Lecture on digital transformation for students of the Artevelde University College in Ghent, Belgium.
The internet has been around for 25 years and has caused many disruptions. With more disruptions to come, many organizations are seeking for ways to use digital opportunities in a meaningful way creating more value for customers and sustaining their business.
The impact of the development of the Web on marketing and communications and how it causes digital disruption for companies is shown in this talk. With practical examples you will get insights in how organizations can create more value for customers at the same time also the organization can benefit from these efforts. Several digital developments such as mobile, social and 'internet of things' will be presented. Besides the use of theoretical models for digital disruption and digital transformation, some case studies are presented which bring directly applicable tips to take home.
Principles for digital transformation are a changing value proposition, business model, culture, technology and organization.
Digital Transformation - International Days - Artevelde University College - May 2017
1. International Days 2017: Digital Transformation
How to profit from the impact of new technologies
Artevelde University College Ghent - May 2017
Ayman van Bregt digital strategist International Days 2017
2. About Ayman van Bregt
Digital strategist
Ayman van Bregt digital strategist aymanvanbregt
Digital Strategist who creates meaningful
digital customer experiences for companies
I assist companies in creating more value for
customers supported by digital resources, to
strengthen the relationship with customers and
create new customer insights.
Senior Lecturer Online and Digital Marketing, Creative
Concept Development & Digital Value Creation (Rotterdam
University of Applied Science)
Co-founder Dutch Social Media Academy (NSMA)
Slides: http://bit.ly/ID-Artevelde-2017
3. About Ayman van Bregt
Digital strategist
Ayman van Bregt digital strategist aymanvanbregt
Digital Strategist who creates meaningful
digital customer experiences for companies
I assist companies in creating more value for
customers supported by digital resources, to
strengthen the relationship with customers and
create new customer insights.
Senior Lecturer Online and Digital Marketing, Creative
Concept Development & Digital Value Creation (Rotterdam
University of Applied Science)
Co-founder Dutch Social Media Academy (NSMA)
Slides: http://bit.ly/ID-Artevelde-2017
Slides: http://bit.ly/ID-Artevelde-2017
5. Agenda
Ayman van Bregt digital strategist International Days 2017
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02
03
Shifts in business, media and behavior
Digital transformation principles
Models for digital transformation
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Tips for digital transformation
Q & A
6. Context first
Ayman van Bregt digital strategist International Days 2017
Source: https://www.holidayguru.nl/wp-content/uploads/2015/05/gent.jpg
7. Defining digital disruption
What is digital disruption?
Digital disruption
Digital disruption is the change that occurs when new
digital technologies and business models affect the
value proposition of existing goods and services.
Ayman van Bregt digital strategist International Days 2017
8. Defining innovation, concepting and new business development
Digital disruption: Innovation and concepting in a digital world that leads to new business development
Innovation
Innovation is a new idea, more
effective device or process. It
applies a better solution that
meets new requirements,
inarticulated needs, or existing
market needs.
Concepting
An idea of something formed
by mentally combining all its
characteristics, creating
value as a construct for
business.
New business development
New business development
concerns all the activities involved
in realizing new business
opportunities, including product
or service design, business model
design, and marketing.
t
Ayman van Bregt digital strategist International Days 2017
9. Defining digital transformation
What is digital transformation?
Digital transformation
Digital transformation is the transformation that
organisations strive for in order to profit from the impact of
new technologies.
Ayman van Bregt digital strategist International Days 2017
10. SHIFTS PRINCIPLES MODELS TIPS Q&A
Shifts in business, media and behavior
“People who bet against the Internet, who think that somehow this change is just a generational shift, miss
that it is a fundamental reorganizing of the power of the end user. The Internet brings tremendous tools to the
end user, and that end user is going to use them.” - Eric Schmidt
14. Experience economy used technology to provide more service
Ayman van Bregt digital strategist International Days 2017
Source: http://www.archdaily.com/tag/ghent
15. Source: Innosight Creative destruction whips through corporate America http://bit.ly/1Dljj6X
Ayman van Bregt digital strategist International Days 2017
16. Source: KPCB Internet Trends 2014 www.kpcb.com/file/kpcb-internet-trends-2014
Ayman van Bregt digital strategist International Days 2017
21. Ayman van Bregt digital strategist International Days 2017
Bron: https://youtu.be/FW651kusiBI
22. Shifts in business because of digital disruption
Ayman van Bregt digital strategist International Days 2017
In 2015, Uber, the world’s largest taxi company, owns no
vehicles. Facebook, the world’s most popular media owner,
creates no content. Alibaba, the most valuable retailer, has no
inventory. And Airbnb, the world’s largest accommodation
provider, owns no real estate. Something interesting is
happening.
