tag:www.econsultancy.com,2008:/topics/digital-transformation Latest Digital Transformation content from Econsultancy 2016-12-05T07:43:04+00:00 tag:www.econsultancy.com,2008:TrainingDate/3120 2016-12-05T07:43:04+00:00 2016-12-05T07:43:04+00:00 Econsultancy's Certificate in Digital Marketing & Google AdWords Qualified Individual Certification **HRDF Claimable** - Malaysia <h3><strong>Course Details</strong></h3> <p>Econsultancy and ClickAcademy Asia are proud to launch the first world-class Certificate in Digital Marketing programme in Malaysia catering to senior managers and marketing professionals who want to understand digital marketing effectively in the shortest time possible. Participants who complete the programme requirement will be awarded the <strong>Econsultancy's Certificate in Digital Marketing</strong> and <strong>Google AdWords Qualified Individual</strong> <strong>Certificate</strong>.</p> <p style="font-weight: normal;">This is a part-time programme with 64 contact hours (total 8 days) spread over 8 weeks. Participants will only be certified after passing the Google AdWords exams and the digital marketing project, and complete at least 52 contact hours. </p> <p style="font-weight: normal;">The part-time programme covers topics ranging from the overview of digital marketing, customer acquisition channels to social media marketing.</p> <p>A special early bird rate of RM10,000/pax is applicable for participants who register one month before course date. (6% GST applicable)</p> <p>For more information and to register, please click <a href="http://www.clickacademyasia.com/classgroup/econsultancys-certificate-in-digital-marketing-google-adwords-certification-my/?id_class=868&amp;utm_source=econsultancy&amp;utm_medium=website&amp;utm_campaign=doublecert-my-aug2016" target="_blank">here</a> <a href="http://www.clickacademyasia.com/training/digital-marketing/certificate-in-digital-marketing"><br></a></p> <h4>For any queries, please call +65 6653 1911 or email <strong><a href="mailto:apac@econsultancy.com" target="_self">apac@econsultancy.com</a></strong> </h4> tag:www.econsultancy.com,2008:BlogPost/68489 2016-11-10T14:29:00+00:00 2016-11-10T14:29:00+00:00 Five ways financial services companies are adapting to the new digital age Juliet Stott <p>At a recent event, A New Age of Digital Finance, ORM managing director Keith Nation said: </p> <blockquote> <p>The millennials are expecting to interact with banks in the same way they do with Uber. The younger generation are time poor and they expect a world of hyper convenience; and they want a frictionless digital relationship with their bank too.</p> </blockquote> <p>But <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> in this sector is slow to happen. Legacy systems, disparate data silos, internal resistance to change, lack of digital expertise, and tight governmental regulations are just some of the problems financial service (FS) businesses are trying to solve to meet consumer demand.</p> <p>In the meantime, challenger banks and startup fintech companies are offering new products and services that are attractive to the new generation of digital-first consumers.</p> <p>At the event, guest speakers from the UK’s biggest names in retail banking – including Barclays and TSB, along with wealth management company Allianz Global Investors – addressed their digital challenges and presented ways they’re overcoming these issues. </p> <p>Here is what was said:</p> <h4>1. Seeking out the single customer view</h4> <p>A digital consolidated data-set, which can be used across all channels to provide customers with a seamless digital experience, is the <em>“nirvana”</em> said Julian Brewer, Head of Digital Sales and Products at TSB.</p> <p>But many banks, including TSB, have a long way to go; legacy systems, ownership rights over proprietary data and fragmented data sources are just some of the many stumbling blocks that prevent <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">the single customer view</a> becoming a reality.</p> <p>Brewer said many of the banks are looking to find ways of bringing data together within a DMP; however this is a complex and costly endeavour.</p> <p>TSB uses a tool called Tealium Audience Stream to create a CMP (Customer Marketing Platform) which pulls the limited data sources available to the bank together into a single view, and delivers many of the benefits of a more traditional DMP.</p> <p>“From this, we’re able to use our first-party data to create real-time audience segments and tailor our digital onsite and offsite marketing to great effect, and make this experience more relevant to our customers,” he said.</p> <h4>2. Reclaiming digital content</h4> <p>In recent years, many asset manager marketers have fallen into the trap of giving their content to other sites, either for free (to aggregators) or have paid other publications (such as The FT or CityWire) to publish their content, in the belief that it will bring them closer to their clients and prospects.</p> <p>This has been a mistake, as these aggregators and publishers have ended up owning the relationships with the asset manager’s customers, and not shared any information on how the content was consumed.</p> <p>Tom Hughes, Head of Marketing at Allianz Global Investors, said: “Marketers need to understand the value of their own website and the insight it provides.”</p> <p>He said marketers need a change of mindset, as websites should no longer be viewed as just “shop windows.”</p> <p>“Websites need to provide a utility for clients; they need to have content that’s useful for them so they are are encouraged to return.</p> <p>"Every click, and every interaction that happens your website, is valuable. If you can work out the causation between this activity and the sale of a product, that’s gold,” said Hughes.</p> <h4>3. Taking control of your CRM</h4> <p>The advancement of digital has come with an abundance of data; and more pressure for marketers to answer questions from the C-suite such as:</p> <ul> <li>What’s the ROI on our spend?</li> <li>Who’s been on the website? What did they click on?</li> <li>Who opened that email? Where did they open it? From what device?</li> </ul> <p>In the past, when marketing was a linear process and the CRM was used to manage sales funnels, marketers didn’t get involved in data. But that’s all changed.</p> <p>CRM is now the hub of information and the crux of the relationship between marketing and sales.</p> <p>Jason Lark, MD at Celerity, said: “If you don’t have a hold on your CRM and how it connects with all the platforms you’re building, and if you don’t know how each communication is performing, then you’re going to fail.</p> <p>"You need a good website, with high performing content where you can capture data. [It’ll] underpin your relationship with your customers and your sales team.”