helsinki: speed of change
TRANSCRIPT
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Nordic City Tour Helsinki Speed of change – Successful business in the digital age
#nordicspeed
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Cloud Computing Pioneer and Evangelist
Our Mission
Mainframe Client/Server
Today 1960s 1980s
Cloud
New Technology Model (Cloud)
New Business Model (Customers)
New Philanthropic Model (1:1:1)
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Connect with Customers in a whole new way
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Connect with your customers in a whole new way
The Customer Success Platform
Sales Service
Marketing
Community Apps
Analytics
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Shared services across applications
The Customer Success Platform
2,700+ Partner Apps
Open Ecosystem
Workflow Data &
Objects Identity
Fast App Dev & Customization
Analytics Collaboration Mobile UI
Scalable Metadata Platform
Complete CRM
Trusted Multitenant Cloud
Analytics Community Marketing Service Sales Apps
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World’s #1 CRM company
World’s most admired software company
World’s most innovative company
Celebrating 15 Years of Customer Success
4TH YEAR IN A ROW! 2011 • 2012 • 2013 • 2014
#1 most admired
in software
#8 best company
to work for
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Lari Hämäläinen, McKinsey
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McKinsey Digital
Winning in Digital
Salesforce.com Nordic conference
Presentation | April 23, 2015
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1. What is causing the digital disruption?
2. How is the disruption playing out?
3. What challenges will businesses face?
4. How to address the strategic challenges?
5. How to address the leadership challenges?
Discussion today
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SET OF HARD TO REVERSE CHOICES YOU
MAKE IN THE FACE OF UNCERTAINTY TO
GENERATE PROFIT BY CAPTURING
CUSTOMERS AND BEATING COMPETITORS
IT’S NOT ABOUT DIGITAL STRATEGY, IT’S
ABOUT STRATEGY IN THE DIGITAL AGE
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SUSTAINING PROFIT
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SUSTAINING PROFIT
A. POSITIONAL ADVANTAGE
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SUSTAINING PROFIT
A. POSITIONAL ADVANTAGE
B. PROPRIETARY ADVANTAGE
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“THE MORE WE COMPETE, THE LESS
WE GAIN.” – Peter Thiel
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CONTROL POINT DISRUPTION
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WHAT‘S CAUSING THE DIGITAL DISRUPTION?THE SECOND MACHINE AGE
1.
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1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
UBIQUITOUS CONNECTIVITY
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TRANSPARENT ACCESS TO DATA ON A
MASSIVE SCALE
1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
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DECREASING COST OF COMPUTER
PROCESSING POWER
1. WHAT‘S CAUSING THE DIGITAL DISRUPTION?
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HOW THE DISRUPTION IS PLAYING OUT?
2.
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2. HOW IS DISRUPTION PLAYING OUT?
CUSTOMER POWER IS PARAMOUNT
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…this year more unique information will be generated than during the
PAST 5,000 YEARS
…each month,
4 million man years
is spent online
…by 2016,
200,000 HRSof video will be
STREAMED EVERY SEC
…approximately
17 BILLION
devices are connected to the internet
…a smartphone is
1,000,000x cheaper
100,000x smaller
and 10,000x more
powerful than the MIT computer
in 1965
…average 21-year-olds exchanged
250,000
10,000 HRSon a mobile phone
messages and spent
…the world's data centers consume
~1.5% OF ALL POWER
or little more than 2x the power
consumption of Sweden
2,378Number of websites worldwide in 1994
1,110,000,000
@
A NEW GENERATION EXPECTING DIGITAL BY DEFAULT…
2. HOW IS DISRUPTION PLAYING OUT?
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"Any screen will do" In store experiences
polarising
Rise of the hyper-informed
customer
Always on
Your world in your pocket You can own the
customer experience …
not the customer
Merging digital and physical
2. HOW IS DISRUPTION PLAYING OUT?
…AND BEHAVIOUR CHANGING RAPIDLY
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2. HOW IS DISRUPTION PLAYING OUT?
CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE
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MONEY MOVES UNEVENLY
2. HOW IS DISRUPTION PLAYING OUT?
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NEW CAPABILITIES ARE NEEDED
2. HOW IS DISRUPTION PLAYING OUT?
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2. HOW IS DISRUPTION PLAYING OUT?
