Forrester survey data highlights the urgency for the CIO to complete the mobile mind shift. In the age of the customer, great mobile solutions are the basis for catering to clients, empowering employees, and optimizing supplier and partner relationships. Yet, the mobile mind shift has its roots in the consumer environment. Most of us have gone “mobile native” over the last few years, having grown accustomed to using apps on our smartphones and tablets at home. This has changed the way we think, look for information, communicate with others, and conduct transactions.
Mobile is now a vital part of the CIO’s business technology agenda to help enhance customer experience, employee productivity, and new revenue channels. Every CIO will need to provide his organization with mobile solutions that support these business requirements. The lack of a comprehensive mobile approach with dedicated interdisciplinary teams for mobile and digital initiatives will translate into lower revenues and many business failures in the years ahead. The most visionary and forward-looking CIOs, meanwhile, are using mobile to build the steppingstones for their digital transformation:
Businesses that are most mature in mobile also have the fastest revenue growth rates. Forrester survey data highlights that the most “mobile-mature” organizations also have higher revenue growth rates than the mobile laggards. Mobility is thus an important revenue driver.
The B2B marketing research team has just published its 2016 predictions report, outlining four shifts that B2B marketing professionals can expect by December 31 of next year. This report is aligned with and part of a series of Forrester predictions reports — each discussing the effects on specific roles in a company, but all part of the greater picture: The Age Of The Customer.
B2B buying has changed: Buyers prefer to do research themselves rather than rely on vendors’ sales reps. Our report highlights several major changes coming in 2016 as a result of this shift and organizes their implications into four realms: go-to-customer strategy, the accelerating shift from art to science, tech investments, and B2B messaging. In the report, we explain these changes, with data and research substantiation, and also outline what they mean for B2B marketing professionals. Here are some of the key takeaways:
As funnel becomes life cycle, marketing will need to manage a new dynamic with sales.
Marketing’s role as steward of the customer relationship will surge.
Buyers will expect B2B suppliers to be at the right (digital or physical) place, at the right time.
Big data will help manage sales and marketing activities.
Through-channel marketing will become a critical success factor for many B2B companies.
Adoption of through-channel marketing automation (TCMA) will even affect the success of enterprise marketing automation vendors.
Mobile will become the primary target for all systems.
Holiday spending is of critical importance to retailers. In 2014, Amazon traded one-third of its retail sales in the last three months of the year. And in the UK, 19% of annual retail sales happen in the six-week run-up to Christmas. Consumers spend more online during the holiday period and buy from more retail categories than they do during the rest of the year. Toys, jewelry, perfume, and videos are among the most popular categories bought online.
UK retailers embrace Black Friday and Cyber Monday. The majority of UK retailers participated in Black Friday and Cyber Monday sales in 2014. In fact, nearly one-fifth of all online sales in the eight weeks leading up to December 27, 2014 happened in the week of Black Friday. And for UK retailer John Lewis, its sales in Black Friday week overtook its sales in Christmas week.
At a recent event in Sydney, Telstra, Australia’s incumbent network solutions provider, provided new insights into its strategic activities under its new CEO Andrew Penn. Overall, Telstra’s strategy remains in line with that communicated last year; we suggested then that for European CIOs and technology managers, Telstra represents an attractive network solutions provider for their organizations’ activities in Asia. But Telstra has evolved since then. Discussions with Telstra executives have provided us with new information and have led us to several new observations:
Telstra’s digital strategy is beginning to take shape but remains fragmented. Like many other telcos, Telstra has created a digital division to develop digital retail offerings for SMBs and consumers. In its current shape, this approach carries some risks, as Telstra’s Global Enterprise Services and Software divisions are also pursuing separate digital activities. As a result, duplicate and potentially contradictory digital offerings could emerge. Although Telstra claims that it is coordinating these activities, the current set-up underlines the fact that Telstra doesn’t yet have a digitized strategy; it is instead pursuing several digital strategies. This could cause confusion for customers, inefficiencies for Telstra, and flawed end-to-end customer journey mapping, thus undermining the value that Telstra can deliver to CIOs as a business enabler.
My colleague Michele Pelino and I have just published a major new report, Bridge The Broken Internet Of Things Promise. At its best, the Internet of Things (IoT) -- a catch-all term for technologies that enable objects and infrastructure to interact with monitoring, analytics, and control systems over Internet-style networks -- has the potential to reshape customer experiences.
In the report, we cover the example of Royal Caribbean's Quantum of the Seas, undoubtedly one of the more impressive examples of how IoT and wearables can redefine digital customer experience (DCX) while also employing digital operational excellence (DOX) in service of customers. In one of several DCX examples, Royal Caribbean has made the Quantum a wallet-free zone using wearable bands that act as everything from the key to your quarters to purchases at the bar. For DOX, the Quantum solves a perpetual pain point for both customers and crew: Did a particular piece of luggage make it onboard and, if so, where is it? RFID tagging and a mobile app solve this operational problem nicely. (See Figure for a screen shot of the mobile app).
As we detail in the report, RFID tracking has revolutionzed the check-in process, improving the speed of the process, lowering errors, and giving customers peace-of-mind.
