2013 03-05 competitive advantage of digital transformation
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Transcript of 2013 03-05 competitive advantage of digital transformation
Transform to the power of digital
COMPETITIVE ADVANTAGE OF
DIGITAL TRANSFORMATION
& SOCIAL CRM
Martin Hack
Head of Salesforce.com at Capgemini Consulting D/A/CH
Hannover, 5th March 2013
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Social Business and Digital Transformation – the mega trends are undoubted
Cu
sto
me
r Ex
pe
rie
nce
Digital Shopper Relevancy
Social Insights
Soci
al B
usi
ne
ss
All Channel Experience
Realtime Personalisation
Copyright © 2013 Capgemini Consulting. All rights reserved.
“…develop a new business, which is not only selling skis, but also selling services and dreams” Rossignol (Ski Equipment)
“We’re creating a world, where the car becomes a friend to its owner” Toyota
“You have to be totally connected with anyone who touches your brand”
Burberry
We’re going to change the way banking happens” Commonwealth Bank “Become more social, both in terms of
how we communicate internally and how we communicate with our customers”
O2
“Linear interaction […] is not longer valid” Virgin America
“The social enterprise will be the differentiator on how we interact with our customers, our
employees and our partners” Hewlett-Packard
“We need to interact with customers the ways that work best for them
Activision” (Video Games)
“You need a view on all the touch points to understand the customer” GE
Glo
bal
Co
llab
ora
tio
n
Machine2Machine communication
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Copyright © 2013 Capgemini Consulting. All rights reserved.
...but: is there a measurable impact on revenue, profit or shareholder value?
Capgemini Consulting and Boston MIT have teamed up to analyse why some companies successfully embrace Digital Transformation while others fail
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„Digital Transformation: A roadmap for Billion-Dollar Organisations“ is ranked among the top five best publications in the last 10 years.¹
ONE COOPERATION WITH
…OVER 450 INTERVIEWS WITH IT AND BUSINESS
EXECUTIVES
…OF MORE THAN 390 COMPANIES
…MANY OF THEM BILLION-DOLLAR ENTERPRISES
…THREE RESEARCH PHASES OVER MULTIPLE YEARS
Source: White Space – a leading institute for market research in the consulting sector, 2012
Copyright © 2013 Capgemini Consulting. All rights reserved.
We assess the Digital Maturity of organizations as a combination of two separate
but related dimensions: Digital Intensity and Transformation Management Intensity
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Digital Intensity: investment in technology-enabled initiatives to change the way a company operates ‒ customer engagements, internal operations, business models.
Transformation Management Intensity: creating the leadership capabilities necessary to drive digital transformation in the organization.
Location-based marketing
Digital Design
Connected Products
Mobile sales
Customer Service in Social Media
…
Digital Vision
Cross-silos coordination
New skills Cultural change
…
Copyright © 2013 Capgemini Consulting. All rights reserved.
The two dimensions spell out four different types of digital maturity defining the
alchemy of success in Digital Transformation: Style and substance
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Transformation Management Intensity
Dig
ital
Inte
nsi
ty
BEGINNERS
Beginners…
…carry out some experiments, immature digital vision and culture
FASHIONISTAS
Fashionistas …
… have advanced digital features in silos but no overarching vision and coordination
CONSERVATIVES Conservatives…
… have few advanced digital projects, coordinated but underdeveloped vision
DIGIRATI
Digirati…
...have strong vision and governance. Digital initiatives generating measurable benefits.
Copyright © 2013 Capgemini Consulting. All rights reserved.
We quantified the digital maturity of 391 companies and analyzed their financial
performance
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* Of the 391 companies in our sample, 184 were publicly traded
We analyzed financial data & interviewed top- executives from all the publicly-traded companies in our sample*
** Industry adjusted FY2011 financial performance for 184 publicly traded firms, controlling for geography
Transformation Management Intensity
Dig
ital
Inte
nsi
ty
Copyright © 2013 Capgemini Consulting. All rights reserved.
