Empowering a central team to set digital strategy, provide common platforms, and provide specialist resources can help business units develop their digital maturity by embracing a set of common standards while still tailoring their customer experience to their specific market needs. Yet many central teams run into difficulty. They fail to clearly communicate their purpose and remit, they struggle to navigate the realities of corporate politics, and they forget to demonstrate their successes through clear metrics. CIOs looking to accelerate their firm's digital journey by building a digital acceleration team should first assess their organization's readiness and appetite (see Figure).
Nokia and Alcatel-Lucent have entered into a memorandum of understanding under which Nokia will make an offer for Alcatel-Lucent in an all-share transaction. The deal values Alcatel-Lucent at €15.6 billion: Alcatel-Lucent shareholders will own 33.5%, with Nokia shareholders owning 66.5%.
Is this a “marriage of desperation” or two network solution vendors coming together to work on a broader vision for an increasingly connected world? The combination of two relatively small network solutions vendors won’t automatically translate into the formation of a new network solutions powerhouse. Most importantly, will the new Nokia truly differ from its main rivals Huawei and Ericsson as an end-to-end carrier network solution provider? Nokia’s competitors will not only face a larger new competitor but also experience the formation of a different one. This deal will mean that:
Nokia joins the small club of converged network solutions vendors. Customers expect experiences that support multiple screens and applications; equipment vendors must deliver solutions for the Internet of Things (IoT) and industrial Internet requirements by offering next-generation network technology and services. Nokia can’t cater to this market demand alone.
Nokia rejoins the premier league of network solutions providers. The deal means that Nokia’s total pro-forma 2014 revenues will more than double to €25.9 billion. The new Nokia will be the second-largest provider of carrier-grade telecoms networking solutions, with revenues in this segment of €25.0 billion, just behind Ericsson (€25.1 billion) but ahead of Huawei (€23.5 billion). With its newfound size, Nokia will gain access to scale benefits.
The global mobile revolution is still in its early stages! Forrester forecasts that there will be nearly 3.5 billion individual smartphone users among more than 5 billion individual mobile subscribers by 2019. Mobile will clearly be the new battleground where you must win, serve, and retain your customers globally. Mobile is no longer simply a digital channel; it is an opportunity to transform customer experiences and to invent new businesses. It will be the hub of new connected experiences in mature economies but the ultimate “converged” medium in emerging ones.
To move away from simply shrinking and squeezing their desktop PC websites and ads onto mobile, many B2C marketers have embraced the notion of “mobile-first”. They are starting to design websites and marketing campaigns with mobile in mind instead of simply retrofitting their approach to mobile. More often than not, mobile-first still implies that you consider mobile as channel. While you must design with mobile in mind and adapt your content to smaller screens, this approach won’t be enough to fully address the upcoming global mobile revolution.
Marketers must now leverage mobile to transform their customer experience and to act as a catalyst for business disruption.
■ B2C Marketers must transform the overall experience to win in customers’ mobile moments . . .Marketers must stop thinking about mobile as a goal or a strategy and start thinking about how it can help them achieve their overall marketing and business objectives. Only 14% of the companies we surveyed have started down this path, and only 4% of them have allocated the resources, budget, and organization needed to undergo their own mobile mind shift. Those that are investing in the mobile mind shift are pulling ahead.
It’s impossible to have great customer experiencewithout digital transformation in the age of the customer. Most of us think first about the front-end experience when challenged with improving digital customer experience. We naturally gravitate toward the direct human interface: web features and functionality, design, native mobile apps vs mobile web and more. This is the glitz of digital customer experience and there is no relaxing here—your competitors and peers continue to raise the bar.
Look at online retailers for example. Companies like Amazon and Etsy scored high on our Customer Experience Index, and both have done so being customer obsessed--not only in their behaviors but in the digital experience they deliver.
But that’s Amazon and Etsy, both digital-only brands you’d expect are creating great digital customer experiences. How about a company you wouldn’t necessarily expect? Take Grainger, a B2B seller of construction and maintenance products, that is driving significant company growth through digital success.In 2014, ecommerce made up 36% of the its revenue and accounted for nearly all of its sales growth.Over the past couple of years, it has invested in the front- and back-end: it launched a new website and mobile app while expanding its products online over 1.2 million and constructing a one-million square foot distribution center in Illinois. Grainger’s revenue and profit growth are the direct result of new, preferable digitally-based customer experiences rooted in operational excellence.
There’s a particle accelerator in the basement of one of the most celebrated art museums in the world — the Louvre. It's a piece of technology in the most unlikely of places that produces helium and nitrogen beams from a single source to reveal layers of work that are invisible to the human eye.
Why would the Louvre have invested in and put such unconventional technology to work? The better question is, “Why not?” Rather than go on a competitive hunt for more masterpieces, the Louvre devised a strategy to make the most of the assets it had. Staff members were determined to put themselves in the mind of the masters, to think outside in, and to imagine how their artists might have used their precious (and difficult-to-come-by) canvases in more ways than one. Could they discover new treasures that would fuel the Louvre’s leadership in the art world?
Putting its strategy to the test, the Louvre used the accelerator to undercover five lost images from the masterpieces of famous artists from Picasso to van Gogh. The device revealed several layers of images that had been painted over in the final version of the painting. No one knew they were there. By putting an unconventional artist-centric strategy in place, the Louvre harnessed its greatest assets. It armed that strategy with the right technology and a scientific approach to uncover the hidden story that lay beneath the surface of a painting.
