What's the relationship between digital disruption and digital transformation? How can organisations manage their digital transformations better and achieve their business transformations faster? What role does digital culture play and how do you develop a digital culture? New Zealand businesses and government agencies are all facing the effects of digital technology and responding to the changing nature of market expectations. In this presentation, delivered at Solnet's CXO Digital Transformation seminars, Phil Coop, (Digital Transformation Director, Solnet) discusses the roles of focus, innovation, team structure, culture, data, and UX as ingredients to a successful digital transformation.

1. Managing Digital Transformation
Philip Coop // Digital Transformation Director // Solnet
www.linkedin.com/in/philipcoop
All content © Solnet 2016

2. Welcome
Philip Coop // Digital Transformation Director // Solnet

3. Change enabled by digital technologies that occur
at a pace and magnitude that disrupt established
ways of value creation, social interactions, doing
business and more generally our thinking.
Digital Disruption
Source: Kai Riemer and Robert B. Johnston
“
”

5. Incumbent businesses lose their competitive advantage via reduced barriers to
entry, increased customer access to global markets, changes in consumer
expectations, and technological and propositional redundancy.
Digital Disruption affects business when:

8. “People think the directors of Kodak must have been
dumb not tosee what was happening, but they were not
dumb, they were very, very talented people, but they still
missed the transition and made assumptions that were
shown to be pretty poor in hindsight, but seemed fine at
the time”.
Ex Kodak Director

10. Digital ecosystems
Customer hears
music on Radio

11. The digitisation of an organisation’s products, services,
and processes to maintain or improve competitive
advantage, typically involving a combination of data,
cloud, mobile, and social technologies
Digital Transformation is:
“
”

12. Digital transformation maturity model
People • Lack of clarity around who
owns digital capability within
the business
• Clear functional
responsibility for digital
• High level of competence in
analytics, insights, conversion
optimisation
• Digital expertise
Workplace of choice for
digital experts
Knowledge
& Activities
• Limited pockets spread
throughout the organisation
• Basic digital marketing
• Reasonable understanding
of digital within Marketing
and IT
• Advanced level of digital
capability throughout the
business
• Clear mandate toward
continuous digital
innovation
Tools &
Processes
• No clear digital roadmap
• Limited systems in place for
reporting
• Sporadic digital project
delivery
• Limited activity outside
project mode
• Some systems integration
• Ongoing testing and
optimisation
• Marketing automation
• Platform integration(e.g. CRM,
analytics, billing, social)
• Iterative and agile
delivery process
• Technology no longer
constraint in decision
making process
• Can pivot at pace
Customer
Experience
• Informational customer
experience
• Limited transactional
customer experience
• Digital delivers personalised,
engaging and relevant
experience
• Digital experience is a
significant brand
differentiator
Sponsor • No clear sponsor
• Very limited appetite for risk
• No significant investment
• Head of Digital
• Limited appetite for risk
• Moderate investment
• Director level
• Willing to accept risk in order
to change
• Significant investment
• Board /CEO
• Significant investment to
achieve and maintain
digital capability
Level 1
Basic Digital Presence
Level 2
Customer centric digital
process and channels
Level 3
Data-driven optimisation
is a key strategic asset
Level 4
Digital is in your
company’s DNA

13. Marketing? Technology? Strategy?
Where does it live?

14. Innovate where it matters.
Manage your innovation as an investment portfolio.

15. Your
organisation
Core business

16. Your
organisation
Core business
Innovation
hub

17. Your
organisation
Core business
Innovation
hub
• Competing in new
markets
• Depletes core of talent
• Innovation hub often
requires core assets to
succeed
• Probability of success is
low
• Fix the core
• Focus on the areas that
will havethe biggest
impact
• Make a decision and
commit

18. Core business Adjacencies White spaces
Balance your innovation investment
Risk
Low High

21. • Google check out video

22. Build a digital culture.
It’s not about free fruit.

23. Analog culture
• Strong hierarchy
• Slow decision making
• Defined employeetasks
• Pushes product to market
• Homogenous teams
• Experience and stability
• Strongly defended silos
• Understands traditional customers
Digital culture
• Flat hierarchy
• Rapid decision making
• Empowered employees
• Market drives product
• Cross-functional teams
• Creativity and adaptability
• Strong collaboration
• Understands digital customers

24. Digitise your
management
team CEO
CFO COO CIO CMO CPO CDO
The whole team needs to understand impact of digital

25. Proposition DevelopmentDigital Strategy Innovation Digital Governance
Digital customer
experience
Enterprise Mobility
• Thought leadership
• Competitor analysis
• Qual. and quant.
Research
• International trends
• Scenario modeling
• Review value chain
• Stress test underlying
assumptions
• Investigate new
business models
• Marketing automation
• White space
opportunities
• Partnerships
• Deliver digital
transformation plan,
with clear deliverables
• Provide project
governance
• Resource allocation
• Financial governance
• Map online, offline, and
omni-channel customer
experiences
• Identify and prioritise
areas where digital will
transform the customer
engagement
• Ensure mobility is front
and centre
• Create mobile strategy
and roadmap
• Develop mobile
responsive websites
and apps with
enterprise integration
Digital Operations
Data, Analytics &
Insights
Enterprise Applications Digital Change
Digital Channels &
eCommerce
• Process mapping
• Process digitisation
• CRM
• Marketing Automation
• Understand customer’s
current data
capabilities
• Identify opportunities to
generate profitable
insights
• Develop third party data
partnerships
• Enterprise Architecture
• Application
development
• Systems integration
• CRM / Finance /
Fulfillment / Billing /
ERP
• Communications
• Internal training and
education
• Develop customer’s
internal capability
• Team resource,
structures, talent
• Omni-channel design
• Go to market strategy
• Digital media
performance
• Social media
• eCommerce platform
selection and support

26. Digital Social Collaboration
Social Profiles Collaborative Tools
Events and Continuous Learning

27. Think small. Move fast.
Move at the pace of digital.

28. “A small team of A-plus players can run
circles around a giant team of B and C
players.”
STEVE JOBS

29. Small teams
• Move faster
• Are more accountable
• Are more motivated
• Can pivot quicker
• Are more flexible
Product
Manager
Business
Owner
DesignerTester
Developer

30. Know your customer.
Create trust and they’ll tell you everything.

32. Social and Mobile Integration Customer Satisfaction and Reviews
Marketing Automation and Recommendations Analytics and Conversion

33. Leverage your data.
Deliver better experiences, improve revenue and conversion.

34. Data
Identifying what role the collection, analysis, and “monetization” of
data play in these strategic initiatives is a key dimension of a digital
transformation.
- Isaac Sacolick, GlobalCIO and Managing Director, Greenwich Associates. Source Forbes.com

35. Consumer data will be the biggest
differentiatorin the next two to three
years. Whoever unlocks the reams of
data and uses it strategically will win.”
Angela Ahrendts, ex CEO, Burberry
“

36. The role of data Customer
Channel
Interaction Design
Functionality
Data
CustomerExperience

37. Improve conversion

38. Invest in UX.
Create a beautiful customer experience and it will sell itself.

39. Marketing
UX
Shift budget from marketing to UX
Benefits
• Brand loyalty and advocacy
• Revenue
• Average Order Value
• Conversion
• Acquisition and Retention

43. 1. Innovate where
it matters.
2. Build a digital
culture.
3. Think small.
Move fast.
4. Know your
customer.
5. Leverage your
data.
6. Invest in UX.
www.solnet.co.nz
Philip Coop // Digital Transformation Director // Solnet
www.linkedin.com/in/philipcoop

44. Strategy & Innovation
Experience Design