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Charlene Li, Principal Analyst @charleneli
Altimeter, a Prophet Company charlene@altimetergroup.com
January 26, 2016
The Digital Transformation
Helping Your Company Thrive in the
Digital Era
2
3
What are the Important Trends?
With limited time and resources,
what should you focus on in 2016?
What are crucial areas to focus on to
drive digital transformation?
What can we safely ignore?
4
Drives Measurable Business Value
5
Technology Maturity
2005 20152010 2020
Social Cloud Mobile Data
Internet
of Things
Virtual
Reality
AdoptionRates
6
Top 10 Priorities for Digital Transformation in 2016
1 Customer
Experience
2 Culture &
Leadership
3 Content
Strategy
4 Digital
Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of
Things
9 Artificial IQ 10 Virtual
Reality
Top Priorities
1. Customer Experience
Everything that you do (and don’t do) impacts the brand
Priority: Map out and use the digital customer journey
8
Customer Journeys Are Not
Connected to Digital Transformation
Is your organization undergoing a
digital transformation?
Source: Altimeter Group Digital Transformation Study, 2014.
88%
12%
Yes
No
42%
25%
12%
12%
3%
The need to do so
hasn’t come up or been
made a priority
We have not officially
researched the digital
customer journey but
we have updated
digital touch points
with new social and
mobile technologies
and investments
We’ve talked about the
need to do so but no one
has taken the lead yet
We are researching
customer behavior now
and waiting for results to
inform our digital
transformation strategy
We have completely mapped out
the customer journey within the
last year and have a clear
understanding of new digital
touch-points
Which best describes your company’s efforts around
the customer journey/experience?
9
Nordstrom’s purpose: To provide a fabulous customer experience
by empowering customers and the employees who serve them.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
The Top 50 Relentlessly Relevant Brands
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Relentlessly Relevant brands have four
key characteristics
CUSTOMER
OBSESSED
DISTINCTIVELY
INSPIRED
PERVASIVELY
INNOVATIVE
RUTHLESSLY
PRAGMATIC
12
Traditional Journeys
• Personas
• Linear
• Optimization focus
• Functional
• Episodic designed
• Static
• Survey & heuristic based
Next Gen Experiences
• Behavior-based segments
• Unpredictable, shared
• Strategic focus
• Emotional
• Continuously designed
• Dynamic, real-time
• Data-based
Creating Next Generation Consumer Experiences
13
Sephora’s Marries Digital and Retail Data for
Customized Experiences
14
An Ethical Data Strategy Becomes a Brand Issue
15
This isn’t a
Technology
Problem
“You’ve got to start with the
customer experience and work
backwards to the technology.”
- Steve Jobs
17
The Customer Experience Cloud
2. Culture & Leadership
Priority: Support and amplify your brand internally
19
Biggest Challenges of Digital Transformation
20
Better Employee Relationships  Better Customer Experiences  Better Customer Relationships
21
Employee Engagement Has Very Slowly Improved
US EMPLOYEE ENGAGEMENT
Figures show are for February of each year
28.1
30.5 30.4 31.4 32.9
52.0 50.4 50.8 50.8 50.3
19.9 19.1 18.8 17.8 16.8
2011 2012 2013 2014 2015
Engaged Not engaged Actively disengaged
Source: GALLUP
22
23
The Engaged Leader Framework
Listen at
Scale
Share to
Shape
Engage to
Transform
24
“I don’t have the time.”
25
#MKTNATION
“It’s not about me.”
26
“It’s marketing’s job.”
27
#MKTNATION
“I don’t want to get
my company in trouble.”
3. Content Strategy
Priority: A cohesive strategy that address
content needs across the organization
29
Do You Have a Cohesive Content Strategy?
30
Content Management Team
Case Study: Nespresso
• Sets governance for content production
process, guidelines for tone, visuals and
messaging
• Orchestrates content across PR, customer
service, local markets and commercial teams.
