Digital Strategy Blueprint - Jakub Banbura
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The document outlines what a digital strategy is and how it can be used to help achieve business goals through the use of digital technologies. It discusses how a digital strategy should focus on both revenue growth and cost optimization, and how it can be used to enhance customer value and business processes. The document also provides examples of key performance indicators (KPIs) that can be used to measure the success of a digital strategy and identifies common reasons why digital strategies often fail.
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Ideation – a process of generating new ideas; it may involve customers or external parties.
Immersive experience – a viewing experience delivered by a highly visual web environment, which often uses communication
concepts found in video games, films, TV. This environment completely absorbs viewer’s attention, which results in her immerssion into
the content.
Infographic – a graphic visual representations of information, data or knowledge intended to present complex information quickly
and clearly.
KPI – Key Performance Indicator: a key metrics showing progress of the organization on the way to the goals.
Native Advertising – a form of advertising specific in the form and function to the media where it is presented (e.g. promoted post on
Facebook).
P-Commerce – 1. Participatory Commerce: a sales model that that allows shopppers to participate in the design, selection or funding
of the products they purchase. 2. Place Commerce: a specilised form of mobile commerce that uses mobile internet access and gps
information to assist and enhance the shopping experience.
ROI – Return On Investment (Marketing): [Incremental Revenue Attributable to Marketing ($) * Contribution Margin (%) - Marketing
Spending ($)] /Marketing Spending ($).
Second Screen – use of a computing device (commonly a mobile device, such as a tablet or smartphone) to provide an enhanced
viewing experience for content on another device, such as a television.
Showrooming - the practice of examining merchandise in a traditional brick and mortar retail store or other offline setting, and then
buying it online, sometimes at a lower price.
Snackable Content - bite-sized chunks of information that can be quickly "consumed" by its audience.
Social Commerce - the use of social network(s) in the context of e-commerce transactions.
Digital terms glossary 2](https://image.slidesharecdn.com/digitalstrategyblueprint-jakubbanburav3-150123082642-conversion-gate01/85/Digital-Strategy-Blueprint-Jakub-Banbura-13-320.jpg)
Digital Strategy Blueprint - Jakub Banbura
- 1. Digital Strategy Blueprint Employing digital technologies to reach your goals Jakub Banbura, January 2015
- 2. Issues covered Digital Strategy Blueprint – Employing digital technologies to reach your goals What is a digital strategy? 3 Sample KPI’s for digital strategy 10 Why it goes wrong too often? 11 Digital terms glossary 12 Perfection is not when there is no more to add, but no more to take away. - Antoine de Saint-Exupery, pioneer of international postal flight and author of Le Petit Prince (The Little Prince)
- 3. January 2015 3 A digital strategy is a workable plan of reaching your quantified business goals in a specific time, using digital technologies to leverage your business strenghts. The structure and logic of a digital strategy process is similar to the one of a general strategy. The idea behind your digital strategy may open opportunities for a completely new buisiness (like Alibaba or Youtube) or enhance your existing business model with new ways to communicate with your audience, or manage different business areas (services, manufacturing, sales, logistics, finance, etc.) What is a digital strategy? Past Now Future Results Projected performance Quantified vision Digital Strategy The digital strategy, when implemented, is the most effective tool to harness todays technologies in the service of your ambitions and future results.
- 4. January 2015 $$$ 4 A healthy digital strategy should cover two main areas Profitable revenue growth Optimization of costs and resources € € Digital Strategy Customer Value Added Business Process Support The highest result requires a focus on both revenue and cost side, however often not at the same time.
- 5. January 2015 5 On the revenue side, you want to know how digital technologies add value to each stage of the customer lifecycle Customer recognition Brand perception by customers Customer acquisition Customer experience Customer retention Customer referral Having done your homework right, you may start an informed creative process, saving plenty of time and money spent on blur or unjustified ideas. Conventional way Digital way
- 6. January 2015 6 Once you combine the knowledge about your customer’s business and/or desires with digital technologies… … you would be able to enhance your value proposition for your target audiences. Winning product / service Winning customer experience Winning brand Customer Value Proposition Conventional way Digital way
- 7. January 2015 7 Finally, it is time to design a digital architecture that fits your business model… … making your processes more efficient and less costly, and enhancing ways to collect and share information. Business Value Chain SALES AND CUSTOMER SERVICE SERVICE AND MANUFACT. OUTBOUND LOGISTICS INBOUND LOGISTICS MARKETING R&D INFRASTRUCTURE MANAGEMENT PEOPLE MANAGEMENT TECHNOLOGY MANAGEMENT FINANCIAL MANAGEMENT $$$ € €
- 8. January 2015 8 Digital strategy may offer new business opportunities but also opens new ways to do our „old” business Understand the market Attract prospects Convert to customers Retain customers SEM / SEO Content marketing Marketing automation Mobile apps Social media 360 campaigns Big data examples of selected digital marketing tools
- 9. January 2015 9 Digital strategy should be a reflection of the company strategy in the digital world technology creativity flexibility Bringing technologies in your strategic focus opens new possibilities to build a competitive advantage, and achieve greater level of strategic flexibility.
