The New Digital Ecosystem - understanding digital today

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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

description

A little peek into the current digital ecosystem and explanation of how Booz Digital can create value in your organization

Transcript of The New Digital Ecosystem - understanding digital today

Page 1: The New Digital Ecosystem - understanding digital today

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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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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)

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As a result, firms face challenges in connecting to their customer and truly

transforming their business starting from Digital

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• 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

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Digital Is Not A Trend for Tomorrow .. It Is Already Here Today

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Today’s Agenda

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• Our Perspective on Digital

• What We Do / How We Think @ Booz Digital

• How We Are Helping Clients Drive Impact

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Content, Commerce,

and Advertising

Converging

Transforming User Behavior, Experiences And Business Models

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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

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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

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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

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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

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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

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Ad Spend Continues to Inch-Up … Powered by Digital Growth

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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

Email

Digital Ad Spend, $B

4. Converging content, commerce, and advertising

61 69 70

4153

16

32

3235

36

16

15

184

Print

Radio

Digital

TV

2015

Directories

+4%

Outdoor

7 6

2013

176

7 8

2011

158

6 8

Source: Emarketer 2013

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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

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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

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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

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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

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6. Supply chains go digital

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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

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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)

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Guiding Principles We Live By

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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

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An Agile Approach Bridges Strategy and Execution

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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

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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

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Today’s Agenda

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• Our Perspective on Digital

• What We Do / How We Think @ Booz Digital

• How We Are Helping Clients Drive Impact

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Recent Examples of Our Client Impact

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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

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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…

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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:

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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

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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

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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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