Source: http://techcrunch.com/2015/03/03/in-the-age-of-disintermediation-the-battle-is-all-for-the-customer-interface/
24. Shift in business because of digital disruption
Shorter lifespan and more uncertainties;
Technology one of the most important drivers for business;
Simplifying supply chains;
Ayman van Bregt digital strategist International Days 2017
Source: http://blogs-images.forbes.com/learnvest/files/2014/06/behavior-change-expert-
questions.jpg
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Focus on communities and platforms.04
25. Shift in media
Ayman van Bregt digital strategist International Days 2017
Source: https://www.ethos3.com/wp-content/uploads/2014/12/human-digital-marketing2.jpg
26. Ayman van Bregt digital strategist International Days 2017
Source: https://flic.kr/p/8w5ywj
27. Media consumption back in the days
Media attributes of the past
Lineary;
Location specific;
Limited possibilities;
Passive.
Ayman van Bregt digital strategist International Days 2017
Source: http://flic.kr/p/8w5ywj
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02
03
04
28. Ayman van Bregt digital strategist International Days 2017
Source: http://youtu.be/8JenAyMmZ68
31. Media consumption nowadays
Media attributes of the current
Nonlineary;
Not location specific;
Indefinite possibilities;
Active and/or passive, you are connected.
Ayman van Bregt digital strategist International Days 2017
Source: flic.kr/p/8nNBUK
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02
03
04
39. Ayman van Bregt digital strategist International Days 2017
Source: https://twitter.com/cap0w/status/431176293590106112
40. Ayman van Bregt digital strategist International Days 2017
Source: http://www.telegraph.co.uk/news/worldnews/asia/china/11095439/Chinese-city-paints-street-lane-for-mobile-phone-users.html
41. Ayman van Bregt digital strategist International Days 2017
Source: http://www.ad.nl/binnenland/veel-kritiek-op-led-verkeerslicht-voor-smombies~a5f75cf8/
42. Ayman van Bregt digital strategist International Days 2017
Source: https://www.linkedin.com/company/delray-recovery-center
43. Source: http://sjinsights.net/2014/09/29/new-research-sheds-light-on-daily-ad-exposures/
Media consumption research
Average adult’s daily media and ad exposure
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Average number of advertisement and brand
exposures per day per person: 5,000+;
04
Average number of “ads only” exposures per
day: 362;
Average number of “ads only” noted per day:
153;
Average number of “ads only” that we have
some awareness of per day: 86;
Ayman van Bregt digital strategist International Days 2017
05
Average number of “ads only” that made an
impression (engagement): 12.
45. Shift in media use because of digital disruption
Media abundance;
Mobile is one of the most important screens;
Remaining visibility is the biggest challenge for companies
and brands.
Ayman van Bregt digital strategist International Days 2017
Source: http://www.business.com/content-marketing/the-real-marketers-shift-from-social-media-to-content-marketing/
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02
03
46. Shift in media use because of digital disruption
FOMO: Fear of missing out
Nomophobia: No-mobile-phone phobia
Infobesity: Information overload
Ayman van Bregt digital strategist International Days 2017
Source: http://www.square2marketing.com/marketing-ideas/buyer-behavior
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02
03
47. Shift in behavior
Ayman van Bregt digital strategist International Days 2017
Source: https://www.thefuturefinanciers.com/wp-content/uploads/2017/02/cyber-glasses-1938449_1280.jpg
48. Convenience
(Potential) customers are impatient and expect ‘instant feedback’ like running water from a tab or connecting a cable to a power outlet
to recharge a smartphone
Ayman van Bregt digital strategist International Days 2017
49. (Digital) Relationship before the focus on the transaction
(Potential) customers have a need for information so deliver first upon their requests and than they’ll be willing to listen to what you
have to offer.
Ayman van Bregt digital strategist International Days 2017
50. Personal
(Potential) customers want you to recognise and acknowledge their situation and don’t apply a one size fits all principle.
Ayman van Bregt digital strategist International Days 2017
51. Unbundling
Microservices that provide personal experiences
Unbundle packaged offerings;
Use technology to give customers more
choice and control;
Create flexible revenue models (only pay for
what you use);
Manage expectations well and provide a great
customer experience and customer service.
Ayman van Bregt digital strategist International Days 2017
Source: https://susannye.files.wordpress.com/2011/04/asparagus_04.jpg
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03
04
52. SHIFTS PRINCIPLES MODELS TIPS Q&A
Digital transformation principles
“A disruptive innovation is a technologically simple innovation in the form of a product, service, or business
model that takes root in a tier of the market that is unattractive to the established leaders in an industry.”