CHANGE HAPPENS FASTER
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CUSTOMER POWER IS PARAMOUNT
CONVENTIONAL TRADEOFFS MAY BECOME OBSOLETE
MONEY MOVES UNEVENLY
NEW CAPABILITIES ARE NEEDED
CHANGE HAPPENS FASTER
ECOSYSTEMS ARE REDRAWN
2. HOW IS DISRUPTION PLAYING OUT?
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2. HOW IS DISRUPTION PLAYING OUT?
MONEY MOVES UNEVENLY "Your margin is
my opportunity"
Jeff Bezos
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2. HOW IS DISRUPTION PLAYING OUT?
A TRACTOR
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WHAT CHALLENGES WILL BUSINESSES FACE?
3.
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Rethinking your
overarching strategy
in light of industry
fundamentals, trade-
offs, and sources of
advantage altered by
digital disruption
Designing and
implementing
operational
digital initiatives,
e.g., big data
enabled supply
chain, mobile/
online stores, etc.
60%+ of CXOs don’t have
a digital strategy or it
does not link to the
broader corporate strategy
60%+ of CXOs are
directly engaged in digital
business initiatives
Digital
Transformation
Strategy in
digital age
How to win
3. WHAT CHALLENGES WILL BUSINESSES FACE?
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IT and the business don’t talk
Leadership are not digital natives
Resource re-allocation is tough
Legacy ways can seem like immovable barriers
You don’t have the talent you need
3. WHAT CHALLENGES WILL BUSINESSES FACE?
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The leadership
challenge
Embody the habit of
successful digital
executives
The strategic
challenge
Uncover the magic, be
focused on where the real
business value are, and be
granular with what you go after
The technology
challenge
Set up your organization
and capabilities to enable
fast changes
3. WHAT CHALLENGES WILL BUSINESSES FACE?
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HOW TO ADDRESS THE STRATEGIC CHALLENGES?
4.
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CONTROL POINT DISRUPTION
4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?
Product/service dev
Marketing & sales
Operations
IT
Finance & MIS
Risk mgmt
HR & org
Connectivity with
customers,
colleagues,
suppliers and other
stakeholders 1
Digital reputation
management
Virtual co-making
Real-time supply chain
Social network risk
analysis
‘Golden source’ MIS
On-demand processing
power
Social network recruiting
Decision-
making based
on ‘big data’ and
advanced
analytics2
Next product to buy
Personalised product
and service offerings
Dynamic workflow
Real-time automated
decision making
Real-time financials
Dynamic hardware
provisioning
Predictive resource
management
Automation of
manual activity,
replacing labour
with technology3
Mobile channel
Virtual product testing
Straight-through
processing
Automated testing
Paperless MIS
Sensor-driven
maintenance scheduling
Self-service training
Behavioral pricing
Digitally augmented
products
Crowd-sourced support
Cloud computing
Crowd-funding
Risk socialization
Virtual workforce
Innovation of
products,
business models
and operating
models4
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CONTROL POINT DISRUPTION
4. HOW TO ADDRESS THE STRATEGIC CHALLENGES?
Product/service dev
Marketing & sales
Operations
IT
Finance & MIS
Risk mgmt
HR & org
Connectivity with
customers,
colleagues,
suppliers and other
stakeholders 1
Digital reputation
management
Virtual co-making
Real-time supply chain
Social network risk
analysis
‘Golden source’ MIS
On-demand processing
power
Social network recruiting
Decision-
making based
on ‘big data’ and
advanced
analytics2
Next product to buy
Personalised product
and service offerings
Dynamic workflow
Real-time automated
decision making
Real-time financials
Dynamic hardware
provisioning
Predictive resource
management
Automation of
manual activity,
replacing labour
with technology3
Mobile channel
Virtual product testing
Straight-through
processing
Automated testing
Paperless MIS
Sensor-driven
maintenance scheduling
Self-service training
Behavioral pricing
Digitally augmented
products
Crowd-sourced support
Cloud computing
Crowd-funding
Risk socialization
Virtual workforce
Innovation of
products,
business models
and operating
models4UNDERSTANDING THE
OPPORTUNITIES AND YOUR
CHOSEN PLAYS AS YOUR
BUSINESS GETS RE-IMAGINED
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4. WHAT DOES THIS MEAN FOR OUR APPROACH TO STRATEGY?
FRAME | DIAGNOSE | FORECAST
SEARCH | CHOOSE | COMMIT | EVOLVE
New questions
at each stage
▪ Are we being attacked or disrupted? Should we disrupt ourselves?
▪ If software is eating the world, how will it eat our business?
▪ How is our value chain transforming?
▪ Which players from outside our industry could now enter?
▪ What will my workforce look like in 5 years’ time as automation and
machine learning play out?
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HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
5.
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A SET UNREASONABLE ASPIRATIONS
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What does this mean? What does this not mean?
▪ Board level digital "owner"
▪ Stretching and coherent
digital vision
▪ Value-oriented targets
(i.e., Digital P&L)
▪ Adding "digital" to existing
responsibilities
▪ Uncoordinated digital initiatives
▪ Digital interaction targets
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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B CHALLENGE EVERYTHING
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What does this mean? What does this not mean?
▪ Challenge the status-quo
▪ Go your own way
▪ Involve regulators in
change
▪ Accept historic norms
▪ Follow others
▪ Put your head in the sand
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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C OBSESS ABOUT CUSTOMERS
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What does this mean? What does this not mean?
▪ Learn from every inter-
action with the customer
▪ Relentless iteration of
customer experience
▪ Infrequent aggregation of
customer insights
▪ Ad-hoc patching of customer
processes
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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D FOLLOW THE MONEY
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What does this mean? What does this not mean?
▪ Zero-base tech budget
aligned with value at stake
▪ Invest in digital across the
value chain
▪ Scale success quickly
▪ Incremental spend in line with
last year’s budget allocation
▪ Focus digital effort only on
customer facing functions
▪ Pilots never rolled out
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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E BE QUICK AND DATA DRIVEN
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What does this mean? What does this not mean?
▪ Continuous proposition
iteration
▪ Live beta
▪ Golden source of truth
▪ 12 month release cycles
▪ Quarterly investment boards
▪ Multiple customer records
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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F ACQUIRE CAPABILITIES
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What does this mean? What does this not mean?
▪ Buy scarce talent en-masse
▪ Move into adjacent markets
▪ Hire for skills, not industry
experience
▪ Add resources one-by-one
▪ Random buying spree
▪ Recycling talent from industry
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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G RING FENCE TALENT
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What does this mean? What does this not mean?
▪ Protect digital talent from
business-as-usual
▪ Digital talent management
▪ Embed digital in existing
businesses
▪ Retrofit existing HR model
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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Set unreasonable aspirationsA
Challenge everythingB
Be obsessed with the customerC
Follow the moneyD
Be quick and data drivenE
Acquire new capabilitiesF
Ring fence and cultivate digital talentG
5. HOW TO ADDRESS THE LEADERSHIP CHALLENGES?
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Digital changes value chains and
enables new business models
DO DIFFERENT THINGSDigital changes the traditional way
of doing business
DO THINGS DIFFERENTLY
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AS FINAL WORDS:
“LOOK UP AND LOOK OUT
DOCTOR HEAL THYSELF”
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Juho Malmberg, Board Professional
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Why is customer experience so important?
How to create competitive edge in a
mature business area?
How to differentiate?
How to grow in services business?
How to reduce churn and develop loyal
customers?
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What is Great Customer Experience?
