Digital Transformation - Play along or die

© Copyright 2015 Digital Leadership GmbH 1
Services & Consulting for
Digital Leadership
© Copyright 2015 Digital Leadership GmbH
Digital Transformation – Play along or perish
Mons, 26th of February 2015, Stefan F. Dieffenbacher
sd@digital-leadership.net
www.digital-leadership.net
digital-business-reimagined.com
/sfdieffenbacher and /leading_digital
DigitalLeadership
stefanfdieffenbacher
dieffenb
StefanF_Dieffenbacher
A keynote atthePixelfestivalin Mons,Belgium.!

Part 1: The world is changing...
Digital Leadership

The Ivy League of Music
GLOBAL YOUTUBE EVER WINNER
Gangnam Style
2,249 billion views
SECOND
Justin Bieber – Baby
1,139 billion views
THIRD
Katy Perry Dark Horse
828 million views

Can you remember the world’s largest
company in 1997?

Nokia

The new Apple headquarter.
The new leader: Apple.

© Copyright 2015 Digital Leadership GmbH 19*December 2014.
The new leader: Apple.
Apple has almost twice as much
as money as the US Government:
US-$ 160 billion*.

The digital transformation has
killed a whole series of industries

And the digital transformation
has just started :
the next generation
is online only.

Digital Leadership © Copyright 2015 Digital Leadership GmbH
This group has grown
up with the Internet.
Average annual househould income by age (2011)

This group has grown
up with the Internet.
Average annual househould income by age (2011)
80% of the purchases above €100.- are being
researched online.

Why does their world look so
bleak?
One thought:

Customer Relationship
=
Business & Profit

Customer Relationship
Customer Interaction
=
Business & Profit

to be continued…

Digital Leadership
Digital Leadership
Part 2: The appetit for
innovations was never larger

Innovation!
Lately, there was a lot of talk on

Innovation?
But what is

2001 2007

So where did Apple innovate?

1. Innovation in business
model design. Examples:
!  Value Proposition, creation & delivery
!  Product- & serviceportfolio
!  Ecosystems
!  Delivery channels
!  …

2. Innovation on products and
platforms
!  User Experience

platforms

platforms
!  HOLISTIC!!!

1. Innovation in business model design
!  Value Proposition, creation & delivery
!  Product- & serviceportfolio
!  Ecosystems
!  Delivery channels
!  …
2. Innovation on products and platforms
!  HOLISTIC!!!

You’ve got to start with the
customer experience and work
back toward the technology – not
the other way around.
- Steve Jobs

Digital Leadership
Digital Leadership
Part 3: designing superior
customer interaction portals!

Stakeholders
Expected
Benefits
Overall
Direction “The Product” Costs Business Case
Approach &
Plan
Stakeholder
identification
Personas
Initial market &
competitive analysis
Other inputs to
needs
Departmental
inputs
Benefits
identification
Benefits breakdown
BI & Analytics
review
Initial opportunity
identification
Vision
Goals
Business objectives
Project Motivation
Key user tasks
Cross-channel
experience journeys
Scope Landscape
Roadmap
Content org model
Site org model
Technical
architecture
Draft cost
breakdown
Initial project plan
Organisational
setup post launch
Cost assumptions
Business case
Funding options
Business Case
presentation
Initial draft plan till
go-live
Project plan
strategy & concept
phase
1 2 3 4 5 6 7
The Digital Leadership Strategy Framework: the 7 process steps
55

Arno Dübel:
Germany’s laziest unemployed person.
A good customer?

Offline:
NO?
Online:
Certainly YES!

Arno Dübel „Retail partnership seeker“
Prio 1-5
Banking behaviour and attitude
Number of banks 2 (Sparkasse Lüneburg, Volksbank)
Primary bank Sparkasse
Banking likes Better than average conditions, quality, agreeable but somewhat business-like
atmoshpere, late opening hours, politeness
Banking dislikes Automated bank without employees, ineffective handling of her issues, not
precise information
Banking fears Handling her affairs not effectively because they do not know her background
enough
Service frustrations Not enough attention, different information from different bank staff
Literacy and devices
Computer Literacy Medium, rarely buys online
Finance Literacy Reads finance news on the internet and newspaper, modest knowledge but
high interest, discussing business options with financially educated friends
Devices PC,Windows phone, Android tablet (jointly used by partner)
Proposition Matrix
Brand affinity Weak Advocate
Products u. Mngmt Current and savings account, little investment
Advice type Personal, detailed, deeply sensitive, regular contact, proactive, does not want
to have advice on familiar products, email
Financial evolution Savings and investment
Up and cross selling Bonds and funds, personal loan
Key data
5
Age: 54
Location: Berlin
Language: Deutsch
Education: BA, Univ.
Income: €1 k
Assets: €5k
Group size 823 000
Lifestyle
Background:
• Lives together with husband
Life goal:
• Having kids
• Career is less important then
a good quality of life
Life events:
• Having kids, traveling
• helping parents
5Top Prio: 5

