tag:econsultancy.com,2008:/topics/digital-transformation Latest Digital Transformation content from Econsultancy 2016-10-26T14:30:00+01:00 tag: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: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: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: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: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> tag:econsultancy.com,2008:BlogPost/68376 2016-10-05T13:07:00+01:00 2016-10-05T13:07:00+01:00 Unilever: The biggest digital start-up in the world? Nikki Gilliland <p>Not quite.</p> <p>But an attention-grabbing headline is no bad thing, and Keith's talk focused on how Unilever's business model has adapted in an ever-changing world, inspired by the rise of the disruptive digital startup.</p> <p>Here’s a summary...</p> <h3>The changing landscape</h3> <p>Keith began by reminding us how the consumer journey has changed beyond recognition.</p> <p>And of course, you don’t have to be in advertising to have noticed this fact.</p> <p>With smartphone use taking over desktop for the first time this year, it’s not just what people are watching, but how people are watching it.</p> <p>Instead of seeing a TV ad on Thursday night and buying a product on a Saturday morning, the path to purchase is much more complex. </p> <p>Sharing, video, trust, sustainability, mobile - all these things are increasing important to millennials.</p> <p>And with millennials predicted to make up 75% of the workforce by 2025, understanding how to engage this core demographic is vital to understanding the workforce, not just Unilever consumers.</p> <p>So, how can a brand engage consumers at the right place and right time?</p> <h3>How can Unilever compete?</h3> <p>In order to keep pace with young and innovative brands, Keith highlighted three key parts of Unilever’s strategy.</p> <h4><strong>1. A differentiated strategy</strong></h4> <p>While any strategy is important to business, a digital strategy is fundamental in today’s changing landscape. </p> <p>When Keith first became CEO of Unilever, he undertook an exercise on trends within the business, discovering the four big drivers that would shape the business in future. </p> <p>Firstly, he cites the digital revolution, with companies like Twitter being the driving force behind this change. </p> <p>Next is how people are living differently, moving out of the countryside into towns and cities, as well as people and business moving south and east across the globe.</p> <p>Lastly, and probably most importantly for Unilever, is the environment under stress.</p> <p>In determining these four factors, the brand decided to move forward with social and environmental <a href="https://econsultancy.com/blog/68269-how-unilever-is-targeting-the-conscious-consumer/" target="_blank">sustainability as its core motivation</a>. </p> <p>Keith cited “building brands with purpose and which matter to people” as one of Unilever’s key engagement strategies. </p> <p>And a portfolio including the likes of T2 and <a href="https://econsultancy.com/blog/68139-the-rise-of-the-direct-to-consumer-model-it-s-not-just-dollar-shave-club/" target="_blank">Dollar Shave Club</a> also shows how Unilever is adapting to a distinct digital startup mentality.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">.<a href="https://twitter.com/Unilever">@Unilever</a> Keith Weed on millennials, disruption &amp; the rise of unicorns <a href="https://twitter.com/hashtag/FOM16?src=hash">#FOM16</a> <a href="https://twitter.com/FestofMarketing">@FestofMarketing</a> <a href="https://twitter.com/MarketingWeekEd">@MarketingWeekEd</a> <a href="https://t.co/bvEdrDuLYu">pic.twitter.com/bvEdrDuLYu</a></p> — Charlotte Rogers (@Chardy_Rogers) <a href="https://twitter.com/Chardy_Rogers/status/783583321494319104">October 5, 2016</a> </blockquote> <h4><strong>2. Being bold and experimentation</strong></h4> <p>Alongside Unilever’s differentiated strategy is a big focus on experimentation.</p> <p>Firstly, through Unilever Ventures - investing in the kind of companies that can better help the brand to understand the digital world.</p> <p>Keith cited Mirriad as a brand that is particularly impressive in its simple yet brilliantly innovative use of technology.</p> <p>Essentially, it inserts product placement into syndicated television during post-production, allowing brands to become visible.</p> <p>Further to this type of investment, the Unilever Foundry is another way the startup ethos has been purposely brought into the company, through a culture of 'experiment, fail, learn, repeat'.