• CX is a Journey, consists of
all touch points with the
company
• CX requires as a foundation
great products and a strong
brand
• CX development requires us
to view our business both
outside-in and inside-out
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CASE
Framework for customer experience development Include both Outside-In and Inside-Out Views
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Case Emirates: Customer Touch Points
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Developing Customer Experience based on Touch Point
Analysis
Validate the touchpoints
Measure the importance
Measure our performance
Implement the right actions
Actual Performance Importance
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Developing Customer Experience in a systematic way
Use best practices from your own organization and from outside
Pilot and learn
Limited number of global initiatives, for example: – Customer insight through segmentation
– Selling value
– Great customer communication
– Service excellence
Systematic and disciplined execution – Clear project plans including schedule, milestones and deliverables
– Full-time people
– Clear metrics for progress and success
– Project management with strong follow-through
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Strong processes and tools create a foundation for building
a great Customer Experience
– All customer data in one place
– Full visibility to global sales data
– Global processes based on shared best practices – often invented in-house in one of the country units
– Common platform enables continuous improvement and learning
– Common platform enables fast implementation
– Successful rollout across 50 countries and 3000+ users in one year
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Seamless Service Chain with End-to-end Integrated
Processes
Web-site
CRM
Product Configurator
Order Management
Supply Chain Management
Installation Management
Customer Feedback Collection
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Simple Things Matter
– Be friendly
– Be honest
– Keep your promises
– Appreciate
customer’s time
– Ability to turn a bad
experience to a good
one
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Some Best Practices based on
Customer Experience Development at
KONE
• Customer focus high on
the strategy and
management agenda
• Empower employees to
deliver great customer
experience
• Clear and disciplined
development projects
• Right balance of sense of
urgency and persistence
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Rolf Hall & Lars Göransson, Salesforce
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Sales Service
Marketing
Community Apps
Analytics
Analytics for the rest of us
Analytics Cloud
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Powered by the Wave Platform
Analytics Cloud: Analytics for the Rest of Us
Mobile
insight on any device
Everyone
gets answers faster than ever
Platform
for any data, any app
Extend the Platform
Self Service Collaboration Exploration Analytic Apps Search Based Any Data Governance & Trust
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Grow sales faster
Sales Cloud
Sales Service
Marketing
Community Apps
Analytics
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Hard to Grow Sales if Sales Process is Broken
Manual
Processes
Hard to find information and experts
Time wasted on emails and approvals
Limited coaching and feedback
No lead routing or opportunity management
Lack of pipeline visibility
Poor data quality
Slow Sales
Cycles
Missed
Target
No Mobile
Access
Hard to access information on-the-go
No way to access all your critical apps in one place
Hard to manage your day from anywhere
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Sales Cloud: World’s #1 Sales App
Sell
Smarter
Sell
Faster
Sell from
Anywhere
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Transform the customer experience with Service on Salesforce
Service Cloud
Sales Service
Marketing
Community Apps
Analytics
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Unhappy
Customers
Difficult to Service Your Customers Everywhere
No context
Not personalized
Inaccurate answers
Poor Customer
Experiences
Siloed service channels
Multiple knowledge bases
No support for social
Inconsistent Service Across
Channels
92% Companies reported decline in
Customer Satisfaction
Multiple service screens
No single knowledge source
Not connected to back-office
Low Agent
Productivity
54% Agents must use multiple sources to
answer inquiries
86% Customers stop doing business
after one negative interaction
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Service Platform for Customer Success Transform the customer experience with Service on Salesforce
Personalized
Service
Smarter
Support
Innovate
Faster
Connect 1:1 with every
customer, anywhere
Empower agents and
managers with the right
tools and intelligence
Build and scale at the
speed of your customers
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Marketing Cloud
Sales Service
Marketing
Community Apps
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Four Questions
Do you know who your
customers are?
Where are they
in their journey?
Are you engaging
and moving them
along the journey?
Are you measuring
the impact on your
business goals?
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Marketing Cloud The Platform for 1:1 Customer Journeys
Build a single view of the customer
Plan and optimize the customer journey
Deliver personalized content across every channel and device
Measure the impact on your business
Journeys Contacts Content Channels Analytics Apps
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Martha Bennett, Forrester
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Making Your Data Speak Martha Bennett, Principal Analyst
April 2015
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Guess which car service continues to be widely used?
›Cheaper
›More convenient
›Better service
“Uber-isation of all industries…”
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This is the world we live in …
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65% 55%
40% 30%
35%
45%
60%
70%
… and failure to embrace it is not an option
New companies in the
Fortune 1000 Top 20
Source for chart on left: Built to Change: How to Achieve Sustained Organizational Effectiveness, 2006 *estimated
1973-1983 1983-1993 1993-2003 2003-2013*
Less than 15% of
companies in the
original 1955 Fortune
500 list exist today
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Good To Great characteristics: not enough (bankrupt 2009)
(home mortgage scandal)
(improvements in past two years, but transformation from
mail-based business remains work in progress)
(absorbed by P&G)
(received $25B from TARP)
(performed adequately)
(performed adequately) (performed adequately)
(only one in list to outperform)
December 2014: Investing in the portfolio of those 11 great companies covered in 2001 would result in
underperforming the S&P 500.
