The document discusses how to build a digital culture and undergo digital transformation. It outlines three stages of transformation: surface changes to test bigger changes, transforming the audience experience within constraints, and transforming internal operations to match the new audience experience. Examples are given of companies like Netflix and government agencies that underwent digital transformation, starting with superficial changes and evolving to fully transform internally. The presentation emphasizes the need for organizations to evolve digitally and provides strategies for the transformation process.
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.
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29. “To be the best global entertainment
distribution service.”
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30. “ To provide our customers
with the most convenient
access to media entertainment.”
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31.
32.
33. 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
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43. “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 ?
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44. “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 ?
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45. “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 ?
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55. 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
56. 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
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57. • 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
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REASONS TO
CHANGE
76. 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.
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85. “As the agent of thestate we can do
things that are as good, if not better,
than the rest of the private sector.
I don't think people believed we could
do that 2 years ago.”
D I G I T A L T R A N S F O R M A T I O N
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99. 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.
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H O W T O B U I L D A D I G I T A L C U LT U R E
123. 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.
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H O W T O B U I L D A D I G I T A L C U LT U R E
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.
2008 where sales declined, stores were closing and the stock price was under 10$
2008 where sales declined, stores were closing and the stock price was under 10$
. 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%.
. 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%.
. 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%.
700 customer surveys coming in a week. Waitrose’s sales rose 2.9%, a relatively strong performance in a market which expanded by just 1%. grocery prices overall fell by 2%.
April last year, the retailer surpassed its £1bn online sales target over a rolling 52-week period, a year earlier than planned. Its click-and-collect business is going from strength to strength with more than a third of all online orders collected in John Lewis or Waitrose stores.
Mobile now accounts for more than 40% of traffic to Johnlewis.com and traffic is up more than 115% year on year.
700 customer surveys coming in a week. Waitrose’s sales rose 2.9%, a relatively strong performance in a market which expanded by just 1%. grocery prices overall fell by 2%.
April last year, the retailer surpassed its £1bn online sales target over a rolling 52-week period, a year earlier than planned. Its click-and-collect business is going from strength to strength with more than a third of all online orders collected in John Lewis or Waitrose stores.
Mobile now accounts for more than 40% of traffic to Johnlewis.com and traffic is up more than 115% year on year.