Grab ‘n Go: Session 7

Find Holger: Digital transformation

med kunden i centrum
19. maj 2016
Linking the presentation to the first Grab ‘n Go session

Digital business
models and
services

Intelligent Digital
Digital
process customer
innovation
automation experience

Data-driven
insight

© 2015 Deloitte 2
Agenda

© 2015 Deloitte 3
Agenda

© 2015 Deloitte 4
© 2015 Deloitte 5
 Observation #1: Create value
Over time, most companies get better and better
at things that people want less and less.
Observation #2: Remove friction
If you do not make life easier for your
customers, someone else will
 Observation #3: Jobs-to-be-done
Don’t sell products and services to customers,
but rather try to help people address their
“jobs-to-be-done”
 Observation #4: Don’t underestimate
your customers…..
Customers can be many things; stupid, irrational,
demanding, self-centered – but you need them…

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Agenda

© 2015 Deloitte 10
 The 4 P’s – the marketing mix
• Product
• Price
• Place
• Promotion
Jerome McCarthy 1960

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 Awareness Interest Desire Action-Buying
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Daily shopping experience
 First virtual
supermarket
launched in Korea
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Customer centric approach

Customer Business Business re- Competency Implementation

insights strategy design build up and transition

• Explore data insights • Establish link to Corporate • Business process • Project definitions • Program and project
• Establishment of data strategy alignment • Setting of metrics KPI execution
strategy • Customer value case – • Data model • Attracting core • Organizational change
• Predictive modeling not business case.. • Organizational model competencies management
• Calculate Return on • Digital strategy and digital • Customer touch points • Development plan • Infrastructure
customers transformation model • Organization and transition
• Life Time value of • Fit/GAP and road mapping • Marketing/communication project method • Data and process
customers • Create your digital model • ……. ownership
• Loyalty and retention customer radar • Sales and service model • Ongoing quality
analysis • …… • Infrastructure model assurance
• Fraud detection • Service, experience, • …….
• Forecasting solution and product
• Social Media innovation
engagement • …….
• Customer testing
• ……
The Seven Characteristics of Customer-Centric Companies

1. They conceive of themselves not as a group of products, services, territories, or functions, but as a portfolio of
customers.
2. They know how much money they make or lose with each of their customers or customer segments, and they
understand why.
3. They understand the different needs of different customers and group them into operational customer segments
and sub-segments based on common needs. They thrill their customers by delivering knockout value propositions
that competitors cannot match.
4. They continually innovate by evolving their customer segments and sub-segments, and improve their value
propositions as customer needs change.
5. They organize their businesses into customer segment business units to establish clear ownership of the customer
experience and accountability for the financial performance of each customer business unit.
6. They create a competitively unassailable customer innovation advantage based on a customer R&D model
grounded in continual experimentation at key customer touch points.
7. They understand in precise analytic terms exactly how their different customer relationships contribute to or
subtract from the total value of the firm; because they manage their customer portfolio on this basis, they know
what to manage and where to invest in order to create sustainable, profitable growth and drive outstanding share
price performance over time.
 The digital mega trends 17

Mobile
• Mobile creates new ways of engaging with customers High
and vendors
3D Printing Big data
• Sensors allows to capture data in all steps in the value Mobile Robots
chain Personal Internet of Things
Data
• Ability to monitor actual behavior on vendors and Analytics

Direct impact on clients

customers
NFC Advanced
Mobile Networks
analytics on
Data Technology
enterprise
Standardization
• The amount and accessibility of data in combination &
Sensoring data
with analytics allows for new insights Predictive
Consolidation Analytics
• Integration to operational processes and real time
creates opportunities for applying analytics in retail Digital Currency Social Analytics
Cloud

Social
Social Augmented Collaboration
• Business need to leverage the potential in the Reality Crowdsourcing
collaborative technology and need to open up to & Funding
new vendor and stakeholder management Low
• Pop up shops – increase in short term and specific Low Direct impact on Consumer Goods High
store setups targeting specific audiences
• Engage with customer in emotional ZMOT`s to
create relationships Megatrends: Data Mobile Social Cloud
Understanding the behavior and needs is the key

