DIGITAL

TRANSFORMATION By Hai Pham

1

HAI PHAM

1. ITLC is my brother!

2. Business Technology

Consultant

3. Funny boy ;-)

4. https://www.facebook.

com/haipham.openco

nsultant

5. haipham@openconsu

ltant.vn

2

CONTENT

• The stories of digital transformation

• What is digital transformation?

• Digital transformation governance

3

THE STORIES OF DIGITAL

TRANSFORMATION

4

1. Starbucks

Company Overview

• Coffee business

• The world largest specialty food retailer

• One of the most globally recognized brand

• Billion dollar enterprise

Problems & Opportunities

“Everything we are doing in digital is about enhancing and

strengthening those connections with our customers in only the way

that digital can and only the way that Starbucks can”

- Adam Brotman - Chief Digital Officer

5

1. Starbucks

Strategies/ Actions

• Organize digital capabilities

CIO created “Starbucks Digital Ventures” as an internal

incubator for digital technology

• Leverage mobile channel to enhance customer’s

Starbucks experience

Mobile payment via Square payment system

Integrate application with Apple’s native Passbook

feature, which consolidates ticket, coupon and loyalty

cards information on iPhone for convenient access.

6

1. Starbucks

Strategies/ Actions

• Engage customer via social media

Use social media to fuel customer-driven innovation via

“My Starbucks Idea” site to collect over 50 thousand

customer-submitted ideas to improve products,

customer experience and corporate initiatives

• Bridging offline and online customer experience

The “Starbucks Digital Network” offers in-store

customers premium digital content delivered via

free WiFi connection.

7

1. Starbucks

Results

• “Digital has to help our store partners and help the company be the

way we can tell our story, build our brand, and have a relationship

with a customer”.

Adam Brotman – CDO

• Reduce transaction charges, lower operating costs

8

2. Walmart

Company Overview

• The world’s largest company by revenue

• Biggest private employer

• The world largest grocery retailer in U.S

Problems & Opportunities

• In 2011, Walmart was struggling to break new ground with online

business

• E-commerce site was lacking intuitive search and unable to

connect with store or supply chain

9

2. Walmart

Strategies/ Actions

• Established Global eCommerce Division in 2010

Run ten websites worldwide

Build and test technology at WalmartLabs

• WalmartLabs

Digital innovation center

Idea incubator

• build products that seamlessly integrate the online and in-store

shopping experiences for millions of customers

• mobile app with personalized experiences such as ShopyCat, Goodie

• Focus on Digital & Offline

• “Save money. Live better”

• Social media + Big data >> Personalize customer experience

10

2. Walmart

11

• 245 million customers visiting 10,900

stores

• 10 active websites across the globe

How Big Data Analysis helped increase

Walmart’s Sales turnover? Walmart started making use of

big data analytics much before

the term Big Data became

popular in the industry

• In 2012, 10

node Hadoop cluster to a

250 node Hadoop cluster.

• 10 different websites into a

single website so that all the

unstructured data generated

is collected into a

new Hadoop cluster

Walmart processes multiple Terabytes of new data

and petabytes of historical data every day.

The analysis covers millions of products and 100’s of

millions customers from different sources.

The analytics systems at Walmart analyse close to

100 million keywords on daily basis to optimize the

bidding of each keyword.

2. Walmart

12

How Big Data Analysis helped increase

Walmart’s Sales turnover?

Big Data Analytics Solutions

How Walmart is tracking its customers?

How Walmart is making a

real difference to increase

sales?

How walmart become amazon

compete?

2. Walmart

13

How Big Data Analysis helped increase

Walmart’s Sales turnover?

Social Genome

Social Media Big Data Solutions

Shopycat-Gift

Predictive Mobile Big Data Analytics Solutions

Social Genome is

a big data

analytics solution

developed by

WalmartLabs

Shopycat app will

help you buy the

ideal gift for your

friend during the

holiday buying rush

2. Walmart

Results

• Between 2011 and 2014, Walmart’s e-commerce sales grew nearly

150% from $4.9 billion to $12.2 billion.

