Evidenced by ‘before and after’ case studies from famous brands and major organisations, Tim O'Donnell (Operations Director) and Rob van Tol (Senior Strategy Consultant) will explore how you can build a digital culture and achieve your organisation’s own digital transformation.
You’ll learn about:
The three stages of digital transformation
The top six global trends affecting all sectors and industries
How to craft your own digital vision in order to enhance customer experience, gain competitive advantage, improve engagement and drive down the cost to serve
Tim and Rob will also share behind-the-scenes insights from Precedent's own transformation programmes, working with clients such as the British Heart Foundation, the University of Aberdeen and BlackRock.
6. Evolving an organisation’s ways of
working in order to continue
delivering its mission in the face of
changing technology, competition,
audience need and behaviour.
@precedentcomms #precsem
30. “ To provide our customers
with the most convenient
access to media entertainment.”
@precedentcomms #precsem
31.
32.
33. “To be the best global entertainment
distribution service.”
@precedentcomms #precsem
34.
35. THEN TO NOW:
NETFLIX
• 1997 Company founded
• 2007 1 billionth DVD delivered
• 2014 Spent $0 on marketing DVDs vs. $US65
million per quarter on streaming
• 2015 Launched in Australia and New Zealand
• 2016 Spending $US5 billion on programming
• 2017 Expanding to stream in 200 countries
@precedentcomms #precsem
46. 10 Best CDO Practices for
Dealing with Digital Transformation
1. Buildahigh-performancedigitalteam
2. Digitalshouldbeeveryone'sjob
3. Don'tdodigitalforthesakeofdigital
4. Dofewerthingsbetter
5. Createanatmosphereofcollaboration
6. Bakedata-informedthinkingintotheculture
7. Thinkfromtheoutside-in
8. Sometimesit'sbettertobegforforgivenessthenaskpermission
9. Getexperimentalandanalytical
10. Managementneedstolivedigital
Perry Hewitt, Harvard Chief Digital Officer
47. BARRIERS TO
CHANGE
• Misconceptions about digital
• Departments trapped in silos
• Traditional culture and mind sets
• Rewards for being risk-averse
• Small budgets (and getting smaller)
• Wide gaps in audience knowledge
@precedentcomms #precsem
48. DIGITAL
• insight-lead
• radical idea seeking
• customer driven
• constraints limited
• fashion influenced
MANAGEMENT
• finance-led
• consensus seeking
• agenda driven
• resource limited
• ego influenced
DIFFERENT
LANGUAGE
49. “In the last 5 years, the world
has moved faster outside the
business than in it.”
H O W W O U L D Y O U T R A N S F O R M ?
@precedentcomms #precsem
50. “Our structure is too
cumbersome, decision
making too slow.”
H O W W O U L D Y O U T R A N S F O R M ?
@precedentcomms #precsem
51. “We will be faster with
innovation, smarter with
taking risks, bolder with
moves that drive
transformation.”
H O W W O U L D Y O U T R A N S F O R M ?
@precedentcomms #precsem
60. • Audiences are already digital-first
• Competition from other sectors and areas
• Opportunities to cost-save and grow reach
• Competition for top staff talent
• ‘Traditional’ services under scrutiny
• Service ‘shelf-life’ will only get shorter
@precedentcomms #precsem
REASONS TO
CHANGE
74. STEP 1: TRANSFORM THE
SURFACE
H O W T O B U I L D A D I G I T A L C U LT U R E
✱ Tackle a specific problem or perception
change online, with measurements in place.
✱ Create digital versions of existing offerings,
incentivising their adoption.
✱ Track everything and share victories widely
and loudly within the organisation.
@precedentcomms #precsem
120. STEP 2: TRANSFORM FOR
AUDIENCES
✱ Collaborate outside comfort zones to enhance
experiences for priority audiences.
✱ Make on-going audience feedback and
engagement part of every new initiative.
✱ Track and escalate barriers to create plans and
business cases for overcoming them.
@precedentcomms #precsem
H O W T O B U I L D A D I G I T A L C U LT U R E
129. STEP 3: TRANSFORM THE
INTERNAL
✱ Get the right investment and authority, set
expectations and update plans throughout.
✱ Tackle business critical processes and systems
first with clear benchmarks and targets.
✱ Identify and implement ‘quick wins’ throughout
using existing resources and skillsets.
@precedentcomms #precsem
H O W T O B U I L D A D I G I T A L C U LT U R E
ROB Hello & Welcome – Intros
DT – bandied about
What does it mean?
