The New Digital Ecosystem - understanding digital today
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Transcript of The New Digital Ecosystem - understanding digital today
1
UNLOCK YOUR DIGITAL VALUE ‘THE ART OF THE POSSIBLE’
boozdigital.com
Amsterdam - 6 November 2013
Behdad Shahsavari
Booz & Company
Jeff Schumacher - Christopher Vollmer
boozdigital
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Digital innovations are rapidly reshaping our business environment
Connecting & Engaging
Integrating & Reimagining
Transforming Offline to
Online
Our survey shows that firms have entered the online world – however, the right
mindset and capabilities are missing to move a step beyond
66%
Social media marketing 75%
Online advertising 77%
Consumer insight
generation
Analytics for online
customer targeting 60%
E-commerce enabled
website/ Online sales 66%
60%
Online campaigns to
drive customer acquisition
Advertising on
media sites
62%
28% Open innovation
30% Advertising on
major retailer websites
Social commerce
Mobile commerce 45%
45%
Analytics for customer
development/ loyalty
32%
38%
Developing
engaging content
Paid online services 8%
Digital Marketing Capabilities Digital Commerce Capabilities
Source: Booz & Company Digital Commerce survey (% ranked as a top-5 capability)
3
As a result, firms face challenges in connecting to their customer and truly
transforming their business starting from Digital
4
• Most players see digital as incremental instead of
transformative – digital is not just an add-on
• As such, incremental steps will not be enough –
re-imagining in a broader context is key
• Customer engagement goes beyond online presence and
towards a new world of real-time transparency
• To become truly customer-centric, integrated customer
value development should drive all commercial activities
• Digital is a challenge to take head on, as in „now‟ –
all it takes is guts to go beyond the obvious…
Health Future Vision
Launch Video
Digital Is Not A Trend for Tomorrow .. It Is Already Here Today
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Today’s Agenda
6
• Our Perspective on Digital
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
Content, Commerce,
and Advertising
Converging
Transforming User Behavior, Experiences And Business Models
7
Mobile =
“First Screen”
The
New Digital
Ecosystem
2.
Human-centered
Design and the
User Experience
Devices Connecting
Everything
1.
3.
5.
4.
6.
Supply Chains
Go Digital
Personalize or Perish
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An Explosion In Mobile Devices & Connectivity
1. Mobile = “First Screen”
More connected devices than people
World population: 6.3 Billion 6.8 Billion 7.2 Billion 7.6 Billion
Connected devices: 0.5 Billion 12.5 Billion 25 Billion 50 Billion
Connected devices
per person: 0.08 1.84 3.47 6.58
2003 2010 2015 2020
• More than 6% of households own more than
15 connected devices today, and by the end
of 2014, there will be more than 10 bn. connected devices worldwide (IBM)
• Mobile broadband networks account for
nearly one quarter of the world’s mobile
cellular connections, approx. 1.6 billion 3G
and 4G subscriptions
• Approx. 580 operators in 186 countries are running networks including CDMA EV-DO,
HSPA, WiMAX or LTE technology
9
We Are All Spending More Time On Mobile Devices
1. Mobile = “First Screen”
Digital Media Usage To Exceed TV Time This Year
Average Time American Adults Spent With Different Media (Hours:minutes)
Source: Emarketer August 2013
10
Focusing Most On “Me” Time And Socializing – Growing Role Of Shopping Too
1. Mobile = “First Screen”
Source: AOL & BBDO 2013
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More Media Experiences Becoming Mobile First
Entertainment
Haunting Melissa/
Hooked Digital Media
News
Circa
Kids/Youth
Disney (Disney Jr.)
& MTV (Wait „Til Next Year)
1. Mobile = “First Screen”
Sports
MLB At Bat
FLEXIBLE DISPLAY –
Samsung/lg/sony/etc
GOOGLE GLASS –
a wearable computer
with a head-mounted
display (HMD)
ARMOUR39 by UNDER ARMOUR -
a monitoring system of athletes to
track progress such as the
amount of calories your burn, your
heart rate, and a new term called,
“Willpower.”
NIKE FUEL–
NikeFuel counts all the
activities of your athletic life.
Running, walking, basketball.
Nike+ devices measure your
moves and turn them into
NikeFuel. And since NikeFuel
is calculated the same way for
everyone, you can compare
and compete with anyone.