• Works closely with CRM and customer
insights group
The Content Management Team:
• Turns customer insights into relevant content.
• Hosts digital/creative assets.
• Sets governance for how content is used.
• Establishes guidelines for consistent voice,
message and tone.
• Looks for integration between paid, earned
and owned content.
31
Be Clear About The Purpose of Each Type of Content
Top Digital Transformation Trends and Priorities for 2016
4. Digital Ecosystem Rationalization
Priority: Break social and digital silos,
distribute digital throughout the
organization and leadership
34
35
Break Down Silos to Align Customer Experience Priorities
• Different KPIs lead to competing efforts
• Consumer data lives in silos, each department has
partial insight
• Same channels have disparate content
36
Key Players in Digital Transformation
CHRO
CMO
CIO
5. Paid Social
Priority: For Marketers, take a measured
approach to paid social’s place in the
strategy and budget
38
39
Three Key Issues Around Paid Social
Paid Social Ads
Social Community
Management
Social Customer Care
Will brands shift resources from engaging customers
through community management to paid social for
reach, and shift engagement to social customer care?
40
Three Key Issues Around Paid Social
Paid Social Ads Employee
Advocates
Or will the rise of employee advocacy increase reach
and thus reduce social ad spend?
41
Three Key Issues Around Paid Social
Paid Social Ads
Will brand teams continue to use social at the top of the
sales/marketing funnel?
Or will digital advertising use paid social ads to drive e-commerce?
Brand Marketers Digital Advertising
6. Wearables
Why Wait: Primarily health/fitness use
cases
Why Act: Develop content that can be
consumed on these emerging platforms
43
Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce
Have a strong
content strategy
and capabilities to
take advantage of
emerging platforms
7. Visual Web
Why Wait: Technology to identify and
analyze your visual brand are still nascent
Why Act: Your brand is under fire/being
lauded/ignored and you don’t know
45
How Is Your Visual Brand Being Used?
8. Internet of Things
Why Wait: Standards are a complete mess
Why Act: Post-purchase experiences and opportunities to
build loyalty/advocacy
47
Diageo piloted connects bottle to smartphone
campaign for a personalized content experience
• 72%  sales during pilot
• Expanded program to 6 countries
• 100k unique QR code downloads
•  supply chain efficiency/visibility
9. Artificial Intelligence Virtual Assistants
Why Wait: Still very early in development
Why Act: Build trusted relationships with
recommendations/ads via AI-powered virtual assistants
49
Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use
10. Virtual Reality
Why Wait: Proprietary platforms are just launching this
year, standards are still emerging
Why Act: Study and develop new storytelling capabilities
51
Prepare Content and Customer Experiences for VR by Exploring Storytelling
Oculus Rift, March, $599 HTC Vive Pre, March
Sony PlayStation VR, H1 ‘16
Samsun Gear VR, $99
Microsoft HoloLens, 2016 $3,000 Google Cardboard, $30
52
Top 10 Priorities for Digital Transformation in 2016
1 Customer
Experience
2 Culture &
Leadership
3 Content
Strategy
4 Digital
Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of
Things
9 Artificial IQ 10 Virtual
Reality
Top Priorities
For more information please contact:
Charlene Li
Principal Analyst
charlene@altimetergroup.com
@charleneli
www.altimetergroup.com
www.charleneli.com

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Top Digital Transformation Trends and Priorities for 2016

  • 1. Proprietary and confidential. Do not distribute. Charlene Li, Principal Analyst @charleneli Altimeter, a Prophet Company charlene@altimetergroup.com January 26, 2016 The Digital Transformation Helping Your Company Thrive in the Digital Era
  • 2. 2
  • 3. 3 What are the Important Trends? With limited time and resources, what should you focus on in 2016? What are crucial areas to focus on to drive digital transformation? What can we safely ignore?