</p> <h4>4. Putting the customer at the heart of the digital transformation</h4> <p>Barclays Bank has refocussed its business model and says it is putting its customers at the heart of everything it does.</p> <p>“We want to help our customers hit their financial goals and achievements, and we’re going to use our transactional level data to do this,” said Sharukh Naqvi, Barclays Bank's VP of analytics and personalisation.</p> <p>Barclays is not the only company realigning its business model to put the customer at the core. Disney has invested heavily in the customer experience.</p> <p>It’s created a piece of wearable tech, a wristband called Magic Band, which enables its customers to make purchases without a credit card or cash, gain entry to its parks and resorts, book Fast Passes, make dinner reservations and receive personalised offers.</p> <p>As Brian Solis, leading expert on experiential business models, said in his latest book:</p> <blockquote> <p>In order to be competitive, brands must get better not only at understanding and satisfying customers’ wants and needs but at anticipating them, even before customers know what they want and need.</p> <p>This proactive experience is quickly becoming the new standard.</p> </blockquote> <h4>5. Catering for more sophisticated audiences</h4> <p>The millennial generation are internet natives. They are mobile-first and learn, work, shop and socialise online.</p> <p>They expect speedy, efficient customer service across all channels, from any institution they choose to engage with, day or night. If financial services brands can’t provide great digital service, said Andy Farmer Executive Strategy Director at ORM, then these consumers will go elsewhere.</p> <p>“The rise of fintech companies like Funding Circle, Nutmeg and eToro is no surprise; they’re very attractive to digitally-able younger consumers. These brands aren’t taking huge marketshare at the moment, but they are nibbling away at the edges.”  </p> <p>Traditional banks are reacting to this change in a number of ways, such as creating “<a href="https://econsultancy.com/blog/68356-what-is-an-innovation-lab-and-how-do-they-work/">innovation labs</a>” within their businesses.</p> <p>And, in some cases, directly investing in fintech companies outright; all to keep pace with technology and remain competitive.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/reports/digital-transformation-in-the-financial-services-sector-2016/"><em>Digital Transformation in the Financial Services Sector</em></a></li> <li><a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016/"><em>Digital Trends in the Financial Services and Insurance Sector</em></a></li> <li><a href="https://econsultancy.com/blog/67202-what-s-the-future-for-big-banks-in-a-fintech-world/"><em>What's the future for big banks in a FinTech world?</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68487 2016-11-09T14:09:00+00:00 2016-11-09T14:09:00+00:00 How can companies attract and retain talent in the digital age? Donna-Marie Bohan <p>The House of Commons Science and Technology Committee published <a href="http://www.publications.parliament.uk/pa/cm201617/cmselect/cmsctech/270/270.pdf" target="_blank">a report</a> earlier this year highlighting the ‘digital skills crisis’.</p> <p>It is estimated that this skills gap costs the UK economy £63bn a year in lost additional GDP. Urgent action is now required to tackle this skills shortage.</p> <h4>So how can organisations respond?</h4> <p>Econsultancy’s <a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/" target="_blank">Organisational Structures and Resourcing Best Practice Guide</a> illustrates that finding staff with suitable digital skills is considered to be the most significant challenge or barrier to digital progress within organisations.</p> <p>And recruiting staff with the right mix of digital skills is difficult, particularly for SMEs or companies that aren’t based in large urban centres. </p> <p>This report also highlights that data/analytics, content marketing and website design and build are some of the most challenging areas for which to recruit. A lot of organisations are finding that they don’t have the analysts to make sense of data. </p> <p>There is now a trend towards recruiting top-of-the-funnel marketers and towards hiring for behaviour and attitudes rather than qualifications.</p> <p>Another Econsultancy report, <a href="https://econsultancy.com/reports/skills-of-the-modern-marketer/" target="_blank">Skills of the Modern Marketer</a>, illustrates the growing importance of softer interpersonal skills in the modern marketing organisation, alongside more vertically-focused expertise.</p> <p>As <a href="https://econsultancy.com/blog/67868-what-skills-do-employers-look-for-when-hiring-digital-marketers/" target="_blank">a result</a>, recruiters are increasingly looking for candidates who are curious, flexible as well as data-driven.</p> <p>In terms of what companies are doing to tackle the recruitment challenge, there are a number of initiatives and trends that we are seeing.</p> <h4>1. Creating a company culture to attract talent </h4> <p>In order to become the employer of choice for millennials, companies are introducing initiatives such as: </p> <ul> <li>Empowering and incentivising employees through stock-option plans, project leadership responsibilities and training and development opportunities.</li> <li>Building creative and comfortable workspaces that attract digital talent (Facebook and Google are great examples).</li> <li>Flexible and remote work options.</li> <li>Collaboration and knowledge sharing tools e.g. Slack and Yammer, as well as hardware preferences such as bring your own device. </li> </ul> <p>Since millennials align themselves with technology and demonstrate different behaviours and preferences, it makes sense for organisations to introduce initiatives such as these to improve recruitment, staff retention and employee satisfaction.</p> <p><em>Google offices in Soho, designed to encourage collaboration and creativity</em></p> <p><a href="https://www.flickr.com/photos/martinvars/7176331590"><img src="https://assets.econsultancy.com/images/0008/1138/Google_workspace.jpg" alt="" width="640" height="427"></a></p> <h4>2. Education outreach</h4> <p>Some companies have begun developing apprenticeships and school leaver programmes to attract young people who are developing technology skills at school or independently.</p> <p>For example, Lockheed Martin, an American aerospace, defence and advanced technologies company, <a href="http://www.lockheedmartin.co.uk/us/who-we-are/community/education.html">supports STEM education outreach activities</a>.