Decoding Digital Week 1: Developing a digital strategy
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The document provides an overview of week one of the Decoding Digital program, which aims to help participants develop a digital strategy for their business. It discusses developing customer personas, conducting a SWOT analysis and business model canvas exercise for a case study business called Oz Crafters. Participants are guided through creating a one page plan that maps out key digital strategy actions, timings and responsibilities. The goal is to help businesses assess their digital readiness and lay the foundations for an effective online strategy.
Decoding Digital Week 1: Developing a digital strategy
- 1. Decoding Digital Week One: Developing a digital strategy 1www.symphony3.com
- 2. Introduction Ryan Smith Digital Consultant Symphony3 www.symphony3.com 2 Fergal Coleman Director Symphony3 Andrea Halliday Stakeholder & Marketing Coordinator Business Victoria Online
- 3. About Decoding Digital • The Decoding Digital program has been designed to help participants develop, implement and measure a digital strategy for their business. • The aim is to provide you with the skills and tools so that you can start developing the digital capacity of your business. The program will run over four weeks which you’ll see shortly. www.symphony3.com 3
- 4. How to engage with us by webinar We want you to get the most out of the program by asking questions, giving your feedback, telling us your stories and participating in opinion polls. • Chat box – How to communicate with the chat box • Polls – How to participate with polls • Twitter – We will be answering questions during the session on Twitter. Contact us directly at @Symphony3Think and/or use the hashtag #DigitalVic www.symphony3.com 4
- 5. Get involved • We are running a LinkedIn Group for the Decoding Digital program which is your changes to stay in touch, receive updates throughout the week, share your experiences and connect with other participants. Join here: https://www.linkedin.com/groups/Decoding-Digital-Business-Victoria-6923565 • Do your homework! – this is important in week one especially www.symphony3.com 5
- 6. About Decoding Digital Week 1: Developing a digital strategy (Tuesday 3rd Feb) Hangout: LinkedIn (Thursday 5th) Week 2: Design & implementation (Tuesday 10th Feb) Hangout: Facebook (Thursday 12th Feb) Week 3: Launching and marketing the business (Tuesday 17th Feb) Hangout: Twitter (Thursday 19th Feb) Week 4: Evaluation and continuous improvement (Tuesday 24th Feb) Hangout: Google Analytics (Thursday 26th Feb) www.symphony3.com 6
- 7. The Result www.symphony3.com 7 • A digital strategy that can grow the business • A digital business platform (website) • A digital marketing plan • Social media channels • Content marketing • Continuous improvement plan (by measuring what’s working)
- 8. Today’s Session: Developing a digital strategy www.symphony3.com 8 Week one is about thinking about your business, the overall strategy and how to bring that online. 1. Digital Leadership 2. Our case study: Oz Crafters 3. Digital Diagnostic (finding the gaps) 4. Business Model Canvas 5. SWOT Analysis 6. Customer personas 7. Customer journey 8. Creating a plan
- 9. What is a digital leader? www.symphony3.com 9
- 10. Digital Leadership Beginner: You know you need to do something, but you’re not sure where to start Technology Led: You’re using digital tools for your business but you’re not sure how they contribute to your overall strategy Change Ready: You have a clear vision of where your business is going but need assistance with the digital technologies to get you there Digital Leader: You’re successfully using digital technologies as part of a well- documented strategy and generating profits 25% greater than your competitors www.symphony3.com 10
- 11. The Digital Diagnostic – Your Results www.symphony3.com 11 Understanding of future customer needs 5.72 Understanding of what the business needs to look like in the future (Vision and strategy) 5.68 Business model and process 5.86 Our People 5.56 IT Infrastructure 5.52 Data 5.17
- 12. Business Case Study: Oz Crafters • Oz Crafters are boutique woodworkers based in Ballarat, founded in 1981 • The business was started by Frank Jones, who left his job as an accountant to pursue his love for woodwork • Starting out alone, Frank handmade wood crafts from children’s toys through to custom-built furniture from locally and ethically sourced timber • Oz Crafters sell a range of pre-made toys, home products and furniture from their shopfront in Ballarat, and the workshop is open for viewing to the public on Saturdays to see the team at work • There are 7 retail partners who sell Oz Crafters’ products in other metropolitan hubs in Victoria, however the company has not branched out interstate. 2 retail partners have recently gone out of business. • Frank has 3 employed woodworkers and 3 shop assistants. His wife, Angela also helps with the management of the store and business admin www.symphony3.com 12
