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Digital Transformation in Food and Retail

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Digital Transformation Food & Retail February 2016 [email protected] / @jcaudron / +32 475 43 80 98
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Page 1: Digital Transformation in Food and Retail

Digital Transformation Food & Retail

February 2016

[email protected] / @jcaudron / +32 475 43 80 98

Page 2: Digital Transformation in Food and Retail

@jcaudron

A story about Transformation

Sold in 35 countries!

Page 3: Digital Transformation in Food and Retail

@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

Page 4: Digital Transformation in Food and Retail

@jcaudron

Page 5: Digital Transformation in Food and Retail

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?

Page 6: Digital Transformation in Food and Retail

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

Page 7: Digital Transformation in Food and Retail

who is your…

Page 8: Digital Transformation in Food and Retail

Where did the money go?

Page 9: Digital Transformation in Food and Retail

@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 …

Page 10: Digital Transformation in Food and Retail

@jcaudron

What can we learn?

Page 11: Digital Transformation in Food and Retail

Lack of understanding

creates fear

Page 12: Digital Transformation in Food and Retail

Putting things in a frame creates insights

Page 13: Digital Transformation in Food and Retail

• What can we learn?

Page 14: Digital Transformation in Food and Retail

Impact on Food & Retail?

Page 15: Digital Transformation in Food and Retail

Consumer

Retail Media

(Food) Brands

Page 16: Digital Transformation in Food and Retail

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

Page 17: Digital Transformation in Food and Retail

The relationship is changing.The Glass House

Transparency Accountability

Proximity Responsiveness

Bi-directional Humanization Authenticity

Page 18: Digital Transformation in Food and Retail

The Glass House

Transparency Accountability

Proximity Responsiveness

Bi-directional Humanization Authenticity

Page 19: Digital Transformation in Food and Retail

The Glass House

Transparency Accountability

Proximity Responsiveness

Bi-directional Humanization Authenticity

Page 20: Digital Transformation in Food and Retail

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

Page 21: Digital Transformation in Food and Retail

UnbundlingThe Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Angry Birds Twitter, Facebook

Newspaper Website

CNN online / app

Blogs

Vertical sites and specialties portals

Yelo App Apple TV

Spotify

Sporza.be

LinkedIn, Monster, ...

eBayPinterest, blogs

Weather Pro (iPhone)

Traffic: Waze

YouTube

Twitter, Facebook

RSS

Breaking news

In-depth analysis

Services

WeatherClassifieds

Jobs

Sports

TVFun

Specials

Discovery

Culture

Trends & Lifestyle

Page 22: Digital Transformation in Food and Retail

The Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Page 23: Digital Transformation in Food and Retail

Unbundling Procter & GambleThe Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Page 24: Digital Transformation in Food and Retail

The Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

The food industry is changing, so is delivery

Speed

Page 25: Digital Transformation in Food and Retail

The Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Page 26: Digital Transformation in Food and Retail

The Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Page 27: Digital Transformation in Food and Retail

New business modelsThe Package

Monolithic vs. atomic APPification

Long Tail Personalized Experience

Speed Price

(Self-)service Scalability

Page 28: Digital Transformation in Food and Retail

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.

Page 29: Digital Transformation in Food and Retail

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

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Page 30: Digital Transformation in Food and Retail

Bypassing

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Page 31: Digital Transformation in Food and Retail

Bypassing

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Page 32: Digital Transformation in Food and Retail

Bypassing

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Page 33: Digital Transformation in Food and Retail

Buy directly from the farmer

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Page 34: Digital Transformation in Food and Retail

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.

Page 35: Digital Transformation in Food and Retail

The traditional gatekeeper

Crowd-sourced opinions

Peers as news distributors

Automatic algorithms

New “experts” +New gatekeepers Recommendations

“Good is good enough”

Ambassadorship

The Gatekeeper

Page 36: Digital Transformation in Food and Retail

New gatekeepers

New gatekeepers Recommendations

“Good is good enough”

Ambassadorship

The Gatekeeper

Page 37: Digital Transformation in Food and Retail

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

New gatekeepers Recommendations

“Good is good enough”

Ambassadorship

The Gatekeeper

Page 38: Digital Transformation in Food and Retail

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…

Page 39: Digital Transformation in Food and Retail

Oops…

Page 40: Digital Transformation in Food and Retail

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

Page 41: Digital Transformation in Food and Retail

The Traveller

PLACE OnlinePoS Hybrid Omnichannel

(digital entering PoS)

(all functions go digital too)

Place Utility

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

Page 42: Digital Transformation in Food and Retail

Which is yours?The Traveller

Place Utility

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

Page 43: Digital Transformation in Food and Retail

Place: what if HalloFresh goes physical?The Traveller

Place Utility

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

Page 44: Digital Transformation in Food and Retail

AirBnB for retailThe Traveller

thestorefront.com

Place Utility

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

Page 45: Digital Transformation in Food and Retail

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

Empowered self Instant gratification

New way of working Contextual awareness

Real-time

Page 46: Digital Transformation in Food and Retail

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.

Page 47: Digital Transformation in Food and Retail

CollaborationThe Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Page 48: Digital Transformation in Food and Retail

Community

Local brewers unite through a community platform

The Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Page 49: Digital Transformation in Food and Retail

Power of the crowdThe Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Page 50: Digital Transformation in Food and Retail

Power of the crowd

flex.amazon.com

The Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Page 51: Digital Transformation in Food and Retail

Sharing economyFrom scarcity to abundance

The Participant

Community Gamification Collaboration

The power of the crowd Sharing economy

Page 52: Digital Transformation in Food and Retail

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.