Connected Devices Growing Part of Our Daily Lives
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2. Devices connecting everything
Successful Applications of Technology Focusing
How They Connect Ecosystems & Users
Android OS Nike Fuel
Open source integration of
devices and strategic
partnerships create a
“living” data ecosystem lock
in consumers for life
Nike‟s digital platform is rooted
in Fuel points but is activated by
an ecosystem of enablers
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Apple OS
Tight integration of
devices and strategic
partnerships lock in
consumers for life
2. Devices connecting everything
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Product and Technology Design, Which Puts the User First,
Transforming Product Development
• What are its aesthetics?
• What are key points of interaction for
the user?
• What are the users expectations for
performance and functionality?
• What are core materials? How is the
product constructed?
• How fast can we prototype?
• What did we learn from usability
testing?
• What features will shock and awe?
• What day in the life activities can we
observe for design insight?
• What natural gestures can inspire
feature design? Component design?
3. Human centered design
Ad Spend Continues to Inch-Up … Powered by Digital Growth
15
Total Ad Spend, $B
1519
23
12
17
25
0
0
0
0
0
0
+14%
2015
53
2013
41 3
2
3 2
2011
32
3 2
Search
Display
Classifieds
Lead Gen
Mobile
Digital Ad Spend, $B
4. Converging content, commerce, and advertising
61 69 70
4153
16
32
3235
36
16
15
184
Radio
Digital
TV
2015
Directories
+4%
Outdoor
7 6
2013
176
7 8
2011
158
6 8
Source: Emarketer 2013
Select Delivery
Method
Self Select
Product
Select eCommerce
Portal
Define Payment
Preference
Input Product
Search Parameters
User/
Consumer
Traditional Transactional eCommerce Emerging Relationship Driven Ecosystem Model
Personalized
Preferences
Content/Branded
Experiences
eCommerce
Transactions
Service
Delivery
Account
Management
Customer Portal/
Ecosystem
User/
Consumer
>>>>>>
Digital Commerce Evolving From Transactions to Relationships
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4. Converging content, commerce, and advertising
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The Result: Lines Blurring Between Ads, Content, Commerce
Consumers and businesses are
demanding to engage directly with
manufacturer and supplier brands –
both via the brands owned content
and as co-creators of content where
feedback, innovations, and new
solutions can be captured in real-time
Co-Developed Content “Shoppable” Content
Consumers are seeking non-
traditional buying experiences which
combine branded content with basket
and transaction solutions to learn
about products, increase their basket,
and elicit purchases they may not
have made otherwise
The intersection of physical and
virtual spaces, through technologies
like kinect, will be the new wave of
business and customer engagement
Augmented Reality
4. Converging content, commerce, and advertising
Launch Video Launch Video Launch Video
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Amazon Ad Revenue, $M Twitter & Starbucks Delivery Agent & TV
835
610
420
+41%
2012 2011 2013
More Examples of Ad + Commerce Convergence
4. Converging content, commerce, and advertising
Commerce Innovation Continues To Expand
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Subscription C2C Sharing and Rentals Peer to Peer Lending
Fully Digital Sales Model OnDemand
4. Converging content, commerce, and advertising
Source: Techcrunch, Mashable, AdAge, NY Times Media Section
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User Experiences Becoming More Personalized
Personalized Content Selections
Users look for content that can be
curated based on their preferences,
social interactions, and behavior
Increasingly, media channels deliver
customized menus of content
customized based on stated consumer
preferences,
Examples: HuffingtonPost, Circa,
Pandora, Flipboard, Pulse, BuzzFeed,
iHeartRadio
Increasingly, users launch digital
experiences from a customized
interface
Bleacher Report grew from startup to
19MM unique users by offering a
personalized user experience,
including social data, rich profile
interactivity and gamification
Examples: Medium, Yahoo!/tumblr,
Dropbox, XBox, Smart TV
Personalized Interfaces
Users customize media, apps, sites to
deliver their desired functionality
Personalized alerts, offers, lists, badges,
suggestions and recommendations;
aggregation of content based on
behaviors and preferences
Amazon combines customer insights
with data architecture to drive
cross-sell and up-sell
Examples: Soundcloud, Spotify,
FourSquare, Netflix, Salesforce
Personalized Functionality
5. Personalize or perish
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Big Data Rapidly Expanding = More Sophisticated Analytics
