TAI 2017
Developing the digital offer
Michael Appleby
Director - Altair
26th April 2017
Introduction What this session will cover
1 – Setting the context for digital change
2 – Future Gazing, Future Shaping – how the sector is transforming
3 – Developing the digital offer
Setting the context for digital change
Analogue
Digital
Internet
Social
Mobile and
4G
Broadband
and wifi
Maturists Baby boomers Gen X Gen Y Gen Z
What’s next?
Smart everything
Artificial intelligence
This year – digital natives will be
the majority customer segment
Setting the context The speed of change
Same
needs New options
New ways of
doing
business
In many areas customer needs have remained consistent, but technology has created new possibilities and is shifting the way individuals behave.
This is leading to organisations needing to adopt different operating models.
Banking Banking with
support when
needed
Online, at any
location at any
time
Closed branches,
staff working 24/7,
online chat etc.
Grocery
shopping I want food
Online,
delivered at a
time to suit me
Online stores,
distribution
arrangements
Setting the context Technology and changing behaviours
Partly in response to changes in technology, but also due to experiences in other sectors, the expectations of customers on the relationship they
have with a service provider is dramatically changing.
On demand services
Simplicity and ease of
access
Great customer service Personal experiences
Setting the context Changing customer demands
Setting the context Why should you change?
“It is not the strongest species that
survive nor the most intelligent, but the
ones who are most responsive to
change”
Charles Darwin
Setting the context Why should you change?
In 1975 Steve Sasson – an
employee at Kodak –
invented the first digital
camera but was told to
‘shelve the idea’ by his
managers’.
Setting the context Scale of digital change
Revolution Evolution Stagnation
Future Gazing, Future Shaping - How the sector is transforming
Future Gazing, Future Shaping Overview
Altair, working in partnership with 3C, launched a sector-wide
research project in August 2016.
Surveyed over 70 providers, interviewed 20 Executives and
carried out desk top research.
From this, developed a series of three reports entitled ‘future
gazing: future shaping’ to address three main questions:
1. What do people see as the vision for how a housing provider will
operate in 2025?
2. How are organisations approaching transformation?
3. What can be learnt from others activities (both in and out of the
sector)?
Intended to stimulate discussion and debate on the
possibilities for the future.
Future Gazing, Future Shaping What will the sector look like in 2025?
Competition for customers will
be the norm
Diverse product range catering
for niche customer markets More commercial business
models Agile working
De-regulation allowing new
entrants into the sector
Digitalisation and the ‘internet
of things’
Digital conservatives
Tend to favour prudence over innovation and are typically sceptical of the value of new
digital trends
Digital beginner
Have done very little to digitalise services but are investigating their options
Digital fashionista
Have implemented or experimented with digital applications. Some of these initiatives
may create value, but many do not
Digirati
Understand how to drive value with digital transformation and have invested in & have
carefully coordinated our digital initiatives
Other
Future Gazing, Future Shaping How does the sector see itself now?
How are organisations transforming?
Processes
69%
Digitalisation
66%
Culture
61%
Customers
58%
What are the main drivers for
transformation?
Increasing efficiency – 61%
Improving customer experience – 53%
Delivering the corporate strategy – 34%
Future Gazing, Future Shaping How is the sector transforming?
There is a significant “push” toward digitalisation amongst our survey respondents’ organisations; with over 85% focussing on looking at ways of working (such as flexible, mobile and home working) and developing customer access channels.
Back office processes is an area that appears to be seen as less of a priority in the sector despite the significant potential for efficiencies to be delivered.
Potential skills gap. half of organisations stated that they don’t have the skills in-house to deliver their planned transformation
Future Gazing What’s happening now?
What are organisations prioritising for
digitalisation?
Future Gazing, Future Shaping Who is the sector learning from?
Respondents widely recognised that it is
important to look beyond housing in the
search of innovation applicable to their
business.
The retail, banking and online market place
industries were cited as key sectors that
housing organisations can learn and take
inspiration from.
Future of housing Changing operating models
Traditional
Reception
Traditional housing
officer
Specialist
Demand
Co
mp
lexity
The future?
Contact centre
Digital on-demand
Local and mobile staff
(Remote) Specialists
Demand
Co
mp
lexity
Future Gazing, Future Shaping Interesting innovations - Housing sector
Drones to support
asset services Smart Homes and the
Internet of Things
Virtual reality
Wearable technology
Agile and flexible
working
What are others doing now to transform the way they operate?
Data, data and more
data
Future Gazing, Future Shaping Interesting innovations – Other sectors
Developing artificial intelligence
Virtual contact centres
Combines customer data and wearable
technology to provide unique customer
experiences
Gamification of services
A customer focused digital platform
Developing the digital offer
Target Operating Model
Strategy
Cu
sto
me
rs
Pro
ce
sses
Org
an
isa
tion d
esig
n
Te
ch
no
log
y
Pe
op
le a
nd
cu
lture
Not only who your
customers (internal
or external) are, but
your relationship
with them and how
they access
services
Right people, with
the right skills in
the right
environment to
drive performance
Lean and efficient,
designed to meet the
needs of your
customers
Clarity on functions,
locations and flexible to
meet changing demands
Robust and designed to
support the delivery of all
other elements
Clarity in vision,
value proposition
and clear and
measurable targets
Developing the digital offer It’s not just about technology!
Developing the digital offer The golden rules
Rule 1 Lead from the top
Rule 2 Benchmark – Quantify your current position
Rule 3 Don’t recreate the wheel – Learn from others who
have been through it
Rule 4 Create the digital vision – And share it to create a
common goal
Rule 5 Return on investment and prioritise – Consider return
when prioritising projects
Rule 6 Digital by choice – Customers will use digital if its
quicker and easier
Rule 7 Automate – Automate where at all possible
Rule 8 Smartphone first – Design for interaction on
smartphones
Rule 9 Digital assist – Redirect staff to assist customers who
need help
Rule 10 Incentivise and motivate – Consider carrots and sticks
to achieve shift
Rule 11 Analytics – Measure which channels are being used
Rule 12 Data is king – Your data much be accurate, available
and secure
Rule 13 Cultural transformation – Involve staff and celebrate
success
Good luck!
Michael Appleby - Director
Altair Ltd
07545 314 749
Property People Strategy & Governance Finance
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