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BEHOLD! THE FIVE
HORSEMEN OF
DIGITAL DISRUPTION!
SPEAKER NARRATIVE: Good morning, everyone! Question: how many of you have seen X-Men: Apocalypse?
Today I want to talk about that buzzwordy catch phrase Digital Disruption – and I’m going to do it in the context
of super-powers. But in my little alternate reality, these super-villains are actually super-heroes, with powers that
will help you navigate the politically risky but often rewarding practice of Digital Transformation.
LOTS OF PEOPLE talk
about Disruption like
IT’S FAST AND PAINLESS.
EBEV EUROPE • JULY 2016 3
Puh-LEEEZE.
SPEAKER NARRATIVE: My friends and I in the consulting business roll our eyes when we see people throw around b-school
words like Disruption. It sounds so easy, so lofty. Pundits scold companies for not embracing it. But I’ve worked with enough
corporate teams to know that NO ONE likes disruption. Or change agents. Why? Processes are complex. They take a lot of
time to create and get right. Teamwork requires consistency and easily-learnt patterns. And we’re rewarded for getting stuff
done quickly. The reality is, Disruption is a negative. Dealing with it is just plain hard work.
EBEV EUROPE • JULY 2016 4
SPEAKER NARRATIVE: Over the last 26 years, I’ve worked with beverage companies, CPG firms, governmental bodies – a
total of 80 major brands — as a disruptor. I’m either hired to CREATE the disruption, or to help the organization DEAL with
disruption. Sometimes that’s been through factory automation, or convincing auto dealers to adopt digital tools, or figure out
a new way to problem-solve for customers. But the real challenge is helping them ADJUST to change. Learning new patterns.
Figuring out how to optimize. Who’s in charge. Adjusting to new tools.
Digital
Transfor-
mation,
Strictly
speaking…
Adopting and deploying
digital tech and
business models to
improve performance in
a measurable way.
GGooaall:: ppoossiittiivveellyy aaffffeecctt
yyoouurr mmaarrkkeett ppoossiittiioonn
aanndd vvaalluuee pprrooppoossiittiioonn..
EBEV EUROPE • JULY 2016 5
SPEAKER NARRATIVE: Instead of focusing on the impact of Disruption, let’s look at process of Transformation.
First, having a common definition is important. For me, it means adopting and deploying digital technologies and
business models to improve performance. Maybe that means reducing costs, or outcompeting another firm, or
reusing or monetizing manufacturing offal. No matter what, no change is good unless we’ve created a net positive.
EBEV EUROPE • JULY 2016 6
SPEAKER NARRATIVE: We’ve all seen digital disruption turn categories upside down. Riots over Uber. Industry-
sponsored legislation against AirBNB. Banking is being disrupted by offerings like Transferwise. Fashion is being
turned upside-down by Burberry, Net-a-Porter and Gilt. Now even AirBNB is being disrupted by OneFineStay,
which combines the AirBnB idea with hotel partnerships.
EBEV EUROPE • JULY 2016 7
SPEAKER NARRATIVE: Uber is old news, but what’s not often discussed is that Uber’s value surpassed GM, Ford,
Hertz, Avis in five years. GM and Ford are more than 100 years old. The benefits for customers were obvious:
friendlier drivers, better cars, convenience, automated receipts, automatic billing, and better customer experience.
EBEV EUROPE • JULY 2016 8
SPEAKER NARRATIVE: These are big shifts. Just a few months ago, San Francisco’s iconic Yellow Taxi filed for
bankruptcy, citing pressure from Uber and Lyft. Disruption happens fast – and the stakes are very high.
Meanwhile…
▶ 5000 Bev brands – only 150 or so
will surpass $10MM in sales this
year
▶ Consumer demand for healthier
beverages
▶ Ongoing interest in premium local
craft beers, spirits and sodas
▶ Or purchaseD by corporate brands
▶ Fragmentation through new
product categories like
teamonades, probiotics or THC
infusions
EBEV EUROPE • JULY 2016 9
SPEAKER NARRATIVE: Let’s look at Beverage. There are over 5,000 brands, but one big reality is that only 150
or so will top $10MM in sales in 2016. So while entry is easy, the new guys have to find new niches and ways to
compete. The good news is that consumer demand for healthy choices continues to increase. Demand for craft
products is still growing, so much that ”corporate beer” is buying up indies. As a native of Seattle, it was shocking
to see one of our local favorites, Elysian, get purchased by AB Inbev, especially since Elysian’s owners were long-
time board members of the Brewers Association. Finally fragmentation continues with new categories like
teamonades, probiotics and even THC infusions.
EBEV EUROPE • JULY 2016 10
SPEAKER NARRATIVE: And talking about innovation: I wanted to point out the wild west of cannabis-infused
beverages – everything from coffees (in Keurig packaging!), to teas, colas, spirits and wines. Strange to live in
Washington State and see these appearing on shelf, along with email invites to cannabis marketing conferences. I
mean, these are fully-baked products!
What your CPG peers are
thinking
44%believe digital
disruption
increases the
risk of going out
of business
70%believe
disruption will
come from inside
the categorY…
33%of “category
growth will
come from
categories that
don’t yet exist”
EBEV EUROPE • JULY 2016 11SOURCES: CISCO, “DIGITAL VORTEX” REPORT, 2015
G. SCOTT UZZELL, COCA-COLA VENTURING/EMERGING BEVS
SPEAKER NARRATIVE: You may think that consultants like me just get paid to instill fear in order to generate
new clients. But your peers in the CPG and beverage categories are the ones reporting this disruption. My job is
to help you anticipate the disruption and adjust in a way that reduces the transformational impacts and helps you
identify opportunities to beat the competition.
EBEV EUROPE • JULY 2016 12
SPEAKER NARRATIVE: Four major internal obstacles typically slow Transformation. The first is Chaos – in both
people and process. When one of my tech clients got social fever, it responded by creating over 800 FB accounts
and 600 Twitter accounts. No one could find the main page! The second is Risk Aversion. It’s politically very risky
to challenge the status quo or ask for a new budget – even when others have preceded you. Third is the Politics
generated by change – opportunists will try to take credit while others will sabotage efforts. Finally is what I call
Budget Darwinism – companies that only innovate when there’s an obvious ROI.
“No, you go first.”
25%
actively
disrupting
their own
businesses
32%
taking a
“follower”
approach
45%
say
disruption
isn’t a
“board-level
concern”
EBEV EUROPE • JULY 2016 13SOURCES: CISCO, “DIGITAL VORTEX” REPORT, 2015
SPEAKER NARRATIVE: So while a healthy 25% of CPG companies are actively disrupting their own businesses,
75% aren’t. 32% are waiting and seeing. And stunningly, a whopping 45% of their boards don’t think it’s a concern.
Maybe like Blockbuster. Circuit City. Radio Shack. Borders. And the Taxi business.
