Exploring the barriers to Digital Transformation, and providing a framework to bring about evolution while understanding the changing nature of Customer Experience.
2. INTRODUCTION
WE LIVE IN AN INCREASINGLY COMPLEX WORLD. INFORMATION FLOW IS
GROWING AT EXPONENTIAL RATES AND TECHNOLOGY IS BRINGING ABOUT
FUNDAMENTAL AND RAPID CHANGES TO OUR SOCIETY.
WITHIN THIS ENVIRONMENT, SMART ORGANIZATIONS ARE REALIZING THAT
ADAPTABILITY IS PARAMOUNT AND THAT THERE IS A NEED TO RETHINK THE
ENTIRE CORPORATE STRUCTURE. THIS, MORE OFTEN THAN NOT, IS BEING LED
BY DIGITAL TRANSFORMATION.
A LOT OF ORGANIZATIONS ARE MAKING SOLID HEADWAY IN ADAPTING TO THE
INFLUENCE OF DIGITAL. HOWEVER A HUGE NUMBER OF ORGANIZATIONS
CONTINUE TO STRUGGLE TO BRING ABOUT CHANGE. THIS PRESENTATION IS
DESIGNED TO HELP PROVIDE A FRAMEWORK FOR THESE BUSINESSES, AND
FOSTER DEBATE BETWEEN EXECUTIVES, BUSINESS STRATEGISTS AND
AGENCIES.
12. “Digital Darwinism is the
evolution of consumer
behavior when society and
technology evolve faster than
your ability to adapt.”
- Brian Solis
13. IN THIS NEW ENVIRONMENT,
UNDERSTANDING THE DIGITAL
CUSTOMER EXPERIENCE IS
CRITICAL TO SUCCESS
14. WHAT IS REQUIRED TO MEET
THESE CHALLENGES?
DIGITAL TRANSFORMATION
IMAGE BY FOLKERT GORTER
15. DIGITAL TRANSFORMATION IS MORE THAN
JUST AN INVESTMENT IN TECHNOLOGY.
ORGANIZATIONS MUST TRULY CHANGE,
FROM THE INSIDE OUT, TO BECOME MORE
RESPONSIVE.
IMAGE BY FOLKERT GORTER
16. OUR GOAL IS TO IMPROVE THE WAYS THE
ORGANIZATION SEES THEIR CUSTOMERS,
CREATING NEW VALUE THROUGHOUT THE
CUSTOMER LIFECYCLE.
IMAGE BY FOLKERT GORTER
19. JOSIAH WEDGEWOOD
FATHERS MODERN
MARKETING.
THINK DIRECT MAIL, MONEY-BACK
GUARANTEES, TRAVELING SALESMEN,
SELF-SERVICE, FREE DELIVERY, BUY
ONE GET ONE FREE, ILLUSTRATED
CATALOGUES, PRICE DIFFUSION.
(NOT A LOT CHANGED FOR A VERY LONG TIME).
1730 - 1795
23. MASS MARKETING THEORY:
1. MASS PRODUCE WHAT YOU WANT
2. BUY HEAPS OF AD SPACE
3. RETAILERS GIVE YOU SOME OF
THEIR SCARCE SHELF SPACE.
4. THIS GENERATES SALES
5. THIS LETS YOU BUY MORE ADS
(& REPEAT)
43. ALL THE TECHNOLOGY REQUIRED
TO TRANSFORM INDUSTRIES THROUGH
SOFTWARE IS NOW A REALITY
AND CAN BE WIDELY DELIVERED
AT GLOBAL SCALE
IMAGE BY FOLKERT GORTER
51. SOCIAL, MOBILE AND REAL-TIME
REMAIN OUR CATALYSTS. AS THEY
INTERSECT, THEY ARE
FUNDAMENTALLY ALTERING THE
WAYS PEOPLE CONNECT,
COMMUNICATE AND DISCOVER
INFORMATION.
52. MANY, MANY ORGANIZATIONS
ARE STILL STRUGGLING WITH
THE WEIGHT OF LEGACY
TECHNOLOGY AND PROCESSES
IMAGE BY FOLKERT GORTER
55. CORPORATE LONGEVITY.
THE AVERAGE CORPORATIONS LIFESPAN IS 12 YEARS.
