ORCHESTRATING CANON’S DIGITAL TRANSFORMATION AN 82 YEAR JOURNEY OUR HISTORY WHO IS CANON? CANON PRODUCTS PROFESSIONAL OFFICE HOME INDUSTRY CANON GLOBAL CANON HISTORICAL HIGHLIGHTS 1933 1947 1957 1971 1997 2005 2014 Canon’s predecessor, The company Canon Europa Canon U.S.A. relocates Canon Canon Canon achieves a world Precision Optical changes its name is established to Lake Success, NY China Co. celebrates first as production of EF Instruments to Canon Camera in Geneva Ltd., is its 50th Interchangeable Lenses 1968 Laboratory, is Co., Inc. established Anniversary surpasses 100 million Canon Amsterdam N.V. in the U.S. mark founded in Tokyo, Japan (Canon Europa N.V.) is established 1930 1940 1950 1960 1970 1980 1990 2000 2010 1942 1955 1969 1985 2001 2012 2016 Takeshi Mitarai Canon’s The company Canon Virginia, Canon Canon Inc. Canon Canada is appointed president NY branch changes its name Inc. is established Europe Ltd. celebrates relocates its of Precision Optical office opens to Canon Inc. in the U.S. is established its 75th headquarters Industry Co., Ltd. in London Anniversary to Brampton, Ontario 1937 1965 2000 2013 Precision Optical Canon U.S.A., Inc. Canon Inc. Canon U.S.A. Industry, Co., Ltd. is founded is established is listed on NY relocates its Stock Exchange headquarters to Melville CANON PATENT LEADERSHIP CANON IS IN THE TOP FIVE FOR 33 CONSECUTIVE YEARS IN 2018: 2015 2016 201 2018 ▪ #1 among Japanese companies 1. IBM 1. IBM 71. IBM 1.IBM 9,100 ▪ #3 overall in the U.S. 2. Samsung 2. Samsung 2. Samsung 2.Samsung 5,850 3. Canon 3. Canon 3. Canon 3.Canon 3,056 ▪ Canon invested 8% of Net Sales into R&D 4. Qualcomm 4. Qualcomm 4. Intel 4.Intel 2,735 5. Google 5. Google 5. LG 5.LG 2,474 2007 2008 2009 2010 2011 2012 2013 2014 1. IBM 1. IBM 1. IBM 1. IBM 1. IBM 1. IBM 1. IBM 1. IBM 2. Samsung 2. Samsung 2. Samsung 2. Samsung 2. Samsung 2. Samsung 2. Samsung 2. Samsung 3. Canon 3. Canon 3. Microsoft 3. Microsoft 3. Canon 3. Canon 3. Canon 3. Canon 4. Matsus 4. Matsus 4. Canon 4. Canon 4. Panasonic 4. Sony 4. Sony 4. Sony 5. Intel 5. Intel 5. Panasonic 5. Panasonic 5. Toshiba 5. Panasonic 5. Microsoft 5. Microsoft Source: United States Patent and Trademark Office THEN VS NOW SHIFT OUR BUSINESS MINDSETS, SYSTEMS & ORGANIZATION TO EMPOWER VISIONARIES EVERYWHERE WITH IMAGING TECHNOLOGY. DTP IS ABOUT TRANSFORMING ALL OF CANON INTO A DATA -DRIVEN ORGANIZATION THE PROCESS: HOW WE GOT HERE 3 PHASES LEADING UP TO THE DIGITAL TRANSFORMATION PROJECT (DTP) KICK OFF. PHASE 1; DEVELOP VISION PHASE 2; CREATE THE PLAN PHASE 3: FLESH OUT PLAN Current State Technology Assessment – Merkle POV and Observations Digital Transformation Project -5workgroups for Phase 1 DTP Overview MEDIA CHANNELS • No ability to segment emails (Proactive Outbound Campaigns) (Reactive Inbound4 Campaigns) • No ability to personalize Web experiences Search Site Grow Current Business Create New Business • No mobile apps supporting commerce capabilities Display Mobile Apps No email testing (control, subject line, treatment) or Web testing • Paid Social Call Center • No consolidated view of customer to Call Center teams Offline linkage MarCom Email / DM / SMS Ecommerce • Digital data from