Embedding a digital DNA into your business

digital by default

EMBEDDING A DIGITAL DNA INTO YOUR ORGANISATIONMETTE NØHR, DIGITAL CONSULTANT

J. BOYE AARHUS 13

digital by default

WHAT ARE WE GOING TO TALK ABOUT TODAY?

The steps I have taken to lead my former workplace through a digital transformation

Strategic

Commercial

Operational

Structural

Cultural

Technical

Key takeaways

Models

Frameworks

Tips & hints

Achievements

...or actually ‘How you embed a

digital DNA into your organisation’METTE NØHR | EMBEDDING A DIGITAL DNA INTO YOUR ORGANISATION | J. BOYE AARHUS | NOV. 6, 2013 2

digital by default

BACKGROUND

Bio

Commercial background

Studied international marketing

Worked in online/digital since 1997

Worked abroad – Switzerland, US, UK

Been in the pharma, software business, insurance

Been establishing digital teams across borders

Managing teams of 10-15 FTEs

Specialities

People management, leading digital transformational change, eCommerce, strategy planning and execution, process optimization, facilitation, external partner management, budget planning, stakeholder engagement & management, networking, KPI planning, analysis of impact of digital, social media, UX, CMS, web analytics, multi-channel, digital platforms and infrastructure, SEO, SEM, new technologies and trends.

METTE NØHR | EMBEDDING A DIGITAL DNA INTO YOUR ORGANISATION | J. BOYE AARHUS | NOV. 6, 2013 3

digital by default

THESE GUYS USED TO

PAY MY SALARY AND

EMPLOY ME AS

‘HEAD OF EBUSINESS’

BUT NOW I HELP

COMPANIES

EMBED A DIGITAL DNA INTO THEIR

ORGANISATION


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MISSION STATEMENT: LONGER, HEALTHIER, HAPPIER LIVES

…they do this by providing a broad range of healthcare services.

Private and company health insurance, run care homes and hospitals, and provide workplace health services, health assessments and chronic disease managementservices, including health coaching, etc.

Employ over 62,000 people globally and more than 14M customers worldwide_______________________________________________________________________

Bupa International – 600K customers in 192 countries

Sell International Private Medical Insurance, Corporate Schemes and Travel Insurance

Run our own 24/7 emergency centre/alarm centre

Cover 35 different languages and we’re more than 25 nationalities employed.

Network of hospitals, doctors, specialists around the world.

Distributor-led organisation


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...THE INFLUENCE OF THE CONSUMER HAS CHANGED

Understanding the digital landscape


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Consumerization and digitalization are two of

the biggest business strategies among insurers

Both represent massive change in business processes and

technologies. Responding to consumer change and using

digital technologies to improve operations are essential in

meeting emerging and future market requirements.

Embracing both concepts will allow insurers to evolve to

better match customers, sales, and regulatory pressures

Kimberly Harris-FerranteVice president and distinguished analyst at GartnerMETTE NØHR | EMBEDDING A DIGITAL DNA INTO YOUR ORGANISATION | J. BOYE AARHUS | NOV. 6, 2013 7

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HOW DID WE DEFINE DIGITAL IN BUPA INTERNATIONAL?

“DIGITAL MEANS DEEPER INTERACTIONS WITH CUSTOMERS AND PARTNERS,

MORE CUSTOMIZED AND PERSONALIZED OFFERINGS AND INTERACTIONS,

DATA-DRIVEN DECISION MAKING, AND AN ORGANISATIONAL MODEL AND

PROCESSES WHICH ARE MORE NIMBLE AND REACTIVE TO CHANGES IN AN

ORGANISATIONS INTERNAL AND EXTERNAL ENVIRONMENT”


digital by default

DIGITAL JOURNEY...

“Innovation distinguishes between a leader and a follower”

Skype solution integrated with ourCall Manager system

Advanced online payment solution

Hospitals, clinics, doctorssearch and GPS tracker(iPhone/iPad/Androidapp)

Advanced Quote & Buy tool (personalisation, a/b split test, UX, multi-lingual)

First in the world to offer purchase of insurance online

SMS/Mobile solution

‘callback service’: SMS to Medical Centre in case of emergency

Renewal of annual travelinsurance via mobile (mobilepayment)

Online customersolution = no paper

eInsurance cardintegrated with ourback-end system (53 languages)

We offered web chat

to customers and partner 10 years ago

Personal, customizedwebsites for customers, brokers, hospitals, insuranceadmins

19962002

2004

2005

2006

2008

2010 2011

2012

2013

Cloud services, APIs (business critical functionalities exposed to the external world)

£M investments in a new digital platform, incl. Software, infrastructure, architecture, new digital roles, etc.


digital by default

DEVELOPING DIGITAL CAPABILITIES TO DRIVE CHANGE ACROSS THE

BUSINESS

Strategic

Commercial

OperationalCultural

Structural

Technology

Digital Transformation

• Offline & Online alignment• Enhanced customer experience• Create new business models• Deliver innovative propositions