- 13. The Future Vision • Frank & Angela’s son, James (29 years old), has been living and working in Europe for the past 5 years and is returning home to re-join the family business • At 61, Frank is beginning to think about retirement and would love to see his son carry on the business into the future • James sees huge potential in using digital to grow the customer base of Oz Crafters, and wants to set a target to grow revenues by 30% in 2 years and 50% in 3 years. Current turnover is $1m. • By utilising digital, James believes Oz Crafters will be able to sell more products within Victoria, but also build a strong customer base in other states both with partners (B2B) and directly to consumers (B2C). • While mass furniture and homeware producers like IKEA continue to grow their market share, James believes there is still a great opportunity to provide a niche product that is high quality, hand made and ethically sourced and that customers will be willing to pay a premium for those characteristics. OzCrafters are currently CHANGE READYwww.symphony3.com 13
- 14. The Business Model Canvas http://www.businessmodelgeneration.com/ www.symphony3.com 14
- 15. OzCrafters Business Model Canvas • Key Activities – Crafting beautiful products – Marketing online (close store eventually) • Key Resources – Workshop – Expertise of craftsmen www.symphony3.com 15 • Key Partners – Find a digital partner – Interior designers • Value Proposition – Crafting beautiful personalised products – Ethically sourced materials – Australian-made – Last forever • Customer Relationships – Face to face – Online support – Social media • Channels – Online website – Social media – WOM – Partners/ Interior designers • Customer Segments - High Net worth individuals - Corporates • Cost Structure – Reduce size of store or eliminate – Reinvest savings in online – Staff – high quality craftsmen • Revenue streams – Direct orders online – Interior designers – Once off high value corporate jobs – Courses/workshops
- 16. More on business model canvas • http://www.slideshare.net/esaife/business-model-canvas-101 • http://www.slideshare.net/oukearts/10-disruptive-business-models-thaesis-and- trendwatching • http://www.slideshare.net/oukearts/10-new-business-models-for-this-decade www.symphony3.com 16
- 20. Nomi.com.au www.symphony3.com 20 The list goes on Peer to peer payments: societyone.com.au Online Education: Coursera.org or even this webinar! Crowdfunding – Pozible.com.au
- 21. Market Research • A key step in the development of your digital strategy is doing background research on your market, competitors, partners, and what is happening overseas. • By comparing your offering to other members of the industry, you should aim to establish your Strategic Competitive Advantage (SCA) – what is it that separates you from your competition? • Some suggested tools you may use to structure your research include: – Porter’s Five Forces Model http://www.mindtools.com/pages/article/newTMC_08.htm – Unique Selling Proposition (USP) http://www.mindtools.com/pages/article/newTMC_11.htm www.symphony3.com 21
- 22. SWOT Analysis www.symphony3.com 22 STRENGTHS WEAKNESSES Australian/locally made Limited production capacity Loyal customers in local area Customer base predominantly local (very little revenue growth) Reliable material suppliers Limited marketing budget and reach Relationship with metro retailers in Melbourne & Bendigo No established long-term growth or marketing plan Individual, custom, one-off products that cannot be replicated No online presence or social media activity OPPORTUNITIES Ability to sell directly to customers outside Ballarat online (e-commerce) Connect with existing customers online Use online data to forecast demand/production Take business processes and customer service online Reach new customers outside Ballarat using digital Undertake digital training and education (Decoding Digital) Expand retail partner base using online and allow online retail orders Save resources by moving processes online (e.g. retail orders) Outsource digital tasks where required (website developer) Recruit skilled employees using digital as the business grows Correspond with customers about custom orders online Get input and inclusion from all staff in digital strategy Include customers in product design and production Allow semi-custom products to be designed on website THREATS Competition from online retailers and mass producers Focus on local made & high quality selling proposition in online marketing Focus on direct marketing to loyal customers Ability to increase output with business growth Consider just-in-time inventory/production Utilise social for low- budget marketing Backlash from cutting out retailers Offer online discounts to retail partners Develop internal policies for digital management Less control over online reputation and feedback Monitor and address online reviews and feedback Maintain focus on quality of production Imitation products Step 1: • Develop four strengths (what’s great about you or what you do well), • Develop four weaknesses (areas of deficiency or in need of improvement) • Identify four opportunities (where and what are they?), and • Identify four threats (what could potentially get in your way of success?) Step 2: • How can I use these strengths to maximise these opportunities? • How do I use these strengths to overcome these threats? • What do I do to make sure that these weaknesses don’t spoil these opportunities? • What if these weaknesses combine with these threats, what corrective action will I need to take?
