demystifying digital transformation€¦ · the term “digital transformation” is gaining...
TRANSCRIPT
Demystifying digital transformation
Growth Architects
Introduction
The term “digital transformation” is gaining momentum, and has been dubbed as the “buzzword of the year”, but can you confidently say you understand what it means?
Technology plays a critical role in an organisation’s ability to evolve and continue to provide value to its employees and customers, and digital transformation provides the vehicle to help CIOs, digital marketing managers and business owners achieve this.
I’ve written this guide to demystify the confusion surrounding digital transformation and enable you to fully take advantage of it.
By reading this guide you’ll learn:
• What digital transformation actually is
• The benefits of it and why you should care
• How it works for other companies
• How it can work in your business
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If you’re not experimenting and if you’re not asking questions about how your organisation is navigating and plugging into disruption, forming new ecosystems, and tapping into open markets, then your organisation is at riskAndrew Vaz,Global chief innovation officer Deloitte
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“In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate.”(Jeff Bezos, Amazon founder)
Statistics and factsDigital transformation
More than a third of organisations (44%) have already started implementing a digital-first approach to business processes, operations and customer engagement (IDG).
70% of companies either have a digital transformation in place or are working on one (Tech Pro).
85% of enterprise decision makers believe that if they don’t make serious progress on digitally transforming their businesses in the next 24 months, they’ll fall behind the competition and take a hit on their bottom line.
The IDB has predicted that 40% of all technology spending will go towards digital transformations.
44% 85%70% 40%
Digital transformation is the integration of digital technologies into a business to create changes and improvements to operations and deliver value for employees and customersOrigin
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What is digital transformation?
Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements (Salesforce).
An example of this is leveraging social media and chatbots as a business. Chatbots have replaced traditional forms of customer service such as call centres and provide customers with instant assistance, something that has become expected in our on-demand economy.
Social media has also become a platform for customer service, whilst also amplifying feedback for other consumers to see. Previously, consumer awareness was a result of traditional marketing methods such as print advertising and word of mouth.
This demonstrates digital transformation and how business processes have become more efficient and customer-centric as a result of adopting new technologies.
It can be difficult to pin down what digital transformation really is, as it’s different for every business.
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For digital transformation to truly work, the whole business in question must adopt the new practices and be fully on board with the changes introduced, as 71% cite the workforce as either very or extremely important in supporting their digital transformation strategy (Industry Week).
Greg Verdino, digital transformation keynote speaker, describes it as “Closing the gap between what digital customers already expect and what analogue businesses actually deliver.”
This reinforces the concept that digital transformation is about putting customers at the forefront of business strategy.
So why do people choose to digitally transform their business?Well, it’s simple really. To evolve, remain competitive and survive.
What is digital transformation?
RemaincompetitiveEvolve Survive
What is digital transformation?
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At Origin, we define it as…
“The integration of digital technologies into a business to create changes and improvements to operations and deliver value for employees and customers.”
It’s also about strengthening or replacing archaic, slow, often manual processes with more efficient, user friendly and often automated processes.
And, for us as an agency, it’s clear how digital transformation has impacted the marketing industry.
Traditional Marketing Channel Digital Marketing Channel Transformational Impact
Print materials Digital materials Reduce cost of print and distribution; ability to score/grade prospects based on digital interactions
Print mail campaigns Email campaigns via automation tools
Reduce cost of print and postage; greater scale and personalisation
Print/billboard advertising Social media advertising Personalised targeting and audience segmentation
High street stores Website/eCommerce site Website/eCommerce site Eliminate rent/utilities; accessibility and scale; opportunity to nurture prospects at scale
Loyalty Schemes/Cards Mobile App Reduce signup friction; reduce cost of printing cards; ability to personalise promotions and trigger offers in real-time; opportunity to push offers and messaging out to customers
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Digital transformation is a significant project to execute and many businesses are still resistant to change. But businesses that embrace digital innovation can expect the following:
Improved efficiency – Replacing legacy processes with automated workflows improves efficiency and flexibility.
Streamlined processes – Businesses can evolve their existing infrastructure or completely overhaul it with technology that seamlessly integrates and doesn’t disrupt operations.
Improved customer satisfaction – Greater efficiency and tools designed with customer experience in mind results in happy customers and improved retention.