• Gain extra revenue from digital service

• Keep relationship with customer and wholesalers, retailers

Lesson learnt

• Digital savvy leadership

• Build a culture of innovation

• Strategic Acquisitions to bolster digital capabilities

14

3. Volvo Cars

Company Overview

• Small player in 2010

• Relies on the network of 2300 local dealers in 100 countries

Problems & Opportunities

• “Nowadays, you don’t sell a car. You sell a transportation solution,

and it should be as efficient and smooth as possible. Looking into

the future, we might say we don’t sell a transportation solution, we

sell an experience".

Timo Paulsson, Senior Manager Ownership Services and Brand

Protection for VCC global

15

3. Volvo Cars

Strategies/ Actions

• Business model transformation from B2B to B2B and B2C

• Launch new digital services

Via social channels (Portal, Facebook, Twitter, Youtube)

Mobility

• Connected car concepts: Embedding mobile technologies in vehicles

to enhance customer experience

• Build capabilities at global levels:

Implement global CRM

Implement analytical capabilities

Results

• Gain extra revenue from digital service

• Keep relationship with customer and wholesalers, retailers

16

WHAT IS DIGITAL

TRANSFORMATION?

17

Building Blocks of Digital Transformation

18

Business model Customer experience

Operational process Digital capabilities

19

Digital Transformation Framework

(Capgemini Consulting)

Business Model

20

1

Business Model Transformation

Offline Online

21

New Business

Model

22

Dienmay.com

Dienmaycholon.vn

NguyenKim.com

GiaThanh.vn

When someone needs to buy a TV…

Compare price from different stores

Review products

Better brand awareness

• Traditional way

Dien May, Nguyen Kim, Gia

Thanh offline stores

• Modern way

New Business

Model

Alezaa

Cloud Reader –

Instant online

reading

23

Values:

• Reader can buy more eBooks at cheaper price

• Protect copyright

• Enormous book storage (10000 items)

New Business

Model

Dienmay.com

Aim to be Vietnam

Amazon

Online electronics

and household

appliances

marketplace

24

New Business

Model

DiaOcOnline.vn

Top 3 Viet Nam

Real Estate Listing

Connecting:

Broker, End-User,

Buyer

25

Customer Experience

26

2

Customer

experience

transformation

• Better customer understanding

• Increase customer touch points

• Customer analytics supports decision

making on manufacturing, marketing,

investment etc.

27

Customer

experience

transformation

L’Oréal Case

Study

28

https://youtu.be/G1z2Od5lIsA

Operational Process

29

3

Operational

Process

Transformation

• Internal data-driven

• Internal analytics

• Better productivity management

• Collaborative workspace

30

Building blocks of the digital

transformation

31

4

Digital

Capabilities

Transformation

• The foundation of business model,

customer experience and operational

capabilities transformation

Analytics Capabilities

Business & IT integration

Knowledge management

Business data analysis for business

planning

Product/Service innovation

32

DIGITAL TRANSFORMATION

GOVERNANCE

33

DT

Governance

34

DT

Governance

1. Silo

35

• Each business unit can have its own

strategy and budget for digital initiatives

• No enterprise-level coordination

• Digital operations developed and

managed in business units

DT

Governance

Central

coordination

36

• Digital strategy defined at enterprise level

• Digital initiatives funded and coordinated

at enterprise level

• Digital operations developed and

managed in business units

DT

Governance

Less coordination

37

• Digital strategy defined by central unit, although

local business units can have their own strategies

• Local business units develop and manage

operations, but must use solutions and resources

from dedicated business unit when available

DT

Governance

More coordination

38

• Digital strategy set by a dedicated business unit.

• Local business unit digital strategies and budgets

are coordinated across the company

• Local business units develop and manage

operations, but must use solutions and resources

from dedicated business unit when available

DT Investment

4 investment types:

1. Economic

2. Burning platform

3. Strategic

foundation

investment

4. Low-risk

experiment

39

Digital maturity

matrix

40

DT challenges

41

Start

•Lack of financial commitment

•Lack of experiences

•ROI calculation

Execute

•Lack of required skills

•Cultural issue

•Limited internal IT resources

•Unclear/Ambitious SOW

Develop

•Daunting Trials and fails process

•Require high adaptabilities to changes

HẾT BÀI. CAFE THÔI ;-)

42