EBEV EUROPE • JULY 2016 14
The
future-
proofing
imperative
40%of incumbents across
all industries will be
displaced by digital
disruption in the next
five years.
SOURCES: CISCO/IMD, “DIGITAL VORTEX” REPORT, 2015
SPEAKER NARRATIVE: Despite management doubts, the hard reality is that the majority of CPG executives
believe that 4 out of 10 incumbents in their category will be displaced from leadership positions within the next
five years. Which means the time to begin future-proofing is RIGHT NOW.
EBEV EUROPE • JULY 2016 15
SPEAKER NARRATIVE: That brings us to our Five Horsemen. I’m taking some liberties here because technically
Apocalypse ISN’T one of the horsemen in the X-Men storyline. While they play villains in the movie, they also
possess five important superpowers YOU need to bring to enable successful transformation– the kind that gets
your boss – and you – your bonuses.
EBEV EUROPE • JULY 2016 16
PRECOGNITION
about future threats —
and opportunities
SPEAKER NARRATIVE: The first horseman (horsewoman) is Psylocke, who has the power of PRECOGNITION.
She can see the future. You need this skill as well. Not just to foresee future threats from inside or outside your
category, but also to see opportunities to craft new offerings that no one else has identified. That might be
something like caffeine-infused sodas, or the tea capsules Unilever’s Oliver and Nuria discussed yesterday.
EBEV EUROPE • JULY 2016 17
A culture of
SPEED & AGILITY
SPEAKER NARRATIVE: Angel has the ability of flight. He represents SPEED & AGILITY. Being able to move and
create quickly is a key component of organizational disruption. This means more rigorous updates, a fail-quickly-
and-adapt mentality, some organizational autonomy from departments like Legal and PR, and rapid and
continuous improvement.
The ability to
ALTER INFRASTRUCTURE
& PROCESS
18EBEV EUROPE • JULY 2016
SPEAKER NARRATIVE: Magneto represents the ability to move things that seem heavy and immobile: things like
INFRASTRUCTURE and PROCESS. Often in organizations, these are the most difficult things to move, and
changing processes or technologies can seem impossible. But with the right preparation, it can be done. More on
that shortly.
EBEV EUROPE • JULY 2016 19
ADAPTABILITY
to respond to changing
conditions
SPEAKER NARRATIVE: Storm controls	the	weather	conditions,	and	can	product	lightning,	a	tornado,	hail,	or	floods.	Like	
her,	you	need	ADAPTABILITY	to	respond	to	conditions.	Because	flexibility	and	adaptability	are	just	as	important	as	agility.	
One	food	client	of	mine	has	had	a	very	steady,	conservative	brand	proposition	for	decades,	but	through	recent	social	
listening	and	search	data,	found	that	playing	nice	was	getting	them	nowhere.	We’re	helping	them	change	their	value	
proposition	to	take	on	a	much	stronger	challenger	persona.
EBEV EUROPE • JULY 2016 20
LEADERSHIP
of both management
and employees
SPEAKER NARRATIVE: Finally, Apocalypse is the leader of his team and has the power to control people’s minds.
While that starts getting a little creepy, you DO need the powers of LEADERSHIP and PERSUASION to enable
the right changes within the organization. The ability to persuade management as well as leading people past their
own risk aversion. This is perhaps the most important superpower to have.
Measuring digital
maturity
A precog model for benchmarking
EBEV EUROPE • JULY 2016 21
SPEAKER NARRATIVE: So where do we start? We take a benchmark of your organization’s digital maturity level.
This lets us understand where you are now – as well as where your competitors are. From this benchmark, we can
begin to plot a path to smart disruption and effective transformation.
How execs typically
VALUE INNOVATION
LAUNCHING NEW
PRODUCTS, SERVICES
OR BUSINESSES
IMPROVING EXISTING
PROCESSES AND
COMPRESSING
LIFECYCLES
EBEV EUROPE • JULY 2016 22
IMPROVING
EFFICIENCIES
THROUGHOUT THE
VALUE CHAIN
FINDING NEW REVENUE
STREAMS WITHIN
EXISTING PRODUCTS &
SERVICES
LOWER DIGITAL MATURITY HIGHER DIGITAL MATURITY
SPEAKER NARRATIVE: These are all spot-on. But to implement ANY of these requires a number of enablers.
EBEV EUROPE • JULY 2016 23
SPEAKER NARRATIVE: Real commitment means taking a much more detailed, difficult look in the mirror. There
are numerous indicators that can help identify the needed attitudes, flexibility and leadership that will enable
disruption and innovation success. We start by interviewing key members of the organization in order to help us
rank the firm using standardized scales.
We can start to see patterns that
call out specific hindrances…
and POTENTIAL solutions
EBEV EUROPE • JULY 2016 24
Innovation LaggardS WISHFUL Thinkers
SPEAKER NARRATIVE: Different types of companies have different Innovation Archetypes. Each one has its own types of challenges.
Innovation Laggards are where many companies fall. No one is really comfortable or empowered to taking risks, management doesn’t really
see any need to innovate, employees aren’t incented to try. They will need a major marketplace upset to push them into action. Our second
example has the foresight and concern and desire, but struggles with a lack of management support, resources, training, process, and siloes.
who’s running the
sanitarium?
EBEV EUROPE • JULY 2016 25
LAME DUCKS GRASS-ROOTS ACTIVISTS
SPEAKER NARRATIVE: On the left, we have a Management Driven company, who is pushing the team to innovate and providing support to do
so. But the team isn’t properly trained nor motivated and isn’t on the same page. In this case, team storytelling, clarity around purpose, and
some incentives would help quite a bit. On the right is an Employee Driven company, in which, usually out of sheer necessity, the team has
become quite agile and flexible, but has little management support. The innovators here will need to connect the dots to executive KPIs and
competitive threats to effect the necessary change.
Sometimes, process
AND INNOVATION FIGHT
EBEV EUROPE • JULY 2016 26
SPEAKER NARRATIVE:
Sometimes a more staid,
process-driven company
can enjoy consistent
output, widespread
operational knowledge
and rigor. Process has
always worked for them.
But now the process is
actually getting in the
way of any meaningful
innovation.
LUDDITES
EBEV EUROPE • JULY 2016 27
SMART TRANSFORMATION IN
TEN STEPS
SPEAKER NARRATIVE: Once we have a benchmark metric and an innovation profile, we can determine the best transformational
approaches for that team. Let me share ten steps that make the pain of internal transformation less painful and more real.
