Digital Transformation allows you to be disruptor, not the disrupted. See what you missed from our workshop at the Carnegie Mellon Engineering and Technology Innovation Management (ETIM) program’s 10th Anniversary Summit with senior leaders from academia and industry. Learn how to digitally optimize your business with principles of human-centered design that put the heart of the consumer at the center of business model innovation.
Digital Transformation
Design Thinking
Unlock Your Organization Through Digital Transformation
1. THROUGH DIGITAL TRANSFORMATION
P R E S E N T E D B Y
@ P E T E S E N A
@ P E T E S E N A
UNLOCK YOUR
ORGANIZAT ION
T HR OUG H D IGITA L TRANSFORMATION
2. DIGITAL SALES &
MARKETING
DIGITAL PRODUCTS
& CHANNELS
DIGITAL BUSINESS
MODELS
DIGITAL TRANSFORMATION DEFINED
2X ROI
5-10X ROI
10X+ ROI
v
Unlocking the full growth potential of your business
with digital strategies, channels and products.
3. THE PROOF IS ALL AROUND US
$20 BILLION
5 YEARS OLD
$379 BILLION
22 YEARS OLD
$126 BILLION
86 YEARS OLD
$1 BILLION
5 YEARS OLD
(ACQUIRED BY UNILEVER)
$258 BILLION
124 YEARS OLD
$593 BILLION
40 YEARS OLD
$68 BILLION
7 YEARS OLD
$1.2 BILLION
7 YEARS OLD
5. IS YOUR BUSINESS DISRUPTING OR
BEING DISRUPTED?
NATIVE DIGITAL DISRUPTION
High
Low
FREQUENCY OF PURCHASELow High
TRANSACTION
COMPLEXITY
• Private Investments
• Flooring
• Mortgage
• Recycling Services
• Eye Glasses
• Automobile
• Mattresses
• Employee Benefits
• Travel
• Music
• Razors
• Food
6. VERTICAL INTERMEDIARY DISRUPTOR
Private Investment Investment Banks Venovate
Eyeglasses Retailer/ Optician
Recycling services Waste Management Rubicom Global
Floors Contractor
Mattresses Retailer
Automobile Dealer
Mortgage Loan Originators
Health Benefits Insurance Broker
Hotels Travel Agent
Music Record Labels
Razors Drug Store
Food Supermarket
NATIVE DIGITAL DISRUPTION
9. 1. 2. 3. 4. 5.
DIGITAL TRANSFORMATION STARTS
WITH THESE 5 CORE QUESTIONS
ARE YOU DISRUPTING
OR BEING DISRUPTED
ON DIGITAL CHANNELS?
HOW SENSATIONAL IS
YOUR CUSTOMER
EXPERIENCE?
DO YOU KNOW WHAT YOUR
CUSTOMERS ARE
THINKING AND DOING?
ARE YOU EVOLVING AS FAST
AS YOUR CUSTOMERS AND
COMPETITION?
HOW CONTEXTUALLY-
RELEVANT AND COMPELLING
IS YOUR CONTENT?
10. DIGITAL GROWTH
STRATEGY
DIGITAL TRANSFORMATION
BY THE NUMBERS
of manufacturers will
start selling directly to
their customers
HUMAN-CENTERED
DESIGN
of marketers are prioritizing the
customer experience as the
focal point of the branding,
design, and delivery of their
products and services
CUSTOMER
INSIGHTS
of CMOs believe better
leveraging data and analytics
will be a top organizational
priority by 2020
AGILE
DEVELOPMENT
of marketers are trying
to incorporate agile
ways of working and
marketing
CONTENT
DEVELOPMENT
of CMOs agree they need
to become publishers in
order to support their
growth programs
40% 89% 67% 89% 93%
11. In the 1990s and early 2000s, software
companies tried to outdo their competitors by
packing their products with as many features
as possible, but this resulted in time-
consuming, clunky user experiences —
particularly in financial software.
