stockholm: speed of change
TRANSCRIPT
Speed of change Stockholm Successful business in the digital age
#nordicspeed
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Åsa Tamsons, McKinsey
Anders Mittag, PostNord
#nordicspeed
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In 2014 PostNord delivered
5.9 billion letters and other shipments
110 million parcels
2.5 billion kilos of goods
to the Nordic region’s 25 million residents and 2 million businesses.
The leading communications and logistics company in the Nordic region
1,053
1,250
1,830
1,208
5,341 distribution points
Innovation
Salesforce CRM January 2014 Number of users 670 Extra add on’s Marketo Actimizer All over smooth business implementation due to high user friendly interface and good project management
Implementation
To allow our people to connect with our customers in a new way
Sell more to our Nordic customers, across countries and business units
Further enhance our customer satisfaction and brand consistency
Our vision
Collaboration
Sales performance
Performance Dashboards Transparent view across the organization
Increased sell / cross sell Identify Nordic Accounts and serve them
accordingly Cross border best practice sharing and
collaboration Nordic single way og working Manage Nordic customer Ability to create shared service organization and
support Will be an enabler and support the ambition to be
the Nordic partner
Benefits of a common solution
Rolf Hall & Lars Göransson, Salesforce
Sales Service
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Sales Service
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Hard to Grow Sales if Sales Process is Broken
Manual Processes
Hard to find information and experts
Time wasted on emails and approvals
Limited coaching and feedback
No lead routing or opportunity management
Lack of pipeline visibility
Poor data quality
Slow Sales Cycles
Missed Target
No Mobile Access
Hard to access information on-the-go
No way to access all your critical apps in one place
Hard to manage your day from anywhere
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Unhappy Customers
Difficult to Service Your Customers Everywhere
No context Not personalized
Inaccurate answers
Poor Customer Experiences
Siloed service channels
Multiple knowledge bases
No support for social
Inconsistent Service Across Channels
92% Companies reported decline in
Customer Satisfaction
Multiple service screens
No single knowledge source
Not connected to back-office
Low Agent Productivity
54% Agents must use multiple sources to
answer inquiries
86% Customers stop doing business after one negative interaction
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Do you know who your customers are?
Where are they in their journey?
Are you engaging and moving them along the journey?
Are you measuring the impact on your business goals?
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Build a single view of the customer Plan and optimize the customer journey Deliver personalized content across every channel and device Measure the impact on your business
Journeys Contacts Content Channels Analytics Apps
Martha Bennett, Forrester
Making Your Data Speak Martha Bennett, Principal Analyst
April 2015
© 2015 Forrester Research, Inc. Reproduction Prohibited 36
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
Guess which car service continues to be widely used? ›Cheaper
›More convenient
›Better service
“Uber-isation of all industries…”
© 2015 Forrester Research, Inc. Reproduction Prohibited 38
This is the world we live in …
© 2015 Forrester Research, Inc. Reproduction Prohibited 39
65% 55%
40% 30%
35% 45%
60% 70%
… and failure to embrace it is not an option
New companies in the Fortune 1000 Top 20
Source for chart on left: Built to Change: How to Achieve Sustained Organizational Effectiveness, 2006 *estimated
1973-1983 1983-1993 1993-2003 2003-2013*
Less than 15% of companies in the
original 1955 Fortune 500 list exist today
© 2015 Forrester Research, Inc. Reproduction Prohibited 40
Good To Great characteristics: not enough (bankrupt 2009)
(home mortgage scandal)
(improvements in past two years, but transformation from mail-based business remains work in progress)
(absorbed by P&G)
(received $25B from TARP)
(performed adequately)
(performed adequately) (performed adequately)
(only one in list to outperform)
December 2014: Investing in the portfolio of those 11 great companies covered in 2001 would result in underperforming the S&P 500.
