Digital Disruption:
Big Bad Wolf or Fairy Godmother?
May 18th 2017
Lyndon Hedderly
- Director of Digital Strategy

We’re living in Historic Times

500 Index - From 1950 to Today
1st website: CERN
Amazon.com
Google
Facebook
Netflix Uber

The big bad wolf
‘Digital Disruption’ has been around
since the early 2000’s...

…Blown away
2000 2001 2002 2004 2006 2007 2010 2011 20122003 2008 2009

In the last 15 years, 52% of the
Fortune 500 companies have
disappeared

Top 5 Publicly Traded CompaniesTech &
Digital is now
the driving
force, in
Business

This isn’t news
– Companies have prioritized
Tech for sometime
Technology will
never again
change as
slowly as it
does today

Part 1: Quick Recap
1. We’re living in historic times
2. Tech is a significant factor in a volatile market
3. The rate of tech change is accelerating

$424bn $440bn $66bn $610bn
$60bn $74bn $944m $85bn
$13bn $13.5bn $180m $8.5bn
$92bn increase in 4 months
$80bn increase in 4 months
$12.5bn increase in 4 months
$68bn increase in 4 months

The winners are re-shaping the business landscape
• World’s most popular media co. - creates no content
• Worlds largest movie house - owns no cinemas
• Online bookstore - diversifying into ecommerce, Cloud & Content
• Largest software vendors - don’t write the apps
• World largest taxi company - Uber owns no vehicles (& employs no drivers?)
• Most valuable retailer - has no inventory
• World’s largest accommodation provider - owns no real estate
• Largest phone companies - own no telco infrastructure
• Fastest growing banks - have no actual money

©2016 Acquia Inc. — Confidential and Proprietary
Not just the Tech giants and Unicorns…
…creating New Business Models and New Paradigms of Customer Interaction.
©2016 Acquia Inc. — Confidential and Proprietary

Let’s look across the experts opinions…

DIGITAL Maturity

Assimilating the common threads …
1. Strategy / Innovation (vision, business objectives) / $ investment & value
2. Operating Model  Organisation
3. Leadership / Talent / People / Skills / Culture / Capability
4. Technology incl. Data / Analytics (architecture, platform, MVP) – AR/VR,
AI, IoT…
5. Projects (roadmap, dev)
6. Operations (Infrastructure)

Main Takeaway:
Customer Experience

Part II: Quick Recap
1. Digital disruption is positive – the fairy godmother effect
2. We can read about how to be Digital… it’s just business
3. Customer Experience!

So, Good
Customer
Experience
= $$$
???

Investing $50kin 10 companies delivering
Great User Experience
The UX
Fund:

$49,276
$15,690
$6,992
$157,336
$43,355
$6,522
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Cost 2006 Mkt Value 2016
$50k in 2006
became
$306k in 2016.
A 503% gain

886%
214%
40%
3047%
767%
30%
15%
58%
-94%
32%
-500% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500%
Gain as a %
>3,000% return!
Almost 900% return!
Approx. S&P Return over same 10 yr period 50%

Further evidence:
A leading company for Customer Experience?

“I believe the success we
have had over the past 12
years has been driven
exclusively by customer
experience.” Jeff Bezos
$1.585m
158x in 16 yrs
$10,000
AJ $35.6m JB $74bn

Customers Satisfaction & correlation to
total return to shareholders (TRS)
Companies with above and below average customer satisfaction scores (10 years)
Medallia Institute
4x growth

Let’s just spend on UX / CX
Acquia Lift optimizes CX
- Content Syndication
- Personalization
- Profile Data Management

But… it’s not so simple

Customer Experience =
User Experience
Web Interface
Design alone

Digital first…
Amazing success story…
And yet – the front end user
interface isn’t that great.
It’s pretty basic actually…

Experiences are Happening Everywhere
©2016 Acquia Inc. — Confidential and Proprietary

Some digital initiatives generate attractive returns, while
others don’t return their cost of capital

So What?
If digital business is just business,
then let’s go back to business basics

5 Parts of Every Business
1 Value Creation –
Product and / or Service
3 Sales
4 Value Delivery
2 Marketing
5 HR, Finance, Legal
$

5 Parts of Every Business
1 Value Creation –
Product and / or Service
3 Sales
4 Value Delivery
2 Marketing
5 HR, Finance, Legal
$
Digitization of Products & Services
Digitization of ecosystems
Digitization of processes – replacing labor with software
Digitization of Marketing
Digitization of supply chains Digitization of the workforce
Digitized
(Customer Experience)

Revenue
Cost Control
Risk Mitigation

Let’s take an example - Retail

Why is this important?
When placing your Digital bets – ensure
you can integrate across systems…

When we talk “Digital Experiences” we mean
making it easier to create, deliver, and
manage a universe of digital experiences
that set the foundation for digital customer
journeys
©2016 Acquia Inc. — Confidential and Proprietary
So Why Acquia?
We help customers be Experience Platform
ready

Overall Recap
1. Digital Transformation is real – and it’s accelerating
2. We can read the experts PoVs – it’s just business…
3. …Customer Experience!
 CX > UI, or design
 CX > Marketing shop front
 In fact CX = the business

Finally, a quick question
©2016 Acquia Inc. — Confidential and Proprietary

Do you have the right
platform to optimize
your Customer
Experience?
The role of digital technology is rapidly shifting,
from being a driver of marginal efficiency to an
enabler of fundamental innovation and
disruption (WEF)

TRADITIONAL PROCESS MODERN PROCESS
Use
Purchase
Evaluate
Consider
Discover Evaluate
Purchase
Experience
Discover/
Consider