agency Is not integrated into the customer database(s) （ storefront/event（ reform Loyalty Data toC : • Siebel is woefully inadequate for campaign management Tag Management Imaging # • No enterprise content management capabilities # Dynamic Creative Decision Management Content Management new biz • No personalization and/or dynamic content 2 : 1 : • No decisioning for channel, offer, message, frequency Campaign Management customer Canon Data Canon . : Imaging & Canon • Attribution is based on last touch Reporting & Insights Planning Pros Education Community Planning is fragmented across multiple teams and processes AA Imaging AI : 1 : • WORKFLOW Inspire photo-activity PII database Attribution Analytic Tools GenY/Z : • Lacking consistent measures for enterprise view of marketing performance Functionality is in place and • Marketing database is divided into 3 unique repositories performing as required . : DMP toB • Customer attributes are not leveraged in Campaign Management Functionality is in place but Data Imaging • Custom CDI process with limited identity management Onboarding not performing as required or enabling full capability • No DDI solution new biz Data Enhancement Marketing Data Sourcing New product • No DMP and/or data onboarding Database Functionality is missing or Online linkage missing key component （ （ • No workflow management process that orchestrates marketing ecosystem CanonDirect/CDLC developmt. Identity Management 10 © 2017 Merkle. All Rights Reserved. Confidential Business & Organizational recommendations were plotted on a scale Multi-channel Digital Marketing Linkage Example of level of impact vs. level of effort 10 Foundational High Re-Align the Enterprise Customer Service Channel Community Platform 9 7 Budgeting process small starts Segmentation Personalization Planning Planning & 6 Development 1 Governance Structures 5 Flexible Shared-Service Resource Enhancement 2 8 1 4 Structure 5 3 4 Change Customer Portfolio Management Team Content & Channel 3 7 9 Personalization Strategy 1 2 Management Create Community 6 3 Task Force 2 Customer Driven Loyalty Program Planning 8 & Development Incentive Re-Align E-Business Customer Value Compensation Voice of Customer (VOC) 2 Modeling (CLV) 5 Enhancement 4 Reporting Enhancement Medium 1 7 6 4 Unified Consumer Metrics and Unified Mobile Strategy Level of Impact Measurement Framework Formal Marketing Processes Content & Channel 3 Personalization Strategy Welcome to Amazing Macro World!! 2 1 Low 1 2 3 4 5 6 7 8 9 10 Amongst advanced amateurs, extract users that like insects, Easy Medium Difficult Customer Addressable Performance Organization & 9 © 2017 Merkle. All Rights Reserved. Confidential bring them over using curated IMAGING DATA on Macro lens. Strategy Experience Management Leadership FOUNDATION CAPABILITIES UX WEB USER EXPERIENCE ORG HR SKILL-SETS, STRUCTURE READINESS IT SYSTEMS & DATA SETS WORKING GROUP STREAMS TECHNICAL PLATFORMS Data management platform development for properly identifying prospects and customers and fully leverage customer behaviors on digital properties. CHANGE MANAGEMENT Oversee progress of implementation (user training, communication planning and process