its products, customer
experience and corporate initiatives through its innovative My
Starbucks Idea site.
q Today, it boasts more than 31 million active users of its mobile
payment system, second only to Apple, and generates more than one-
quarter of all retail revenue from the mobile app.
q Starbuck’s has been able to create an aspired digitally enhanced loyal
customer community supporting real-world, in-store customer
experiences.
q Net result – the niche retailerhas since rebounded to become one of
the most aspired global digital brands with 2020 revenue of 23.5
billion dollars and a stock price of $98.

q Category: Consumer Household Goods
q P&G for its digital transformation initiative implemented a large-scale
application of digital technology and advanced analytics across every
aspect of its business operations.
q It influenced everything from the way the consumer goods giant created
molecules in its R&D labs to how it maintained relationships with
retailers, and how it manufactured products, built brands, and interacted
with customers.
q Transformation further helped build value-driven 1:1 consumer
relationships while creating significant competitive advantages.
q As one case point, the Dove and Tide brands now drive as many
consumers to the website as they did to retail shelves prior to its
transformation efforts.
q Net result – P&G has realized better innovation, higher productivity,
lower costs, and faster brand growth.

These are just a few of the many success stories across industry.
There are also many business model case studies
which can be inspiring as well.

ASPIRING BUSINESS MODELS FOR TRANSFORMATION.
GAFANOMICS®
Modeling for Business Change Inspirational Change

For expanded inspiration, consider the learnings from the big four GAFA brands
that exemplify the concept of the mecosystem and platform thinking at scale.

Case Point
Welcometo GAFAWorld
GAFA is the acronym for the brands that exemplify platform thinking at scale and which redefines the
connected customer experience: Google, Amazon, Facebook, and Apple.
Source: Interbrand
The GAFA marketing framework emphasizes the design of desirable customer experiences as a top line business objective replacing
historic bottom line product sales objectives to allow a company to profitably extend its business across multiple sectors by
providing customer access to a personalized ecosystem of offerings within a single branded space.
The ‘GAFA Framework’ can serve as inspiration to drive and manage business change and innovation during the course of Digital
Transformation initiatives as companies begin to consider the implications of alternative customer-centric business models.

The Connected Customer
SEARCH
CONTENT
ADVERTISING
HARDWARE
ENTERTAINMENT
SOFTWARE
SOCIAL
DISTRIBUTION
COMMERCE
BOOKS
MUSIC
FULFILLMENT
Case Point
GAFA| Reshaping How The World Connects
In each of their respective digital categories, GAFA companies have truly become the leading aspirational brands for conducting
business in the digital age reinforcing the Age of New Consumerism.
Source: FaberNovel Modeling for Business Change Inspirational Change

92%
Share
of Search
55%
Share of
SmartphoneWebTraffic
36%
Share of
Social Media
40%
Share of
Online Retail Sales
Google
is the
Digital Information
infrastructure
Apple
is the
Internet of Things
infrastructure
Facebook
is the
Digital Community
infrastructure
Amazon
is the
Digital Delivery
infrastructure
Worldwide
And
by
2025?
Case Point
GAFA| Vision + Customer Centricity = MarketLeadership
Each of the GAFA companies leverage unique customer-centric business models to capitalize on their market leadership
positions by developing visionary directions to not only service today’s customers but also to shape future markets and
customer needs with visionary foresight.

Expanding traditional business
to view the world with a wide
open lens has allowed GAFA
companies to widen its
influence and become
disruptive forces across markets
based on a “what is possible”
customer vision and approach.
The end result – exponential
business opportunities with
unlimited brand affinity
potential servicing a global
population as opposed to small
pockets of targeted consumers.
Case Point
GAFA| Vision + Defined Purpose = Market Influence

Case Point
GAFA| Vision + Inspired Innovation = Great Products
COMMON THEME
Don’t just improve
customers’ lives –
CHANGE THEM.
“ There are two ways to
extend a business! Make
an inventory of what you
are good at and extend
from your skills out!
Or determine what your
customers need and
work backwards, even if
it requires learning new
skills!
- Jeff Bezos, Amazon CEO

MAPS
TO MOBILITY
DOWNLOADS
TO STREAMING
MOBILE
TO NEXT-GEN PLATFORMS
FULFILLMENT
TO LOGISTICS
Self Driving
Cars
Music
Streaming
Virtual
Reality
Same Day Air
Delivery
Case Point
GAFA| Vision + Great Experiences = Powerful Brands
Challenging traditional recipes for success. Useful products + great experiences = powerful brands.

