Aspire Case Competition Nusantara Helte Consulting Alfan Rezani - Ethenia Novianty - Ghina S. Filiana Wednesday, April 13th 2016
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Executive Summary Challenge
Complications
Solution
Finding the pathway to create a new, agile, and integrated approach for the project model
Initiating a new way to ‘experience’ LEGO products following a new digital disruption by optimizing customers insights
Create a new digital initiative that fits into LEGO core product lines as well as LEGO Group strategy
Apply data-driven approach along with an agile process into a new digital initiatives The need to adapt to a rapidly changing trends where it leads to more than just digitalization
Executive Summary
Analysis
Adding data-driven attitude and customer insights as new adjustment to new project model
Strategy Proposal
Implementation
The road map should be in line with core competencies and culture of the LEGO Group
Risk Analysis
Outcome
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LEGO Agile Digital Initiatives How does LEGO create a new digital experience and transform its future decision making and development process?
Goal
Context
Lego is one of the first-movers in toys industry and has opportunity to expand to a new digital experience ● Strong in traditional toys, but still figuring out how to step into the digital trends ● The digitalized products that LEGO has launched are: LEGO MINDSTORMS, LEGO DIMENSIONS, LEGO NEXO Knights Merlok 2.0, and LEGO Universe (has been closed in 2012). However, these products have not been very succeeded yet. ● Issue with combining digital trends and physical brick-building experience. Transforming LEGO digitalized products into a success core product line
Integrating digital trends into the LEGO experience
Embracing big data and consumer insights
Applying disruptive digital experience
Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Pyramid Principle
Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
From traditional approach to a new digital era Digital Trends ●
New focus on consumer experience and engagement
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High reliance priority on big data & advanced analytics
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Impacts on LEGO
Rapidly new changing market trends that lead toward more innovation
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Force to have new approach towards digital product development
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Increasing level of flexibility and adaptability
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Allowing more customer insights and big data to be taken into consideration
“The Digitalization of Everything” Executive Summary
Analysis
Strategy Proposal
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Implementation
Risk Analysis
Outcome
And Everything is awesome!
Digitalization should NOT replace the True LEGO experience
LEGO Mindstorms LEGO Dimensions
LEGO Nexo Knights Merlok 2.0
Source: LEGO foundation, 2009
● Programming aspect is more dominant than building bricks ● LEGO bricks are just complementing the game in the screen
● Over diversification with no physical experience involved (has been shut down in 2012)
LEGO Universe
Executive Summary
Weak points:
Analysis
● Lack of physical experience of touching LEGO bricks
When too much modifying digital component in the LEGO products and it is more dominant than the physical building bricks experience, the true brand value of LEGO is in risk
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Our new initiative should match key trends in toy industry with LEGO core values
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“Coveted Collectible” Socialization and share experience with their family and friends
“Bring Toys to Life” Combining technology with innovation with traditional toys to provide more interactive experience
Executive Summary Source: Toy Industry Association, 2016
“Brain Booster” “Family matters”
“Ultimate Creator”
Increase family bonding, online/offline, through toys. Helping families create memory through play
Toys teach children to skillfully build and design that can later be implement in life
Analysis
Strategy Proposal
Implementation
Encourage kids’ proficiency and support children as they grow and gain new abilities, while also having fun
Risk Analysis
Outcome
Hint! “More than Reality”
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Combining Virtual and Physical Experience Artistic Mode
LEGO is already in a strong position in toy industry with high branding perceived from consumers. But LEGO, which has a history of blending tech into its traditional building sets may get another chance to let its consumer to experience more than just ‘reality’.
Virtual
Physical Virtual - Physical
We want to bring the journey with combining both playfulness and imagination in the act of constructing LEGO bricks
Artistic - Scientific
Hint! “More than Reality”
Scientific Mode Executive Summary Source: LEGO foundation, 2009
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Big data-driven would lead us to more innovation, yet optimization
Driving Agility with Big Data
Analyzing various information and data input can help LEGO deal better with change through a straightforward optimization process Gathering all the data on anything you’re doing will help you make recommendation on what to adjust for the better process Can help LEGO to adapt and analyze future initiatives or new development ideas
Driving Innovation with Big Data
Executive Summary
Analysis
Strategy Proposal
Innovation is a result from various data and insights from many aspects, including your market, consumers, or your own business.
Taking Big Data-driven optimization to the highest level is how companies make the most of their breakage-prone widgets
Implementation
Risk Analysis
Awesome!
