Digital transformation Online guide to expert analyses and digital strategy development
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The document outlines the significance and processes of digital transformation in businesses, emphasizing its role in improving efficiency and customer experience. It discusses various concepts such as digitization, digitalization, and the integration of technology in business models while providing case studies illustrating successful transformations. Additionally, it highlights the need for companies to adapt to market changes, embrace innovative practices, and utilize data-driven strategies to enhance customer relations and service delivery.
Digital transformation Online guide to expert analyses and digital strategy development
- 1. DIGITAL TRANSFORMATION Miodrag Kostić, CMC consultant
- 2. Since 1986 : 17 years of living and working in the USA Founded “T-gallery” retail stores in NY & Honolulu, USA - 1992 Miodrag Kostic, CMC
- 3. Owned and operated “Web Consulting Honolulu”, USA - 1998 Clients:
- 4. 2003-Present: Working for the best companies in the South East European region
- 5. Since 2019 freelance trainer at “Qatar Skills Academy” in Doha
- 6. Innovation Management ConsultantCMC - Certified Management Consultant Digital Transformation Consultant
- 7. Why digital transformation? What makes companies undertake digital transformation?
- 8. Why did Blockbuster go out of business? What is “digital disruption”?
- 9. What was the mission of Blockbuster? “To provide customers with the most convenient means of accessing media entertainment”
- 10. In 50 years, every street in London will be buried under nine feet of manure – London Times Newspaper 1894 What is preventing us to see the trends?
- 11. Path dependant outcome We are programmed to build loyalty to ideas in which we have invested time
- 12. Corona virus crisis and opportunities for digital transformation.
- 13. Challenge as opportunity for improvement CRISIS CHALLENGE OPPORTUNITY
- 14. $ 140.25 Billion$ 141.28 Billion 76000 employees2600 employees Founded 2008 Eric Yuan John D. Rockefeller Founded 1864
- 15. Opportunity to change his business model.
- 17. What company is this?
- 19. Digital world exists for over 70 years Worldwide Digital Transformation From 5 computers in 1943 to billions!
- 20. www.dogshirts.comwww.t-gallery.com 1994 1995 E-commerce sales in 1995 My own digital transformation
- 21. o Digitization o Digitalization o Digital Transformation — What are the differences?
- 22. o DIGITIZATION – The conversion of text, pictures, or sound into a digital form (analog to binary) o DIGITALIZATION – Use digital technologies to change a business model and provide new revenue and customer value o DIGITAL TRANSFORMATION – Use of digital technology and digital business models to transform and improve services or businesses
- 23. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It's also a cultural change requiring organizations to challenge the status quo, experiment, and evolve.
- 24. What is the biggest challenge with DIGITAL TRANSFORMATION
- 25. (1) Automation applied to an efficient operation will magnify the efficiency (2) Automation applied to an inefficient operation will magnify the inefficiency
- 26. Organizational culture How you use digital tools and digital business models?
- 27. How digital transformation drives business value? Connectivity InnovationAutomation Decisions
- 28. Rethink Your Business for the Digital Age! David L. Rodgers
- 29. What is B2B DIGITAL TRANSFORMATION Using digital solutions to streamline processes and improve the customer experience
- 30. To be successful, B2B Digital Transformation must strategically be based on customer needs. Applying digital solutions merely to use new technology isn’t effective and can end up being a waste of money and resources. Earlier B2B Digital Transformations were focused on improving efficiency, recent transformations have shifted to improving the buyer experience
- 31. How clients experience your B2B sales process?
- 32. What sales people say when they have to write reports? I am wasting my time writing reports in CRM, I should spend that time with customers
- 33. Case Study – Key account manager on CEBIT Hanover fair All new contacts written in his agenda – forgotten in one of the restaurants at the fair
- 34. Case Study – Tourism Industry company from Serbia Before: • Clients info on individual Excel sheets • Different offers sent to the same B2B client • Preparing weekly reports • Reports took 3-4 hours to prepare • Management did not know what's going on • Huge sales employee turnaround • Lost client contacts After: • Centralized contact list on the cloud • Complete interaction with clients recorded • Automated engagement and task creation • Reports to management in real time • Sales completely staff focused on clients • Detailed competition analyses • All contracts visible at one place • Increase in B2b sales: 21% • Missed/misinterpreted contacts: “0” • Increase in profitability 11 % • Return on investment period 19 months Results:
- 35. Salesforce Drives Customer Success for Sales Leaders Source: Average percentage improvements reported by Salesforce customers. Salesforce Customer Success Survey conducted from 2017-2019. Survey respondents were 3,384 Salesforce customers randomly selected. Responses per question vary. + 22% Increase in Win Rate + 39% Increase in Forecast Accuracy Increase in Sales Productivity + 35%Increase in Deal Size +15% Increase in Lead Conversion + 30% How much was increase in sales after B2B digital transformation?