</p> <p>Working with universities, colleges and schools to create a workforce with the right digital skills is a smart move towards finding and creating the digital workforce of the future. </p> <h4>3. Mining your own organisation for hidden talent</h4> <p>Many organisations are accepting that workers will come and go, and developing procedures to identify staff to upskill or move laterally within the company into new roles is a means of dealing with the challenge of recruiting and retaining staff.</p> <p>Regularly assessing employee’s competencies and matching these with in-demand skills can help with this.</p> <p>There is also a trend towards running employee exchange schemes with other digital organisations and employee rotation schemes, such as those run by P&amp;G, Google and Amazon, help with the sharing and development of new skills.</p> <p>And when talent has left the organisation, a forward-looking strategy of <a href="https://econsultancy.com/blog/67290-how-alumni-could-help-hr-combat-the-digital-skills-shortage/" target="_blank">creating alumni groups</a> can be used to bring back talent and utilise former employee networks.</p> <h4>4. Social recruitment</h4> <p>Social can be used to create a digital referral scheme whereby employee discussions are monitored on social platforms in order to source high-calibre talent.</p> <p>We've previously written about <a href="https://econsultancy.com/blog/66237-five-ways-to-make-social-media-a-positive-recruiting-tool/">how social can be used as a positive recruitment tool</a>.</p> <p>And you can read more about brands that are leading the way in terms of attracting the best digital talent in <a href="http://www.tiffanystjames.com/companies-attracting-best-digital-talent/">an article by Tiffany St James</a>, a digital transformation strategist and speaker who has written about the social recruitment trend.</p> <h4>5. Online gig economy </h4> <p>Another trend we are seeing is organisations benefitting from the online gig economy or on-demand workforce.</p> <p>For example, Upwork is an on-demand freelance talent marketplace, which speeds up talent recruitment. Unilever, Panasonic, Pinterest, Microsoft and Amazon have all used its services. </p> <h4>In summary...</h4> <p>The above examples highlight the significance of innovation and the fundamental role that employers can play in preparing the workforce for the future.</p> <p>The pace of <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> is showing no signs of abating.</p> <p>In order to combat the growing digital skills deficit, it is important now more than ever for organisations to experiment with recruitment strategies and to educate and provide employees with the advanced skills needed to shape the digital economy.   </p> <p><em>To benchmark your own knowledge, take <a href="https://econsultancy.com/training/digital-skills-index-lite/">Econsultancy’s Digital Skills Index</a>.</em></p> <p><em>And to improve your skills, check out our range of <a href="https://econsultancy.com/training/">digital marketing and ecommerce training courses</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68498 2016-11-07T00:00:00+00:00 2016-11-07T00:00:00+00:00 Three ways to avoid being disrupted in an age of innovation Seán Donnelly <p><img src="https://assets.econsultancy.com/images/0008/1232/Wired_2016.JPG" alt="Wired 2016" width="338" height="192"></p> <p>One of the speakers at the event was Taavet Hinrikus, CEO of financial services disruptor TransferWise.</p> <p>In an age of tech startups aiming to disrupt entire industries, Hinrikus had three pieces of advice which apply for any organisation be they disruptor or traditional incumbent:</p> <ol> <li>Don’t get greedy</li> <li>Focus on the customer</li> <li>Keep asking ‘What if?’</li> </ol> <p>So what does this advice mean for marketers? Well, one of the research trends that we have observed in recent years is marketers pointing towards <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences/">customer experience (CX)</a> as a means for creating sustainable competitive advantage.</p> <p>If that’s the case, then perhaps these three pieces of advice, while perhaps seeming trite, make sense. Let’s examine why.</p> <h3>Don’t get greedy</h3> <p>Sure, marketers need to raise awareness of their organisations products and services, ultimately to convert that awareness into sales.</p> <p>As important as being financially successful is, organisations should not prioritise profits over customer experience. There are two ways of looking at this.</p> <p>Firstly, marketers that can optimise customer experiences can start to focus on customer loyalty and advocacy.</p> <p>This may increase the <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">lifetime value</a> of that customer based on both subsequent purchases and purchases by third parties influenced by that customer advocate. (This can change the entire marketing operation and from driving intention to purchase to focusing on customer experience).</p> <p>Secondly, companies that put profit before customer experience may be more at risk of being disrupted.</p> <p>One of the biggest examples of a company that took that approach is <a href="https://econsultancy.com/blog/8742-what-can-we-learn-from-kodak-s-demise/">the demise of Kodak which filed for bankruptcy in 2012</a>. This sad 'Kodak moment' came about largely because the camera brand failed to embrace digital technology.</p> <p>The company invented the digital camera in the 1970s, but executives sat on the technology for fear of cannibalising its core business of selling films.</p> <p>Had Kodak made the customer rather than the bottom line its number one priority, would things have been different? We’ll never know.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1230/kodak-blog-flyer.jpg" alt="" width="470" height="324"></p> <h3>Focus on the customer</h3> <p>Of course Kodak isn’t the only company to have not put the customer at the heart of what they do.</p> <p>Consider the case of the once mighty Nokia, the first handset manufacturer to release anything with true mass appeal. It made great phones and had a dominant market share until Steve Jobs came along with the iPhone in 2007. Then things changed rather quickly. </p> <p>According to Hinrikus, customers won’t tell you where your next innovation will come from but they’ll be your northern star.</p> <p>Until 2007, Nokia stayed ahead of its competitors by creating great hardware, but what Apple did was release something that was as much about the software as the hardware. Some analysts blame the decline of Nokia on its slow realisation of the importance of software, at least in the initial stages.</p> <p>Hindsight of course is 2020 vision. </p> <h3>Keep asking what if?</h3> <p>Hinrikus suggests that companies need to retain their curiosity and keep asking what if?