Recreating the context through digital transformation a precise presentation
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This document discusses digital transformation and how going digital changes business models. It covers how businesses are moving from analogue to digital models across various industries like publishing, commerce, banking, and news/film/music. Some key points discussed include how the creation and aggregation of digital platforms and services can help businesses reinvent themselves, how understanding customer data and behavior is important for digital transformation, and how integrating digital technologies can accelerate this process for businesses. Case studies of digital businesses in industries like e-commerce, digital banking, and online news are also provided.
Recreating the context through digital transformation a precise presentation
- 1. Recreating the Context How Going Digital Changes Business Models
- 2. Content S/N SUBJECT SLIDE 1. Digital Transformation â Building a Digital Business 3 - 15 2. Moving From Analogue to Digital â Recreating the Context 16 - 38 3. Integration â Accelerating Digital Transformation 39 - 42
- 3. 1. Digital Transformation Building a Digital Business
- 4. Going Digital? PURPOSE ⢠Taking bold steps to place digital and technology at the very heart of life and business operations. PLUG ⢠The creation of innovative digital services to help aggregate and build digital platforms with augmented distribution infrastructure and store operations. PLAN ⢠Digital technology at the heart of possibilities
- 5. What is Driving Digital Transformation Information as Asset In this age of interactivity, information as moved from being a process commodity to a critical business asset. Speed as Competitive Advantage Beyond the use of information technology to improve productivity and efficiency, speed to market and optimize supply chains are part of the demands. Customers as Value Innovators Customers demand to co- create value and delivery process. The end-point being to quickly drive down costs and complexity.
- 6. Life Without These Things⌠INFORMATION Being able to search for information on Google MAILS Being able to send mails without visiting the post office SHOP Being able to shop without going to the Mall or Market COMMUNICATE Being able to communicate without a face to face encounter SOCIALIZE Being able to express our views, vent and socialize outside a physical space The Information Age
- 7. Now Imagine⌠⢠Imagine being able to ride a driverless car that knows and can navigate the fastest route to your destination? The Autonomous Car ⢠Imagine ordering an item online and have delivery done within minutes from a location as far as 100Km? Drone Delivery ⢠Imagine giving your shoe specification and unique design online and having same produced in seconds using 3D print? 3D Manufacturing The Era of Internet of Things (IoT)
- 8. Nikolay SPASOV Copyright: Nikolay SPASOV, TBI Bank
- 9. Digital Maturity Model Ad-Hoc ⢠Digital Resister Opportunistic ⢠Digital Explorer Repeatable ⢠Digital Player Managed ⢠Digital Transformer Optimised ⢠Digital Disrupter Copyright: IDC, Digital Transformation Maturity Model, 2015
- 10. Key Imperatives for Digital Transformation Cost Efficiency Build cost efficiency by digging into current cost models and making adjustments. Business Efficiency Innovate either through seeking vertical or horizontal possibilities with a view to support the new value proposition. 10
- 11. Driving Digital Transformation âWhat Isâ Analogue systems and Manual Operations Current Business Model Half-hearted digital adoption with little impact on business models âWhat Should Beâ An integrated delivery model which enables the business deliver access and convenience with or without physical presence
- 12. Route ⢠To allow, and encourage, community to share experiences and affect product offering and delivery Understand the Customer ⢠To understand, engage and retail to customer base and primary market via digital tools. Reinvent the Business ⢠To provide insights on peopleâs ethnos, behavior and other required metrics . Build Eco- systems
- 13. The Path to Digital Transformation Delivering the New Vision Aligning the entire Organization Taking an Ecosystem Approach Growing not just the customer base for the core of the business but an aligned community Curating and Managing Information Delivering precise insights from tracking communities interaction with products and other activities Delivering a flexible Business Model Being able to learn, unlearn, relearn and retool quickly. Optimising Processes Doing things easier, quicker and cheaper.
- 14. Aligning the Business in a New Eco-System Digital Assets A blog/discussion forum with capacity to drive user generated content and an ecommerce store to retail goods and services using a Mobile APP. Applications will be modular in nature allowing for future modules based on future needs.