THE AVERAGE MULTINATIONAL IS 40 YEARS.
ONLY A TINY FRACTION THRIVE FOR CENTURIES.
IMAGE BY FOLKERT GORTER
57. ARIE de GEUS, DIRECTOR OF STRATEGY AT ROYAL
DUTCH SHELL, PUT 27 OF THESE ‘THRIVE’
CORPORATIONS UNDER THE MICROSCOPE.
A NUMBER OF FACTORS CONTRIBUTED, BUT THE
ONE THAT STOOD OUT MOST...
IMAGE BY FOLKERT GORTER
58. “The ability to learn faster
than your competitors is the
only sustainable competitive
advantage.”
- Arie de Geus
60. HOW LONG BEFORE A
JOBS, ZUCKERBERG,
BEZOS OR MUSK
DISRUPTS YOUR INDUSTRY?
IMAGE BY FOLKERT GORTER
61. DIGITAL TRANSFORMATION
“THE ALIGNMENT OF, OR NEW INVESTMENT IN,
TECHNOLOGY AND BUSINESS MODELS TO MORE
EFFECTIVELY ENGAGE DIGITAL CONSUMERS AT
EVERY TOUCH POINT IN THE CUSTOMER
EXPERIENCE LIFECYCLE.”
- THE ALTIMER GROUP
65. STRATEGY IN SILO
1
DIFFERENT DEPARTMENTS MANAGE DIFFERENT
STEPS IN THE CUSTOMER JOURNEY. THEY OFTEN
DON’T COMMUNICATE, LET ALONE COLLABORATE.
THEY OFTEN ACT AS THEIR OWN FIEFDOM. THEY
USE DIFFERENT STANDARDS AND METRICS.
THE EXPERIENCE FEELS DISJOINTED.
IMAGE BY FOLKERT GORTER
66. INTERNAL POLITICS
2
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 FOR THE ORGANIZATION.
IMAGE BY FOLKERT GORTER
67. BUDGET ALLOCATION
3
DIGITAL IS NEW AND UNPROVEN. IT REQUIRES
EXPERIMENTATION. OFTEN THIS OCCURS IN SILO,
AND IS RARELY COMMUNICATED BEYOND
INDIVIDUAL TEAMS. ROI IS DIFFICULT TO IDENTIFY.
THIS CREATES ‘CHICKEN AND EGG’ SITUATIONS;
“SHOW ME PROOF” BEFORE BUDGET
CAN BE UNLOCKED.
IMAGE BY FOLKERT GORTER
68. MOBILE FRAGMENTATION
4
A LACK OF MOBILE FIRST OR SECOND SCREEN
THINKING EXISTS IN THE ORGANIZATION. MOBILE
AND PLATFORM EFFORTS ARE STREWN ACROSS
MULTIPLE DEPARTMENTS WITH NO DEDICATED
TEAM. OFTEN THE NEED TO RETHINK WEBSITES,
APPS OR E-COMMERCE IS A LOWER PRIORITY
THAN OTHER DIGITAL INITIATIVES.
IMAGE BY FOLKERT GORTER
69. EDUCATION
5
VASTLY DIFFERENT LEVELS OF KNOWLEDGE OR
COMFORT EXIST IN THE ENTERPRISE. KNOWLEDGE
IS SCATTERED ACROSS THE ORGANIZATION. A
MILLENNIAL (DIGITAL NATIVES) VS BABY BOOMER
(DIGITAL NOVICE) DIVIDE EXISTS CAUSING
FRICTION.
IMAGE BY FOLKERT GORTER
70. LEADERSHIP
6
WITHOUT A VISION AND SOMEONE TO LEAD,
EMPLOYEES FOLLOW A COURSE OF BUSINESS AS
USUAL. DIGITAL IS KEPT AT ARMS LENGTH OR IN
FRINGE CONVERSATION. A LACK OF DIGITAL
GENERALISTS MEAN STRATEGY IS VIEWED IN SILO
OR ISOLATION.