Digitally-mature companies are achieving statistically significantly better financial performance**
Companies that are mature on the digital intensity dimension are better at driving revenue through their existing assets
Digital Intensity and Revenue Generation
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Basket of indicators:
Revenue / Employee
Fixed Assets Turnover (Revenues / Property, Plant & Equipment)
+6% +9%
-4% -10%
Copyright © 2013 Capgemini Consulting. All rights reserved.
Companies that are mature in the transformation management intensity are more profitable
Transformation Management Intensity and Profitability
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Basket of indicators:
EBIT Margin
Net Profit Margin
-11% +26%
-24% +9%
Copyright © 2013 Capgemini Consulting. All rights reserved.
Companies that are mature in the transformation management intensity achieve higher market valuations
Transformation Management Intensity and Market Valuation
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Basket of indicators:
Tobin’s Q Ratio
Price / book ratio
-12% +12%
-7% +7%
Copyright © 2013 Capgemini Consulting. All rights reserved.
The digital transformation performance varies across industries – but in all
industries there are outperformers and followers
Copyright © 2013 Capgemini Consulting. All rights reserved.
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Banking
Consumer Packaged Goods
Insurance
Manufacturing
Pharmaceuticals
Retail
High Technology
Telecoms
Travel and hospitality
Utilities
Average industry maturity:
Telcos Fast to launch digital initiatives Need to integrate and align initiatives
across silos Retailers Strong in social and mobile Need to focus on cross-channel
consistency, worker enablement and analytics
Manufacturers See less opportunity / threat in digital
transformation Need a transformative digital vision and
the leadership drive to develop impetus
Insurers Strong digital governance
capabilities, but Regulatory worries and a risk-
averse culture
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…so simple? Still our benchmarks and studies show: There is a gap between perceived need for action and reality
Copyright © 2013 Capgemini Consulting. All rights reserved.
Social CRM – Hype or competitive advantage?
Example from our annual CRM Barometer: though digital and social CRM has high potential it is not fully leveraged up to now
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2/3 of the companies aim at creating a
uniform customer experience,
both online and offline…
... of which 55 % find it challenging to
harmonise the customer contact points
through all the channels
… of the companies see highest potential in
social CRM for winning additional customer
information…
... However 7 out of 10 companies
evaluate their present capabilities to be
insufficient for social media data analysis
For 8 out of 10 companies, the high
relevance of digital media and social media
leads to a relaunch of their CRM strategy…
… only 13 % of all the companies have
already integrated their social media
activities in their CRM strategy
…of the companies predict a further
increase in the relevance of social media…
... Only 8 % of the companies have
established practical business processes
for tapping the full potential of social CRM
Copyright © 2013 Capgemini Consulting. All rights reserved.
There are patterns regarding areas of improvement that are typically targeted
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Digital Transformation offers a huge variety of potentials
for top-line growth and operational excellence
Customer analytics and insights
Service adoption and information
Crowd sourcing of ideas
Innovation management platforms for employees and partners
Collaboration platforms (internal/partners)
E- and mobile learning/training
Marketing, sales and service automation
Additional revenues through digital channels and ad-hoc services
Customer and brand engagement
Customer service in social media
Copyright © 2013 Capgemini Consulting. All rights reserved.
Extended / smart products and services
Retention management through predictive / Next best action
EXA
MP
LE
The Customer Experience Transformation approach of Capgemini Consulting presents a structured and pragmatic way to create a strong Customer Experience
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Customer Experience Strategy
Customer Journeys
Customer Experience Transformation
Customer Measurement
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3
4
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Cu
stom
er Exp
erie
nce Tran
sform
ation
Customer Insight 1
Establish your desired perception
Analyze a sequential set of customer activities
Redesign processes & improve the experience
Optimize the Customer Experience
Get to know your customers
Copyright © 2013 Capgemini Consulting. All rights reserved.
Marketing, sales and service automation
DEEP
D
IVE
Additional revenues through digital channels and ad-hoc services
Customer journeys allow organizations to view themselves from the customer’s point of view. They identify:
All touch points & steps that a customer takes
The current offer of the company at each of these steps
Customer journeys represent the end-to-end activities that are needed to satisfy customer needs and resolve questions, all seen through the eyes of the consumer
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Which interaction points are considered as most crucial by customers?
