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Enterprise Digital Strategy

Enterprise Digital Strategy. Global Growth Conference January 11, 2012. Amway ’ s Global Web Initiative Begins – May 2007. 8 months earlier Facebook was only open to college students. Computers own almost 100% of Internet Traffic. MySpace leads. Valued at $12 Billion.

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Enterprise Digital Strategy

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  1. Enterprise Digital Strategy Global Growth Conference January 11, 2012

  2. Amway’s Global Web InitiativeBegins – May 2007 8 months earlier Facebook was only open to college students Computers own almost 100% of Internet Traffic MySpace leads. Valued at $12 Billion Tablets and eReaders nonexistent 50% of global population own mobile phones, 4.8% own smartphones Twitter had 130K tweets per month Loading a single website page on a mobile phone takes over one minute eCommerce spending was $27.2 Billion – Q2 2007 Apple feverishly working on crazy “iPhone” idea

  3. June 2007 ‘May 2007’ Apple feverishly working on crazy “iPhone” idea Apple Launches the iPhone and changes the mobile landscape

  4. ‘May 2007’ Apple feverishly working on crazy “iPhone” idea November 2007 Google’s Android Operating System Released

  5. ‘May 2007’ MySpace leads. Valued at $12 Billion April 2008 Facebook surpasses MySpace as the World’s #1 Social Network

  6. ‘May 2007’ Apple feverishly working on crazy “iPhone” idea July 2008 Apple App Store Launches – 10M apps sold in 3 days

  7. ‘May 2007’ Apple feverishly working on crazy “iPhone” idea October 2008 1st mobile phone launches utilizing the Android operating system

  8. ‘May 2007’ Apple feverishly working on crazy “iPhone” idea April 2009 Apple App Store reaches 1 Billion downloads

  9. ‘May 2007’ Tablets and eReaders nonexistent April 2010 iPad launches - Computing becomes closer, easier, and more fun

  10. ‘May 2007’ 8 months earlier Facebook was only open to college students July 2010 Facebook reaches 500M users

  11. ‘May 2007’ Twitter had 130K tweets per month August 2010 Twitter continues to achieve exponential growth

  12. September 2010 ‘May 2007’ Computers own almost 100% of Internet traffic Wakeup call sent to Corporate America

  13. Social Networks (e.g. Facebook) 2000 2010 ‘May 2007’ Computers own almost 100% of Internet traffic Video (e.g. YouTube) Web Proportion of total US Internet Traffic September 2010 Web sites have been declining as a % of Internet traffic

  14. ‘May 2007’ Computers own almost 100% of Internet traffic December 2010 WRONG

  15. December 2010 ‘May 2007’ Computers own almost 100% of Internet Traffic

  16. ‘May 2007’ Tablets and eReaders nonexistent December 2010 Tablet use is exploding

  17. ‘May 2007’ Twitter had 130K tweets per month May 2011 @ReallyVirtual: “Helicopter hovering above Abbottabad at 1AM (is a rare event),” “Go away helicopter – before I take out my giant swatter.” Covert secrecy means little to Social Media. Everything is instantly global @ReallyVirtual: "Uh oh, now I'm the guy who liveblogged the Osama raid without knowing it,"

  18. ‘May 2007’ 8 months earlier Facebook was only open to college students June 2011 Brazil and Japan - Facebook will soon be #1

  19. June 2011 ‘May 2007’ MySpace leads. Valued at $12 Billion Google+, a formidable challenger emerges; 100MM users by Q1 2012

  20. ‘May 2007’ 50% of global population own mobile phones, 4.8% own smartphones July 2011 Mobile “Smart Phone” Usage Exploding

  21. ‘May 2007’ 50% of global population own mobile phones, 4.8% own smartphones August 2011 Worldwide Smartphone Sales by Operating System The Smartphone market has been changing rapidly

  22. Dec 2011 MARKETPLACE SECTION DECEMBER 22, 2011 “Former CEOs Criticize Avon” Leveraging social media in a timely manner is critical “…disappointed with how long it has taken Avon to ‘embrace electronic tools that fuel the sales of Avon through social networks’.”