  • 5. 5 Technology Maturity 2005 20152010 2020 Social Cloud Mobile Data Internet of Things Virtual Reality AdoptionRates
  • 6. 6 Top 10 Priorities for Digital Transformation in 2016 1 Customer Experience 2 Culture & Leadership 3 Content Strategy 4 Digital Ecosystem 5 Paid Social Watch and Prepare 6 Wearables 7 Visual Web 8 Internet of Things 9 Artificial IQ 10 Virtual Reality Top Priorities
  • 7. 1. Customer Experience Everything that you do (and don’t do) impacts the brand Priority: Map out and use the digital customer journey
  • 8. 8 Customer Journeys Are Not Connected to Digital Transformation Is your organization undergoing a digital transformation? Source: Altimeter Group Digital Transformation Study, 2014. 88% 12% Yes No 42% 25% 12% 12% 3% The need to do so hasn’t come up or been made a priority We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments We’ve talked about the need to do so but no one has taken the lead yet We are researching customer behavior now and waiting for results to inform our digital transformation strategy We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points Which best describes your company’s efforts around the customer journey/experience?
  • 9. 9 Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them.
  • 10. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The Top 50 Relentlessly Relevant Brands 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
  • 11. Relentlessly Relevant brands have four key characteristics CUSTOMER OBSESSED DISTINCTIVELY INSPIRED PERVASIVELY INNOVATIVE RUTHLESSLY PRAGMATIC
  • 12. 12 Traditional Journeys • Personas • Linear • Optimization focus • Functional • Episodic designed • Static • Survey & heuristic based Next Gen Experiences • Behavior-based segments • Unpredictable, shared • Strategic focus • Emotional • Continuously designed • Dynamic, real-time • Data-based Creating Next Generation Consumer Experiences
  • 13. 13 Sephora’s Marries Digital and Retail Data for Customized Experiences
  • 14. 14 An Ethical Data Strategy Becomes a Brand Issue
  • 16. “You’ve got to start with the customer experience and work backwards to the technology.” - Steve Jobs
  • 18. 2. Culture & Leadership Priority: Support and amplify your brand internally
  • 19. 19 Biggest Challenges of Digital Transformation
  • 20. 20 Better Employee Relationships  Better Customer Experiences  Better Customer Relationships
  • 21. 21 Employee Engagement Has Very Slowly Improved US EMPLOYEE ENGAGEMENT Figures show are for February of each year 28.1 30.5 30.4 31.4 32.9 52.0 50.4 50.8 50.8 50.3 19.9 19.1 18.8 17.8 16.8 2011 2012 2013 2014 2015 Engaged Not engaged Actively disengaged Source: GALLUP
  • 22. 22
  • 23. 23 The Engaged Leader Framework Listen at Scale Share to Shape Engage to Transform
  • 24. 24 “I don’t have the time.”
  • 27. 27 #MKTNATION “I don’t want to get my company in trouble.”
  • 28. 3. Content Strategy Priority: A cohesive strategy that address content needs across the organization
  • 29. 29 Do You Have a Cohesive Content Strategy?
  • 30. 30 Content Management Team Case Study: Nespresso • Sets governance for content production process, guidelines for tone, visuals and messaging • Orchestrates content across PR, customer service, local markets and commercial teams. • Works closely with CRM and customer insights group The Content Management Team: • Turns customer insights into relevant content. • Hosts digital/creative assets. • Sets governance for how content is used. • Establishes guidelines for consistent voice, message and tone. • Looks for integration between paid, earned and owned content.
  • 31. 31 Be Clear About The Purpose of Each Type of Content
  • 33. 4. Digital Ecosystem Rationalization Priority: Break social and digital silos, distribute digital throughout the organization and leadership
  • 34. 34
  • 35. 35 Break Down Silos to Align Customer Experience Priorities • Different KPIs lead to competing efforts • Consumer data lives in silos, each department has partial insight • Same channels have disparate content
  • 36. 36 Key Players in Digital Transformation CHRO CMO CIO
  • 37. 5. Paid Social Priority: For Marketers, take a measured approach to paid social’s place in the strategy and budget
  • 38. 38
  • 39. 39 Three Key Issues Around Paid Social Paid Social Ads Social Community Management Social Customer Care Will brands shift resources from engaging customers through community management to paid social for reach, and shift engagement to social customer care?