- 23. Creating Customer Personas • Creating ‘customer personas’ allows you to distinctly envision who it is you’re trying to market to and sell to • Most businesses will have multiple personas based on different customer segments/selling propositions • It often helps to base your customer persona on a real life customer • Be detailed and be explicit – give them a name, age, income, location and even imagine and draw what they look like • This will become the basis of who you design your online strategy for • Consider what makes them tick, what motivates them and how they use online tools to find products/services like yours (or your competitors) www.symphony3.com 23
- 24. Get into the character! www.symphony3.com 24
- 26. Google Customer Journey https://www.thinkwithgoogle.com/tools/customer-journey-to-online- purchase.html#!/australia/business-and-industrial/small/generic-paid-search www.symphony3.com 26 https://www.thinkwithgoogle.com/collections/zero-moment-truth.html
- 28. Developing a One Page Plan (OPP) www.symphony3.com 28 One Page Plan: Oz Crafters adapted from Mindshop Australia template Now No online presence Predominantly local customer base Offline business process procedures Little marketing activities or business growth Strategy Action Items Timing Estimated Duration Who Use online freelancer to develop branding and colour schemes Feb 1 week James & Frank Research most appropriate CMS for Oz Crafters Feb 1 week James Prepare a brief on functional requirements of website Feb 1 day James Interview developers to undertake build of website Feb 1 month James & Frank Undertake keyword research for OzCrafters March 1 Day James Review competitors' SEO strategies for guidance March Half day James Develop ongoing content strategy and plan March Ongoing James Conduct audit of site structure and meta data March 2 Days James Research possible tools for accounting and customer management April 2 Days James Understand which tools customers wish to use for customer service April 1 Day James Receive training for Frank and Angela April 1 Day Frank and Angela Move internal documents and processes to cloud April 1 Day James Create internal process documents for employees April 1 Day James Create social media accounts for relevant platforms (based on customer personas and journeys) March 2 Days James Share relevant content on social media networks March Ongoing James Create small advertising budget for social media March Ongoing James Respond to customer requests on social media March Ongoing James Develop a fully functional e-commerce website and online brand for Oz Crafters Build search engine presence through SEO activities Take manual processes online to save time and effort Promote brand awareness with digital marketing techniques Where How From Feb 2015 to July 2015 Take business admin and accounting online via cloud Fully functional website with built-in eCommerce for customers and retailers 50% growth in interstate sales via online store Grow brand awareness through SEO and social media marketing
- 29. Summary • Setting the right foundations for a digital strategy is vital • Don’t develop a website or engage in social media until you are clear on your digital strategy • Assess your digital readiness with the digital diagnostic • Work through your Business Model Canvas and SWOT Analysis • Map out your customer personas • Map out your customer journey • Take the most important items from your journey and put them into a One Page Plan • Send us your one page plan • Next week…. Design, development and technology Hangout this Thursday at 12.30pm – Hands on with LinkedIn! www.symphony3.com 29
- 30. Have your say Discuss topics and stay up to date in the LinkedIn Group. Tweet your questions with the hashtag: #DigitalVic Tweet us at @Symphony3Think Contact us at: https://www.facebook.com/Symphony3 Email us at: decodingdigital@symphony3.com www.symphony3.com 30
Editor's Notes
- #5: WE also want your views, your experience, how you solve problems using ICT