Digital Business and E-Commerce
Management
Seventh Edition
Part 3
Implementation
Chapter 10
Managing digital business
transformation and growth
hacking
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Learning outcomes
• Critically analyse the journey of an
organisation through transformation
• Review the approaches to be taken in a
digital transformation exercise
• Produce a growth hacking/agile
marketing plan
• Create a plan to measure and improve
the effectiveness of digital businesses
using analytics tools
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Management issues
• What makes an exercise in a digital
business a digital transformation project?
• What are the non-technical aspects of a
digital transformation project?
• How do we gain traction on a limited
budget?
• What techniques are available to measure
and optimise our services?
• Does the organisation have the right culture
to support a growth hacking approach?
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Activity – Digital opportunities
• Make a list of any new technological
developments that have occurred in the last
12 months that seem to have appeared
from nowhere
• Consider what changes are needed by any
organisation to adapt to the development
– What cultural, practice or process changes
could the technology create?
– How would people change?
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Typical responses
• People might bring in aspects of digital
culture
• People might work different hours or in a
different place
• People might change the way they do
something in the workplace
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Definitions
• What’s the difference between:
– Digital transformation?
– Digital business transformation?
• What’s the difference between:
– Adopting technology?
– Adapting to technology?
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Figure 10.1 Ward and Peppard’s
IT portfolio grid
Source: Ward and Peppard. (2002)
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The applications portfolio
•
•
•
•
What makes something high-potential?
What makes something strategic?
What makes something key-operational?
What makes something support?
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Opportunities provided by digital
• Customer service and service design
– Customer insight
– Adding value
– Interfaces with customers
• Business and organisational processes
– Automation
• Business models
– Digital at the heart of the business opportunity
– Adapting the business to a digital opportunity
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Framework for transformation
• The process of review
–
–
–
–
Looking at where the digital opportunity is
Confidence about the digital opportunity
Leadership grasp of digital
Maturity of digital
• The process of strategy
• The process of resourcing and planning
– Design of transformation
– Programme of change
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Framework for transformation
(Continued)
• The process of deployment
• The process of living with and evaluating
digital transformation
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Figure 10.3 Ideal skill set of a
growth hacking team
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The growth hacking process
There are five key pillars to achieving
growth hacking success:
1. Product/market fit – create a Minimum
Viable Product (MVP)
2. User data analysis
3. Conversion rate optimisation (CRO)
4. Viral growth
5. Retention and scalable growth
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Figure 10.7 The lean start-up
Source: https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
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User data analysis
The five main areas of user testing are:
1. Technology analysis, for example, conversion
rate per browser
2. Heuristic analysis, for example, relevancy,
distraction and online value proposition
3. 3 Web analytics, for example, flow reports
4. Qualitative surveys, for example, exit surveys
5. Usability testing, for example, user session
videos
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Figure 10.10 The conversion
optimisation loop
Source: www.slideshare.net/seanellis/cro-preso-for-growth-hackers-conf-nov-2013-ellis-updated-28050686/7-Steps_to_Better_
ConversionsTwitter_SeanElliswwwGrowthHackerscom7
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User data analysis
There are seven main areas that can help
improve website conversion and sales:
1. A/B testing an multivariate testing
2. Having a structured approach
3. Customer journey analysis (covered in
Chapter 8)
4. Copy optimisation
5. Online surveys/customer feedback
6. Cart abandonment analysis
7. Segmentation (covered in Chapters 7 & 8)
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Figure 10.11 Conversion rate
optimisation maturity model
Source: http://online-behavior.com/analytics/conversion-optimization-model
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Viral growth
There are three main types of viral growth
1. Inherent virality: built into the product and
happens as a function of its use (e.g. Skype is
only useful if you share it with others)
2. Artifical virality: forced and is often built into a
reward system (e.g. GiffGaff and it’s community
of users, who help answer each other’s questions
and gain cash rewards)
3. Word-of-Mouth virality: when conversations are
generated by satisfied users (e.g. Zappos and it’s
high customer service, which is about ‘delivering
happiness’)
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Figure 10.17 The practical growth
hacking framework
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Figure 10.19 Dave McClure’s customer
lifecycle/conversion behaviour
Source : www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
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Figure 10.20 Operational
elements of growth hacking
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Figure 10.22 The five diagnostic categories
for e-marketing measurement from the
framework presented by Chaffey (2000)
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Summary
• You should be able to critically analyse the
journey of an organisation through transformation
• You should be able to review the approaches to
be taken in a digital transformation exercise
• You should be able to produce a growth hacking /
agile marketing plan
• You should be able to create a plan to measure
and improve the effectiveness of digital
businesses using analytics tools
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved