Digital Transformation in Food and Retail

transcript

Digital Transformation Food & Retail

February 2016

jo.caudron@duvalunion.com / @jcaudron / +32 475 43 80 98

@jcaudron

A story about Transformation

Sold in 35 countries!

@jcaudron

• we are a digital and innovative marketing consulting company

• founded in 2009 as Dearmedia, now the nucleus of the Duval Union ecosystem

• we work for large European clients

• we have a strong vision on the impact of digital and act accordingly

• we are advisors, writers, coaches and entrepreneurs

Long term strategy

Short term strategy

Fixing the basics

@jcaudron

Hi, I’m Jo Caudron Active in digital since 1993

Internet entrepreneur involved in 20+ start-ups.

Founding Partner of

Are you an active social media user?

Do you embrace new technology?

Do you get your kicks from new business models?

Who are you?

Digital disruption is real. Expect a smack in the face…

who is your…

Where did the money go?

@jcaudron

Waves of Digital Disruption

1995+ Music Photography Video Rental …

2005+ Print Media TV Travel Real-Estate HR …

2015+ Finance Healthcare Automotive Real-Estate Retail Education Telco …

2020+ All Safe havens will be subject to digital disruption …

@jcaudron

What can we learn?

Lack of understanding

creates fear

Putting things in a frame creates insights

• What can we learn?

Impact on Food & Retail?

Consumer

Retail Media

(Food) Brands

The relationship is changing.

The Glass House

This metaphor describes the changing relationship between the organization and the outside world.Transparency

Accountability Proximity

Responsiveness Bi-directional Humanization Authenticity

The relationship is changing.The Glass House

Transparency Accountability

Proximity Responsiveness

Bi-directional Humanization Authenticity

The Glass House

Product, services and their business models are changing.

This metaphor describes the evolution of unbundling and how this changes

your products, services, business models, go-to market.

The Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

UnbundlingThe Package

Speed Price

Angry Birds Twitter, Facebook

Newspaper Website

CNN online / app

Vertical sites and specialties portals

Yelo App Apple TV

Spotify

Sporza.be

LinkedIn, Monster, ...

eBayPinterest, blogs

Weather Pro (iPhone)

Traffic: Waze

YouTube

Twitter, Facebook

Breaking news

In-depth analysis

Services

WeatherClassifieds

Sports

Specials

Discovery

Culture

Trends & Lifestyle

The Package

Speed Price

Unbundling Procter & GambleThe Package

Speed Price

The Package

Speed Price

The food industry is changing, so is delivery

The Package

Speed Price

The Package

Speed Price

New business modelsThe Package

Speed Price

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

The position in the value chain and the channel are challenged.

This metaphor describes the by-passing that you are subject to or that you can perform yourself, leading to

a change in the existing value chain.

BypassingIf you can sell expensive cars online, you can sell anything online.

The Frog

Bypassing

The Frog

Bypassing

The Frog

Bypassing

The Frog

Buy directly from the farmer

The Frog

New gatekeepers Recommendations

“Good is good enough”

Ambassadorship

The Gatekeeper

Opinion making is challenged. New competion at the horizon!

This metaphor describes the change of opinion making,

of leadership, the entrance of new players

that dominate the attention of the people.

The traditional gatekeeper

Crowd-sourced opinions

Peers as news distributors

Automatic algorithms

New “experts” +New gatekeepers Recommendations

Ambassadorship

The Gatekeeper

New gatekeepers

Ambassadorship

The Gatekeeper

And what will happen if Amazon starts in the fresh industry?

Ambassadorship

The Gatekeeper

We know this…

Amazon = online store

Builds the best online infrastructure

“invents” the commercial cloud

disrupts the entire storage and server

industry

Amazon = online fresh food

Builds the best distribution

infrastructure

“invents” the commercial

“fresh cloud”

disrupts the entire distribution and

food retail

Now, imagine this…

Oops…

The Traveller

Primary location and place of consumption are changing

This metaphor describes the change of location and place, the emergence of hybrid models

that merge online and offline, to create a consistent user experience

and customer journey.

Place Utility

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

The Traveller

PLACE OnlinePoS Hybrid Omnichannel

(digital entering PoS)

(all functions go digital too)

Place Utility

Real-time

Which is yours?The Traveller

Place Utility

Real-time

Place: what if HalloFresh goes physical?The Traveller

Place Utility

Real-time

AirBnB for retailThe Traveller

thestorefront.com

Place Utility

Real-time

PlaceThe Traveller

digitalstrategies.tuck.dartmouth.edu/cds-uploads/people/pdf/Isaacson_InStoreDigital.pdf

In four empty storefront locations in New York City the brand ‘Kate Space Saturday’ installed temporary digital storefronts on the front window space of the locations. The giant touch screens allowed people passing by on the street to browse product and place orders.

Place Utility

Real-time

The Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Consumers are uniting and creating powerful communities

This metaphor describes the importance of the crowd, the power that it represents

for the good or the bad of the organization.

CollaborationThe Participant

Community

Local brewers unite through a community platform

The Participant

Power of the crowdThe Participant

Power of the crowd

flex.amazon.com

The Participant

Sharing economyFrom scarcity to abundance

The Participant

The Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Technology keeps progressing.

This metaphor describes the fact that we are just at the beginning of the digital revolution,

which means that all of the change that is already happening

is probably just scratching the surface.

Internet of ThingsThe Cyborg

Data Monitoring

Amazon DashThe Cyborg

Data Monitoring

Internet of ThingsThe Cyborg

Data Monitoring

Smart water bottle with mobile app & reminders

3D printed foodThe Cyborg

Data Monitoring

Amazon files patent for 3D printing delivery trucks

Big dataThe Cyborg

Data Monitoring

Taking monitoring to the next levelThe Cyborg

Data Monitoring

Taking monitoring to the next levelThe Cyborg

Data Monitoring

Glass House

Package

GatekeeperTraveller

Participant

Cyborg

Who’s next?

New experts and our peers decide what matters

People participate,

share and co-create

their future

Technology becomes part of

everything we do

The relationship with the market

changes

New experiences in product, service & packaging

The position in the value chain changes

Mobile gives access to everything, everywhere,

every time

Person(al)

Product

Channel

CompetitionPlace

People

Technology

So, did this scare you or inspire

So now that you understand Digital Disruption, how do you start the actual Transformation?

Stop hyping, start doing: Digital Transformation Modeling

Sold in over 30 countries

Create your own Digital Transformation vision and plan1

Create Digital Leadership2

Innovate in the right place(s)3

Build the Transformation Fleet4

Change the culture5Sold in over 30 countries

You’ll need to understand disruption its impact

You’ll need a strong vision on your

future

You’ll need a plan with real

actions, a Digital Agenda, a

roadmap for the future

Digital Transformation Modeling

Spot and understand the dynamics of

digital disruption

Analyse the impact on your industry and

business

Create a future vision and a transformation

strategy

Create a Digital Agenda that gets you

there.

It’s no longer about digital, it’s about business

Corporate (comm) Strategy

Digital Strategy

Company Strategy

Digital World

From ... ... to

The Business

Digital (at the sideline)

Digital in the core

From ... ... to

The BusinessDigital (at

the sideline)

The Business

... to

The BusinessDigital (at

the sideline)

Digital in the core

The Business

Digital in the core

From ...

“If you can't understand the new world of digital, fire yourself.

Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the

board of directors. If the board has a low digital IQ, the company

will have a low digital IQ”

George Colony CEO Forrester Research

So, where are you? How digital is your

company?

Digital Leadership

The ideal situation

CEOIdeally your CEO is the digital lead

CIO COO CbsOSalesMkt

This is Digital Leadership

The ideal situation

CEOIdeally your CEO is the digital lead

Unfortunately she/he is

probably not.

CIO COO CbsOSalesMkt

Is the CIO the digital lead?

Is the CMO the digital lead?

Digital Business Models

Are you locked-up in your vertical silo’s or can you create transversal business change?

ital T

The Classics The Converted The Digital The Ruptured

Traditional model Traditional channels

Traditional models Digital channels

New business models Digital channels Everything new

Incumbents (you) Challengers (them)

Different types of innovation

The Factory The Guesthouse The Garage

Incremental innovation Change projects Breakthrough innovation

Digital Transformation Fleet

?Are you the captain of a rigid

(sinking) ship

Are you the commander in chief of a fleet that changes the world?

(no, this is NOT Captain Iglo, it’s Edward Smith from the Titanic)

You’ll need balance

between your traditional

strengths and real innovations

Traditional revenue steams

new revenue steams

@jcaudron

1. The customer always decides

@jcaudron

2. All things you do must start from a superior experience

@jcaudron

3. From now on, you are an agile and flexible company

@jcaudron

4. You live in a world of uncertainty

@jcaudron

5. Offense or Defense?

@jcaudron

6. Don’t be afraid to cannibalize your own business

@jcaudron

7. Never, ever, disrespect new or small players

7 Key Take-Aways

@jcaudron

Disruption is real, deal with it!

Disruption

Modeling

Transformation

1. Disruption is happening anyway, often without your knowing…

@jcaudron

Disruption

Modeling

Transformation

2. There are methods to

understand the impact and plan

for the future

@jcaudron

Disruption

Modeling

Transformation3. You can take transformation in your own hands, but you will have to start NOW, in

order to stay in the drivers seat!

@jcaudron

4. You’ll need digital leadership throughout the entire organization

@jcaudron

5. You will need to embrace new culture, policies, rules, methodologies,

technology, processes, attitude, …

@jcaudron

6. You’re no longer too big to fail …

7. you make your own choices!

So, what does your future look like? Thank you!

jo.caudron@duvalunion.com @jcaudron 00 32 475 43 80 98

Digital Transformation Food & Retail

February 2016

jo.caudron@duvalunion.com / @jcaudron / +32 475 43 80 98