Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Loading in …3
×
1 of 14

Digital Strategy Framework 101

24

Share

What do large enterprises need to know in the digital age? How should they develop a 'digital strategy'? A primer on what it means to be 'digital' today.

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Digital Strategy Framework 101

  1. 1. Cracking the Code: A Framework for Digital Strategy How Large Enterprises Can Successfully ‘Digitize’ SILICON VALLEY, CAJULY 2014 www.elevarco.com
  2. 2. Elevar – All Rights Reserved www.elevarco.com 2 About Elevar Digital Strategy Point of View Table of Contents
  3. 3. Elevar – All Rights Reserved www.elevarco.com Today, 3 out of 4 enterprises claim to have a digital vision, but their executives struggle to define and execute a clear digital strategy 3 Only 17-21% of CEOs in large organizations have a clear digital strategy vision Yes No Maybe Just 15% of corporate executives believe they can deliver a digital strategy Yes No 17-21% 15% Although 74% of corporate executives claim to have a digital strategy in their organizations… Sources: David Sealey, Digital Consultant; Forrester – The State of Digital 2014
  4. 4. Elevar – All Rights Reserved www.elevarco.com A digital strategy is about leveraging technology to achieve two goals: breaking down siloes internally, and connecting with individual stakeholders externally 4 Front Office Middle Office Back Office Executive Office Shared Services Front Office Back Office Middle Office Shared Services Executive Office Internal Capabilities External Capabilities Siloed Digital Capabilities Unified Digital Capabilities Digital Delivery Tools Stakeholders Digital Strategy: A Uniform Definition Supplier / Partner Customer A unified, cross-functional approach leveraging internal and external digital assets to enhance customer and business benefits  Connect departments and improve their relationships with new technology  Improve communication and data transfer across lines of business  Enhance user experience to drive new internal revenue streams and cost savings Internal Digital Strategy  Offer more service tools to engage all types of users (i.e., suppliers, customers, etc.)  Utilize analytics to increase personalization  Stay ahead of the curve on emerging innovation trends (i.e., mobile, social media) External Digital Strategy A B Data Exchange Siloed Digital Capabilities
  5. 5. Elevar – All Rights Reserved www.elevarco.com A digital strategy is distinct from other enterprise strategies – it’s about connecting internal and external digital capabilities to drive individualized experiences 5 IT Strategy Digital Strategy  Internal technology capabilities  Some cross-functionality, but mostly focused on discrete internal business units  Greater focus on internal operations  Less focus on engaging users Online Strategy IT Strategy Digital Strategy Business Strategy Online Strategy • Transcends the borders and barriers among departments to unify business, IT and online strategies into a set of digital initiatives • Focuses on the use of technology to accomplish and improve upon user (external) and business (internal) objectives The Role of Digital Strategy Where does a digital strategy fit in? How does a digital strategy compare? Business Strategy  Limited to deployment of online assets  Discrete function with minimum cross- functionality  Heavy focus on user engagement  Internal and external business capabilities  Some cross-functionality, but generally focused on individual departments  Generally divided from IT, online, and digital strategies  Internal and external digital capabilities  Holistic approach to unify siloed technological initiatives in the enterprise  Collect and analyze user information to drive individualized experiences for stakeholders
  6. 6. Elevar – All Rights Reserved www.elevarco.com There are three phases across the digital strategy continuum – to date, different industries have evolved to different phases of maturity 6 Digital Strategy Evolution Augment Breakthrough Disrupt Level Health Insurance Technology Firms A unified digital strategy vision is nearly non-existent, but there are some unique digital capability offerings There is a unified digital strategy, centered around a single platform with compelling digital asset offerings New and emerging platforms drive the business model Banks Health Insurance  Emerging mobile apps, with some simplistic functionality  Redesigned web interface  Basic tracking of customer interactions InternalExternal ExampleIndustries  Awareness of need for Big Data analytics  Some staff aligned to predictive analytics, but minimal formalized departments Banks & Airlines  Investment in “internet of things” – i.e., kiosks  “All-in-one” mobile app  Investments in innovation labs and startups  Use of internal Big Data, business intelligence and advanced analytics lines of business Tech Firms A B InternalExternalA B  Identifying use cases for innovative new platforms (i.e., Google Glass, iWatch)  World-class user analytics  Data driven culture supported by innovative IT technologies InternalExternal A B
  7. 7. Elevar – All Rights Reserved www.elevarco.com Case study: Banks and airlines have developed ‘all-in-one’ mobile apps as part of their digital strategy, achieving ‘breakthrough’ maturity – and bottom line results 7 Reduced customer service utilization • 43% of customers said they make fewer phone calls to their bank’s call center due to mobile banking1 Reduced issue resolution • 35% said they visited branches less often than they did before adopting mobile banking1 Increased customer loyalty • 30% of U.S. mobile banking users say mobile banking has made them more likely to stay with the bank from which they receive the service1 Reduced customer service costs • 80% reduction in per-check-in cost compared to traditional counter check-in due to mobile check-in2 Enhanced consumerization • 50% reduction in time required to launch new services or channels to individual consumers3 Industry-wide impact • 97% of the world’s carriers are investing in new ways that passengers can use their smart phones to “mobilize the entire journey”3 Banks Airlines Industry Adoption of An ‘All-In-One’ Mobile App – A ‘Breakthrough’ Capability 1) Forrester Research - http://www.forrester.com/The+ROI+Of+Mobile+Banking/fulltext/-/E-RES58504 2) The IBM Software story for the Travel and Transportation industry http://www.ibm.com/smarterplanet/us/en/leadership/aircanada/assets/pdf/AirCanada_Paper.pdf 3) Microsoft in Aviation http://az370354.vo.msecnd.net/whitepapers/SingaporeAirshow_Infographic.pdf
