Digital Transformation - Perth 15/11/13

Editor's Notes

• #3: Whether we're defining organisation-wide digital strategies, crafting amazing web and mobile experiences, building impactful brands, or creating persuasive campaigns, we transform organisations through digital.
• #4: We work in 5 key sectors, and this allows our teams to really understand the communications and service delivery needs and challenges that you have.
• #5: We’re wholly independently-owned, by our Chairman and Founder Paul Hoskins, and it’s our 25th anniversary early next year so watch out for our plans to celebrate that in true Precedent style – I’m sure Mark will find a way of being over from the UK for that one!
• #6: We’re growing.There’s over 130 of us now, I think it’s actually closer to 140 now, meaning we have a global network to draw resource and expertise on where needed for different projects.
• #7: Those 130 of us are spread across obviously here in Sydney, and studios in Melbourne, Perth, the UK and recently Hong Kong, where we are building on the IP and project experience we have built up in the Asian market over the last 5 years.Our studios act are independent full-service delivery teams, and act as individual centres of excellence specialising in mobile, strategy, or technical – ensuring we allow our clients to lead, rather than follow.
• #8: Here are just some of the clients we work with, from a digital vision and customer experience project with the City of Melbourne, , a 3 year digital partnership leveraging the Sitecore platform with company directors, to a business-wide digital transformation programme at Monash University
• #9: Good news is…
• #10: In understanding the challenges our core sectors face, we conduct research into these sectors. These benchmark reports are put together by our Head of Strategic Research Adrian Porter, with reports tackling the globalisation of higher education, the role of digital in driving membership acquisition and retention, and our latest report, and the basis for today’s presentation – Daring to be Digital: of which we’ll be sending soft copies through to you this afternoon via email.I’ll know hand you over to Mark Sherwin, Global Commercial Director.
• #11: You can gain competitive advantage through this understanding in any sector
• #12: Digital used to mean a desktop computer and a website for marketing purposes, But now, to truly take advantage of digital is to ingrain it in your organisations DNA, to have business-wide impact.In order to be transformational, an organisation’s digital agenda must be owned in the boardroom as a fundamental part of the corporate vision and strategy.If transformation is successful in delivering an exemplary user experience, or a unique product or service, then marketers can begin to spread the wordto target audiences using their own complementary marketing strategy, integrated with the broader vision.
• #13: The risks?Not adopting a business-centric view of the web is obvious. I put together a graveyard slide of companies in Australia and globally who have been too slow to react to using digital, and have been overtaken by the competition.Obviously these are retails organisations – often the first sector to get hit by changing business models and digital has disrupted – we’re seeing it across the education sectorDoes anyone have any examples from their own sectors that they can think of?
• #14: However, the transformational nature of digital isn’t anything new – Mary McCarthy for one has been talking about it for well over a decade, and this quote here sums it up perfectlyIF YOU THINK BEING 'IN E-BUSINESS' MEANS SUTURING ON ANE-COMMERCE APPENDAGE TO YOUR BODY CORPORATE,THEN THINK AGAIN. WE PROMISE YOU THAT WON'T WORK...YOU'VE GOT TO BE PREPARED TO LET THAT E-BUSINESS COMMITMENT RIPPLE THROUGH AND SHAKE UP THAT BODY CORPORATE. AND LIKE AN 8.0 EARTHQUAKE, YOU MUST BE PREPARED FOR THE REARRANGEMENT THAT WILL INEVITABLY OCCUR.
• #15: So today we’re going to explore what it means to achieve digital transformation.Wikipedia define it as the third stage of embracing digital technologiesDigital competenceDigital literacyDigital transformationIn a nutshell, digital transformation means digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional
• #16: It used to be a perfectly viable strategy to let others innovate and take on the risks associated, and for your organisation to still comfortably in the late majority, and even the laggards could have a viable business.However, in the digital age we would argue that this isn’t a viable strategy anymore, and that adoption looks more like this…
• #17: And anyone who now thinks they can still hang around in the late majority and laggards section will end up on that graveyard slide.
• #18: Does anyone know what the tricorder is? If you do, please save it until later on in the session
• #20: First stumbling block in moving from being digitally strategic, to digitally digitally transformational is customer service.