Mint Founder Aaron Patzer built a streamlined
interface that evaluates a user’s bank
statements and presents an easily-digestible
breakdown of their budgets. By taking the pain
out of financial planning, the company
exceeded a million users within two years and
was purchased by financial software giant
Intuit.
1.5 MILLION CUSTOMERS
acquired in 24 months
PURCHASED BY INTUIT
for 170 Million
DESIGN DISRUPTION : FINANCIAL
12. REIMAGININGTHE PRIVATE BENEFITS MARKETPLACE
Does any employee ever enjoy picking their
benefits? Three ring binders, confusing jargon,
endless options — it becomes impossible to
understand what’s best for you and your family.
Liazon acts an intermediary between insurance
providers and employees to provide a more
personalized, transparent, and navigable
digital experience. The key is not to show the
customer a bunch of choices, but the choice
that’s best for them. Employers that use Liazon
to deliver benefits have tripled employee
engagement.
2x
CUSTOMER SATISFACTION CUSTOMER ENGAGEMENT
3x
INSIGHTS DISRUPTION : INSURANCE
13. DTC DISRUPTION : DTC CPG
Razor blades aren’t cheap. And they’re
behind lock and key in your local drugstore.
Startup Dollar Shave Club disrupted an
industry dominated by two titans with a
direct-to-consumer, e-commerce business
model that delivered blades for cheap right
to the consumer’s doorstep. And they made
shaving funny with a viral YouTube video that
to date has over 24 million views. In 2016,
industry giant Unilever bought the four-year
old startup for 1 billion dollars.
ACQUIRED BY UNILEVER
for 1 Billion
14. DTC DISRUPTION : FASHION
In 2006, Burberry was declining. Sales were
tepid and the luxury brand was growing at a
mere 2% per year.
That year, new CEO Angela Arhendts began
connecting with a digital demographic that
reaches for their phone in moments of want
or need. These targeted, personalized digital
campaigns resulted in a Facebook presence
that boasted more than 1 million followers;
the largest for any luxury brand. By 2012,
revenues doubled to 3 billion dollars.
DIGITAL IS DRIVING
40% of projected sales growth
19. BIG IDEAS
COME FROM
EVERYWHERE
Walmart established @WalmartLabs, an “idea
incubator,” as part of its expanding e-
commerce division in Silicon Valley—far from
the company’s headquarters in Arkansas.
The group’s innovations, including a company-
wide e-commerce platform, helped Walmart
increase online revenue by 30%, actually
outpacing Amazon’s rate of growth.
21. •Waterfall Project Management
•Linear, Siloed Thinking
•Annual Reviews
PROCESS
•Agile Project Management
•Cross-Functional Thinking
•360-Degree Peer Reviews
REACTIVE ORGANIZATIONS PROACTIVE O RGANIZATION S
[ R E S T R I C T I V E ] [ A D A P T I V E ]
24. Eliminated annual reviews
saving both time and
annual turnover.
Created a “Connect + Develop”
open-source program that taps
external data to accelerate
internal innovation.
Saved approximately 80,000 hours
of managers’ time
30% reduction in voluntary turnover
20 submissions every weekday
or more than 4,000 a year
Implemented company-wide
workshops to eliminate
unconscious bias and create a
culture where it’s safe to
express new ideas.
Trained team members are 16%
more likely to avoid negative
outcomes stemming from bias
27. MORE
CONNECTION,
LESS EMAIL
While those at the headquarters of the rapidly
growing UK cosmetics company Lush were
aligned, teams located on the other 5
continents that they operate reported frequent
miscommunication.
To increase transparency and eliminate
disconnects, Lush implemented Slack. The
workplace communication platform increased
effective communication and transparency, but
best of all, employees reported a 75%
reduction in internal email use.