Case Point
GAFAnomics | Inspirational Learnings and Lessons.
Source: FaberNovel
Net Takeaway | No Barrier Is a Stopping Point with Vision, Commitment, and Action.
Competitive barriers to entry are getting lower everyday.
Digital has led to a faster cycle of innovation with its corollary of
reducing product life cycles.
Customer expectations are higher than ever before.
Boundaries between products and services are blurring:
customers want experience, not products.
1.
2.
3.
4.

Case Point
Source: FaberNovel
Net Takeaway | The New Economy Creates New Rules.
1. The “free customer”
GAFA have redefined the customer concept. They make no difference between a
paying customer and a non-paying one. GAFA set out to make themselves
indispensable to as many people as possible.
2. The “utility value model”
GAFA have redefined value creation. They first think in terms of customer
commitment rather than financials. Delivering sustainable customer value prevails
over short-term profitability.
3. The “pirate management”
GAFA have redefined talent management. They created an innovation friendly
environment to supercharge performance and pioneer the future.

Case Point
Source: FaberNovel
Net Takeaway | Traditional Business Needs Must Be Redefined.
3. Value Creation
Traditional businesses think about value creation as roughly revenue
minus costs. GAFA have redefined value creation by putting themselves
in a customer’s shoes.
Making theircustomerssave time and effort is a strategic performance
indicator. To the extent that deliveringsustainablecustomervalue
prevailsover short-term profitability.
4. Core Business
GAFA redefines their core business not in product or service terms, but
in terms of being in businessto solve customerproblems.The concept
can apply to any type of business as long as the mission is to deliver
customer value.
5. Management
GAFA fosters a “Hacker Mentality” for projectownershipthrough
responsiblesmall teams encouragingobjectiveand data-powered
decisionmaking.It replaces the notion of expertise and know-how with
the notions of “learnability” (ability to learn what you don’t know)
leading to greater innovation.
1. Customer
If you ask a traditional company how they define
customers, they will probably answer “those who
purchase”. The GAFA model redefines the customer
relationship as one where all customersdeserveto be
deliveredthe best possiblecustomerexperience,not
just a sales pitch.
In the past, a transaction was what made a customer,
now it is anyone who gives a company attention.
2. Addressable Markets
GAFA have radically questioned the notion of
addressable markets.
When launching a business, GAFA never thinks about
geography or culture. Any connectedhuman beingis a
potentialcustomer,and any non-connected human
being needs to become one.

Case Point
Source: FaberNovel
Net Takeway | Everyone Is A Customer ˗ Even Without Money.
Everyone who gives a company attention is considered a customer.

Case Point
Source: FaberNovel
Net Takeaway | The Customer Base Is the Mother of All Growth.
All GAFAdecisions are primarilyfocusedon gainingandretainingcustomers.
Gettingcustomers to commit is the foundation on whicheverythingcan be built.
It is the path
towards revenue.
“Show me the value, I
will show you my
money”.
GAFA builds strong and
direct relationships with
their customers, who are
hence more eager to
transact with them.
It acts as a
barrier to entry.
Great value helps build
positive word-of-mouth.
The larger the base of
happy customers, the
more attractive they
become and the harder it
is for competitors to
challenge them.
It leads to
more value.
GAFA leverages
economies of scale to
cover fixed costs more
effectively and reflects
this by lowering prices
on products.
It is an innovation
catalyst.
Data processing makes it
possible to explore and
experiment with new
value pathways: add-on
features, product
innovation and
revenue streams.
Data paves the way to a
new era: large-scale
customization.