What does Judy need?

Needs
Wants
Fears
Customer

Needs
Wants
Fears
Customer
Benefits
Features
Experience
Product

"No one feels a need to buy a table.

"No one feels a need to buy a table.
People just want to be comfortable
when they eat."

“I want to do one
great world travel
before I retire”
“I want to spend more
quality time with xyz!”
“I need to be able
to talk to you!”
“I want to remain
fit & healthy”
“I want to retire
before 60”

User needs “I want to do
one great world
travel before I
retire”
“I want to spend
more quality time
with xyz!”
“I need to be
able to talk to
you!”
“I want to
remain fit &
healthy”
“I want to retire
before 60”

User needs
Business goals
“I want to do
one great world
travel before I
retire”
“I want to spend
more quality time
with xyz!”
“I need to be
able to talk to
you!”
“I want to
remain fit &
healthy”
“I want to retire
before 60”
Maintenance
costs need to be
decreased
Responding quickly
to market needs has
become critical
We kind of need
to earn more
money
Online & offline
processes need
tighter integration

User needs
Business goals
ONE
overarching
vision
“I want to do
one great world
travel before I
retire”
“I want to spend
more quality time
with xyz!”
“I need to be
able to talk to
you!”
“I want to
remain fit &
healthy”
“I want to retire
before 60”
Maintenance
costs need to be
decreased
We kind of need
to earn more
money
Responding quickly
to market needs has
become critical
Online & offline
processes need
tighter integration

Designing solutions
based on customer needs
to talk to you!”

Designing solutions
to talk to you!”
Skype
Call
Snail mail
E-mail
Callback
Co-browsing

Designing solutions
Skype
Call
Snail mail
E-mail
Callback
Co-browsing
Communication!
to talk to you!”

Test 1: would this work?

Test 2: would this work?

© Copyright 2015 Digital Leadership GmbH 78© Copyright 2014 Digital Leadership GmbHDigital Leadership Slide 2
Understanding customers
Sequential steps Sequential steps in parallel Loosely ordered steps Time independent steps Iterative steps Potential Moment of Truth Positive experience Breakdown Touchpoint with other providerPotential touchpoint with Westpac Branch visit Potential property Meeting Phone call made Phone call received Email Traditional mail Personal computerWebsiteForms Discussion with friends/familyCustomer thinking or workingPublicationWES9017 P&O Mortgage Transformation | v1.0 Final
© 2010
“I love working for myself, and spending
time with the kids. If only I had more time
in my day and more space in our house.”
Digital Leadership
Back to the drawing board:
how would a user behave in a certain
scenario and what would he need?

anch visit Potential property Meeting Phone call made Phone call received Email Traditional mail Personal computerWebsiteForms Discussion with friends/familyCustomer thinking or workingPublication

anch visit Potential property Meeting Phone call made Phone call received Email Traditional mail Personal computerWebsiteForms Discussion with friends/familyCustomer thinking or workingPublication
WES9004 - Westpac Online Transformation - Concept Sketching Document ⏐ v1.0 DRAFT
Open new account/service/user continued
Complex: Cristina wants to set up a new user on the system.
Login to Online Banking
A new member of staff, Sue, joins
the team and Cristina needs to set
her up on the Westpac system.
Cristina logs into the Online Banking
system and selects the manage
users tab.
Searches for users
Cristina searches the list of existing
users to ensure that Sue has not
been set up on the system already.
Creates new user and new
role
Cristina clicks to set up a new user
and browses the list of user roles she
has created previously. She decides
to create a new role for Sue and
chooses the relevant access she will
need. Then Cristina uploads a file
containing Sue’s contact details and
clicks to send a request for her to
complete the next stage of the
application. An email containing a
link arrives in the Sue’s inbox with a
link to the new user application.
Checks status & reminder
Cristina has not received an email
notification from the system that Sue
has provided her personal details so
she logs in to check the status.
Cristina generates an additional
email to Sue.
Personal details & verify
Sue opens the link and enters the
required personal information. She
also provides details to verify her
identity online. Once completed Sue
submits the information and is shown
a message that the new user
application is now with Cristina to
complete.
Check setup
Cristina receives an email notification
when Sue submits her personal
information. She checks Sue’s user
profile page to ensure everything has
been set up correctly.
See page 48 for details
Innovations:
Innovations:
Innovations:
Innovations:
Innovations:
Innovations:
Creating functional solutions for each
individual step (exemplary)

