A little peek into the current digital ecosystem and explanation of how Booz Digital can create value in your organization

1. UNLOCK YOUR DIGITAL VALUE
‘THE ART OF THE POSSIBLE’
Amsterdam - 6 November 2013
Behdad Shahsavari
Booz & Company
Jeff Schumacher - Christopher Vollmer
boozdigital
boozdigital.com
1

2. Digital innovations are rapidly reshaping our business environment
2

3. Our survey shows that firms have entered the online world – however, the right
mindset and capabilities are missing to move a step beyond
Digital Marketing Capabilities
Transforming
Offline to
Online
Connecting &
Engaging
Integrating &
Reimagining
Online advertising
77%
Social media marketing
75%
Consumer insight
generation
66%
Digital Commerce Capabilities
E-commerce enabled
website/ Online sales
66%
Analytics for online
customer targeting
60%
Online campaigns to
drive customer acquisition
62%
Social commerce
45%
Advertising on
media sites
60%
Mobile commerce
45%
Advertising on
major retailer websites
30%
Open innovation
Analytics for customer
development/ loyalty
38%
28%
Developing
engaging content
Paid online services
32%
8%
Source: Booz & Company Digital Commerce survey (% ranked as a top-5 capability)
3

4. As a result, firms face challenges in connecting to their customer and truly
transforming their business starting from Digital
• Most players see digital as incremental instead of
transformative – digital is not just an add-on
Health Future Vision
• As such, incremental steps will not be enough –
re-imagining in a broader context is key
• Customer engagement goes beyond online presence and
towards a new world of real-time transparency
• To become truly customer-centric, integrated customer
value development should drive all commercial activities
• Digital is a challenge to take head on, as in „now‟ –
all it takes is guts to go beyond the obvious…
Launch Video
4

5. Digital Is Not A Trend for Tomorrow .. It Is Already Here Today
5

6. Today’s Agenda
• Our Perspective on Digital
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
6

7. Transforming User Behavior, Experiences And Business Models
1.
Mobile =
“First Screen”
2.
Devices Connecting
Everything
3.
Human-centered
Design and the
User Experience
The
New Digital
Ecosystem
4.
Content, Commerce,
and Advertising
Converging
5.
Personalize or Perish
6.
Supply Chains
Go Digital
7

8. 1. Mobile = “First Screen”
An Explosion In Mobile Devices & Connectivity
• More than 6% of households own more than
15 connected devices today, and by the end
of 2014, there will be more than 10 bn.
connected devices worldwide (IBM)
More connected devices than people
World population:
6.3 Billion
6.8 Billion
7.2 Billion
7.6 Billion
12.5 Billion
25 Billion
50 Billion
0.08
1.84
3.47
6.58
2003
2010
2015
2020
Connected devices: 0.5 Billion
• Mobile broadband networks account for
nearly one quarter of the world’s mobile
cellular connections, approx. 1.6 billion 3G
and 4G subscriptions
• Approx. 580 operators in 186 countries
are running networks including CDMA EV-DO,
HSPA, WiMAX or LTE technology
Connected devices
per person:
8

9. 1. Mobile = “First Screen”
We Are All Spending More Time On Mobile Devices
Digital Media Usage To Exceed TV Time This Year
Average Time American Adults Spent With Different Media (Hours:minutes)
Source: Emarketer August 2013
9

10. 1. Mobile = “First Screen”
Focusing Most On “Me” Time And Socializing – Growing Role Of Shopping Too
Source: AOL & BBDO 2013
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11. 1. Mobile = “First Screen”
More Media Experiences Becoming Mobile First
Entertainment
News
Sports
Haunting Melissa/
Hooked Digital Media
Circa
MLB At Bat
Kids/Youth
Disney (Disney Jr.)
& MTV (Wait „Til Next Year)
11

12. 2. Devices connecting everything
Connected Devices Growing Part of Our Daily Lives
GOOGLE GLASS –
a wearable computer
with a head-mounted
display (HMD)
NIKE FUEL–
NikeFuel counts all the
activities of your athletic life.
Running, walking, basketball.
Nike+ devices measure your
moves and turn them into
NikeFuel. And since NikeFuel
is calculated the same way for
everyone, you can compare
and compete with anyone.
ARMOUR39 by UNDER ARMOUR a monitoring system of athletes to
track progress such as the
amount of calories your burn, your
heart rate, and a new term called,
“Willpower.”
FLEXIBLE DISPLAY –
Samsung/lg/sony/etc
12