Page 53: Digital Transformation in Food and Retail

Internet of ThingsThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Page 54: Digital Transformation in Food and Retail

Amazon DashThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Page 55: Digital Transformation in Food and Retail

Internet of ThingsThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Smart water bottle with mobile app & reminders

Page 56: Digital Transformation in Food and Retail

3D printed foodThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Amazon files patent for 3D printing delivery trucks

Page 57: Digital Transformation in Food and Retail

Big dataThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Page 58: Digital Transformation in Food and Retail

Taking monitoring to the next levelThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Page 59: Digital Transformation in Food and Retail

Taking monitoring to the next levelThe Cyborg

Internet of Things Wearables

Quantified self Robotics

Data Monitoring

Page 60: Digital Transformation in Food and Retail

Glass House

Package

Frog

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

Page 61: Digital Transformation in Food and Retail

So, did this scare you or inspire

you?

Page 62: Digital Transformation in Food and Retail

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

Page 63: Digital Transformation in Food and Retail

Stop hyping, start doing: Digital Transformation Modeling

Sold in over 30 countries

Page 64: Digital Transformation in Food and Retail

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

Page 65: Digital Transformation in Food and Retail

You’ll need to understand disruption its impact

Page 66: Digital Transformation in Food and Retail

You’ll need a strong vision on your

future

Page 67: Digital Transformation in Food and Retail

You’ll need a plan with real

actions, a Digital Agenda, a

roadmap for the future

Page 68: Digital Transformation in Food and Retail

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.

Page 69: Digital Transformation in Food and Retail

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

Corporate (comm) Strategy

Digital Strategy

Company Strategy

Digital World

Page 70: Digital Transformation in Food and Retail

From ... ... to

The Business

Digital (at the sideline)

Digital in the core

Page 71: Digital Transformation in Food and Retail

From ... ... to

The BusinessDigital (at

the sideline)

The Business

Digital (at the sideline)

Page 72: Digital Transformation in Food and Retail

... to

The BusinessDigital (at

the sideline)

Digital in the core

The Business

Digital (at the sideline)

Digital in the core

Digital in the core

Digital in the core

From ...

Page 73: Digital Transformation in Food and Retail

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

Page 74: Digital Transformation in Food and Retail

“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

Page 75: Digital Transformation in Food and Retail

The ideal situation

CEOIdeally your CEO is the digital lead

CIO COO CbsOSalesMkt

Page 76: Digital Transformation in Food and Retail

This is Digital Leadership

Page 77: Digital Transformation in Food and Retail

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?

Page 78: Digital Transformation in Food and Retail

Sale

s

Mar

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Com

mun

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Serv

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& Su

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HR

(Dig

ital)

Tech

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PR &

Ext

erna

l Com

mun

.

R&D

& E

nter

prise

2.0

Digital Business Models

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

Sale

s

Mar

ketin

g &

Com

mun

icat

ion

Serv

ice

& Su

ppor

t

HR

Dig

ital T

echn

olog

y

PR &

Ext

erna

l Com

mun

.

R&D

& E

nter

prise

2.0

Page 79: Digital Transformation in Food and Retail

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

Page 80: Digital Transformation in Food and Retail

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)

Page 81: Digital Transformation in Food and Retail

Different types of innovation

The Factory The Guesthouse The Garage

Incremental innovation Change projects Breakthrough innovation

Page 82: Digital Transformation in Food and Retail

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

Page 83: Digital Transformation in Food and Retail

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)

Page 84: Digital Transformation in Food and Retail

You’ll need balance

between your traditional

strengths and real innovations

Traditional revenue steams

new revenue steams

Page 85: Digital Transformation in Food and Retail

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

Page 86: Digital Transformation in Food and Retail

@jcaudron

1. The customer always decides

Page 87: Digital Transformation in Food and Retail

@jcaudron

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

Page 88: Digital Transformation in Food and Retail

@jcaudron

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

Page 89: Digital Transformation in Food and Retail

@jcaudron

4. You live in a world of uncertainty

Page 90: Digital Transformation in Food and Retail

@jcaudron

5. Offense or Defense?

Page 91: Digital Transformation in Food and Retail

@jcaudron

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

Page 92: Digital Transformation in Food and Retail

@jcaudron

7. Never, ever, disrespect new or small players

Page 93: Digital Transformation in Food and Retail

7 Key Take-Aways

Page 94: Digital Transformation in Food and Retail

@jcaudron

Disruption is real, deal with it!

Disruption

Modeling

Transformation

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

Page 95: Digital Transformation in Food and Retail

@jcaudron

Disruption is real, deal with it!

Disruption

Modeling

Transformation

2. There are methods to

understand the impact and plan

for the future

Page 96: Digital Transformation in Food and Retail

@jcaudron

Disruption is real, deal with it!

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!

Page 97: Digital Transformation in Food and Retail

@jcaudron

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

Page 98: Digital Transformation in Food and Retail

@jcaudron

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

technology, processes, attitude, …

Page 99: Digital Transformation in Food and Retail

@jcaudron

6. You’re no longer too big to fail …

Page 100: Digital Transformation in Food and Retail

7. you make your own choices!

Page 101: Digital Transformation in Food and Retail

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

[email protected] @jcaudron 00 32 475 43 80 98

Page 102: Digital Transformation in Food and Retail

Digital Transformation Food & Retail

February 2016

[email protected] / @jcaudron / +32 475 43 80 98


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