</p> <p>With a 50% success rate in working alongside startups, it is a division that continues to push boundaries with success stories such as the ability to personalise Marmite bottles or work with Olapic to capture user-generated imagery.</p> <p>By working with external companies, Unilever has ultimately changed the way it operates internally.</p> <p>Using mentors and advisors to inspire learning – and even implementing reverse mentoring from startups – it has created a culture built on innovation through collaboration, and one that embraces disruption. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">"Make investments that help you understand the digital world and innovate the way you do <a href="https://twitter.com/hashtag/marketing?src=hash">#marketing</a>" <a href="https://twitter.com/hashtag/FOM16?src=hash">#FOM16</a> <a href="https://t.co/Zbv8QqE9JP">pic.twitter.com/Zbv8QqE9JP</a></p> — Keith Weed (@keithweed) <a href="https://twitter.com/keithweed/status/783588358819835904">October 5, 2016</a> </blockquote> <h4><strong>3. Tooling up</strong></h4> <p>Lastly, Keith talked about how skills and capability building is at the core of Unilever’s strategy.</p> <p>You’d never see a sports team sitting around eating crisps before a game, would you?</p> <p>So why do marketers think so differently about training?</p> <p>Keith hammered home the fact that businesses need to accept that we need to take a different approach to skills and capabilities in this ever changing world. </p> <p>On one hand, we have the digital natives – those who have grown up with technology.</p> <p>But on the other we have the ‘lost generation’ - the people in their late thirties early forties who might lack knowledge, but do not seek help to further it. </p> <p>As a result, Unilever invests in training across the board, with an increased budget for mandatory training.</p> <p>Keith talked about this mandatory training as 'being cruel to be kind' because if we don't learn as marketers, there's another generation coming through that knows a lot in this area.</p> <h3>Living the space</h3> <p>Keith finished by emphasising the importance of ‘living the space’.</p> <p>In other words – doing all the things that consumers do in order to gain inspiration and insight. </p> <p>Instead of sitting back and watching changes happen, this means being at the forefront when they do.</p> <p>So, while Unilever might not actually be the biggest digital startup in the world, we can see why it might inspire the smallest.</p> tag:econsultancy.com,2008:BlogPost/68358 2016-10-04T16:01:26+01:00 2016-10-04T16:01:26+01:00 How L&D teams keep up with the millennial workforce Stephanie Miller <p>At a recent roundtable event led by Econsultancy in New York, learning and development (L&amp;D) executives discussed the challenges of meeting the disparate needs of a multi-generational workforce and shared ideas on what is working well now.</p> <p>In short, millennials do not value the same benefits as baby boomers - things like stability and <a href="https://en.wikipedia.org/wiki/401(k)">401K contributions</a> and good health plans are not motivating to them.</p> <p>Instead, millennials seek "purpose" at work.  </p> <p>They look for everything from supporting social justice to "work with meaning" to ownership of the company and the stated mission. </p> <p>Perks also vary and are often non-traditional, ranging from dogs at the office and beer fridges to flexible hours in remote locations.  </p> <p>While everyone from <a href="http://proto-knowledge.blogspot.com/2010/11/what-is-wrong-with-young-people-today.html">Aristotle</a> forward has lamented the "strangeness" and unexpected behavior of the younger generations, the values of millennials seem to demand a rethinking of  the foundational L&amp;D precepts of our economy.</p> <p>The challenges were nearly universal for these roundtable participants:</p> <p><strong>1.</strong> There is a significant gap between the oft-inflated self-assessment of most millennials and the actual contribution they make to the business.</p> <p>This leads to title and responsibility conflicts, as well as poaching risk.</p> <p><strong>2.</strong> The most important skill that high performing employees need is the ability to learn quickly and change easily.</p> <p>This can be very difficult to address through learning, and is instead tied to factors like company culture and individual personality and experience level.</p> <p><strong>3.</strong> Budget limitations demand that L&amp;D teams prioritize program reach.</p> <p>It's difficult to fully support both the retention of high performers as well as the identification, assessment and development of rising stars.