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Presentation on the challenges and approach to managing digital transformation
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Managing change in the Digital Landscape
We are in the midst of a major revolution
Industrial revolution
Information revolution
Forget capitalism and the class struggle... the digital revolution is changing things far more
dramatically than the hypemongers ever imagined... the move from a society
dominated by print and broadcast mass media to the age of interactivity is at least as
dramatic as the move from feudalism to capitalism.
Netocracy, by Jan Söderqvist and Alexander Bard (2001)
IMG SRC: Flickr
The information industry
The photography industry
The music industry
Revolution creates change
Change is hard
Particularly when your plan was to sit back and relax
Life was simple
TV
RADIO
Life was simple Budgets where clearly divided The big idea ruled 3 martini lunches where the norm Measurement was simple Sales told you if it worked
Gradually, things got more complicated
TV
RADIO PRINT
OUTDOOR
EXPERIENCIAL DM
ONLINE
Then digital became even more complex
VIRAL
MICROSITES
SEARCH
ECRM
SOCIAL MEDIA
But the pie is still the same
Lots of moving pieces
Measurement is complex
CPC, CTR, CPA Impressions, visits Activity indexes ……
Reporting overload
The days of the three martini lunch are over
Marketing is hard work
Most of you guys get it
One of the biggest barriers you face is convincing your organisations
“I've got to get on facespace”
Turning around a dinosaur
Individual resistance
Habit
Economic Factors
Job security
Fear of the unknown
Selective information processing
Organisational resistance
Resource allocations
Established power structure
Structural inertia
Limited Focus for change
Group inertia
Resistance to change
Digital doesn’t come naturally to everyone
Digital comes with a lot of new terms
It’s a bit geeky
We talk in Acronyms Twitter feed
This only serves to lock the opportunity away
Denial
Resistance Exploration
Commitment
Change to the individual
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
Sensitise organisations to pressure for change
Reveal discrepancies between current and desired states
Convey credible positive expectations for the change
Motivating digital change
Behavioral change is a function of perceived need and occurs at the emotional, not intellectual level
Develop a perception of need
Start with you
Immerse yourself
Live in this world
Join lots of social networks
Find and subscribe to some interesting blogs
Share
this
link
Join some digital marketing forums
Get onto twitter
Even if it seems dumb at first
Build your own blog
Get a second life
FLICKR: rikomatic
FLICK
R: D
anilo "Maso” M
asotti
FLICK
R: ladyhaw
ke365
Avatrian & Slionhead: iClaudia
48
Gather insights about your customers
Monitor your brand online every day
Share the cool things that you find
They don’t know what they don’t know
Give them some good books to read
Organise internal training
Encourage others to embrace it
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
A definition of how your company will interact digitally with its customers in the next 2 – 5 years
Create a vision of change
How do you create a digital vision?
Can your agency help?
Approach 1: One agency does it all
The traditional approach
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
RETAIL
PR
Strategy Insights
DM
The Creative
Idea
Planners identify the key insight
Creative's come up with the big idea
UsuallyintheformofaTVad
Some5mesaprintad
Theguyswhogotthebudget,calledtheshots
Digitalpeopledidn’tlikeitbutthat’sjustthewaythingswhere
Approach 2: employ separate agencies for separate jobs
Above the line Below the line
Now you need a bigger boardroom table
Co-ordination is complex
The elephant in the room Who gets the budget?
