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Brilliant NoiseApril 2014
Leading the digital business revolution
Making Leaders Successful Every Day
Leading The Digital Business Revolution Martin Gill, VP & Principal Analyst April 24th, 2014
@martinjohngill
We face a wave of innovation.
Some brands are born digital.
Some achieve digital mastery.
While others have had digital thrust upon them.
What barriers do you have to overcome?
Experience is the only differentiator. Image source: http://www.techypod.com/2012/01/nike-fuel-band-for-fitness-enthusiast.html
74%
34%
15%
But you’re stuck behind walls.
Image source: http://www.deviantart.com/art/Geek-69422008
To the rest of your organization, “digital is something he does”.
Today’s structures are no longer fit for purpose.
Digital maturity has multiple dimensions.
© 2013 Forrester Research, Inc. Reproduction Prohibited 20
Digital Maturity has four dimensions
Repair Elevate Optimize Differentiate
Culture
Organization
Technology
Measurement
© 2013 Forrester Research, Inc. Reproduction Prohibited 21
0 20% 40% 60% 80% 100% 120%
Source: Digital Maturity Survey 2013
Digital leaders are hard to find Repair Elevate Optimize Differentiate
Digital Maturity
© 2013 Forrester Research, Inc. Reproduction Prohibited 22
Source: Digital Maturity Survey 2013
Digital Maturity varies by sector Elevate Optimize
Financial Services
Technology
Media & Communications
Retail & Wholesale
0 20% 40% 60% 80% 100% 120%
Repair Differentiate
© 2013 Forrester Research, Inc. Reproduction Prohibited 23
Source: Digital Maturity Survey 2013
Digital Maturity delivers results
0% 10% 20% 30% 40% 50% 60% 70%
No impact
We have not implemented a multi-touchpoint digital strategy
Increased operating costs
Increased employee morale
Increased offline sales
Increased call center volume
Decreased operating costs
Satisfaction or similar metrics
Increased profitability
Increased online sales
What impact has the implementation of a multi-touchpoint digital strategy had on your company?
Differentiate Repair
Master both sides of digital
How do you lead the digital revolution?
Start with a digital vision.
© 2013 Forrester Research, Inc. Reproduction Prohibited 27
You need to do 2 things
Create the conditions for transformation
Master the three essential digital skills
#1
#2
#1: Create the conditions for transformation
© 2013 Forrester Research, Inc. Reproduction Prohibited 29
Create conditions for transformation
Consolidate digital strategy under a single customer-focused leader A
Nespresso’s digital team provides core platforms and processes.
© 2013 Forrester Research, Inc. Reproduction Prohibited 31
Create conditions for transformation
Consolidate digital strategy under a single customer-focused leader
Organize around the customer, not the function
A
B
Westpac organizes around the customer.
© 2013 Forrester Research, Inc. Reproduction Prohibited 33
Create conditions for transformation
Consolidate digital strategy under a single customer-focused leader
Organize around the customer, not the function
A
B
Embed digital skills and competencies into the business C
Nestle educates and trains its business.
© 2013 Forrester Research, Inc. Reproduction Prohibited 35
Create conditions for transformation
Consolidate digital strategy under a single customer-focused leader
Organize around the customer, not the function
A
B
Embed digital skills and competencies into the business
Embrace cross-functional, agile ways of working
C
D
Fidor leverages social technology to engage customers in product development.
© 2013 Forrester Research, Inc. Reproduction Prohibited 37
The digital transformation framework
Digital Vision Consolidate digital strategy
under a single customer-focused leader
Organize around the customer, not the function
Embed digital skills and competencies into the business
Embrace cross-functional, agile ways of working
© 2013 Forrester Research, Inc. Reproduction Prohibited 38
You need to do 2 things
Create the conditions for transformation
Master the three essential digital skills
#1
#2
© 2013 Forrester Research, Inc. Reproduction Prohibited 39
Master the three essential digital skills
Strategic
Transformational
Operational
Set and communicate digital strategy
Manage digital change
Operate and optimize digital touchpoints
© 2013 Forrester Research, Inc. Reproduction Prohibited 40
Where are your digital strengths?