Case Point
7.9 Billion People
[Potential Customers]
Source: FaberNovel
GAFA doesn’t think in terms of geography or culture.
They rely on the belief that any connected person is a potential connection and customer.
Net Takeaway | The World Can Be Viewed Using A Different Lens.

Case Point
Source: FaberNovel
Net Takeaway| Value Creation Now Defines Core Business Directions.
1. Make smart and meaningful things.
GAFA are bolstered by a strong vocation: to help people save
time and effort in their daily lives. Products & services are all
the more valuable because they are intuitive to use reducing
product adoption friction for mass market appeal.
2. Fostervalue creation rather than revenue.
GAFA cares so much about meeting customers’ needs that
they sacrifice short-term revenue and profits. Released from
the obsession with short-term profit, they achieve excellence:
delivering the best possible experience and making it truly
accessible.
3. Reinvent how business is conducted.
Commitment is a scarce commodity. The magic lies in meeting
and anticipating customer demands in a timely manner, at
the risk of letting competitors gain a lead. GAFA have set out
to operate any type of business as long as they deliver value.
Customer
Value

Case Point
Source: FaberNovel
Net Takeaway | Emphasis Should Be On Managing Customers – Not Products.

Case Point
Source: FaberNovel
Net Takeaway | Touchpoints Create Integrated Seamless Experiences.
Constantly re-evaluating their core
business models, GAFA companies
continually learn new skills and
expertise to create seamless,
integrated experiences across
touchpoints to better service
customers.
The end result – core business
models continue to evolve creating
richer opportunities for business
growth.

Case Point
Source: FaberNovel
Net Takeaway | Touchpoints Create Daily Brand Engagements.
GAFA sets out to operate any type of
business as long as they can deliver value.
Through differentiation and innovation,
GAFA seeks to become the one and only
digital destination for its customers.
The end result – larger markets and
customer base, an increase in average
customer revenue, and higher retention
rates through integrated experiences
leading to greater lifetime customer value.
The endgame is delivering the best
possible digital experience.

GAFA businessandmarketingtransformationalmodelscanbe replicable.
Thekeylearningis with VisionandLeadership,a CustomerCentricapproachfocused
on the customerexperiencecanbe reimaginedto ensurebusinessrelevancyandsustainability
in an everchangingconsumerlandscape.

Now with a bit of inspirationand understandingbehind us,
takethe opportunityto re-review howbest youcannavigate
the transformationlandscape.

NAVIGATING DIGITAL
TRANSFORMATION
LEVERAGING A TRANSFORMATIVE GUIDING FRAMEWORK.
Transformational Change
Navigating Business Change

Changeis nevereasy.
Tobeginchangeand tonavigatechange,we mustfirst address
the commonbarrierstochange.

COMMON BARRIERS
BUSINESS CHANGE IS NEVER EASY.

UnderstandingandNavigatingCommonHurdles.

STRATEGY IN A SILO
THE EXPERIENCE FEELS DISJOINTED.
Many of today’s marketing and digital strategies are practiced in a silo.
Different departments manage different steps in the customer journey, let alone
collaborate. They often act as their own fiefdom. They use different standards
and metrics to measure success.

INTERNAL POLITICS
TRANSFORMATION THREATENS THE STATUS QUO.
This causes self defense mechanisms to kick in. Executives push back.
They concentrate on their own priorities. Personal agendas win
in favor of what’s right or best for the organization.

BUDGET ALLOCATION
BUDGETS ARE LOCKED WITHOUT PROOF OF ROI.
Digital is still reasonably new and unproven. It requires continuous experimentation
which often occurs in silos. Success and failure is rarely communicated beyond
individual departments or teams making ROI difficult to measure.

DIGITAL FRAGMENTATION
PRIORITIES ARE MIS-ALIGNED.
A lack of digital planning often exists in many organizations. System and platform
efforts are typically strewn across multiple departments with no real dedicated teams.
Singular digital initiatives including websites, channels, apps, and/or e-commerce is
fragmented with lower priority given to a truly integrated digital ecosystem
aligned to an omni-channel customer experience.