• #21: We all know the traditional marketing model of Awareness, Interest, Desire, funnelling people through to Action.Well, this is no longer sufficient.We need to consider AIDA’s reflection: Delivery: How is the product or service being delivered to the individual and how can online improve thisInvolvement: Are you actively seeking to involve the customer through post purchase/action engagement such as asking for ratings/reviews, or providing value added servicesAdvocacy: How can you turn satisfied customers into online advocates for your brandMarketing need to own that hwole funnel – fractured customer experience
• #22: Its so easy to get this wrong…Love film and other internet successes have been instrumental in the downfall of less nimble business like Blockbuster, Me moving to MelbourneSeamless experience throughout, easy management of system through an intuitive interface, flexible subscriptions – even the option to have a payment holiday at the press of a button.But the fail comes when they make it hard to leave – with no option for online cancellation of an accountForcing you to phone an aggressive retention teamHard to leave = less inclined to rejoin.If a company allows online joining, it has to allow online cancellation.
• #23: However, I’ve recently realised I’d been party to a really good example of the AIDA reflection with the Melbourne Grand Prix.I bought a ticket back in Febattended the event in March: downloaded the appI received an “attendee feedback” questionnaire directly after
• #24: They’ve nurtured involvement through monthly newsletters since then about either motorsport events in Australia or generic F1 news, links through to engage across their active and well-run social platforms: never thought I’d spend as long as I do on a FB pageAnd they’ve kept me up to date regarding availability of 2014 general admission tickets,and early bird specials a couple of months ago for other races -= never thought I’d be considering buying V8 supercar tickets!
• #25: Buying a mortgage – so difficult.Wish this was around when I bought my first house in the UKThe Yorkshire building society + Synthetix to provide valuable technology enabled customer serviceReplaced search with instant entry into smart FAQs
• #26: Synthetix work with their clients to create FAQ’s which are auto populated when entering a search term
• #27: Wherever an answer isn’t available, it records and feeds this back, allowing continual improvementConnects you to a real person who knows your browsing history so you don’t have to explain all over again!This is resulting in stats like20% reduction in calls to call centres40% reduction in email enquiryThis frees up operational budget – meaning this doesn’t and shouldn’t be paid for by marketing – its real digital transformation.
• #28: IBM super computer WatsonFamouslydefeated 2 jeopardy champions live on TV in 2011 - demonstrating novel capabilities in understanding natural languageNow focusing on customer service – giving it commercial purposeIn finance 96% customers think banks don’t understand customer experienceThough use of natural language processing, hypothesis generation and evaluation and evidence based learning and of course the data an institution holds on itself and its customersWatson will provide the next generation of online customer service agent delivering fast, evidence based responses. A natural conversation with an artificial helper – responding uniquely to each question. Being rolled out by ANZ bank.We can’t all afford a super computer, but what happens on a super computer one day is commonplace the next. And back in 2011 when Watson won jeopardy, there was one physical Watson, whereas now it is being replicated for each use case across the cloud.
• #29: Moving on a step from Customer Service – What can the public do for you?
• #30: GoldCorp had owned the rights to the mine at red lake ontario for over 50 yearsCouldn’t find the goldMade the radical decision to crowd source by making their data publicGave out 400 megabytes of data and a $575 thousand prize fundExpected responses from elsewhere in the industry – got them from unexpected sources such as mathematicians, military offices, even new graduatesContestants identified 110 sites for potential targetsOf which 50% were new to GoldcorpOf those 80% yielded substantial quantities of goldTurning Goldcorp from a $100 million to a $9 billion company.
• #32: whether it’s the latest tech start-up, or a group of superfans wanting to put the tardis in space, tools like kickstarter allow crowd sourced funding for anything and everything.
• #33: Taking crowd sourcing even furtherCompanies like Mechanical Turk and Giff GaffCrowd sourcing of the operational running of their businessRun by membersGain rewards by answering customer service questions, recruiting new customers, implementing marketing etc
• #34: Tightening the loop of customer services and marketing Crowd sourcing has the power to turn customers and advocates into stakeholders.
• #35: Crowd sourcing – doesn’t hurt to start at homeRedesigning intranets from unused tomes to tools for social business – that’s probably a whole seminar for itself…Imagine if you could harness the knowledge, experience and ideas of your employees to help solve the challenges you and your clients face
• #36: So, new money models.people are getting used to online commerce and one of the key outputs of this is the increased level of granularity, and flexibility of payment options – this is what they now expect.