EBEV EUROPE • JULY 2016 28
STEP 1:
INNOVATION
MANAGEMENT
PLAN
▶ Why change is needed
▶ THE CHANGES TO People, Process
& Tools YOU PROPOSE
▶ Future threats being addressed
▶ Including The cost of doing
nothing
▶ HOW ROI is calculated
▶ HOW INNOVATION WILL capture
additional value & revenues
▶ HOW Change is being managed
▶ Cross-functional success relies
on their participation (OR MANDATE)
SPEAKER NARRATIVE: A good innovation management plan will be well-researched in terms of the WHY (opportunities and threats). It will
describe and quantify the WHAT: the proposed changes to people, process and tools. This should include executive KPIs and ROI. The plan
will also include the HOW: how innovation will capture revenue, cut costs, and how change will be managed. Finally, it will include a
CAVEAT: their leadership and support will be required.
EBEV EUROPE • JULY 2016 29
STEP 2:
SUCCESS
METRICS
▶ HOW DO WE MEASURE
readiness?
▶ Our agility?
▶ Our flexibility?
▶ Our ability to
foresee?
▶ Executive acceptance
Or support?
▶ Employee
participation?
SPEAKER NARRATIVE: We need metrics to let us inow if we’re winning, Charlie Sheen-style. First, readiness. What’s the % of employees who
have received training and tools? Agility: how many departments are using agile practices on their projects? Flexibility: formal processes set up
to foster innovation, or number of projects with assigned sponsors. Foresight: # of ideas in the pipeline. Executive: # of executives who have
received training in innovation practice. % of resources dedicated to R&D. Employees: # of ideas submitted by employees. # of patents filed.
EBEV EUROPE • JULY 2016 30
Step 3:
IDENTIFY
THREATS
▶ WATCH FOR specific
threats to the
business
▶ Build these into your
innovation
management plan
▶ Be sure to look
outside your
category
SPEAKER NARRATIVE: You need a bit of precognition as well as a good research “muscle” to look for and identify
threats to your business. As you find them, build them into your management plan. And be sure to look outside
your category. You’d be surprised the places from which competitive threats emerge.
EBEV EUROPE • JULY 2016 31
Step 4:
LOOK WHERE
NO ONE ELSE
IS LOOKING
▶ Consider non-core
areas of the
business, by-
products or non-
monetized services
▶ Look for customer
value, customer
experience
improvement, or
convenience
SPEAKER NARRATIVE: One common mistake is to look only at the commonly accepted core areas of the
business. What if a by-product of the production process can be turned into a revenue stream? Or a common
service can be spun off or monetized?
EBEV EUROPE • JULY 2016 32
Step 5:
create a
culture of
risk-taking
and
experimen-
tation
▶ Employee encouragement
▶ Innovation jams
▶ TIP: Always tie opportunity
to bosses’ KPIs
▶ Google: 10% of employees
time is used to create new
products.
▶ OUTPUT: Project Fi
▶ 3M: 35% of company
revenues come from
products from the last four
years!
SPEAKER NARRATIVE: Employees need to know that experimentation and risk-taking are seen as Good Things
by the executive team. Employees have a natural aversion to being a change agent – especially in this economy.
Another tip: always tie the culture change to executive KPIs. For example, I lead cross-functional workshops in
which we identify the leadership team’s top three things that will get them their bonus this year. Not surprisingly,
a lot of projects get the green light when the executive team is making progress toward their own KPIs.
EBEV EUROPE • JULY 2016 33
Step 6:
create a
culture of
AGILITY
▶ ONE that can change
agilely with conditions
▶ Give cross-functional
bodies autonomy,
responsibilities, and
BASIC governance
▶ Consider Quarterly
personal goal setting
with six sprints per
quarter
▶ Align frequency with
other teams
SPEAKER NARRATIVE: You can’t just be more risky, you have to be agile. This works best when individual
departments, who have their own KPIs, are allowed to have some autonomy, within basic governance models.
Last year my team launched a social media ROI software platform. Each employee was given quarterly personal
goals, with performance sprints over two-week periods. We also aligned our sprints with development and
project management, so that we all examined our performance openly. No surprises. No fire drills.
EBEV EUROPE • JULY 2016 34
STEP 7:
IMPROVE
OUTPUT BY
RETHINKING
PROCESSES
AND TOOLS
▶ Ensure the team
helps examine and
update processES
▶ Get their buy-in on
their duties and
accountability
▶ Look for tools to
manage and
reinforce process
SPEAKER NARRATIVE: Taking a fresh look at processes and tools can provide huge efficiencies. For our social
ROI platform, we let the software, sales and project management teams create their own processes and choose
its own tools (which ended up being Jira, product wikis and Pipedrive). By doing so, we were able to go to market
in less than five months, using people spread across 13 timezones with two-week-long sprints. And the product
inspired several million euros worth of revenue in the first year of sales.
EBEV EUROPE • JULY 2016 35
STEP 8:
empower
team to
choose their
toolsets
▶ Choice is critical for
adoption
▶ Not necessarily approved by
I.T.
▶ You may have to ask
forgiveness
▶ Ex. Slack, trello, Evernote
▶ Adoption requires
constant reinforcement
▶ Tie to staff kpis &
PERFORMANCE
MEASUREMENT
SPEAKER NARRATIVE: Teams and toolsets deserve their own step. It’s critical that the team chooses the tool
sets that they prefer to work with. They may not be officially sanctioned by IT. You may have to ask forgiveness
or build a business case. But the team must have a set of tools that don’t get in the way of innovation.
Adoption requires constant reinforcement. You’ll need to shepherd the project, the team and anything they need
to succeed. And finally, to insure success, tie your staff’s KPIs to their learning and progress with the new tools.
EBEV EUROPE • JULY 2016 36
STEP 9:
Question
(and test)
everything
▶ Challenge
assumptions that
supported your
prior success
▶ stress-test the
ways in which you
deliver value to
customers
SPEAKER NARRATIVE: One thing that’s important to remember: commonly-held assumptions often prevent
innovation. Be sure to challenge EVERYTHING you know about your current business model and products. And as
you think about delivering value to customers, stress-test each concept. An innovation that can’t survive simple
tests is something you shouldn’t try to sell to management, or bring to market.
EBEV EUROPE • JULY 2016 37
STEP 10:
provide
constant
feedback &
communi-
cation
▶ Create
communication
plans for
employees &
management
▶ Innovation updates
▶ Success stories
▶ “Real” value (revenue,
cost-cutting,
competitive advantage,
talent transformation)
SPEAKER NARRATIVE: Finally, constant feedback and communication, to your management and to employees, is
absolutely essential. Provide regular “innovation updates” and celebrate team wins. Put them in the context of
what the CFO would be interested in: top-line revenue, cost-cutting, market share, and talent.
EBEV EUROPE • JULY 2016 38
Innovation
Example:
Jack in
the Box
▶ 9th largest fast food
chain in U.S.
▶ Merged marketing, R&D,
test kitchens &
consumer research into
a 6500M2 innovation
centre
▶ Reduced energy,
improved workflow
▶ Reduced costs
4-6% below CATEGORY
LEADERS
SPEAKER NARRATIVE: Every penny of the construction was analyzed for contribution to company profit. Menus,
menu boards, franchisee acceptance, all tested here. Ideas developed dropped overall food & beverage costs 4%
lower than Wendy’s and 6% lower than McDonalds. First to roll out instore kiosks to reduce wait times and get
orders exact. Created a butter toaster to spread butter on buns as they toast.