13. 2. Devices connecting everything
Successful Applications of Technology Focusing
How They Connect Ecosystems & Users
Android OS
Open source integration of
devices and strategic
partnerships create a
“living” data ecosystem lock
in consumers for life
Apple OS
Tight integration of
devices and strategic
partnerships lock in
consumers for life
Nike Fuel
Nike‟s digital platform is rooted
in Fuel points but is activated by
an ecosystem of enablers
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14. 3. Human centered design
Product and Technology Design, Which Puts the User First,
Transforming Product Development
•
What are its aesthetics?
•
•
What are key points of interaction for
the user?
•
•
What are the users expectations for
performance and functionality?
What are core materials? How is the
product constructed?
•
How fast can we prototype?
•
What features will shock and awe?
•
What day in the life activities can we
observe for design insight?
•
What natural gestures can inspire
feature design? Component design?
What did we learn from usability
testing?
14

15. 4. Converging content, commerce, and advertising
Ad Spend Continues to Inch-Up … Powered by Digital Growth
Total Ad Spend, $B
Digital Ad Spend, $B
+4%
176
Directories
Outdoor
Radio
Print
158
8
6
15
8
7
16
6
7
16
32
35
53
+14%
36
41
Digital
184
53
32
32
2
3
0
0
2
3
2
3
41
0
0
25
61
69
2013
2015
Mobile
Classifieds
70
15
2011
Email
Lead Gen
17
12
TV
0
0
19
2011
2013
23
Display
Search
2015
Source: Emarketer 2013
15

16. 4. Converging content, commerce, and advertising
Digital Commerce Evolving From Transactions to Relationships
>>>>>>
Traditional Transactional eCommerce
Input Product
Search Parameters
Emerging Relationship Driven Ecosystem Model
Account
Management
Define Payment
Preference
eCommerce
Transactions
User/
Consumer
Select eCommerce
Portal
Service
Delivery
Customer Portal/
Ecosystem
Self Select
Product
Select Delivery
Method
Personalized
Preferences
Content/Branded
Experiences
User/
Consumer
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17. 4. Converging content, commerce, and advertising
The Result: Lines Blurring Between Ads, Content, Commerce
Co-Developed Content
 Consumers and businesses are
demanding to engage directly with
manufacturer and supplier brands –
both via the brands owned content
and as co-creators of content where
feedback, innovations, and new
solutions can be captured in real-time
Launch Video
“Shoppable” Content
 Consumers are seeking nontraditional buying experiences which
combine branded content with basket
and transaction solutions to learn
about products, increase their basket,
and elicit purchases they may not
have made otherwise
Launch Video
Augmented Reality
 The intersection of physical and
virtual spaces, through technologies
like kinect, will be the new wave of
business and customer engagement
Launch Video
17

18. 4. Converging content, commerce, and advertising
More Examples of Ad + Commerce Convergence
Amazon Ad Revenue, $M
+41%
Twitter & Starbucks
Delivery Agent & TV
835
610
420
2011
2012
2013
18

19. 4. Converging content, commerce, and advertising
Commerce Innovation Continues To Expand
Subscription
C2C Sharing and Rentals
Fully Digital Sales Model
Peer to Peer Lending
OnDemand
Source: Techcrunch, Mashable, AdAge, NY Times Media Section
19

20. 5. Personalize or perish
User Experiences Becoming More Personalized
Personalized Interfaces
Personalized Content Selections
 Increasingly, users launch digital
experiences from a customized
interface
 Users look for content that can be
curated based on their preferences,
social interactions, and behavior
 Bleacher Report grew from startup to
19MM unique users by offering a
personalized user experience,
including social data, rich profile
interactivity and gamification
 Increasingly, media channels deliver
customized menus of content
customized based on stated consumer
preferences,
 Examples: Medium, Yahoo!/tumblr,
Dropbox, XBox, Smart TV
 Examples: HuffingtonPost, Circa,
Pandora, Flipboard, Pulse, BuzzFeed,
iHeartRadio
Personalized Functionality
 Users customize media, apps, sites to
deliver their desired functionality
 Personalized alerts, offers, lists, badges,
suggestions and recommendations;
aggregation of content based on
behaviors and preferences
 Amazon combines customer insights
with data architecture to drive
cross-sell and up-sell
 Examples: Soundcloud, Spotify,
FourSquare, Netflix, Salesforce
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21. 5. Personalize or perish
Big Data Rapidly Expanding = More Sophisticated Analytics
The market is enormous …
 Big data market will grow at a
CAGR of 40% to $16.9B, 7x
faster than the overall comm &
tech market globally
… And is expanding by the day
 Annual global IP traffic
has reached one
zettabyte, an increase of
540,000x from 2003
… enabling real-time and insight driven decision making for ecosystems and consumers
 1/3 of data center traffic will be cloud traffic created
from brands, retailers, and customers … creating the
potential to “snap” multiple clouds together across
brands, retailers, and agencies
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22. 6. Supply chains go digital
Linear Supply Chains Are Now Digital Supply Networks
User/
Consumer
Manufacturer (OEM)
Supply chain
Distributor
/Reseller
Manufacturer
User/Consumer
Supplier
Retailer
Logistics
22