  8. 8. Elevar – All Rights Reserved www.elevarco.com Our research has shown that large enterprises without a clear digital strategy face five pain points, common across different organizations and industries 8 Overarching Pain Points Sample Client Quotes Summary of Overarching Pain Points  Website user interface and experience are subpar, creating complaints  Stakeholders cannot find the features they want  No data captured on existing or potential customers  There is no way of telling what these individuals require and how to better engage them  Employees cannot access data pertinent to them  Lack of confidence that data is accurate and current  Siloed units restrict a culture of data sharing  Departments are unable to access relevant data  Internal process automation is lacking and could be improved in order to enhance the overall customer experience  Organizations often lack the ability to utilize existing technology to improve the customer experience Friction points with customers and users Deep siloes across internal departments Data that’s wrong and difficult to access Labor intensive manual processes “For any given project, 30% of the team’s time is spent just finding the data.” “For any given project, 30% of the team’s time is spent just finding the data.” “It’s too difficult to find anything on our website…” “It’s too difficult to find anything on our website…” “Many related projects are running concurrently, but there is no systematic way to share knowledge.” “Many related projects are running concurrently, but there is no systematic way to share knowledge.” Limited ability to understand the individual customer “We can’t capture information on potential customers who engage us.” “We can’t capture information on potential customers who engage us.” “Many customer service problem call-ins could be solved with a very simple app.” “Many customer service problem call-ins could be solved with a very simple app.” External Focus Internal FocusWithin enterprise:
  9. 9. Elevar – All Rights Reserved www.elevarco.com The good news is enterprises don’t need to be perfect – an effective digital strategy can be implemented by focusing on pain points most relevant to company needs 9 External Focus Internal Focus  Mobile app gives user/customer the opportunity to self-correct data in real time  Basic website  Mobile app consists of website pulls  Software and/or social media tools to enhance information exchange  Significant investment in automation tools across departments  Data is available, but is often outdated and wrong  Limited info sharing across departments  Most internal processes are manual Friction points with customers and users Deep siloes across internal departments Data that’s wrong and difficult to access Labor intensive manual processes Limited ability to understand the individual customer Case Study – A Regional Health Insurance Client Post-Digital Strategy TargetPre-Digital Strategy  Inability to track customer interactions  Predictive data synchronizes in real time, supported by a dedicated predictive analytics team  Elegant redesigned website  Dedicated mobile app with core features Augment Breakthrough Disrupt This organization has focused their digital strategy primarily on developing a better understanding of their customers This organization has focused their digital strategy primarily on developing a better understanding of their customers
  10. 10. Elevar – All Rights Reserved www.elevarco.com Industry Pain Point Digital Health Company Description  An end-to-end digital health company developing solutions to improve an individual's health  Addresses health payers’ need to engage customers beyond when they are sick  Acts as a health and wellness tool for customers  Develops a web application that provides individual consumers with clarity around their healthcare costs, usage, coverage, and choices  Helps employers gain control over healthcare spending  Allows self-insured employers to optimize healthcare investments and achieve the highest quality outcomes for their workforce  Developing an app for Google Glass that will allow medical doctors to instantly access patient information  Reclaims hours that doctors spend on paperwork in order to dedicate that time to patient interactions Case study: Healthcare enterprises have begun to partner with and acquire emerging digital health companies to address long-standing industry pain points 10 Friction points with customers and users Limited ability to understand the individual customer Optum, part of UnitedHealth Group, acquires majority interest in Audax Health in 2014$56M in funding, with 24 year old CEO Data that’s wrong and difficult to access Silicon Valley darling founded in 2008 with $177M in funding Castlight empowers employees of CVS Caremark, a pharmacy and drugstore company, with healthcare price transparency solutions External Focus Internal Focus Early-stage startup founded in 2012 with $7.3M in funding Dignity Health, a large hospital system, partners with Augmedix to pilot Google Glass devices in clinical settings Within enterprise: Forward Looking Enterprise
  11. 11. Elevar – All Rights Reserved www.elevarco.com 11 Stakeholder Behavior Emerging Technologies 1. Demand for Individualization 4. Digital Asset Adoption 2. Mobile App Proliferation 3. Industry Adoption of New Technologies Convergence of Stakeholder Behaviors and Emerging Technology • Loyalty is correlated with individualized attention, service quality and cost considerations • Market surge in digital asset adoption, creating higher expectations for features and services • Mobile and digital assets have become a fundamental part of daily life • Multiple industries have been rapidly adopting new digital assets to engage with their customers The Need For A Digital Strategy Rapid changes in behaviors, and an influx of emerging technologies signal that large enterprises should prioritize their digital strategy or face long-term obsoleteness
  12. 12. Elevar – All Rights Reserved www.elevarco.com 12 About Elevar Digital Strategy Point of View Table of Contents
  13. 13. Elevar – All Rights Reserved www.elevarco.com 13 Elevar is a unique innovation management company – we operate digital innovation labs for large enterprises We are innovation advisors  Elevar helps large organizations innovate by partnering with high potential startups  We align enterprise problems with startup solutions to drive low-risk, high-impact innovation  We represent the interests of both enterprises and startups – ensuring mutual benefit and a spirit of long-term partnership for both sides We operate digital innovation labs that connect enterprises with startups  First, we work closely with large organizations to uncover their most critical pain points  Next, we align high potential startups to innovate customizable, scalable solutions for enterprise  Once the most promising solutions are selected by enterprise, we work hand- in-hand to create transformative partnerships between the parties Who we are: How we operate:
  14. 14. For general inquiries, please contact Chris Edell: chrise@elevarco.com. For intellectual capital inquiries, please contact Alek Bituin: alekb@elevarco.com. www.elevarco.com

×