EBEV EUROPE • JULY 2016 39
Innovative
Example:
Reverend
Nat’s Hopped
cider
SPEAKER NARRATIVE: Introduced in 2013, this hopped cider is unique: an American cider with Belgian yeasts,
flavored with apricot juice, and dry-hopped.
EBEV EUROPE • JULY 2016 40
Brand
extensions:
SUJA - From
juice to
flavored
water
SPEAKER NARRATIVE: In December, San Diego-based Suja moved into the flavored water market with a new line
of probiotic-enhanced waters made from organic fruits, veggies, and spices, opening up new revenue streams via
new audiences and markets.
EBEV EUROPE • JULY 2016 41
Innovative
branding:
heineken
“subway
symphony”
and “bay
lights”
Installations
SPEAKER NARRATIVE: Heineken made a huge splash one year ago with its Subway Symphony, in which NYC
subway turnstiles played musical notes as people swiped their transit passes, creating dynamic musical tunes,
each one unique for each subway station. In December, it sponsored an LED lighting system on the San Francisco
bay bridge. These go so far beyond traditional signage or outbound marketing efforts and create a real “wow”
moment with consumers.
EBEV EUROPE • JULY 2016 42
DISTRIBUTION:
Drizly – “amazon
prime now”
meets local
liquor store
SPEAKER NARRATIVE: Originally launched in 2012, Drizly is finally getting wider acceptance of its one-hour from
click to doorbell alcohol delivery service. In the last month, the app rolled out service to a total of 18 US markets
and 1 in Canada. Consumers get extreme convenience, retailers get potential net uptick in online sales.
EBEV EUROPE • JULY 2016 43
Supplier-
driven: Ganeden
probiotics
providing 22500€
to startups to
create new
probiotic
products
SPEAKER NARRATIVE: And innovation in the beverage category isn’t just coming from the industry. Sometimes
it’s supplier-driven. Probiotics producer Ganeden launched an innovation sponsorship program aimed at helping
startups create new probiotic products. The winner of this contest of product ideas receives 22500€ in funding
along with guidance and expertise to launch their new product.
EBEV EUROPE • JULY 2016 44
SOCIAL GOOD:
waiakea hawaiian
volcanic water
Promotion
donates 1300
liters of water
for every 1 liter
sold
(sustainable
production & rPeT
Bottles)
SPEAKER NARRATIVE: Waiakea Hawaiian Volcanic Water normally donates 650 liters of water for every liter
sold online. This past December, they doubled their contribution, building wells and bringing clean water to the
people of Malawi. My wife and I have helped build wells in South Sudan, so this effort really struck me on a
personal level as innovative and meaningful.
EBEV EUROPE • JULY 2016 45
PSST!
innovation
doesn’t
have to be
huge to
pay off
▶ 72% of visitors expect
you to have a mobile site
▶ If you have one, 67% are more
likely to convert
▶ 61% will leave immediately if
it’s not
▶ A half-second Delay on an
e-comm site reduces
conversions by 20%
▶ Amazon estimates a one second
delay could cost them $1.6
BILLION ANNUALLY!
SOURCES: FAST COMPANY, 2012,
GOOGLE, 2015
SPEAKER NARRATIVE: I’ve shared all these big innovations, but you can be a super-hero of innovation with
small, easy steps as well. Larger firms will have talented, expert web teams who are already on top of this. But it
bears mentioning, because this is real money. Building the business case and innovating with your web team just
on this issue could create a significant impact on the company’s bottom line. YOU will be a superhero.
EBEV EUROPE • JULY 2016 46
We’re in the
best period
for
innovation…
in years!
▶ Many of you already
have large customer
bases
▶ If you’re working with
millennials, they’re
already digitally savvy
▶ R&D and Innovation
budgets are easier to
propose than ever
▶ 6% increase YOY
▶ Have increased 50% from
2007-2012
SOURCE: CISCO, “DIGITAL VORTEX” REPORT, 2015
EBEV EUROPE • JULY 2016 47
summary
▶ Don’t just think of marketing
innovation
▶ Consider the five horsemen
and start with a strong case
for management
▶ Require THEIR support!
▶ Build holistic organizational
metrics into your plan
▶ Give your effort constant
care and feeding!
SPEAKER NARRATIVE: In summary, don’t just think of innovation as being in the province of Marketing. It’s so
much more powerful when it’s cross-functional. Consider my five horsemen analogy and start with a strong
business case for the management team. Make it THEIR idea and tie it to THEIR KPIs, and then ask for their
support. Build holistic metrics that measure agility, speed, readiness, management support, infrastructure and
process. Finally, don’t forget that you will need to shepherd this change yourself, nurturing it, supporting it and
providing constant communication to both staff and your C-team.
ABOUT US
Precog Digital
We are a digital transformation consultancy
focused on advancing our clients’ digital
maturity.
We provide clarity in digital strategy and
options, fill digital skills’ gaps, and guide
the organisational change required to
survive disruption.
50 years’ combined experience transforming
global brands
Offices in Toronto and Seattle
WHAT WE DO
Transform your Digital Now.
Accelerate your Digital Future.
49
DIGITAL
TROUBLESHOOTING
COMPETITIVE
ADVANTAGE
CUSTOMER
EXPERIENCE
TALENT &
TRANSFORMATION
FUTUREPROOFING
SSCCRRAATTCCHH
IITTCCHHEESS
Vendor management;
process improvement;
digital strategies;
measurement & KPIs
TTAAKKEE BBAACCKK
LLOOSSTT GGRROOUUNNDD
Competitive audits;
Internal & external
strategies; storytelling;
automation
SSTTRREENNGGTTHHEENN
TTHHEE BBOONNDD
Engagement strategies;
CX strategies; agile
content creation;
customer data
architecture
GGRROOWW
CCAAPPAABBIILLIITTIIEESS
Agency transformation;
retained talent search;
interim Chief Digital
Officer
AANNTTIICCIIPPAATTEE
RRIISSKKSS
Crowd & On-
Demand economy;
emerging tech;
enterprise
futureproofing
Some of the brands
we’ve transformed
Experience
EBEV EUROPE • JULY 2016 51
SEAN MOFFITT
Partner (Toronto)
+1 416 458 2818
sean.moffitt@precog.digital
Former CMO, Labatts,
Heineken
Former P&G brand manager
Author of “Wikibrands”
#1 digital thought leader in
Canada
“OMG, are you Matt
Damon?”
