digital readiness - how well prepared are german brands for a digital future?
TRANSCRIPT
DIGITAL READINESS How well prepared are German brands for a digital future? Key results of the study Ι Munich February, 2013
Page 2!
SOME OPEN TODOS
Page 3!
Digital Readiness is the extent to which an organization combines • top management’s awareness and
advocacy for digital topics with • the adoption of digital marketing
tools and processes which are • effectively used to increase
customer agility and drive digital change across the entire value chain
„ „
Page 4!
DIGITAL READINESS DRIVES CUSTOMER AGILITY AND FIRM PERFORMANCE
Page 5!
Firm Performance
3 1 2
Customer Agility
Digital Adoption
Top Management
advocacy
• Digital awareness and adoption
• Digital marketing & sales tools, processes and know-how
• Marketing leadership
• Revenue growth • Profitability • Market share
• Sensing dynami-cally changing customer needs
• Responding quick-ly and appropri-ately on product and service level
• Digital topics on top management agenda
• Top management know-how
Digital Readiness
Customer Agility
DIGITAL READINESS DRIVES FIRM PERFORMANCE
Page 6!
Top Management
Advocacy
Digital Adoption
Marketing
Customer Sensing
Customer Responding
Firm Performance
88%
66%
25%
45%
45%
DIGITAL LEADERS, FOLLOWERS, LAGGARDS
Top Management Advocacy calculated through mean value of Top Management Advocacy question set: low = X ≤ 3; middle = 3 < X ≤ 4.5; high = 4.5 < X ≤ 5 Customer Agility calculated through mean value of Customer Agility question set: low = X ≤ 3; middle = 3 < X ≤ 4.5; high = 4.5 < X ≤ 5
DIGITAL LAGGARDS (n=94; 30,7%)
DIGITAL LEADERS (n=80; 26,1%)
DIGITAL FOLLOWERS (n=132; 43,1%)
HIGH
LOW
LOW HIGH MIDDLE
MIDDLE
Customer Agility
Top
Man
agem
ent A
dvoc
acy
Page 7!
THE ROLE OF TOP MANAGEMENT
Page 8!
= Leader = Follower = Laggard
Digital Vision
A culture of digital change
(n=306), denoted is share of top two answers*
98% 98% 82%
67%
28% 15%
Digital topics are regularly part of our
management agenda.
Our top management can draw on extensive know-
how regarding digital topics.
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
DIGITAL ADOPTION IN MARKETING & SALES
Page 9!
Digital Marketing & Sales Tools
We have developed digital strategies regarding… denoted is share of top two answers*
93% 92%
76% 84%
92% 79%
73% 69% 62%
42% 40% 31%
Website Mobile Social Media Innovation / generating ideas
n=285 n=286 n=277 n=288
= Leader = Follower = Laggard
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
DEFINITION OF CUSTOMER AGILITY
Page 10!
Customer Sensing Capability
Customer Res- ponding Capability
98% 95% 88%
78%
29% 18%
We are able to recognize changes in customers' needs
and desires early on.
We immediately implement changes once we recognize customers' dissatisfaction
with our products or services.
Sensing and Responding capabilities (n=306), denoted is share of top two answers*
= Leader = Follower = Laggard
* on a 5-point Likert scale ranging from 1 = „Does not apply at all“ to 5 = „Fully applies“; significant differences between groups at the 5% level regarding mean answer
PERFORMANCE DIFFERENCES BETWEEN LEADERS, FOLLOWERS AND LAGGARDS
= Leader = Follower = Laggard
Self assessment of companies compared to strongest competitors (n=306), denoted is share of top two answers*
75% 75%
90% 83% 81%
60% 60%
76% 67%
60%
36% 30%
40%
22% 24%
Market share Profitability Customer satisfaction /
loyalty
Product and service innovation
Ability to attract and retain
qualified human resources
* on a 5-point Likert scale ranging from 1 = „Much worse “ to 5 = „Much better“; significant differences between groups at the 5% level regarding mean answer
Leaders outperform Followers and Laggards on all major KPIs and capabilities!
Page 11!
TOP 3 TAKEAWAYS
Page 12!
1. Digital Readiness drives more than 50% of firm performance
2. Without Top Management advocacy, digital remains communication 2.0 – instead of being a central driver for growth
3. Customer Agility replaces customer orientation - continuous integration of customers fosters innovation and generates new business models
CONTACTS FOR FURTHER INFORMATION
Page 13!
Coming soon: www.digital-readiness.com
Dr. Markus Pfeiffer Founding Partner Bloom Partners [email protected] +49 (0) 89 124 1395-10
Jörn Dickhaut Partner at Bloom Partners [email protected] +49 (0) 89 124 1395-20
Bloom Partners, Hohenstaufenstr. 1 80801 Munich, Germany www.bloom-partners.de
Bloom Partners, Hohenstaufenstr. 1 80801 Munich, Germany www.bloom-partners.de