</p> <p>I would go one step further to suggest that organisations, led by marketers as the ones closest to the customers, should keep a vigilant eye on the market so that they can evolve rather than revolve, lest their organisations get disrupted in a manner akin to Nokia or Kodak.</p> <p>This means being willing to take risks, spend on product innovation and conduct continuous real-time market research. It may also mean being open to cannibalising your own business. </p> <p>By asking what if, marketers can go some way to identifying how their business might be cannibalised, whether they initiate the process or not. There are two main ways that business might be cannibalised:</p> <ol> <li> <strong>General competition:</strong> Over time new competitors can enter a market with differentiated offerings based on quality, cost structure or price.</li> <li> <strong>Changes in technology and consumer behaviour:</strong> The second and potentially far quicker way is as a result of a change in technology and / or a change in consumer behaviour.</li> </ol> <p>One only needs to look to the smartphone and the role of apps to see how whole industries have been or are in the process of being disrupted.</p> <p>Digital has completely changed the telecommunications sector. Think of the nature of telephony, messaging, social media and instant connectivity. </p> <p>Skype was founded in 2003 by Niklaus Zennstrröm and Janus Friis and developed in Estonia. Hinrikus worked at Skype from the start as Director of Strategy.</p> <p>Hinrikus shared a quote by AT&amp;T from around 2004: “What Skype is doing is like a toy. They will realise they can’t scale it, they don’t have a brand like the AT&amp;T brand, and they don’t have the local footprint, which we have. It’s going to be very hard to compete with someone like AT&amp;T.”</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1231/skype_quote-blog-flyer.jpg" alt="" width="470" height="306"></p> <p>AT&amp;T clearly didn’t understand the viral nature of the internet. Skype introduced audio conference calling in February 2004.</p> <p>By October of the same year, the company had 1.5m downloads and 100,000 concurrent users on Skype. Two years later Skype had reached half a billion downloads and had been acquired by eBay.</p> <p>Nowadays, 40% of long distance calls take place via Skype. It’s still available as a free download but is also available as part of Microsoft’s Office 365 services with added HD video conferencing and other features.</p><p>As successful as Skype is, one might even say that Skype hasn’t been as successful as it could have been. While users can send instant messages to each other, other applications such as WhatsApp and Facebook Messenger have overtaken Skype in terms of use for this feature.</p> <h3>Back to the basics?</h3> <p>There’s nothing that Hinrikus said that isn't common sense. As simple as his guidance seems, why do so many organisations get it wrong?</p> <p>Most marketers understand that putting the customer at the heart of everything that an organisation does is a difficult thing to do.</p> <p>For a start, it involves serious digital investment, beyond transactional platforms and digital campaigns. Digital isn’t an activity that can be separated from the core business anymore.</p> <p>Digital needs to make an impact transversally across all departments of an organisation. We’ve come to call this digital transformation and it’s a process that many marketers are leading within their own organisation. </p> <p>Secondly, companies, particularly large ones, can be slow and have many engrained processes that make it difficult for them to change: people, old technologies, slow IT development and of course shareholders seeking short term profit.</p> <h3>Last words</h3> <p>We can expect to see more disruption. We’ve already witnessed the disruption of music publishing and traditional media. We are starting to see exciting new innovations in financial services, education and healthcare. No doubt there’ll be others.</p> <p>So what can marketers do to address this reality? The answer according to Hinrikus: dream!</p> <p>The only mindset for disruption is to dream and keep asking “how can we change the world?” If you’re only trying to build a business, you’ve got the wrong mindset.</p> <h3>For more on digital transformation <br> </h3> <p>If you're struggling with Digital Transformation in your organisation or struggling to find information on the subject, then you should check out Econsultancy's various <a href="https://econsultancy.com/training/digital-transformation/search/?only=Report&amp;q=digital%20transformation" target="_self">reports</a> on the subject as well as our <a href="https://econsultancy.com/training/digital-transformation/?utm_source=Econ%20Blog%20&amp;utm_medium=Blog&amp;utm_campaign=BLOGDT" target="_self">digital transformation services</a> page and talk to the team about how we can help.</p> tag:www.econsultancy.com,2008:BlogPost/68356 2016-11-02T14:58:54+00:00 2016-11-02T14:58:54+00:00 What is an innovation lab and how do they work? Ben Davis <p>But what exactly is an innovation lab, and how do they work?</p> <h3>How to define an innovation lab?</h3> <p>The drawing below shows there are many ways to encourage innovation within a business.</p> <p>Some of these involve a strategic and goal-focused unit, perhaps focused on a specific area like big data, tasked with creating anything from a new product or service to a new technology or business model.</p> <p>Other innovation initiatives may not be physically co-located, they can be as radical as Google's model of 20% 'free' time for workers to innovate, or simply involve setting up a group to collaborate with other industries, startups, or academia.</p> <p><img src="https://assets.econsultancy.com/images/0007/9791/defining_innovation.jpg" alt="innovation labs" width="615"></p> <p><em>Image via <a href="http://eu.wiley.com/WileyCDA/WileyTitle/productCd-111921887X.html">The Fintech Book, Wiley</a></em></p> <h3>The challenges of setting up an innovation lab</h3> <p>Andra Sonea, systems architect, <a href="https://www.linkedin.com/pulse/fintechbook-so-you-think-innovation-lab-answer-andra-sonea?trk=prof-post">eloquently sums up</a> some of the many questions that companies need to ask themselves in the course of creating an innovation lab.</p> <p>I'll paraphrase slightly as follows:</p> <ul> <li>What roles should be filled?</li> <li>What types of people make the best innovators?</li> <li>Should you recruit from inside the company or look for fresh perspectives?</li> <li>Do you define a governance framework from the beginning or let it evolve?</li> <li>What projects will you prioritise?</li> <li>How do you integrate with the rest of the organisation and not be perceived as outlaws?