© 2015 Forrester Research, Inc. Reproduction Prohibited 41
Focus & market dominance: not enough
(absorbed by DHL)
(underperforming — missed mobile market)
(net income fell 72% before company was taken private in 2013)
(underperforming despite repeated turn-around initiatives)
© 2015 Forrester Research, Inc. Reproduction Prohibited 42
Disrupt, adapt, reinvent – or be disrupted
© 2015 Forrester Research, Inc. Reproduction Prohibited 43
Digital dysfunction at executive level
Source: Forrester/Russell Reynolds 2014 Digital Business Survey
93% • Believe that digital technologies will disrupt their business over the next 12
months
74% • Claim the company has a “digital” strategy
33% • Think it’s the right “digital” strategy
15% • Believe they have the right people and skills to execute the strategy
© 2015 Forrester Research, Inc. Reproduction Prohibited 44
Photo © Martha Bennett
What are your customers really buying ?
… to selling film
From selling memories ….
© 2015 Forrester Research, Inc. Reproduction Prohibited 45
What do these companies sell?
46 © 2015 Forrester Research, Inc. Reproduction Prohibited
Key trend: selling an outcome Used to sell: › Aero engines › Air conditioning units › Lifts/Elevators › Cars › Agricultural machinery › Medical testing devices › Health insurance › Toothbrush
Now sell, or may in future: › Units of propulsion › The right temperature › Moving people/goods up/down › Ability to get from A to B › Optimum yields › Number of tests › Wellness program › Healthy mouth and teeth
© 2015 Forrester Research, Inc. Reproduction Prohibited 47
© 2015 Forrester Research, Inc. Reproduction Prohibited
Turn Data Into Business Insights More Deeper For Everyone
© 2015 Forrester Research, Inc. Reproduction Prohibited 49
Results need to be pertinent & trustworthy
© 2015 Forrester Research, Inc. Reproduction Prohibited 50
Business outcome
Data sources
Deeper insights
More data
For everyone
What business value do we want?
Who needs what insights for this?
What analysis tools do we need?
How can we manage all the data needed?
What data do we have?
How can we process that
data?
What can we learn from this
data?
How do we deliver
those insights?
What business value can we create?
What data sources do we need?
There’s no single right way to get there B
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© 2015 Forrester Research, Inc. Reproduction Prohibited
Making your data speak: 3 Cs to success Culture
• Data treated as an asset
• Data-driven • Data shared
across silos
Capabilities • Advanced data
management, delivery and analysis
Competency • Technology skills • Analytical skills • New approach to
data governance • Agile processes
Data at its most eloquent
© 2015 Forrester Research, Inc. Reproduction Prohibited 53
Focus on getting the basics right 1. Always start with a question that’s
linked to a business objective or known issue
2. Create an environment that supports collaboration, agility and short time to value
3. Having made your data speak, be prepared to do what’s needed
Thank you
McKinsey DigitalWinning in Digital
Salesforce.com Nordic conference
Presentation | April 23, 2015
11
1. What is causing the digital disruption?
2. How is the disruption playing out?
3. What challenges will businesses face?
4. How to address the strategic challenges?
5. How to address the leadership challenges?
Discussion today
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SET OF HARD TO REVERSE CHOICES YOU MAKE IN THE FACE OF UNCERTAINTY TO GENERATE PROFIT BY CAPTURING CUSTOMERS AND BEATING COMPETITORS
IT’S NOT ABOUT DIGITAL STRATEGY, IT’S ABOUT STRATEGY IN THE DIGITAL AGE
3
SUSTAINING PROFIT
4
SUSTAINING PROFIT
A. POSITIONAL ADVANTAGE
5
SUSTAINING PROFIT
A. POSITIONAL ADVANTAGE
B. PROPRIETARY ADVANTAGE
6
“THE MORE WE COMPETE, THE LESS WE GAIN.” – Peter Thiel
7
CONTROL POINT DISRUPTION
8
WHAT‘S CAUSING THE DIGITAL DISRUPTION?THE SECOND MACHINE AGE
1.
9
1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
UBIQUITOUS CONNECTIVITY
10
TRANSPARENT ACCESS TO DATA ON A MASSIVE SCALE
1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
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DECREASING COST OF COMPUTER PROCESSING POWER
1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
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HOW THE DISRUPTION IS PLAYING OUT?
2.
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2. HOW IS DISRUPTION PLAYING OUT?