Continuous improvement - Businesses that implement a digital transformation strategy have greater insight into what’s working and are better equipped to develop new products and services.
Reduced risks – An agile approach to digital transformation reduces the margin for human error and ensures nothing slips under the radar.
As businesses become increasingly IT intensive, these benefits are key to innovation and remaining competitive across all industries.
Digital transformation
benefits
Benefits of digital transformation and why you should care
Improvedefficiency
Streamlined processes
Improved customer satisfaction
Continuous improvement
Reduced risks
Digital transformation use cases
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Customer experience
Operations Culture and leadership
Workforce productivity
Digital technology integration
An organisation will turn to digital transformation to improve an aspect of their business that is cumbersome and no longer working.
This could involve the below elements…
So, what does digital transformation look like in practice?
Below, we’ve identified a few examples of digital transformation.
1. Marketing industry There are many digital transformations that have taken place in marketing practices, and a popular one that businesses have adopted is transforming offline marketing to online, digital marketing.
Over the recent years we’ve seen a huge decline in activities like print marketing and billboard advertising. This “blanket” marketing approach focused on reaching out to the masses and businesses hoping that customers see their adverts and decide to make a purchase.
Today’s marketing activities focus heavily on taking a “one to one” approach and use digital technology to give customers what they actually want. Common tactics part of a digital marketing approach includes social media which helps businesses communicate directly to their audiences, online advertising which focuses on prospect demographics to target specific sets of people and utilising online tracking and analytics to identify what prospects find most interesting on your website.
This is a prime example of digital transformation as it shows how businesses have adapted to consumer needs by utilising technology. And, online marketing helps businesses reduce costs associated with print and distribution and tailor marketing efforts to specific customers – something which wasn’t achievable with offline communications.
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2. Retail industry The retail industry has been radically transformed thanks to digital technology, and it’s impacted both the instore and online consumer experience.
And, the sector has had to transform its ways of working, as consumer shopping habits have changed.
In bricks-and-mortar stores we’re seeing self-service checkouts reducing the need for long queues and physical checkout staff, cashless and card-less checkouts with the likes of ApplePay, and customers can order online and pick products up from their local store the next day.
In addition, online stores have introduced AI-powered chatbots to replace customer service call centres, consumers are able to virtually “try on” products and see things like furniture items in their homes with augmented reality and retailers are able to track consumer spending habits and personalise the communications they send to increase their sales.
3. Finance industry The shift to digital technology has been dramatic for the financial services industry. If we look back 30+ years, the “physical” branch was king, and the industry relied on building relationships with its customers.
Then, in the 1980s, ATMs were introduced, which kickstarted the sectors digital transformation. Next, the internet arrived and so did online banking, something which we all take for granted today.
Now, consumers have everything they need on their smartphones – from online balances, to mortgages and loans and we can transfer money across to different accounts with zero human interaction. This has meant that consumers have all the same services that they did in the branch, but on the go via multiple devices which can be accessed anywhere, at any time.
Digital transformation use cases
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Closing the gap between what digital customers already expect and what analogue businesses actually deliver Greg Verdino,Digital transformation keynote speaker
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Our work with Xoserve and their customers is helping to simplify the gas industry by digitisation and is modernising how they work with data.
Xoserve, the central data service provider for Britain’s gas market, needed an agency that could develop its online strategy and design and deliver a new website that improved its efficiency, speed and supported additional features to help manage workflows.
The big challenge was that the business needed it up and running in an extremely short timeframe. Britain’s gas market is very complex, and it relies heavily on the work that Xoserve does, so the project needed to be completed without any disruption and minimum downtime.
Case study Simplifying the gas industry
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Origin embedded their team with ours to make the project a success, and we really appreciated all the training and support they gave us to get everyone on board with the changes.
The new site has transformed the way we work, improved our customer relationships and reduced site admin time. Overall, the project has been a huge success.Andrew PooltonDigital Project ManagerXoserve
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Our approachKicking off with our opportunity review, we worked closely with Xoserve’s key stakeholders to understand its business and map out and identify its customers’ biggest challenges and pain points. From there we're able to develop a dedicated information architecture (IA) and user experience (UX) strategy to make its site customer centric, creating lo-fi wireframes to test out the user journeys.