</li> <li>Do you need dedicated infrastructure?</li> <li>How can ideas be tested softly? Who are your actual clients?</li> </ul> <h3>The aims of the innovation lab</h3> <p>Whilst the goal of any innovation lab is ultimately to create new revenue streams or bolster existing ones by improving productivity or speed, there is much more to consider.</p> <p>Many of the methods of encouraging innovation represent both means and an end. For example, a new culture of working may be beneficial for productivity, but in its own right can make for a happier workforce.</p> <p>So, what are some of the common aims of the innovation lab?</p> <p><strong>Incubating a new culture</strong></p> <p>Many think of culture as the wishy washy side of both innovation and <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <p>Fixing <a href="https://en.wikipedia.org/wiki/Broken_windows_theory">broken windows</a> (the idea of new office decor, relaxed dress code and seating, and Macs for all) can often be seen as an empty gesture - snacks can only make a company so much more enjoyable to work at.</p> <p>However, these changes are an important step when combined with a focus on new ways of working - customer centric, data driven, tech-enabled.</p> <p>Communication between a lab and other teams, often involving a cross-functional team, is important in instigating a 'test, learn, iterate' culture.</p> <p>One of the challenges of the lab, as Sean Cornwell of Travelex states (though referring to broader digital transformation), is avoiding the cool kids in the corner syndrome.</p> <p>Incubating culture is a fine balance and further down the line may ultimately hinge on hiring and firing.</p> <p><strong>Ideation</strong></p> <p>Fairly obviously, this is a large part of what innovation labs promise. That can involve hackathons or day-long collaborative events.</p> <p>Innovation labs may work on proposals submitted from across the business, even involving a competition element to reward teams or employees.</p> <p>At the lighter end of the lab scale, hack spaces or CX demos can be created merely to demonstrate the latest tech in a particular industry and encourage staff or even clients to think big.</p> <p><strong>Talent replenishment</strong></p> <p>A catch-22 can occur at relatively slow-moving companies. These companies must attract talented staff with digital skillsets in order to change the company, but these candidates may not want to work for companies that may be perceived as boring or old fashioned.</p> <p>So, the lab can be created as an attractive base for new employees. Ryanair provides a good case study here, <a href="https://econsultancy.com/blog/65141-what-does-ryanair-labs-reveal-about-company-culture/">showcasing all the benefits of working for its lab</a> on a dedicated microsite.</p> <p>Salary, empowerment, startup culture and often a new location (such as a metropolitan office rather than the out-of-town HQ) are all used as a draw.</p> <p><img src="https://assets.econsultancy.com/images/resized/0005/0176/labs-blog-full.png" alt="ryanair labs" width="615" height="238"></p> <p><strong>Open data</strong></p> <p>This isn't always an aim of innovation labs, but opening up data for third parties to innovate can be a good method of early product development in certain industries.</p> <p>Nesta, the British innovation charity, runs the Open Data Challenge with the Open Data Institute, which has spawned new digital products and boasts a five to tenfold ROI.</p> <p>One such product built on open data is <a href="http://www.movemakerapp.co.uk/">Movemaker</a>, an 'app for house hunters, which helps people living in social housing swap their properties'.</p> <p><strong>In-housing</strong></p> <p>Part of investment in a lab can be a focus on developing in-house capabilties.</p> <p>Rather than looking to agencies to develop new media, for example, companies can bring competency in house.</p> <p><strong>Emphasising long term revenue</strong></p> <p>The lab can be a form of insulation against short term accounting that some see as the enemy of innovation.</p> <p>Though product development can be fast through agile methods, creating new products or business models doesn't always lead to an immediate return. The lab is an environment where long-term thinking can be encouraged.</p> <p>This requires what <a href="https://econsultancy.com/blog/67099-hive-a-startup-culture-in-a-corporate-behemoth/">Tom Guy of Hive</a> (British Gas's home internet-of-things spinoff) calls 'air cover' from stakeholders.</p> <p>Time and money granted from senior members of the business, managing upwards.</p> <p><strong>New businesses</strong></p> <p>Investing in an accelerator allows companies to give money, facilities and training to a range of startups and have a stake in their success, either aiming for integration in the long term, or a portfolio of successful tagential businesses.</p> <p>Axel Springer's Plug and Play accelerator in Berlin is a good example, and includes other partners such as Deutsche Bank. </p> <h3>So, innovation labs should be much more than PR</h3> <p>In summary, though labs can seem like PR on the surface, they need to stand for much more in order to change big businesses.</p> tag:www.econsultancy.com,2008:BlogPost/68456 2016-10-26T14:30:00+01:00 2016-10-26T14:30:00+01:00 A look at CVS Health’s purpose-driven approach to business transformation Katharina Pesch <p>In a competitive market, with declining market share and a poor reputation, CVS had to re-imagine and re-position its brand.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">"You can't be a purpose-driven brand if you're not a purpose-driven company" - impressed w/ <a href="https://twitter.com/CVSHealth">@CVSHealth</a> <a href="https://twitter.com/hashtag/CMO?src=hash">#CMO</a> <a href="https://twitter.com/ndegreve">@ndegreve</a> <a href="https://twitter.com/hashtag/ANAMasters?src=hash">#ANAMasters</a> <a href="https://t.co/e0KRLb8xtv">pic.twitter.com/e0KRLb8xtv</a></p> — Steven Wolfe Pereira (@wolfepereira) <a href="https://twitter.com/wolfepereira/status/789126242742173696">October 20, 2016</a> </blockquote> <p>After some serious soul-searching, CVS had the courage to stake its flag to a restated purpose: “Helping people on their path to better health.”</p> <p>Sounds reasonable, <strong>but what does that really mean?</strong></p> <p>Known for its retail pharmacy outlets, CVS is an enormous company with inertia in brand perception and customer expectations.</p> <p>It needed to change minds and that began with a new name and the shift from CVS Caremark to CVS Health.</p> <p>But this newly purpose-driven brand went beyond words by acting on its vision and changing lives.