EDUCATION
INTERNAL KNOWLEDGE, VALUE SYSTEMS AND BELIEFS ARE DISJOINTED.
Vastly different levels of knowledge, skills and comfort exists in typical enterprises.
Knowledge is scattered across the organization. A Millennial (Digital Natives) versus
Baby Boomer (Digital Novices) divide may exist causing internal friction.

LEADERSHIP
CHANGE CAN BE HARD AND PAINFUL.
Vision and someone to lead is critical. Employees will routinely follow a course
of Business As Usual. Digital is kept at arms length or in fringe conversations.
It may be viewed as a threat. A lack of digital specialists typically
means strategy will often be viewed in silos or isolation.
Navigating Transformation

CULTURAL CHANGE
SUCCESS WILL ONLY COME WITH A WILLINGNESS TO FAIL.
Without a culture in which employees can explore (and occasionally fail)
without fear of reprimand, digital transformation benefits will likely never materialize
and organizations will further be put at risk to survive the digital age.

DISPARATE DATA
DATA INSIGHTS ARE KEY YET DATA REMAINS LOCKED IN SILOS.
Existing infrastructures and processes lack a data model to gather and distribute data.
Data remains in a silo, spread across departments or disparate systems. There exists a
lack of understanding of what data is collected and who owns the data. There is no
investment in staff and process to deliver data with actionable insight.

The starting point is knowing where the barriers are
to be able to take steps to resolve them.
For those willing to embrace change, barriers can be navigated.
But it must begin with acknowledging them and then having insight
into the nuances and depth of each barrier that will be
unique to each organization.
BARRIERS CAN BE OVERCOME.

As you reflecton the commonchangebarriers,
it maybe relevantto reviewsomeadditionalguidingconsiderations
organizationsare facingformoving theirtransformation
initiativesforward.

CONSIDERATIONS
ADDITIONAL REFLECTIONS FOR CHANGE.

q There may be staff, resource, skillset, and budget challenges which may exist within the organization to
quickly adopt digital transformation. Transformation doesn’t just happen over night. Identifying early short
falls should align to realistic roadmaps, timelines and expectations. A prioritized building block approach to
transformation may be the most valued approached to the initiative.
q The short-term goal for all initiatives should be to put into place progressive frameworks, strategies,
processes, and roadmaps that will evolve, and which will allow your organization to begin executing against
them to create a solid foundation for which can grow and mature overtime into future for longer-term
success.
q Reinforcing digital transformation will require activating and elevating champions, advocates, change agents,
and working groups across the organization and in support (IT, sales, marketing, customer service, HR) for the
adoption of the value proposition and the vision. However, how you get from where we are today to where
you want to be in the future will come from the understanding that digital transformation is not a “set and
execute” one time strategic initiative.
q As stated, digital transformation has to naturally evolve over time… building on each past success and
promoting them internally as the organization continues to develop best practices and grow its internal
resources, skillsets and expertise at each phase in its digital transformation journey is a critical transformative
step of the initiative.
Reflection Point
Additional Considerations for Guiding Transformation.

q Stewardship roles for change agents and key stakeholders will need to apply an agile management approach
leveraging expertise with scale and balance to execute a strategic transformative direction at the highest
possible levels that will ‘phase in’ building block programs and initiatives based on capabilities and budgets
unique to the realities facing the organization.
q If you are a global organization, you must also be able to demonstrate you can leverage expertise, staff and
resources across a global (IT, sales, customer service, marketing, HR) operations footprint in a cohesive,
seamless team effort for applying the best possible resources for each transformation engagement and the
aspirational Total Experience customer concept.
q The key to all early success will hinge on the ability to quickly and effectively establish proof cases as credibility
for demonstrating and reinforcing transformation is clearly and quantifiably impacting business milestones in
all transformation areas impacted.
q And the bigger picture point which needs continuous reinforcement is the appreciation that any progressive
building blocks proposed and implemented today will be designed to grow and mature over time as ROI is
demonstrated and as the organization’s internal expertise and skillsets grow and mature. It will be a recurring
process of planning, experimentation, execution, measurement and refinement.
Reflection Point
Additional Considerations for Guiding Transformation.