</p> <p><strong>4. </strong>Modern business operations and revenue models require cross-functional collaboration and thus demand that people frequently work outside their job descriptions and strict departmental remit.  </p> <p>Goals and corporate structure must adapt to accommodate this, along with skills and sensitivity training.</p> <p><strong>5. </strong>L&amp;D is under-appreciated for its effect on culture and thus, revenue and strategy.</p> <p>Opportunities and objectives for the L&amp;D team today do not always reflect the need or represent a desire for strategic change in the broader organization.</p> <h3>Strategies for success</h3> <p>Compounding these challenges is the need to "invest forward" in skills that will be needed in the future. </p> <p>Thus the complexity of creating an agile, always-on, continually learning organization can be exponential in scope.</p> <p>There are some strategies that L&amp;D professionals employ with success:</p> <h4>Highlight areas for improvement</h4> <p>While many millennials exaggerate it, there are very real working life stages that pose high risk for attrition.  </p> <p>For example, the space between a senior entry level role and a junior mid-management role.  Millennials don't generally accept things as they are, and this creates pressure on the organizational structure.</p> <p>Use flexible tools - like a nine box assessment - to clearly show employees where they are in the value chain, why they are appreciated, and what skills they need to sharpen. </p> <h4>New rewards</h4> <p>Critical to the first is a clear set of meaningful benefits and career path opportunities that will retain - and train - high performers. </p> <p>Some L&amp;D pros found that cross-functional projects, job sharing and even job swapping between colleagues in different countries can be very effective.  </p> <p>Travel seems to be a powerful millennial motivator. All these opportunities need to be clearly defined and strictly managed, and should be accessible only to select employees.</p> <h4>Gamification</h4> <p>Gamification in e-learning is the most engaging format. Self-guided programs work best as part of a mix of online and in-person training. </p> <h4>Mentors</h4> <p>Mentoring that is completely flexible and informal can work well. Structure can often stiffen the interchange and restrict real outcomes.</p> <p>Rather than a formal program, identify potential mentors and train (and reward) them to provide informal support to high value employees.</p> <p>Involve senior executives to give them first-hand insights into shifting values of the workforce.</p> <h4>Retention vs. recruitment</h4> <p>To put the value of L&amp;D in perspective, calculate the cost of losing people and then allocate that budget for training and retention.</p> <h3>So...</h3> <p>What are you doing to adapt your L&amp;D and professional development programs to the changing motivations of the millennial-led workforce? </p> <p>Leave your comments below.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/training/digital-skills-index-lite/"><em>Digital Skills Benchmark</em></a></li> <li><a href="https://econsultancy.com/blog/67976-this-is-how-you-explain-to-hr-what-digital-means/"><em>This is how you explain to HR what 'digital' means</em></a></li> <li><a href="https://econsultancy.com/blog/67665-hr-departments-are-feeling-the-pain-of-digital-disruption/"><em>HR departments are feeling the pain of digital disruption</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68350 2016-10-04T10:12:00+01:00 2016-10-04T10:12:00+01:00 Digital transformation in a B2B giant: JP Morgan & GE Ben Davis <h3>Part one: GE</h3> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/9800/ge.png" alt="ge logo" width="150"></p> <p style="font-weight: normal;">General Electric has garnered a fair amount of press coverage for its recent TV ad campaign, promoting the company as a place of work for software developers.</p> <p style="font-weight: normal;">The ads are self deprecating, with GE subtly letting the viewers know that its business is changing from industrial engineering to digital industrial.</p> <p style="font-weight: normal;"><iframe src="https://www.youtube.com/embed/OvfU1NpCJQQ?wmode=transparent" width="560" height="315"></iframe></p> <h3>The landscape for change</h3> <p style="font-weight: normal;">The landscape for this shift is one where software companies had begun to encroach on GE's market.</p> <p style="font-weight: normal;">By offering services to improve productivity, these companies threatened to make GE seem like a mere provider of machines which would then be optimised and run by other technologies.