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A Blank Sheet For Organisational Structure In A Digital, Customer-Centric World

October 2015

Ashley Friedlein President, Centaur Marketing & Founder, Econsultancy

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Digital Transformation •  The journey towards being a

digital organisation •  “Digital” means:

–  Focusing on the customer experience irrespective of channel

–  Having a digital culture

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The 7 defining characteristics of a digital culture

1.  Customer-centric 2.  Data-driven 3.  Makers & Doers 4.  Transparent 5.  Collaborative 6.  Learning 7.  Agile

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“Organizations are structured around control mechanisms and reporting, not around capabilities and outcomes." “Organizing Marketing in the Digital Age”, Econsultancy, 2015

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How to organise?

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How to organise?

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How to organise?

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The rise of the Chief Digital Officer (CDO)…

Now 1,000+ CDOs globally and the number has doubled every year for the last few years. Gartner predicted 25% of businesses would have a CDO by the end of this year.

According to the CDO Club salaries for a Chief Digital Officer range from $89,000 to $600,000, with the median falling between $250,000 and $300,000.

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…and the Chief Customer Officer (CCO)

Source: The CCO Council 2014 CCO Study

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What I learned about CDOs •  ‘Ambassador’ CDO vs ‘Transformer’ CDO •  CDO + CMO not a great idea •  CDO runs marketing, digital/tech, product •  CDOs next job? CEO.

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What I learned about CCOs •  Strategic driver = competitive advantage through

customer-centricity and integrated channels •  Big teams and P&L responsibility •  CCO combines CDO and CMO roles •  CCOs have significant, if not complete, control of

technology, data, digital, insight, innovation. In some cases customer service and, depending on company size, all the physical (store, branch, call centre etc) operations.

•  CCOs next job? CEO.

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The five stage of evolution towards true multi-channel customer-centricity

5 Job done

CEO (and CMO, CTO, CFO etc)

4 Business

Transformation Chief Customer Officer

3 Digital Leader

‘Transformer’ Chief Digital Officer

1 Digital Team Head of Digital

2 Digital

Figurehead ‘Ambassador’ Chief Digital Officer

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UK Government Digital Service

3.4

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Tate

3.7 •  Published in 2013 •  Third iteration of

digital strategy •  Published under

Creative Commons

•  “Digital as a Dimension of Everything”

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Capital One

3.9 •  A bank creating

differentiated experience through digital

•  “Digital is who we are and how we do business.” Richard Fairbank, CEO

•  100% agile adoption

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House of Fraser

4.1 •  CCO with digital and multichannel chops

•  Head of “Find it” •  Head of “Research it” •  Head of “Buy it”

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Burberry

4.3

•  A vision from 2006 •  Financial and customer

success •  From the CEO throughout

the business •  Continual innovation

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“I will focus on … the convergence and integration of our retail and e-commerce, digital, card and mobile assets around the world … develop "next-generation retailing"

Starbucks 4.6

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Future competitive (martech) advantage?

1.  Join up data and systems, then… 2.  Deliver experiences that are consistent, synced

and responsive across devices/channels, then… 3.  Make them personalised, proactive and

contextual

“The era of living services” FJORD

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