Building Digital Playbooks for Manufacturers and Distributors

A Digital Playbook is a roadmap of initiatives that represent an organizations Digital Strategy. The methodology covered in this white paper provides a unique approach to creating a digital playbook by inspiring a cross-functional team to develop innovative ideas, creating growth and addressing competitive threats. It can be used to develop both your short term tactical needs and your longer term strategic plans.

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BUILDING DIGITAL PLAYBOOKS For Manufacturers & Distributors 2Consumerism continues to shift how manufacturers & distributors go to market. B2C experiences are raising the bar of expectations and disrupting B2B operating models. As this occurs, cross-functional teams must take into account, cultural, process, organizational and technical factors in order to develop innovative approaches to realizing true benefits. But, how do you inspire your cross functional team to come together, breakdown silos and identify innovative strategies? WHAT IS A DIGITAL PLAYBOOK 4It is a roadmap of initiatives that represent an organization’s Digital Strategy. Initiatives in the playbook take into account corporate objectives, customer business drivers, culture, organization, process, capabilities and technology factors. The playbook initiatives are supported by metrics, execution timelines, costs, risks and resources. The methodology covered in this document provides a unique approach to creating the playbook by inspiring a cross-functional team to develop innovative ideas creating growth and addressing competitive threats. It can be used to develop your longer term strategic plans as well as address short term tactical needs. 5Your Digital Playbook will drive: • Alignment of corporate objectives, customer business drivers and cross- functional silos. • Education of stakeholders on what is possible and emerging within the digital ecosystem and within your industry. • Inspire thought leadership focused on Digital innovation required to be competitive and create growth in the future. • Identify gaps preventing the organization from moving from the current state to future state – culture, environment, process, capabilities, and technology. • A 3-5 Year Roadmap of phased Digital initiatives that move you to the future state with timeframes, benefits, estimates and measurable metrics. LEVELSET YOUR DECISION MAKERS 71 What not to do:Do not define business objectives without End Customer and Channel Partner Interactions.Pro Tip:It is critical to understand the business drivers and objectives of your End Customers and Partners, as well as your own. A methodology must be used to identify Customer-based drivers and map them to your internal for a complete strategy with business objectives that measure overall performance.Driving digital transformation has certain requirements. Questions regarding business rationale and ROI are among the first to be dealt with. So let’s go old-school for a moment – a defined goal and a specific number to achieve equals a strategic goal. This is tangible. LEVELSET YOUR DECISION MAKERS “” What would revolutionize our business model? Where do we need to be in 10 years? 8 LEVELSET YOUR DECISION MAKERS B2B companies have traditionally focused on the operation back- office side of their business optimizing Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and other operations-centric processes. There were many failures and restarts, until integrated, End-to-End (E2E) business process-driven strategies were created that drove true benefits across back-office operational silos. Now Customers and Channel Partners are driving the need for more on-line information and B2C experiences. This matched with digital innovation by competitors and a growing, digitally educated workforce is making a Digital Playbook a necessity. The focus now needs to shift to the Customer-Centric Digital Ecosystem improving user experiences, information, its relevance and trusted sales. An integrated, End to End business approach is just as important to the realization of true benefits as it was for the back-office side of the business. Getting started with the development of Digital Playbook is sometimes the hardest part. An executive champion needs to be identified that understands the need to focus on the customer- centric front-office. They will need to assemble an executive steering committee that will help establish a cross functional team of individuals with a passion for change across the Digital Ecosystem represented by four quadrants: web experience management, data and information management, digital marketing and e-commerce (see Diagram A on next page). Team members must be able to represent back-office operations or other individuals need to be included. The team members should understand existing corporate objectives, channels to market and customer business drivers. 9LEVELSET YOUR DECISION MAKERS Once your champion, steering committee and an effective cross- functional team has been established, it is time for the kick-off and introduction to the Digital Ecosystem Quadrants. The group should start-off by discussing their definition for each of the four quadrants and what it means to them. Once defined, existing corporate and individual business group objectives should be discussed in relationship to the diagram and how they may apply. The team should also be challenged with questions such as “how could the company be easier to do business with?”, “what would revolutionize our business model?”, “what would bring our company to its knees?” and “where do we need to be in 10 years?”