  23. Landscape in May 2007 8 months earlier Facebook was only open to college students Computers own almost 100% of Internet Traffic MySpace leads valued at $12 Billion Tablets and eReaders nonexistent 50% of global population own mobile phones, 4.8% own smartphones Twitter had 130K tweets per month eCommerce spending was $27.2 Billion - Q2 2007 Loading a single website page on a mobile phone takes over one minute Apple feverishly working on crazy “iPhone” idea

  24. Landscape Today Mobile devices now lead desktop computers in Internet traffic eCommerce Spending was $38 Billion Q1 2011 - iPhone and Android own 69% of the smart phone market 8 months earlier Facebook was only open to college students 73% of global population own mobile phones, 23% own smartphones Twitter has 4 Billion tweets per month Computers own almost 100% of Internet Traffic <1 second to load an optimized website page MySpace recently sold for $35 million Tablets and eReaders are challenging desktops Facebook: 750 million users MySpace leads valued at $12 Billion Tablets and eReaders nonexistent 50% of global population own mobile phones, 4.8% own smartphones Twitter had 130K tweets per month eCommerce spending was $27.2 Billion - Q2 2007 Loading a single website page on a mobile phone takes over one minute Apple feverishly working on crazy “iPhone” idea

  25. Strategy Priorities Distributor, Customer & Consumer ExperienceDistributor Success: Deliver the optimal distributor experience and enhance the fundamentals of the business opportunity. Engage more deeply with our target segments, including a comprehensive focus on GenY. Expand and diversify how Amway interacts with distributors, customers, and consumers in innovative ways, including social media, mobile, web, and physical presence. Amway Strategic Agenda Growth Through Innovation Achieve profitable and sustainable growth by offering the leading direct-selling business opportunity – rich in support for individual entrepreneurs and providing a rewarding community-based experience – that connects to consumers through a portfolio of innovative, high-quality and compelling products and brands. Distributor & Consumer Experience Distributor, Customer & Consumer Experience Offer the leading direct-selling business opportunity, rich in support for individual entrepreneurs that provides a rewarding, community-based experience. Increase recruiting, retention, productivity, engagement and morale Provide compelling programs and platforms for consumers to connect with Amway, our distributors and our products. Increase customer acquisition, engagement, productivity and registered customer percent of sales. Vision Helping people live better lives. Products & Brand Management Develop and actively manage the portfolio of innovative, high-quality branded solutions and services. Improve portfolio profitability, speed-to-market and market share. Products & Brand ManagementEnhance the portfolio of distributor- and consumer-oriented products, branded solutions and services. Focus on power brands: Amway, Nutrilite, Artistry Business Excellence Measures Integrate and align our efforts to create greater enterprise efficiency and value to shareholders, employees, distributors and customers. Improve productivity, timeliness and return on investments. Strategic & Financial Health 2014 Increase Amway direct-selling market share to 11.0% Increase global Amway brand net favorability to 39 Achieve Enterprise Sales of $13.3B Achieve operating income of 17% Business Excellence Develop talent and cultivate a highly engaged, performance-driven, and agile workforce. Improve global effectiveness and efficiency.

  26. Questions? If digital is a “disruptor”, how will we compete to win? What is Amway’s digital strategy for the future? How will we remain timely and relevant? How do we develop an agile, lasting digital capability?

  27. Enterprise Digital Strategy Team • Team Members: • - Martin Liou (Greater China Region) - Dan Bazuin (Enterprise IT) • - Imran Zaman (Europe/India/Africa) - Jackie Dangl (Global Strategic Planning) • - Craig van Zyl (Asia Pacific Region) - Russ Hannah (Asia Pacific Region) • - Mike Edwards (Marketing / Sales) - Michael Nelson (Enterprise IT) • - Ryan Payne (Innovations) • Timing: • Team kickoff: week of October 24 • Final recommendations / completion: February 10

  28. Digital: Future We are creating a new kind of reality, one in which physical and digital environments, media and interactions are woven together throughout our daily lives. In this world, the virtual and the physical are seamlessly integrated. Cyberspace is not a destination; rather, it is a layer tightly integrated into the world around us. Institute for the Future, Palo Alto, CA