Hi-fi designs were then quickly developed and set up in XD as working prototypes allowing us to demonstrate how the UX/UI interacted between desktop and mobile environments. This allowed the client to sign off the UX/UI in one go, saving valuable time.
We built the website in our preferred CMS Umbraco, which meant we had full flexibility to interpret the Hi-fi designs and create a website that would work exactly the way it was intended by the design team. The results: a responsive, accessible website that is simple for customers to use and easy for our clients to update.
With the website up and running, our team took on a supportive role to ensure that all updates and maintenance is carried out on time and the site continues to work at its optimum levels.
The support we’ve given to Xoserve has helped us create a long-term working partnership with the business, and we’re currently helping them develop an on-going digital transformation strategy for 2020.
Case study Simplifying the gas industry
COMMUNICATION TO CUSTOMERS
EFFECTIVEAWARENESS OF
XOSERVE SERVICES
INCREASEGAS INDUSTRY BY
DIGITISATION
SIMPLIFY
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Stakeholder workshop
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Customer journey
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Lo-fi / hi-fi wireframes
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Responsive website
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Improving internal communications…After the completion of the website project, Xoserve wanted to ensure the rest of its business was working effectively and approached our team to complete a full communications audit.
To begin, we conducted interviews with the key stakeholders and the BDM’s to help us understand where improvements were required. The research revealed that customers preferred to communicate with the business through digital channels as they felt more comfortable working online. There were many manual processes still in place which customers found very time consuming and clunky.
In addition, customers wanted richer information and for it to be more readily available at their fingertips. This included improving the flow of information internally, allowing information to be shared, so customers became better informed.
To tackle these issues, we mapped out our findings and developed a tactical communications improvement plan to improve the customer comms strategy and boost its Net Promoter Score (NPS). This allowed us to start implementing the process of digitisation.
Xoserve
Communications Audit
2019
Growth Architects
Case study Simplifying the gas industry
OF ADMIN FOR SUBMISSIONS
REDUCTION COMMUNICATION BETWEEN CUSTOMERS
& XOSERVE
BETTERCUSTOMER ENGAGEMENTIMPROVED
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Digitising manual processes / Change packsPhase 2 of our work with Xoserve was focused on the creation of its “change packs” where we reviewed an existing and convoluted manual process which handled customer change requests via email.
We conducted an opportunity review with the internal Xoserve team and broke down the existing workflow between its customers and administration team. From this, we were able to decipher the most effective workflow that was compatible with its existing infrastructure, and we identified the most appropriate technology required to provide the solution for its administration team and customers user experience.
This project helped Xoserve save time spent updating and consolidating data into one single file, and it reduced admin time for its customers that was previously spent manually completing questionnaires.
Case study Simplifying the gas industry
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Lo-fi / hi-fi wireframes
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Change pack 1 & 2
INTERACTIVE GRAPHENGAGEMENT
CUSTOMER DATA REQUESTS
REDUCTIONDATA FEEDS FOR
LIVE DATA
AUTOMATED
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Digitising manual processes / UIGIn addition to analysing existing department or team workflows, we identified how Xoserve was sharing raw UIG data in spreadsheets with its customers. While this approach gave the customers the data they needed, it wasn’t user-friendly, and the data shared was difficult to read. We proposed that the UIG data could be displayed in interactive graphs on a dedicated section of its website.
When our concept was signed off by the Xoserve team, we set to work to make this a reality. We had to work closely with its IT and security teams to create a secure process for the data to be sent from internal systems to a server location to allow it to be collated and displayed in the graphs.
Once we were able to do this we designed and developed the interactive UIG graphs and introduced functionalities that allowed users to refine the data based on date ranges and calculate averages. This change gave Xoserve’s customers a platform to easily view and understand the data, which helped them save time and effort trying to make sense of it manually.
Case study Simplifying the gas industry
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Lo-fi / hi-fi wireframes
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UIG
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At Origin we understand how to use digital technologies to enhance our clients’ infrastructures and ecosystems and improve experiences for end users of systems.
We have a specialist technology team that are experts in user experience, customer experience, and website design and development.
You can find out more about our services here.
Contact Origin’s digital team todayTo find out how our digital team can support your business today, just drop us an email on [email protected] or call our head office on 01926 422002.
Or, you can connect with me on LinkedIn www.linkedin.com/in/philip-davies/. Phil Davies, Digital Project Manager at Origin.
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