Professional Documents
Culture Documents
MARKETING
1
Bias/effects & paradox in Marketing
• The more exposure effect
• Loss aversion
• Compromise effect
• Choice supportive bias
• Framing effect
• Anchoring
• Confirmation
• Bandwagon effect
• Salience
• In-group favouritism
• Zero risk bias
Bias/effect & paradox in Marketing-application in a Digital
World
Application:
-Free trials
-Freemium
-Limited time offer
-Countdown timer
Bias/effect & paradox in Marketing-application in a
Digital World
• Compromise effect
1992 experiment-Itamor Simonson & Amos Tversky
Application:
-Price lining
Application:
Involve customers in creation-possible paint application!
We have gone through…
The Product
Era
The Positioning
Era
The Promotion
Era
THE PLATFORM
And now we have…
ERA
7
Product Era Positioning Era Place Era
8
What do you understand by Digital in an organizational
context?
9
Digital Digital Digital Digital
products commerce marketing operations
10
4 Levels of Digital Mastery
Digital
Fashionistas
Masters
Digital Capability
Beginners Conservatives
Leadership Capability
Source: Leading Digital (Book )-Gearge Westerman,Didier Bonnet & Andrew McAfee
11
Where is an Orgn in this journey?
Digital
Fashionistas Masters
• Many advanced digital • Strong overarching digital vision
features (e.g., social, mobile) • Excellent governance across
in silos silos
• No overarching vision • Many digital initiative generating
• Underdeveloped business value in measurable
coordination ways
Digital Capability
• Digital culture may exist in • Strong digital culture
silos
Beginners Conservatives
• Management sceptical of the • Overarching digital vision, but may
business value of advanced be underdeveloped
digital technologies • Few advanced digital features,
• May be carrying our some though traditional digital
experiments capabilities may be mature
• Immature digital culture • Strong digital governance across
silos
• Active steps to build digital skills
and culture
Leadership Capability
12
The New Elements of Digital Capability
BUSINESS MODEL
Digital enhancements
Information-based service extensions
Multisided platform business
CUSTOMER EMPLOYEE
OPERATIONS
EXPERIENCE EXPERIENCE
Experience design Core process automation Augmentation
Connected & dynamic
Customer intelligence Future-readying
operations
Data-driven decision-
Emotional engagement Flexforcing
making
DIGITAL PLATFORM
Core
Externally facing
Data
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
13
Lets look at…
BUSINESS MODEL
Digital enhancements
Information-based service extensions
Multisided platform business
CUSTOMER EMPLOYEE
OPERATIONS
EXPERIENCE EXPERIENCE
Experience design Core process automation Augmentation
Connected & dynamic
Customer intelligence Future-readying
operations
Data-driven decision-
Emotional engagement Flexforcing
making
DIGITAL PLATFORM
Core
Externally facing
Data
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
14
Business Models scale differently
Network Low scaling cost
orchestrator Many make, many
sell
s
Technology Make one, sell many
creators
Service
providers Hire one, sell one
Asset
Make one, sell one
builders
High scaling cost
15
Lets look at…
BUSINESS MODEL
Digital enhancements
Information-based service extensions
Multisided platform business
CUSTOMER EMPLOYEE
OPERATIONS
EXPERIENCE EXPERIENCE
Experience design Core process automation Augmentation
Connected & dynamic
Customer intelligence Future-readying
operations
Data-driven decision-
Emotional engagement Flexforcing
making
DIGITAL PLATFORM
Core
Externally facing
Data
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
16
Creating a Compelling Customer Experience
Digital masters do 4 things
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
17
: A Case Study
Different competitors at different stages
Adapted from “Driving Digital Strategy” by Sunil Gupta, HBR Press Aug 12 2020
18
The Transformation
of • Weather maps
Weather • Weather forecasts
Data • Rain, humidity,
temperature sensors
• Tractors
• Tillers
• Planters
• Seed database
• Farm-performance
databases
• Speed-optimization
• Field sensors applications
• Irrigation nodes Irrigation
• Irrigation
application
19
New Ways To Build Value For Customers And
Create Competitive Advantage
MULTIPLE CUSTOMERS
SINGLE CUSTOMER
Adapted from “Driving Digital Strategy” by Sunil Gupta, HBR Press Aug 12 2020
Lets look at…
BUSINESS MODEL
Digital enhancements
Information-based service extensions
Multisided platform business
CUSTOMER EMPLOYEE
OPERATIONS
EXPERIENCE EXPERIENCE
Experience design Core process automation Augmentation
Connected & dynamic
Customer intelligence Future-readying
operations
Data-driven decision-
Emotional engagement Flexforcing
making
DIGITAL PLATFORM
Core
Externally facing
Data
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
21
Operations
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
22
Employee Experience
• Fear of Robots replacing • L&D to use digital methods to • Multi-skill, to be more agile
labour may not always be the digital-ready employees of • Gig workers – reference to ex-
case the future; also, digital employees
• Huntington Ingalls Industries learning democratises • Smart contracts – Theory of
– Ship building – uses AR to learning delivery incomplete contracts (Oliver
improve safety and Hart)
streamline processes; • Vancouver’s Island Health
integrates a worker into the Authority & South Island
entire project management Hospitalists
process
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
23
To Summarise…
BUSINESS MODEL
Digital enhancements
Information-based service extensions
Multisided platform business
CUSTOMER EMPLOYEE
OPERATIONS
EXPERIENCE EXPERIENCE
Experience design Core process automation Augmentation
Connected & dynamic
Customer intelligence Future-readying
operations
Data-driven decision-
Emotional engagement Flexforcing
making
DIGITAL PLATFORM
Core
Externally facing
Data
Source: The new elements of Digital Transformation: Didier Bonnet and George Westerman: MIT Sloan Management Review: Winter 2021 issue
24