</p> <p>Not a small challenge for company with $153bn in 2015 revenue! </p> <p>At the heart of this purpose-driven positioning was the big and very <a href="http://www.cvshealth.com/thought-leadership/message-from-larry-merlo-president-and-ceo">bold decision to stop selling cigarettes in all its US stores</a>.</p> <p>On October 1, 2014, CVS consciously, confidently and conspicuously lost $2bn of revenue to protect its customers from harm and align with its purpose to help people get healthier. </p> <p>Giving up billions in revenue isn’t easy, and the decision took intense, board level negotiations.</p> <p>But the team knew what it was doing and where CVS was going because the marketing strategy was also a business strategy.  </p> <p>When CVS ended tobacco sales, the attention wasn’t just a short-lived blip in the news cycle.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/CVSHealth">@CVSHealth</a> is making bold and powerful moves, changing their category and even changing the world. <a href="https://twitter.com/hashtag/ANAMasters?src=hash">#ANAMasters</a> <a href="https://t.co/BNqQCCsCnh">pic.twitter.com/BNqQCCsCnh</a></p> — MMC (@MMCtweets) <a href="https://twitter.com/MMCtweets/status/789132129284321280">October 20, 2016</a> </blockquote> <p>The move resonated with customers and they rewarded the company with growth.</p> <p>Today, CVS is number seven on the Fortune 500 list despite giving up that significant revenue stream and standing-up for a clear purpose.</p> <h3>Takeaways</h3> <p>The three key take-aways for brand marketers from CVS Health:</p> <h4>1. Stand up</h4> <p>Be a purpose-driven business only if you can live it and prove it in your actions, all of them needing to be relevant to your business.</p> <p>In Norman’s words “deeds matter more than creeds.” </p> <h4>2. Stand out</h4> <p>Find a unique way to say who you are and what you’re doing, find an identifiable voice identifiable at a glance and from a distance. </p> <h4>3. Stand firm</h4> <p>Being purpose-driven is not just a marketing strategy.</p> <p>That purpose is fundamental to strategy, and should drive product, operations, HR and everything else.</p> <p>For example, CVS stopped selling sunscreen with an SPF less than 15 because it has been proven to not work. </p> <p>If you stand up, stand firm and stand out your customers will stand with you. </p> <p><em>For more on this topic, see Econsultancy’s report on <a href="https://www.econsultancy.com/reports/embracing-digital-transformation-in-the-pharma-and-healthcare-sectors/">Embracing Digital Transformation in the Pharma and Healthcare Sectors</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68423 2016-10-21T11:45:54+01:00 2016-10-21T11:45:54+01:00 How fashion and travel are leading the way in m-commerce Gregory Gazagne <p><a href="http://www.deloitte.co.uk/mobileuk/">Deloitte’s Mobile Consumer Survey</a> found that UK citizens look at their smartphones over a billion times a day, declaring that “no other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to.”</p> <p>Around the same time in late September the IAB released its ‘<a href="http://www.businesswire.com/news/home/20160927005394/en/Three-Quarters-Mobile-Users-World-Purchases-Smartphones-Tablets">Mobile Commerce: A Global Perspective</a>’ survey, which found that three-quarters (75%) of smartphone and tablet users say they have purchased a product or service on their smartphone or tablet in the past six months, and nearly a quarter (23%) buy on mobile devices on a weekly basis.</p> <p>As the retail industry rapidly adapts to mobile usage, at Criteo we’re able to analyse millions of online sales in real time, on all devices and from thousands of brands across all industries.</p> <p>With this front-row seat to the very latest in mobile commerce, we’re especially interested in looking at the way different retail industries are keeping pace with the rate of change.</p> <p>Because of the specific challenges facing them, we’ve seen that the fashion industry in particular is blazing a trail in smartphone targeting, including cross-channel strategies, and travel is making its mark by providing superior customer experience/ better conversions via apps.</p> <p>What’s driving these industries to lead in these areas – and what can others learn from them?</p> <h3><strong>The rise of the ‘Smartphonista’</strong></h3> <p>Last month’s New York-London-Milan-Paris Fashion Weeks saw the <a href="https://www.theguardian.com/commentisfree/2016/sep/30/us-vogue-editors-ridiculous-fashion-shows-changed-bloggers">old guard of print fashion journalism clash with the fashion world’s new digital influencers</a>, who rely on blogging platforms and Instagram to communicate with their thousands of followers.</p> <p>Their argument is symptomatic of a wider trend: that smartphones are revolutionising the way the fashion industry markets and sells its wares, and this is causing headaches for traditional media – but driving strong results on digital channels.</p> <p>According to Criteo <a href="http://www.criteo.com/resources/fashion-flash-report-2016/">data</a>, clothes have quickly become the premier mobile purchase in the UK, with 55% of online fashion purchases now being made through mobile (smartphones or tablets), and four out of 10 of all fashion purchases in the UK being made through smartphones.</p> <p>This makes fashion shoppers that purchase on smartphones (who we’ve coined ‘Smartphonistas’) a particularly valuable audience for fashion retailers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0592/criteo_slide.png" alt="" width="800"></p> <p>Mobile is perfect for this kind of off-the-cuff purchase, allowing consumers to browse flash sales on their phone, shop while watching TV, or buy an article of clothing on a whim.</p> <p>In addition to impulse, these purchases can also be driven by social connections and social influence (as evidenced by the rise of the fashion bloggers so vilified by Vogue).</p> <p>Social media – particularly Snapchat, Instagram and Pinterest – appears to strongly influence clothing purchases on mobile.</p> <p>Heavy Snapchat users are 139% more likely to buy clothes on mobile than the average Brit, while heavy Instagram (113%) and Pinterest (83%) users are also much more likely than average to buy clothing on mobile, according to <a href="http://www.criteo.com/resources/a-portrait-of-mobile-performance/">Criteo’s Portrait of Performance report</a>.</p> <p>Despite all this, acquiring new fashion customers is notoriously hard.</p> <p>What’s more, it can take several purchases before a customer earns you a profit, and turning new customers into loyal buyers takes finesse.</p> <p>In response to these challenges, fashion retailers are starting to recognise what products drive the best response on what device.</p> <p>For example, fashion shoppers favour small screens for low-risk items (T-shirts etc.) and products they don't need to try on (e.g. accessories).