- 15. Requirements DATA ⢠Customer Data ⢠Customer Datamart ⢠Demography and geography PROCESS ⢠Streamlined ⢠Shorter ⢠Cheaper ⢠More Accessible
- 16. 2. Moving from Analogue to Digital Recreating the Context
- 17. 1. Publishing
- 18. From Manual Publishing to Digital Publishing Manual Publishing Publishing with Paper and Print as core Hard and Soft- Cover Books E-Publishing Using electronic Platforms E-Books Need for Information on the Go News and Information is today consumed on the go. Innovation is driving access and Delivery
- 19. Digital Publishing Eco-System Sony Reader Stanza âI-Phone Adobe DE E-Publishers Mobi - Kindle Lit E Reader Global Reader Distributors Adobe OverDrive DNAML LibreDigital eBook Technologies Publishing Dimensions VitalSource Technologies Innodata Isogen Support
- 20. 2. Commerce
- 21. FromManualCommerce toElectronicCommerce The Dynamics ⢠The retail industry in Nigeria has become increasingly sophisticated, evolving from open-air markets to modern malls and online shops, mainly due to a growing population of urbanization and emerging middle class. ⢠Online shopping has become quite popular due to its relative convenience and the reasonable prices of goods and services available. Recent Developments ⢠The increase in internet penetration in Nigeria has created huge opportunities for the online retail markets, hence the rise of stiff competition in the e-commerce industry in Nigeria. ⢠The CBN cashless policy has further driven the e-commerce and online shopping industry, as it seeks to reduce the use of physical cash while adopting various electronic mode of payment like the JumiaPay.
- 22. Order Processing ⢠In-house Stock Management ⢠In-house Dispatch ⢠In-house Jumia Picking and PackingComputer Processing Payment Management ⢠Visa ⢠Verve ⢠Banks The E-Commerce Value Chain
- 23. Linkages Retail Suppliers Warehouse Customers Buyers Security Procurement Data Warehouse Policy Makers E-Commerce SMEs Payment Platform
- 24. Types of E-Commerce Players in Nigeria B2B (Business to Business) ⢠This refers to e- commerce activities between businesses. ⢠Quill.com ⢠www.ferguson.com B2C (Business to Consumer) ⢠This refers to e- commerce activities between a business and a consumer. ⢠Jumia, Kaymu and Jumia, Cheki C2B (Consumer to Business) ⢠This type of e- commerce usually refers more to services rather than goods. ⢠Jobberman.com C2C (Consumer to Consumer) ⢠This type of e- commerce is made up of online classifieds ⢠OLX ⢠Jiji ⢠Carmudi
- 25. Context and Competition CONTEXT With over 67 million people online - potentially a big market â Nigeria ranks among the top 5 emerging e-commerce markets. In 2014, Nigeriaâs e-commerce market was valued at 225 billion Naira, or US$1.3 billion due to the 25% in e-commerce growth. COMPETITION Jumia Kaymu Payporte Konga (Yudala) Deal-Dey MallforAfrica
- 26. Challenges facing the Ecommerce Industry Teething problems of Logistics â˘Logistics and supply chains remain tough challenges for the e-commerce platforms in Nigeria. Delivery within 24 hours is not feasible in major cities and some parts of Nigeria do not yet have good standardized physical address pattern. High cost of internet services â˘The high cost of Bandwidth is still a major set back for most e-commerce companies. The cost of Broadband services is high in major parts of the country. Security ⢠Most Nigerians still find it difficult to do financial transactions through e-commerce websites due to internet security threats. Low literacy rates ⢠Illiterate citizens may be unable to participate directly on e-commerce sites that require reading and writing skills. Without investing in the education of these citizens, the pool of potential customers for web entrepreneurs is greatly reduced. Payment (Online/Offline) ⢠The current systems are not user friendly and they create additional steps to the checkout process. There is also no viable payment system for in-app purchases.
- 27. Upcoming Trend in E-commerce Industry Growth of Online Malls ⢠Many e-commerce companies discover that rather than being burdened with inventory, they could set and provide e-commerce as a service to traders ⢠( eg., Jumia MarketPlace) Ease of Payment Integration ⢠Jumia also pioneered this initiative with the JumiaPay solution Credit Easing ⢠Easy credit in form of credit cards allow buyers to act on impulse. They buy now and pay later using dedicated credit cards tied to an account. Beyond Lagos ⢠The opportunity for e-commerce is growing all over the country, beyond the main cities of Abuja, Port Harcourt and Warri. Now, there are online stores as far as Maiduguri in the Northern area. Outsourced Delivery ⢠Currently, courier companies are making delivery arrangements on a bilateral, ad-hoc basis. In the near future, we may see tailored products being rolled out that target e- commerce stores. The Coming Legislation ⢠Nigeria does not have a specific e- commerce law. The Legislature is taking a top down approach to work on a Cyber-security Bill with more inputs from foreign NGOs.
