Top Digital Transformation Trends and Priorities for 2016
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Transcript of Top Digital Transformation Trends and Priorities for 2016
Proprietary and confidential. Do not distribute.
Charlene Li, Principal Analyst
@charleneliAltimeter, a Prophet Company
[email protected] 26, 2016
The Digital TransformationHelping Your Company Thrive in the Digital Era
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What are the Important Trends?
With limited time and resources, what should you focus on in 2016?
What are crucial areas to focus on to drive digital transformation?
What can we safely ignore?
4 Drives Measurable Business Value
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Technology Maturity
2005 20152010 2020
Social Cloud Mobile DataInternet
of ThingsVirtualReality
Ado
ptio
n R
ates
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Top 10 Priorities for Digital Transformation in 2016
1 Customer Experience
2 Culture & Leadership
3 Content Strategy
4 Digital Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of Things
9 Artificial IQ 10 Virtual Reality
Top Priorities
1. Customer Experience
Everything that you do (and don’t do) impacts the brand
Priority: Map out and use the digital customer journey
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Customer Journeys Are Not Connected to Digital Transformation
Is your organization undergoing a digital transformation?
Source: Altimeter Group Digital Transformation Study, 2014.
88%
12%
Yes
No
42%
25%
12%
12%3%
The need to do so hasn’t come up or
been made a priority
We have not officially researched the digital customer
journey but we have updated
digital touch points with new social and mobile technologies
and investments
We’ve talked about the need to do so but no one has taken the
lead yet
We are researching customer behavior now and waiting for results to inform our
digital transformation strategy
We have completely mapped out the customer journey
within the last year and have a clear understanding of new
digital touch-points
Which best describes your company’s efforts around the customer journey/experience?
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Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them.
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The Top 50 Relentlessly Relevant Brands 31
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Relentlessly Relevant brands have four key characteristics
CUSTOMER OBSESSED
DISTINCTIVELY INSPIRED
PERVASIVELY INNOVATIVE
RUTHLESSLY PRAGMATIC
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Traditional Journeys
• Personas
• Linear
• Optimization focus
• Functional
• Episodic designed
• Static
• Survey & heuristic based
Next Gen Experiences
• Behavior-based segments
• Unpredictable, shared
• Strategic focus
• Emotional
• Continuously designed
• Dynamic, real-time
• Data-based
Creating Next Generation Consumer Experiences
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Sephora’s Marries Digital and Retail Data for Customized Experiences
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An Ethical Data Strategy Becomes a Brand Issue
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This isn’t a Technology
Problem
“You’ve got to start with the customer experience and work backwards to the technology.”
- Steve Jobs
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The Customer Experience Cloud
2. Culture & Leadership
Priority: Support and amplify your brand internally
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Biggest Challenges of Digital Transformation
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Better Employee Relationships Better Customer Experiences Better Customer Relationships
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Employee Engagement Has Very Slowly Improved
US EMPLOYEE ENGAGEMENTFigures show are for February of each year
2011 2012 2013 2014 2015
28.1 30.5 30.4 31.4 32.9
52.0 50.4 50.8 50.8 50.3
19.9 19.1 18.8 17.8 16.8
Engaged Not engaged Actively disengaged
Source: GALLUP
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The Engaged Leader Framework
Listen at Scale
Share to Shape
Engage to Transform
24“I don’t have the time.”
25 #MKTNATION
“It’s not about me.”
26“It’s marketing’s job.”
27 #MKTNATION
“I don’t want to get my company in trouble.”
3. Content Strategy
Priority: A cohesive strategy that address content needs across the organization
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Do You Have a Cohesive Content Strategy?
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Content Management Team
Case Study: Nespresso• Sets governance for content production
process, guidelines for tone, visuals and messaging
• Orchestrates content across PR, customer service, local markets and commercial teams.
• Works closely with CRM and customer insights group
The Content Management Team:• Turns customer insights into relevant content.• Hosts digital/creative assets.• Sets governance for how content is used.• Establishes guidelines for consistent voice,
message and tone.• Looks for integration between paid, earned and
owned content.
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Be Clear About The Purpose of Each Type of Content
4. Digital Ecosystem Rationalization
Priority: Break social and digital silos, distribute digital throughout the organization and leadership
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Break Down Silos to Align Customer Experience Priorities
• Different KPIs lead to competing efforts• Consumer data lives in silos, each department has
partial insight• Same channels have disparate content
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Key Players in Digital Transformation
CHRO
CMO
CIO
5. Paid Social
Priority: For Marketers, take a measured approach to paid social’s place in the strategy and budget
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Three Key Issues Around Paid Social
Paid Social Ads
Social Community Management
Social Customer Care
Will brands shift resources from engaging customers through community management to paid social for
reach, and shift engagement to social customer care?
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Three Key Issues Around Paid Social
Paid Social Ads Employee Advocates
Or will the rise of employee advocacy increase reach and thus reduce social ad spend?
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Three Key Issues Around Paid Social
Paid Social Ads
Will brand teams continue to use social at the top of the sales/marketing funnel?
Or will digital advertising use paid social ads to drive e-commerce?
Brand Marketers Digital Advertising
6. Wearables
Why Wait: Primarily health/fitness use cases
Why Act: Develop content that can be consumed on these emerging platforms
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Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce
Have a strong content strategy and capabilities to take advantage of emerging platforms
7. Visual Web
Why Wait: Technology to identify and analyze your visual brand are still nascent
Why Act: Your brand is under fire/being lauded/ignored and you don’t know
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How Is Your Visual Brand Being Used?
8. Internet of Things
Why Wait: Standards are a complete mess
Why Act: Post-purchase experiences and opportunities to build loyalty/advocacy
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Diageo piloted connects bottle to smartphone campaign for a personalized content experience
• 72% sales during pilot• Expanded program to 6 countries• 100k unique QR code downloads• supply chain efficiency/visibility
9. Artificial Intelligence Virtual Assistants
Why Wait: Still very early in development
Why Act: Build trusted relationships with recommendations/ads via AI-powered virtual assistants
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Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use
10. Virtual Reality
Why Wait: Proprietary platforms are just launching this year, standards are still emerging
Why Act: Study and develop new storytelling capabilities
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Prepare Content and Customer Experiences for VR by Exploring Storytelling
Oculus Rift, March, $599 HTC Vive Pre, March
Sony PlayStation VR, H1 ‘16
Samsun Gear VR, $99
Microsoft HoloLens, 2016 $3,000 Google Cardboard, $30
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Top 10 Priorities for Digital Transformation in 2016
1 Customer Experience
2 Culture & Leadership
3 Content Strategy
4 Digital Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of Things
9 Artificial IQ 10 Virtual Reality
Top Priorities
For more information please contact:
Charlene LiPrincipal Analyst
[email protected]@charleneli
www.altimetergroup.comwww.charleneli.com