The Impact of the Digital Economy on the CMO
How to Run Simple
Maggie Chan Jones, Chief Marketing Officer
@MaggieCJ
Uber
to
order
my car
The digital economy
will transform the
way we live and
Seamless
to order
dinner
work, how business
runs, and how
society functions.
Messenger
for quick
messages
to my team
Every CEO gets the digital economy…
but only 15% are taking action.
90%
of CEOs believe the
digital economy
will have a major
impact on their
business . . .
“
15%
. . . but only 15%
are taking action.
Our customers are telling us, ‘Look, I want to be social. I want one view of
my customer, total context awareness for who I’m dealing with, a context-rich
experience.’ This is where we have to be, and this is where SAP is.
–Bill McDermott at SAPPHIRE NOW in 2015
”
Every business is now a technology business.
OUR CONSUMER
IS CONNECTED –
ALL THE TIME.
84%
of smartphone and tablet
owners say they use their
devices as second screens
while watching TV at the
same time.
Source: Nielsen Connected Devices Report, Q3 2013
OUR CONSUMER
IS MOBILE.
More than
4 in 5 (87%)
smartphone or tablet
owners use mobile devices
for shopping activities.
Source: Nielsen Connected Devices Report, Q3 2013
OUR CONSUMER
HAS HIGH
STANDARDS.
86%
of customers are willing
to pay more for a better
customer experience.
Source: AMEX Global Barometer
Grupo Merza: A customer leading in the digital economy
TRANSFORMING
BUSINESS AND
REACHING OUR
CUSTOMERS
150 locations
The largest retail and
wholesale distributors
in Mexico
19 wholesale
distribution centers
152 retail stores
4,500 employees
Grupo Merza: A customer leading in the digital economy
Benefits of working with SAP
SAP solutions and outcome
70%
faster processing of transactional data and report
delivery with the SAP HANA platform
2 days to 4 minutes:
reduction in time needed to obtain information to make key
business decisions
5%
increase in productivity after implementing the SAP Sales
Analysis for Retail analytic application, Edge edition
“
Grupo Merza has users from various lines of business
accessing data from many sources, using SAP Lumira
software, desktop edition.
With analytics tools from SAP, Grupo Merza is becoming a data-driven
organization. With better data access and deeper point-of-sale insight, we
can see who our customers are and what they want.
–Alfonso Cedillo, CIO, Grupo Merza
”
SAP – ONE Digital Experience
Launch of an entirely new digital experience
for customers and prospects
65%
fewer Web sites
40%
= US$3.4 million
in 2014 cost avoidance
reduction in complexity in social
channels via consolidation of
social accounts at SAP
•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
•
Simplify
Streamline
75%
at
faster
User research and testing
costs reduced by
20%
of the cost
85%
As 5 billion people reach middle class,
new challenges arise in customer expectations,
the workforce, and resource management
Rising customer
expectations
82% of customers stop
doing business with
a company due to
a poor experience
Pressure on resources
Water 1.5x by 2030
Energy 1.5x by 2020
Food 1.5x by 2030
Metals 2x by 2030
71% of business leaders
believe that customer
experience is the next
battleground
$5.6 trillion
savings through connected vehicles
67% increase in crop yields
22% increase in supply
Dramatically changing workforce
High employee engagement:
chain efficiency
3x higher operating margin
Sources: Impact Report, Harris Interactive. Colin Shaw and John
Ivens, 2010; Deloitte Millennial Study, 2015; Shell, 2014; WRI,
2014; SAP SE, 2014. Towers Watson, 2012
Resources – workforce of the future
Verge of a
talent crisis
Millennials will
make up more than
50%
44%
70% of
want informal
feedback from
older workers
rather than their
managers
of respondents said
that the leadership at
their company can
lead the organization
to success
the workforce
Workforce 2020 – Mexico results
The new face of work
Top trends impacting workforce strategy
1
Difficulty recruiting employees with base-level skills
2
Increasing number of contingent employees
3
Globalization of labor supply
Challenges to building a workforce that
meets future business needs
1
Low level of employee longevity and loyalty
2
Limited supply of skilled talent
3
Lack of qualified leadership
82%
of executives say they will be
increasing the use of contingent,
intermittent, or consultant
employees.
40%
of executives feel that they’ve made
progress in building a workforce that
can meet future business goals.
The Digital Economy is here to stay
1. Do you have one view of the
customer and an omni-channel
customer engagement model?
2. Do you have a digital
transformation plan?
3. Do you have a people strategy to
attract and retain the workforce
of the future?
Thank you!
Maggie Chan Jones, Chief Marketing Officer
@MaggieCJ