With all theseconsiderations inmind and as applicable,
navigatingandactivating transformationwill requirea guidingframework
to stewardongoingeffortsand to help solidify a structureddirectionalapproach
to speedup planned progressivestepsin the initiative.

PILLARS OF CHANGE
SIX (6) CORE TRANSFORMATIVE PILLARS TO FUNDAMENTAL BUSINESS CHANGE.
Framing Transformative Business Change

A TRANSFORMATIVEFRAMEWORK
ThereareSix (6)Core TransformativePillarstoFundamentalBusinessChange.

Alignstrategicdirectionsfor transformational change.

EXTERNAL DEGREE OF CHANGE
INTERNAL
ABILITY
TO
CHANGE
EMPOWERMENT
CUSTOMER
CENTRICITY
INNOVATION
LEADERSHIP
& VISION
stewardship cultural change
adaptive change
risk & reward
Vision
Leadership
Transformation
Consider four core strategic directions to impact three fundamental business change areas.
ReflectionPoint
PromoteChange Through(4) TransformativeStrategicDirections.
Customer
Experiences
Operational
Processes
Business
Models
TRANSFORMATION CORE PILLARS OF CHANGE
1
2
4
3

Roadmapthe majormilestonesforthe transformationalchange.

Transform
Marketing
Define
Strategic
Directions
Apply
Process &
Methodology
Realign
Workflows
& Budgets
Optimize
Journeys
Optimize
Touchpoints
Optimize
Experience
Engage &
Collaborate
Measure &
Improve
Reinforce
Sponsorship
Create
Steering
Committee
Document
Change
Needs
AdoptValue
Proposition
Define
Vision
Reinforce
C-Suite
Support
Acquire
Adequate
Funding
Enlist
Change
Agents
Mobilize
Efforts
1. LEADERSHIP AND VISION
2. EMPOWER THE ORGANIZATION
Reflection Point
There Is A Logical Navigation Flow To Digital Transformation.
3. MOBILIZE AND TRANSFORM WITH INNOVATION
4. REDEFINE THE CUSTOMER EXPERIENCE
Promote
Vision
Build
Roadmaps
Governby
Committee
Expand
Skillsets
BuildTech
Stacks
ApplyData
Analytics
Encourage
Change
Be Risk
Friendly
Mobilize
Organization
Reinforce
Cultural
Change
Align to
Customer
Centricity
Reimagine
Customer
Experiences
Emphasize
Customer
Loyalty
Align
Business
Processes
Focus on
Customer
Needs
Use Data
for Business
Intelligence
BuildLasting
Relationships
Continually
Learn &
Improve
Creating a milestone roadmap will enable a guiding structure to manage transformation.

Managetransformationalchangewith structuredstewardship.

ReflectionPoint
StewardDigital TransformationVia A StructuredFramework.
Steward the initiative across four distinct areas of agile management focus.
Source: MIT, CG
Frame the
Digital Challenge
Focus the
Investment
Mobilize the
Organization
Sustain the
Digital Transition
Build & Expand
Awareness Across the
Organization
Fund the
Transformation
Promote New
Behaviors and Evolve
Culture
Build Foundational
Skills
Establish Reachable
Goals & Milestones
Build Governance Earn the Right to
Engage Employees
Create Incentives and
Rewards
Craft the Vision and
Align Top Team
Translate Vision Into
Action
Align Workgroups and
Signal Ambitions
Measure, Monitor and
Iterate
FRAME FOCUS MOBILIZE SUSTAIN

Empowertransformationthroughbusinessculture,riskandreward.