- 36. You’ve got to start with the customer experience and work backwards to the technology
- 37. Your road to B2B DIGITAL TRANSFORMATION How to focus on customer needs?
- 38. TREND CARDS
- 39. Trend Cards
- 40. The adding of digital capabilities to purely physical products creates enhanced or completely new products that add value for the customer. These hybrid products make up the Internet of Things. They are data-centered, intelligent, networked, capable of communicating, flexibly upgradeable and can be customized on a case-by-case basis. They have the potential to fundamentally change entire industries, as they enable new business models and/or replace existing products. PRODUCTS AND SERVICES Hybrid Products PT1 Products That Think and Communicate How can you add value to your customer?
- 41. http://teddytheguardian.com/ IoT or “Internet of Things” Domestic company
- 42. Customer co-creation is a new form of cooperation between companies and customers. A highly motivated community of users develops, manufactures and sells products together with a company. The creativity of the group leads to amazing product ideas, which ultimately translates into new or improved product or service innovation. PRODUCTS AND SERVICES The customer contributes Customer Co-Creation PT8 How can you involve customers to co-create?
- 43. „Co-Create IKEA“, digital platform How can you involve customers to co-create?
- 44. Customer journey covers all points of contact of a customer in connection with the purchase of a product or a service - from the first contact through the phases of the purchase process to follow-up support. If these processes are accompanied digitally, valuable customer data is created. A structured analysis of this data provides insights into consumer behaviourur and thus helps to optimize the use of marketing tools. CUSTOMER RELATIONS AND MARKETING Customer Journey On the trail of the customer KT1 How can you improve customer experience?
- 47. Customer journey map How can you improve your customers experience?
- 48. CRM systems help to record all interaction points of a customer relationship and to systematically evaluate the data obtained. They provide information about the customer history (type and scope of the business relationship, calls, visits, problems, etc.) and thus contribute to optimal customer care. The recording of inquiries from potential customers (interested parties, leads) gives valuable impulses for further marketing work. CUSTOMER RELATIONS AND MARKETING CRM Systems KT2 Digital Optimization of Customer Relations How can you learn more about customers?
- 49. Ko je vaš tipičan kupac? Customer persona How can you help identify your customer personas?
- 50. Digital marketing measures have the task of directing visitors to a specific page (presence) on the Internet. These include tools such as content marketing, storytelling, search engine marketing, affiliate marketing, e-mail marketing, contextual advertising, website monetization, mobile marketing, gamification, social media, etc. The advantage over classic marketing measures lies in the measurability of the advertising effect. CUSTOMER RELATIONS AND MARKETING Digital Presence Marketing in the virtual world KT4 Can you tell the story about your company?
- 51. Who can tell better story about your company, digital agency or you?
- 52. The days of static advertising aimed at a passive audience are over! Multi-channel activities in the social media launch campaigns with the aim to achieve a participation of the recipient (involvement of the customer). This increases the exposure to a brand and the acceptance of advertising measures. The customer becomes a valuable testimonial and thus an active co-marketer. CUSTOMER RELATIONS AND MARKETING Testimonials The Customer as Co-Marketer KT8 How can you ask customers for testimonials?
- 53. Which source is credible, which is not? Who sells intentionally false information as facts? The information overload changes – from the access to information and data to the rating of the credibility of information sources. Companies must prove their statements more strongly than ever. Fairness, sustainability and social benefits become important criteria for success when defining the company's reputation. CUSTOMER RELATIONS AND MARKETING Credibility and Reputation Fact or Fake How can you provide credible information? KT 10
- 54. Documents of any type and format are created, recorded, stored and managed with IT support. This means that a large amount of different information can be efficiently managed and provided for versatile business processes. PROCEDURES AND PROCESSES Document Management AT4 Paperless Office How can you improve information flow?