• #37: So we use Act as our CRM in UK. This is based on a product lifecycle model which means that typically the vendor invests heavily in a new version, they sell this hard and then can sit on their laurels. Moving to a product like Salesforce, which we use over here in Australia, uses a subscription model. With a subscription model, the customer needs to be v happy, it’s easy to move, no massive up front financial commitments, forcing organisations to shift from product orientation to customer orientation. This is becoming the users accepted mental model – purchasing services rather than products and expecting constant improvement and support.
• #38: The CIM should have been the organisation delivering digital leadership in UK. Our colleague Mark Sherwin was running talks on what digital should mean for businesses as early as 1998 for CIM. When I graduated, I looked at the CIM but didn’t sign up because…However they had a walled garden approach. Their site told people about all the wonderful resources they had but these were only available to members at a premium membership price. E-consultancy came from no where – started less than a decade ago as a free blog, they started offering reports and as the value of these was recognised starting they started to adapt their business model.For only a small amount more than a single report you could become a member.This subscription model, with a permeable pay wall and the ability for customers to slowly build loyalty has resulted in a powerhouse that has trumped CIM in the digital arena – so much so that you can now do a degree with e-consultancy – run by Manchester Met Uni the brand power of e-consultancy means customers would rather purchase as part of e-consultancy than they would from the traditional educational institution
• #39: Another example here is for the British Dental Association.We recently redesigned membership renewal site for them. Now the BDA have moved from their old model where which dentistry school you went to and how many years of practice determined premium by which you had to pay. From the user experience work that was done to understand the audience types better and identify pain points in the process, understanding the customer through this digital process has meant that the BDA has redesigned its membership model to 3 levels of flexible options starting with an online only membership offer, rising to something more similar to original membership – then a premium which charges more for the high value services, allowing users to change annually.
• #40: A good example of granular and flexible payment models is something I’m sure most of you are familiar with – buying music.A decade ago the choice was album or single. Now users can try before they buy, download whole albums, cherry pick tracks, or indeed subscribe to a service like Spotify or Napster to get single price access to all music. These expectations are starting to form customer expectations and they will demand similar in all aspects of their dealings with organisations.
• #41: Mark talked about Kickstarter earlier, and it’s not just making money that’s granular, it’s sourcing funding as well.We’re working with a similar firm called Sponsorcraft with the University of Southampton – their twist is crowdfunding for the education sector.It can raise funding for everything from a research project, to new facilities, or a student show. Much more engaging and relevant than previous funding approaches asking users to basically stick $30 into a $10 million project fund.
• #45: This is the tricorder. Startrek. Communications. Health diagnosis and healing. Transportation. The iphone does all of this with advanced comms, and apps for anything and everything inc health and lifestyle, and of course hailing a taxi.Most firms now have a smartphne enabled workforce – think of the opportunities this could bring.
• #46: Lovely illustration showing the evolution of hand held technologiesWith all these capabilities now existing in the smartphone
• #47: In our London office we are running out of desks. There is now an hot desking app. Tell it when you are in, and who you would like to sit with. It does the rest.
• #48: Lemon card connects with accounting software to automatically manage expenses
• #49: There is a huge range of opportunity for a mobile enabled workforce. In the UK traffic wardens are taking mobile payments – good for the wardens, bad for the drivers
• #50: Environment agency, data being pulled in to show previous flooding damage areas so hotspots can be identified
• #51: And there are a wide range of applications for this sort of technology. In the UK busy city centre pubs are solving the Friday rush for the bar by bringing the bar to the tables.
• #52: HOINTERMens jeans shop in USABelieved that all men don’t hate shopping, so were curious to explore how they could make it betterNo pushy sales assistants,no confusing piles of clothes and no endless lines at the tills. Only one of each style of jeans is displayed on the shop floor.
• #53: Shoppers use a smartphone app to scan items they wish to try on, and choose a size and colour.Jeans arrive in 30 secondsIf they’re good, the customer swipes a card to pay and leavesMessage > Stock room > Tensioned cables drop jeans into fitting room > payment card swiped through a reader > and out they go
• #54: Understanding the pain points of the existing experience. Creating something unique and memorable – developing brand value and potentially saving on the staffing costs of servicing the store, not to mention the engagementopportunities opened up by exploiting digital
• #55: Everything we’ve covered so far should be on the immediate agenda of any organisation not wanting to be left behind in the digital ageBut now lets thing about some more aspirational issues, something for the roadmap perhaps
• #56: There was an early misconception that the internet of things was a device with an integrated web interface
• #57: So, as I mentioned earlier, digital used to = a desktop computerNow, the smallest wireless receiver in the world is the size of just a match-headThe internet of things is really about the emergence of simple devices like raspberry pi, which means digital = everywhere, everythingAnd it’s the ability to use and manipulate the internet of things is in the hands of the everyman
• #58: Digital is now part of everything, and everything can have the ability to collect, and share dataHighly suggest looking at the model from this research that Beecham have recently come out with, which unpacks use cases in all sectorsInputs and outputs from all industry sectors, from construction to healthcare to securityNot going to go through this as it would take a while, so…
• #59: Lets consider a familiar sector – consumer and home goods.