. These same discussions should take place with Customers and Channel Partners in order to understand their business drivers and feedback around the same questions. All feedback should be plotted in the quadrants for future reference. Keeping the steering committee and executive decision makers involved in periodic readouts will be key to keeping momentum moving around the creation of the playbook. Customer- Centric Front Office Operational- Centric Back Office DATA & INFORMATION MANAGEMENT E-COMMERCE WEB EXPERIENCE MANAGEMENT DIGITAL MARKETING BPM MDM DMS EAI EMAIL PORTALS PLM ERP HCM MES SCM CRM PRM Diagram A 10 2 What not to do:Do not start off with an emphasis on current state shortcoming, there will be plenty of time to review those.Pro Tip:Once you understand the business drivers of your Customers, the emphasis should be placed on thought leadership and educating people on “what is possible”. Momentum is then built discussing the future and where you need to be verses handicapping yourself with current state barriers that prevent you from moving forward.Seen it many times before, business drivers are identified and the strategy development process begins. Everyone jumps directly into defining the current state of affairs polluting thought leadership with bias and existing shortcomings.Shouldn’t it be about feeding the idea engine at this point and the direction the company needs to head? WHAT’S POSSIBLE, & WHAT DOES FUTURE STATE LOOK LIKE? “” What does the next generation of customers really want? They want to be serviced. 12 Before getting started with the next first phase, it is important to instruct the group that we will be discussing the future state of what is possible. Current state barriers and roadblocks will not be discussed and a penalty flag will be thrown when this happens. Now it is time for everyone to put on their thinking caps, but first you need to inspire the team and get their juices flowing. Start with some simple concepts to get people thinking “out of the box”. Using the Digital Ecosystem Quadrants in Diagram B, we want to move the thought process from “providing information” to the end goal of “selling more stuff”. It is should be noted that it is no longer good enough to just provide information about your services on-line and self-service is becoming expected of suppliers. What does the next generation of customers really want? They want to “be serviced” by trusted partners. Now, how do we get there? Using the left side of the quadrant, the team needs to begin thinking about the types of content provided to websites, literature and other channels as well as how it will evolve into reusable data and information. Along the right hand side, Marketing is out to identify leads that will convert into the company becoming a supplier and eventually a trusted partner. Along the bottom side of the quadrant, content needs to be personalized to generate leads as it moves to the right and along the top information needs to be transformed into knowledge. All of this moving toward the upper right hand corner enabling you to become a trusted partner. WHAT’S POSSIBLE, & WHAT DOES FUTURE STATE LOOK LIKE? Trusted Partner PROVIDE INFORMATION SELL MORE STUFF Personalized Knowledge Information SupplierData OpportunityContent DATA & INFORMATION MANAGEMENT E-COMMERCE WEB EXPERIENCE MANAGEMENT DIGITAL MARKETING • What are the Services? • Self-Service • Want to be Serviced Diagram B 13 Adding another level in Diagram C, educate them in terms of “how the Customer views” the journey to becoming a trusted partner. Using these concepts, subject matter experts should be used to pre-populate the diagram with future state processes, cultural, organizational and technical capabilities that are possible or emerging within the marketplace and your industry. This education process will inspire team members to think out of the box about the future and what may be possible. Next you are ready to challenge the team with an exercise. Take the corporate and customer business drivers/objectives as a reference and ask the questions, where do we feel the company needs to be in 5 years? Challenge the team to modify and expand the pre-populated diagram. Think about how the objectives and business drivers may evolve over time and impact the diagram. As you refine the diagram, also discuss metrics that could be used to measure each item added. For those that cannot be measured, parking lot them until they can be determined, but do not lose the thought. This will be an iterative process that will take a number of sessions with team members socializing the materials with others. Once the thought process is completed and all future state thoughts plotted, prioritize them. This can be done with a high, medium, low approach or by years (1, 3, and 5 years). WHAT’S POSSIBLE, & WHAT DOES FUTURE STATE LOOK LIKE? Buy me what I need Educate me why I need it Help me with what I need Show me what I need TRUSTED PARTNER Prescribe what I need Personalize what I need Manage what I need Target what I need Sell me what I need Catalog what I need Remind me what I need What else do I need Tell me what I need Publish what I need Suggest what I need Brand who you are DATA & INFORMATION MANAGEMENT E-COMMERCE WEB EXPERIENCE MANAGEMENT DIGITAL MARKETING • What are the Services? • Self-Service • Want to be Serviced Diagram C 14 3 MAP CURRENT STATE OF PROPERTY What not to do: Do not use the current state definition as an opportunity to highlight mistakes of the past and why things cannot be done now. Pro Tip: View the definition of the current state as a positive opportunity to understand your current maturity level. Defining the current organization, culture, processes and technology should be an exciting exercise allowing you to visualize the potential for improvement benefiting both the company and its Customers. Provide a foundation for measuring investment of time, money and human resources required to achieve a particular outcome. 15 Now that you understand where you need to go, we need to call a timeout and determine where you are on the field. This should not become an airing of sins of the past. Emphasis should be placed on this being a positive exercise to truly understand the current state of the culture, organization, capabilities, processes and technology. This will help the group begin visualizing the opportunities and benefits that can be achieved. This activity is also not only about where you stand on the field, but where your competitors defense stands. We will start by taking a look at the quadrants from a competitor viewpoint and maturity level for each innitiative plotted in the future state exercise. Choose a preferred maturity model that can be mapped to the Digital Quadrants. In Diagram D, the maturity model developed by Forrester Research has been applied. Greenhorn being considered entry level through Role Model representing Industry Leaders/Innovators. Ask the team; what are competitors doing that we are not? What are they doing related to the items mapped out