set all controls for destination digital
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© PA Knowledge Limited 2013 1
SET ALL CONTROLS TO DESTINATION DIGITAL
Rob Mettler, Director of Digital Business
PA Consulting
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Sir Martin Sorrell, CEO, WPP Group
How can legacy businesses keep their traditional,
profitable operations going, while the new digital
upstarts bite into their businesses? It’s the old
cannibalisation argument – if you don’t eat your
children, someone else will
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The digital business looks different on the
outside
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Critically the Digital Business is also very different on the
inside
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Governance & controls
• Modified to handle real-time interaction
• Adapted to reflect social and SaaS
Structure & locations
• Aligned around outcomes
• Integrating disciplines, technical & business.
People and skills
• New digital thinkers needed, more right brain
• Data, PR and agile skills need development
Application and technology
• Interfaces adapted to leverage SaaS & social
• Agile methods, rapid regular releases
Culture and leadership
• Mindset adapted to think digital
• Creates new markets, disrupts self & others
Processes
• Designed for self-service
• Highly responsive to data/social
Information
• New skills in real-time big data
• Internal, external, 3rd party data
Customer model
• New propositions and experiences
• Creates products with customers/users
Sourcing and suppliers
• New partnerships
• New types of contract
Infrastructure & facilities
• New approaches, e.g. BYOD
• Internal systems and external
Market Model
New rivals, new markets, new forces
Finance Model
New revenue streams, new costs
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Organisations range from those dabbling in digital to those that have reimagined their businesses and reconfigured them for the digital age
Dabbling with Digital
• No channel integration
• Heavily marketing biased
• Me-too services
• Minimal desire to change
• Minimal people with digital skills
Dealing w
• Multi-channel
e.g. on-line, mobile and phone
• Some new digital customer services
• Self service, zero-touch transactions
• Have a digital strategy
• Digital operations added to organisation
• Omni-channel operations
(physical, web, phone, tablet,
kiosk, mobile, social)
• Major growth and new revenues
from digital services
• Business strategy is digital
strategy
• Organisation re-structured to
be digital – new operating
models
Dabbling with digital
Digitizing today
A digital tomorrow
© PA Knowledge Limited 2013 – Data from senior clients attending PA Innovation event Nov 2012
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Organisations range from those dabbling in digital to those that have reimagined their businesses and reconfigured them for the digital age
Dabbling with Digital
• No channel integration
• Heavily marketing biased
• Me-too services
• Minimal desire to change
• Minimal people with digital skills
Dealing w
• Multi-channel
e.g. on-line, mobile and phone
• Some new digital customer services
• Self service, zero-touch transactions
• Have a digital strategy
• Digital operations added to organisation
• Omni-channel operations
(physical, web, phone, tablet,
kiosk, mobile, social)
• Major growth and new revenues
from digital services
• Business strategy is digital
strategy
• Organisation re-structured to
be digital – new operating
models
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Current position of company
Target position of company
Dabbling with digital
Digitizing today
A digital tomorrow
© PA Knowledge Limited 2013 – Data from senior clients attending PA Innovation event Nov 2012 and Design for Digital Event in Sept 2013
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Data snapshot #1 - Leaders don’t get digital and we’re lacking the skills we need
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Strongly Disagree Disagree Neutral Agree Strongly Agree
Re
sp
on
se
s
Our leadership team understand digital
We have the right skills to succeed in the digital age
Data from PA Digital Barometer- http://digitalbarometer.paconsulting.com
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So what’s stopping organisations?
Inertia
Understanding
No strategy
Culture Legacy
Executive sponsorship
Investment/bus. case Lack of agility
Expertise Data from PA Digital Barometer- http://digitalbarometer.paconsulting.com
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1. Re-boot the leadership Create digital leadership through education, do you need a CDO or a digital NED?
2. Educate in the language of the business Create the evidence base (numbers & customer) – what’s the value, revenue & profit
3. Look at it holistically across/into the business
It’s not just web and apps, it’s not just a channel, get under the skin, into the business
4. It’s a journey, break it down to achievable chunks Identify proof points (e.g. pilots) and focus on them, intercept annual planning
5. Create the A Team to drive it Drawn across disciplines, with senior sponsorship, consider skunkworks activity
Five key things to help you reach Destination Digital
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Rob Mettler Please complete the digital barometer
http://digitalbarometer.paconsulting.com
Destination Digital – the blog
@robmettler
© PA Knowledge Limited 2013