IMAGE BY FOLKERT GORTER
71. DISPARATE DATA
7
EXISTING INFRASTRUCTURE AND PROCESSES LACK
A MODEL TO GATHER AND DISTRIBUTE DATA. DATA
REMAINS IN SILO, SPREAD ACROSS DEPARTMENTS
OR DISPARATE SYSTEMS. THERE EXISTS A LACK OF
UNDERSTANDING OF WHO OWNS THE DATA. NO
INVESTMENT IN STAFF AND PROCESS TO DELIVER
DATA WITH ACTIONABLE INSIGHT.
IMAGE BY FOLKERT GORTER
75. TRANSFORMATION EFFORTS REQUIRE AN
OVERALL VISION [PURPOSE], THE FORMATION OF
A TEAM TO CARRY IT OUT [PEOPLE], AND AN
UNDERSTANDING OF THE CUSTOMER EXPERIENCE
[PROCESS]. WITH THIS IN PLACE, WE CAN CREATE
AN ONGOING STRATEGY ROADMAP TO OPTIMIZE
THE CUSTOMER EXPERIENCE.
78. PURPOSE
“BUILDING A VISION”
BEGINNING DIGITAL TRANSFORMATION
OFTEN REQUIRES A BUSINESS CASE. THIS
NEEDS MORE THAN JUST EVIDENCE. WE
REQUIRE A STORY AND VISION OF WHAT
THIS WILL LOOK LIKE.
IMAGE BY FOLKERT GORTER
79. PURPOSE
“BUILDING A VISION”
NEW TECH COMPANIES ARE BUILT FROM
THE GROUND UP WITH A PURPOSE THAT
EMBRACES THEIR DIGITAL FOCUS AND
APPROACH. THESE “NON-TRADITIONAL”
VISION STATEMENTS ARE CUSTOMER
CENTRIC VERSUS COMMERCIAL.
IMAGE BY FOLKERT GORTER
81. “Our purpose is to organize the
world’s information and make it
universally accessible.”
82. “Our purpose is be the earth’s most
customer-centric company.”
83. “IF YOU WANT TO BUILD A SHIP,
DON’T DRUM UP PEOPLE TO
COLLECT WOOD AND DON’T
ASSIGN THEM TASKS AND WORK,
BUT RATHER TEACH THEM TO
LONG FOR THE ENDLESS
IMMENSITY OF THE SEA”
- ANTOINE de SAINT-EXUPERY
IMAGE BY FOLKERT GORTER
84. PURPOSE
“BUILDING A VISION”
VISION MUST COME FROM THE TOP. BUT
THE REALITY IS TRANSFORMATION RARELY
BEGINS FROM THE TOP DOWN. EXECUTIVES
MUST SUPPORT AND CONTINUOUSLY SELL
THE VISION FOR DIGITAL TRANSFORMATION
FOR IT TO SUCCEED. THIS IS THE
CHALLENGE.
IMAGE BY FOLKERT GORTER
85. PURPOSE
“BUILDING A VISION”
VISION THEREFORE REQUIRES A
“CHANGE AGENT”. A LEADER OR
INFLUENCER WHO CAN STIR THE POT,
DRIVE INITIATIVES AND RALLY
STAKEHOLDERS TO ACTION.
IMAGE BY FOLKERT GORTER
87. PURPOSE
“BUILDING A VISION”
2
VISION STEPS
DOCUMENT THE FACTORS THAT ARE
DISRUPTING YOUR MARKET. ASSEMBLE DATA
OR PROOF POINTS THAT HELP TO MAKE A CASE
TO C-SUITE OR DECISION MAKERS.
88. PURPOSE
“BUILDING A VISION”
3
VISION STEPS
ARTICULATE WHY THIS IS CRITICAL TO YOUR
BUSINESS. CONSIDER CONDUCTING A SWOT
ANALYSIS TO ASSESS ACTUAL POSITION FOR
TRANSFORMATION.
89. PURPOSE
“BUILDING A VISION”
4
VISION STEPS
DRAFT A SIMPLE VISION STATEMENT AND
SUPPORTING NARRATIVE FOR THE END RESULT
OF DIGITAL TRANSFORMATION. OUTLINE
ADVANTAGES AND HOW IT IMPROVES
CUSTOMER EXPERIENCE.