</p> <p style="font-weight: normal;">In 2013, <a href="http://allthingsd.com/20130529/ge-ceo-jeff-immelts-big-data-bet/">Jeff Immelt, CEO, said</a>: “We know that there will be partnerships between the industrial world and the internet world. And we cannot afford to concede how the data gathered in our industry is used by other companies. We have to be part of that conversation.”</p> <p style="font-weight: normal;">From this point, GE's transformation began in earnest (though had started at the beginning of the decade), creating data-based services and software.</p> <p style="font-weight: normal;">The idea is to sell both industrial engineering and the services that wrap around it.</p> <p style="font-weight: normal;">Indeed, if you want to look at some of the detail of GE's digital transformation, you can get it from the horse's mouth as it has published <a href="https://www.ge.com/sites/default/files/ge_webcast_presentation_03012016_0.pdf">a slideshow of the key points</a>.</p> <p style="font-weight: normal;">The screengrab below simplifies the journey - new business models (services wrapped around products), a cloud-based platform to make everything possible, and a full department called GE Digital.</p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/9696/Screen_Shot_2016-09-29_at_11.25.37.png" alt="ge digital" width="615" height="291"></p> <h3>GE Digital</h3> <p>GE's own in-house optimisation is ultimately what became GE Digital and the new services it delivers are simultaneously changing GE and the connected industrial world.</p> <p>The company's website does a great job of explaining <a href="https://www.ge.com/digital/sites/default/files/Become-a-digital-industrial-company-GE-Digital-overview.pdf">what GE Digital does</a>. Here's a summary...</p> <p><strong>Predix</strong></p> <p>A cloud platform-as-a-service that enables big data management and advanced analytics.</p> <p><a href="http://www.gereports.com/post/99494485070/everything-you-always-wanted-to-know-about-predix/%20">Dave Barlett, CTO, GE Aviation says</a>: "We want Predix to become the Android or iOS of the machine world. We want it to become the language of the Industrial Internet."</p> <p style="font-weight: normal;"><strong>Software that sits on Predix</strong></p> <p style="font-weight: normal;">Namely, Asset Performance Management (APM) and Brilliant Manufacturing (for optimisation).</p> <p style="font-weight: normal;"><a href="http://www.genewsroom.com/press-releases/eon-achieves-more-output-469-wind-turbines-through-ge%E2%80%99s-wind-powerup-services-278733">PowerUp</a> is one such optimisation service, provided to wind turbines for E.ON.</p> <p style="font-weight: normal;">The software adjusts 'speed, torque, pitch, aerodynamics and turbine controls after analyzing site conditions'.</p> <p style="font-weight: normal;">This improves power output by 4%, a considerable increase.</p> <p><strong>Cyber security</strong></p> <p>Wurldtech is GE's cyber security product that protects industrial control systems.</p> <p style="font-weight: normal;"><strong>Automation</strong></p> <p style="font-weight: normal;">Real-time supervisory control applications.<br></p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/9802/Screen_Shot_2016-10-03_at_10.11.52.png" alt="automation" width="500" height="346"></p> <h3>And internally?</h3> <p style="font-weight: normal;">Okay, GE Digital is great and evidently is directed inwards as much as outwards, but you might be thinking, 'what else has GE done to aid digital transformation, process-wise or culture-wise?'</p> <p style="font-weight: normal;">Well, GE's literature details a couple of initiatives that are familiar threads of digital transformation across big companies in several markets.</p> <p style="font-weight: normal;"><strong>A culture of simplification</strong></p> <p style="font-weight: normal;">FastWorks is a training programme based on the idea of the lean startup - building prototypes quickly, releasing them and then iterating.</p> <p style="font-weight: normal;">GE has trained tens of thousands of employees via FastWorks. <a href="http://www.mckinsey.com/business-functions/organization/our-insights/ges-jeff-immelt-on-digitizing-in-the-industrial-space">A McKinsey article</a> quotes CEO Jeff Immelt on the scheme: </p> <p style="font-weight: normal;">"So what we’ve tried to do inside the company is really just drive what we call a 'culture of simplification': fewer layers, fewer processes, fewer decision points.</p> <p style="font-weight: normal;">"We’ve adapted the lean tools in what I would call a Silicon Valley approach, what we call 'Fast Works'. We’ve embraced some of the Silicon Valley tools in terms of putting everything on the clock, bringing commercial intensity into the company." </p> <p style="font-weight: normal;"><strong>GE Ventures</strong></p> <p style="font-weight: normal;"><a href="https://www.geventures.com/">GE Ventures</a> partners with startups offering capital and resources to build new businesses within a variety of sectors.