• Impact on 3YP/AOP submission• Increase digital budget• Commercial value of digital

“Size of the prize”

• Business re-engineering

• Integrated and aligned planning• Impact of self service in operations

• Raise the profile of digital

• Think outside-the-box

• Roles, Responsibilities, Capabilities• Optimal structure & skills

• Investments in the right tech. platform• Building a scalable and future-proof

architecture and infrastructure


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Key takeaways

1. Define what digital is for your organisation

2. Be clear about your ambition (burning platform, incremental, reach…)

3. Set some ambitious and shared targets, objectives

4. Build/use digital strategic models that are accepted and understood by your

finance and strategy people

5. Align to the overall business, customer, contact, marketing, IT, partner

strategies

6. Customer expectations…outside –in thinking…

7. Review your digital strategy several times a year – it’s not just a one off

exercise...it’s a living, dynamic strategy

Digital Capabilites: Strategic

Strategically by putting digital at the heart, by aligning offline and online and by delivering innovative propositions that think digital first.

METTE NØHR | EMBEDDING A DIGITAL DNA INTO YOUR ORGANISATION | J. BOYE AARHUS | NOV. 6, 2013

Strategic

Commercial

OperationalCultural

Structural

Technology

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ONLINE TOP 3YP INITIATIVES - PROPOSITION PER TARGET AUDIENCE

ALIGNMENT TO BUSINESS 3YP STRATEGIC PRIORITIES


Digital Capabilites: Strategic

Business 3YP Strategic

PrioritiesBusiness Objectives Online Top Priorities

Digital Transformational

Targets by 2013Online Top 3YP Initiatives

CUSTOMER

PROPOSITION

Reach more customers in

existing markets and

improve the customer

experience:

NPS > = x

CSAT > = xx%

xxx lives/FTE ratio

1. Product development -

develop regional

products (Asia, Africa,

GCC).

1. Support the product

strategy - content, online

tools and functionality.

xx% online sales 1.1 Develop online

communications strategy

to support the SME target

group.

1.2 Increase non-paid

leads generation (SEO)

2. Improve UK transfer. 2. Dedicated UK transfer

pages on website.xx% online sales 1.1 Deliver dedicated

landing page.

3. Russia - ramp up sales

and marketing initiatives.

3. Support the Russia

initiatives with web

content and dedicated

landing pages.

1.1 Increase conversion

rate by xx%

1.1 Deliver dedicated

Russian landing pages

supported by online

marketing initiatives.

4. Deliver more effective

ways to pass customer

contacts into BI,

reengineer broker

proposition.

4. Support the new

contact strategy and

email management

projects.

1.1 Increase online

transactions to xx% of

total

1.2 Increase usage of our

servicing websites by xx%

1.1 Develop a strategy for

minimising contact

diversion on

Membersworld.

1.2 Revamped

Corporateworld

1.3 Revamped

Intermediaryworld

5. Reengineering core

customer-facing

processes + allow for

future decentralisation.

5. Support the 'new

business process' project.

1.1 Increase online


total

1.2 Increase usage of our

servicing websites by xx%

1.1 Implement a

revamped

Membersworld,

Intermediaryworld,

Corporateworld on new

CMS.

6. Customer

segmentation and drive

loyalty and retention.

6. Work closely together

with Customer Insights

and retention and loyalty

people, adopt the

segmentation model for

online.

1.1 Increase online


total

1.2 Increase conversion

rates on websites by xx%

1.3 Improve satisfaction

of our servicing websites

by xx% (using

Netpromoter to measure)

1.1 Implement

Test&Target tool on MW,

IW, CW to cater for true

personalisation.

Strategic

Commercial

OperationalCultural

Structural

Technology

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Key takeaways

1. Be clear on ROI – what’s the benefits – what’s the size of the prize?

2. Targets that reflect ambitions, and drive development

3. By understanding your tracking data and KPIs you can constantly evaluate the

business case behind each of the individual digital assets

4. Digital = business…you need to speak finance language – make it tangible

Digital Capabilites: Commercial

Commercially by adding digital transformational targets and benefits

into the AOP and 3YP, by including digital into top management

objectives and by increasing digital budgets.


Strategic

Commer-cial

OperationalCultural

Structural

Technology

13

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DIGITAL TARGETS MODEL – HIGH LEVEL LOGIC

SALES

LOWER COST TO SERVE

LOYALTY & RETENTION

1

3

2

Size of

Prize

Activities Metrics Benefits

3 types of activities

• GROWTH (revenue/profit)

• EFFICIENCY (lower cost to serve)

• ENGAGEMENT (positive impact

on NPS and retention)

37 available metrics

• Not all targets has a commercial value to it

Example

“ We believe online sales of BWHO the next 3 years will bring us XX number

of visits, that are converted into a sale according to XX conversion rates,

which means the BWHO accquisition opportunity is YYYY GBP

Size of

Prize


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OPERATIONALLY by reengineering your business and start converging online

and offline channels, by having an integrated planning cycle and finally by

understand impact on people and processes by doing more online.

