What is Digital Success and Transformation? Digital success, at scale, is building a billion-dollar revenue digital business that is profitable. Digital transformation is not about using technology to cut costs or optimize operations; it is about improving the customer experience by 10X in your industry for digital success. Since 1995, only 29 companies have achieved digital success, at scale: 25 pure-plays like Amazon and Netflix, and 4 spin-offs from traditional companies like Macy’s (FD) and ABInbev (ZX).
What did the 29 successful companies do differently? All 29 successful companies were also the digital winners in their markets—winning on 8 key dimensions:
STRATEGY
1. Created 10X superior CX—to attract most customers/revenue—in their market 2. Invented new digital-only Business Model—to be most profitable—in their market
3. Designed “people-centric” Structure—to attract best talent—in their market
SPEED
4. Increased Execution velocity 10X—to gain most market share—in their market 5. Fostered owner-mindset Governance—to unlock most shareholder value—in their market 6. Unleashed hyper-growth Culture—to grow fastest/learn most—in their market
INNOVATION
7. Built Resilient ecosystem—to drive the most innovation—in their market 8. Developed Data/Analytics competency—to maximize performance—in their market
About GVG Capital + LAB GVG Capital is the #1 global investment and advisory firm in digital transformation. Since 1995, GVG Chairman Love Goel led the only 4 successful transformations/spinoffs from traditional companies [as Chairman/Co-Founder], and advised over half the successful pure-plays [Strategic Advisor/Investor]. The LAB makes the impossible possible—by engaging with CEOs and Boards to find answers to tough questions that they have been unable to find despite investing billions over decades—so they can build the digital winner in their market. We offer insights from our unmatched operating, governance, investing and advisory experience of building digital winners and transforming companies. We led the largest study on digital success/transformation; and curated the world’s largest database of digital KPIs/best practices. We help CEOs, Boards and Investors achieve this through bespoke, hands-on, high-impact workshops. For the first time, we are offering workshops to non-portfolio companies because of the urgent need exposed during COVID for iconic companies to transform. We would like to help as many companies as we can; but can only host one company each month. Each workshop focuses on one of the 8 key dimensions of digital success, is 3 hours long, and personally led by our Chairman Love Goel. Virtual and in-person workshops offered in Boca Raton, Florida. Located near three international airports MIA, FLL, PBI.
© GVG Capital. All Rights Reserved | Page 1 of 4
LAB WORKSHOPS — DIGITAL SUCCESS AND TRANSFORMATION
4 Deliverables/Answers CEOs + Boards get from each of the 8 workshops Best Practice: Methodology – 3-5 things that all 29 companies did differently – to win on each dimension Industry Assessment: Application of the methodology to your target market – potential solutions to win Company Digital Solution: Optimal solution that only your company can uniquely deliver to the market Execution Plan: Key milestones, timeline, resources, risk to implement the winning solution To schedule a workshop or 2-3 day management/board offsite for several workshops, please contact us.
Workshop 1: Customer Experience (CX) Objective: Create 10X superior CX—to attract most customers/revenue—in your target market 1. 2. 3. 4.
What did the 29 companies do differently to create 10X superior CX? [3 Things: HTP] How HTP methodology can be applied in your target market? Which HTP methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning HTP solution?
Other questions: Why is CX the single most important dimension of digital success? Why is failing fast or MVP (minimum viable product) not a prudent CX strategy for established brands/companies?
Workshop 2: Business Model (Profitability) Objective: Invent new digital-only Business Model—to be most profitable—in your target market 1. 2. 3. 4.
What did the 29 companies do differently to build a profitable business model? [4 Things: TDDD] How TDDD methodology can be applied in your target market? Which TDDD methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning TDDD solution?
Other questions: Why has no traditional company built a profitable billion-dollar digital business? Why did they have to spin off their digital business to be profitable? What common mistakes can you make in calculating digital profitability? Why are only 1% of billion-dollar digital businesses profitable?
Workshop 3: Structure (Spin-Offs) Objective: Design “people-centric” Structure—to attract best digital talent/partners—in your target market 1. 2. 3. 4.