- 55. Effectiveness of document management software depends on how successfully you manage your documents
- 56. The "last mile" to the customer is the biggest challenge. Also, a reorganization of logistics models is conceivable, for example, the collection of goods by customers in distribution centers (instead of individual delivery) or the depositing of goods in parked customer vehicles. PROCEDURES AND PROCESSES The Last Mile AT10 Digitalization Against the Bottleneck How can you improve product distribution?
- 57. How can you improve your product distribution?
- 58. Data protection and data security are complex topics - for example: - Protection against misuse of data (New: GDPR); - Right to informational self-determination; - Protection against data loss and data theft; - Defense against malware; - Protection against hacking; - Hedging against an IT failure Data Protection & Co My Data Belong to Me AT11 How do you protect customers data? PROCEDURES AND PROCESSES
- 59. The fine is 4% of company revenue
- 60. GDPR
- 61. Sharing instead of owning (sharing economy), using instead of buying: a completely changed market behavior places new demands before companies. For most industries, business models are changing! Pushing market boundaries and developing completely new business models independently is the central challenge for many companies and an important opportunity for the coming years. BUSINESS MODELS AND VALUE CHAINS Business Model Innovation GT2 Innovative Business Models How can you change the way you work?
- 63. The goal is always to develop promising, innovative products, services or business models. The interaction between internal and external ideas, technologies, processes and distribution channels actively involves the corporate environment in the innovation process. The involvement of employees, customers, suppliers, lead users, universities, competitors or other industries increases one’s own innovation potential. BUSINESS MODELS AND VALUE CHAINS Open Innovation Innovation for All GT3 How can you get involved in innovation?
- 64. Innovations are mostly associated with the development of new technologies or new (physical) products. Today, the term innovation also includes the service sector. Thus, innovative services are provided not only by traditional service providers, but also increasingly by the manufacturing industry. A service innovation occurs when a completely new service is developed or the process of service provision is fundamentally changed. BUSINESS MODELS AND VALUE CHAINS Innovation of Services GT4 From Product to Service Orientation How can you innovate customer service?
- 65. - Value Proposition CanvasInnovate your customer service
- 66. Computer programs that allow multiple people to work on the same data simultaneously or at different times make it easier to work in small businesses as well as across company value chains. For cross-company solutions, several companies work with the same software and/or files. Advantages include the development of synergies, cost savings, higher efficiency and improved performance. BUSINESS MODELS AND VALUE CHAINS Collaborative Tools GT8 Tools for Better Cooperation How can you improve collaboration?
- 67. Teamwork remains one sustainable competitive advantage that has been largely untapped! Why collaboration?
- 68. For companies and organizations, the permanent continuing education of employees in the field of digitalization will be the central challenge. More and more knowledge is now available at reasonable prices (sometimes free of charge) and can be accessed by a wide group of people. The key resource is not the knowledge itself, but the ability to link it and create something new. Collaboration between different disciplines will rapidly increase in importance. EMPLOYEES AND CORPORATE CULTURE Education and Training Digital Competences MT8 How can you increase your knowledge?
- 69. Digital strategy How to DIGITAL TRANSFORMATION
- 70. Creating digital strategy for a client
- 71. Creating digital road map for a client
- 72. Creating digital road map for a client
- 73. Digitalni trendovi SWOT & Impact analiza Quick Fixes ImplementationDigital strategyEA- Expert analyses Priority I Priority II Priority III Detailed strategy priorities KMU Digital – Digital Transformation process
- 74. Digital road map for CRM and customer experience Customer experience measured Customer loyalty increased Customer service improved Positive R.o.I in year 2 products marketing operations finance Create a product range of at least 50 different menues, organic, healthy, with nutrition data, enough fruit and vegetables Do not forget food intolerances and other special needs (e.g. no pork, vegetarian) Patrick 5 weeks of time Collaborate with dietologist and chef What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks What? Who? Budget? ToDos remarks
- 75. Miodrag Kostić, CMC, CDC www.miodragkostic.com Thanks
Editor's Notes
- #35: Talk track: According to Metrics Survey, who conducted a survey of more than 3,300 Salesforce customers, Salesforce helps drive customer success for sales leaders. Average percentage improvements are: 15% in deal size 22% in win rate 30% lead conversion 35% sales productivity, and 39% forecast accuracy
- #36: Talk track: According to Metrics Survey, who conducted a survey of more than 3,300 Salesforce customers, Salesforce helps drive customer success for sales leaders. Average percentage improvements are: 15% in deal size 22% in win rate 30% lead conversion 35% sales productivity, and 39% forecast accuracy