  • 40. 40 Three Key Issues Around Paid Social Paid Social Ads Employee Advocates Or will the rise of employee advocacy increase reach and thus reduce social ad spend?
  • 41. 41 Three Key Issues Around Paid Social Paid Social Ads Will brand teams continue to use social at the top of the sales/marketing funnel? Or will digital advertising use paid social ads to drive e-commerce? Brand Marketers Digital Advertising
  • 42. 6. Wearables Why Wait: Primarily health/fitness use cases Why Act: Develop content that can be consumed on these emerging platforms
  • 43. 43 Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce Have a strong content strategy and capabilities to take advantage of emerging platforms
  • 44. 7. Visual Web Why Wait: Technology to identify and analyze your visual brand are still nascent Why Act: Your brand is under fire/being lauded/ignored and you don’t know
  • 45. 45 How Is Your Visual Brand Being Used?
  • 46. 8. Internet of Things Why Wait: Standards are a complete mess Why Act: Post-purchase experiences and opportunities to build loyalty/advocacy
  • 47. 47 Diageo piloted connects bottle to smartphone campaign for a personalized content experience • 72%  sales during pilot • Expanded program to 6 countries • 100k unique QR code downloads •  supply chain efficiency/visibility
  • 48. 9. Artificial Intelligence Virtual Assistants Why Wait: Still very early in development Why Act: Build trusted relationships with recommendations/ads via AI-powered virtual assistants
  • 49. 49 Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use
  • 50. 10. Virtual Reality Why Wait: Proprietary platforms are just launching this year, standards are still emerging Why Act: Study and develop new storytelling capabilities
  • 51. 51 Prepare Content and Customer Experiences for VR by Exploring Storytelling Oculus Rift, March, $599 HTC Vive Pre, March Sony PlayStation VR, H1 ‘16 Samsun Gear VR, $99 Microsoft HoloLens, 2016 $3,000 Google Cardboard, $30
  • 52. 52 Top 10 Priorities for Digital Transformation in 2016 1 Customer Experience 2 Culture & Leadership 3 Content Strategy 4 Digital Ecosystem 5 Paid Social Watch and Prepare 6 Wearables 7 Visual Web 8 Internet of Things 9 Artificial IQ 10 Virtual Reality Top Priorities
  • 53. For more information please contact: Charlene Li Principal Analyst charlene@altimetergroup.com @charleneli www.altimetergroup.com www.charleneli.com

Hinweis der Redaktion

  1. Do you *know* your digital customers? They are not just young Millennials. They are all ages, backgrounds. They are your customers, and they are digital. The opportunity today is to know so much more about them.
  2. While it’s great to think about new technologies like IoT and VR, the trends that will drive real business value will be the ones that are maturity today – Social, Cloud, Mobile, and Data. It’s really the convergence of these tech trends coming together that are creating opportunities.
  3. Here are the top 10 priorities for digital transformation in 2016. The Top 5 should be the core focus of your efforts and limited time/resources. The next five are still developing – and the best way to prepare is to make sure that the top five priorities are met. If you can deliver great customer experiences across the customer journey, have a content strategy in place, and the digital ecosystem worked out, you’ll be able to execute on these newer trends as they develop over the next 1-2 years.
  4. Altimeter’s research shows that 88% of companies are going through a digital transformation. But only 25% truly understand the customer journey and use it to create new digital touch points.
  5. Here’s an example: Nordstrom’s purpose statement is focused on the relationship with customers, defined by EMPOWERMENT. They started with inventory systems because they helped salespeople fulfill a key need of customers. Then armed employees with tablets, information at their fingertips. Then incorporated Pinterest pins into merchandising, and even put pins in the stores. Their technology choices were grounded in what will build experiences that deepen the relationship. This is a strategy.