90. PURPOSE
“BUILDING A VISION”
5
VISION STEPS
SEEK OUT AN EXECUTIVE SPONSOR OR
“CHAMPION” TO HELP RALLY SUPPORT. FIND
COMMON GROUND WITH EXECUTIVES AND
ENSURE THEY COMMUNICATE THE VISION TO
RALLY EMPLOYEES ACROSS THE ENTIRE
ENTERPRISE.
94. PEOPLE
“BUILDING A TEAM”
WHO OWNS THE CUSTOMER EXPERIENCE?
THE REALITY IS EVERYONE IN THE
ORGANIZATION DOES. WHILE MOST
COMPANIES HAVE LEGACY DEPARTMENTS
AND SILOS, YOUR CUSTOMERS ONLY SEE
ONE COMPANY.
IMAGE BY FOLKERT GORTER
95. PEOPLE
“BUILDING A TEAM”
AN EXAMPLE IS SOCIAL MEDIA. THIS
OFTEN SPANS A LARGE NUMBER OF
BUSINESS UNITS (MARKETING, PRODUCT
MANAGEMENT, CUSTOMER SUPPORT, HR,
IT, DIGITAL) HOWEVER THEY OFTEN DON’T
SPEAK TO EACH OTHER CONSISTENTLY OR
ALIGN. SOCIAL LACKS A COHESIVE
COMPANY WIDE VISION AND FAILS TO
DRIVE BUSINESS VALUE.
IMAGE BY FOLKERT GORTER
96. PEOPLE
“BUILDING A TEAM”
THE END RESULT IS “DIGITAL FRICTION”
AND A CUSTOMER EXPERIENCE THAT
LACKS COHESION. THIS POOR
EXPERIENCE CAUSES DROP OFF AND A
LOSS OF CONVERSION.
IMAGE BY FOLKERT GORTER
97. PEOPLE
“BUILDING A TEAM”
TO CREATE TRANSFORMATION, THE
ENTIRE ORGANIZATION NEEDS TO PUT
EGOS ASIDE, BREAK THE SILOS AND
EMBRACE CHANGE. THIS STARTS WITH
THE CREATION OF A CROSS FUNCTIONAL
DIGITAL TRANSFORMATION TEAM.
IMAGE BY FOLKERT GORTER
98. PEOPLE
“BUILDING A TEAM”
1
PEOPLE STEPS
IDENTIFY CANDIDATES FOR A CROSS-
FUNCTIONAL TEAM. THIS OFTEN WORKS BEST
AS A SMALL TEAM OF “INTRAPRENEURS” TO
DRIVE QUICK WINS TO PROVE RESULTS.
99. NOTE, TEAMS NEED A RANGE OF
STRATEGISTS AND STAKEHOLDERS.
AT THIS POINT, THERE IS GREAT
VALUE IN LEVERAGING ‘DIGITAL
GENERALISTS’, WHO CAN
UNDERSTAND THE END TO END
VIEW OF THE EXPERIENCE.
IMAGE BY FOLKERT GORTER
100. PEOPLE
“BUILDING A TEAM”
2
PEOPLE STEPS
ASSIGN ROLES AND TASKS. CONSIDER
DEVELOPING A RASCI MODEL OR SIMILAR FOR
THE GROUP AND ESTABLISH A COLLABORATION
SCHEDULE AND REPORTING PROCESS.
101. PEOPLE
“BUILDING A TEAM”
3
PEOPLE STEPS
FORM A DATA COLLECTION AND INSIGHTS
TEAM. THEY NEED TO COLLECT AND ANALYZE
DATA, BUT MORE IMPORTANTLY CREATE A
SIMPLE STORY TO PRESENT THIS TO
EXECUTIVES.
103. IN 2012, GARTNER PREDICTED
THAT BY 2017, CMO’S WOULD
SPEND MORE ON I.T THAN THEIR
CIO COUNTERPARTS.
CIO’S ARE FIGHTING FOR THEIR
ROLES, OVERSEEING LEGACY
INFRASTRUCTURE, AND OFTEN
DON’T UNDERSTAND THE LONG
TERM VISION.
