This document discusses digital transformation and its impact. It notes that digital transformation is the answer to challenges companies face, but many are unsure of how to execute it. It then outlines five layers that are changing business models: cloud infrastructure that is cheaper and more flexible, ubiquitous connectivity, the growth of data and analytics, the rise of digital interactions, and the internet of things. The document provides examples of how these changes impact marketing. It identifies three main reasons for digital transformation: better processes, new business models, and improved customer experience. Finally, it offers advice on executing a step-by-step transformation plan by starting with the business model, processes, and customer experience while gaining executive support and addressing cultural challenges.
7. @jan_heyens@jan_heyens
Source : mizzitechinfo
5 layers that change the game
• You can “rent” vs buy your IT infrastructure
• Security, upgrades, storage … are included
• All is in the cloud so accessible anytime, anywhere
Even a small company can do miracles
all the knowledge of the
world in your pocket
Talk with the world and
become your own media
channel
8. @jan_heyens@jan_heyens
5 layers that change the game
All has become digital so can be
• traced, stored
• computed to generate insights
• automated
All humans and billions of objects
always connected
9. @jan_heyens@jan_heyens
Data = new raw materials of
tomorrow’s economy
Data input
will go ballistic
• 90% of interactions will be digital.
• App use ; Social media
• IOT *(Cars, wearables, health
monitoring,..
Cheaper data treatment
and storage in the cloud
• Price of Parse, MS Azure, Amazon
webservices
Connectivity &
battery life improvements
• IOT (1 €/year to connect) and
battery life 10 years
• 4G, Wifi, bluetooth
IOT = Internet of things = objects connected to the web
10. @jan_heyens@jan_heyens
Example : What does it mean for
marketing ?
Scaled to millions of people
quickly and cheaply as costs for
storage, bandwidth, and
computing are relatively tiny.
Delivered globally in a fraction of a
second.
Easily altered — you can
manipulate bits in the digital
world far more fluidly than
atoms in the physical world.
Easily measured — you can
accurately track how people interact
with them.Source : Scott Brinker
11. @jan_heyens@jan_heyens
“We are entering a world where digital
innovation is merging with traditional marketing
fundamentals to create new approaches, new
brand leaders, and new models for success.”
Source : Forrester research David Cooperstein
14. @jan_heyens@jan_heyens
Myths on digital transformation
Myth : “We invest in
technology, so we
are ok.”
Fact : Technology is
not the problem. But
if culture, objectives
and leadership not
in place, technology
ROI will be bad.
Myth : “Culture is the
least important
factor”
Fact : Transformation
= change = resistance.
So in fact culture shift
is the hardest part
Myth : “We have
appointed a Chief
Digital Officer, he will
solve the issue.”
Fact : While a CDO
might be useful, often
it is a way to park the
challenge in a silo and
1 year later the CDO
quits or gets fired.
18. @jan_heyens@jan_heyens
The WHY is : What utility do we
create for the customer or put
differently :
NOW : Business model
as is
Is your business model at risk ?
If your company would disappear what would
customers say about you ?
“I will miss them because ………. ”
PS : If you won’t be missed you got a problem
19. @jan_heyens@jan_heyens
What will happen in
the future ?
Is your business model at risk ?
Questions Some random examples
Buying behavior Online,..
Communities Co-buying
Sharing vs buying Car sharing
Platforms Booking. com,..
Technology breakthrough Batteries recharging in 10 min
Internet of things Collect data and create a better experience
Competition Concentration and more buying power
Cost drivers Replace cost drivers by automatisation
…..
25. @jan_heyens@jan_heyens
Step 2 : Better
processes
Step 2 : Customer
experience
1. What are the biggest problems (acquisition, retention, costs,…)
2. What journeys show critical points ? (internal & external)
3. Which 20% generate 80% of the cost/benefit ?
4. What are the organization's capabilities at this stage ?
5. KPI’s and objectives to reach ?
Step 3 :
Prioritisation
So therefore prioritize
Step 1 : Business Model
Example of a multi-brand garage
Step 3.1 : Biggest
problem = acquisition
27. @jan_heyens@jan_heyens
Opportunities Potential Solution Cost/Effort Priority
We don’t attract
enough visitors on
the website
+400% visitors • Content
marketing (LT)
• Adwords
campaign (ST)
• High
• Low
5
4
Once they are on the
website they leave
too quickly
+ 30% less
leavers
Rearrange the
website and
structure
Medium 3
The appointment
form is abandoned in
30%
+ 20% more
conversion
Split the fomr in
2 parts
Low 1
50 % browses with a
smartphone and our
site is made for PC
+ 50% less
leavers
Responsive
website
Medium 2
…..
28. @jan_heyens@jan_heyens
Step 2 : Better
processes
Step 2 : Customer
experience
1. What are the biggest problems (acquisition, retention, costs,…)
2. What journeys show critical points ? (internal & external)
3. Which 20% generate 80% of the cost/benefit ?
4. What are the organization's capabilities at this stage ?
5. KPI’s and objectives to reach ?
Step 3 :
Prioritisation
Culture
Enablers
(should grow as you
are progressing) Tools Organization
And look for Enablers
Step 1 : Business Model
Support from CxO
29. @jan_heyens@jan_heyens
Find a Cxo sponsor that shares
your vision and wants to help
There will be failures
on the road so get the
buy in to make them
31. @jan_heyens@jan_heyens
And changing culture is even tougher
• Ignorance : “Why change ?”
• Resistance : “Change means risk and
work and my boss asks 0 risk”
• Giving up :
• “He tried to change something and
failed, why would it work now ?”
• “Digital means testing, trying,… ><
“Mgmt wants results, ROI, business case
so we don’t try new stuff”
• “As long as silo’s stay ,we will never
succeed”
• Town hall meetings to create
awareness
• ° “Coalition of the willing”
• Proof of concepts supported by
CxO
• Communicate a lot
• Celebrate small victories
36. @jan_heyens@jan_heyens
So where do you start ? Step by step
Know what you want
the tool to do
• Google/ Blogs i.e. www.raziorsocial.com
• Ask # suppliers to inform you
• Ask a multi-vendor consultant to
guide you
See demo’s • Ask suppliers / Free demo’s /visits at
other cies
• Make sure tool is compatible with
future tools
Write
RFP*
• Most demo version are free of charge
• Suppliers are willing to give you test
environment for free
• RFP models are plentiful on the web
Use
demo
Hire marketing
technologist
• This person will be in charge of the
tool(s) and will educate internal users
1.
2.
3.
4.
A. B.or
RFP = request for proposal or an offer a supplier makes
37. @jan_heyens@jan_heyens
Tools : tips & tricks
Start with free/cheap tools to learn better what you want
The master of the tool (mkt technologist) has to have tons of
passion
Start with the tool that solves a big problem as you need to
gain credibility
Ask help setting up the tool. Some suppliers have success
coaches to help you launch the tool.
Philosophy should be that 70%-95% can be managed without
IT.