CUSTOMER POWER IS PARAMOUNT
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…this year more unique information will be generated than during the
PAST 5,000 YEARS
…each month,
4 million man years
is spent online
…by 2016,
200,000 HRSof video will be
STREAMED EVERY SEC
…approximately
17 BILLIONdevices are connected to
the internet
…a smartphone is
1,000,000x cheaper
100,000x smaller
and 10,000x morepowerful than the
MIT computer in 1965
…average 21-year-olds exchanged
250,00010,000 HRSon a mobile phone
messages and spent
…the world's data centers consume ~1.5% OF
ALL POWER or little more
than 2x the power consumption of Sweden
2,378Number of websites worldwide in 1994
1,110,000,000
@
A NEW GENERATION EXPECTING DIGITAL BY DEFAULT…
2. HOW IS DISRUPTION PLAYING OUT?
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"Any screen will do" In store experiences polarising
Rise of the hyper-informed customer
Always on
Your world in your pocket You can own the customer experience … not the customer
Merging digital and physical
2. HOW IS DISRUPTION PLAYING OUT?
…AND BEHAVIOUR CHANGING RAPIDLY
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2. HOW IS DISRUPTION PLAYING OUT?
CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE
17
MONEY MOVES UNEVENLY
2. HOW IS DISRUPTION PLAYING OUT?
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NEW CAPABILITIES ARE NEEDED
2. HOW IS DISRUPTION PLAYING OUT?
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2. HOW IS DISRUPTION PLAYING OUT?
CHANGE HAPPENS FASTER
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CUSTOMER POWER IS PARAMOUNT
CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE
MONEY MOVES UNEVENLY
NEW CAPABILITIES ARE NEEDED
CHANGE HAPPENS FASTER
ECOSYSTEMS ARE REDRAWN
2. HOW IS DISRUPTION PLAYING OUT?
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2. HOW IS DISRUPTION PLAYING OUT?
MONEY MOVES UNEVENLY "Your margin is my opportunity"
Jeff Bezos
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2. HOW IS DISRUPTION PLAYING OUT?
A TRACTOR
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WHAT CHALLENGES WILL BUSINESSES FACE?
3.
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Rethinking your overarching strategy in light of industry fundamentals, trade-offs, and sources of advantage altered by digital disruption
Designing and implementing operational
digital initiatives, e.g., big data
enabled supply chain, mobile/
online stores, etc.
60%+ of CXOs don’t have a digital strategy or it does not link to the
broader corporate strategy
60%+ of CXOs aredirectly engaged in digital
business initiatives
Digital Transformation
Strategy in digital age
How to win
3. WHAT CHALLENGES WILL BUSINESSES FACE?
25
IT and the business don’t talk
Leadership are not digital natives
Resource re-allocation is tough
Legacy ways can seem like immovable barriers
You don’t have the talent you need
3. WHAT CHALLENGES WILL BUSINESSES FACE?
26
The leadership challenge
Embody the habit of successful digital
executives
The strategic challenge
Uncover the magic, be focused on where the real business value are, and be
granular with what you go after
The technology challenge
Set up your organization and capabilities to enable
fast changes
3. WHAT CHALLENGES WILL BUSINESSES FACE?
27
HOW TO ADDRESS THE STRATEGIC CHALLENGES?
4.
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CONTROL POINT DISRUPTION4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?
Product/service dev
Marketing & sales
Operations
IT
Finance & MIS
Risk mgmt
HR & org
Connectivity with customers, colleagues, suppliers and other stakeholders 1
Digital reputation management
Virtual co-making
Real-time supply chain
Social network risk analysis
‘Golden source’ MIS
On-demand processing power
Social network recruiting
Decision-making based on ‘big data’ and advanced analytics2
Next product to buy
Personalised product and service offerings
Dynamic workflow
Real-time automated decision makingReal-time financials
Dynamic hardware provisioning
Predictive resource management
Automation of manual activity, replacing labourwith technology3
Mobile channel
Virtual product testing
Straight-through processing
Automated testing
Paperless MIS
Sensor-driven maintenance scheduling
Self-service training
Behavioral pricing
Digitally augmented products
Crowd-sourced support
Cloud computing
Crowd-funding
Risk socialization
Virtual workforce
Innovation of products, business models and operating models4
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CONTROL POINT DISRUPTION4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?