Outcome
Our Recommendation Will Bring LEGO to a NEW Level Developing Existing Products + + + -
Creating a New Experience
Based on past experience Required no new expertise Minimum investment Non adaptive Over-diversification Provide no new value Provide less physical ‘building bricks’ experience
+ + + -
First mover advantage Open to a new business development perspective New insights gained from every process and technological development High investment Limited expertise
A new experience built will develop more innovation and bring LEGO to a new level Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
Introducing LEGO Beyond Reality
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Behind the Augmented Reality, not JUST virtual The trend of using Augmented Reality (AR) for gaming and entertainment has been increased and is predicted to keep rising for the next 5 years.1
With AR it can project someone that is located far away as if they are in the same room and these people can have real time interaction when both of them are using AR device.
A new software will be developed. and consumers can experience the augmented reality through Hololens by Microsoft.2 This will bring LEGO to a new level that allow consumer to experience both physical play and virtual digital component.
Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Matrix Prioritization
Augmented Reality allows a higher degree of ‘building bricks’ physical experience compared to mobile app and online game. It is also a new technology that brings great innovation in the future. Hololens by Microsoft is the most recent innovation in 2016 that provides many benefits.1 Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
Developing the new software, while using big data inputs and various insights
Gathering data from both external and internal sources
Start preparation to application testing
- consumer insights - internal developers - external developers Open innovation allows external (third party) to collaborate in developing software
Through ‘open innovation�, it will create more efficient and desired outcome as it is based on the real demand and current trend
Develop Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Evaluate and Improve even more through app testing ● Conduct an app testing from our new-built software in several region leader for LEGO market by using Microsoft emulator ● Analyze consumer behavior and consumer expectation through testing ● Perceive cultural differences and different global trends, then transform it into opportunities as LEGO strength in adaptability ● Through continuous testing, LEGO could analyze the market dynamics and create business agility in the process development
Software Testing Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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When the market is ready, we will be more than ready!
During Launching ● ● ●
Post Launching
Campaign hard! After continuous testings, it has create strong positive customer experience impact Quality and long term focus on service development will attract not just only children, but adults to have more fun!
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Create added value to the service by initiating new platform where people can share, connect, and socialize each other among LEGO-enthusiasts
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Continue to seek for more improvement by being data-driven & using agile development process
Isn’t it awesome? yet...
Launching and Market Acceptance Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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To be ready, we have to start NOW! Wait, but How does it actually work? 1 year
2 year
We will develop an app that can be used in HoloLens that can also be used in any other Microsoft/ WIndows devices, that can bring our consumers to a new level of playing LEGO
Executive Summary
Analysis
+3 year
Through HoloLens, playing LEGO is not just building bricks by bricks. Users can download an app developed by LEGO and use its ‘virtual’ instruction with characters that they like or play together with other users in real time Strategy Proposal
Implementation
Not just that!
But bringing LEGO bricks to life is also one of our goals, where consumers can ‘experience’ what they have built, e.g. being in a Star Wars movie.
Risk Analysis
Outcome
NERD stuffs!!
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Functional Benefits of LEGO Beyond Reality Bring The Children and Parents to Play Together (even within Long Distance)
In many countries, especially in America and Asia, parents are reluctant to sit down and play together with their children because many of them are very busy at work (less work-life balance).1 LEGO Beyond Reality will facilitate and bridge the distance barrier when parents are at work, but their children needs a guidance from them when they want to build LEGO bricks. It will also bring them closer!
Teach Children to Build LEGO Easier (with Virtual Assistant) Many children, especially those under 6 years old cannot read manual instructions in LEGO well to build the bricks. LEGO Beyond Reality that is equipped with a software will project LEGO figures, e.g. Emmet into real life that will assist children in a more engaging way on how to build the LEGO bricks step by step as if they are interacting to each other in real life.
Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
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Moving to digitalization, there are always solutions to mitigate risks! Insufficient data at pre-product implementation Similar move from followers/other toy companies Unpredictable AR hardware price Zero consumer adaptation for AR technology Mitigation for the highest risk : Aggressive push strategy by developing another LEGO product that is very attractive to improve adoption rate of AR followed by Integrated Marketing Communication of the new LEGO Beyond Experience Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
We recommend LEGO to implement digital initiatives through LEGO Beyond Reality Create a totally new experience
Combining physical and virtual experience will create a new experience that is inline with LEGO core values
Augmented Reality is the perfect digitalization
Augmented reality has a steady growth as well as providing platform for big data generation and agile development processes
Beyond Reality Experience as a new LEGO service
To create a digital initiative that becomes the core product lines of LEGO, data-driven process in every step of Beyond Reality Experience will support the goal of transforming into more digitalized adaptive process model
Further digital development
Project model has been changed into data-driven approach, the market of AR/hololens has grown and been used more by consumers. It is the time to keep testing (post-test) for better digital experience. 20
Executive Summary
Analysis
Strategy Proposal
Implementation
Risk Analysis
Outcome
Appendix
Appendix - Importance of Digital Innovation
Source: McKinsey Survey 2014
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Appendix - Intention to play
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