Look what at orgs have done
Practical tips> TIM
TIM Start with the basics…
TIM Digital touches every part of a business
Even ‘phygital’
Cross-cuts departments and silos
Is a menu of options to improve your business
>ROB
ROB Used well – digital can TRANSOFRM your business – or so we’re told
Panacea for all ills – e-bay millionaires to FB and Google
If only you can tap into it….
DT has gone top of agenda
Everyone is doing … ish
ROB But if you are not a FB or Google – what does DT mean?
ROB Key to this is your mission..
That’s the secret
Not in isolation. Use differently depending on context of what you want to achieve
Digital and Business strategy are inextricably linked
How can digital help you better deliver to your business strategy?
ROB The Pyramid of Digital Loveliness Digital has to run in parallel with the BusinessIt is not outside of or on top ofIt is the shift from HAVING a Website to BEING DigitalWith the Mission at the top>TIM
TIM So in the example of Precedent…
This is WHY we exist
TIM In 1989 HOW delivered it = CD Roms in our studio in Shoreditch
TIM Fast forward 26 years
How has changed dramatically
Grown – multi disciplines
TIM Now we are a Full Service agency
Delivers to clients’ changing needs.
Those changes are going to have to accommodate some massive changes
>ROB
ROB Here’s a quick glace of 6 changes
We are just at the foothills of theseBut they will change so much
ROB Digital natives
Know no different from digital
Far more interested in environment
Being change makers
Not totally driven by materialism
Want to see the value of their input
ROB Automation and algorithms are replacing limited skill-set jobs
Massive workplace dislocation
ROB World is getting smaller
WORLD WIDE Web
Cant just think about your audience in location or physical building
Achieving things on a global scale – being world class >TIM
TIM Life’s special moments are often seen through a viewfinder
Even something as intimate as a wedding is obscured by a smartphone
TIM Technology adapting to climate change – natural disaster – help people know you’re safe
Social networks
TIM Instead of buy the world a coke its all about how it related to you as an individual >ROB
ROB Knowing all of this – knowing your mission, understanding trends etc..
If you could start from scratch …
ROB
ROB Online? Offline? Blended?
ROB If they are made up of younger or older
ROB Socially driven? Mobile driven? Web driven?
ROB Critical to DT is establishing a digital culture
Won’t achieve without it
Look at some examples
DT is a journey – different for everyone (eg SME v Corporate; start up v long heritage; B2B v B2C)
ROB 3 key stages – things you can do at every stage to harness potential
ROB All about the look – tactical changes
Trial and test small changes to test water
Move quickly
Build business case
Generate enthusiasm and buy-in
ROB Change what you can within existing constraints
Changing tech can take years
Don’t wait for that to happen
Look at HOW your audiences are using digital
ROB Then transform internally
Plans in place – know they take time
ROB Lets look at some examples
Start with another mission statement
>TIM
TIM Any guesses?
TIM Clung rigidly to retail model
Laughable how spectacularly they failed to adapt
Didn’t pay ANY attention to changing behaviours and technology
Result? Total annihilation by Netflix
TIM Champions of DT and this is why…
TIM Weren’t always huge digital powerhouse
TIM That meant mail order DVD in 1997
TIM Since then they have been
Total antithesis to Blockbuster – Netflix constantly change and adapt
Mail order DVDs
Recognised advent of streaming media online
Customers preferred online
Created online subscription model
And by 2014….
TIM Pay off demonstrated in aug 2015
$53 billion wiped off cable and tv on stock market
TIM How did they do it?
Firstly the recognised am opp and tested it
TIM Just trialled it
see how old it is from video quality measure
As connections improved – had built picture of what auds liked
informed business model
TIM Critical to this was audience experience…
Step2 Netflix really got it right
Understanding
Produced exclusive content they liked
Recognised disrupted experience -
TIM Waiting for new episodes
Sit on the sofa with a bag of Doritos watching 24
Binge watching
Released series in one go
TIM Result?
150 million new subscribers
Cut titles and raised subscription fees
Didn’t lose customers
TIM And that 150k allows them to transform internally
Allowed them to spend $65billion programing
TIM But also created a whole digital culture
And the PPT that documented it went viral with over 5 million views
As much holiday as you need
Interview with competitors
Truly embedded digital culture…
Still true to distribution service….