</p> <h3>Part two: JP Morgan</h3> <p><img src="https://assets.econsultancy.com/images/0007/9797/jpm.png" alt="jp morgan logo" width="150"></p> <p>Wealth and asset management is facing disruption on a number of levels, <a href="https://www.linkedin.com/pulse/jp-morgan-digital-transformation-asset-management-hoto-msc-">as outlined by Munyarati Hoto</a> in his analysis of an interview with Tom Libretto, JP Morgan’s Global Head of Digital Experience:</p> <ul> <li>'disruption from new incumbents in the form of <em>robo-advisors</em> such as Wealthfront and Betterment, fund aggregators such as Mint and Etoro, and alternative investment models pioneered by CrowdCube and LendingClub,'</li> <li>from content 'displacing advisors', with customers in Libretto's words “informing themselves more on a self-service basis than ever before” and wanting to receive information digitally,</li> <li>and from 'a demand for better customer-centricity' from a proactive and predictive management experience.</li> </ul> <p>In <a href="https://www.jpmorganchase.com/corporate/annual-report/2015/ar-ceo-letter-matt-zames.htm">JP Morgan's 2015 annual report</a>, COO Matt Zames gives some great detail on digital transformation and innovation efforts across the business.</p> <p>Granted, some of these points apply to both the firm's B2C and B2B activities, but I've picked out detail relevant to our B2B narrative, and looked at further press releases and interviews containing some key points.</p> <h3>Investment in innovation</h3> <p>In 2015, the company invested 30% of its $9bn technology budget in what it calls "change the bank" investments (as opposed to "run the bank" investments). </p> <h3>Culture changes</h3> <p>The 2015 annual report states JP Morgan is 'bringing the look, feel and experience of consumer technology into the enterprise environment to transform the way our 235,000 employees work.'</p> <p>This includes allowing more than 100,000 employees to securely access business applications from their personal mobile devices.</p> <p>Investment in real-time collaboration tools is another initiative designed to significantly increase productivity, with the report mentioning video conferencing in particular. 2015 saw JP Morgan use '125,000 video-enabled endpoints'.</p> <p>Across the B2B world, software such as <a href="https://econsultancy.com/blog/67489-slack-yammer-facebook-who-ll-win-the-collaboration-battle/">Slack and Facebook for Work</a> is making real-time collaboration easier and reducing a sometimes rather formal dependancy on email.</p> <h3>Dashboards and data access</h3> <p>A partnership with InvestCloud (<a href="https://www.jpmorganchase.com/corporate/news/pr/jpmchase-partners-with-InvestCloud.htm">late Septermber 2016</a>) will prioritise the development of 'easy-to-use dashboards, additional mobile functionalities, and seamless account opening' to be available in early 2017.</p> <p>This is exactly the kind of functionality investors need to be able to self-serve more efficiently.</p> <p>Further new features will aim to 'enrich client interactions with advisors, and further personalize the integration of JP Morgan’s market insights.'</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/9803/jpmorgan_apps-blog-flyer.jpg" alt="jp morgan mobile apps" width="470" height="255"></p> <h3>Content scoring</h3> <p>That Tom Libretto interview mentioned earlier was conducted with Idio, a company that is helping JP Morgan to use data in order to provide better content.</p> <p>Content marketing is moving from PDFs to data-driven marketing. Portfolio performance, content consumption and decisioning data (next-best-action information) can all be used to inform content.</p> <p>This intelligent editorial is scored for quality and relevance, making content production less wasteful and more targeted.</p> <h3>Working with startups</h3> <p>Startup accelerators play a big part in innovation at many large corporates, and JP Morgan is no different.</p> <p>The firm has hosted the CEOs of tech startups in Silicon Valley and New York, seeking to make connections and offer ideas for new products.</p> <p>Pilots of many startup products are ongoing, with 2015 seeing 100 technologies tested and 50% of those going into production.</p> <h3>Lead generation at scale</h3> <p>Though the software itself isn't named, the firm's annual report details Commercial Banking's use of 'a new data-driven tool to more effectively engage prospective clients.'