TH18 Harnessing the potential of digital -
growing profits and driving down operating
costs
Presented by:
George Evans
Commercial Director (Asia Pacific)
Precedent

The
Website
Web
strategy
Digital
strategy
Digital
transformation
WE ARE EVOLVING FROM A MARKETING CENTRIC
TO BUSINESS WIDE VIEW OF THE WEB
Marketing centric
Business-wide impact

THOSE ORGANISATIONS THAT DO NOT FUNDAMENTALLY TRANSFORM
ARE RAPIDLY BECOMING IRRELEVANT

IF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON AN
E-COMMERCE APPENDAGE TO YOUR BODY CORPORATE,
THEN THINK AGAIN.
WE PROMISE YOU THAT WON'T WORK...
YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT
RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE AN 8.0
EARTHQUAKE, YOU MUST BE PREPARED FOR THE REARRANGEMENT THAT
WILL INEVITABLY OCCUR.
Keyur Patel & Mary Mccarthy | Digital Transformation, 2000
DIGITAL TRANSFORMATION IS ABOUT FUNDAMENTAL CHANGE

DIGITAL TRANSFORMATION REFERS TO THE CHANGES ASSOCIATED WITH THE
APPLICATION OF DIGITAL TECHNOLOGY IN ALL ASPECTS OF HUMAN SOCIETY.
DIGITAL TRANSFORMATION MAY BE THOUGHT AS THE THIRD STAGE OF EMBRACING
DIGITAL TECHNOLOGIES:
DIGITAL COMPETENCE -> DIGITAL LITERACY -> DIGITAL TRANSFORMATION.
THE LATTER STAGE MEANS THAT DIGITAL USAGES INHERENTLY ENABLE NEW TYPES OF
INNOVATION AND CREATIVITY IN A PARTICULAR DOMAIN, RATHER THAN SIMPLY ENHANCE
AND SUPPORT THE TRADITIONAL
Wikipedia | ‘Digital Transformation’
TODAY WE WILL EXPLORE WHAT IT MEANS
TO ACHIEVE DIGITAL TRANSFORMATION

Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
AND THERE IS NO POINT IN SIMPLY WAITING TO SEE WHAT OTHERS DO
Keyur Patel & Mary Mccarthy | Digital Transformation, 2000

Innovators
2.5%
Early
Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
THOSE WHO DO NOT INNOVATE WILL FALL IREVOCABLY BEHIND
Keyur Patel & Mary Mccarthy | Digital Transformation, 2000

WE’RE GOING TO EXPLORE 5 KEY THEMES
1. Customer service, the missing link
2. Harnessing the wisdom of crowds
3. New money models
4. The tricorder
5. The Internet of things, and big data
@precedentapac

WE’LL ALSO HELP YOU FIND YOUR INNER HERO…

Customer service, the missing link

MARKETING CAN NO LONGER SIMPLY FOCUS ON AIDA
IT MUST FOCUS ON AIDA AND ITS REFLECTION
The AIDA reflection | Mark Sherwin, Precedent 2013
AWARENESS
INTEREST
DESIRE
ADVOCACY
INVOLVEMENT
DELIVERY
ACTION

LOVEFILM – FAILING AT THE FINAL HURDLE

FORMULA ONE MELBOURNE – DELIVERY, INVOLVEMENT, ADVOCACY

TECHNOLOGY ENABLED CUSTOMER SERVICES

TECHNOLOGY ENABLED CUSTOMER SERVICES

TECHNOLOGY ENABLED CUSTOMER SERVICES

REPLICATING HUMAN INTERACTION?

Harnessing the wisdom of crowds

RESEARCH AND DEVELOPMENT - GOLDCORP

x
FINANCING - KICKSTARTER

OPERATIONAL RUNNING - GIFF GAFF

TURNING ADVOCATES INTO STAKEHOLDERS
Stakeholders
Idea
generation
Research and
Development
Financing
Operations

START WITH A LITTLE NAVEL GAZING

New money models

AS CUSTOMERS MOVE TO A SUBSCRIPTION ECONOMY BUSINESSES MUST MOVE
FROM A PRODUCT ORIENTATED TO CUSTOMER ORIENTATED VIEW

TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE
FLEXIBLE APPROACH TO ACCESS

TRADITIONAL ORGANISATIONS WILL BE USURPED BY THOSE OFFERING A MORE
FLEXIBLE APPROACH TO ACCESS

CUSTOMERS WANT INCREASINGLY GRANULAR PURCHASING OPTIONS
MAKE THIS SIMPLE, FLEXIBLE AND VALUABLE AND THEY WILL RETURN

THESE MODELS ARE STARTING TO PERFUSE
INTO MORE NICHE APPLICATIONS AND SECTORS

The tricorder

EVERY EMPLOYEE
WITH MORE COMPUTING POWER
AT THEIR FINGER TIPS THAN
THE SPACE SHUTTLE.
ANYTIME…ANYWHERE

CONVERGENCE PUTS INCREDIBLE POWER IN THE PALM OF OUR HAND
Wired UK | 20 Years of Wired | June 2013

DIGITAL CAN UNCHAIN YOUR EMPLOYEES FROM THEIR DESKS
OFFERING INNOVATIVE NEW PRODUCTIVITY SOLUTIONS

AS DIGITAL WALLETS BECOME MORE MAINSTREAM THE MOBILE
OFFERS HUGE EFFICIENCY AND PRODUCTIVITY BENEFITS

INTEGRATING DIGTAL WITH THE PHYSICAL WORLD (PHYGITAL)
CREATE INNOVATIVE NEW CUSTOMER SERVICE OPTIONS

The internet of things, and big data

The internet of things isn’t wi-fi fridges and devices with bolt on
connectivity: it’s tiny, cheap sensors that will bring everyday objects
to the network – in their billions’
‘By strapping a receiving computer to the side of it, the internet
fridge brings the internet to the device. By connecting transmitting
sensors to the network, the internet of things brings the device to
the internet.’
BEN HAMMERSLEY | WIRED, 2013
NOT A FRIDGE WITH AN IPAD STRAPPED TO IT…