Approach 3: tell them to work together (or else)
Playing nice in the
sandbox
Sometimes it works
Sometimes it doesn’t
The problem is not the agency structure
It’s this
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
POS
PR
Strategy Insights
DM
The Creative
Idea
More specifically, this
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
POS
PR
Strategy Insights
DM
The Creative
Idea
Digital is a grouped term
When we think about our digital vision, we still think in channels
digital
search
website
eCRM
display
Social media
digital
A better way to think about it is this
Sales
Customer Service
interaction
Brand
Product
Development
Digital is not a channel, it’s a deployment medium
The fundamental issue is in the basic model
All channels have a digital component OUTDOOR
TV
RADIO
DIGITAL MOBILE
POS
PR
DM
Your website
Display placement
What you do in search
Basic Personalisation
What you do in social media
Digital POS
Digital outdoor
Digital print
Digital TV
Digital Radio
Digital PR
OUTDOOR
TV
RETAIL
PR
The Creative
Idea
MOBILE
ONLINE
RADIO
Acquisition Brand Customer service
Engagement
DM
Referral
Delivering Digital content is more complex
Technology Enablement
OUTDOOR
TV
RADIO
ONLINE
MOBILE
RETAIL
PR
The Digital Brand Ideal
Customer Data
Engagement strategy
Blog watching
Digital In store displays
Digital billboards
iTV
Podcasting
Display Ads and Websites
Content and Messaging
Market Insights
Digital Usage
Patterns
Technology Segmentation
Platform capabilities
Penetration Statistics
Competitive landscape
Deployment Strategy
Partnerships
Affiliate opportunities
Growth opportunities
Data Strategy
Back to you guys again
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
Money drives support
Many organisations focus purely on sales revenue
Generic digital stats
We are way too focused on eyeballs
Social Media has a serious impact on business
Community users are more engaged
Community users remain customers 50% longer than non-community users. (AT&T, 2002)
Community users spend 54% more than non-community users (EBay, 2006)
In customer support, live interaction costs 87% more per transaction on average than forums and other web self-service options. (ASP, 2002)
Community users visit nine times more often than non-community users (McKInsey, 2000)
Identifying stakeholders and departmental goals
Objective Stakeholders Goals Spread a message among a community
Marketing department Improve effectiveness of marketing
Reduce support costs Call center Support staff
Streamline customer support management
Learn from your community
Product Development Sales department
Learn what products your customers want
Define Relationships, Analytics and Outcomes
Objective Relationships Analytics Outcomes Spread a message among a community
Develop an emotional connection with customers
Number of comments Number of forwards Blog posts Diggs, technorati posts
Reduce the cost of media spend Increase the quality of message Increase customer engagement
Reduce support costs
Provide a self service model for support that leaves customers feeling empowered
Number of visits to online support site Hours logged in call center, length of call feedback forms Comments in social media
Reduce the hours logged on support calls Improved customer feedback ratings
Learn from your community
Identify key market trends and desires
Number of posts/suggestions Volume of community discussion
Streamline product development process Develop products that are more geared to market demand
Top pressures driving Social Media Monitoring
Engage stakeholders in planning a digital vision
Get out of the silos
Bring everyone along for the ride
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
There is just not enough digitally skilled people
It’s our own fault
1998: We were hyping it up
2000: Then we crashed
2001 – 2004: digital became a ghost town
2005: Suddenly we realised, digital had reach
• Broadband penetration was spreading • Online measurement demonstrates
effectiveness • Money started flowing into interactive
advertising. • The industry started to grow
2006/2007 : Digital was booming
Digital agencies up to their eyeballs in projects Start-ups re-emerging. Digital publishing expanding
2007: It’s exhausting Long hours, little structure Burnout is frequent Poaching is rife M&A activity is constantly destabilizing Staff pushed to limits.
Salary inflation
We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
Staff
We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
Staff
Old school digital survivors now it top jobs
Shortage of entrants
What to do
Become a super hero
What to do
Import people
What to do
Poach people
What to do
Get the dinosaurs on board
Don’t ban facebook in the office
Help people feel at home in these environments
Social computing is the new water cooler
Social knowledge management
David Gurteen
Knowledge Management Social Computing KM is extra work Social computing is part of my
everyday work Work is behind closed doors Work is open and transparent People are afraid to talk openly Anyone can say anything
People directories provide contact information
Social Networking platforms reflect who is doing what with whom
Content is centralised, protected and controlled
Content is distributed freely and uncontrolled
IT chooses the tools I use I have a choice & select my own tools Knowledge sharing is database centric Knowledge sharing is people centric Knowledge is forcibly captured just in case
Knowledge is naturally captured as part of my work
Best Practices Stories
Knowledge enables organisational growth
With the potential to be much bigger
It allows value to shift
ownership experience
Ownership to be transferred
institutions communities
Collaboration leads to powerful ideas
Everyone buys in, everyone wins
The other problem…the IT department
IT and marketing may have the same goals …
…but different approaches
Time frames
language
Details Executive summary vs functional spec
Take your IT buddies out for lunch
Find a common language
Building bridges at the highest levels you can reach CMO and CIO if possible
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
Geoffrey Moore’s bell curve
Simon Brown
146
Students are sorted into groups to give a greater sense of membership. The groups are named after Australian natural dimension stones used in the stone trade
The stonemasonry ning
147
Youtube videos in sidebar widget
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Provide resources for change
Build support systems for change agents
Reinforce new behaviors
Sustaining Momentum
Supporting change
Stay the course
Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
Individual resistance
Habit
Economic Factors
Job security
Fear of the unknown
Selective information processing
Organisational resistance
Resource allocations
Established power structure
Structural inertia
Limited Focus for change
Group inertia
Tackle resistance head on
The future is bright
Do it in second life
Three virtual martinis
The three martini lunch is back
Linkedin: http://www.linkedin.com/in/jennywilliams
www.ideagarden.com.au
Twitter: ideagarden