The market is enormous … … And is expanding by the day
Big data market will grow at a
CAGR of 40% to $16.9B, 7x
faster than the overall comm &
tech market globally
1/3 of data center traffic will be cloud traffic created
from brands, retailers, and customers … creating the
potential to “snap” multiple clouds together across
brands, retailers, and agencies
Annual global IP traffic
has reached one
zettabyte, an increase of
540,000x from 2003
… enabling real-time and insight driven decision making for ecosystems and consumers
5. Personalize or perish
Linear Supply Chains Are Now Digital Supply Networks
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6. Supply chains go digital
User/
Consumer
Logistics
Manufacturer (OEM)
Supplier
Distributor
/Reseller
Retailer
Manufacturer
User/Consumer
Supply chain
3D Printing = Fewer, Faster Prototyping
Robotics = Faster, More Automated Assembly Advanced Analytics = Better Network Optimization
RFID = Real-Time Visibility into Stock
Examples of How Supply Chains Are Digitizing
23
6. Supply chains go digital
Today’s Agenda
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• Our Perspective on DigitalW
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
What We Do
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Booz Digital is a full-service team of
strategists, designers and technologists
who help companies turn ideas into
transformational business.
We are leaders in digital strategy,
R&D, and operations, helping clients to
design & realize new platforms & to
boost performance of existing assets.
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Strategy, product management,
human centered design, UX / UI
design & solution architecture
under one roof
All of our partners have practical,
real-world experience bringing
products to market with P&L
accountability
Innovative
Digital Tools
Practical
Operating Experience
Multi-
disciplinary
Rapid Product
Development
We apply progressive tools to
facilitate problem solving and
solution design
We are a Team of Digital Operators and Experts
An agile design and development
approach ensure a rapid sprint to
generation 1 and a test & learn
approach which keeps functionality
fresh and ins sync with customer
needs
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What Makes Us Distinctive?
Strategy
First
Always centered on
why & in search of
pragmatic solutions
vs. shiny objects
Agility with
Client Needs
Mid-stream pivots are
inevitable and required
Operator
Mindset
Understand the
complexity, not just the
opportunity. Bias to
push in the interests of
client success
Solution
Architecture
Art of the possible
influences design and
ensures solutions are
feasible, efficient, and
scalable
Breadth &
Depth of
Applied
Expertise
Bring together leading
industry & functional
experts (adherence,
empathetic design,
behavior modification,
human centered design,
solution architecture)
Guiding Principles We Live By
28
Design for
3 years out,
build for today
1 2 3
4 5 6
Apply agile in its
purest form – fusion
of strategy, design,
tech
Get feedback
early & often
from end users
Produce a lot to learn
a lot (i.e., divergence
and convergence)
Seek commercial
engines, not point
solutions
Technology as an
enabler to realize
human-centered user
experiences
An Agile Approach Bridges Strategy and Execution
29
QA
Coding/ development
AV production
Prototype development
Comps
Site/ product
map Key wireframes & use flows
Interface design
Requirements
brief
Product jam
sessions
User experience
design
User experience inspiration
Information architecture
Product brief
Business model
Ecosystem
Technology trends
Competitive offerings
Consumer segments & needs
Vision
Divergent
concepts
Agile
strategy to
execution
Features &benefits
Prototype
design
Style guide
Enabling teams to…
Agile
• Stimulates disruptive ideation
• Provides speed
• Forces discipline
• Pivot easily
• Manage for uncertainty
• Create disruptive capabilities
Product purpose
&character
Proprietary Tools: Using Innovative Tools Helps Create Disruptive Outcomes
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• Disruptive additive
manufacturing enables fast
and easy prototyping
• Achieves geometries that
conventional machining
could not achieve
•
• Oblong g-Speak enables
virtual/spatial data
visualization capabilities
• Gesture recognition
interfaces enable natural
control of data
• Oblong Mezzanine system
provides multidisciplinary
collaboration using 6 state
of the art LED screens
• Accommodates multiple
devices and remote feeds
• Web sites encapsulate team
working content and enable
seamless offline review from
any location
• Facilitates non-linear
collaboration and review
Booz Digital‟s working environments include the latest in data visualization capabilities, immersive collaboration
rooms, discussion platforms and rapid prototyping toolsets.
