managing change in the digital environment
DESCRIPTION
Presentation on the challenges and approach to managing digital transformationTRANSCRIPT
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Managing change in the Digital Landscape
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We are in the midst of a major revolution
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Industrial revolution
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Information revolution
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Forget capitalism and the class struggle... the digital revolution is changing things far more
dramatically than the hypemongers ever imagined... the move from a society
dominated by print and broadcast mass media to the age of interactivity is at least as
dramatic as the move from feudalism to capitalism.
Netocracy, by Jan Söderqvist and Alexander Bard (2001)
IMG SRC: Flickr
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The information industry
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The photography industry
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The music industry
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Revolution creates change
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Change is hard
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Particularly when your plan was to sit back and relax
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Life was simple
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TV
RADIO
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Life was simple Budgets where clearly divided The big idea ruled 3 martini lunches where the norm Measurement was simple Sales told you if it worked
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Gradually, things got more complicated
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TV
RADIO PRINT
OUTDOOR
EXPERIENCIAL DM
ONLINE
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Then digital became even more complex
VIRAL
MICROSITES
SEARCH
ECRM
SOCIAL MEDIA
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But the pie is still the same
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Lots of moving pieces
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Measurement is complex
CPC, CTR, CPA Impressions, visits Activity indexes ……
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Reporting overload
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The days of the three martini lunch are over
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Marketing is hard work
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Most of you guys get it
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One of the biggest barriers you face is convincing your organisations
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“I've got to get on facespace”
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Turning around a dinosaur
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Individual resistance
Habit
Economic Factors
Job security
Fear of the unknown
Selective information processing
Organisational resistance
Resource allocations
Established power structure
Structural inertia
Limited Focus for change
Group inertia
Resistance to change
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Digital doesn’t come naturally to everyone
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Digital comes with a lot of new terms
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It’s a bit geeky
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We talk in Acronyms Twitter feed
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This only serves to lock the opportunity away
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Denial
Resistance Exploration
Commitment
Change to the individual
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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Sensitise organisations to pressure for change
Reveal discrepancies between current and desired states
Convey credible positive expectations for the change
Motivating digital change
Behavioral change is a function of perceived need and occurs at the emotional, not intellectual level
Develop a perception of need
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Start with you
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Immerse yourself
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Live in this world
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Join lots of social networks
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Find and subscribe to some interesting blogs
Share
this
link
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Join some digital marketing forums
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Get onto twitter
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Even if it seems dumb at first
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Build your own blog
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Get a second life
FLICKR: rikomatic
FLICK
R: D
anilo "Maso” M
asotti
FLICK
R: ladyhaw
ke365
Avatrian & Slionhead: iClaudia
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48
Gather insights about your customers
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Monitor your brand online every day
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Share the cool things that you find
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They don’t know what they don’t know
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Give them some good books to read
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Organise internal training
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Encourage others to embrace it
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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A definition of how your company will interact digitally with its customers in the next 2 – 5 years
Create a vision of change
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How do you create a digital vision?
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Can your agency help?
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Approach 1: One agency does it all
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The traditional approach
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
RETAIL
PR
Strategy Insights
DM
The Creative
Idea
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Planners identify the key insight
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Creative's come up with the big idea
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UsuallyintheformofaTVad
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Some5mesaprintad
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Theguyswhogotthebudget,calledtheshots
Digitalpeopledidn’tlikeitbutthat’sjustthewaythingswhere
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Approach 2: employ separate agencies for separate jobs
Above the line Below the line
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Now you need a bigger boardroom table
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Co-ordination is complex
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The elephant in the room Who gets the budget?