- Clayton Christensen
53. Ayman van Bregt digital strategist International Days 2017
Digital transformation principles
The principles that underlie the process to start and stimulate digital transformation
Value
proposition
Business
model
Culture Technology Organization
54. Source: http://kevinwarnock.com/2011/07/30/airbnb-hosting-is-fun-with-minimal-risk/
Digital transformation - Convenience
Deliveroo disrupting the food and restaurant industry by offering delivery from restaurants that don’t take-out and deliver
Ayman van Bregt digital strategist International Days 2017
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02
03
Combining logistics and online food ordering;
04
Community by uniting supply and demand;
Personalisation and choice (recommendation
engine based on ingredients);
Focus on customer service;
05 Realtime insights (food tracking, delivery time).
55. Ayman van Bregt digital strategist International Days 2017
Digital transformation - Relationship
Circles.life and Duolingo focus on building a relationship instead of focussing on the transaction
Source: https://www.circles.life/ Source: http://kevinwarnock.com/2011/07/30/
56. Digital transformation - Personal
Amazon transforming the grocery and supermarkt industry by creating a personalized shopping experience supported by smart
technology
Ayman van Bregt digital strategist International Days 2017
Source: https://youtu.be/NrmMk1Myrxc
57. Digital transformation - Unbundling
Airbnb offering several services to choose from directly transforming the travel industry and their value proposition
Ayman van Bregt digital strategist International Days 2017
Source: https://youtu.be/yQ0_7vGJQL8
58. Digital transformation - New level playing field
It’s very difficult to predict who your next competitor will be
Ayman van Bregt digital strategist International Days 2017
Source: https://www.emerce.nl/nieuws/deense-shobr-daagt-supermarkten-uit
59. SHIFTS PRINCIPLES MODELS TIPS Q&A
Models for digital transformation
“The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes
and their business model that make them good at the existing business actually make them bad at
competing for the disruption.” - Clayton Christensen
60. Ayman van Bregt digital strategist International Days 2017
Source: Future workforce strategies - 21st Century Skills
61. Ayman van Bregt digital strategist International Days 2017
Source: McKinsey The Social Economy http://bit.ly/mckinsey-socialeconomy
62. Ayman van Bregt digital strategist International Days 2017
Source: Four levels of digital mastery - Leading Digital
63. SHIFTS PRINCIPLES MODELS TIPS Q&A
Tips for digital transformation
“Management is the opportunity to help people become better people. Practiced that way, it's a magnificent
profession.” - Clayton Christensen
64. Ayman van Bregt digital strategist International Days 2017
From pushing to attracting
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
65. Ayman van Bregt digital strategist International Days 2017
From interrupting to inviting
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
66. Ayman van Bregt digital strategist International Days 2017
From unfocussed (ignorance) to focussed
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
67. Ayman van Bregt digital strategist International Days 2017
From control to letting go
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
68. Ayman van Bregt digital strategist International Days 2017
From avoiding risk to managing risk
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
69. Ayman van Bregt digital strategist International Days 2017
From disjointed
(customer) experiences
to seamless
(customer) experiences
Digital paradigm shift to achieve digital transformation
Fundamental changes because of digital disruption
70. Ayman van Bregt digital strategist International Days 2017
Source: http://searcharchives.vancouver.ca/people-looking-through-holes-in-fence-and-in-trees-to-see-over-fence
Attention is the new currency
73. Ayman van Bregt digital strategist International Days 2017
Source: Econsultancy - The context for digital transformation https://econsultancy.com/reports/webinar-the-context-of-digital-
transformation/downloads/7509-econsultancy-context-of-digital-transformation-webinar-pdf/
74. Tips for digital transformation skills: The Innovator’s DNA
Mastering the Five Skills of Disruptive Innovators
Associating (linking ideas that aren’t obviously related);
Questioning (questions that challenge the status quo);
Observing (observing how things work and what doesn’t
work);
Networking (meeting people from different backgrounds
and perspectives to extend your knowledge);
Ayman van Bregt digital strategist International Days 2017
Source: http://www.claytonchristensen.com/books/innovators-dna-mastering-skills-disruptive-innovators/
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Experimenting (trying out new experiences with the world
as your laboratory).
05
75. T-shaped People - Skills for digital transformation
People needed for digital transformation have breadth of knowledge and a depth of expertise
Ayman van Bregt digital strategist International Days 2017
Source: Econsultancy The context for digital transformation http://bit.ly/digital-transformation-econsultancy
01
T-shaped people are defined as those who have a strong
vertical expertise but also wider knowledge or empathy
for other digital disciplines. This is not to say that vertical
expertise is less important, but more that when this is
combined with that wider understanding it is increasingly
valuable in appreciating the wider context of specialist
work, identifying opportunities for greater collaboration or
efficiencies, and seeing the bigger picture.
76. Source: Econsultancy The context for digital transformation skills http://bit.ly/digital-transformation-econsultancy
Ayman van Bregt digital strategist International Days 2017
77. Ayman van Bregt digital strategist International Days 2017
Source: Skills revolution: http://www.manpowergroup.com/wps/wcm/connect/5943478f-69d4-4512-83d8-36bfa6308f1b/MG_Skills_Revolution_FINAL.pdf
78. Ayman van Bregt digital strategist International Days 2017
Source: https://www.youtube.com/watch?v=SHF9gxQWl7c
79. Ayman van Bregt digital strategist International Days 2017
Source: http://searcharchives.vancouver.ca/people-looking-through-holes-in-fence-and-in-trees-to-see-over-fence
Attention is the new currency
80. Ayman van Bregt digital strategist International Days 2017
‘The difference between helping and selling is just two letters. But those two letters are
critically important to the success of business today.’ - Jay Baer