“Great, but where is:
!  Skype?
!  Facetime
!  What’sapp
!  Screensharing?
!  E-mails?
!  Chat?”

Peter Peterson
Lets meet for lunch …
12:26
Sales Advisor
Hint
11:16
Steve Meyer
List of needed things
11:05
Steve Meyer
mobile
11:02
Peter Peterson
shared session
10:38
Peter Peterson 10:15
Creating a seemless
integrated
communication center

Peter Peterson
Lets meet for lunch …
12:26
Sales Advisor
Hint
11:16
Steve Meyer
List of needed things
11:05
Steve Meyer
mobile
11:02
Peter Peterson
shared session
10:38
Peter Peterson 10:15
Would this work :
!  On your iPhone?
!  In a Tesla?
!  On KBC’s website?
Creating a seemless
integrated
communication center

So how important is this going to be for our users?
Source: Digital Leadership Strategy Framework

Where would such communication center rank on a roadmap?
For our
customers
For the business
Complexity for
realisation
Impact # customers
IT Complexity
Impact on product usage Impact sales
Organisational complexity

Where would such communication center rank on a roadmap?

This process needs to be covered several times
1. 2. 3.
Big picture
Market- &
product tests
Full
elaboration
1 2 3 4 5 6 7

This process needs to be covered several times
1. 2. 3.
Big picture
Market- &
product tests
Full
elaboration
1 2 3 4 5 6 7
This process requires a lot of work –
but it is well worth it:
90% of the features on a platform are seldomly or never used.
It is up to us to create a (digital)
world worth living in.

This was a hard piece of work –
and certainly not a one-hit wonder !

1.  Segment your customers
2.  Understand your customer’s real need
3.  Abstract to get the full picture
4.  Undertand business goals
5.  Define a vision combining user & business
6.  Design a solution & for the interaction
7.  Place it on a roadmap
*Key steps of the Digital Leadership Strategy Build Framework.

to be continued…
Und dann haben Sie die Mittel in diesem
Spiel mitzuspielen

We have developed a complete approach and framework to
STRATEGY
Create superior digital strategies
BUILD
Build successful portals and
digital products
RUN
Efficiently run
digital organisation
And we support our clients across all three stages.

Stefan F. Dieffenbacher
e-Mail: sd@digital-leadership.net
web: www.digital-leadership.net
blog: digital-business-reimagined.com
twitter: /sfdieffenbacher
twitter: /leading_digital
Facebook: DigitalLeadership
LinkedIn: stefanfdieffenbacher
Slideshare: dieffenb
Xing: StefanF_Dieffenbacher
Be invited.
Get in touch.

Digital Leadership

We’ll take you to the top.
Stefan F. Dieffenbacher
Executive MBA, PMP, CPM, Scrum Master
Managing Director
Digital Leadership GmbH
Landsberger Straße 217
D-80687 München
+49 (0)176 / 638 020 11
+49 (0)89 / 748 600 32
sd@digital-leadership.net
mobile:
office:
e-mail:
Internet:
Alexander Schmid
Dipl.-Inform. (FH)
Partner
Digital Leadership GmbH
Landsberger Straße 217
D-80687 München
+49 152 / 215 65 847
+49 (0)89 / 748 600 32
as@digital-leadership.net
mobile:
office:
e-mail:
Internet:
Wir freuen uns auf spannende Gespräche und
Herausforderungen im Bereich digital!
Für mehr Informationen über das Digital Leadership Strategy
Framework oder wenn Sie ein spannendes Thema mit uns
diskutieren möchten: kontaktieren Sie uns jederzeit!

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