So IoT sounds like a panacea for retailers, hospitality firms, travel vendors, and similar firms -- right?
Poor network infrastructure undermines all digital transformation initiatives. The major technology building blocks affecting digital business are mobility, cloud, big data insights, and social collaboration. Thus, the key contribution to digital ecosystems by telcos is undoubtedly the provisioning of quality connectivity. However, many telcos we speak to have much larger ambitions. Can telcos increase their role in the digital value chain — and if so, how? Several macro-trends have an impact on the potential for telcos in digital ecosystems:
Rising customer sophistication is driving businesses to become more customer-obsessed. Businesses must work with ecosystem partners and vendors to improve customer experiences and drive operational excellence to enhance smart manufacturing, distribution, and supply chains. These operational ecosystems are essential to support the customer in his various life-cycle stages. Ultimately, the future of telcos in the digital context will be decided by their big data, cloud, and service orchestration capabilities.
Poor network infrastructure constitutes a major CIO challenge. CIOs at leading companies must support their organizations to take on the role of major ecosystem hubs with the assistance of mobility, cloud, big data insights, and social collaboration. The value and quality of digital ecosystem membership correlates with the quality of network-based interaction and collaboration solutions.
The big public cloud providers, most of which are still from the United States, sometimes have a hard time finding ways to balance their legal obligations at home with the quite different sensitivities they encounter amongst their new international customers. For a long time, the toolkit has been pretty consistent: site data centres as close to the customer as possible, vehemently support political efforts to harmonize laws, and ocassionally be seen to stand up to the worst execesses of Government over-reach.
(Source: Flickr user Luigi Rosa. Image licensed under Creative Commons Attribution License)
Microsoft's announcements in Germany today appear, on the surface, to follow that model pretty closely. But there's a twist that's potentially very important as we move forward.
First, the standard bit. Microsoft, yesterday, announced new data centres will be operational in the UK next year, joining existing European facilities in Dublin and Amsterdam. Big competitor Amazon did much the same last week, announcing that a new UK data centre will be online in the UK by "2016 or 2017." Given the vague timescales, it might be easy to assume that Amazon was trying to steal a little of Microsoft's thunder with a half-baked pre-announcement. And then, today, Microsoft announced two new data centres in Germany. Amazon already has a facility there, of course.
Few industries are immune from the digitization of experiences, content, services, and products. In this era of cloud computing, IOT and mobile devices, firms are increasingly testing new product offerings that combine elements of content, software, services, and hardware together. Like the evolution of the products themselves, the rulebook on monetizing them is also evolving: firms are replacing the simple one-time sales models of yore with subscription and consumption-based business models that better sustain a continuous relationship with their customers. But unfortunately, in most cases, firms’ existing technology ecosystem doesn’t support the complex requirements of supporting a subscription business model- from customer lifecycle management to finance management. Enter: subscription billing platforms.
Forrester has identified the eight leading vendors in the space and spent the last four months putting them through a grueling process of due diligence, product demos, capability assessments and customer reference checks. Here’s what we found.
■ Aria Systems, SAP hybris billing, and Zuora lead the pack. These three vendors represent thought leadership and the associated market innovation. All three commonly go head-to-head in opportunities at both midmarket and enterprise firms and in both B2C and B2B monetization scenarios. Each of the three has developed core industry vertical expertise in sectors such as IOT, healthcare, and telco and has established mature partnerships with global management consultancy and system integration firms.
We’ve all been told time again that the in-store shopping experience is undergoing seismic change. Technologies such as beacons, omnichannel fulfillment and in-store analytics have promised to change the definition of how a retail store engages with customers. And although iron-clad digital store success stories are few and far between, stores will continue to chase the digital store dream despite not knowing the precise endgame. A handful of market leaders are implementing digital store initiatives that will act as lighthouses to the rest of the industry, showing a glimpse of what's possible with the right strategy.
In 2016, Forrester believes that:
Digital operational improvements will emerge as the golden child of store digitization. Trying to engage shoppers with shiny new technologies makes for some pretty flashy headlines, but does little to boost the retailer’s bottom line. On the other hand, store operations-focused technologies have shown early, but real, results. Tools such as in-store analytics and associate task management are ushering in a new era of store efficiency, using real-time insights to help associates understand what needs to get done and when. The smartest retailers will start combining data from sources like online behavior, in-store analytics, supply chain, and labor planning to make operational decisions in real time.
In 2015, customer experience (CX) rose to the No. 1 priority for business and technology leaders. In 2016, it will be among the top 10 critical success factors determining who will win and who will fail in the age of the customer. And for good reason: Better customer experience correlates with stronger revenue growth. But this is only true when competitors provide meaningful differences in the experiences they offer and unsatisfied customers have the freedom to jump ship when treated poorly. So in order to reap the benefits that better CX can provide, in 2016, companies will need to get down to the real business of not only providing good experiences but also breaking away from the pack with meaningful internal operational changes.
This won’t be easy, because success in the age of the customer requires shifting to a customer-obsessed operating model that puts customers at the center of all strategic decision-making. In 2016, leaders will tackle the challenge of making this shift; laggards will underestimate the magnitude and speed of change required and will instead push forward with uncoordinated digital efforts and flawed business priorities.