  29. Global Initiatives in the Digital Space AUSTRALIA: AmComm • iPad content Experiences AUSTRALIA: AmComm (replaces eComm), CRM implementation,POS implementation, Microsite refresh, iPad content experiences, SEO Activities CHINA: RPG Amway Game, (3D online game for training), Amway first 90 day game (in development), Knowledge Management System, Mobile version of RPG game, Building online Amway community , round LOHAS event, User generated elearning, SEM Activities, Iposter, Kiosk and Infosign rollouts HK/TW: New DX website, eLearning Platform, iPhone apps – PV/BV, and business management focus, Amway Facebook fans group, eMagazine Initiatives around: Artistry, Alive, Product catalogue, 30th anniversary (Taiwan) EUROPE: Digital Strategy Support, Globalweb LTE, ERE New functionality, Brand pages refresh, Mobile ERE, App for new ABO experience KOREA: Strategy for Mobile Presence in Korea, Business Solution Strategy, Artistry Men Microsite, Global Web Brandcenter, Global Web eComm/gBiz, Brand Mobile WebPage, Digital Magazine Service JAPAN: Single registration for PC/MB, Artistry for Men site creation, Artistry site refresh, Smartphone optimization for 6 microsites, iPhone smart app for business inquiry and LOS lookup, Optimize Amwaylive site for iPhone/Mobile, Facebook, Twitter, YouTube account releases, New Facebook content and refresh, SEO/SEM Activities, Digital Amagram LATIN AMERICA: My Amway page refresh, Brand Center “look and feel” standardization, SEO Activities, Web Dashboards, CMS update for better design, Leads program through social media, Mobile Web 2.0 Launch, Virtrue facebook platform launch, Pilot retail Facebook platform NORTH AMERICA: Brand Web Experiences Launch, Web Analytics baseline, Mobile Web Optimization, SMS capability, Mobile Strategy Validation, Amway, Bonehealth and Artistry Apps, Social Media Promotions/Campaign Launches, SEO/SEM Activities, ePub, eNewsletter and iPop experiences launched CHINA: RPG Amway Game • Amway first 90 day game HK / TW: New DX website • iPhone apps – PV/BV and business management focus EUROPE: GlobalWeb LTE • Brand pages refresh • App for new ABO experience KOREA: Artistry Men Microsite • Global Web Brandcenter • Global Web eComm/gBiz JAPAN: Single registration for PC/MB • Artistry for Men site creation • Smartphone Optimization for 6 Microsites LATIN AMERICA: Mobile Web 2.0 Launch • Pilot Retail Facebook Platform NORTH AMERICA: Brand Web Experiences Launch • Web Analytics Baseline • Amway, Bonehealth and Artistry Apps

  30. Digital Strategy Statement Continually leverage the evolving digital landscape to enable business strategies – providing competitive advantage for distributors and fostering relationships with customers and consumers.

  31. Digital SOM Strategy & PrinciplesWhat are the key strategies that will drive Operating Model decisions and behaviors? OrganizationHow are we organized? ProcessArchitectureHow do we operate? Measures& ScorecardHow do we measure ourselves? GovernanceWho is accountable for decisions? Roles & CompetenciesWhat are the associated key roles, skills, knowledge and behaviors? 32

  32. Deliverables • Guiding Principles; Strategy Framework • Process / Capabilities Mapping • Governance • Technical • Operational • Governance -- Enterprise / Regional / Market • Measures of Success • Organization and Roles = Focus to date

  33. Digital Guiding Principles #1 Strategy Digital solutions will enable business strategies and must evolve to remain relevant with distributors, customers and technology trends. #2 Process Drive global standardization for core business processes while fostering regional/market flexibility and agility; technology solutions will focus on “buy” decisions before “build” decisions. #3 Governance Ensure decision rights are clear and consistently followed to accelerate decision making in the rapidly evolving digital and technology landscape. #4 Data and Measures Ensure data and measures are consistently defined, collected and reported. #5 Organization and Roles Organize to foster innovation, leverage leading practices/successes, and standardize digital platforms.

  34. Strategy: Digital Strategic Framework • Defines • Channels & Capabilities • Web - Mobile • Social - Digital Marketing/Selling • Functional Support • Why, Where, How • Benefits • Global and Consistent Approach • Region and Market Flexibility • Strategic Prioritization

  35. Process: Business Capabilities Diagram • Process “Views” • Governance • Technical • Operational • Benefits • Identify commonalities for standardization • Determine unique processes that differentiate and create value

  36. Governance • Clear identification of decision rights and accountabilities: • Market • Regional • Core / Enterprise • Organizational design and roles will align to governance structure

  37. Next Steps • Focus on the following elements: • Completion of Governance Model • Organization Design and Roles – Enterprise/Region/Market • Business • Technical • Future state technology architecture and implications to existing programs • 12-18 month “roadmap” related to future state • Finalize recommendation to Exec Staff (February 2012) • Socialize with key stakeholders: • CMO Council • Global Sales Council • Global IT Council • Others

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