>ROB
The second conversation took place in 2002, a few months after our IPO. Laura, our bookkeeper, was bright, hardworking, and creative. She’d been very important to our early growth, having devised a system for accurately tracking movie rentals so that we could pay the correct royalties. But now, as a public company, we needed CPAs and other fully credentialed, deeply experienced accounting professionals—and Laura had only an associate’s degree from a community college. Despite her work ethic, her track record, and the fact that we all really liked her, her skills were no longer adequate. Some of us talked about jury-rigging a new role for her, but we decided that wouldn’t be right.
We faced the latter challenge at Netflix in a fairly dramatic way as we began to shift from DVDs by mail to a streaming service. We had to store massive volumes of files in the cloud and figure out how huge numbers of people could reliably access them. (By some estimates, up to a third of peak residential internet traffic in the U.S. comes from customers streaming Netflix movies.) So we needed to find people deeply experienced with cloud services who worked for companies that operate on a giant scale—companies like Amazon, eBay, Google, and Facebook, which aren’t the easiest places to hire someone away from.
Our compensation philosophy helped a lot. Most of its principles stem from ideals described earlier: Be honest, and treat people like adults. For instance, during my tenure Netflix didn’t pay performance bonuses, because we believed that they’re unnecessary if you hire the right people. If your employees are fully formed adults who put the company first, an annual bonus won’t make them work harder or smarter. We also believed in market-based pay and would tell employees that it was smart to interview with competitors when they had the chance, in order to get a good sense of the market rate for their talent. Many HR people dislike it when employees talk to recruiters, but I always told employees to take the call, ask how much, and send me the number—it’s valuable information.
Even if you’ve hired people who want to perform well, you need to clearly communicate how the company makes money and what behaviors will drive its success. At Netflix, for instance, employees used to focus too heavily on subscriber growth, without much awareness that our expenses often ran ahead of it: We were spending huge amounts buying DVDs, setting up distribution centers, and ordering original programming, all before we’d collected a cent from our new subscribers. Our employees needed to learn that even though revenue was growing, managing expenses really mattered.
ROB
ROB Take stock
ROB It is a big ask
ROB I bet this is true for a lot of you
ROB We need to jump outside the digital-silo
Of course, one day, no one will say “digital”
But when the gap is bridged and you speak the same language, things happen…
>TIM
TIM Who said this…
TIM and
TIM and finially
TIM McDonalds CEO
TIM They realised that from a position of inventing the market, they were quickly losing customers.
TIM Their competitors were becoming more innovative
TIM Taco Bell did the audience research and understood that when they allowed customers to customise their order…
TIM Customers would tailor their order with extras that significantly added to their spend
TIM McDonalds responded in kind
TIM And found similar results
TIM And allowed customers to play with idea and generate news for them
>ROB
ROB These are all good reasons, but the killer is the first … you need to go where the audience is.
ROB So, we’d like you to have a moment to digest this. So we’d like you to turn to your neighbour and just take a couple minutes to talk about your VISION and your barriers to achieving that digitally [leave 5 minutes]
[Bring group back together and ask for a few responses from the group about their VISION and just TOP TWO barriers]
{Probable Break}
ROB Welcome backWe’re now going to spend the rest of the time looking at different case studies.
ROB First off we are going to look the Surface level of transformation
>TIM
TIM After a period of global expansion, Starbucks began to go backwards
TIM 2008 where sales declined, stores were closing and the stock price was under 10$
TIM
TIM
TIM
TIM
TIM Unobjectionable but internally focused old versino
TIM Revamped into being focused on “you” and “I” … not them.
TIM Without doing anything structural – “just” changing the content message, we achieved a very satisfying improvement
>ROB
[Rob] These surface improvements can be even bigger in the “internal” experience – where most of your time is spent being a “member” – in this case a student.
So if you think of yourself as a host of separate point solutions, then this assembly of sites and sub-sites and tools is fine.
But users think that you are one place, so this is bewildering and confusing (and a brand mess). Perfect for a remedial Surface solution to bring all these obviously different experiences together (somewhat)
ROB So the take-away we offer for Surface improvements
ROB We are particularly passionate about this
Listen and understand
Match to your objectives
Anyone can do it…
Even if Org is slow moving, bureaucratic, large, long before web, risk averse >TIM
TIM Synonymous with good UX
Who’d have thought?