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Approach 3: tell them to work together (or else)
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Playing nice in the
sandbox
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Sometimes it works
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Sometimes it doesn’t
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The problem is not the agency structure
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It’s this
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
POS
PR
Strategy Insights
DM
The Creative
Idea
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More specifically, this
OUTDOOR
TV
RADIO
DIGITAL
MOBILE
POS
PR
Strategy Insights
DM
The Creative
Idea
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Digital is a grouped term
When we think about our digital vision, we still think in channels
digital
search
website
eCRM
display
Social media
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digital
A better way to think about it is this
Sales
Customer Service
interaction
Brand
Product
Development
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Digital is not a channel, it’s a deployment medium
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The fundamental issue is in the basic model
All channels have a digital component OUTDOOR
TV
RADIO
DIGITAL MOBILE
POS
PR
DM
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Your website
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Display placement
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What you do in search
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Basic Personalisation
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What you do in social media
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Digital POS
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Digital outdoor
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Digital print
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Digital TV
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Digital Radio
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Digital PR
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OUTDOOR
TV
RETAIL
PR
The Creative
Idea
MOBILE
ONLINE
RADIO
Acquisition Brand Customer service
Engagement
DM
Referral
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Delivering Digital content is more complex
Technology Enablement
OUTDOOR
TV
RADIO
ONLINE
MOBILE
RETAIL
PR
The Digital Brand Ideal
Customer Data
Engagement strategy
Blog watching
Digital In store displays
Digital billboards
iTV
Podcasting
Display Ads and Websites
Content and Messaging
Market Insights
Digital Usage
Patterns
Technology Segmentation
Platform capabilities
Penetration Statistics
Competitive landscape
Deployment Strategy
Partnerships
Affiliate opportunities
Growth opportunities
Data Strategy
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Back to you guys again
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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Money drives support
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Many organisations focus purely on sales revenue
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Generic digital stats
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We are way too focused on eyeballs
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Social Media has a serious impact on business
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Community users are more engaged
Community users remain customers 50% longer than non-community users. (AT&T, 2002)
Community users spend 54% more than non-community users (EBay, 2006)
In customer support, live interaction costs 87% more per transaction on average than forums and other web self-service options. (ASP, 2002)
Community users visit nine times more often than non-community users (McKInsey, 2000)
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Identifying stakeholders and departmental goals
Objective Stakeholders Goals Spread a message among a community
Marketing department Improve effectiveness of marketing
Reduce support costs Call center Support staff
Streamline customer support management
Learn from your community
Product Development Sales department
Learn what products your customers want
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Define Relationships, Analytics and Outcomes
Objective Relationships Analytics Outcomes Spread a message among a community
Develop an emotional connection with customers
Number of comments Number of forwards Blog posts Diggs, technorati posts
Reduce the cost of media spend Increase the quality of message Increase customer engagement
Reduce support costs
Provide a self service model for support that leaves customers feeling empowered
Number of visits to online support site Hours logged in call center, length of call feedback forms Comments in social media
Reduce the hours logged on support calls Improved customer feedback ratings
Learn from your community
Identify key market trends and desires
Number of posts/suggestions Volume of community discussion
Streamline product development process Develop products that are more geared to market demand
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Top pressures driving Social Media Monitoring
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Engage stakeholders in planning a digital vision
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Get out of the silos
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Bring everyone along for the ride
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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There is just not enough digitally skilled people
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It’s our own fault
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1998: We were hyping it up
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2000: Then we crashed
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2001 – 2004: digital became a ghost town
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2005: Suddenly we realised, digital had reach
• Broadband penetration was spreading • Online measurement demonstrates
effectiveness • Money started flowing into interactive
advertising. • The industry started to grow
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2006/2007 : Digital was booming
Digital agencies up to their eyeballs in projects Start-ups re-emerging. Digital publishing expanding
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2007: It’s exhausting Long hours, little structure Burnout is frequent Poaching is rife M&A activity is constantly destabilizing Staff pushed to limits.
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Salary inflation
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We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
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We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
Staff
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We killed our own supply chain
1990 1995 2000 2005 2010
Digital spend
Staff
Old school digital survivors now it top jobs
Shortage of entrants
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What to do
Become a super hero
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What to do
Import people
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What to do
Poach people
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What to do
Get the dinosaurs on board
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Don’t ban facebook in the office
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Help people feel at home in these environments
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Social computing is the new water cooler
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Social knowledge management
David Gurteen
Knowledge Management Social Computing KM is extra work Social computing is part of my
everyday work Work is behind closed doors Work is open and transparent People are afraid to talk openly Anyone can say anything
People directories provide contact information
Social Networking platforms reflect who is doing what with whom
Content is centralised, protected and controlled
Content is distributed freely and uncontrolled
IT chooses the tools I use I have a choice & select my own tools Knowledge sharing is database centric Knowledge sharing is people centric Knowledge is forcibly captured just in case
Knowledge is naturally captured as part of my work
Best Practices Stories
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Knowledge enables organisational growth
With the potential to be much bigger
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It allows value to shift
ownership experience
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Ownership to be transferred
institutions communities
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Collaboration leads to powerful ideas
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Everyone buys in, everyone wins
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The other problem…the IT department
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IT and marketing may have the same goals …
…but different approaches
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Time frames
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language
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Details Executive summary vs functional spec
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Take your IT buddies out for lunch
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Find a common language
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Building bridges at the highest levels you can reach CMO and CIO if possible
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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Geoffrey Moore’s bell curve
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Simon Brown
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Students are sorted into groups to give a greater sense of membership. The groups are named after Australian natural dimension stones used in the stone trade
The stonemasonry ning
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Youtube videos in sidebar widget
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Provide resources for change
Build support systems for change agents
Reinforce new behaviors
Sustaining Momentum
Supporting change
Stay the course
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Motivating change
Create a vision of change
Developing political support
Managing the transition
Sustaining momentum
Effective Change management
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Individual resistance
Habit
Economic Factors
Job security
Fear of the unknown
Selective information processing
Organisational resistance
Resource allocations
Established power structure
Structural inertia
Limited Focus for change
Group inertia
Tackle resistance head on
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The future is bright
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Do it in second life
Three virtual martinis
The three martini lunch is back
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Linkedin: http://www.linkedin.com/in/jennywilliams
www.ideagarden.com.au
Twitter: ideagarden