What did the 29 companies do differently structurally to attract the best talent? [4 Things: SCCC] How SCCC methodology can be applied in your target market? Which SCCC methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement winning SCCC solution?
Other questions: What are the three keys to a successful digital spin-off? Why did 99% fail?
Workshop 4: Execution (Growth) Objective: Increase Execution velocity 10X—to gain most digital market share—in your target market 1. 2. 3. 4.
What did the 29 companies do differently to increase execution velocity 10X? [3 Things: SHQ] How SHQ methodology can be applied in your target market? Which SHQ methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning SHQ solution?
© GVG Capital. All Rights Reserved | Page 2 of 4
LAB WORKSHOPS — DIGITAL SUCCESS AND TRANSFORMATION
Workshop 5: Governance (Owner Mindset) Objective: Foster owner-mindset Governance—to unlock most shareholder value—in your target market 1. 2. 3. 4.
What did the 29 companies do differently in governance to maximize value? [3 Things: ZOC] How ZOC methodology can be applied in your target market? Which ZOC methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning ZOC solution?
Workshop 6: Culture (Learning) Objective: Unleash hyper-growth Culture—to grow fastest/learn most—in your target market 1. 2. 3. 4.
What did the 29 companies do differently in culture to unleash? [3 Things: BFF] How BFF methodology can be applied in your target market? Which BFF methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning BFF solution?
Workshop 7: Innovation (Resilience) Objective: Build Resilient ecosystem—to drive the most innovation—in your target market 1. 2. 3. 4.
What did the 29 companies do differently to drive innovation and resilience? [5 Things: PICCT] How PICCT methodology can be applied in your target market? Which PICCT methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement winning PICCT solution?
Other questions: How to leapfrog competitors using the shift from Web to Decentralized Metaverse?
Workshop 8: Performance (Data/Analytics) Objective: Develop Data/Analytics competency—to maximize performance—in your target market 1. 2. 3. 4.
What did the 29 companies do differently to use date to maximize performance? [3 Things: COF] How COF methodology can be applied in your target market? Which COF methodology based solution can only your company uniquely deliver? Execution Plan (timeline, milestones, resources, risks) to implement your winning COF solution?
Burning Question: How do you do in a 3 hour workshop what we haven’t achieved in decades? Since 1995, no Fortune 500 company (except for 4 spin-offs led by GVG) and <1% of digital businesses have succeeded in any of the 8 dimensions of digital success—which are the focus of the workshops. The LAB helps CEOs and Boards find answers to these tough questions in 3 hours because we bring: 1. World’s largest digital best practice + KPI database from 5,000 companies—built over 25 years 2. High-impact, hands-on, 3 hour process to help CEOs and Boards find answers—refined over 25 years 3. Bespoke workbench created for each invited company for brainstorming and benchmarking—with company/industry financial + operating KPIs; customer/macro trends + metrics; SWOT analysis 4. Unmatched operating, governance, investing, advisory track record—helped over a dozen companies achieve all 8 dimensions of digital success. Led every successful digital transformation, at scale.
© GVG Capital. All Rights Reserved | Page 3 of 4
LAB WORKSHOPS — DIGITAL SUCCESS AND TRANSFORMATION
Thoughts on Profitability: Why no Fortune 500 company has built a profitable digital business? The net income margin of companies in mature industries range from 5% to 25%; with fairly predictable marketing, operations and G&A expenses (as a % of sales). But, to scale their digital businesses, they must spend an incremental ~1,500 b.p. in marketing expenses (~15% of sales) on platforms like Google and Facebook; otherwise, they risk cannibalizing and destroying their core business. Furthermore, to provide a winning digital customer experience, companies must invest an additional ~1,500 b.p. in technology and operations (~15% of sales) beyond their traditional business. This incremental expense of ~3,000b.p. (~30% of sales) illustrates why traditional companies have never, and never will, build a profitable, billion-dollar digital business. If they claim to be profitable, it is typically because they naively misallocate expenses and revenues to the wrong channels. More industry-specific details, nuance, complexity, and solutions for profitability, in Workshop#2 on business models.