EERRIICC WWEEAAVVEERR
Partner (Seattle)
+1 206 234 9328
eric.weaver@precog.digital
Former Chief Social Officer
for IPG Mediabrands
Former AKQA, Possible,
Y&R, DDB, Edelman Digital
80 major brands over 26
years
Irish/Japanese uber-nerd
EBEV EUROPE • JULY 2016 52
ERIC WEAVER
MANAGING DIRECTOR
PRECOG DIGITAL
SEATTLE & TORONTO
(COMING SOON TO STOCKHOLM!)
slideshare.net/weave
Eric@precog.digital
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The Five Horsemen of Digital Disruption

  • 1. BEHOLD! THE FIVE HORSEMEN OF DIGITAL DISRUPTION!
  • 2. SPEAKER NARRATIVE: Good morning, everyone! Question: how many of you have seen X-Men: Apocalypse? Today I want to talk about that buzzwordy catch phrase Digital Disruption – and I’m going to do it in the context of super-powers. But in my little alternate reality, these super-villains are actually super-heroes, with powers that will help you navigate the politically risky but often rewarding practice of Digital Transformation.
  • 3. LOTS OF PEOPLE talk about Disruption like IT’S FAST AND PAINLESS. EBEV EUROPE • JULY 2016 3 Puh-LEEEZE. SPEAKER NARRATIVE: My friends and I in the consulting business roll our eyes when we see people throw around b-school words like Disruption. It sounds so easy, so lofty. Pundits scold companies for not embracing it. But I’ve worked with enough corporate teams to know that NO ONE likes disruption. Or change agents. Why? Processes are complex. They take a lot of time to create and get right. Teamwork requires consistency and easily-learnt patterns. And we’re rewarded for getting stuff done quickly. The reality is, Disruption is a negative. Dealing with it is just plain hard work.
  • 4. EBEV EUROPE • JULY 2016 4 SPEAKER NARRATIVE: Over the last 26 years, I’ve worked with beverage companies, CPG firms, governmental bodies – a total of 80 major brands — as a disruptor. I’m either hired to CREATE the disruption, or to help the organization DEAL with disruption. Sometimes that’s been through factory automation, or convincing auto dealers to adopt digital tools, or figure out a new way to problem-solve for customers. But the real challenge is helping them ADJUST to change. Learning new patterns. Figuring out how to optimize. Who’s in charge. Adjusting to new tools.
  • 5. Digital Transfor- mation, Strictly speaking… Adopting and deploying digital tech and business models to improve performance in a measurable way. GGooaall:: ppoossiittiivveellyy aaffffeecctt yyoouurr mmaarrkkeett ppoossiittiioonn aanndd vvaalluuee pprrooppoossiittiioonn.. EBEV EUROPE • JULY 2016 5 SPEAKER NARRATIVE: Instead of focusing on the impact of Disruption, let’s look at process of Transformation. First, having a common definition is important. For me, it means adopting and deploying digital technologies and business models to improve performance. Maybe that means reducing costs, or outcompeting another firm, or reusing or monetizing manufacturing offal. No matter what, no change is good unless we’ve created a net positive.
  • 6. EBEV EUROPE • JULY 2016 6 SPEAKER NARRATIVE: We’ve all seen digital disruption turn categories upside down. Riots over Uber. Industry- sponsored legislation against AirBNB. Banking is being disrupted by offerings like Transferwise. Fashion is being turned upside-down by Burberry, Net-a-Porter and Gilt. Now even AirBNB is being disrupted by OneFineStay, which combines the AirBnB idea with hotel partnerships.
  • 7. EBEV EUROPE • JULY 2016 7 SPEAKER NARRATIVE: Uber is old news, but what’s not often discussed is that Uber’s value surpassed GM, Ford, Hertz, Avis in five years. GM and Ford are more than 100 years old. The benefits for customers were obvious: friendlier drivers, better cars, convenience, automated receipts, automatic billing, and better customer experience.
  • 8. EBEV EUROPE • JULY 2016 8 SPEAKER NARRATIVE: These are big shifts. Just a few months ago, San Francisco’s iconic Yellow Taxi filed for bankruptcy, citing pressure from Uber and Lyft. Disruption happens fast – and the stakes are very high.
  • 9. Meanwhile… ▶ 5000 Bev brands – only 150 or so will surpass $10MM in sales this year ▶ Consumer demand for healthier beverages ▶ Ongoing interest in premium local craft beers, spirits and sodas ▶ Or purchaseD by corporate brands ▶ Fragmentation through new product categories like teamonades, probiotics or THC infusions EBEV EUROPE • JULY 2016 9 SPEAKER NARRATIVE: Let’s look at Beverage. There are over 5,000 brands, but one big reality is that only 150 or so will top $10MM in sales in 2016. So while entry is easy, the new guys have to find new niches and ways to compete. The good news is that consumer demand for healthy choices continues to increase. Demand for craft products is still growing, so much that ”corporate beer” is buying up indies. As a native of Seattle, it was shocking to see one of our local favorites, Elysian, get purchased by AB Inbev, especially since Elysian’s owners were long- time board members of the Brewers Association. Finally fragmentation continues with new categories like teamonades, probiotics and even THC infusions.
  • 10. EBEV EUROPE • JULY 2016 10 SPEAKER NARRATIVE: And talking about innovation: I wanted to point out the wild west of cannabis-infused beverages – everything from coffees (in Keurig packaging!), to teas, colas, spirits and wines. Strange to live in Washington State and see these appearing on shelf, along with email invites to cannabis marketing conferences. I mean, these are fully-baked products!
  • 11. What your CPG peers are thinking 44%believe digital disruption increases the risk of going out of business 70%believe disruption will come from inside the categorY… 33%of “category growth will come from categories that don’t yet exist” EBEV EUROPE • JULY 2016 11SOURCES: CISCO, “DIGITAL VORTEX” REPORT, 2015 G. SCOTT UZZELL, COCA-COLA VENTURING/EMERGING BEVS SPEAKER NARRATIVE: You may think that consultants like me just get paid to instill fear in order to generate new clients. But your peers in the CPG and beverage categories are the ones reporting this disruption. My job is to help you anticipate the disruption and adjust in a way that reduces the transformational impacts and helps you identify opportunities to beat the competition.
  • 12. EBEV EUROPE • JULY 2016 12 SPEAKER NARRATIVE: Four major internal obstacles typically slow Transformation. The first is Chaos – in both people and process. When one of my tech clients got social fever, it responded by creating over 800 FB accounts and 600 Twitter accounts. No one could find the main page! The second is Risk Aversion. It’s politically very risky to challenge the status quo or ask for a new budget – even when others have preceded you. Third is the Politics generated by change – opportunists will try to take credit while others will sabotage efforts. Finally is what I call Budget Darwinism – companies that only innovate when there’s an obvious ROI.