In the same way, it’s time for CMOs to lead the transformation of their firm's strategic planning process to an outside-in perspective focused on the customer.
Mandates for better federal customer experience (CX) have been piling up for more than 20 years. The trend began way back in 1993, when Executive Order No. 12862 required federal agencies to create basic CX standards. The strongest and most recent mandate is last year’s “customer service” cross-agency priority goal, which requires federal agencies to provide the public with experiences “comparable to [those] they receive from leading private sector organizations.”
That’s a tall order, especially since federal CX is so bad. Despite these two decades of mandates, federal agencies earned an average rank of “very poor” on Forrester’s CX Index™ — the lowest ranking of all of the industries we rated. Even the Department of Veterans Affairs (VA), the highest-rated federal agency, was still among the very-lowest-ranked organizations in any industry.
But why does that matter? After all, government agencies usually have no competitors, so there’s no pressure to get and keep customers. The basic market motivation just isn’t there.
My research has revealed a host of reasons why federal agencies must improve their CX, despite not having to worry about market factors. Here are the top four reasons I’ve uncovered:
I just concluded six months of research looking at how firms plan strategy in the age of the customer. Perhaps unsurprisingly, I concluded that companies that fail to adapt to increasingly powerful customers, and disruptive competition, will not simply face near-term disruption — they risk their long-term viability.
I also found evidence of firms making changes in how they plan business strategy. High-performing companies look at strategic planning as a continuous process with a focus on customer value and loyalty.
In my latest report on strategy, I identify new responsibilities for CIOs, CMOs, and business-unit leaders in strategic planning. The report focuses on three ways CIOs and CMOs must step up and serve as a shaper of customer-obsessed business strategy that generates greater loyalty and drives better performance.
To succeed in the future, CIOs need to collaborate effectively with peers across the C-suite, especially the CMO and business-unit leaders, to build strategies and a shared business technology agenda, focused on customer outcomes.
Here are four tips from the research:
1. It's time to separate strategic planning from the annual budget cycle. Annual strategic plans hold firms back from quickly reacting to fast-evolving markets. While strategies must be funded, continuous test-and-learn approaches will more quickly reveal opportunities and weaknesses.
The relentless winter in Boston has finally come to an end! Encouraged by the lukewarm temperatures and sight of grass (which we haven’t seen here in months), I set my sights on a new pair of running shoes. Now, where to begin? I can get suggestions from my coworkers, peruse user reviews on my phone on the bus ride home, actually touch and feel the product in person at a sports shop nearby, watch video ads at home on my tablet . . . the list goes on.
The rise in the adoption of mobile devices has made the consumer purchase journey — which already involves multiple channels, devices, and interaction points — even more complex and fragmented. To help professionals understand how and why consumers use mobile devices along the multistep purchase path, we used Forrester’s Technographics® 360 methodology, which combines behavioral tracking data, online survey data, and market research online community responses. We found that:
Almost two-thirds of consumers still use traditional methods to first learn about products —offline sources commonly provide the first impression.
Smartphones enable customers to source pre-purchase product information right from the palm of their hand, but few actually make the purchase using a mobile device
Mobile devices give consumers flexibility if they choose to engage with a brand or retailer post-purchase —from email and text messages to online communities and social networks.
Have you ever sent money abroad and been shocked by the amount the recipient is left with? Why can’t you ever get anything close to the exchange rates advertised on the likes of xe.com?
As a customer, transferring money internationally is often a costly experience. Despite claims of no fees, the exchange rate spreads are often significant. That’s where P2P currency exchange comes in.
Startups such as CurrencyFair, Kantox, Midpoint and TransferWise hope to solve this problem by using the power of peer-to-peer networks to match customers, both individuals and small business, with one another to significantly reduce the cost of currency exchange.
By matching currency orders travelling in opposite directions, these platforms remove the need for money ever having to cross borders, thus avoiding costly international transfer fees. Thanks to low overheads, they also offer exchange rates at (or very close to) the midmarket rate that you see on xe.com. As you can see from Midpoint’s calculator below, the savings can be substantial.
If you’re interested in finding out more about this emerging sector - one that has been backed by the likes of Peter Thiel, Richard Branson, and Andreessen Horowitz - you can read mine and Oliwia’s new report here. The report, the latest in our ongoing series about digital disruption in retail financial services, answers the following questions:
Forrester forecasts that 1 million US B2B salespeople will lose their jobs to self-service eCommerce by the year 2020. B2B buyers now favor do-it-yourself online options for researching and buying products and services, and they are demanding that B2B sellers fully enable those digital paths to purchase.
Yet too many of today’s B2B companies still insist that B2B buyers interact with sales reps in order to complete a purchase. For a minority of customers who are buying complex and expensive products and services, talking to a sales rep can be a value-added experience. But for the majority of B2B buyers who are self-educating online about products and services, or who already know what they want, the diversion is inconvenient and unwelcome.
B2B companies that want to stay ahead of the curve must reshape their channel sales strategies and fundamentally rethink the role of their salespeople by:
Expanding the role of self-service eCommerce. The evidence is clear. Nearly 75% of B2B buyers now say that buying from a website is more convenient than buying from a sales representative. Further, 93% say that they prefer buying online rather than from a salesperson when they’ve decided what to buy. B2B companies that wait too long to create self-serve eCommerce websites risk losing share to pure plays and omnichannel competitors.