Product/service dev
Marketing & sales
Operations
IT
Finance & MIS
Risk mgmt
HR & org
Connectivity with customers, colleagues, suppliers and other stakeholders 1
Digital reputation management
Virtual co-making
Real-time supply chain
Social network risk analysis
‘Golden source’ MIS
On-demand processing power
Social network recruiting
Decision-making based on ‘big data’ and advanced analytics2
Next product to buy
Personalised product and service offerings
Dynamic workflow
Real-time automated decision makingReal-time financials
Dynamic hardware provisioning
Predictive resource management
Automation of manual activity, replacing labourwith technology3
Mobile channel
Virtual product testing
Straight-through processing
Automated testing
Paperless MIS
Sensor-driven maintenance scheduling
Self-service training
Behavioral pricing
Digitally augmented products
Crowd-sourced support
Cloud computing
Crowd-funding
Risk socialization
Virtual workforce
Innovation of products, business models and operating models4UNDERSTANDING THE
OPPORTUNITIES AND YOUR CHOSEN PLAYS AS YOUR BUSINESS GETS RE-IMAGINED
30
4. WHAT DOES THIS MEAN FOR OUR APPROACH TO STRATEGY?
FRAME | DIAGNOSE | FORECAST SEARCH | CHOOSE | COMMIT | EVOLVE
New questions at each stage
▪ Are we being attacked or disrupted? Should we disrupt ourselves? ▪ If software is eating the world, how will it eat our business? ▪ How is our value chain transforming? ▪ Which players from outside our industry could now enter?▪ What will my workforce look like in 5 years’ time as automation and
machine learning play out?
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HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
5.
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A SET UNREASONABLE ASPIRATIONS
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What does this mean? What does this not mean? ▪ Board level digital "owner"▪ Stretching and coherent
digital vision▪ Value-oriented targets
(i.e., Digital P&L)
▪ Adding "digital" to existing responsibilities
▪ Uncoordinated digital initiatives▪ Digital interaction targets
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
33
B CHALLENGE EVERYTHING
33
What does this mean? What does this not mean? ▪ Challenge the status-quo▪ Go your own way▪ Involve regulators in
change
▪ Accept historic norms▪ Follow others▪ Put your head in the sand
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
34
C OBSESS ABOUT CUSTOMERS
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What does this mean? What does this not mean? ▪ Learn from every inter-
action with the customer▪ Relentless iteration of
customer experience
▪ Infrequent aggregation of customer insights
▪ Ad-hoc patching of customer processes
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
35
D FOLLOW THE MONEY
35
What does this mean? What does this not mean? ▪ Zero-base tech budget
aligned with value at stake▪ Invest in digital across the
value chain▪ Scale success quickly
▪ Incremental spend in line with last year’s budget allocation
▪ Focus digital effort only on customer facing functions
▪ Pilots never rolled out
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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E BE QUICK AND DATA DRIVEN
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What does this mean? What does this not mean? ▪ Continuous proposition
iteration▪ Live beta▪ Golden source of truth
▪ 12 month release cycles▪ Quarterly investment boards▪ Multiple customer records
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
37
F ACQUIRE CAPABILITIES
37
What does this mean? What does this not mean? ▪ Buy scarce talent en-masse▪ Move into adjacent markets▪ Hire for skills, not industry
experience
▪ Add resources one-by-one▪ Random buying spree▪ Recycling talent from industry
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
38
G RING FENCE TALENT
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What does this mean? What does this not mean? ▪ Protect digital talent from
business-as-usual▪ Digital talent management
▪ Embed digital in existing businesses
▪ Retrofit existing HR model
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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Set unreasonable aspirationsA
Challenge everythingB
Be obsessed with the customerC
Follow the moneyD
Be quick and data drivenE
Acquire new capabilitiesF
Ring fence and cultivate digital talentG
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
40
Digital changes value chains and enables new business models
DO DIFFERENT THINGSDigital changes the traditional way of doing business
DO THINGS DIFFERENTLY
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AS FINAL WORDS:“LOOK UP AND LOOK OUTDOCTOR HEAL THYSELF”