</p> <p>In addition, the new breed of Smartphonistas often use multiple devices on the path to purchase, so retailers are starting to track more effectively across devices in order to send the right message to the right person, at the right time.</p> <p>Nadya Birca, Senior Digital Marketing Manager at New Look told us that the key to successfully engaging with the Smarphonista is to recognise that he or she expects a truly cross-channel experience:</p> <p>“With mobile usage soaring in the UK, the experience we’re aiming to deliver on mobile is significant for our interactions with customers both on- and off-line.</p> <p>"When browsing on mobile we shouldn’t expect users to purchase straight away - allowing them a seamless navigational exploration, and later consideration experience, is what should drive any mobile commerce business focus.”</p> <h3><strong>Destination App</strong></h3> <p>As the 36th annual <a href="http://wtd.unwto.org/en">World Tourism Day</a> reminded us at the end of last month, the tourism industry continues to drive positive social, cultural, political and economic impacts worldwide.</p> <p>In many countries, including the UK, the travel industry is feeling the positive impact of the rise of smartphone use.</p> <p>Criteo’s latest Travel Flash Report shows that one in five Brits now browse for travel options on their mobile phones, and close to one-third of online travel bookings worldwide took place on mobile devices in Q2 2016 (up 24% from the year before).</p> <p>During the same period, smartphones captured nearly one in five online travel bookings.</p> <p>But that’s not all – the travel industry, more than most other verticals, is seeing particular success when it comes to mobile apps.</p> <p>According to our data, with investment in in-app tracking and advertising, committed travel advertisers are seeing a surge of bookings made from apps.</p> <p>Apps generated 57% of mobile bookings in Q1 2016, up from 40% in Q3 2015.</p> <p>Over the past two years, travel brands that invested in their apps saw constant growth in app bookings from 12% to now over half of all mobile bookings. </p> <p>For one-night stays, apps have a clear lead over other devices or platforms, with nearly three in four app bookings made for one-night stays.</p> <p>The most effective travel mobile strategies encourage app installs with services that really make a difference:</p> <ul> <li>Personalising recommendations based on searches, selection criteria, past travels and wish lists</li> <li>Sending up-to-date, useful and non-intrusive notifications (e.g., check-in reminders, traffic, delays, alternatives, cancellation, nearby offers)</li> <li>Offering better deals on your app to temporarily capture downloads and bookings, but be consistent to sustain them</li> <li>Enabling one-click bookings with intelligent auto-fill of personal details (while highlighting payment security)</li> </ul> <p>App bookings are on a roll, and we can see that merchants who invested in and promoted apps early are now reaping the benefits. </p> tag:www.econsultancy.com,2008:BlogPost/68424 2016-10-19T14:23:52+01:00 2016-10-19T14:23:52+01:00 How mobile-enabled analytics can help to boost sales in-store Stephanie Miller <p>Mobile is changing both the front and back end experience of the customer journey. </p> <p>Not only are customers using devices to research, buy and discover products, marketers are using devices to gather crucial data to accelerate the sales path. </p> <p>One area of successful <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> is how mobile analytics has changed the buying experience - in retail, hospitality and even healthcare. </p> <p>We all love ecommerce with its efficiency and cost effective sales approach. </p> <p>Yet, the retail floor is still a huge opportunity - not just for sales, but for insights on customer behavior and interests. </p> <p>(If you need more proof, look at how the king of ecommerce Amazon, is <a href="http://www.wsj.com/articles/amazon-plans-hundreds-of-brick-and-mortar-bookstores-mall-ceo-says-1454449475">moving into brick and mortar</a>.)</p> <p>While manufacturer feedback programs have improved over the past two decades with the introduction of sales receipt data and custom couponing, mobile analytics is taking consumer insights to a new level. </p> <p>In retail, perishable goods from yogurt to frozen foods have the most intense considerations for predictive analytics, as overstocking from a miss on sales expectations can result in major product spoilage. </p> <p>Similarly, beverage companies have found that optimized sales require constant attention to the display, samples and price adjustments for competitive promotions.  </p> <p>Even sales of non-perishable goods like shavers from Gillette or magazines can suffer if the product placement is not optimal for that store, market and customer base.</p> <p>Hotels and resorts have long used mobile data to encourage guests to upgrade, take advantage of on-site services, and eat in the location's restaurants.  </p> <p>Loyalty programs are now processing app data in real time to offer custom incentives and future bookings. </p> <p>Healthcare wellness programs now use fitness app data to track patient progress and drug regimen efficacy.</p> <p>Mobile analytics is transforming the opportunity by providing back office teams a view into the retail floor, hotel lobby and customer habits. </p> <h3>The need for organizational change</h3> <p>A <a href="http://info.gospotcheck.com/aberdeen-study-mobile-analytics">recent report</a> from Aberdeen Group found that top performing retail brands are 50% more likely than others to use analytics when managing store level activities.  </p> <p>When field workers are provided with smartphones, smartwatches and tablets, they can capture accurate data around stock levels and store sales in real time. </p> <p>The back office can analyze the data and make quick decisions about promotions, stock replenishment and product mix.</p> <p>Making a switch to analytics-driven measures requires a change in both corporate culture and employee up-skilling.  </p> <p>The organization must understand the power of real time analytics, and <a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">be structured to embrace and utilize the data quickly and efficiently</a>. </p> <p>Most merchandizing teams know the factors that have traditionally impacted sales, controlled and uncontrolled, from packaging to weather. </p> <p>The ability to assess and draw insights from data in real time is a similar set of skills, but with an agility and pace that focuses on core behavior drivers and uses an expanded set of actionable data. </p> <p>It takes a cross-functional team to support this kind of agile decision-making - all of whom need skills in agile marketing as well as data collection, management and analytics.