DIGITAL CAPABILITY IS NO LONGER RESTRICTED TO
HIGH END COMMUNICATION DEVICES

Beecham Research`s Connected Devices Sector Map | http://beechamresearch.com/article.aspx?id=4
CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD ACROSS A
DIVERSE RANGE OF ‘THINGS’

Beecham Research`s Connected Devices Sector Map | http://beechamresearch.com/article.aspx?id=4
CONNECTIVITY AND DIGITAL CAPABILITY WILL BECOME STANDARD ACROSS A
DIVERSE RANGE OF ‘THINGS’

THIS CREATES HUGE OPPORTUNNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS

THIS CREATES HUGE OPPORTUNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
Use case from The New Digital Age | Schmidt and Cohen 2013

THIS CREATES HUGE OPPORTUNNITY FOR NEW MULTI-INPUT,
MULTI-OUTPUT DIGITAL INTERACTIONS
Use case from The New Digital Age | Schmidt and Cohen 2013

WHILST PERSONAL DEVICES MAY IN FACT MAKE UP AN INTERNET OF THINGS,
COMMERCIAL AND MUNICIPAL APPLICATIONS HAVE MUCH WIDER DATA
OPPORTUNITIES

AS THESE DEVICES STORE DATA IN THE CLOUD WE WILL HAVE ACCESS TO
MORE DATA ABOUT OUR WORLD THAN EVER BEFORE

THIS CAN LEAD TO INNOVATIVE NEW APPROACHES TO CUSTOMER INSIGHT,
AND PRODUCT AND SERVICE DESIGN
Mobile phone data redraws bus routes in Africa, BBC | http://www.bbc.co.uk/news/technology-22357748

Gotcha, but how do I make that 15%?

DIGITAL MUST MOVE FROM A MARKETING FUNCTION
TO A BUSINESS-WIDE IMPERATIVE
Daring to be Digital | Adrian Porter, Head of Strategic Research, Precedent 2013

DIGITAL TRANSFORMATION MUST INTERLINK
WITH ALL PARTS OF THE BUSINESS
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
DIGITAL
TRANSFORMATION

AND TO GATHER SUPPORT IT MUST
DELIVER TO ALL PARTS OF THE BUSINESS
Digital Transformation | Adrian Porter, Head of Strategic Research, Precedent 2013
DIGITAL
TRANSFORMATION
DIGITAL
TRANSFORMATION

GENERATE IDEAS AND LOOK FOR THOSE IDEAS
THAT IMPACT ACROSS ORGANISATIONAL GOALS

MOST EXECUTIVES DON’T USE SOCIAL NETWORKS OR SMART PHONES.
MANY DON’T EVEN READ THEIR OWN EMAIL.
SO TRYING TO CONVINCE DECISION MAKERS THAT THIS IS A WAR
FOUGHT ON THE BATTLEGROUND OF TECHNOLOGY IS IN AND OF
ITSELF FIGHTING A LOSING BATTLE.
BRIAN SOLIS | WHAT’S THE FUTURE OF BUSINESS, 2013
WHILST SENIOR MANAGEMENT MAY SUPPORT CHANGE
THEY MAY TO BE THE ONES TO DRIVE THE CHANGE.

AVOID STARTING WITH A HUGE TECHNOLOGY SOLUTION
INSTEAD LOOK FOR SMALL CHANGES THAT CAN DELIVER BIG IMPACTS

THE INTERNET IS AMONG THE FEW THINGS HUMANS HAVE BUILT THAT THEY
DON’T TRULY UNDERSTAND. IT IS THE LARGEST EXPERIMENT INVOLVING
ANARCHY IN HISTORY.
AS GLOBAL CONNECTIVITY CONTINUES ITS UNPRECEDENTED ADVANCE. MANY
OLD INSTITUTIONS AND HIERACHIES WILL HAVE TO ADAPT OR RISK BECOMING
OBSOLETE.
THE STUGGLES WE SEE TODAY IN MANY BUSINESSES, ARE EXAMPLES OF THE
DRAMATIC SHIFT FOR SOCIETY THAT LIES AHEAD.
AND WE’VE BARELY LEFT THE STARTING BLOCKS.
Eric Schmidt & Jared Cohen | The New Digital Age, 2013

WE SHOULD ALL BE CONCERNED ABOUT
THE FUTURE BECAUSE WE WILL ALL HAVE
TO SPEND THE REST OF OUR LIVES THERE.
Charles F. Kettering, American inventor and businessman

@precedentapac

5 sectors
education
membership organisations
third sector
financial services
health

23 years
experience
quality
stability
loyalty
results
25

80 experts
strategy & research
branding & communications
user centred design
development & hosting
digital marketing
160

LONDON
EDINBURGHCARDIFF
PERTHMELBOURNE
HONG KONG

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Disclaimer
This presentation represents the opinion of the author(s) and not necessarily those
of the Institute of Chartered Accountants in Australia (the Institute) or its members.
The contents are for general information only. They are not intended as professional advice
– for that you should consult a Chartered Accountant or other suitably qualified professional.
The Institute expressly disclaims all liability for any loss or damage arising from reliance
upon any information in these papers.
The Institute of Chartered Accountants in Australia. Formed in Australia. Members of the
Institute are not liable for the debts and liabilities of the Institute. ABN 50 084 642 571.
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