47. P R O D U C T
I N N O V AT I O N
S U P P LY
C H A I N
CUSTOMER
CENTRIC
O R G
D E S I G N
E X P E R I E N C E
M A R K E T I N G
A N A L Y T I C S
S O C I A L C R MD M P
A D V E R T I S I N G
48. P R O D U C T
I N N O V AT I O N
S U P P LY
C H A I N
CUSTOMER
CENTRIC
O R G
D E S I G N
E X P E R I E N C E
M A R K E T I N G
A N A L Y T I C S
S O C I A L C R MD M P
A D V E R T I S I N G
49. BREWING
CONNECTED
EXPERIENCES
Seattle coffee giant Starbucks first appointed
a Chief Digital Officer, Adam Brotman, in
2009. Major digital strides in mobile, mobile
payment, loyalty, social, and e-gifting have
grown Brotman’s team to over 100 employees
operating as larger cross-functional teams
focused on digital goals and objectives.
Wireless charging stations, an integration with
social music platform Spotify, and a
Starbucks for Life mobile-powered game
promotion are all evidence of the coffee
brand’s ability to provide valuable digital
experiences for their customers.
51. WRITE FIRST,
BUILD LATER
Before Amazon developers write a single line
of code, they have to write the hypothetical
product's press release and FAQ
announcement.
This forces software and engineers to fully
understand not just the creative technology
that will power the product or project, but what
the value proposition is and how it will be
marketed to the end user.
If the press release isn’t compelling, the product
won’t be either.
HERE'S AN EXAMPLE OUTLINE FOR
THE PRESS RELEASE:
HEADING Name the product in a way the reader (i.e. your
target customers) will understand.
SUB-HEADING Describe who the market for the product is and what
benefit they get. One sentence only underneath the
title.
SUMMARY Give a summary of the product and the benefit.
Assume the reader will not read anything else so
make this paragraph good.
PROBLEM Describe the problem your product solves.
SOLUTION Describe how your product elegantly solves the
problem.
QUOTE FROM
YOU
A quote from a spokesperson in your company.
HOW TO GET
STARTED
Describe how easy it is to get started.
CUSTOMER
QUOTE
Provide a quote from a hypothetical customer that
describes how they experienced the benefit.
CLOSING AND
CALL TO ACTION
Wrap it up and give pointers where the reader should
go next.
53. 1. 2. 3. 4. 5.
DIGITAL TRANSFORMATION STARTS
WITH THESE 5 CORE QUESTIONS
ARE YOU DISRUPTING
OR BEING DISRUPTED
ON DIGITAL CHANNELS?
HOW SENSATIONAL IS
YOUR CUSTOMER
EXPERIENCE?
DO YOU KNOW WHAT YOUR
CUSTOMERS ARE
THINKING AND DOING?
ARE YOU EVOLVING AS FAST
AS YOUR CUSTOMERS AND
COMPETITION?
HOW CONTEXTUALLY-
RELEVANT AND COMPELLING
IS YOUR CONTENT?
54. GROWTH
DEFINE
OPPORTUNITIES
& THREATS
• Competitive disruption
• Technology trends
• Emerging behaviors
• Business models
• Assets and capabilities
• Market adjacencies
• Profit drivers
• Sources of competitive
advantage
• Behavior change
• Touchpoints
• Sentiment
• Digital adoption
• Unarticulated needs
• Segmentation
• Key points of failure,
friction, and
frustration
• Identifiers
• Touchpoints
• Journey mapping
• Emotion
• Economics
• Cost to sell
• Key points of difference
• Value story
• Promise
• Digital Sales &
Marketing
• Digital Channels
• Digital Offerings
• Business model
Innovation
• Roadmap
• Go-to-Market Mix
• Channel Development
• Platform development
• Value story
• Offers
• Message
• Offerings
• Experience
• Promise
INSIGHTS
DIGITAL SURGEONS FRAMEWORK
FOR DIGITAL TRANSFORMATION
UNDERSTAND
CUSTOMER
BEHAVIOR
ESTABLISH AN
EXPERIENCE
DESIGN POINT
DEVELOP A
STRATEGY/
ROADMAP
MINIMALLY
VIABLE
PRODUCT
ITERATE,
OPTIMIZE,
AND SCALE
DESIGN