</p> <h3>Private and public cloud</h3> <p>Over the last few years, JP Morgan has developed its own private cloud environment, where '90% of new infrastructure demand is hosted.'</p> <p>However, a public cloud pilot was run in 2015, allowing what the annual report terms 'a virtually limitless supply of infrastructure made available when we need it, reducing long-term capital investments.' </p> <p>This hybrid model should allow fast access to internal and external resources.</p> <p><em>More on digital transformation:</em></p> <ul> <li><em><a href="https://econsultancy.com/training/digital-transformation/">Econsultancy's services</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/68185-four-different-approaches-to-digital-transformation-which-suits-your-needs">Four different approaches to digital transformation: which suits your needs?</a> </em></li> <li><em><a href="https://econsultancy.com/blog/66536-digital-transformation-in-financial-services-challenges-and-opportunities/">Digital transformation in financial services: challenges and opportunities</a></em></li> </ul> <p><em>More on GE</em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68268-10-examples-of-great-ge-marketing-creative/">10 examples of great GE marketing creative</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/68186 2016-09-12T11:56:00+01:00 2016-09-12T11:56:00+01:00 A model for Digital Transformation: Pioneers, settlers & town planners Andy Budd <p dir="ltr">But when digital disruption comes knocking, this rigid specialisation can also be their downfall. </p> <p dir="ltr">My friend Matt Locke suggests companies have a dominant tempo. Fashion brands work around seasons, publishers on editions, and tech companies in sprints.</p> <p dir="ltr">If you come from a different discipline, like digital design, there's a good chance you will clash with the dominant tempo, and get rejected.</p> <p dir="ltr">As a fan of the concept of “<a href="https://en.wikipedia.org/wiki/Shearing_layers">shearing layers</a>” popularised by Stewart Brand, the idea of tempo clashes rings true to me. </p> <p dir="ltr">I recently came across the concept of <a href="http://blog.gardeviance.org/2015/04/the-only-structure-youll-ever-need.html">Pioneers, Settlers and Town Planners</a> (PST) which is derived from Robert X Cringely's "Accidental Empires". This builds on the shearing layer model.</p> <p dir="ltr">PST holds the idea that there are essentially three types of behaviours and cultures in the business landscape.</p> <h3 dir="ltr">Pioneers</h3> <p dir="ltr">Pioneers are your typical early stage startup types; designers and technologists who like charting new territory, taking risks, and exploring novel approaches.</p> <p dir="ltr">They are comfortable with a high degree of uncertainty and their experiments often fail.</p> <p dir="ltr">Rather than feeling dejected, pioneers see it as a huge learning opportunity. They are early adopters and bedroom hackers, always playing at the edge of the <a href="http://www.practicallyefficient.com/2010/09/28/the-adjacent-possible.html">adjacent possible</a>. </p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8965/pioneers.jpg" alt="" width="848" height="565"></p> <p dir="ltr">Pioneers are great at innovating new products, getting them to beta, and figuring out product-market fit.</p> <p dir="ltr">Their mantra of “move fast and break things” doesn’t always work at scale.</p> <p dir="ltr">It’s common for pioneers to hop between teams and startups, always looking to be at the bleeding edge where their skills are most valued.</p> <h3 dir="ltr">Settlers</h3> <p dir="ltr">Once the territories have been charted, the settlers come into their own.</p> <p dir="ltr">Settlers see opportunity opening up in front of them, and know how to take advantage of it.</p> <p dir="ltr">In the new world they were the early homesteaders, cattle barons and gold miners, turning the natural resources discovered by the pioneers into cold, hard cash.</p> <p dir="ltr">Later settlers opened saloons and stores, supporting the early pioneers. After all, it’s often better to sell shovels in the midst of a gold-rush. </p> <p dir="ltr">In today's world, the settlers are the entrepreneurs, startup founders, growth hackers and social media marketing execs.</p> <p dir="ltr">They excel at spotting new opportunities, nurturing them, and getting them to scale.</p> <p dir="ltr">Most new companies are started by pioneers, but it’s the settlers who make the ventures successful. </p> <h3 dir="ltr">Town planners</h3> <p dir="ltr">Maintaining scale is difficult. This is where the town planners step in.