The Promise of Digital: Decentralized Metaverse
The promise of digital will finally be realized—just like humanity successfully did in the 19th century as it transitioned from Industrial Revolution 1.0 to 2.0—from steam to electricity. The electricity period of the Industrial Revolution lasted 170 years. Similarly, as humanity evolves from Digital Revolution 1.0 to 2.0— from the web to decentralized metaverse—it is likely to last into the 23rd century.
1780
1820
Steam
1990 Electricity
Industrial Revolution 1.0
Industrial Revolution 2.0
2030 Web
Digital Revolution 1.0
2200 Decentralized Metaverse Digital Revolution 2.0
Despite all the good it has done, the internet is broken; and the 4 problems it has spawned are unsustainable: (1) unprecedented and dangerous concentration of power and money, (2) lack of seller transparency, (3) lack of buyer privacy and data rights and (4) mental health issues. LAB View: •
Innovation—the shift from web to decentralized metaverse—will solve the 4 problems much faster and better than legislative and regulatory bodies globally.
•
Key Digital 2.0 Technologies likely to be: AR/VR, Crypto/Blockchain, Cloud and AI/Robotics.
•
Shift will create opportunities for incumbents and new entrants to leapfrog competitors.
© GVG Capital. All Rights Reserved | Page 4 of 4
LAB WORKSHOPS — DIGITAL SUCCESS AND TRANSFORMATION
Trusted by dozens of iconic companies and investors
What people are saying about Love Goel Digital Whiz-Kid, transforming icons and industries…
Father of Multi-Channel Retail
Pioneering innovator, renowned for building market leaders…
Father of Digital Transformation
Pai de Multi-Canal Varejo
Vater des Multi-Channel Einzelhandel
#1 in digital transformation
_________________________________________________________________________________________ DISCLAIMER THE OPINIONS EXPRESSED IN THIS DOCUMENT ARE CURRENT OPINIONS OF GVG CAPITAL AS OF 2022, AND MAY CHANGE AS SUBSEQUENT CONDITIONS VARY. ANY PROJECTIONS, MARKET OUTLOOKS OR ESTIMATES IN THIS DOCUMENT ARE FORWARD LOOKING STATEMENTS AND ARE BASED UPON CERTAIN ASSUMPTIONS. OTHER EVENTS WHICH WERE NOT TAKEN INTO ACCOUNT MAY OCCUR AND MAY SIGNIFICANTLY AFFECT RETURN OR PERFORMANCE. ANY PROJECTIONS, OUTLOOKS OR ASSUMPTIONS SHOULD NOT BE CONSTRUED TO BE INDICATIVE OF THE ACTUAL EVENTS WHICH WILL OCCUR. THE INFORMATION CONTAINED IN THIS DOCUMENT IS INTENDED ONLY FOR THE PERSON OR ENTITY TO WHICH IT IS SENT OR ADDRESSED AND CONTAINS CONFIDENTIAL AND/OR PRIVILEGED MATERIAL. PLEASE DO NOT RETRANSMIT, DISCLOSE, DISSEMINATE, USE OR TAKE ANY ACTION IN RELIANCE UPON, THIS INFORMATION. THIS DOCUMENT MAY CONTAIN “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, AS AMENDED. BECAUSE SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM ANY EXPECTATIONS, PROJECTIONS OR PREDICTIONS MADE OR IMPLICATED IN SUCH FORWARDLOOKING STATEMENTS. INVESTORS ARE THEREFORE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON SUCH FORWARDLOOKING STATEMENTS. THESE MATERIALS DO NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL THE INFORMATION THAT AN INVESTOR MAY DESIRE. THESE MATERIALS ARE MERELY FOR DISCUSSION ONLY AND MAY NOT BE RELIED UPON © GVG Capital. AllCONSTRUE Rights Reserved | Page of 4 FOR ACCURACY OR MAKING ANY INVESTMENT DECISION. INVESTORS SHOULD NOT THE CONTENTS OF5THIS DOCUMENT OR ANY PRIOR OR SUBSEQUENT COMMUNICATION FROM GVG CAPITAL OR ANY OF ITS REPRESENTATIVES OR AFFILIATES, AS LEGAL, TAX, OR INVESTMENT ADVICE.