  • 13. “No, you go first.” 25% actively disrupting their own businesses 32% taking a “follower” approach 45% say disruption isn’t a “board-level concern” EBEV EUROPE • JULY 2016 13SOURCES: CISCO, “DIGITAL VORTEX” REPORT, 2015 SPEAKER NARRATIVE: So while a healthy 25% of CPG companies are actively disrupting their own businesses, 75% aren’t. 32% are waiting and seeing. And stunningly, a whopping 45% of their boards don’t think it’s a concern. Maybe like Blockbuster. Circuit City. Radio Shack. Borders. And the Taxi business.
  • 14. EBEV EUROPE • JULY 2016 14 The future- proofing imperative 40%of incumbents across all industries will be displaced by digital disruption in the next five years. SOURCES: CISCO/IMD, “DIGITAL VORTEX” REPORT, 2015 SPEAKER NARRATIVE: Despite management doubts, the hard reality is that the majority of CPG executives believe that 4 out of 10 incumbents in their category will be displaced from leadership positions within the next five years. Which means the time to begin future-proofing is RIGHT NOW.
  • 15. EBEV EUROPE • JULY 2016 15 SPEAKER NARRATIVE: That brings us to our Five Horsemen. I’m taking some liberties here because technically Apocalypse ISN’T one of the horsemen in the X-Men storyline. While they play villains in the movie, they also possess five important superpowers YOU need to bring to enable successful transformation– the kind that gets your boss – and you – your bonuses.
  • 16. EBEV EUROPE • JULY 2016 16 PRECOGNITION about future threats — and opportunities SPEAKER NARRATIVE: The first horseman (horsewoman) is Psylocke, who has the power of PRECOGNITION. She can see the future. You need this skill as well. Not just to foresee future threats from inside or outside your category, but also to see opportunities to craft new offerings that no one else has identified. That might be something like caffeine-infused sodas, or the tea capsules Unilever’s Oliver and Nuria discussed yesterday.
  • 17. EBEV EUROPE • JULY 2016 17 A culture of SPEED & AGILITY SPEAKER NARRATIVE: Angel has the ability of flight. He represents SPEED & AGILITY. Being able to move and create quickly is a key component of organizational disruption. This means more rigorous updates, a fail-quickly- and-adapt mentality, some organizational autonomy from departments like Legal and PR, and rapid and continuous improvement.
  • 18. The ability to ALTER INFRASTRUCTURE & PROCESS 18EBEV EUROPE • JULY 2016 SPEAKER NARRATIVE: Magneto represents the ability to move things that seem heavy and immobile: things like INFRASTRUCTURE and PROCESS. Often in organizations, these are the most difficult things to move, and changing processes or technologies can seem impossible. But with the right preparation, it can be done. More on that shortly.
  • 19. EBEV EUROPE • JULY 2016 19 ADAPTABILITY to respond to changing conditions SPEAKER NARRATIVE: Storm controls the weather conditions, and can product lightning, a tornado, hail, or floods. Like her, you need ADAPTABILITY to respond to conditions. Because flexibility and adaptability are just as important as agility. One food client of mine has had a very steady, conservative brand proposition for decades, but through recent social listening and search data, found that playing nice was getting them nowhere. We’re helping them change their value proposition to take on a much stronger challenger persona.
  • 20. EBEV EUROPE • JULY 2016 20 LEADERSHIP of both management and employees SPEAKER NARRATIVE: Finally, Apocalypse is the leader of his team and has the power to control people’s minds. While that starts getting a little creepy, you DO need the powers of LEADERSHIP and PERSUASION to enable the right changes within the organization. The ability to persuade management as well as leading people past their own risk aversion. This is perhaps the most important superpower to have.
  • 21. Measuring digital maturity A precog model for benchmarking EBEV EUROPE • JULY 2016 21 SPEAKER NARRATIVE: So where do we start? We take a benchmark of your organization’s digital maturity level. This lets us understand where you are now – as well as where your competitors are. From this benchmark, we can begin to plot a path to smart disruption and effective transformation.
  • 22. How execs typically VALUE INNOVATION LAUNCHING NEW PRODUCTS, SERVICES OR BUSINESSES IMPROVING EXISTING PROCESSES AND COMPRESSING LIFECYCLES EBEV EUROPE • JULY 2016 22 IMPROVING EFFICIENCIES THROUGHOUT THE VALUE CHAIN FINDING NEW REVENUE STREAMS WITHIN EXISTING PRODUCTS & SERVICES LOWER DIGITAL MATURITY HIGHER DIGITAL MATURITY SPEAKER NARRATIVE: These are all spot-on. But to implement ANY of these requires a number of enablers.
  • 23. EBEV EUROPE • JULY 2016 23 SPEAKER NARRATIVE: Real commitment means taking a much more detailed, difficult look in the mirror. There are numerous indicators that can help identify the needed attitudes, flexibility and leadership that will enable disruption and innovation success. We start by interviewing key members of the organization in order to help us rank the firm using standardized scales.
  • 24. We can start to see patterns that call out specific hindrances… and POTENTIAL solutions EBEV EUROPE • JULY 2016 24 Innovation LaggardS WISHFUL Thinkers SPEAKER NARRATIVE: Different types of companies have different Innovation Archetypes. Each one has its own types of challenges. Innovation Laggards are where many companies fall. No one is really comfortable or empowered to taking risks, management doesn’t really see any need to innovate, employees aren’t incented to try. They will need a major marketplace upset to push them into action. Our second example has the foresight and concern and desire, but struggles with a lack of management support, resources, training, process, and siloes.
  • 25. who’s running the sanitarium? EBEV EUROPE • JULY 2016 25 LAME DUCKS GRASS-ROOTS ACTIVISTS SPEAKER NARRATIVE: On the left, we have a Management Driven company, who is pushing the team to innovate and providing support to do so. But the team isn’t properly trained nor motivated and isn’t on the same page. In this case, team storytelling, clarity around purpose, and some incentives would help quite a bit. On the right is an Employee Driven company, in which, usually out of sheer necessity, the team has become quite agile and flexible, but has little management support. The innovators here will need to connect the dots to executive KPIs and competitive threats to effect the necessary change.
  • 26. Sometimes, process AND INNOVATION FIGHT EBEV EUROPE • JULY 2016 26 SPEAKER NARRATIVE: Sometimes a more staid, process-driven company can enjoy consistent output, widespread operational knowledge and rigor. Process has always worked for them. But now the process is actually getting in the way of any meaningful innovation. LUDDITES
  • 27. EBEV EUROPE • JULY 2016 27 SMART TRANSFORMATION IN TEN STEPS SPEAKER NARRATIVE: Once we have a benchmark metric and an innovation profile, we can determine the best transformational approaches for that team. Let me share ten steps that make the pain of internal transformation less painful and more real.