THIS CAN BE A HUGE
SOURCE OF FRICTION.
104. PEOPLE
“BUILDING A TEAM”
5
PEOPLE STEPS
BUILD A STRATEGIC ALLIANCE WITH I.T (THEY
MUST BE PART OF THE TEAM). FORGE A
GREATER DIALOGUE BETWEEN MARKETING
AND THEIR DEPARTMENT.
105. PEOPLE
“BUILDING A TEAM”
6
PEOPLE STEPS
DEVELOP A TRAINING REGIMEN TO BRIDGE THE
GAP BETWEEN EXISTING AND REQUIRED
EXPERTISE IN THE ORGANIZATION. CONSIDER
AN EXECUTIVE EDUCATION PROGRAM.
CONSIDER TACTICS LIKE REVERSE MENTORING.
106. PEOPLE
“BUILDING A TEAM”
7
PEOPLE STEPS
EMBRACE HACK CULTURE. LOOK AT RAPID
INNOVATION CYCLES AND FAST PROBLEM
SOLVING. OUR GOAL IS TO NOT BE FAIL SAFE,
BUT TO SAFE FAIL.
108. PROCESS
“EXPLORING THE EXPERIENCE”
CUSTOMERS ARE USING TECHNOLOGY
THEIR WAY, REGARDLESS OF WHETHER
YOUR STRATEGY ALIGNS WITH THEIR
JOURNEY. “BORN DIGITAL”, “MOBILE”
AND “SECOND SCREEN” ARE NO
LONGER PREDICTIONS, BUT FORCES
RADICALLY INFLUENCING
EXPERIENCES.
109. PROCESS
“EXPLORING THE EXPERIENCE”
TO BRING ABOUT DIGITAL TRANSFORMATION,
WE NEED TO UNDERSTAND HOW DIGITAL IS
AFFECTING THE CUSTOMER EXPERIENCE.
THIS REQUIRES RESEARCH, NOT GUESSWORK.
WE NEED TO UNDERSTAND BEHAVIORS,
PERSONAS AND EXPECTATIONS
THROUGHOUT EVERY STAGE OF THE
LIFECYCLE.
IMAGE BY FOLKERT GORTER
110. THIS MEANS HAVING A HOLISTIC FOCUS. WE
NEED TO MOVE BEYOND JUST MOBILE OR
WHATEVER TECHNOLOGY IS ‘SO HOT RIGHT NOW’
http://picturesofpeoplescanningqrcodes.tumblr.com/
111. PROCESS
“EXPLORING THE EXPERIENCE”
THIS ALSO EXTENDS TO OUR INSIGHT
GATHERING. FORGET “BIG DATA”. LET’S JUST
LEVERAGE THE EASILY ACCESSIBLE DATA WE
HAVE TO MAKE BETTER DECISIONS.
IMAGE BY FOLKERT GORTER
112. PROCESS
“EXPLORING THE EXPERIENCE”
ULTIMATELY OUR GOAL HERE IS TO FOSTER
A “DIGITAL FIRST” MINDSET. WE NEED TO
STOP TREATING IT AS A BOLT ON TO
EXISTING ACTIVITY. START WITH DIGITAL AT
THE CENTRE, AND RADIATE OUT.
IMAGE BY FOLKERT GORTER
121. PROCESS
“EXPLORING THE EXPERIENCE”
2
PROCESS STEPS
INTERVIEW STAKEHOLDERS ABOUT THE
CUSTOMER JOURNEY AS IT EXISTS TODAY.
EXPLORE DIGITAL CUSTOMER BEHAVIOR AND
HIGHLIGHT CHALLENGES AND OPPORTUNITIES.
122. PROCESS
“EXPLORING THE EXPERIENCE”
3
PROCESS STEPS
FORGET DEMOGRAPHICS. OBSERVE THE
PSYCHOGRAPHICS, PERSONAL TRAITS AND
CHARACTERISTICS THAT ARE UNIQUE OR
DOMINANT IN YOUR DIGITAL CUSTOMER.
CREATE CUSTOMER PERSONAS.
