Our daily lives are shaped by the digital world. Whether it’s banking, shopping, reading or finding the fastest route to your hairdresser, technology has overwhelmingly changed the way we work, live and communicate. Given the digitalisation of our world, the Chief Digital Officer (CDO) is one of the rising marketing roles. The defining characteristic of this role is to make the digital strategy the foundation of the corporate strategy – or in other words to incorporate digital transformation at the core of an organisation. Quoting Joe Payne, former CEO at Eloqua, : “CEOs are from Mars; CMOs are from Venus”, CDOs have the ability to speak commercial lingo with a strong marketing mindset and solid technology understanding. The result is a strong value-adding bond between Finance, Technology and Marketing. The owner of this new C-suite seat is in a prime position to
Compared to other senior management roles, the CDO complements and influences other areas within the organisation as the digital transformation journey evolves. Based on a study from Russell Reynolds Associates the CDO’s psychometric characteristics are likely to be more innovative and disruptive. Investments in CDOs result in business growth Russel Reynolds Associates measured and compared the financial performance of digital-first companies to industry standards. The financial outcome of organisations that have invested in technology and transformation leadership speaks for itself: Unfortunately, due to the lack of major digital innovation hubs such as Silicon Valley, many companies in Australia and Asia are yet to take advantage of this opportunistic transition and create digital C-suite seats, according to Russell Reynolds Associates. Be reminded, digital transformation is here to stay, because customers embrace technologies, demand personalisation and respond to engaging authentic online experiences.
To kick-start the digital transformation journey, the following questions will support the decision making process (originally published by McKinsey&Company):
So, what do your answers look like?
7 Comments
The separation of horizontal and vertical digital marketing expansion This year started with some sketchy headlines including this one: ‘Digital Marketing is dead’. Unable to resist, I clicked through to read the shocking news. Well, I soon realised that even professional experts don't hesitate to make use of click-bait headlines. This headline is false on just so many levels. In fact, digital marketing has never been more alive as it is right now. Have we ever seen print die since its inception? Digital marketing has progressed and matured: In fact it has changed the way we look at marketing, business development and customer experiences. Digital is not just an integral part of the overall marketing direction, it is an important part of a business-wide transformation. Although such articles explain that digital and traditional marketing are integrating into a combined approach, digital marketing is very much thriving and strongly progressive. The reason why digital marketing will not die is because of its horizontal and vertical expansion:
What does the future of digital marketing look like? The key to a successful company is the integration of digital marketing across the business. Connecting customer digital marketing, technology and business intelligence (customer insights) will provide a strong framework to initiate the digital transformation process. The future of marketing is the overlapping area in the centre of the diagram shown below. The digital transformation process is a business wide change and requires leadership championing and support. While marketing and technology teams play a significant role in providing digital insights, digital transformation must include all customer-focused business units in order to create new customer values, redefine business structures and identify new delivery methods. Is Australia's digital economy less advanced and behind its global counterparts? Do businesses need to re-think the way they operate in an increasingly digital environment? The changing digital environment liberalises the access to consumers globally and disrupts commercial behaviours locally. The key to sustainable growth in a disruptive environments is to understand the behavioural shift in consumers. Panel colleagues:
Jack Mead, Operations Manager - Open Practice, GlobalX Legal Solutions Russ Vine, Managing Director, Ogilvy Brisbane Panel Chair: Cat Matson, Chief Digital Officer, City of Brisbane Australia's digital economy is less advanced and behind its global counterparts, according to a study by Ernst & Young in 2014 (State of the Nation Report 2014). Controversially, Australian consumers are very well connected and digital front runners: 65% of Australians own a smartphone, compared to only 56% in the USA and 40% in Germany (measured by Google's Our Mobile Planet).
Although many Australian businesses focus on local, regional or national markets, in an environment where digital perception is influenced globally, Australia, and many other economies, need to focus on digital transformation to compete and survive even in small or oligopolistic markets. With increasing access to digital information, services and products, consumers’ expectations and behaviours towards digital experiences develop based on global trends. To be able to compete and furthermore follow consumer demand of digital experiences, Australian businesses need to increase their efforts to revolutionise the way they operate in an increasingly digital environment. Changed digital environment Initiatives like Facebook’s internet.org, which is intended to provide internet access to the world’s population that live without an internet connection, will accelerate connectivity across local communities and global markets and increase disruption. While this doesn't seem to impact local Australian businesses immediately, it liberalises the access to consumers globally and disrupts commercial behaviours of local consumers short-term. Digital transformation has been a progressing topic within the digital industry as consumer behaviour has changed significantly. Many businesses, however, still try to practice their traditional business approach in a changing digital environment. The fact is, a successful and proven business or product does not perform the same way within a digital environment. Uber, as a recent example, successfully changed consumer travel behaviour and demand, while the taxi industry still applies their traditional business approach with shrinking success. With evolving technology, consumers demand a more sophisticated approach to digital engagement. Businesses must develop new values for consumers to deliver transparency, local, individual and tailored real-time information and authentic 1:1 interaction. The key to sustainable growth in a strong digital environment is to understand the behavioural shift in consumers and act accordingly. To do so, businesses have to expand their thinking of what 'digital' means from an operational, market and customer perspective to deliver a product and customer experience that is digitally sustainable. Need for digital transformation Digital transformation is revolutionising the way businesses develop products and markets, acquire and retain customers and disrupt themselves. Digital disruption is heavily driven by divergent thinking and the evolution of technology. Brands like Amazon, Airbnb and Uber have proven that even mature industries can be disrupted by creating new consumer experiences, values and needs. These businesses challenge existing revenue methods, eliminate cost structures and focus on operational flexibility. In the USA, Millennials recently overtook Baby Boomers as the largest living generation, with a buying power of $1.4 trillion annually, according to hispanicad.com. Millennials embrace technologies, demand personalisation and respond to engaging authentic online experiences. The current ‘share-economy’ phenomenon, which is heavily driven by Millennials, emphasises the need for digital transformation to secure long-term success. Digital transformation is required in order to compete in a global environment of digital disruption and ongoing behavioural shifts. Why businesses fail to digitalise Digital transformation involves risk. It impacts the current business and resources and requires a well-planned scope and financial resources – areas that many businesses are afraid to challenge. Combined with slow digital innovation, a risk averse bottom-to-top approach and a general misunderstanding of social media and digital technology are major internal roadblocks to build a digitally focused environment. Furthermore, it shows a lack of digital understanding in the top management to create a framework for digital transformation and digital growth. Paradoxically and controversially, businesses believe staff fall short in making the most of digital investment and to drive digital innovation, according to Econsultancy’s Marketing Budgets Report 2015. How to persuade digital shifts and create a digital transformation framework
Finishing with the recent statement of PM Malcom Turnbull on ABC News: "We have to recognise that the disruption that we see driven by technology, the volatility and change, is our friend ... if we are agile and smart enough to take advantage of it", there is hope that NBN and digital policy reforms will incentivise Australian businesses to look at how to operate strategically in digital environments. |