The customers’ data DNA

Client website Call/Text

App Usage Clickstream Usage
Complaint History Demographics

Social Attributes Billing Behavior

Offer History Caller Network

Social Influence Volatility

Life Events Data Usage

360 view of customer behavior

EXPOSURE INQUIRY EXPLORATION STABILIZATION MATURITY ATTRITION

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Omni-channel is a prerequisite for a great customer experience

Omni-channel Business Strategy and

Capabilities
Engagement Brand Promise

Web Strategy and Transformation

Evolve
Mobile Discover Customer Insights

Social Customer Product and Service Development

Service Insight
Contact Center 360º+ Choose Sales

In-store
Marketing & Customer Engagement
Use
Media &
Advertising Buy Customer Service
Direct
Marketing Organization

Customer and shareholder value

Increased Lower
Higher Margin Accelerated Improved Improved
Increased Share of Acquisition
Product Time to Customer Lifetime Value
Market Share Customer Costs and
Portfolio Market Engagement of Customer
Wallet Cost to Serve
19
Ten types of
innovation…
Image for illustrative purposes only.

To replace the secondary images with bleeds

select the image, ‘right click’, and select Change
Picture. Browse to a new image and ‘click’ Insert.
If needed, resize to bleed or crop the image. To
crop, select the image, go to Format > Crop tool
and crop to fit.
Most companies focus on product innovation…

Number of
300
Innovations
pursued by
Companies
But innovation is much more…
Network Process Product System Channel Customer
Connections Signature Complementary How your offerings Engagement
with others to or superior products and are delivered to Distinctive
create value methods for services customers and interactions
doing your work users you foster

Profit Model Structure Product Service Brand

The way in which Alignment Performance Support and Representation
you make money of your talent Distinguishing enhancements of your offerings and
and assets features and that surround business
functionality your offerings
Business model - centric innovation
Business model –
centric innovation
Configure assets differently
to deliver value
Platform centric innovation
Platform-centric
innovation
Reinvent or recombine
capabilities to deliver value
Experience centric innovation
Experience-centric
innovation
Engage customers differently
to deliver value
Breakthrough innovations
require more than just
new products
7 types of innovation
The top innovators outperform the S&P 500…

5-Year Indexed Stock Price Returns of the Top Innovators vs. S&P 500
Stock Price (indexed to 100)

All “top innovators”

138 companies

S&P 500

2007 2008 2009 2010 2011

…and integrating more types of innovation deliver superior
financial returns
5-Year Indexed Stock Price Returns of the Top Innovators vs. S&P 500
Stock Price (indexed to 100)

5+ Types of Innovation
45 companies

3-4 Types of Innovation

59 companies

1-2 Types of Innovation

34 companies

S&P 500

2007 2008 2009 2010 2011

Data from Denmark supports the conclusion

Five years of C20 stock prices (2009-2014).

Stock Price (indexed to 100)

5+ Types of Innovation

3-4 Types of Innovation

1-2 Types of Innovation

2009 2010 2011 2012 2013 2014

Agenda

© 2015 Deloitte
31 31
© 2015 Monitor Deloitte. Private and confidential.
Traditional and digital retail are the future

32
Linking the customer & digital transformation together

Customer Segment

Gen Y Key Value Write off

Configuration
Where to live targets segment

10 Types of Innovation
Customer life situation

Marriage
The digital radar

Offering
Work

Family

Experience
Health
Understand Investigate Execute Investigate Understand

Cooperation and
Do it yourself M&A
crowdsourcing

Organization
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CLIENT PROOF OF CONCEPT: FACIAL RECOGNITION MOBILE APP ADD-ON

•
•
•

•
 KNOWLEDGE
& EXPERTISE

PROJECT DELIVERY: PHARMACEUTICAL MARKET ENTRY ASSESSMENT

CLIENT DELIVERY: BANK AMBASSADOR APP

•
•
•
•
•
Digital loyalty program for KappAhl
Digital loyalty program for KappAhl
Rasmus Winther Mølbjerg
rmoelbjerg@deloitte.dk

19. maj 2016