(THE PHRASE ‘18-25 YEARS OLD’. WHAT DOES THAT EVEN MEAN?)
123. PROCESS
“EXPLORING THE EXPERIENCE”
4
PROCESS STEPS
CREATE A CUSTOMER JOURNEY MAP
INCLUDING ALL TOUCH POINTS. OUTLINE WHAT
THE RIGHT EXPERIENCE COULD BE, BASED ON
BEHAVIOR. ORGANIZE BY CHANNEL AND
SCREEN. RECOGNIZE CUSTOMERS MAY NOT
FOLLOW ANY ONE ROUTE.
125. PROCESS
“EXPLORING THE EXPERIENCE”
5
PROCESS STEPS
OBSERVE THE GAPS IN TOUCH POINTS AND
WHERE THERE IS AND ISN’T INVESTMENT. ASSESS
THE PROCESSES, POLICIES AND SYSTEMS THAT
PREVENT SUCCESS IN ENGAGING THE DIGITAL
CUSTOMER. PINPOINT WHAT CAN OVERCOME
HURDLES.
126. PROCESS
“EXPLORING THE EXPERIENCE”
6
PROCESS STEPS
PAY CAREFUL ATTENTION TO NETWORK
EFFECTS IN PLAY. LOOK FOR DIRECT CUSTOMER
JOURNEYS VERSUS THE JOURNEYS OF THOSE
WHO INFLUENCE CUSTOMERS OR AMPLIFY.
127. PROCESS
“EXPLORING THE EXPERIENCE”
7
PROCESS STEPS
BE ON THE LOOKOUT FOR SERENDIPITOUS
IDEAS FOR PRODUCT OR SERVICE INNOVATION.
WHAT IS THE BIGGEST CUSTOMER PAIN POINT?
CAN WE PROVIDE ANYTHING NEW TO SOLVE IT?
129. AT THIS STAGE, YOU WILL
HOPEFULLY HAVE MADE HEADWAY
ON STARTING THE JOURNEY TO
DIGITAL TRANSFORMATION.
130. MAPPING THE CUSTOMER
EXPERIENCE, HAVING A VISION AND
BUILDING A TEAM WILL GO A LONG
WAY IN AIDING INVESTMENT CHOICES
AND OPTIMIZATION AND DRIVING
REAL BUSINESS BENEFIT
131. UPDATED VISION
BENEFITS OF DIGITAL TRANSFORMATION
1
CULTURE OF INNOVATION
2 IMPROVED CUSTOMER JOURNEY3
GREATER COMPETITIVE ADV.4
IMPROVED EFFICIENCY7
INCREASED COLLABORATION5
DEEPER DATA ANALYSIS8
EMPOWERED WORKFORCE6
INCREASED CONV. & LOYALTY
9
MODERNIZED AND, MORE
IMPORTANTLY, HUMANIZED.
SERENDIPITOUS PRODUCTS &
SERVICES.
LESS FRICTION & IMPROVED
OUTCOMES.
AN EDGE OR BRACE AGAINST THE
COMPETITION.
LESS FRICTION BETWEEN
INTERNAL TEAMS.
EMPLOYEES AND EXECUTIVES
FEEL EDUCATED & EMPOWERED.
PROCESSES AND DECISION
MAKING ARE MORE RAPID.
DEEPER UNDERSTANDING OF THE
CUSTOMER AND THEIR BEHAVIOR.
SEAMLESS, 360 EXPERIENCE
IMPROVES LONG TERM RESULTS.
132. FINAL THOUGHT:
I HAVE USED THE WORD
TRANSFORMATION A LOT HERE, BUT
REMEMBER THE DANGER OF THIS
WORD IS IT SUGGESTS AN END POINT
IMAGE BY FOLKERT GORTER
133. TRANSFORMATION DOES NOT END. IT
MUST BECOME A MINDSET, TO
CONSTANTLY EVOLVE AND RESPOND
TO CHANGING FORCES.
IMAGE BY FOLKERT GORTER
134. “The ability to learn faster than your
competitors is the only sustainable
competitive advantage.”
135. HI, I’M MAT FORD.
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