- 28. 3. Banking
- 29. The Banking Industry Reforms â Entry of FINTECH Policy Thrust ⢠The banking reforms in Nigeria are an integral part of the country-wide reforms being undertaken to reposition the Nigerian economy. Key Issues ⢠Address failures in corporate governance in banks ⢠Fill critical gaps in the regulatory framework and regulations Projections ⢠From the Financial System Strategy 2020 (FSS2020), of the Central Bank of Nigeria (CBN), it is envisaged that the financial system should be robust enough to support economic growth ⢠Drive towards Cashless creating possibilities for FINTECHS especially around payment solutions
- 30. Creating a Digital Bank ⢠"Start-ups and emerging providers of digital banking platforms offer banks interesting opportunities for innovation." - Stessa Cohen, Research Director at Gartner. INTERNET OF THINGS (IoT)DIGITAL BANKING
- 31. Some Digital Banks in Nigeria BANK FOCUS YEAR LAUNCHED/ANALYSIS https://www.lidya.co/ The platformâs first product is targeted at SMEs as a receivables based loan, which can be between $500 and $15,000. The credit will be disbursed to the customers within 72 hours as opposed to the 6 months it would normally take were it a traditional bank. (Culled from Herald News) 2016 ⢠Calls itself the first Digital Bank in Nigeria https://www.kiakia.co/ 90% of KiaKia customers have never accessed a loan from any traditional financial institutions in their life and do not even have credit score. So, you can see the power of fintechâ 2017 Is strategized as a digital lending platform http://www.alat.ng/ Focus on easing Banking transactions by creating a branchless bank which is driven using a mobile app 2017 Big on Digital Savings
- 32. 4. News
- 33. From the Manual Newsroom to the Digital Newsroom 24 HOUR NEWS CYCLE The invention of the 24 hour cycle THE COMING OF ONLINE NEWSSITES Online New-siteâs speed converted Newspapers to mere News Rebase Platforms BREAKING NEWS Breaking news delivered online and to mobile devices can compete with TV. Factors Driving the Growth of Digital News
- 34. Creating the 24 Hours Newsroom Changing the Context Switching editorial context From allotted time to Press to delivering News on the Go. Becoming Platform Agnostic Expanding the platform for communication Move from pure News-print to Digital and Online Delivering Flexible Content From Cold to Hot Content From Graphics to Audio-Visual
- 35. From Rebasing to Breaking the News Differentiating Newsprint and Online Coverage Integrating platform possibilities using Digital to deliver Omnichannel News and Information
- 36. 5. Film and Music
- 37. Market Dynamics Digital Switch- over Cable Television Digital Film and Music Distribution
- 38. Move from Analogue to Digital Production ⢠Adoption of Digital Production ⢠From Instrumentation to Editing Distribution ⢠Move to arrest Intellectual Property Theft ⢠Adoption of Digital Distribution Models Exhibition ⢠Netflix ⢠Iroko ⢠Apple Music
- 39. 3. Integration Accelerating Digital Transformation
- 40. Accelerating Transformation â Key Considerations Looking Beyond Current Business Model ⢠Production ⢠Distribution ⢠Delivery Getting New Insights ⢠The problem area associated with the current model â Access to Raw Materials, Environmental Factors etc. ⢠The sustainability Question â For How Long Can We Continue to Do This? Trend Spotting and Disruption ⢠TRENDS - How do customers prefer to be served? ⢠DISTRUPTION - Do Customers know what they want until they see it?
- 41. Driving the Process Service Experience ⢠Create a seamless experience Product Delivery ⢠Become the Customer Champion Business Process Remodel to suit new possibilities
- 42. Conclusion Driving Innovation and Entrenching New Values Stretching the boundariesâŚ. 1. Create differentiation â Redefining route to Market 2. Decrease Volatility â Reduction Complexities 3. Broaden Income Base â Creation of Access through Aggregation Cost Efficiencies. Compelling Models Customer Connection 42
- 43. Lagos - Nigeria 99 Awolowo Road, Ikoyi Lagos Tel +234 (0) 80 991 2629 www.precise.com.ng Thank You