23. 6. Supply chains go digital
Examples of How Supply Chains Are Digitizing
3D Printing = Fewer, Faster Prototyping
RFID = Real-Time Visibility into Stock
Robotics = Faster, More Automated Assembly
Advanced Analytics = Better Network Optimization
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24. Today’s Agenda
• Our Perspective on DigitalW
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
24

25. What We Do
Booz Digital is a full-service team of
strategists, designers and technologists
who help companies turn ideas into
transformational business.
We are leaders in digital strategy,
R&D, and operations, helping clients to
design & realize new platforms & to
boost performance of existing assets.
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26. We are a Team of Digital Operators and Experts
Rapid Product
Development
Practical
Operating Experience
An agile design and development
approach ensure a rapid sprint to
generation 1 and a test & learn
approach which keeps functionality
fresh and ins sync with customer
needs
All of our partners have practical,
real-world experience bringing
products to market with P&L
accountability
Multidisciplinary
Strategy, product management,
human centered design, UX / UI
design & solution architecture
under one roof
Innovative
Digital Tools
We apply progressive tools to
facilitate problem solving and
solution design
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27. What Makes Us Distinctive?
Breadth &
Depth of
Applied
Expertise
Bring together leading
industry & functional
experts (adherence,
empathetic design,
behavior modification,
human centered design,
solution architecture)
Strategy
First
Agility with
Client Needs
Operator
Mindset
Solution
Architecture
Always centered on
why & in search of
pragmatic solutions
vs. shiny objects
Mid-stream pivots are
inevitable and required
Understand the
complexity, not just the
opportunity. Bias to
push in the interests of
client success
Art of the possible
influences design and
ensures solutions are
feasible, efficient, and
scalable
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28. Guiding Principles We Live By
1
2
Design for
3 years out,
build for today
4
Apply agile in its
purest form – fusion
of strategy, design,
tech
5
Produce a lot to learn
a lot (i.e., divergence
and convergence)
3
Get feedback
early & often
from end users
6
Seek commercial
engines, not point
solutions
Technology as an
enabler to realize
human-centered user
experiences
28

29. An Agile Approach Bridges Strategy and Execution
QA
Ecosystem
Technology
trends
Vision
Coding/
development
Business
model
AV
production
Prototype
development
Requirements
Agile
strategy to
execution
Product
purpose
&character
Divergent
concepts
Information
architecture
User
experience
inspiration
Style
guide
Site/
product
map
Prototype
design
Key
wireframes
& use flows
Interface
design
•
•
•
Stimulates disruptive ideation
Provides speed
Forces discipline
Product
brief
brief
Comps
Agile
Competitive
offerings
Consumer
segments
& needs
Features
&benefits
User
experience
design
Enabling teams to…
•
•
•
Pivot easily
Manage for uncertainty
Create disruptive capabilities
Product
jam
sessions
29

30. Proprietary Tools: Using Innovative Tools Helps Create Disruptive Outcomes
Booz Digital‟s working environments include the latest in data visualization capabilities, immersive collaboration
rooms, discussion platforms and rapid prototyping toolsets.
Data
Visualization
Immersion
Rooms
Engagement
Platforms
Making
Tools
Launch Video
•
•
Oblong g-Speak enables
virtual/spatial data
visualization capabilities
•
Gesture recognition
interfaces enable natural
control of data
•
Oblong Mezzanine system
provides multidisciplinary
collaboration using 6 state
of the art LED screens
•
Web sites encapsulate team
working content and enable
seamless offline review from
any location
•
Accommodates multiple
devices and remote feeds
•
Facilitates non-linear
collaboration and review
•
Disruptive additive
manufacturing enables fast
and easy prototyping
•
Achieves geometries that
conventional machining
could not achieve
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31. Today’s Agenda
• Our Perspective on Digital
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
31