ReflectionPoint
EmpowerTransformationWith a Digital BusinessCulture.
Principles of Empowerment
1. RightMindset
• agile, lean, disrupt, fail fast,
customer-centricity, MVP, start with
why, experimentation
2. RightToolset
• modern, collaborative, lightweight
and effective tools
3. RightBehavior
• buy-in and support from leadership,
aligned incentives across silos, no fear
or rejection for new approaches
4. RightFeedback Loops
• learn from digital experimentation,
repeat and iterate, challenge results,
develop risk and reward incentives
Engageandincentivizestakeholdersacrossthe organizationto builda businesscultureof change.

Leveragetransformationalchangethroughinnovation.

ReflectionPoint
Start TransformationWithMarketingAs The Initial Agentof Change.
Reimagine the external-facing
customer experience from different
operational perspectives.
Rework and/or redefine internal
operating processes and business
models.
Marketing as the primary function within business will become the initial agent of change using a combinationofdigitalstrategies,
channels,tactics,andtoolstoredefinethecustomerexperiencethroughbusinessmodelsandoperatingprocesses.
Bring stakeholders together for collaborative business change across business operations.
IT, Sales, Marketing, CustomerService, Human Resources.
Offline
Touchpoints
Online
Touchpoints
Owned,
Earned, Paid
Media
Web
DigitalHub
ORGANIZATION

Createculturaltransformationalchangethroughcustomercentricity.

ReflectionPoint
Customer Centricity PutsTheCustomer AtTheCenter ofAllBusinessChange.
BEING CUSTOMER-CENTRIC
MEANS
§ Align organization around the
customer.
§ Put customers at the heart of the
company leveraging experience
design.
§ Create a company-wide customer-
centric culture.
§ Reinforce customers’ needs first, no
matter what.
§ Listen to customers, understanding
their needs, acting and repeating.
Monitor the online conversation.
§ Offer a positive customer experience
from the start of the awareness stage
all the way to the post-purchase
process and advocacy stage.
Articulate aclear valueproposition,visionandroadmapwith encouragedemployeefeedbackloops.

Throughthese(6)corepillarsof transformativechange,
you will be able to plan and architectthe requisitebuilding blocks
for activatingand mobilizing changethroughoutthe organization.

ACTIVATING
TRANSFORMATION
ENVISIONING STRATEGIC DIRECTIONS FOR CHANGE.
Leading Business Change

Activationof anyTransformationInitiativemusthaveclearleadership.
Leadershipmustenlist changeagentsto guideand managethe effort
and adopta value propositionand vision.

LEADERSHIP
CHANGE AGENTS, VALUE PROPOSITION, VISION.
Leadership

“ Organizations that destroy the status quo
win. Whatever the status quo is, changing
it gives you the opportunity to be
remarkable..
Best Selling Author & Marketing Guru Seth Godin
Leading Business Change Leadership

Change Agents
EVERYTHING STARTS BY CHALLENGING THE STATUS QUO.

Challengingthe statusquoforbusinesschangerequiresan internal movement.
ThroughLeadership+ Vision
transformationalbusinesschangecan be willingly adopted
to becomean organizationalreality.

All Movements Beginwith ChangeAgents.
To build an internal movement,changeagentsmustbe enlisted
to be the stewardsof the initiative, createa senseof urgencyamongC-Suiteexecutives,
and expandmobilizationacrossthe organizationto expediteand setin motion
the requisitebusinesschangeand digital transformationprocess.

A person from inside or outside the organization who helps an organization transform itself by
focusing on such matters as organizational effectiveness, improvement, and development. A
change agent usually focuses his efforts on the effect of changing technologies, structures and
tasks on interpersonal and group relationships in the organization. The focus is on the people
in the organization and their interactions.
Definition: Change Agent

You’lllikelyneedto expandthe recruitmentandenlistmentof changeagents.
Stakeholdersultimatelybecomethe face of organizationalchange
to champion and drivethe businesstransformationprocess.

It requires ateameffort.
Key Roles,Purpose& FunctionsMayVarybyIndividual…
Organizationaltransformationdoes trulyrequire a teamof changeagents.
Keystakeholdersneed to be enlisted acrossall businessoperationsto impactand benefit
businesschangethroughan internal movement.