  • 28. EBEV EUROPE • JULY 2016 28 STEP 1: INNOVATION MANAGEMENT PLAN ▶ Why change is needed ▶ THE CHANGES TO People, Process & Tools YOU PROPOSE ▶ Future threats being addressed ▶ Including The cost of doing nothing ▶ HOW ROI is calculated ▶ HOW INNOVATION WILL capture additional value & revenues ▶ HOW Change is being managed ▶ Cross-functional success relies on their participation (OR MANDATE) SPEAKER NARRATIVE: A good innovation management plan will be well-researched in terms of the WHY (opportunities and threats). It will describe and quantify the WHAT: the proposed changes to people, process and tools. This should include executive KPIs and ROI. The plan will also include the HOW: how innovation will capture revenue, cut costs, and how change will be managed. Finally, it will include a CAVEAT: their leadership and support will be required.
  • 29. EBEV EUROPE • JULY 2016 29 STEP 2: SUCCESS METRICS ▶ HOW DO WE MEASURE readiness? ▶ Our agility? ▶ Our flexibility? ▶ Our ability to foresee? ▶ Executive acceptance Or support? ▶ Employee participation? SPEAKER NARRATIVE: We need metrics to let us inow if we’re winning, Charlie Sheen-style. First, readiness. What’s the % of employees who have received training and tools? Agility: how many departments are using agile practices on their projects? Flexibility: formal processes set up to foster innovation, or number of projects with assigned sponsors. Foresight: # of ideas in the pipeline. Executive: # of executives who have received training in innovation practice. % of resources dedicated to R&D. Employees: # of ideas submitted by employees. # of patents filed.
  • 30. EBEV EUROPE • JULY 2016 30 Step 3: IDENTIFY THREATS ▶ WATCH FOR specific threats to the business ▶ Build these into your innovation management plan ▶ Be sure to look outside your category SPEAKER NARRATIVE: You need a bit of precognition as well as a good research “muscle” to look for and identify threats to your business. As you find them, build them into your management plan. And be sure to look outside your category. You’d be surprised the places from which competitive threats emerge.
  • 31. EBEV EUROPE • JULY 2016 31 Step 4: LOOK WHERE NO ONE ELSE IS LOOKING ▶ Consider non-core areas of the business, by- products or non- monetized services ▶ Look for customer value, customer experience improvement, or convenience SPEAKER NARRATIVE: One common mistake is to look only at the commonly accepted core areas of the business. What if a by-product of the production process can be turned into a revenue stream? Or a common service can be spun off or monetized?
  • 32. EBEV EUROPE • JULY 2016 32 Step 5: create a culture of risk-taking and experimen- tation ▶ Employee encouragement ▶ Innovation jams ▶ TIP: Always tie opportunity to bosses’ KPIs ▶ Google: 10% of employees time is used to create new products. ▶ OUTPUT: Project Fi ▶ 3M: 35% of company revenues come from products from the last four years! SPEAKER NARRATIVE: Employees need to know that experimentation and risk-taking are seen as Good Things by the executive team. Employees have a natural aversion to being a change agent – especially in this economy. Another tip: always tie the culture change to executive KPIs. For example, I lead cross-functional workshops in which we identify the leadership team’s top three things that will get them their bonus this year. Not surprisingly, a lot of projects get the green light when the executive team is making progress toward their own KPIs.
  • 33. EBEV EUROPE • JULY 2016 33 Step 6: create a culture of AGILITY ▶ ONE that can change agilely with conditions ▶ Give cross-functional bodies autonomy, responsibilities, and BASIC governance ▶ Consider Quarterly personal goal setting with six sprints per quarter ▶ Align frequency with other teams SPEAKER NARRATIVE: You can’t just be more risky, you have to be agile. This works best when individual departments, who have their own KPIs, are allowed to have some autonomy, within basic governance models. Last year my team launched a social media ROI software platform. Each employee was given quarterly personal goals, with performance sprints over two-week periods. We also aligned our sprints with development and project management, so that we all examined our performance openly. No surprises. No fire drills.
  • 34. EBEV EUROPE • JULY 2016 34 STEP 7: IMPROVE OUTPUT BY RETHINKING PROCESSES AND TOOLS ▶ Ensure the team helps examine and update processES ▶ Get their buy-in on their duties and accountability ▶ Look for tools to manage and reinforce process SPEAKER NARRATIVE: Taking a fresh look at processes and tools can provide huge efficiencies. For our social ROI platform, we let the software, sales and project management teams create their own processes and choose its own tools (which ended up being Jira, product wikis and Pipedrive). By doing so, we were able to go to market in less than five months, using people spread across 13 timezones with two-week-long sprints. And the product inspired several million euros worth of revenue in the first year of sales.
  • 35. EBEV EUROPE • JULY 2016 35 STEP 8: empower team to choose their toolsets ▶ Choice is critical for adoption ▶ Not necessarily approved by I.T. ▶ You may have to ask forgiveness ▶ Ex. Slack, trello, Evernote ▶ Adoption requires constant reinforcement ▶ Tie to staff kpis & PERFORMANCE MEASUREMENT SPEAKER NARRATIVE: Teams and toolsets deserve their own step. It’s critical that the team chooses the tool sets that they prefer to work with. They may not be officially sanctioned by IT. You may have to ask forgiveness or build a business case. But the team must have a set of tools that don’t get in the way of innovation. Adoption requires constant reinforcement. You’ll need to shepherd the project, the team and anything they need to succeed. And finally, to insure success, tie your staff’s KPIs to their learning and progress with the new tools.
  • 36. EBEV EUROPE • JULY 2016 36 STEP 9: Question (and test) everything ▶ Challenge assumptions that supported your prior success ▶ stress-test the ways in which you deliver value to customers SPEAKER NARRATIVE: One thing that’s important to remember: commonly-held assumptions often prevent innovation. Be sure to challenge EVERYTHING you know about your current business model and products. And as you think about delivering value to customers, stress-test each concept. An innovation that can’t survive simple tests is something you shouldn’t try to sell to management, or bring to market.
  • 37. EBEV EUROPE • JULY 2016 37 STEP 10: provide constant feedback & communi- cation ▶ Create communication plans for employees & management ▶ Innovation updates ▶ Success stories ▶ “Real” value (revenue, cost-cutting, competitive advantage, talent transformation) SPEAKER NARRATIVE: Finally, constant feedback and communication, to your management and to employees, is absolutely essential. Provide regular “innovation updates” and celebrate team wins. Put them in the context of what the CFO would be interested in: top-line revenue, cost-cutting, market share, and talent.
  • 38. EBEV EUROPE • JULY 2016 38 Innovation Example: Jack in the Box ▶ 9th largest fast food chain in U.S. ▶ Merged marketing, R&D, test kitchens & consumer research into a 6500M2 innovation centre ▶ Reduced energy, improved workflow ▶ Reduced costs 4-6% below CATEGORY LEADERS SPEAKER NARRATIVE: Every penny of the construction was analyzed for contribution to company profit. Menus, menu boards, franchisee acceptance, all tested here. Ideas developed dropped overall food & beverage costs 4% lower than Wendy’s and 6% lower than McDonalds. First to roll out instore kiosks to reduce wait times and get orders exact. Created a butter toaster to spread butter on buns as they toast.