• #60: No one enjoys being woken by an alarm clock
• #61: But imagine you awake at the ideal moment in your sleep cycleambient lighting, the smell of freshly brewed coffee, and the sound of your favourite musicWith precisely the right amount of time needed to get to the office ready for a big meetingWell, this will happen because: there can be sleep sensors in your bed, monitoring your sleep cycle which iswirelessly connected to your calendar,Which has cross referenced the time you need to get to the office with your GPS against expected traffic patternsAll to determine when to wake you.The sensor has also alerted your automatic coffee machine, ambient lighting system and wireless sound system to co-ordinate the perfect start to the dayWhat’s exciting is that all this technology already exists – its just a case of linking it up
• #62: So I read an article over the weekend and I thought I’ve got to drop this in as an example of the internet of things, and wearable tech possibly going a bit too far
• #63: A researcher and professor of computer science at National Taiwan University, has been inspired to apply computer science to oral hygiene by his daughter, who saw a dentist regularly for cavities. He’s created a tooth sensor which could possible monitor her teeth brushing.The tooth sensor, however, goes directly in the mouth. When theytested the system by embedding the sensor (which works by employing accelerometers) on eight volunteers’ molars, they found that the tool classified subjects’ behavior (coughing, drinking, chewing, or talking) with up to 94% accuracy. So the sensor could be connected with Bluetooth, for example, and people could have a no-cheat system of monitoring their diet through a health app on their phones. Or, maybe the sensor could hold a person looking to quit smoking responsible for a sneaky cigarette.All this isvery well and good, but the development of wearable computing also raises an important question: If third-party trackers and marketers have access to personal health data through mobile apps, what happens when your oral habit data is up for grabs? As that data gets more and more specific (or, optimized, as others might argue), it also gets increasingly creepier to realize your information is potentially beyond a comfortable level of personal control.
• #64: Technology like this already exists:San Francisco parking spot finder1 in 3 drivers in San Fran searching for a parking spotDetectors under every spot – made up of just a battery, radio antenna and magnetometerDetect when a car is above themMake data available about free spots to smartphone usersCity able to adjust cost to match demand
• #65: However, big data is really a mis-noma – its about mass, micro data.How that data is analysed and used is where the big opportunities lie – the data is there, you just need to work out what to do with it
• #66: However, slightly less creepy is how big data could be used for customer insight, and to improve product and service design.Orange ran a competition, releasing anoymous data on 2.5 million call records from the Ivory CoastOne of the teams who took up the challenge, were a group of IBM researchers, who focused on Data in Abidjan – Ivory Coast’s largest cityThey analysed when and where people were using the bus networkSpotted gaps to identify two new routes neededFound that they could reduce the average journey time by 10% for bus commuters - all done within one month
• #68: The digital project must become inheretly linked to your business strategy, seen as a key enabling channel
• #69: You need to show value to leadership in all areas of the business
• #70: You can gain competitive advantage through this understanding in any sector
• #71: And the best ideas are ones which show value for multiple business areas
• #72: MNo
• #73: Your can’t expect it to be lead by a traditional board
• #74: You need to show value to leadership in all areas of the business
• #75: You can gain competitive advantage through this understanding in any sector
• #76: And the best ideas are ones which show value for multiple business areas
• #77: It may seem daunting, but you can start small. UK govt, UX improvement for online tax form
• #78: MNo
• #79: You can gain competitive advantage through this understanding in any sector
• #80: MNo
• #81: You can gain competitive advantage through this understanding in any sector
• #82: You can gain competitive advantage through this understanding in any sector
• #83: You can gain competitive advantage through this understanding in any sector
• #84: You can gain competitive advantage through this understanding in any sector
• #85: MNo
• #86: MNo
• #87: Good news is…