CRM System Automates

Digital Transformation Neil Malone 1 - Introduction Neil Malone Contents 1. Introduction • Suggested reading / sources 2. What is digital transformation? • Key points • Digital Business Maturity Model • Video 1 – David Rogers on Digital Transformation 3. Why do digital transformation? • Businesses are struggling to adapt • The risks of failing to adapt and potential responses [Activity] • Who benefits from digital transformation? [Activity] • What are the benefits • New goals and approaches 4. Digital transformation and organisational change • Organisation change key points • Final activities and video 2 – Martin Danoesastro : What are you willing to give up to change the way we work? Suggested reading and sources Further reading • Rauser , A. (2016).  Digital strategy : A guide to digital business transformation . CreateSpace • Ustundag , A., Cevikcan , E. (2018).  Industry 4.0: Managing The Digital Transformation. SpringerLink. 2 – What is digital transformation? Neil Malone Digital Transformation: Key Points •Digital transformation results in an organisation using digital technology, data and systems to create fundamental changes throughout all of its operations, processes and functions. •The result of digital transformation is a data- driven, human-centric organisation. •Transformation often requires a cultural change too in order to challenge long-standing business practices or the status quo Digital Transformation: Key Points • Not solely about ‘digital’ or ‘technology’ • Aspects of cultural and organisational change. • Strategy and leadership are crucial. Digital Business Maturity Model Heinze, A., Fletcher, G., Rashid, T., Cruz, A. (Eds.), 2017. Digital and social media marketing: a results-driven approach. Routledge: London Level 0 – Non-digital Traditional Business • These businesses are not online in any meaningful way • Automatic presence may have been created for them • Business owner has no control over the information or any input • Face the biggest challenge Level 1 - Presence Broadcast model of communications • Untargeted messages • Ill-defined audience • No active interaction • No two-way communication Level 2 – ‘e’ Engagement Customer as ally and co-creator • SEO and SM marketing help get here • Requires strategic vision • Become ‘open’ and give up Illusion of control - customer ally, not enemy for cash extraction • Often requires cultural change to challenge status quo and existing business practices Level 3 - Integral Decision making is data-driven • For many, business system and process integration eventually leads to this level • Value creation through use and re-use of digital assets; everything is digital • Awareness of digital everything offers new revenue streams; ‘data is the new oil’ • Integration (IoT): more digitally accessible Level 4 – The Future Fully integrated, data-driven business • Attempts to reach this level deliver new business models and processes • Day to day functions driven by predefined business rules; potential for application of AI • Tools adopt external factors, alter operational tasks, new product/service created on demand • Co-production/design with customers blurs traditional boundaries and relationships Video Take a look at the video by David Rogers discussing Digital Transformation Link in the description 3 – Why do digital transformation? Neil Malone Why do digital transformation? • Businesses are struggling to adapt • The risks of failing to adapt and potential responses • Who benefits from digital transformation • What are the benefits • New models and goals Why do digital transformation? 1. Businesses are struggling to adapt • Highstreet, consumer goods - blame online retailers • Managing legacy orgs (complex, large) • Customer expectations have risen: • We expect a seamless user experience when we request goods and services • Companies such as Apple have raised expectations regarding activating products straight from the box (we don’t even have to give an initial charge?) • 24/7, personalised treatments, seamless transactions, flawless UX – CX Why do digital transformation? 1. Businesses are struggling to adapt • Challenge appears great and overwhelming • Volatile, uncertain, complex and ambiguous (VUCA) environment • Data must be considered in terms of: variety, velocity, veracity and volume • But it must also have value through: • Timeliness – must be available when needed • Frequency – time cycle of activity is important • Accuracy – must be sufficiently accurate for the task • Completeness – complete information • Appropriateness – must be relevant to the specific requirements of the task • Understandability – information is of no use if it can’t be understood Why do digital transformation? 2. The risks of failing to adapt and potential responses • Typing pools – audio typists…. Online publishing, print on demand… • Encyclopaedias • Analogue photography, Kodak • Video rental • Banks…. Why do digital transformation? Activity: Spend some time discussing with colleagues how autonomous vehicles will impact existing businesses. Specifically, write down your thoughts and also answer the following questions: • Which industries will be affected and why? • How will existing vehicle industries change? • Which ancillary industries will be affected (e.g. delivery, garages, rental) and how? • Which existing services could become obsolete? • How could those services embrace digital transformation to succeed? School name here and Presentation Title Pause Why do digital transformation? Activity: Spend some time discussing with colleagues how autonomous vehicles will impact existing businesses. Specifically, write down your thoughts and also answer the following questions: • Which industries will be affected and why? • How will existing vehicle industries change? • Which ancillary industries will be affected (e.g. delivery, garages, rental) and how? • Which existing services could become obsolete? • How could those services embrace digital transformation to succeed? Industries Other Than Auto That Driverless Cars Could Turn Upside Down Why do digital transformation? 3. Who benefits from digital transformation • What are consumer expectations in 2019 for services and goods? To which industries does this not apply? • Consider a rural dairy, milk delivery service . • Does it need digital transformation? Activity: Can digital transformation help this business? How? Write down 5 ways this business can benefit from digital transformation, and 5 ways it can benefit the customer. School name here and Presentation Title Pause Why do digital transformation? Some thoughts on how this business may benefit from digital transformation: 1. Online presence and SEO helps customers find the business 2. CRM system automates billing transactions, customers able to view order history, billing etc. 3. Identify likelihood for additional suppliers or cattle when customer base reaches set level 4. Delivery optimised via GPS route planning/tracking to customers 5. Customer refrigerator processes data continuously - places orders for product – adapts to variable usage Why do digital transformation? Whilst some of this may at first seem unnecessary or gimmicky, it is worth noting that almost all aspects enhance the customer experience. If you still doubt the value of these, then take a look at the transformation occurring in banking… Monzo vs offline banking Why do digital transformation? Why do digital transformation? 4. What are the benefits • Better data, understand the business and market • Knowledge sharing • Identify broken processes and/or streamline • Fast access to accurate and relevant data (think 4Vs) • Labour saving (digital duplication, comms. etc) Why do digital transformation? 5. New goals and approaches • Addresses the challenges of VUCA • Not just efficiency, also must benefit people and be people-orientated • Key message: it is not technology itself that creates or drives strategic digital transformation. It is the application and exploitation of these technologies. • Change management 4 - Digital transformation and organisational change Neil Malone The Data-driven Organisation Let’s recap on what makes a data-driven organisation: • The organisation has high levels of confidence in its data, processes, hardware and software • The organisation’s processes and operations manage the 5Vs • Data is the basis for all decision-making • Ultimately, the data-driven organisation knows its clients/customers/stakeholders and is human-centric Organisational Change Organisational change will be required for many digital transformation projects. Many of the core ideas resonate deeply with digital transformation: • Learning to behave differently, often cultural shift • To achieve a new and improved outcome • Often by changing the systems, structures and processes that drive behaviour • It is a departure from existing practice • Implies move towards ideal goal/vision, away from current attitudes Organisational Change Successful change requires: • Definite goals and a means for measuring success • Clear roles and levels of involvement determined • Specific actions to initiate, transition and complete the change • Resources required and availability • Comms methods, leadership style and influence Final activities 1. Valve is a computer software and videogame company. Take a look at the staff handbook and answer the following questions: a) Would you consider this approach to work typical of a company with 400 staff? Why? b) How is their culture is different from what you would expect in a more traditional business. 2. Watch the video by Martin Danoesastro . Write down the 3 most important or interesting points you think he makes about how successful organisations can operate to manage change. School name here and Presentation Title Thank you!