MENTOR

ADVISE

PROCESS
De-mystifying
OPERATE
MANAGE
Digital Transformation
- What is it?
PERFORM - What is the impact on business today?
MEASURE
EXPERTISE
- How do we start?

Richard Morecroft
Senior Partner
IMPROVE Digital Works Group
ORGANISE
www.digitalworksgroup.com
What we will talk about today….
• The impact of digital disruption on all business
• Why change is inevitable and cannot be
ignored!
• The benefits of digital transformation
• Understanding your starting point and where
you are heading
• Best practice approaches for change
“47% of companies haven’t
started to embark on digital
transformation.”
Are Businesses Really Digitally
Transforming or Living in Digital
Denial, Progress, 2016
What is “digital”…?

Market and behavioural change, caused by the adoption of

new technologies/online (Digital), to better solve a need.

Today, this is happening at scale and pace for customers,

businesses, partners, competitors, and personnel.

Requiring business change (Digital-Led Transformation) to

adapt, fend off disruption and remain competitive.
What is digital transformation? Technology is only 1 part of the jigsaw

“The investment in and development of new technologies,

mind-sets, and business and operational models to
improve work and competitiveness and deliver new and
relevant value for customers and employees in an ever-
evolving digital economy.”

Altimeter, 2017 State of Digital Transformation

Why now?
Commerce in the 20th and 21st Century
What’s happening today? - Market Characteristics
There are huge growth opportunities, but
significant challenges to adapt to…

1 2 3 4
Disruption
Growth Pace Complexity
/Change
This Market present opportunities….

These drivers are encouraging many businesses to attempt to move up the Digital Evolution Curve at pace…

To grab these opportunities…

§ Massive digital-led growth

§ Fundamental customer experience change and improvements
§ Enhancements to operational & go-to-market efficiency
§ Innovate new business models
§ Positively impacting the top and bottom-lines and
competitiveness
 So, where do we start…?

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© 2015 Digital Works Group. Proprietary and Confidential
Mapping your digital ambitions and moving up the Digital Evolution
Curve… Where do you sit?

Digital Marketing Company-wide Digital Class-Leading Innovation

No Digital Plans Transformation Transformation through Digital
Soon to be obsolete! Digital is ‘bolted on’ to Digital is used through-out Used to create
marketing. Another the full business for revenue competitive
channel for revenue and cost benefits. advantage
benefit.
Front-end multi-channel. End-to-end multi-channel.
Stage 1 explained…

• Multi-channel communications improve

acquisition & retention
• Responsive digital assets increase conversion
• Data Analytics drives marketing performance
• Integrated digital marketing process enhance
competitiveness
Digital Marketing • Best in class marketing platforms support
Transformation effectiveness and speed

Revenue/Reach Benefit

Digital Marketing Company-wide Digital Class-Leading Innovation

No Digital Plans Transformation Transformation through Digital
Soon to be obsolete! Digital is ‘bolted on’ to Digital is used through-out Used to create
marketing. Another the full business for revenue competitive
channel for revenue and cost benefits. advantage
benefit.
Front-end multi-channel. End-to-end multi-channel.
Stage 2 explained…

• End-to-end multi-channel channel customer

experience improves engagement
• IT and operational enhancements increase
efficiencies and lower costs
• Data insights improve strategic decision
making and performance
Company-wide Digital • A digitally ready organisation improves talent
Transformation acquisition and retention

Profit/Productivity Benefit

Digital Marketing Company-wide Digital Class-Leading Innovation

No Digital Plans Transformation Transformation through Digital
Soon to be obsolete! Digital is ‘bolted on’ to Digital is used through-out Used to create
marketing. Another the full business for revenue competitive
channel for revenue and cost benefits. advantage
benefit.
Front-end multi-channel. End-to-end multi-channel.
Stage 3 explained…

• Driving business model change and new

solution innovations.

• With new types of creativity and innovation

bring game changing competitiveness and
disruptive benefits
Class-Leading
innovation via digital

Competitive/Disruptive Benefit

Digital Marketing Company-wide Digital Class-Leading Innovation

No Digital Plans Transformation Transformation through Digital
Soon to be obsolete! Digital is ‘bolted on’ to Digital is used through-out Used to create
marketing. Another the full business for revenue competitive
channel for revenue and cost benefits. advantage
benefit.
Front-end multi-channel. End-to-end multi-channel.
Each stage means changes to the ‘Models’ in your business…
The movement ‘to’ and ‘optimisation’ of each stage requires you to make change to each of
the ‘models’ underpinning the performance of your business…

Fundamentally how the money

‘Business’ Model
is made…

‘Market’ Model GTM, brand, proposition, CX,

sales…
Automation of processes,
‘Operational’ Model
supply, etc.…

‘Organisation’ Model Size, shape, skills, working

practices, culture…

‘Technical’ Model Martech, payments, ERP, HR

systems, etc.
Knowledge / widsom
‘Data’ Model
Customer, risk, ops, etc.
1
3
Changes to the ‘Models’ in Your Business

Degree of change Digital Marketing Company-wide Digital Class Leading

At each stage Transformation Transformation innovation via digital
Revenue /Reach Benefit Profit/Productivity Benefit Competitive/ Disruption Benefit

Fundamentally how the

‘Business’ Model money is made…
GTM, brand, proposition,
‘Market’ Model CX, sales…
Automation of processes,
‘Operational’ Model supply, etc.…
Size, shape, skills, working
‘Organisation’ Model practices, culture…
Martech, payments, ERP,
‘Technical’ Model
HR systems, etc.
Knowledge / widsom
‘Data’ Model Customer, risk, ops, etc.
1
4
Making it Happen - The Critical Success Factors of Digitally-Led Change

Strategic Change
Factors
Clear Vision, Strategy,
Objectives & Targets Execution
Change
Factors

Ownership of ‘Digital’ by all User/Customer Experience Led The right Organisation,

Executive Team. throughout the business. Environment & Empowerment

A long term technical & data Making the right levels of A communications plan which Planning and measuring change Cross functional working - the
architecture (and plan) Investment brings the vision to life ‘Centrally’. right creation practices
 The Framework of Change – Mapping the factors to track success.
Which done well, allows businesses to move towards the ‘Expert’ quadrant for digitally-led success…

Strong Bringing…
• Excellent customer experience scores
Strategists Experts
26% 11% • Higher attraction and retention rates for critical staff

• New areas of innovation – process and business model

Strategic
Change • Greater effectiveness and efficiencies
Factors
Leading to…
Laggards Operators
• Competitive advantage and protection from disruption
57% 6%
• Higher profit through revenue growth and cost
Weak reductions.

Weak Execution Strong

“The most digital advanced companies are 26% more
Change
profitable than their competitors.” CapGemini (2015)
Factors
Source: A commissioned study by Forrester in Dec ’15. 150 retail, CPG and B2B org in
16 Benelux, Germany, UK and USA.
More on the framework of change in the next session..

- Mobilising your Digital Transformation - setting up for success from the get-go!

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© 2015 Digital Works Group. Proprietary and Confidential
Thank you… questions?

Richard Morecroft
Senior Partner | Strategy & Leadership

Richard.morecroft@digitalworksgroup.com

+44 (0) 7714 689796

www.linkedin.com/in/transformationinnovation

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