B R A N D 2 . 0 : T H E D I G I T A L I M P E R A T I V E1

The DIGITAL

BRAND 2.0

imperat ive 29th Februar y 2016

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the wor ld i s changing faster than anyone could have predicted…

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the wor ld i s changing faster than anyone could have predicted

and for establ i shed brands i ts hard to keep up…

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the wor ld i s changing faster than anyone could have predicted

and for establ i shed brands i ts hard to keep up

…let a lone lead.

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ra ised $ 2 5 0 , 0 0 0

in just 4 hours

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valued at $1 B I L L I O N

in just 12 M O N T H S

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Your new competition is 25

years old

Had their disruptive idea yesterday

And will be in market this time next year.

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of S&P 500 index companies wi l l be new by 2027

34

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2004 2006 2008 2010 2012 2013

1 1 1 1 1 1

2 2 2 2 2 2

3 3 3 3 3 3

4 4 4 4 4 4

5 5 5 5 5 5

6 6 6 6 6 6

Technology

Market

Macro-economic

People skills

Regulatory concerns

Socio-economic

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Chess, like business, is a balance between the mundane and the unthinkable. Each move has game changing consequences, sometimes you must win by doing the right thing each time. One ill- considered move or non move, seemingly inconsequential at the time can leave you hopelessly behind.

But at Grandmaster level we all think 25 moves ahead and are familiar with every nuance of the game. The only way to win at that level is to do the unthinkable, something that explodes the game and upends my opponent’s thinking.

Garry Kasparov Chess Grandmaster & World Champion

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Is this the answer?

ACT LIKE A START UP

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a balancing act

STEADY

LOGICAL CONSISTENT

PREDICTABLE

DISRUPTIVE

RISK TAKING

UNPREDICTABLE

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most of us are here

STEADY

LOGICAL CONSISTENT

PREDICTABLE

DISRUPTIVE

RISK TAKING

UNPREDICTABLE

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Establ ished Enterpr ise

Execute existing business model

Operational excellence

Satisfy existing customer needs

S tar t up

Establish new business model

Prove profitability

Meet new or unmet needs

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Establ ished Enterpr ise

Execute existing business model

Operational excellence

Satisfy existing customer needs

S tar t up

Establish new business model

Prove profitability

Meet new or unmet needs

Follow established processes

Take leadership direction

Good at execution

Break the rules

Question authority

High tolerance for failure

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ESTABLISHED ENTERPRISE

Business as usual

Efficiency & Scale

Known results

START UP

Digital disruption

Exploratory & High reward

Unexpected results

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sweet spot

STEADY

LOGICAL CONSISTENT

PREDICTABLE

DISRUPTIVE

RISK TAKING

UNPREDICTABLE

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digita l & agi le dr iv ing across the organisat ion

matur i ty

TECH DIGITAL MARKETING BUSINESS WIDE

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do you have an agi le 21st centur y mindset?

ADAPT

Accept change by being flexible to experiment with organisational structures, process & tech

Dare the status quo by demonstrating leadership to push for innovation and create new brand experiences

Act continuously by making speed a priority when it comes to dealing with customers and using new channels

Tear down boundaries by creating incentives for people to join forces in new ways and empowering them with tools to collaborate

Participate personally by taking ownership to empower every person in the organisation to shape solutions

Complacency

Conformity

Analysis paralysis

Silos of knowledge

Hands-off management

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i t i s di f f icul t to untangle agi l i t y f rom innovat ion.

of ten they are intr ins ica l l y l inked.

“

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the focus on digi ta l i s to INNOVATE

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BUSINESS d igi t i s ing

your

old thinking

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BUSINESS TRANSFORMATION

d igi ta l disrupt ion through

new thinking

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profit model

network structure process product performance

product system

service channel brand customer engagement

configurat ion exper ienceoffer ing

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profit model

network structure process product performance

product system

service channel brand customer engagement

hardest hardharder

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profit model

network structure process product performance

product system

service channel brand customer engagement

S tar t up innovate through the stack

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profit model

network structure process product performance

product system

service channel brand customer engagement

Establ ished Enterpr isefocus on areas easier to change

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so what are the big chal langes?

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LEGACY TECHNOLOGY 1 of 6

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POWER

STRUGGLE

2 of 6

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ORGANISATIONAL SILOS

ORGANISATIONAL SILOS 3 of

6

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4 of 6

INNOVATOR’S DILEMMA

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5 of 6

DISRUPTING YOUR OWN BUSINESS

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6 of 6

DIGITAL SYNDROME

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FASHIONISTAS

Transformation Management intensity

Dig

ital

int

ensi

ty

BEGINNERS

DIGIRATI

CONSERVATIVES

“ The Digita l Advantage: How leaders outper form their peers in ever y industr y ” Capgemini Concult ing / MIT S loan. November 2012

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so what to do?