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Focus & market dominance: not enough
(absorbed by DHL)
(underperforming — missed mobile market)
(net income fell 72% before company was taken
private in 2013)
(underperforming despite repeated turn-
around initiatives)
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Disrupt, adapt, reinvent – or be disrupted
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Digital dysfunction at executive level
Source: Forrester/Russell Reynolds 2014 Digital Business Survey
93%
• Believe that digital technologies will disrupt their business over the next 12 months
74% • Claim the company has a “digital” strategy
33% • Think it’s the right “digital” strategy
15% • Believe they have the right people and skills to execute the strategy
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Photo © Martha Bennett
What are your customers really buying ?
… to selling film
From selling memories ….
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What do these companies sell?
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47 © 2015 Forrester Research, Inc. Reproduction Prohibited
Key trend: selling an outcome Used to sell:
› Aero engines
› Air conditioning units
› Lifts/Elevators
› Cars
› Agricultural machinery
› Medical testing devices
› Health insurance
› Toothbrush
Now sell, or may in future:
› Units of propulsion
› The right temperature
› Moving people/goods up/down
› Ability to get from A to B
› Optimum yields
› Number of tests
› Wellness program
› Healthy mouth and teeth
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Turn Data Into Business Insights
More Deeper For Everyone
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Results need to be pertinent & trustworthy
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Business outcome
Data sources
Deeper insights
More data
For everyone
What business
value do we want?
Who needs what
insights for this?
What analysis
tools do we need?
How can we
manage all the
data needed?
What data
do we have?
How can
we process that
data?
What can
we learn from this
data?
How
do we deliver
those insights?
What business value
can we create?
What data sources
do we need?
There’s no single right way to get there B
ott
om
-up
te
ch
no
log
y-d
rive
n T
op
-dow
n b
usin
ess-d
riven
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Making your data speak: 3 Cs to success Culture
• Data treated as an
asset
• Data-driven
• Data shared
across silos
Capabilities • Advanced data
management,
delivery and
analysis
Competency • Technology skills
• Analytical skills
• New approach to
data governance
• Agile processes
Data at
its most
eloquent
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Focus on getting the basics right 1. Always start with a question that’s
linked to a business objective or
known issue
2. Create an environment that
supports collaboration, agility and
short time to value
3. Having made your data speak, be
prepared to do what’s needed
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Inka Vilpola, Wärtsilä
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Embracing the new age of digital
Inka Vilpola, General Manager, Wärtsilä
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Wärtsilä in brief: EUR 4.8 billion, 17 700 employees, 200 locations
Ship power
Oil&gas and shipping
Total offering of marine products,
integrated solutions
Power plants
Utilities, IPPs and Industrial customers
Flexible, efficient and environmentally
advanced energy solutions
Services
Shipping and power generation
Expertise, proximity and
responsiveness
5
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Customers
Wärtsilä excellence
Installations
Digitalization cornerstones 2015
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How do we change in digitalisation?
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Running our business
Customer digital lifecycle
• We capture opportunities and make things happen
• Optimizing customer operations whenever
Users and stakeholders
• Transparency and efficiency between stakeholders
• Extended enterprise and customer collaboration
• Optimised user experience
Process and technology development
• User studies to identify development opportunities
• Combined data and process
• Seamless integrations between systems
6
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Collaboration
Customers
Sales collaboration
Technical collaboration
Own product
Sales
Opportunities
Account planning and visits Offers
Contract reviews
Delivery
Customer
Products
Statuses
Leads
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Innovation
Open cross-Wärtsilä and cross-
partner collaboration
Agility and visibility are boosting the
innovation
Cross-functional collaboration
Open collaboration speeds the
operations and improves
communication between functions.
Increased availability of expertise.
Change in roles
6
Customer focus
Improved customer centricity, 360
view. Customer service in realtime
Reduced steps to deliver
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Thank you
Inka Vilpola
GM, IM Technology Office
Wärtsilä
Thank You!
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Arman Alizad, Adventurer and Provocateur