during the future state exercise? Map your competitor’s capabilities to the maturity model either in an overall view or by each quadrant area. MAP CURRENT STATE OF PROPERTY DATA & INFORMATION MANAGEMENT E-COMMERCE WEB EXPERIENCE MANAGEMENT DIGITAL MARKETING • Greenhorn • Apprentice • Practitioner • Role Model Diagram D “” What are competitors doing that you are not? What are you doing in the current state that your competitors are not? 16 Next, you will want to begin mapping out the current state of your environment within the maturity levels. What are you doing in the current state that your competitors are not? Review the future state exercise and determine if there are areas that you may be doing, but in a less efficient and effective manner. Do not forget to think in terms of culture, organization, process, capabilities and technology. MAP CURRENT STATE OF PROPERTY 17 4 DEFINE THE GAPS & ASSESS COSTS/BENEFITS What not to do: Do not bite off more than you can chew. Pro Tip: With a solid gap analysis between the current state and future state will identify true opportunities with the greatest benefits. These will then be outlined in the playbook roadmap of initiatives. Today’s organizations require clear definitions and accountability. Defining exactly what objectives are being sought with metrics and method of measurement are critical for everybody to agree and move. “” Cultural, organizational, process, capability and technology considerations need to be taken into account. 19 The team has made it downfield to where they can begin to formalize aspects of your playbook. All collateral through the last three phases now begin to be rationalized. Examples of areas to be rationalized by the team and socialized with others include: • Customer and corporate business drivers • Current state and future state objectives • Identification of gaps between current and future state • Initiative impact analysis on culture, organization, process/ capabilities and technology • Initiative summary with metrics, measurements and cost/benefits Cultural, organizational, process, capability and technology considerations need to be taken into account in relationship to each gap identified and the potential initiatives that may address them. Current state and Future state diagrams need to be created. When rationalizing these items, the team should be challenged to think of these from additional viewpoints that will bring out some of the less obvious considerations around culture, organization and resources. Metrics, risks, costs and benefits should also be refined during these gaps discussions. Various benchmarks and metrics/measures provided by industry analysts should also be obtained and explored. As the gap analysis is finalized, it should be socialized outside of the team and with the executive steering committee. DEFINE THE GAPS & ASSESS COSTS/BENEFITS 20 5 What not to do:Do not avoid cultural change and business readiness needs.Pro Tip:Your final strategy playbook must be aligned with expected, measurable results. At this point cultural change and the ability for the business to adapt and prepare for the change must be taken into consideration. Organization change may be required to achieve results. This will refine the priority of roadmap capabilities and adjust your playbook ROI.ROI can be useful for evaluating marketing technology investments, but like any tool, ROI must be used appropriately. Managers must understand what information is needed to produce an accurate ROI calculation, and they must also understand what an ROI calculation does and does not reveal. ALIGN TEAMS WITH THE PLAYBOOK & SET ROI EXPECTATIONS 21 We are now on the ten-yard line looking to punch the ball across the goal line. It is time to take our gap analysis and map it into a roadmap of playbook initiatives. First, review all the collateral from the gap analysis phase with the team and make sure it is understood. By this time, they are well educated and have strong opinions as to what efforts should be executed tactically within the next 12 to 24 months and strategically beyond. Using the Digital Quadrants noted in Diagram E, now categorize the initiatives based on the following (either holistically or by Digital Quadrant based on earlier efforts): • Sustain: existing initiatives that will be sustained to enable the longer term roadmap. • Invest: initiatives that we should be investing in over the next 12 to 24 months. • Investigate: strategic initiatives that would be executed 3 years out with further investigation beginning in year 2. • Monitor: strategic initiatives that need to be executed in 4 to 5 years. These should be monitored as we move forward and update the roadmap yearly. ALIGN TEAMS WITH THE PLAYBOOK & SET ROI EXPECTATIONS DATA & INFORMATION MANAGEMENT E-COMMERCE WEB EXPERIENCE MANAGEMENT DIGITAL MARKETING • Sustain • Invest • Investigate • Monitor Diagram E Time M at ur ity 22 Now the team should focus on refining the ROI for the tactical initiatives in the investment category. Metrics, and how they will be measured, need to be finalized. Detailed timelines, cost estimates, impacts and risks locked down. A final roadmap with an executive summary of the overall 3-5 strategy with a view of the tactical investments and benefits. This should be catered for the audience level with details available in appendix form for reference. Now it comes to executing the final pitch to management. Engage the steering committee members in this presentation if they are not the final decision makers. Expect refinement and iterations, but if you have been communicating and socializing this to the executive steering committee and others outside the group on-going, you should have plenty of support and excited stakeholders. In summary, this methodology can be scoped to any size effort whether it be the full Digital ecosystem, one specific quadrant or a specific item/s that fall within a quadrant. However, to drive growth and remain competitive, a playbook of initiatives that make up your Digital Strategy will be critical to scoring ongoing touchdowns. ALIGN TEAMS WITH THE PLAYBOOK & SET ROI EXPECTATIONS “ ” A playbook of initiatives that make up your Digital Strategy will be critical to scoring ongoing touchdowns. 23 THANK YOU. Contact Us 414.224.0368 [email protected] 309 N. Water St. Suite 615, Milwaukee, WI 53202