the digital age of the customer - tu eindhoven 19th september 2016

Welcome to theThe digital age of the customer

@arjankramerlinkedin.com/in/arjankramer

Guest lecture TU Eindhoven 19th of September 2016Arjan KramerProgram Architect Salesforce Advisory Services

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Introduction

Me• 40• Daddy of 3 girls• Music & Cycling• 20+ years of IT experience• Executive architecture• Excited about Digital transformation

and Customer Experience• linkedin.com/in/arjankramer

Salesforce• Founded Cloud in 1999• $1.92 B in revenue• 20k employees globally and growing• Salesforce Ohana• 1-1-1 model• Cloud based:

Customer Service, Salesforce automation, Marketing, Community, Analytics, Apps platform, IoT and Commerce

What’s happeningout there… Cloud

New Technology ModelNew Business Model

Cloud

What’s happeningout there… IoT

Billionsof connections

Trillionsof customer interactions

Social

Mobile

Cloud

What’s happening out there… Artificial Intelligence. Making life smooth

But why should a business care?

Digital Business Transformation

Digital Transformation:Adding value by correctly

applying digital capabilities

Digital Transformation• Why our business should care• Examples• A guide for Digital Transformation

The DNA of Digital Masters

Digi

tal C

apab

ility

Leadership Capability

Using digital technology to transform the customer experience, operational processes

and business models

Successful transformations depend as much on how firms manage digital transformation

than solely on implementing new technologies

The What:

The How:

Research by MIT & Capgemini

4 Levels of Digital Mastery

Digi

tal C

apab

ility


Fashionistas Digital Masters

Beginners Conservatives

Research by MIT & Capgemini

The Time To Act Is Now: Digital Masters Have Significantly Better Financial Performance

Basket of indicators: • Revenue per Employee• Fixed Asset Turnover

Digi

tal C

apab

ility




+9%+6%

-4% -10%

Digi

tal C

apab

ility




+26%-11%

-24% +9%

REVENUE GENERATION EFFICIENCY PROFITABILITY

Basket of indicators: • EBIT Margin• Net Profit Margin

* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample

“Be the first (fashion) company to be fully digital end to end”

WHAT HAVE THEY DONE?• Engaging customers through social media• Fusion of the online and instore experience• Unifying data globally

HOW HAVE THEY DONE IT?• Governing cross-channel consistency• Engaging employees• Developing new skills• Strengthening IT-Business relationships

“Digital has been a catalyst for everything in the company” Angela Ahrendts, CEO

DIGITALCAPABILITY

LEADERSHIPCAPABILITY

“Burberry’s

flagship stores

feel like a

walk-in webshop

”

“Getting closer to our customers”

“Get closer to our customers and the community around us”

WHAT HAVE THEY DONE?• Start with listening to the main Social Media (FB & Twitter)• Interact and share on these media and others• Specific approach and focus per media

HOW HAVE THEY DONE IT?• Global team of Local Social Media managers• Insourcing > own people with a “heart” for MAERSK• Defined global set of house rules of engagement

“We see Social Media as a means of communication, not a means of marketing”

DIGITALCAPABILITY


“From a physical-intensive model to a knowledge and technology-intensive one”

WHAT HAVE THEY DONE?• Real time view of operations (1.0)• Automation of processes & machinery (2.0)• Intelligent mining model (3.0)

HOW HAVE THEY DONE IT?• Developed a radical digital vision• Invested in cultural change• Developed new competencies• Strong governance & execution

“Our business in the past was related to physical labor.Today our business is more related to knowledge and technology”

Marco Antonio Orellana Silva, CIO

DIGITALCAPABILITY


Createasharedtransformativevisionof

thedigitalfuture

Engageemployeesatscaletomakevisionareality

FuseIT&businesscommunitiestobuilddigitalskills&transformtechnologyplatforms

Establishstrongdigitalgovernancetosteerthecourse

TECHNOLOGY VISION

ENGAGEMENTGOVERNANCE

LeadershipiskeyinDigitalTransformation

LeadershipCapabilitiesiswhatturnsDigitalInvestmentintoDigitalAdvantage

But where do you start?

Start with why…

Simon Sinek – The Golden Circle

Ever wondered why Apple is doing so well?

