It’s perhaps surprising that marketers – who are often portrayed as ‘ideas’ people – can be as cautious as the next person. Many marketers continue to approach digital channels with a certain caution. During 2011, a majority of marketing campaigns by Havas Media were inclined towards traditional media, with only 10% of the budget being allocated to digital channels. Why the caution? The main reason is measurement: marketers are nervous about the perceived lack of metrics to determine ROI. A survey by the Association of National Advertisers in the US indicated that over 62% of marketers feel that the inability to prove ROI is a top concern[i]. Read more »
How much do you know about Mobility?
Do you know that Wal-Mart’s mobile app results in two extra visits to the store and a 40% additional spend per month from every customer[i]? That’s a lot of revenue potential.
Did you know about Domino’s Pizza, who allow customers to track the process from order to delivery on their mobile devices. Domino’s mobile sales have accounted for 22% of online sales in 2012 – larger than the entire company’s sales in 1998 alone[ii]!
How about the employee productivity and operational efficiency improvements of Indian general insurance company ICICI Lombard? It equips its surveyors with tablets that allow them to access accident case details, take pictures, classify claims and complete the claims process efficiently and remotely. This has improved their productivity by 30%-40%[iii].
These are exciting, innovative and ‘rich’ best practices with a clear revenue and efficiency upside. But as is often the case, much of the good news ends there. Very few companies are as successful as Wal-Mart or Domino’s with their mobile initiatives. We conducted a comprehensive research and found that very few organizations are actually doing much in mobility. Only 18% of the companies we surveyed had high mobile maturity levels. These top performers tend to adopt organization-wide mobility, offer feature-rich apps and are focused on continuous improvements in mobile capabilities. 86% of these top performing companies were from the Telecom, Technology and Financial Services sectors. Read more »
The importance of clicks to bricks, or how digital can unlock even further value from the ever-important physical store
It’s received wisdom that people do most of their shopping online. And with online retail sales in the US expected to hit the $370 billion mark by 2017, you can understand this perception. But, as with much received ‘wisdom’, the reality is more nuanced. In fact, these online channels will only bring in a small slice of the retail sales pie – just 10% of all US retail sales[i]! When it comes down to volume of sales, the brick-and-mortar store still reigns supreme. Sales conversions, too, are much higher in-store – 14 times higher than their e-business counterparts[ii]. If you drive up the numbers, in terms of footfall, you can expect to see your cash registers start ringing. Read more »
These are not comfortable times in retail banking. A leaner, meaner economic climate has hit branch networks hard – 5,000 bank branches in Spain have shut down since 2008[i]. US banks have a similar story to share with 3,000 branches shutting down between 2009 and 2012[ii]. It’s not just the quest to trim costs that has branches shutting down, however. We’re also seeing a sea-change in consumer behavior with more customers gravitating to online banking. In 2010, only 36% of US banking customers preferred banking online. But in 2011, that percentage shot up to a whopping 62%[iii]! Transactional banking activities that were previously the domain of physical branches are also being moved online[iv]. Read more »
Consider this: two-thirds of digital transformation projects fail mainly due to workforce behavioral issues[i]. Employee resistance and disengagement are major hurdles to digital transformation. In a sense, this is as it ever was: employee engagement has always been critical to driving any organizational change and digital transformation is no exception. When employees feel connected and engaged with organizational objectives, they are likely to put in 57% more effort[ii]. Therefore, the question remains: how can organizations turn disinterested and apathetic employees into enthusiastic digital advocates and ambassadors? A key factor can be gamification – the use of game design techniques in an enterprise environment to make tasks fun and engaging. Read more »
Senior executives in every industry – from media to electronics to paint manufacturing – face a bewildering array of new digital opportunities.
They are paying attention, but they have few signposts to guide them. Moreover, they are also faced with a barrage of advice – sometimes conflicting and often wrong – about moving their business into the digital world. In our three years researching digital transformation with the MIT Center for Digital Business, we discovered that many commonly held perceptions about digital transformation are actually myths. These myths can be dangerously misleading and lead to expensive mistakes for organizations as they plot their course in the new digital economy. It is time to debunk them! Read more »
“We don’t just want to lead the world in releasing government data – our aim is to make the UK an international role model in exploiting the potential of Open Data to generate new businesses and stimulate growth.”
These are ambitious words from Francis Maude — the Cabinet Minister entrusted with driving Open Data initiatives in the UK — and it is clear that the UK is one of the frontrunners in Open Data. Our research has shown that the UK belongs to a select group of Open Data achievers—an elite we like to call “Trend Setters”. These Trend Setters display three key characteristics: political support (100%), sharing of highly comprehensive data (80%), and substantial user participation across their Open Data portals (60%). These three criteria are common for all the high-achieving countries and we believe they are therefore critical for tapping into the economic benefits of Open Data. Read more »
Bring Your Own Device has all the hallmarks of a populist movement – it’s an intuitive, easily-grasped concept; it has intrinsic appeal to the Generation Y; and it resonates with our device-happy world. But on more rationale grounds, why should companies go down the BYOD route? One compelling rationale might appear to be the prospect of significant cost savings. With organizations no longer having to provide its people with computing devices or related software, it would seem fair to assume that BYOD might offer a cost advantage. However, what we found revealed a completely different picture – BYOD does not offer significant cost savings. Far from it, in fact. Read more »
The billion-dollar prize: how Digital Purchasing can deliver mouth-watering cost Savings through better spend control
It was Peter Drucker who put it so succinctly: “What gets measured gets managed.” That statement from the justly feted business sage holds especially true for spend analysis – a methodologythat enables organizations to wrest more control over their spend.Spend analysis tools are smart – they collect spend data from across different enterprise source systems, classify this data into a standardized format, enrich the data with complementary information around supplier, category, and usage, and finally, analyze the resultant spend. Read more »