32. Recent Examples of Our Client Impact
Life-sciences
Health & wellness
Reimagined diabetes patient
support and care end-to-end,
including patient and provider
solutions
Reimagined how employees
understand their benefits and
simplified the world of health &
wellness
High tech e-commerce
Pet specialty retail
Reimagined future state ecommerce experience to drive
greater conversion, loyalty and
customer engagement
Future state visioning of digital
trends and impacts, informing
digital growth strategy and
roadmap
32

33. Example 1: Digitized Life-Sciences Solution
Booz Digital recently applied agile methods to helped the metabolic unit of a life sciences company ideate and design
an innovative digital eco-system for chronic disease patients and their PCPs
The challenge
• Improve engagement of chronic
disease patients by helping them to
better manage their disease end-toend
Understand persona
pain points
•
• Achieve the design and prototype in
record time
Bring the patient / user experience to life
Vision for an open digital ecosystem, including training,
supportive information services,
monitoring / tracking and
gamification of patient progress
•
• Foster connectivity (literally and
figuratively) with patients & physicians
to help solve pain points
• Create meaningful differentiation in
the eyes of physicians and payors to
shift share to the brand
What we did: In only 4
months elapsed time…
Clear functional
stories to support
Experience design rooted in
behavioral change science
•
Prototyped digital channels for
physicians & patients
•
Solution architecture, incl. build v.
buy v. partner for solution stack
•
Launch strategy involving
partnerships and measurement
approach with integrated hospital
systems & their physicians
33

34. Example 2: Omnichannel Health & Wellness Experiences
Booz Digital recently applied agile methods to enable end-to-end strategy,
product design and prototyping of a wellness solution
The challenge
Dramatically increase employee
awareness of benefits
engagement in health &
wellness activities, by:
• Bringing the principles of great
consumer digital design to the
healthcare (e.g., choice,
personalization, intuitive user
experience)
• Use agile approach to rapidly define
and prototype the solution to
increase speed to market
Personas via ethnography
Digital experience
Design & prototyping
What we did:
In only 3 months…
• Business strategy
• End-to-end product design
• Functional prototype with end user
testing
• B2B customers identified for alpha
/beta pilots
• Organization mobilized around
compelling vision
• Clear roadmap to execute
• Define / refine new agile
methodology to apply to future
products
34

35. Example 3: High Tech Customer Experience & Commerce
Booz Digital recently applied agile methods to reimagine an ecommerce experience
that will drive a 15% life in revenue
The challenge
•
•
•
Drive significant lift in direct-toconsumer sales, particularly in
under-penetrated, high priority
categories
Develop a visionary prototype
grounded in addressing most
critical consumer needs and
pain points to generate
alignment and excitement
internally
Utilize agile approach to rapidly
iterate design
Understand persona pain points &
Define the DNA for a Future Store
What we did:
In only 3 months…
• Re-imagined vision of future e-store
experience, including new value
propositions to drive acquisition and
loyalty
• Quantitative understanding of
consumer pain points
• Competitive differentiation assessment
Concept & prototype development
• Product development of each
component of future store DNA
• Functional prototype, including fully
redesigned UX across journey
• Opportunity sizing
• Future state solution architecture and
roadmap
• Operating model requirements
35

36. Example 4: Future Visioning and Platform Development
Digital products &
platform strategy
What we did:
The challenge
•
Client achieving healthy organic
and inorganic growth, however
digital beginning to drive disruption
in client‟s sector
•
Conducted future visioning session to
explore a range of certain and
uncertain trends that may exist in 10
years
•
Define customer of the future and
determine client‟s digital strategy to
increase consumer engagement
and share of wallet in-store and
online
•
Developed digital growth strategy,
roadmap and execution plan
•
Initiatives span merchandising, new
digital private brands, a remodel plan
for the in-store experience, changes to
the associate model and omni-channel
capabilities
•
Currently partnered to build customer
analytics capabilities and develop
digital private brands
STEEP+E trend explorations
Capability requirements
36