Digitalization is one subject that has caught the attention of industry leaders who aim to create a digital-first business strategy to reach their business objectives. Rightly so because according to the International Data Corporation (IDC), 65% of the world’s GDP is predicted to be digitized by 2022.
Many questions surround this topic of digital transformation and some of them were answered by our COO, Hisham Shehabi, at the recently hosted European Sport Platform and CHAMP project conference organized by the European Sports NGO (ENGSO) with support from the Lithuanian Sports University and Lithuanian Union of Sports Federations. The three-day event focused on sharing insights on the field of sports innovation, digitalization and modernization of the sports industry. Watch the CHAMP conference here.
Throughout this article we will cover three main topics:
- Effect of the changing digital landscape
- Owning Digital & Data
- Transformation on a budget
Effect of the changing digital landscape
There is no doubt that technology has brought a disruptive change in the lives of many. But, the last ten years have seen massive changes in how technology has affected day-to-day operations, especially in sports. There are several trends that are converging to create a continuously disruptive reality for all sports stakeholders:
1. How technology has been democratized and the access to the internet at low costs have allowed entrepreneurs to develop high-end technologies, handle large amounts of data using the cloud, and create new mobile applications that automate daily operations using small sensors and biometrics. Leaders like Elon Musk aim to further add to this democratization through the Starlink project and add four billion more users who currently cannot access the internet.
2. How easy access to the internet and improved connectivity has led to entrepreneurial growth and the number of accelerator programs, venture capital arms, and startup fundings have seen a significant rise. The number of companies having a valuation of more than a billion dollars has increased exponentially in the last ten years. Customer support and software development has never been easier. Costs of office infrastructure eradicated by COVID’s work from home adapted models.
3. How consumer habits have changed due to the omnipresent content available on multiple screens in our daily lives. E-commerce has reduced the buying journey to a mere click and expectations have increased. It is now expected by fans of sports teams to buy their products in a similar fashion. Social media has provided platforms to everyone and anyone to easily create content on the go and become influencers. Virtual reality has brought new opportunities with metaverse already incorporated by brands like NFL to sell their jerseys on a virtual store.
4. How new stakeholders have entered the sports landscape like big tech companies, startups and entrepreneurs who are better prepared than the traditional stakeholders and have figured out the solutions to the pain points of the industry. Investment from private equities and individual investors has seen an increase in the last ten years. Former athletes like Iker Casillas have created accelerator programs to invest & use their position to push innovation.
Owning Digital & Data
There is a path ahead for sports stakeholders through digitalization but, in order to shape the path, one must understand the initiation and readiness of the organization on the digital front. Most sports organizations have large amounts of data flowing into the organization and it is important to use that data to the organization’s advantage. Some questions that need to be answered are: Am I the owner of my member’s data? Who has access to my member’s data? Have I integrated the data points centrally? How can I analyze my data to extract insights? Who’s in charge of this?
The digital transformation process must start by answering these questions in collaboration with the responsible people of the organization. With time, a plan must be developed to create a data flow map that outlines the sources of your data and integrate them into your ecosystem centrally. This data can then be further used to extract insights. A fan that bought a ticket for a match of his favorite club can be later targeted through online campaigns to sell him a team jersey on the e-commerce website. Appointing a person who can take control of budget planning, tracking KPIs, and opening conversations with external ecosystems can help organizations control their data flow efficiently.
How data is stored within the organization highly depends on how fans interact with your external interface. It can be a mobile application, a website, or an OTT platform where fans leave breadcrumbs that allow applications to track their journey and source of acquisition. Therefore, the fan journey should be carefully studied & mapped before the development phase of a product. Within the fan journey, organizations can target them at different points with relevant content that leads to action. It is important to keep the content updated to the fan’s interests and communicate using their languages. Brands and sponsors can also jump in at these opportunities to introduce their products and be part of the fan journey. This way of monetization creates more value for both parties without interfering with the fan experience.
Digital transformation on a budget
There is a presumption that digital transformation can only be implemented by organizations with high budgets but it is not the case. It is not only about finances but also the leader’s readiness to approach the bigger timeline. Planning beforehand and allocating resources to the budget cycles accordingly will help in a smooth transition. It is important to be smart with your resources and follow certain do’s and don’ts.
Working with experts in digital transformation will allow the organization to be prepared for most of the challenges. Designating a lead to the project who can oversee all operations will help track the progress and eventually take over the digital portfolio. A person who can channel conversations internally and communicate with the external tech-savvy stakeholders for the correct implementation. It is also important to design KPIs that focus on specific objectives that are not just related to huge ROI. For example, a newsletter must have KPIs around click-through rates or website visits. These KPIs can be experimented initially by allotting timely planned resources like instead of social media campaigns running for months, the marketing department could run smaller campaigns with A/B testing. This can only be achieved through instilling a culture of experimentation within the organization.
“You don’t need to be the expert but you need to have the language to speak to the expert.” – Hisham Shehabi, COO of N3XT Sports.
It is also important to not exaggerate the transformation by custom developments and create complex processes for IT that are difficult to achieve in the designated timeline. Transformation should be planned by adhering to the organization’s respective needs and available resources. Organizations should also make sure that they are not disrupting the fan experience journey by installing the latest tech and getting into long-term deals for financial benefits. It is important to avoid these mishaps and be aware of the digital objectives of the organization. Through the CHAMP project, ENGSO and partners are offering a free of charge online course about ‘How to manage a modern sport club’ to guide sports organizations on their transformation and modernization.
Our team of experts can help your organization take its first steps towards digital transformation and accompany you along the whole journey, from end to end. Start your journey by filling out the form below!