To recruit and enlist thesekeyinfluentialstakeholders,
changeagentscan be identified usingleading questions.

Reflection Point
Recruiting Change Agents
q Who will lead the movement?Who will be the internal voice to inspire change?
q Who will be the internal champions and stewardsfor change? How will they be recruited? Across
business operations?
q Who will create the business case and business model for C-Suite|Board adoption?
q Who will explain and document how a better “CX” can be a core business direction so that a wave
of organizational-wide support begins to build?
q Who are the internal departmentheads across Marketing, Sales, CustomerService, Human
Resources, and IT which need to be recruited and/or motivated? How can distributed teams and
efforts across a global footprint work in collaboration to create and reinforce a desired, integrated
customer experience which will benefit both business and customers as well as employee careers?
q Who needs to be recruited to form the requisite cross-functional steeringcommitteefrom
Marketing, Sales, Customer Service, Human Resources, and IT to collaborate and support change
across E-Commerce, Social, Mobile, Digital, and Real World?
REPRESENTATION

Oncechange agentshavebeenidentified,recruited andenlisted…
it will be imperativefor ChangeAgentsto workcollaborativelywith the
executivesteeringcommitteeto developand/or refine the value proposition and vision
througha needsanalysisto guidethe mobilizationof all transformativeefforts.

Reflection Point
Needs Analysis | Defining Operational Transformative Change
q What is digital transformation for the organization? What is the customer value proposition?What are the
goals and objectives? How can digital impact business change and efficiencies to impact the customer
experience?
q How can a cultural environment of innovation, employee empowerment, and risk and reward be built across
the enterprise?
q How can customer and channel marketingbreak out of silos for creating better omni-channel customer
experiences to have greater business impact?
q How will requiredbusiness systems,processes, methodologies,and technologies be integrated? What data is
available? What data can be collected? What will be the data framework? How will data be governed and used?
q How will the transformation efforts be rolled out and promotedacross the organization? What is the impact
on business, departmental staffing and business models in place?
q How can ROI or the promise of it be demonstratedacross at organizational levels?
q What is the plan to reinforce sponsorship support from the Board and C-Suite executives? Who needs to be
internal champions and are who are most likely to be receptive to business change, e.g., board members, CEO,
CDO, CXO, CMO, et al?
q How and when (at what stage in the movement)will the business case and/or progress updates be presented
to key sponsors to reinforce continued sponsorship?
REPRESENTATION

ReinforcingAll MovementsMustConsiderThe Organization…
One sizewill not fit all. Asnoted, changeagentsmust be realisticto consider
how transformativechangewill be unique to the organizationbasedon practicalities
of availableresources,expertise,skillsets,and organizationalcommitment.

And mostcritical of allis changeagentsmust be ableto
mobilizethe organizationintoactionthroughthe valuepropositionanda vision.

As organizationspotentiallyexpand their circle of changeagents,
the endgoalsmustbe clearlydefinedbeforeadvancingtransformation
to ultimatelydrive,manageandguidethe initiativeto achievesuccess.
Thereflectionpointis the valueproposition.

Value Proposition
REALIGNING TO THE CUSTOMER EXPERIENCE.

Not all corporationsbegin as digitaland data-drivenentities.
Tofullyembracedigitaltransformation,organizationswill need
a customervaluepropositionto embracedigitalasa business model.

Therefore,before realigninga visionfor businesschange,
a clearDigitalTransformationValuePropositionmust be defined.
It mustbe easilycommunicatedaimed atC-SuiteExecutives
to leverageheightenedsponsorshipandfurtherserveto createa senseof urgency
acrossthe organizationatall levels.

Why does a value proposition matter?
Fully embracing digital transformations require companies
to reimagine their business from a customer's perspective.

An effective value proposition will define a new way
of thinking about an organization’s business. It will tell the ideal
customer why they should buy from your company and not from
competitor brands.