Engagement Platforms
Making Tools
Immersion Rooms
Data Visualization
Launch Video
Today’s Agenda
31
• Our Perspective on Digital
• What We Do / How We Think @ Booz Digital
• How We Are Helping Clients Drive Impact
Recent Examples of Our Client Impact
32
Life-sciences Reimagined diabetes patient
support and care end-to-end,
including patient and provider
solutions
Health & wellness Reimagined how employees
understand their benefits and
simplified the world of health &
wellness
High tech e-commerce Reimagined future state e-
commerce experience to drive
greater conversion, loyalty and
customer engagement
Pet specialty retail Future state visioning of digital
trends and impacts, informing
digital growth strategy and
roadmap
Example 1: Digitized Life-Sciences Solution
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Booz Digital recently applied agile methods to helped the metabolic unit of a life sciences company ideate and design
an innovative digital eco-system for chronic disease patients and their PCPs
Understand persona
pain points Clear functional
stories to support
Bring the patient / user experience to life
• Improve engagement of chronic
disease patients by helping them to
better manage their disease end-to-
end
• Foster connectivity (literally and
figuratively) with patients & physicians
to help solve pain points
• Create meaningful differentiation in
the eyes of physicians and payors to
shift share to the brand
• Achieve the design and prototype in
record time
The challenge
• Vision for an open digital eco-
system, including training,
supportive information services,
monitoring / tracking and
gamification of patient progress
• Experience design rooted in
behavioral change science
• Prototyped digital channels for
physicians & patients
• Solution architecture, incl. build v.
buy v. partner for solution stack
• Launch strategy involving
partnerships and measurement
approach with integrated hospital
systems & their physicians
What we did: In only 4
months elapsed time…
Example 2: Omnichannel Health & Wellness Experiences
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Booz Digital recently applied agile methods to enable end-to-end strategy,
product design and prototyping of a wellness solution
Dramatically increase employee
awareness of benefits
engagement in health &
wellness activities, by:
• Bringing the principles of great
consumer digital design to the
healthcare (e.g., choice,
personalization, intuitive user
experience)
• Use agile approach to rapidly define
and prototype the solution to
increase speed to market
Personas via ethnography Digital experience
Design & prototyping In only 3 months…
• Business strategy
• End-to-end product design
• Functional prototype with end user
testing
• B2B customers identified for alpha
/beta pilots
• Organization mobilized around
compelling vision
• Clear roadmap to execute
• Define / refine new agile
methodology to apply to future
products
The challenge What we did:
In only 3 months…
• Re-imagined vision of future e-store
experience, including new value
propositions to drive acquisition and
loyalty
• Quantitative understanding of
consumer pain points
• Competitive differentiation assessment
• Product development of each
component of future store DNA
• Functional prototype, including fully
redesigned UX across journey
• Opportunity sizing
• Future state solution architecture and
roadmap
• Operating model requirements
• Drive significant lift in direct-to-
consumer sales, particularly in
under-penetrated, high priority
categories
• Develop a visionary prototype
grounded in addressing most
critical consumer needs and
pain points to generate
alignment and excitement
internally
• Utilize agile approach to rapidly
iterate design
The challenge What we did:
Example 3: High Tech Customer Experience & Commerce
35
Booz Digital recently applied agile methods to reimagine an ecommerce experience
that will drive a 15% life in revenue
Concept & prototype development
Understand persona pain points &
Define the DNA for a Future Store
Example 4: Future Visioning and Platform Development
• Conducted future visioning session to
explore a range of certain and
uncertain trends that may exist in 10
years
• Developed digital growth strategy,
roadmap and execution plan
• Initiatives span merchandising, new
digital private brands, a remodel plan
for the in-store experience, changes to
the associate model and omni-channel
capabilities
• Currently partnered to build customer
analytics capabilities and develop
digital private brands
STEEP+E trend explorations Capability requirements
Digital products &
platform strategy
• Client achieving healthy organic
and inorganic growth, however
digital beginning to drive disruption
in client‟s sector
• Define customer of the future and
determine client‟s digital strategy to
increase consumer engagement
and share of wallet in-store and
online
The challenge What we did:
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