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Digital Transformation - Mixing Digital (June 2014)

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Owen Pringle

on 1 September 2014

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Transcript of Digital Transformation - Mixing Digital (June 2014)

Quote
history and context
Being Digital by Nicholas Negroponte (1995)

“Anything that can be digitised, will be”

“Unwieldy atoms” will undergo the ‘Negroponte Switch’

Suddenly, websites were merely furniture within a much larger digital house

2011 - Responsive

2012 - Big Data

2013 - Internet of Things

2014 - Digital Transformation

2015 - ???
Hype Cycle (with apologies to Gartner)
CapGemini

“...the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new business models).”


Altimeter Group

“...the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle.”


eConsultancy

“...the journey from where a company is, to where it aspires to be digitally.”
That moment of epiphany
The thing about
new things
is that no one can agree on a definition.
New and Old
New Things
However, digital transformation seems to occur...
or...

When organisational
panic
sets-in, based on the realisation that something needs to change about their digital function, even if they're not quite sure what
either...

As a
timely
response to changes in consumer behaviour, some of which may have been previously anticipated
but is isn't this...
or this...


...often driven by panic
Structural
- Digital within the org-chart.


Functional
- Mindset embedded elsewhere?


Procedural
- Internal systems and processes.
Key Dimensions (Internal)
...more often a timely response
Customer Experience
- Servicing the empowered consumer.


Engagement
- Marketing and communications.


Innovation
- For product, service and business.
Key Dimensions (External)
Digital Transformation
The New
New Thing
Digital Transformation
The New
New Thing
Digital Transformation is not an end-goal, it’s a continuous journey.
Brian Solis, Altimeter Group


/in/owenvalentinepringle/
principles
Customer First, Organisation Second
1
Relinquish Control
2
Structural and Functional
3
74% of consumers rely on social networks to guide purchase decisions

Source: Gartner


Consumers who research across online, offline and mobile channels spend 18-36% more than those who don’t

Source: BazaarVoice
Start thinking about the entire customer journey

General Motors formed a Customer Experience (CX) Group and changed how decisions were made and reward structures


Source: Altimeter Group
2006
...required systematic organisational change facilitated by digital channels
Wrong demographic

Brand in trouble

2% annual growth against industry average of 6%
Nearly trebled income between 2006-12

Reestablished luxury brand status

CEO poached by Apple to reinvent stores
From here to here in little over half a decade
Not people vs. technology. Tech should be used not to distance orgs from people, but instead to bring them closer

Stop building digital stuff… until you know the following:-

Is this need being driven by the org or the customer?

How will this improve the CX?

Will it help to democratise the CX throughout the organisation?
Customer First, Organisation Second
1
Customer First, Organisation Second
1
2013
90% of companies lack suitable digital skills yet only 46% of organisations are investing in the development of digital skills

Source: Capgemini
Digital as a dimension of everything

"It's my job to enable and embed digital, then to operationalise digital disruption throughout the organisation"

John Stack, Head of Digital Transformation


From Gatekeeper to Enabler
Relinquish Control
2
Tate Digital Transformation Project Aims

1. Establish a digital culture

2. Embed digital practice across Tate

3. Embed digital skills across Tate

4. Introduce new transparent production processes and digital governance

5. Operationalise digital disruption

6. Change the practice of the Tate Digital department to support these changes

7. Openness and transparency

53% of senior executives say that the top cultural barrier to digital transformation is competing priorities

Source: MIT Sloan Management / Capgemini
Build Capacity, Not Fiefdoms
Digital/Social business units are often unfamiliar with the entire customer journey

Are subject-matter specialists for digital and/or social enough when such tools and skillsets are being democratised?

Universal digital ‘ownership’ under a single business unit is becoming obsolete
Relinquish Control
2
Digital / Social
Are digital and social business units becoming their own silos?

65% of staff believe senior management’s digital knowledge is average or less

Source: Econsultancy
Mid-Mgt.
Practitioner
C-Level
Starbucks CDO worked with CIO, developed a cross-functional team ‘intrapreneurs’
Innovation
ROI
Bottom Up and Top Down
Functions
Processes
Technology
Strategy
Structure
Structural and Functional
3
27% of senior executives rate digital transformation as a “matter of survival”

Source: MIT Sloan Management / Capgemini
therein.org | @thereinafter
Owen Vantine Pringle
Co-Founder, Therein
therein.org | @thereinafter
Owen Vantine Pringle
Co-Founder, Therein
therein.org | @thereinafter
Full transcript