This is where companies should impress their customers
Customer journeys put companies in a customer-centric frame of mind
Moments of truth
I want to know which product suits my needs
best
I know which product to buy
I want to be inspired with
product images
I want to compare the products and see reviews
I need to choose what is important for
me
I want to speak an advisor
Be inspired by the website
with product info
Check reviews, comparisons , wikipedia &
youtube
Choose my essential
requirements
Receive advice to help me
with my choice
J1: Product Discovery
! !
Moment of truth
Awareness Discover Purchase Receive Use Get helpCancel /Renew
Customer Journeys 3
Copyright © 2013 Capgemini Consulting. All rights reserved.
Examp
le
Customers expect the same experience across the different channels, so companies need to consider all of their channels when designing customer journeys
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Awareness Discover Purchase Receive Use Get help Cancel / Renew
Touch point
x
EXAMPLE: Cross-channel customer journey
x
x
x
x
x
x x
x
x
Wow moment Channel switch
J1 Product Discovery J3 Seamless Update J2 Service Excellence
Illustrative only
Web-Site
Social Networks
Webshop/ Retail
At home
Customer Service
Align and synchronize all channels & install “wow-moments”
Copyright © 2013 Capgemini Consulting. All rights reserved.
Customer Journeys 3
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As leader for digital transformation we work on extraction of the DNA of successful digital transformations – and how this can apply to you
Copyright © 2013 Capgemini Consulting. All rights reserved.
Customer Experience Operational Processes Business Model
Step 1: Assess where you are with our Digital Maturity Assessment
based on industry benchmarks
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1) DMA = Digital Maturity Assessment
Structured questionnaire to assess the company’s
‒ Transformation Management Intensity
‒ Digital Intensity
Contains benchmarks of leading global corporations
DMA1 Tool
www.capgemini-consulting.com/dma
Are you
behind?
Customer understanding
Customer experience
Process automation Decision making
HR processes
Top performers of the industry based on MIT-CC survey Your positioning based on CC maturity model
Are you
aligned on priorities?
Vision
Engagement
Governance Skills
Ways of working
Step 2: Design the your transformation path depending based on
your specific context (various examples deliver orientation)
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Source: Capgemini Consulting – Digital Services Strategy – Technology Transformation (c) 2011
Copyright © 2013 Capgemini Consulting. All rights reserved.
+6% +9%
-4% -10%
-11% +26%
-24% +9%
-12% +12%
-7% +7%
Start building a strong vision on digital:
how to leverage digital on our core assets?
For which objectives?
At what pace?
Which investment?
What are the key impacts ?
Then, start implementing new digital initiatives
In most cases, it will be necessary to
rationalize the firms’ digital landscape,
to build the right organization and governance towards digital,
before restart developing digital services.
Digital conservatives companies have already build strong vision focus on business areas and some digital services.
It will be possible to build on these solid roots to increase leverage of digital advantage at global scale
Rev
en
ue
P
rofi
tab
ility
V
alu
e
DIGITAL MATURITY MATTERS
IT MATTERS IN EVERY INDUSTRY
AND THE APPROACHES THAT DIGITALLY MATURE COMPANIES USE CAN BE
ADOPTED BY ANY COMPANY THAT HAS THE LEADERSHIP DRIVE TO DO SO
THE FUTURE IS ARRIVING QUICKLY.
TAKE ACTION NOW TO CREATE YOUR OWN DIGITAL ADVANTAGE
Copyright © 2012 MIT CDB and Capgemini Consulting
For details on our Thought Leadership, please visit:
www.capgemini-consulting.com/think
For details on our Digital Maturity Assessment, please visit:
www.capgemini-consulting.com/dma
Martin Hack
Head of Salesforce.com – D/A/CH
Capgemini Consulting
Karlstrasse 12, D-80333 Munich
Phone: +49 151 4025 1418
E-Mail: [email protected]