- 10. January 2015 10 FINANCIAL Digital income (EUR) Digital income / Total income (%) Digital margin (%) Digital ROI (%) Income growth / Cost growth (%) DSO (days sales outstanding) (n) DPO (days payable outstanding ) (n) Inventory turnover (n) Sample KPI’s for digital strategy CUSTOMER Fans – followers, viewers, subscribers, users, customers (n) Active customers (n) Customer satisfaction index (%) NPS (net promoter score) (%) Churn rate (attrition rate) (%) Target group penetration (%) Brand recognition (%) Media mentions (n) Brand perception (%) Income through partners / Total income (%) LEARNING AND GROWTH Competence gap (%) Training days per employee (n) Technology gap (%) Employee satisfaction index (%) Average 360-degree assesment result (%) Staff turnover (%) Communication index (%) Company culture / integrity index (%) Score in employers ranking (n) Days of delay on key projects (n) PROCESS Reach - for post, video, email, etc. (n) Enquiry / Reach (%) Monitored contacts (n) Qualified sales leads (n) Conversions (n, EUR) Conversion cost (EUR) CTR (click through rate) (%), CPC (cost per click) (EUR) Bounce rate Revenue per customer (EUR) Margin per employee (EUR) Time to market (weeks) Fulfillment / service quality index (%)
- 11. January 2015 11 In case of organizations that enhance their traditional way of doing business with digital opportunities, the most commot areas of failure are to some some extent the conceptual phase, but foremost it is the implenetation phase. In this respect the digital strategy is similar to general company strategy. Why it goes wrong too often? failure to properly define a fit of a digital strategy to a company strategy failure to precisely define a complete set of measurable, quantified goals failure to link goals that are interdependant failure to adequately measure goals against the targets failure to link actions to goals failure to adequately prioritize actions failure to adapt the digital strategy to constant and rapid changes in the digital environment (strategy as a process)
- 12. January 2015 12 360 Campaign – a campaign encompassing all adequate communication channels (Web videos, promotion, transit boards, television, print, in-store, social media, etc.) Agile Marketing – an approach to marketing that values individual approach to target audiences, testing and actual data, responsiveness to change, integrated campaigns consisting of small but precise iterations. Big Data – a set of data collected from all sources inside and outside of the organization, available for analysis and decision making. Click Ability – an attractiveness of a content object (video, headline, link), resulting in visitors clicking it in order to enable adequate action. Contextual Marketing - a marketing that provides targeted advertising based upon user specific information or behaviour. Cost Per Click – a total cost of an advert divided by number of clicks acquired by this advert in a specific time Curator – a person or a tool that facilitates delivery of an interesting, usable content for the company’s comunication; curator is often used in relation to content marketing. Custom Activation – an opposite of mass market advertising; an idea of marketing aimed at delivery of unique, one time experience. Engagement – a concept in marketing focusing inviting, encouraging and directly engaging audience in the evolution of the brand. Earned Media – media gained through editorial influence or grassroot action, as opposed to paid or owned media (eg. news articles, shows, editorials, polls, open letters). Gamification – a method of engaging users in solving problems or acquiring knowledge by use of game-design approach. Growth Hacker - a person aiming at reaching quickly measurable marketing results, using creativity, analytycal thinking, and social metrics. Digital terms glossary 1
- 13. January 2015 13 Ideation – a process of generating new ideas; it may involve customers or external parties. Immersive experience – a viewing experience delivered by a highly visual web environment, which often uses communication concepts found in video games, films, TV. This environment completely absorbs viewer’s attention, which results in her immerssion into the content. Infographic – a graphic visual representations of information, data or knowledge intended to present complex information quickly and clearly. KPI – Key Performance Indicator: a key metrics showing progress of the organization on the way to the goals. Native Advertising – a form of advertising specific in the form and function to the media where it is presented (e.g. promoted post on Facebook). P-Commerce – 1. Participatory Commerce: a sales model that that allows shopppers to participate in the design, selection or funding of the products they purchase. 2. Place Commerce: a specilised form of mobile commerce that uses mobile internet access and gps information to assist and enhance the shopping experience. ROI – Return On Investment (Marketing): [Incremental Revenue Attributable to Marketing ($) * Contribution Margin (%) - Marketing Spending ($)] /Marketing Spending ($). Second Screen – use of a computing device (commonly a mobile device, such as a tablet or smartphone) to provide an enhanced viewing experience for content on another device, such as a television. Showrooming - the practice of examining merchandise in a traditional brick and mortar retail store or other offline setting, and then buying it online, sometimes at a lower price. Snackable Content - bite-sized chunks of information that can be quickly "consumed" by its audience. Social Commerce - the use of social network(s) in the context of e-commerce transactions. Digital terms glossary 2
- 14. January 2015 14 SoLoMo - short for social-local-mobile, refers to a more mobile-centric version of the addition of local entries to search engine results. It offers greater local precision to search engine results than what's available via a PC. Synergy - is the creation of a whole that is greater than the simple sum of its parts. Thought Leader - is an individual or firm that is recognized as an authority in a specialized field and whose expertise is sought and often rewarded. Two-Way Conversation - a strategy that a brand uses to exude a human quality, showing (or pretending to show) that they care about what you have to say. Instead of broadcasting, they're engaging. Value Proposition - a mix of unique features of products or services, type of realationship with a customer, and a brand, that will make a customer buy from the company. Viral - pertaining to or involving the spreading of information and opinions from person to person, analogous to the spread of viruses or computer viruses. This glossary of selected digital terms is intended to help in understanding basic terms and concepts used in relation to digital business environment. Sources: techopedia.com, mashable.com, wikipedia.org, own research. Digital terms glossary 3
- 15. January 2015 15 Jakub Banbura jakub.banbura@gmail.com linkedin.com/in/jakubbanbura m: +48 606 394 762