Operational
Transformational (eBusiness lead)
Transformational (IT lead)
Strategic eB
usin
ess
mat
urity
IT maturity
Building your transformation plan.
Start by assessing what you’ve got.
Consolidate digital functions to bust down the silos.
Embed digital throughout your business.
Prepare to get a bloody nose as you bust down some walls.
Thank you Martin Gill +44 (0)20.7323.7734 [email protected] @martinjohngill
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@brilliantnoisebrilliantnoise.com
#bnwebinar
Brilliant NoiseApril 2014
Leading the digital business revolution
Antony MayfieldCEOBrilliant Noise
2
Martin Gill VP & Principal AnalystForrester
Alun WilliamsDigital DirectorTUI
3
Martin Gill VP & Principal AnalystForrester
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@brilliantnoisebrilliantnoise.com
#bnwebinar
Brilliant NoiseApril 2014
Digital leadership
“So, what I tell investors is, we’ve nearly tripled the business in seven years….
“This is the most connected culture that you will ever find, I believe, in any industry in the world.
“…You know, I had a cultural anthropologist come in and study the culture of the company to tell us what we had created. I wanted to capture it for the next generation so they could understand how we did this and how we work.”
Angela Ahrendts on digital culture
Peter Drucker
Knowledge Worker
Peter Drucker
ManagingOneself
Peter Drucker
“Culture eats strategy for breakfast.”
Attributed to Peter Drucker
9
“Culture eats technology for breakfast.”
Attributed to Peter Drucker turning in his grave.
10
Imposing technology on organisations…
11
Now digital change comes in all directions…
12
Customer
Competitor Sta!
Channels
Company
Bolt-ons are not enough.
13
Digital transformation is cultural change on a grand scale.
14
Digital transformation requires personal reinvention from leaders.
15
How to create a digital leadership mindset.
16
- Leading yourselfCreating a digital mindset, threshold knowledge, creating an example of change.
- Leading others Spreading mindset, collaboration.
- Leading organisationsClear vision and communication, creating a culture that is flexible and open to change.
Digital leaders
17
We explored leading yourself and leading others for Nokia’s Smarter Everyday campaign.
18
Design Your Day
How to use design thinking and neuroscience to make every day work better
Mobile Mastery
How to make technology work for you, not the other way around
Teams That Flow
How high performing teams use technology and organise themselves
Growing Agility
How individuals and organisations become more flexible and thrive in a volatile world
Digital mindset journey
19
Personal Development
Agile innovation
Digital customers Trends
AttentionNetworksWeb history & cultureExponential growth Social media
DataficationInternet of thingsPrivacy and publicness Digital commerce Media and advertising
Personal development: Threshold concepts for digital leadership
Agile innovation. Move fast and break things.
“The Goal Is to Become HBO Faster Than HBO Can Become Us”Ted Sarandos, Chief Content O!cer, Netflix
Digital customers
Model first published Harvard Business Review
Digital trends
Where to start digital transformation?
25
- Lead. Vision, principles, setting tone & pace.
- Pilot.Permission to be radical. Exploring, learning, experiencing risk, attitudes to failure.
- Scale. Systems, continuous improvement, storytelling.
Three vital elements of digital transformation
26
“It is the individual, operating at the peak of his or her powers, who will revive our organizations, by reinventing both self and them.”Warren Bennis, Leadership studies pioneer and professor at USC.
Digital Transformation – TUI TravelAlun Williams – Digital Director – TUI Europe
29
Digital Transformation – TUI Travel
• Digital Strategy• Technology• Leadership• Training & Development• Incubation v’s Proliferation• Power of the Network• CX at the Top Table• Analytics as the Heartbeat• Culture & Environment
Antony MayfieldCEOBrilliant Noise
30
Martin Gill Principal AnalystForrester
Alun WilliamsDigital DirectorTUI
Discussion.