Hilding Anderson, Director of Research & Insights at SapientRazorfish, presented on Reimagining Business in The Age of The Customer at Mumbrella360.

1. Reimagining Business in the
Age of the Customer
J U N E 7 , 2 0 1 7
INTERNATIONAL KEYNOTE:
Hilding Anderson:
Director of Research & Insights, SapientRazorfish

2. Director of Research & Insights
18 years of experience at Sapient Razorfish
Published in Forbes, speaker at SXSWi
Angel Investor
A B O U T Y O U R S P E A K E R

3. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 3
The Situation
The Opportunity
Stories from the Field
Five Rules
C O N T E N T

4. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
SapientRazorfish exists to reinvent
businesses for the digital age.
A B O U T U S

5. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
F O R A G E N C I E S A N D T H E I R C L I E N T S
The Situation

6. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 6
T H E I N N O V A T I O N E C O N O M Y
SOURCE: HARVARD BUSINESS REVIEW & CONSTELLATION NR
Average life expectancy of 75 years
1955
Average life expectancy of 15 years
2017
In the last 15 years,
52% of the global Fortune
500 companies have
disappeared.

7. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 7
A C H A N G I N G I N D U S T R Y
$355.9B
$297.8B
MARKET VALUE AS OF DECEMBER30, 2016
COMPANY
CHANGE IN VALUE OVER THE LAST 10 YEARS:
MARKET VALUE
2006
MARKET VALUE
2016
% CHANGE
$27.8B
$18.1B
$12.4B
$24.2B
$24.2B
$28.4B
$51.3B
$214.0B
$17.5B
96%
86%
33%
64%
55%
54%
21%
1%
1,934%
The Transformation Imperative:
Digital Agility & Culture Drives
Business Success $1.1B
$2.6B
$8.3B
$8.8B
$11.0B
$13.2B
$40.6B
$212.4B
$355.9B

8. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 8
T H E I N N O V A T I O N E C O N O M Y
The Connected
Consumer is in charge
Empowered and demand
transparency
Value experiences over most
things
Embrace and seek new
companies with which to engage
Demand personalization and real-
time relevance
Agnostic to screens or value
chains

9. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 9
Digital transformation is
linked to higher profits
10%
45%
Immature: Enterprises
planning digital initiatives
Mature: Fully digital
enterprises
Digitally mature companies were 4x more likely to
report they were profit leaders
Global Executive Survey. June 2016 N=500.
SOURCE: COMBINATION OF TWO QUESTIONS: HOW PROFITABLE IS YOUR
ORGANIZATION , AND HOW DIGITALLYMATURE IS YOUR ORGANIZATION.

10. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 10
A C H A N G I N G I N D U S T R Y
Companies are realizing their
existing business models have
to be updated – that they must
disrupt themselves

11. Agencies are uniquely positioned due to
their focus on experience and
understanding of the customer.
O U R P O V

12. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
F O R A G E N C I E S A N D T H E I R C L I E N T S
The Opportunity

13. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 13
A P R I L 1 2 , 2 0 1 7
“Jeff, what does Day 2 look like?”
That’s a question I just got at our most recent all-hands
meeting. I’ve been reminding people that it’s Day1 for a
couple of decades. I work in an Amazon building named
Day 1, and when I moved buildings, I took the name
with me. I spend time thinking about this topic.
“Day 2 is stasis. Followed by irrelevance. Followed by
excruciating, painful decline. Followed by death.
And that is why it is always Day1.”
Jeff Bezos, 2017 Amazon Shareholder Letter
C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L

14. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 14
The most important single thing is
to focus obsessively on the customer.
Our goal is to be earth’s most
customer-centric company.”
JEFF BEZOS
CEO & President, Amazon.com

15. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 15
We live in a radical customer centric world – and this is a
tool to compete against the consultants, strategists and
others. But what does delivering DBT mean?

16. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 16
Reimagining business is centered around three core
principles
Radical Customer
Centricity
The Connected
Digital Enterprise
Agile Innovation

17. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 17
Creating journeys & segments
R A D I C A L C U S T O M E R C E N T R I C I T Y

18. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 18
Focusing on customer
experience
50%
47%
39%
38%
37%
Improve the experience we offer
customers
Become more innovative
Improve how employees collaborate
internally and with partners
Improve our products and/or services
Improve how the organization
handles data and analytics
Top ways that immature companies generate
value through digital business transformation
SAPIENTRAZORFISH GLOBAL EXECUTIVE SURVEY. JUNE 2016 N=500.
R A D I C A L C U S T O M E R C E N T R I C I T Y

19. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 19
Successful transformation
requires CEO-level
leadership
Among those that
have successfully
transformed
A C H A N G I N G I N D U S T R Y
of CEOs have been
visibly engaged in DBT
94%

20. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 20
A C H A N G I N G I N D U S T R Y
But CMOs also
have a critical seat
at the table
A C H A N G I N G I N D U S T R Y

21. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 21
A C H A N G I N G I N D U S T R Y
In fact, at some companies, marketing
has led the transformation

22. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 22
Marketing and technology – long support
functions for large enterprises – are now strategic
weapons, and agencies have an opportunity to
play a great role in driving change.

23. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 23
New skills and expertise must be developed,
yet we believe the fundamentals of agency
life – customer understanding, creativity and
innovation – means that many agencies can
be valuable partners for brands reimagining
their business.

24. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 24
T H E O P P O R T U N I T Y
Transformation
Principles for the CMO
F R O M T O
Product or Technology-led
Campaign Orientation
Push Marketing / Large
Media Buys
Within Organizational Silos
‘Business of Today’ KPIs
IT handles technology
Fixed Mindset
Customer-led
Rapid, test & learn, data-driven
Co-creation and Pull / Targeted
Buys
End-to-end XFL Teams
‘Business of Tomorrow’ KPIs
Agile tech development is critical
to marketing’s success
Entrepreneurial Mindset

25. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
F O R A G E N C I E S A N D T H E I R C L I E N T S
Stories of Transformation

26. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 26
S T O R I E S O F T R A N S F O R M A T I O N

27. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 27
Sephora was named as a leader in our
retail study starting with our first edition
in 2012. Digital technology, in-store
innovations, personalized experiences &
customer-focused loyalty program.
S T O R I E S O F T R A N S F O R M A T I O N
We believe that teaching beauty
is a competitive advantage.”
Calvin McDonald
CEO, Sephora

28. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 28
S T O R I E S O F T R A N S F O R M A T I O N

29. Dominos Pizza, the e-commerce company
S T O R I E S O F T R A N S F O R M A T I O N

30. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 30
S T O R I E S O F T R A N S F O R M A T I O N

31. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 31
104
Mortgage lending & Intermediaries
Corporate pensions
Personal account servicing
Commercialservicing
Onboarding
Lending
Savings
Credit cards
Personal current account
Loans
Shared Components
Covering
Of total total FTE~40%
90+%
of total retail &
commercial servicing
transactions
80% of total customers
65+% of total loans
and advances
100% of corporate
pensions clients
Commercial
8
Retail
Customer
Onboarding
1
9
10
2
3
5
6
4
7
10 Journeys
S T O R I E S O F T R A N S F O R M A T I O N
Feels like we are working in a
different bank.”
Digital Innovation Director

32. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 32
Think E2E - improving even one interaction is hard in old legacy organizations…
O R G A N I Z A T I O N
A N D
O P E R A T I O N S
U X C C X
B A C K S T A G E
§ Policy/Compliance
§ Distribution
§ Product design
§ Pricing
§ Conduct/regulation
§ Operations
§ Technology
F R O N T S T A G E
§ All customer touch points
§ Marketing
§ Branch telephony
§ Service excellence
§ Fulfillment
D I G I T A L
C U S T O M E R
E X P E R I E N C E , G U I
§ Web
§ Mobile
§ Tablet
§ Kiosk, wearable,
smart device
End to end
transformation
F R O N T S T A G E
B A C K S T A G E
S T O R I E S O F T R A N S F O R M A T I O N

33. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 33
And some misses

34. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 34
S T O R I E S O F T R A N S F O R M A T I O N
P&G’s Gillette Acquisition
A missed opportunity. Dollar
Shave Club purchased for $1B.
By Unilever.
v

35. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 35

36. C OPY R I G HT S A PIEN T RA ZORFI SH | CON FID ENT IA L 36
THE RECORDING INDUSTRY
$26.60
$21.76
$15.65 $15.03 $14.97 $15.00
$15.70
$17.50
$23.00
1999 2005 2012 2013 2014 2015 2016 2021 2026
ANNUAL GLOBAL RECORDED MUSIC REVENUES
SOURCE: GOLDMAN SACHS
$ Billions in revenues
Streaming revenues will nearly
double between 2017 and 2020

37. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L 37
T H E S A P I E N T R A Z O R F I S H T H R E E - W A V E M O D E L
A U T O M O T I V E
E A R L Y
G O V ’ T
E N T E R T A I N M E N T
+ M E D I A
A D V A N C E D
R E T A I L
T E L C O
M I D D L E
C P G
F S
T R A V E L +
H O S P I T A L I T Y

38. C OPY R IG H T S A PIEN T RA ZORFIS H | C ONFID EN T IA L
F O R T H E A G E N C Y O F T O M O R R O W
Five Rules

39. 1. Embrace the technology in marketing
2. For smart clients, the ask is no longer just great creative awards, it is
delivering tangible business value
3. Agencies must extend their span of services: in a post-funnel world, you can
no longer focus just on the very top of the funnel – on demand generation.
4. Physical properties matter more, not less, in digitally-led companies
5. AI, machine learning are key skills. But no fluff: Make sure you apply AI for
a few, discrete use cases – not to solve a massive, diffuse problem. Do you
have data scientists?
Five rules for the agency of tomorrow