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STRATEGY

PEOPLE

PROCESS

DATA & TECHNOLOGY

4 areas o f f ocus

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DIGITAL MOMENT?have you had your

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DIGITAL defaultby

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DISPERSED

integrat ing digi ta l

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DISPERSED CENTRE OF EXCEL LEN CE

integrat ing digi ta l

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DISPERSED CENTRE OF EXCEL LEN CE

HUB & SPOKE

integrat ing digi ta l

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DISPERSED CENTRE OF EXCEL LEN CE

HUB & SPOKE MULT I P LE HUB & SPOKE

integrat ing digi ta l

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FUL LY INTEGRATEDD ISPERSED CENTRE OF EXCEL LEN CE

HUB & SPOKE MULT I P LE HUB & SPOKE

integrat ing digi ta l

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FUL LY INTEGRATED

D ISPERSED

CENTRE OF EXCEL LEN CE

HUB & SPOKE

MULT I P LE HUB & SPOKE

matur i t y model

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CENTRE OF EXCEL LEN CE

GOVERNANCE & CONTROL

FOCUS, EMPHASIS & CLARITY

CONSISTENCY, EFFICIENCY & SCALABILITY

LACK OF INTEGRATION IN ACTIVATION

BARRIER TO WIDER SHARED LEARNING

POOR FOCUS ON DISCRETE NEEDS

ADVANTAGES DISADVANTAGES

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balancing digi ta l

d isrupt ion70:20:1070% HORIZON 1

Know

ledg

e of M

arke

t

Knowledge of Digita l & Technolog y

Optimisation, Enhancement and

Cost reduction

Existing Market

we serve

Existing Technology we use

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balancing digi ta l

d isrupt ion70:20:1070% HORIZON 1

Know

ledg

e of M

arke

t

Knowledge of Digita l & Technolog y

Optimisation, Enhancement and

Cost reduction

Existing Market

we serve

Existing Technology we use

20% HORIZON 2

Next generation products

Adjacent growth

Existing Market we don’t serve

Existing Technology we do not use

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10% HORIZON 3

New category products & services

Exploration with new

technologies

Exploration into new markets

New Market

New Technology

4 7

balancing digi ta l

d isrupt ion70:20:1070% HORIZON 1

Know

ledg

e of M

arke

t

Knowledge of Digita l & Technolog y

Optimisation, Enhancement and

Cost reduction

Existing Market

we serve

Existing Technology we use

20% HORIZON 2

Next generation products

Adjacent growth

Existing Market we don’t serve

Existing Technology we do not use

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accelerat ion through labsFAST TRACK DIGITAL INNOVATION

OPERATE OUTSIDE CORE BUSINESS

PUSH R&D IN STARTEGIC AREAS

MAINTAIN STARTUP CULTURE

ATTRACT TOP TALENT

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accelerat ion through labs

CLEAR FOCUS FOR INNOVATION

DEDICATED RESOURCE

ABILITY OPTIMISE & ACCELERATE

NEEDS SENIOR SUPPORT

RELIANT ON EXTERNAL BUDGET

RISK OF ISOLATION

ADVANTAGES DISADVANTAGES

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lean teamsSMALL

MULTIDISCIPLINARY

EMPOWERED

FOCUSED

COMMUNICATIVE

FLEXIBLE

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what a lab team looks l ike

Physical Digital

Touchpoint APIBusiness Model Transformation

Innovation Lead

Artificial Intelligence &

Machine Learning

Emerging Tech & Tends Scout

Machine to Machine API

Logisitics Lead

Customer Experience

Maker / IoT

Data Mining & Intelligence

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Prepare for digital invaders

Create a panoramic perspective

Be first, best best or be nowhere

prepar ing f or di srupt ion

DIGITAL BUSINESS TRANSFORMATION 54

THINK BIG ACT SMALL LEARN FAST

a phi losophy to fol low

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TR IAGE

making ideas a rea l i t y

DES IGN TH INK ING SPR INT RAP ID

PROTOTYP ING ACCELERATE

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the Beta pr inciple

SKIP PERFECTION LAUNCH EARLY &

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DATA5 7

CAPTURE INTERPRET ACT

data enabled digi ta l s t rateg y

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how mature i s the thinking from the top?

UNCONVINCED

01

CONVINCED. LOW KNOWLEDGE

02

GOOD KNOWLEDGE. ENGAGEMENT

03

FULLY INTEGRATED

04

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UNCONVINCED

01

CONVINCED. LOW KNOWLEDGE

02

GOOD KNOWLEDGE. ENGAGEMENT

03

FULLY INTEGRATED

04

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making digi ta l disrupt ion happen

CONFUS ION

ANXIETY

REASSURANCE

FRUSTRAT ION

SUCCESS

FALSE STARTS

=

=

=

=

=

=

ACT ION P LANRESOURCESINCENT IVESSK I L L SV I S ION

ACT ION P LANRESOURCESINCENT IVESSK I L L S

ACT ION P LANRESOURCESINCENT IVESV I S ION

ACT ION P LANRESOURCESSK I L L SV I S ION

ACT ION P LANINCENT IVESSK I L L SV I S ION

RESOURCESINCENT IVESSK I L L SV I S ION

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the potent ia l

of technology

TECHNOLOGY LITERACY

the integrat ion of technology

the appl icat ion of technology

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customer centric

technology literate

visionary

adaptive & agile

data driven

continually learn

commercially minded

innovative & entrepreneurial

open

TO LEAVE TODAY THINK ABOUT

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thanks… questions?kieron leppard

kleppard@sapient.com uk. l inkedin.com/in/kieronleppard