Digital transformation has become a necessary enabler of success and brings tangible results when driven strategically and in alignment with a corporate strategy. Within the sports industry, as in other industries, these results need to show up quickly to build momentum and continuous investment by the leadership of organizations.
Within the Olympic Movement, the topic is still nascent, and while decision-makers know it is the right way forward, they continuously ask themselves “Where should I start?” or “Where should I invest my next dollar or euro on digital transformation?”
This was the departure point for our client. An Olympic International Federation commissioned N3XT Sports to accelerate its digital transformation in the upcoming quadrennial. To do so, the project focused on an inside-out approach to transformation, by first focusing on the International Federation itself, before extending the digital, data & innovation services to its National Federations, Local Organizing Committees, and other stakeholders. Read on to learn more about digital transformation in the Olympic Movement, to better understand the steps involved, and let us know if your organization would benefit from this approach.
Phase 1: Digital Readiness Assessment
To assess the digital readiness of our client and have an objective 360° view of their existing digital and data context we conducted in-depth interviews with key staff from the entire organization — from digital, marketing, commercial, ticketing, IT, operations and the executive leadership team. We looked at things from the operational side of the business such as the structure of the data, use of 3rd party data, ownership of the data, and how it flows and is used by the IF’s departments. We also deep-dived into the fan- and partner-facing digital & data products, such as web, streaming, social media, analytics, to determine the existing technology tools, services and infrastructure (commonly referred to as the “tech stack”).
After conducting these interviews, we reviewed all the documentation related to the data & digital assets, such as contracts, technology specifications, user manuals, and licenses. A personalized report about the current digital & data architecture of the organization was delivered to our client with a benchmark against a number of sports organizations that have invested in their digital transformation in the past years.
The personalized report was delivered to the IF’s leadership, as well as the marketing and IT teams. During this step, we expanded the presentation and knowledge sharing to include macro trends in the sports industry around digital transformation, emerging business models & new stakeholders entering the sports industry.
Phase 2: Digital Strategy
The next step of the process was to develop a detailed digital transformation & innovation strategy that was aligned with the ongoing corporate strategic planning exercise. In the past two years, it has become common amongst IFs and Olympic organizations to conduct these two exercises in parallel to ensure alignment of digital transformation across the entity’s administration, business & sports operations.
The digital strategy identified a clear vision and mission on how digital & innovation can accelerate the achievement of corporate objectives. It outlined key areas such as commercialization, fan engagement, optimized technology spending, transparent communications and project management, as well as the creation of a member-based approach that serves the IF’s stakeholders in the areas of digital, data & innovation.
The high-level strategy was then followed up by a 3-year roadmap of implementation that first identified the future-state digital & data architecture that must be reached. The roadmap was based on an agile development approach, rapid deployment of solutions, and a microservices approach that favored the IF’s own digital & data ecosystem and integration of best-in-class 3rd party solutions. This made it possible to estimate the budgets needed for the digital transformation process. At this point, we co-created a governance & decision making structure that took into account the different stakeholders involved, including commercial & technological partners, and the KPIs that would be tracked throughout the process.
The next step of the strategy phase was to develop a business case for digital transformation that looked at the costs and revenue streams. From the costs side, we looked at the types of platforms that would be used, their lifetime costs, how they fit in with the future digital & data architecture. This also included personnel costs, use of external contractors, vendors and suppliers. On the revenue side, we looked at new sponsorship assets, engagement and conversion of audiences, e-commerce, ticketing, content subscriptions, and looked at how it could refresh the commercial portfolio of the IF.
Equipped with this digital & innovation strategy, the IF’s leadership team was able to justify a multi-million dollar investment for its transformation that was aligned with its own corporate objectives.
The project was delivered remotely in a 3-month period by the N3XT Sports team.
The outcome of this was the empowerment of the IF’s leadership and management directors with:
- A 360-degree view of their digital readiness level across all aspects of the IF
- A 3-year strategy and roadmap to achieving digital transformation
- An operational & financial plan for implementation
YOUR SPORTS ORGANIZATION SHOULD START ITS DIGITAL TRANSFORMATION JOURNEY NOW IN ORDER TO REMAIN RELEVANT IN THE FUTURE
¨Now is the right time to prioritize digital transformation within sports organizations. More specifically, it means delivering on digital while also transforming into a digital organization. You can clearly see the organizations within the sports industry and beyond that have already invested in their digital foundation. They are able to produce new content, personalize it, and deliver value to commercial partners, and generate new revenue streams.¨ – Mounir Zok, CEO of N3XT Sports
Success stories like this one are becoming more and more common, and yours should be one of them. With understanding and commitment from your organization’s leadership team, the proper culture within your organization, and a clear vision of the corporate strategy, you can start your digital transformation journey.
In doing so, you will build a proper digital and data foundation in place to stay relevant and rapidly adapt to any unprecedented circumstances.
Thinking about embarking on your digital transformation journey? Fill out this form and we will reach out to you as soon as possible.