  6. For more information, see prophet.com/relevantbrands
  7. Even the way we create traditional customer journeys needs to change – next generation experiences will go beyond a few personas to be individualized, be continously designed based on dynamic, real-time data.
  8. Sephora uses behavior to segment down to thousands of segments to customize the experience online and in the store. ColorIQ is a key component of this, but so is the online experience around these 110 segments X preferences/purchases.
  9. For more information on this research, go to http://bit.ly/IoTPrivacy2015
  10. For more information on this research, go to http://bit.ly/CXcloud2015
  11. For more on this research, go to: http://www.altimetergroup.com/2014/07/the-2014-state-of-digital-transformation/
  12. For more on this research, go to http://www.altimetergroup.com/2014/12/strengthening-employee-relationships-in-the-digital-era/
  13. For more on this research, go to http://bit.ly/2015socialbiz
  14. For more information about “The Engaged Leader” book by Charlene Li, please visit charleneli.com/the-engaged-leader
  15. Can you find 15 minutes to listen to what is on the minds of your top customers and employees?
  16. Correct. No one cares what you had for lunch. They care what you talked about at lunch.
  17. Incorrect. You lead a team, you lead your company’s information strategy. It’s your job to set the strategy, and communicate it over and over again.
  18. This is the hardest to overcome, how to build up the confidence in your judgment. This is the hardest part of being engaged. Palms sweaty, stomach churning.
  19. For more information on this research, go to http://www.altimetergroup.com/2014/12/a-culture-of-content/
  20. For more information on the research, go to http://bit.ly/ContentPerf2015
  21. For more on this research, go to http://bit.ly/2015socialbiz
  22. For more information on this research, go to http://bit.ly/CXcloud2015
  23. For more on this research, go to http://bit.ly/2015socialbiz
  24. For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  25. For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  26. For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
  27. gives Diageo a direct, one-to-one channel for communicating with consumers: their products. 3. It enables users to personalize products, by definition, in unique ways. 4. It converts existing, even generic, products into functionally intelligent ones, which (with the addition of smart phones) can deliver dynamic ad messaging linked to specific physical objects. 5. It creates a rationale for the consumer to have an on-going relationship with the brand — by linking continuing online interactions to real world product-based experiences. – The campaign changed customer perception of the whisky category, re-positioning the participating Diageo brands as innovative and modern – CRM opt-ins meant that Diageo gathered permission-based intelligence it could then reapply for future customer interactions – Resulted in a 72% sales uplift in the two weeks leading up to Father’s Day, plus an earned media value five times higher than investment – Due to the success in Brazil, the Father’s Day digital gifting campaign will rollout in 2013 across multiple markets, and Diageo’s first mobile loyalty scheme running on EVRYTHNG’s Engine launches in May this year Results 72% increase in sales in the 2 weeks before Father’s Day Earned media impact 5x investment Several celebrities created videos tweeted to 1M followers 100k increase in Facebook fans Global PR and industry coverage Permission-based opt-ins to CRM program, loyalty program expanded 100,000 unique QR downloads Program expanded to 6 countries Increased loyalty, loyalty rewards Enabled mobile targeting linked to specific QR code Increased supply-chain efficiencies https://evrythng.com/customers/diageo-case-study/ http://www.marketingmagazine.co.uk/article/1311292/five-brands-successfully-embracing-internet-things
  28. Uses Title Only slide layout with pre-programmed “live” text placeholders. Orange boxes can be re-colored any of the other 5 approved Prophet theme colors, but don’t mix and match colors: choose only 1 and carry throughout all process slides in sequence. Text placeholders utilize the same “increase/decrease list level” function as other customized layouts. I.E., bold text is text level 1, increase list 1 level to get to non-bold copy, increase list 2 levels to get to bullets.