design). Develop new processes for leveraging VOC data in collaboration with CSO/CITS. ANALYTICS Enhance capability to understand and leverage differences among prospects and customers within campaigns and reporting. OMNI CHANNEL Improve overall sales performance and manage multi-touch campaigns on email, social and other digital channels. WEB UX Enhance inbound digital experience on on Canon web properties. PHOTO COMMUNITY Create a community to strengthen customer engagement; acquire customer data through their imaging activities, and utilize imaging data to train imaging AI. BUILDING A FOUNDATION BUSINESS DEFINED GOALS SKILLS TO USE TOOLS MORE EFFECTIVE & EFFICIENT IT EMPOWERING TECH & TOOLS TIMELINES THAT MEET THE BUSINESS NEEDS FINDING THE RIGHT PARTNER IT + BUSINESS IT VS BUSINESS IT VS BUSINESS I T I S T O O THEY DON’T EXPENSIVE UNDERSTAND YOU NEED IT I T A L W A Y S THE WHEN? T R I E S T O COMPLEXITY! IT’S TAKING TOO T A K E L O N G , T H E CONTROL D E A D L I N E S WHERE IS THE AREN’T BEING STRATEGY? HIT ANOTHER SHINY NEW OJBECT? WHAT IS YOUR LONG TERM PLAN? THE POWER SHIFT THE MARKET INITIATIVE HAS MOVED FROM MANUFACTURERS TO THE CUSTOMERS. QUESTIONS ASKED… BUT WE CAN’T ANSWER TODAY… WHY DIDN’T THEY MAKE THAT PURCHASE? PRICE, FEATURES, TIMING, CHANNEL PREFERENCE? IS MY MARKETING SPEND INVESTED WISELY? WHAT IS THE PROPENSITY OF MY MOST LOYAL CUSTOMERS? PURCHASING, PRODUCT USAGE HAVE I LOST A CUSTOMER TO A COMPETITOR? WHY? ARE THERE NEW UNTAPPED OR HIDDEN INNOVATIONS THAT CAN LEAD TO NEW PRODUCTS? WHAT STRATEGIES DO I NEED TO USE TO INFLUENCE OUR CUSTOMERS TO BUY MORE DIRECT? HOW CAN KEEP MY RESELLERS HAPPY WHILE ATTRACTING DIRECT CUSTOMERS? WHY ARE WE HERE? WHAT’S POSSIBLE TECHNOLOGY TODAY BUSINESS TODAY CLOSING THE GAP THROUGH DIGITAL TRANSFORMATION FIRST INGREDIENT… BUSINESS & IT WORKING TOGETHER IT + BUSINESS WORKING TOGETHER ADDITIONAL INGREDIENTS INTEGRATED STRATEGY DESIGN FROM SMART MESHING THE “OUTSIDE” TECHNICAL DATA THE OLD WITH IN – CUSTOMER SOLUTIONS NEW FIRST DATA AS A CATALYST REAL WORLD APPLICATION Knowing what questions to ask in the context of your business Data without exploitation and is the key to catalysing automation is a burden. disruptive change STRATEGY PROCESS DATA TECHNOLOGY EXECUTION EXPERIENCE “THE LEVERS” Let data drive the experience – become more targeted and 1 personalized ID WHERE DID WE START? THE KEY IS LEVERAGING OUR GREATEST UNTAPPED ASSET WHERE DID WE START? ESTABLISH A STRONG DATA FOUNDATION 360° VIEW SINGLE VIEW & MULTI–USE 360 VIEW LEVERAGED FOR BOTH DIGITAL MARKETING PLATFORM AND CUSTOMER ENGAGEMENT PLATFORMS C U S T O M E R ENGAGEMENT PLATFORMS DIGITAL MARKETING & BIG DATA PLATFORM CANON DIRECT CANON ACCOUNT CPS COMMUNITY THE LEVERS IN USE BUILDING AN ECO SYSTEM THAT CONTINUALY MOVES THE NEEDLE -PERSONALIZED -TARGETED -CONSOLIDATED -QUESTION -CLEANSED -EXPLORE -STANDARDIZED -HYPOTHESIZE -HARMONIZED -VISUALIZE -MARKET FEEDBACK LOOP -SEGMENT LOTS AND LOTS OF TECHNOLOGY TARGETED WEB & BEHAVIORAL COMPETITIVE INTELLIGENCE & ADVERTISING TRACKING INSIGHTS REAL-TIME PERSONALIZATION SOURCES DATA FOUNDATION AUDIENCE MANAGEMENT, CROSS- CHANNEL ORCHESTATION & CAMPAIGN MANAGEMENT DELIVERY STRATEGY RELEASE