Transformation based on simple improvements to audience experience
TIM Take power of attorney
Tiny part of content for gov.uk
Big deal for public
Impenetrable, confusing at a difficult time
Zip files – cost form no.s – 14 pages of horror
TIM Broken down into easy steps
Reduced content
Improved service
Reduced enquiries
TIM Result…
TIM Even have a video online about how easy it
‘uses people speak’
All need to do
Even DT – it’s just thinking of new ways to do stuff better
DT often falls into complexity – but effect you want is simplicity
Simplicity can have a massive impact>ROB
ROB For example: the old Gloucestershire site was very conventional
And very complicated
ROB We have brought a vibrancy and immediacy to it, simplifying to what the (prime) customer needs
ROB Selling in 24 words and 1 photo: “Bring a brand to market. Create your own design identity with a cutting-edge catwalk collection. Graduate with a competitive portfolio and industry contacts.” – We’ve transformed how they think about their website and how they sell themselves to younger people.
ROB Simplifying + Selling + You-based + Showcasing Excellence + Prioritising – has lead to great success and one small problem: whatever issues the University has with student recruitment, no one can blame it on the old whipping boy, the poor website.
Now they have a site younger people can fall in love with…
>TIM
TIM DT from a different angle
CRUK transformed impact of a public campaign using digital
Notoriously difficult 16-18 year old girls to listen to you
Chucked out traditional health message
Tapped into vanity
Identified where digital would have biggest impact
Digital photo booths and online celebrity endorsement
No better e.g. than Cancer Research’s R U V UGLY? campaign
reduce sunbed use in 16-18 year-old females
2 reasons for success
1 – tapped into mindset. No health message. Vanity – look old. Celebrities
2 – Took campaign to audiences - UV scanning cameras in shopping centres – free consultations.
In the weeks following the campaign, 46% of respondents reported that they had stopped using sunbeds, or were using them less. As a result of its success, the Department of Health decided to continue the campaign.
It was supported by a digital photo booth which took UV as well as normal photos, showing sun damage. It’s had great results, and since been commissioned by UK governments.
With an appearance obsessed audience, ‘prone to switching off to health messaging’ they focused on a pure-play vanity message – using a sunbed would make them look old before their time.
They used text speak, and came up with R UV UGLY? - leveraging the 'UV' in sunbeds and asking a question which could draw in engagement.
They used UV skin scanning cameras at the heart of the campaign, it graphically showed what lurked beneath the skin. This gave the audience an opportunity to see the damage already done - and therefore the very real risk of melanoma. Cancer research knew that their audience, obsessed with appearance, would find it irresistible, which a focus group confirmed.
Cancer Research intentionally targeted certain celebrities to support the campaign. These included Binky Felstead (Made in Chelsea), Maria Fowler and Sam & Billie Faiers (TOWIE), Gemma Merna (Hollyoaks), Kym Marsh (Coronation Street) and singer Paloma Faith. Their involvement was promoted through interview placements, placed skin assessments and by encouraging them to tweet to drive fans to the Facebook voucher page.
To make the campaign digital, they took it to where the audience hung out, creating a bespoke Facebook tab as a campaign hub. It contained information, as well as video tanning tips featuring Made in Chelsea's Binky.
TIM 46% of respondents reported that they had stopped using sunbeds, or were using them less.
Because they went the extra mile – potential savings in preventative measures
Department of Health decided to continue the campaign.
TIM BHF - Mission win the fight against heart disease
TIM Fighting for space – internal
TIM New strategy to focus on funding medical research
Shifted to focus to the supporter
And 3 core areas of revenue generation – donations, fundraising event and furniture and electrical
Easier to find and complete these tasks
- stripped down donation form
- why are you donating today?
- robust tech platform to manage events
- teams can sign up, co-ordinate and promote efforts
Results?
277% increase in donations
Conversion rate of 29% up from 8
30% increase in furniture and electrical collection requests
1,800 new event registrations
Phenomenal
TIM 277% increase in donations
Conversion rate of 29% up from 8
TIM Furniture & Electrical collections requests were again over 20,000 for the month of March up 40% on March 2014 and representing roughly £1 million to the BHF.
Event registrations were up 74% this month on the same month last year.
Heart Matters sign-ups were up 25%.