</p> <p dir="ltr">These city elders are the department leaders and operations teams; the design researchers, dev-ops specialists and QA teams.  </p> <p dir="ltr">They bring a level of rigour and practice to what was once the Wild West, providing structure, dealing with governance, and supporting the entire ecosystem.</p> <p dir="ltr">Town planners can turn a fast growing company into an efficient and well-oiled machine.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8966/sim_city.jpg" alt="" width="599" height="387"></p> <p dir="ltr">Most of the traditional companies I work with have been around for a long time.</p> <p dir="ltr">They’ve been through their pioneering stage many years back, and are now firmly focussed on town planning.</p> <p dir="ltr">They’re optimised to do one or two things very well, be that sourcing new fashions, publishing new authors, or delivering kick-arse code, and they excel at doing this.</p> <h3 dir="ltr">The pace of change</h3> <p dir="ltr">The business landscape is changing much faster than companies realise.</p> <p dir="ltr">Technology isn’t just something your CTO can buy in. It comes with a set of cultures, processes and practices that are fundamentally changing the way businesses work. </p> <p dir="ltr">Technology is also changing consumer expectations in a massive way, and the town planners are struggling to keep up.</p> <p dir="ltr">Every new change requires a feasibility study, a policy decision and new governance criteria.</p> <p dir="ltr">All this effort is wasted if there are no pioneers and settlers around to implement these edicts.</p> <p dir="ltr">Older organisations have the tendency to accrete policy rather than take advantage of opportunity.</p> <p dir="ltr">The tech companies realised this, which is why they’ve always strived to maintain a healthy balance of pioneers, settlers and town planners.  </p> <p dir="ltr">When the environment starts to change, the pioneers are already there, looking for new opportunities.</p> <p dir="ltr">When something interesting comes up, the settlers can quickly turn it into a new revenue stream, keeping the system flexible.</p> <p dir="ltr">The small number of town planners these organisations have are there to support the pioneers and settlers, giving them just enough structure to be efficient, but no more.</p> <p dir="ltr">For traditional businesses, this means cutting down the number of town planners required, building an amazing team of settlers, and maintaining enough pioneers to manage the change and feed the business with new opportunities.</p> <p dir="ltr">Essentially it means moving from a command-and-control organisational structure to a networked organisational structure.</p> <p dir="ltr">Agencies trying to help traditional companies manage digital transformation need to identify the pioneers, make it easier for them to do their work, and build out that capability if required.</p> <p dir="ltr">They also need to support the settlers, helping them be more effective through coaching, training and the creation of simple tools, processes and design patterns.</p> <p dir="ltr">Lastly they need to work with the town planners to ensure that they have the right governance, zoning and infrastructure in place. </p> <p dir="ltr">Digital transformation projects are doomed to fail if they only focus on one of these constituents; like trying to create new pioneers through an innovation hub, or imposing a design language on teams with no thought to how if fits into the existing workflow.</p> <p dir="ltr">Only by working across all three shearing layers, and with all these constituents, can you truly embrace <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> tag:econsultancy.com,2008:BlogPost/68221 2016-09-07T15:41:25+01:00 2016-09-07T15:41:25+01:00 Embracing digital transformation in the Pharma and Healthcare sectors Lynette Saunders <p>According to <a href="https://www.econsultancy.com/blog/67881-seven-big-challenges-facing-healthcare-marketers/">Deloitte Consulting</a>, healthcare and pharma marketers spent just $1.4bn on digital ads, a figure that lags marketers in other industries.</p> <p>One of the consequences of this digital underinvestment is that this has created opportunities for third parties to become the go-to resources for consumers and physicians looking for healthcare information online.</p> <p>Our new <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 report</a> looks at the opportunities and challenges faced by organisations looking to respond to competition, and the changing needs of their customers and the approaches they are taking.   </p> <p>The research is based on interviews with senior digital professionals across a range of pharmaceutical, biotech and consumer healthcare companies which included Alere Inc, Fermenta Biotech Limited, GSK Consumer Healthcare, MSD AP, Lenovo Health, Ogilvy Commonhealth Worldwide, Roche Products Limited and Takeda Pharmaceuticals. </p> <p>It was also supplemented with data from our own research looking at digital trends for 2016 and beyond, along with third party research.   </p> <p>For more insight, Econsultancy subscribers can download the full report, but here are several key trends and insights emerging from the study. </p> <h3>Responding to changing customer needs</h3> <p>Consumers are increasingly expecting the same level of experiences from brands, whether they be digital trend setters like Amazon and Apple or healthcare providers.</p> <p>Companies are looking at how digital can improve the relationship their sales reps have with their customers and how they can impact the experience for the end consumer or patient. </p> <p>This need to focus on the customer experience by putting the customer at the centre was highlighted by some of the companies interviewed. </p> <p>This is backed up by Econsultancy’s survey which shows that just over a fifth of company respondents from the pharma and healthcare sectors said that customer experience represents the single most exciting opportunity for their organisation to deliver on their priorities for 2016. </p> <p><strong><em>Which one area is the single most exciting opportunity for your organisation in 2016?</em></strong></p> <p><img src="https://assets.econsultancy.com/images/0007/8394/DT_in_Pharma_exiting_op_2016.JPG" alt="" width="981" height="640"></p> <p>However, some companies we interviewed said that defining what customer experience means is a challenge. </p> <p>Companies emphasised the importance of developing and strengthening relationships with customers and looking at ways to provide added value services and the role that digital could play in supporting this.</p> <p>For many companies they were focusing on customer journey mapping to understand the touchpoints and the experience customers have with their products and how they engage with their brand to identify any pain points where digital can improve the experience. </p> <p>Companies talked about the challenge they were still facing around the ROI of digital and the need for new customer-focused indicators.</p> <p>Measuring engagement and satisfaction is becoming increasingly important to understand the quality of interactions.</p> <h3>Content optimisation seen as top digital priority</h3> <p>Companies talked about the need to deliver more timely and relevant content.</p> <p>This focus on optimising content was highlighted as a top digital priority for 2016 by close to a third of pharma and healthcare companies, with targeting and personalisation ranked second by just over a quarter of respondents.   </p> <p><em><strong>Which three digital-related areas are the top priorities for your organisation in 2016?</strong></em><img src="https://assets.econsultancy.com/images/0007/8395/DT_in_Pharma_Digital_Ops_chart.JPG" alt="" width="987" height="649"></p> <p>With the focus on digital services becoming more automated and personalised a number of pharma companies talked about moving into the area of marketing automation.</p> <p>They recognised the need to serve more relevant content based on a customer’s profile that is more relative to their needs and provided in a much more efficient and timely way. </p> <h3>Digital needs to be part of the DNA of the organisation</h3> <p>For many companies it is about ensuring digital is a part of the DNA of the organisation, where digital and traditional are fully integrated.</p> <p>For this to be effective and for digital to thrive and not be seen as a one-off project, the right culture and skills need to be in place.</p> <p>Companies were embarking on a number of ways to drive this cultural shift.</p> <p>Digital technology is changing the traditional and highly-regulated world of pharma and healthcare.</p> <p>We are witnessing a shifting focus towards health and wellness and digital is presenting new opportunities for companies to get closer to their customers and enhance the customer experience. </p> <p>Pharma and healthcare organisations are therefore not immune to <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> and can no longer treat digital as a separate bolt-on to the traditional way of doing things. </p> <p><em>For more insight download our new <a href="https://www.econsultancy.com/reports/embracing-digital-transformation-in-the-pharma-and-healthcare-sectors/">Embracing Digital Transformation in Pharma and Healthcare sectors report</a>.</em></p>