Digital Capabilites: Operational

Key takeaways

1. Transparency is needed to get a single operational view of service – online

and offline

2. Work closely together with Operations and Sales to understand impact of

digital – i.e. high volume/low value transactions

3. Identify the top 3-4 digital activities for your customers and partners and

reengineer, optimise, improve on a continuous basis (80:20)

4. The impact of delivering poor experiences in one channel extends across

all touch-points.

5. We didn’t have an ‘e-enablement’ programme running in the

business…digital was integral to all the projects…not just an afterthought!

...administrative tasks are carried out online and relationship-buildinginteractions are carried out over the phone


Strategic

Commercial

Opera-tional

Cultural

Structural

Technology

Needs to become non-line...all that matters is Customer

Experience

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digital by default

Key takeaways Start the sharing close the gap

Stakeholder analysis/mapping

Engagement

Use same marketing techniques as you would do externally (Video, emails, face2face, social, etc.)

Digital Engagement Day – promoting digital and to understand the appetite – how fast, how much?

Team Dynamics

Team dashboard meetings (happy Index)

The right behaviour

Collaboration tools, BYOD, Tablets, smartphones

CULTURALLY: To bring our thinking and behaviour up to date. As our technical

capability improves, we need to think and work in new ways.

Digital Capabilites: Cultural


Strategic

Commercial

OperationalCultural

Structural

Technology

16

Shared visionInsights

Customer journey

Priority Organisation

Pipeline

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Structurally by being clear about roles, remits and responsibilities and by continuously

optimise, understand and plan for the most optimal skills and capabilities and finally to

be able to offer rapid, agile and high quality BAU and development services

Digital Capabilites: Structural

Key takeaways

Write up an eBusiness Service Catalogue

Be clear about roles and remits

Document processes, responsibilities

Your elevator speech – purpose

Marketing vs. eBusiness vs. Technology roles

Establish a cross functional Digital Steering Group (strategic) and

a Digital Operations Group (operational)

‘Digital ambassadors’ in Operations and Sales

Be aware that the old way of doing things has a lot of

momentum behind it…the new way needs support while it

becomes the new normal!


Strategic

Commercial

OperationalCultural

Structural

Technology

17

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WORKING CLOSELY WITH THE BUSINESS TO ENABLE DIGITAL TRANSFORMATION

Subject Matter

Expertise

Design

Analyse & Measure

Consult

Governance, Standards & Best Practice

Inn

ov

ate

, c

ata

lyse

& le

ad

ch

an

ge

Expert best practice resource to optimise digital across business functions

User Centred Design: research, concept & graphic development, delivery

Measure, interpret & report on digital service performance, making the case for change

Deep technical (digital) knowledge of interface between business & web technologies

Du

ring

Pre

After

Digital Capabilites: Structural


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THIS IS WHAT IT FEELS LIKE

BEING A DIGITAL LEADER

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Technology: piloted a target architecture to provide ability to have digital

interfaces interact with partners

Digital Capabilites: Technology


Strategic

Commercial

OperationalCultural

Structural

Techno-logy

Key takeaways

Make investments in digital platforms, infrastructure, architecture

Modernize underlying infrastructure so that it is scalable, low cost, flexible,

open and resilient

We created a single technical interface for our multiple back-end systems to

support the business drive to a single presence - adaptable and flexible for

the digital age

We were courageous to open up the APIs to the external world in order to

generate new opportunities for customers and partners

Make pilots (in a consistent, re-usable way) to demonstrate the value and

then roll out on a bigger scale

Make friends with the IT people

... However, no point in investing in tools and systems if you don’t have the mandate to hire the necessary resources and competences...

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…MY TOP 10 LEARNINGS

1. Digital transformation needs to come from the top

2. Understand the digital landscape

3. Align digital strategy with business strategy and objectives

4. Build internal capabilities and be clear on roles and responsibilities

5. Understand your customers and partners (segmentation, profiling, tiering, etc.)

6. Define clear metrics and set transformational targets (shared across the business)

7. Understand the commercial value...what’s the ‘size of the prize’?

8. Establish a culture that encourages experimentation

9. Take small steps, via pilots and skunkworks, and invest in the ones that work

10. Be clear on how you deliver and continuously optimise and improve

…the winners will be those who differentiatethemselves in a meaning full way, providing a truly different and value-adding customer experience.


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“It is not the strongest of the species that survives,

nor the most intelligent that survives.

It is the one that is the most adaptable to change.”

Charles Darwin

Origin of the Species

(1809 – 1882)


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Mette Nøhr, Digital Consultant

[email protected]

dk.linkedin.com/in/mettenohr


http://dk.linkedin.com/in/mettenohr