Business transformation through internet technology

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Business transformation throughinternet
technology

• Jonathan Kettleborough
• Corollis
• www.corollis.com

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Agenda

• introduction
• key business drivers
• starting the transformation
• quality and service
• internet marketing
• remote working
• conclusions
• questions

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Todays process
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• Technology presumes theres just one way to do
  things
• and there never is
• Robert M Pirsig
• Novelist and philosopher

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Key drivers

• Some of the key drivers for major companies are
• cycle time
• timeshifting
• logistical costs
• reskilling
• speed of delivery
• convenience

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Clients demand . . .
more services for less money in less
time with less input
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Starting the transformation

• Start the transformation without technology
• make it easy for customers to do business with
  you
• focus on the end customer
• re-design customer processes
• wire for profit
• target the right customers
• own the customers total experience
• foster customer loyalty
• let customers help themselves
• help customers do their job
• personalised service
• foster community

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Five dimensions of quality

• Research show that there are five dimensions of
  quality
• tangibles
• reliability
• responsiveness
• assurance
• empathy

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Scores by service
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Internet marketing

• Some of the key marketing approaches are
• email
• website
• search engine optimisation
• pay per click advertising
• but why bother with all this?

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Email value versus spam
VALUE
SPAM

• timely information
• value add content
• extends relationship with consumer
• delivered straight into their in-box
• ability to personalise
• great return on investment
• results in days
• easy to test and measure
• ability to automate processes

• 62 of consumers find spam Very Frustrating
• majority receive 50-100 spam emails per week
• 94 emails that trick them into opening them
• 90 offensive subject matter
• 84 from senders unknown to me

DoubleClick/AOL
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Encouraging sign up
BEHAVIOUR
RECOMMENDATIONS

• Factors that motivate sign up
• 41 competition/prize/incentive
• 40 already a customer
• 38 sign up to access content
• 37 found site randomly
• 24 recommendation

• respondents who are motivated by competitions are
  less likely to be loyal or to purchase
• concentrate on converting existing customers
• communicate value of signing up
• ensure great content on site and make the most of
  search engines
• provide sharing mechanics

Equation research
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Design and layout
BEHAVIOUR
RECOMMENDATIONS

• design your message so that you cannot be
  mistaken for spam!
• clear branding - at the top of the message
• use layout and colour to define content areas of
  your message
• reflect the style of your website but do not
  replicate it
• make sure that areas you want the user to click
  really stand out
• prioritise content to maximise use of Outlook
  preview pane

• consumers quickly assess to see if emails are
  trustworthy
• HTML gets the best responses - averaging at 12.9
  as opposed to 5.4 for text
• the visual design of your message is expected to
  reflect your brand and remind them of what they
  signed up
• consumers skim read from top to bottom to see
  what stands out

DMA
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What consumers want

• Most popular messages
• 1. transaction confirmations
• 2. account status updates
• 3. personalised email from
• traditional offline companies
• 4. scheduled corporate newsletters
• 5. customisable information updates
• 6. email discussion lists
• 7. email entertainment subscriptions
• 8. time-based reminders
• 9. independent media newspapers
• 10. email education series
• 11. unscheduled promotions
• 12. email advertising clearing houses

• service emails are the most popular
• personalised and relevant content features in
  four or the top five models
• regularity and predictability is the other model
  in the top five

Equation research
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Websites

• Key issues include
• design
• appropriateness
• content
• usability
• updates
• functionality

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Search Engine Optimisation

• Key issues for successful SEO
• content
• design
• accessibility
• keywords
• keyword density
• lack of spam or spam-like approaches
• inbound links
• outbound links
• internal links
• . . . and the list goes on, and on, and on, and
  on . . .

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Search engines
SEARCH ENGINE
CONTENT
ADVERTS
Google Yahoo Ask Jeeves All the web AOL MSN
Google Overture Google Overture Google Overtu
re

• Google
• Yahoo
• Teoma
• Yahoo
• Google
• MSN

previously Yahoo
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Pay Per Click

• General approaches include
• selecting markets
• selecting keywords
• bidding for keywords
• setting budgets
• designing for success
• monitoring budgets

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Paying Vs. Optimising
PAY PER CLICK
RECOMMENDATIONS

• almost instantaneous
• cost effective
• manageable
• tactical
• position 1, 2 or 3 will give you 50 of available
  clicks

