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How to create a compelling business case for Digital Transformation

Often, one of the greatest challenges for marketers is persuading senior leaders to more fully embrace digital within their organisations. Many marketers have a good idea about what they want to do, but need to argue the case internally in order to receive funding. In many cases, this is the major barrier to moving towards digital transformation.

It is imperative to have a clearly informed business case that helps position how digital can closely align with the goals of the business, and not on digital trends and fashions.

This presentation, which Building Blocks' co-founder, Jonathan Whiteside presented at the Figaro Digital Summit in March 2015, provides six practical tips for creating a business case.

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How to create a compelling business case for Digital Transformation

  1. 1. Building Blocks Building a Business Case For Digital Projects Jonathan Whiteside, Principal Consultant Building Blocks www.building-blocks.com
  2. 2. Building BlocksPresentation Name I wanted to hear about smart watches!
  3. 3. Building Blocks Want to be more strategic and demonstrate business value of digital
  4. 4. Building Blocks Why isn’t our digital strategy given more prominence?
  5. 5. Building Blocks Why isn’t our digital strategy given more prominence?
  6. 6. Building Blocks Why isn’t our digital strategy given more prominence?
  7. 7. Building Blocks How can we demonstrate the influence digital could have on achieving our business strategy?
  8. 8. Building Blocks 6 areas where we have seen success engaging senior teams. (innoparticularorder)
  9. 9. Building Blocks Cost Savings1
  10. 10. Building Blocks Technology Consolidation
  11. 11. Building Blocks New CMS Consolidated 5 systems Provided tools for new capabilities to achieve long term objectives
  12. 12. Building Blocks Savings Software Licenses and ASM Infrastructure (server) costs IT support & maintenance Future upgrades and enhancements 3rd party supplier costs Issues and inconsistencies between systems Opportunity costs of not focusing on revenue generating activities
  13. 13. Building Blocks Otherideas Print and mail costs Customer support costs Sales / account management Cash collection times through self services tools Admin costs (e.g. Freedom of Information requests)
  14. 14. Building Blocks Real numbers – in context2
  15. 15. Building Blocks Existing Conversion rate Target Conversion rate Conversion rate uplift Anticipated monthly conversion uplift 27.55% 30.93% +12.25% 4,920 Additional Leads Captured each month (value of £20 per lead) £98,000
  16. 16. Building Blocks ROI Investment £250,000 First year return £1,176,000 ROI 370%
  17. 17. Building Blocks Understanding and quantifying how your website is performing is a complex task. There are so many tools and activities available to marketers these days that help to drive and convert traffic it’s hard to know where to start and where to focus. A measurement framework helps businesses to benchmark performance, by presenting information in a consistent format as well as pinpointing areas for improvement. Measurement Framework?
  18. 18. Building Blocks 1) Be tied to your companies business strategy. 2) List clear objectives which performance can be measured against over time. 3) Outline what tools the business can utilise to collect data 4) Pinpoint what KPI’s will be measured to track performance against objectives. 5) Detail what activities will be undertaken to help achieve the objectives. A Measurement Framework should…
  19. 19. Building Blocks Objective 1 Objective 2 Objective 3 Objective 4 Activities KPI’s Measurement Framework Tools Activities KPI’s Tools Activities KPI’s Tools Activities KPI’s Tools Digital Strategy
  20. 20. Building Blocks Objective 1: Increase website traffic by 20% by over H2 of 2015 whilst growing % Organic Traffic against % total traffic Supporting Business Objective: Increase online revenue by 5% Activities - Keyword research - Competitor research - SEO keyword optimisation - Link building - Targeted PPC campaigns - Display Advertising - Social media marketing - Targeted email campaigns KPI’s - Website traffic - Volume of organic search % total traffic - Search engine keyword ranking - Competitor market share search reports Example Measurement Framework Tools - Google Analytics - Google Adwords - SEO tools - Competitor Research Tools
  21. 21. Building Blocks Objective 2: Increase user engagement across the website as a whole whilst reducing site wide bounce rate below 40% by H2 of 2015. Supporting Business Objective: Increase online revenue by 5% Activities - Create persona driven high value content. - Implement data capture value exchange campaigns - Personalise content based on content consumption - Conduct A/B testing - Dedicate a team to tactical BAU changes - Conduct User Tests KPI’s - Page views - Conversions (downloads, contact forms) - Time on site - Pages per session - Returning users - Bounce rates - Page load speeds Example Measurement Framework Tools - Google Analytics - Remote User Testing Tools - Personalisation module - Site Surveys
  22. 22. Building Blocks Real life feedback3
  23. 23. Building Blocks Spoke to customers and staff who interact with customers20 Customer telephone interviews 25 Customer facing, internal Staff interviews
  24. 24. Building Blocks Highlight real examples of where digital is causing issues or where there are opportunities Normally I'd Google ’[product name]' or something like that, and I know that that will be the first result that comes up. I find that’s normally a bit quicker than going into your website and typing ’[product name]'. I currently can't talk customers through finding products on the site as I know it is too difficult for them. So I spend time doing it myself and emailing them [INTERNAL] the website assumes you know what you’re looking for
  25. 25. Building Blocks “Guerilla” tools
  26. 26. Building Blocks
  27. 27. Building Blocks Digital disruptors analysis4
  28. 28. Building Blocks Look beyond traditional competitors
  29. 29. Building Blocks Digital tools can attempt to commoditize some traditional high volume products And provide convenience/pricing not offered previously Disruptors usually more digitally savvy
  30. 30. Building Blocks Traditional businesses can use existing assets (Reputation, Relationships) as a competitive advantage when building digital tools
  31. 31. Building Blocks Self-sufficiency5
  32. 32. Building Blocks Example: Eurocamp
  33. 33. Building Blocks Designed the ideal team structure filling skills gaps with external help to deliver the project
  34. 34. Building Blocks Upskill team during the project – building their capabilities and confidence
  35. 35. Building Blocks Leaving the team more self-sufficient – reducing external costs for BAU work
  36. 36. Building Blocks Roadmap and detailed plan6
  37. 37. Building Blocks Just because it’s written down doesn’t mean it will happen Be clear on how
  38. 38. Building Blocks What When Who How much
  39. 39. Building Blocks Highlight where activities that need business case funding fit into the overall digital roadmap
  40. 40. Building Blocks RACI Identify responsibilities and who is accountable and needs to be informed of certain decisions
  41. 41. Building Blocks  Align business case directly against business plan/strategy  Use numbers within context of business objectives  Provoke emotional reaction for less numerical cases using user feedback  Explore all ways that costs will be saved  Ensure the business case is sustainable  Have a detailed plan with clear responsibilities  Don’t ignore threats from digital disruptors Wrapping up
  42. 42. Building Blocks Thank you! Building Blocks