It will put the customer at the center
for defining and/or refining the vision for where your organization can
make real change for business benefit which is at the core of
the transformation effort.

Six out of 10 companies have produced new
business models due to digital transformation
strategies, and over half of company CEOs say
that digital technologies have helped increase
revenues.
The most common benefits cited aligned to a
customer centricity business model approach
include: 40% improved operational efficiencies,
36% reduced time to market, 35% improved
ability to match customer expectations.
Source: Forbes
Reflection Point
RealigningBusinessTo The Value Proposition.
6

Framing the value proposition will provide the direction
required to realign the guiding vision for business transformation
which underpins all efforts.

Vision
ALIGNING VISION TO THE VALUE PROPOSITION.

VISION IS CRITICAL
There will be a need to embrace transformation with a clear vision.
Transformation needs an actionable vision.

Reinforcing everything discussed so far,
the Vision needs to align business benefits to the value proposition
and then be adopted by the C-Suite and be promoted
top > down into the organization.

And to be clear…
the Vision must be driven from
top > down for successful organizational adoption.
This is the only path to success.

q Case studies reveal the most successful transformation initiatives will focus as much (or more)
on how to drive change as on the detailed content of the change.
q A compelling transformative vision, with related engagement, governance and KPIs will allow
employees throughout the organization to identify new “whats” to meet or extend the vision
as the organization is mobilized for the transformation initiative.
q Successful transformation comes not from creating a new organization, but will reshape the
organization to take advantage of valuable existing strategic assets in new ways.
q The most successful transformative companies will gain value from investments they have
already made, even as they envision radically new ways of working.
ReflectionPoint
AValuedVision WillFocusMoreOnthe “How”Thanthe “What”.

ReflectionPoint
VisionIdeation| FromEcosystemto Mecosystem.
Where an ecosystem is a complex network or interconnected system of departmental operations in which business
operates serving singular business functions, the concept of a new Mecosystem in the Age of New Consumerism is
a re-orientation of this departmental model putting the customer at the center and reorganizing and integrating
department operations and business systems re-aligned to support the brand experience for realization of greater
business outcomes, customer loyalty and revenues.
q Informed by data, the Mecosystem considers the "real-
life" contexts surrounding the customer and seeks to
architect synergies across touchpoint experiences,
ensuring more relevant services and products are
delivered.
q The Mecosystem customer approach further helps
calibrate brand experiences based on customer needs and
preferencesthat are becoming increasingly social
and multi-sensory as created by digital by harnessing
collective intelligence through analysis and data.
Source: Interbrand Leading Business Change Leadership

Source: IBM Institute
Fashionistas Digirati
Beginners Conservatives
• Many advanced digital features
(such as social, mobile) in silos
• No overarching vision
• Underdeveloped coordination
• Digital culture may exist in silos
• Strong overarching digital
vision
• Good digital governance
• Many digital initiatives
generating business value in
measurable ways
• Strong digital culture
• Management skeptical of
business value of advanced
digital technologies
• May carry out some
experimentation
• Immature digital culture
• Overarching digital vision exists,
but may be under developed
• Basic digital capabilities may be
mature
• Strong digital governance across
silos
• Taking active steps to build
digital skills and culture
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Transformation Management Intensity
Every company’s path to
Transformation will be unique.
In parallel with defining the vision, one of the
first steps to transformation is an
organizational assessment to identify current
strengths and weaknesses.
Depending on a company’s current level of
digital maturity,atransformationinitiative will
need to be uniquely designed to move the
business through progressive stages to reach
full digital transformation.
As digital maturity grows with each new
success, the vision can evolve expanding the
backbone to iterative roadmap planning.
Reflection Point
Vision Ideation | Digital Maturity Self Assessment.

Fashionistas Digirati
Beginners Conservatives
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Leadership Capability
Reflection Point
Vision Ideation | Comparative Industry Maturity View.
Source: MIT, CG
Compared to industry transformation stages, some industriesare further along in the building of digital capabilities but
may lag in vision and strategy to affect transformation.
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Leadership Capability

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