</p> <p>The Aberdeen report shows that a formal process for demand planning and management - including mobile insights - has a very high impact on revenue growth and margins.  </p> <p><img src="https://assets.econsultancy.com/images/0008/0449/Aberdeen_Mobile_Study_chart__1_.png" alt="" width="640" height="399"></p> <p>Mobile insights alone are not enough, but they are a key element in keeping a real-time view of the retail sales floor, and a much more reliable and accurate measure of how sales are affected by promotions and outside factors like weather, cultural/pop trends, and seasonal events. </p> <p>"Being able to predict the 'what' and 'where' of products is imperative as organizations enable their field teams to work smarter and faster," the Aberdeen report found.  </p> <p>Plus, the marketing analytics and merchandizing teams can quickly chart a customer experience measure - and see where product changes or seasonal promotions have impact. </p> <p> The key benefits of gathering and utilizing real time insights through mobile reported by Aberdeen are:</p> <ol> <li>New revenue by capturing opportunity and avoiding risk</li> <li>Increased operational efficiency</li> <li>Customer experience improvements.</li> </ol> <p> Is your organization ready to embrace mobile analytics as a real time source of actionable insights? How are you using data captured via mobile devices in the field?</p> <p>Is there an opportunity to utilize existing data in a real-time fashion? </p> <p>For organizations outside of retail - hospitality, healthcare or transportation - are there lessons here to be adapted? </p> <p>Please provide comments below <a href="mailto:stephanie.miller@econsultancy.com">or email me</a> anytime.</p> tag:www.econsultancy.com,2008:TrainingDate/3104 2016-10-07T15:15:17+01:00 2016-10-07T15:15:17+01:00 Digital Transformation in Practice <p>Digital Transformation. The buzzword of the moment. Everybody from IBM to the British Government claim to be in the throes of digital transformation. But what is it and what does it mean in practice?</p> <p>This course will cut through the hype and answer a simple question. What does digital mean for how you do business? You will learn how digital has changed consumer behaviour. You will discover what steps you will need to take if your organisation is going to survive in this new business reality.</p> tag:www.econsultancy.com,2008:BlogPost/68346 2016-10-07T14:24:28+01:00 2016-10-07T14:24:28+01:00 New data shows why digital is now critical to pharma Patricio Robles <p>At the same time, more than half (53%) of all marketing to physicians takes place through "non-personal" marketing channels.</p> <p>Digital channels in this category include email and SMS alerts.</p> <p>Today, physicians say they spend 84 hours per year interacting with pharma firms through non-personal channels, which they estimate represents 64% of the total time they spend interacting with pharma firms.</p> <p>It can be overwhelming. According to ZS:</p> <blockquote> <p>Today, each of the 26,000 prescribers contacted most frequently by pharmacos receive around 2,800 contacts per year from the pharmaceutical industry.</p> <p>This amounts to about one contact – an in-person sales rep visit, email, phone call or other – every working hour, including weekends and holidays.</p> <p>And they receive these commercial messages on nearly every device, including iPads, mobile phones and laptops.</p> </blockquote> <p>Interestingly, despite the fact that physicians perceive that non-personal channels account for the majority of their pharma interactions and pharma companies estimate that 52% of their outreach is through non-personal channels, budgets don't appear to have shifted yet.</p> <p>A whopping 88% of sales and marketing dollars are still allocated to sales staff.</p> <h3>Increasingly elusive physicians</h3> <p>With the majority of physicians restricting access to sales reps, and 18% of them now "severely" restricting access by meeting with fewer than 30% of the reps who try to meet with them, it's clear that physicians are becoming more elusive and pharma marketers will need to up their game to reach them.</p> <p>According to Malcolm Sturgis, the associate principal at ZS who led the firm's study: "To reach physicians, the pharma industry must become more targeted and sophisticated in its multichannel marketing efforts.</p> <p>"As the variety of alternative marketing channels available today continue to expand, it is critical for pharma to focus on providing a better experience and respond promptly to customer challenges."</p> <p>That doesn't mean getting too aggressive, or going too broad.</p> <p>"While non-personal communications provide an opportunity to reach those 'tough-to-see' prescribers, blindly inundating healthcare providers with digital communications isn't the best solution," Sturgis noted.</p> <p>Pharma marketers will also need to carefully craft the messages they deliver to physicians because of trust: according to a study conducted by Deloitte Consulting, <a href="https://econsultancy.com/blog/67131-pharma-s-mobile-social-efforts-aren-t-as-healthy-as-they-should-be">75% of physicians don't entirely trust information that comes from pharma</a>.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/8526/deloitte2-blog-flyer.jpg" alt="" width="470" height="346"></p> <p>But despite the challenges pharma marketers face in today's environment, a large number (84%) told Deloitte that they are influenced by proprietary data, such as efficacy data, that only pharma companies can provide.</p> <p>And 65% indicated they'd be willing to interact with pharma firms around that content through social channels.</p> <p>There are also new channels, <a href="https://econsultancy.com/blog/67831-electronic-health-records-ehrs-could-help-pharma-marketers-reach-doctors">like EHRs</a>, through which pharma marketers have opportunities to provide value to physicians and interact with them in meaningful ways.</p> <p>So as physicians become harder to reach through traditional channels and take more control over their interactions with pharma companies, expect to see pharma marketers adapt by investing more in non-personal digital channels.</p> <p><em>For more on this topic, check out these reports:</em></p> <ul> <li><a href="https://econsultancy.com/reports/embracing-digital-transformation-in-the-pharma-and-healthcare-sectors/"><em>Embracing Digital Transformation in the Pharma and Healthcare Sectors</em></a></li> <li><a href="https://econsultancy.com/reports/healthcare-study-organizing-marketing-in-the-digital-age/"><em>Healthcare Study: Organizing Marketing in the Digital Age</em></a></li> </ul>