TIM Was a large overhaul of website
but was done without drastic changes to internal infrastructure
Have an ongoing programme – behind the scenes f&e still physical but will change
>ROB (to introduce Kirsty)
THIS IS OUR GOLDEN CIRCLE
What – our flagship MBA programme, 5 MScs and a Doctorate programme
How you do it – we offer rigorous masters level programmes that can be studied at a distance (or in the classroom) –
not just removing the physical classroom but offering the chance for people to study without leaving their employment,
Flexible on (location, mix and match, payment/fee structure)
no time limit (life long access to the course materials)
EX: Grad who started in 1990
Why (purpose cause belief) – as the graduate school of business at HWU we want to offer top class business education to anyone who has talent regardless of where they are in the world and what access they previously had to formal education
Background
Before the internet not many took on that challenge, but now we have competition for all sides;
from ivy league universities offering programmes online to
Lynda.com on LinkedIn and moocs offering interesting courses at all levels.
So we need a digital transformation to turn a successful analogue business into a successful digital business…
95
96
97
We needed to create a clear and logical prospect journey
To make it Simple,
because of our why; That we want to bring our programmes to anyone, anywhere at any time;
That makes the programme amazingly flexible
Which is good for students
Not so good for us … If choice truly is the enemy of decision making – if we bombard the audience with choice they become paralysed by it
And we have infinite choice and combinations
There’s…
1 MBA, 5 MBAs with specialisms, 4MScs and a doctorate programme
take ten years to complete or three
sit exams anywhere; we promise to find a centre near you
Go on-campus full-time, part-time - here, Dubai and Malaysia
Attend on-campus seminars
Work with 23 different teaching partners worldwide
Take the new Online tuition option
pay for each course separately,
in five currencies
Fees are subsidised depending where you are
All this across 166 countries
Long and hard sessions with Rob and the team – but we cracked it…
We concluded that
if prospects answer these 3 questions
In any order
They will quickly see what we have to offer
And cut through the complexity
So This concept is woven throughout the site
The what…
Choosing the programme that they're interested in
The how
Choosing the study method they want…
And where…
Gives them details on how what we can do for them in their country
We also concluded that we needed to have prospect-centric content…
by Using location
and weaving different types of content; video, imagery, statistics, testimonials, infographics
Into our prospect journey
We can make the experience much more personal
Answering ‘does someone like me do a programme like this’ - e.g. local testimonial video
Here's an example from
UAE…
As an example this is the homepage for the United Arab Emirates
Say Ahmad sent one of his friends to the site…
They see a relevant 1min video of Ahmad when he graduated last year
Scroll down…
And you'll see our journey emerge
He chooses the most relevant step for him
He chooses ‘what’
And from that, the MBA…
The mba programme page
interesting animated stats on MBA students
The course structure
links to all the courses
Scroll…
and our journey appears again…
If we choose ‘How’ this time we begin the Distance Learning route
And you get the idea…
to complete the journey on the page
He would choose where…
Or, Move on and look at other content, About Us is popular
And Fees
No surprise Fees is one of the most visited pages on the site
So we invested in some bespoke functionality
so that we can display the specific price
This is the fees page
We’re in the USA this time
If we choose MBA…
Then DL
Then answer yes we are in the USA…
We receive the Fees
Per course
Per interim milestone
Full MBA highlighted in pink
In USD
Design was a big part of the project too
We want to reflect our brand values:
Integrity
Quality
Intellectual rigour
And our personality:
Straightforward
Open
Ernest
honest
112
LOCATION
More lonely planet than traditional cityscapes
Back to our why, we are accessible anywhere…
114
116
Visits from mobile
Up %600
Now accounts for %70 of our traffic
118
ROB Understand your audiences – learn from trials
Push yourself outside of comfort zones – better to ask for forgiveness
Listen to your audiences
Don’t let barriers stop you – that’s how you get left behind…
ROB Finally, an example of the big, deep change that an ambitious organisation (or a desperate one) is willing to engage in
>TIM
TIM
TIM Old site
TIM Surface improvement site
TIM Identifying the Areas of Work needed to be delivered
TIM Deconstructing all the significant tasks to achieve each of those
TIM The result
TIM >ROB
ROB This is a brave and bold move and absolutely needs top level energy and scrutiny, while repeatedly delivering a steady stream of shorter term benefits. Otherwise it just risks becoming another over-costing, over-running, under achieving programme.
So, let’s no go there. To recap …>TIM
TIM
TIM It’s not scary and impenetrable
Small things can make a big difference
Its finding new ways to make stuff better
TIM What can you do at each stage – don’t run before you can walk
TIM Looking around you and thinking how can we capitalise on this?
TIM Think about that mission and build a picture
TIM And use it to inform your strategy and tactics going forward…