  • 39. EBEV EUROPE • JULY 2016 39 Innovative Example: Reverend Nat’s Hopped cider SPEAKER NARRATIVE: Introduced in 2013, this hopped cider is unique: an American cider with Belgian yeasts, flavored with apricot juice, and dry-hopped.
  • 40. EBEV EUROPE • JULY 2016 40 Brand extensions: SUJA - From juice to flavored water SPEAKER NARRATIVE: In December, San Diego-based Suja moved into the flavored water market with a new line of probiotic-enhanced waters made from organic fruits, veggies, and spices, opening up new revenue streams via new audiences and markets.
  • 41. EBEV EUROPE • JULY 2016 41 Innovative branding: heineken “subway symphony” and “bay lights” Installations SPEAKER NARRATIVE: Heineken made a huge splash one year ago with its Subway Symphony, in which NYC subway turnstiles played musical notes as people swiped their transit passes, creating dynamic musical tunes, each one unique for each subway station. In December, it sponsored an LED lighting system on the San Francisco bay bridge. These go so far beyond traditional signage or outbound marketing efforts and create a real “wow” moment with consumers.
  • 42. EBEV EUROPE • JULY 2016 42 DISTRIBUTION: Drizly – “amazon prime now” meets local liquor store SPEAKER NARRATIVE: Originally launched in 2012, Drizly is finally getting wider acceptance of its one-hour from click to doorbell alcohol delivery service. In the last month, the app rolled out service to a total of 18 US markets and 1 in Canada. Consumers get extreme convenience, retailers get potential net uptick in online sales.
  • 43. EBEV EUROPE • JULY 2016 43 Supplier- driven: Ganeden probiotics providing 22500€ to startups to create new probiotic products SPEAKER NARRATIVE: And innovation in the beverage category isn’t just coming from the industry. Sometimes it’s supplier-driven. Probiotics producer Ganeden launched an innovation sponsorship program aimed at helping startups create new probiotic products. The winner of this contest of product ideas receives 22500€ in funding along with guidance and expertise to launch their new product.
  • 44. EBEV EUROPE • JULY 2016 44 SOCIAL GOOD: waiakea hawaiian volcanic water Promotion donates 1300 liters of water for every 1 liter sold (sustainable production & rPeT Bottles) SPEAKER NARRATIVE: Waiakea Hawaiian Volcanic Water normally donates 650 liters of water for every liter sold online. This past December, they doubled their contribution, building wells and bringing clean water to the people of Malawi. My wife and I have helped build wells in South Sudan, so this effort really struck me on a personal level as innovative and meaningful.
  • 45. EBEV EUROPE • JULY 2016 45 PSST! innovation doesn’t have to be huge to pay off ▶ 72% of visitors expect you to have a mobile site ▶ If you have one, 67% are more likely to convert ▶ 61% will leave immediately if it’s not ▶ A half-second Delay on an e-comm site reduces conversions by 20% ▶ Amazon estimates a one second delay could cost them $1.6 BILLION ANNUALLY! SOURCES: FAST COMPANY, 2012, GOOGLE, 2015 SPEAKER NARRATIVE: I’ve shared all these big innovations, but you can be a super-hero of innovation with small, easy steps as well. Larger firms will have talented, expert web teams who are already on top of this. But it bears mentioning, because this is real money. Building the business case and innovating with your web team just on this issue could create a significant impact on the company’s bottom line. YOU will be a superhero.
  • 46. EBEV EUROPE • JULY 2016 46 We’re in the best period for innovation… in years! ▶ Many of you already have large customer bases ▶ If you’re working with millennials, they’re already digitally savvy ▶ R&D and Innovation budgets are easier to propose than ever ▶ 6% increase YOY ▶ Have increased 50% from 2007-2012 SOURCE: CISCO, “DIGITAL VORTEX” REPORT, 2015
  • 47. EBEV EUROPE • JULY 2016 47 summary ▶ Don’t just think of marketing innovation ▶ Consider the five horsemen and start with a strong case for management ▶ Require THEIR support! ▶ Build holistic organizational metrics into your plan ▶ Give your effort constant care and feeding! SPEAKER NARRATIVE: In summary, don’t just think of innovation as being in the province of Marketing. It’s so much more powerful when it’s cross-functional. Consider my five horsemen analogy and start with a strong business case for the management team. Make it THEIR idea and tie it to THEIR KPIs, and then ask for their support. Build holistic metrics that measure agility, speed, readiness, management support, infrastructure and process. Finally, don’t forget that you will need to shepherd this change yourself, nurturing it, supporting it and providing constant communication to both staff and your C-team.
  • 48. ABOUT US Precog Digital We are a digital transformation consultancy focused on advancing our clients’ digital maturity. We provide clarity in digital strategy and options, fill digital skills’ gaps, and guide the organisational change required to survive disruption. 50 years’ combined experience transforming global brands Offices in Toronto and Seattle
  • 49. WHAT WE DO Transform your Digital Now. Accelerate your Digital Future. 49 DIGITAL TROUBLESHOOTING COMPETITIVE ADVANTAGE CUSTOMER EXPERIENCE TALENT & TRANSFORMATION FUTUREPROOFING SSCCRRAATTCCHH IITTCCHHEESS Vendor management; process improvement; digital strategies; measurement & KPIs TTAAKKEE BBAACCKK LLOOSSTT GGRROOUUNNDD Competitive audits; Internal & external strategies; storytelling; automation SSTTRREENNGGTTHHEENN TTHHEE BBOONNDD Engagement strategies; CX strategies; agile content creation; customer data architecture GGRROOWW CCAAPPAABBIILLIITTIIEESS Agency transformation; retained talent search; interim Chief Digital Officer AANNTTIICCIIPPAATTEE RRIISSKKSS Crowd & On- Demand economy; emerging tech; enterprise futureproofing
  • 50. Some of the brands we’ve transformed
  • 51. Experience EBEV EUROPE • JULY 2016 51 SEAN MOFFITT Partner (Toronto) +1 416 458 2818 sean.moffitt@precog.digital Former CMO, Labatts, Heineken Former P&G brand manager Author of “Wikibrands” #1 digital thought leader in Canada “OMG, are you Matt Damon?” EERRIICC WWEEAAVVEERR Partner (Seattle) +1 206 234 9328 eric.weaver@precog.digital Former Chief Social Officer for IPG Mediabrands Former AKQA, Possible, Y&R, DDB, Edelman Digital 80 major brands over 26 years Irish/Japanese uber-nerd
  • 52. EBEV EUROPE • JULY 2016 52 ERIC WEAVER MANAGING DIRECTOR PRECOG DIGITAL SEATTLE & TORONTO (COMING SOON TO STOCKHOLM!) slideshare.net/weave Eric@precog.digital +44 20 3289 3283 VIELEN DANK!