…Apple sells: why!At Apple, in everything we do…

...we believe in challenging the status quo… we believe in doing things differently

And the way we challenge the status quo is by:…making our products beautifully designed

…easy to use and userfriendly

WE JUST MAKE GREAT PRODUCTS

WHY

HOW

WHAT

A companies “Why” & Digital Customer ExperienceAccess Experience Price Product Service

Friendly and clean store

Easy to reach stores

Easy to navigate stores

Compelling promotions Freshness/

Quality Maximum opening

hoursAvailability

(no stock-outs)

No damaged goods in storeInspirational Atmosphere

Customer Service

Complaints handling /

return policy

Loyalty program

Wide and deep assortment

Competitive pricing

Traditional RelevancyCriteria for Physical Channels

Dynamic Pricing

Mobile in-store Shopping support

Advanced / visualized

product information and (usage) advice

Product Comparison

e-Commerce (mobile, social,

web)

Flexible delivery-options ( home, store-pick-

up etc.)

Personalized Pricing

Additional RelevancyCriteria forDigital Channels

Personalized offers

Technology-enabled staff –support in-store

Interactive service via digital

channels (e.g. click-to-chat, social media)

Wider and deeper

assortment

Solution Pricing

Inspirational Content

Community engagements

(share experiences)

Social Shopping

Location-based pricing

Price Comparison

ILLUSTRATIVE

SUBSET OF

CP&R CRITERIA

From: “The myth of Excellence”

How can you be most Relevant by applying Digital?

Successful companies dominate on one attribute, differentiate on a second and compete

at parity on the remaining three

Access Experience Price Product Service

43 3

5

3

2. Differentiate on a compatible value attribute

3. Maintain parity on others

1. Dominate on one value attribute

Illustrative

Now you know why, but what’s next?

Engagement model for Digital Transformation

Focus the Transformation

ROADMAP – Outside Digital Masters, only 25% have leadership aligned

around a roadmapINVESTMENT CASE - Only 50% of companies create business cases for digital initiatives• Create framework for transformation, roadmap

and focus action two steps ahead• Shape and run proof of concepts

• Iterate your business model

Frame the Digital Challenge

IMPACT – 78% of executives view digital transformation as critical...

... But 40% of companies say that “lack of urgency” is the most important

obstacle to digital transformation• Understand the Impact• Assess Digital Maturity

• Develop Vision & Align Around It

Sustain the Transformation

INCENTIVES : 68% of digital masters tie incentives to digital transformation against 39% for beginners• Ongoing iteration and re-assessment of Capabilities• Realize benefit

Engage the Organisation

SHARED VISION – only 36% of senior executives have shared a digital visionPACE – 33% of employees think the pace of digital transformation is right against 54% for CEOs• Manage Organization and Partner eco-system• Drive cultural shift & evolve work practices

Capgemini

A simpler view of the same model

Sustain Frame

FocusEngage

Why

WhatHow

Last

Translating the why into what: Business & IT capabilities Compelling Case for Change

Customer Management

Content Management

Commerce Management

Fulfillment Management

Finance & Performance Management

BusinessPropositionDevelopment

Innovation,VisionandRoadmap

BusinessCaseDevelopment

Single View of Data

Integration & Orchestration

CrossChannelServiceManagement

IntegratedMarketing&CampaignManagement

WebContentManagement

DigitalAssetManagement

e/s/mcommerce

MerchandisingManagement

Pricing&PromotionManagement

OrderOrchestration

TransportandDeliverymanagement

Payment/Fraud/FXManagement

Finance–AllocationandKPI’s

SocialMediaEngagement

WarehouseMgt/3rdPartyMgt/DSVMgt

Insight&Analytics BigDataandWarehouse

StandardsbasedIntegration BusinessProcessOrchestration

The What – Technology trends: SMACT or SMACTAI

SMACTAI

+

Now, where did I leave my keys…?!?!

iBeacon: yes you found me!

Do you this jacket?

But HOW do you survive all these technologies?

Sustain Frame

FocusEngage

Why

WhatHow

Last

Integration & Orchestration

Security

Data governance

Service control

Performance

By applying an architecture framework that supports you.

Integration, Orchestration & Data governanceSe

curit

yPerform

ance Service ControlOperational

Business Services

Common Data

Services

Personalisation & Interaction

Customer Management

Business Support Services

The Immediate H-Model

Capgemini

Going Digital isn’t a choice, it’s imperativeDi

gita

l Cap

abilit

y


Digital Masters

Sustain Frame

FocusEngage

Why

WhatHow

Last