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
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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