• slow burn
• more cost effective
• high maintenance
• strategic
• position 1, 2 or 3 will give you a 27.4 click
  thru rate

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What is ROI

• The net monetary return obtained from a given
  investment
• Measured as a e.g. 200
• net programme benefits
• Programme costs

ROI
X 100
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Example

• programme benefit - programme cost
• Programme costs
• 300000 100000
• 100000
• So, for each 1 of investment, 2 was generated
• in net benefit

X 100
ROI
ROI
X 100 200
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Some clarification

• programme benefit - programme cost
• Programme costs
• programme benefit
• Programme costs
• 300000 100000
• 100000
• 300000
• 100000

X 100
ROI
Expressed as ratio
Benefit/Cost Ratio
X 100 200
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Case studies

• What internet marketing can achieve
• company A
• was an internet sceptic
• we took charge of the website, marketing etc,
• 3000 increase in online enquiries in a month!
• lowest cost per sale EVER
• now developing an online specification and sales
  tool
• company B
• also an internet sceptic
• we took charge of the website, marketing etc.
• reduced cost per sale by 13 in two months
• lowest cost per sale for any media
• diverting budget from traditional sources to
  online

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Remote and flexible working
ADVANTAGES
DISADVANTAGES

• less productive staff
• negative impact on customer service
• detrimental impact on quality
• delays in achieving deadlines
• difficulties with communication
• reduction in team spirit
• IT support and infrastructure costs

• increased workforce flexibility
• ability to attract and retain the best talent
• reduction in absenteeism
• reduction in stress
• reduction in staff turnover
• reduction in recruitment costs
• reduction in logistical costs

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Hard facts

• Here are some facts worth considering
• 76 of parents dont feel their employer
• provides enough support
• 81 of parents would choose flexible working
• if available
• 40 of managers plan to look for new work
• due to the long hours culture
• one in three people would prefer flexibility
• to another 1,000 a year

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More hard facts

• Here are some more facts worth considering
• 10 preferred a company car and 7 gym
• membership over flexible working
• 77 of people with children under six said a
• work/life balance was important
• at manager and director level, the figure was 74
• more than 80 of workers feel pressure to keep
• working even after the day has finished

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Business reality

• Here are some business metrics
• replacing a skilled employee can cost up
• to two years salary
• companies voted Best to work for in 1993
• showed an 87 better growth than the market
• average over seven years
• reduction in payroll costs of between 5 and 15
• only 13 of companies provide financial support
  for
• establishing a home office

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Benefiting from flexible working

• Flexible working can deliver
• halve sickness rates and boosted productivityby
  a third and a 75 reduction in time off
  formedical appointments London Borough of
  Merton
• savings of 220 million on group real estate BT
• savings of more than 94m. 22 million
  increasein productivity and almost 10 million
  savings instaff retention ATT
• Other research shows
• output per year 21
• productivity 27
• average working week -12
• average earnings 22

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Its not about fewer people

• Fewer people dont always lead to reduced costs
• in the period 1985 1990, 85 ofcompanies
  downsized to reduce cost,but only 42 of them
  actually did
• in the mid 1990s, the stock prices ofmajor
  companies who had downsizedin the recession
  lagged behind theirpeers by between 5 and 45

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Tools for flexible working

• Some of the tools include
• the telephone!!
• email
• chat/video/audio conferencing
• e-learning
• internet collaboration

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Making these tools work for you

• success will only follow on from
• clear internal communication and negotiation
• commitment to staff and clients alike
• training and support
• change in internal processes
• acceptance of change within the organisation
• demonstrable support from the highest level

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Online communities

• Nine key design elements
• purpose
• places
• profiles
• roles
• leadership
• etiquette
• events
• rituals
• subgroups

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Online communities

• Underlying principles
• design for growth and change
• create and maintain feedback loops
• empower your members

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Conclusions

• the internet can liberate your company
• the internet on its own will not be effective
• your whole company must change
• your processes must be focussed
• customers must come first
• if you balance the above with the internet
  thenthe end result could well be success beyond
  yourinitial expectations

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Any questions?

• Before you go
• this session will have hopefully answeredsome of
  your questions and no doubtraised others.
• with this in mind, what else wouldyou like to
  know?

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Contacts

• I can be contacted via the following
• w www.corollis.com
• e jonathan_at_corollis.com
• t 01606 892011
• m 07812 163004