Everyone Needs To Digitize Their Business — But Not Every Business Knows What To Do

Clement Teo

Every business must transform into a digital business. Digital businesses continuously exploit digital technologies to create new sources of value for their customers and increase their operational agility to serve those customers. In Asia Pacific, CIOs have had limited success in driving digital business transformation. Organizations taking an early lead in transforming their business include Commonwealth Bank of Australia, China’s Ping An Insurance Group, and DBS Bank in Singapore.

A true digital business needs to integrate two sides of a digital strategy: digital customer experience and digital operational excellence. My colleague Nigel Fenwick has written extensively on the topic; this infographic, for example, sums up our thinking. Becoming a truly digital business requires a radical overhaul of organizational structures, technologies, measurement frameworks, and operating models. And it’s ongoing.

The organizations coping best with digital disruption are creating:

  • A digital strategy as a defense mechanism against disruption. The pace of consumer change poses the biggest threat to any traditional businesses that have yet to experience the impact of digital disruption, regardless of whether they’re in the telecommunications, media and entertainment, transportation and travel, or other industry. For example, Australia Post has set up a A$2 billion kitty to aggressively pursue a digital strategy to tap into new revenue sources, including building a new center for the digital delivery of mobile and online products and services.
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Digital Transformation Is Changing The Market For Consulting - Observations About Internal Cultural Transformation At PWC

Dan Bieler

Professional services firms must go through their own digital transformation before they can truly help their customers. In this comment we highlight some observations we made during a recent analyst event of one of the leading global professional services firms PWC.

Digital strategies will not translate into sustainable business models for the digital age

PWC is right to state that customers do not need digital strategies. Instead, they need support to prepare themselves for the digital age. But digital transformation projects are not so much about technology as about redesigning business models and changing the style of doing business. Hence, successful CIOs recognize that:

  • Cultural transformation is the main challenge for digital transformation. Digital businesses map out customer journeys and ensure that products turn into plug-ins for broader digital propositions. These propositions are connected through data, communities, and collaboration. This allows the business to understand who the customers are and how they use products. It’s easier to implement technology innovations than to change habits and culture. Technology is only the catalyst for cultural and organizational transformation. The transition of Philips towards a vendor of digital propositions is a case in point.
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Planning Your Big Data Strategy: Five Keys To Success

Martha Bennett

To compete in the age of the customer, it’s essential to make the most of the data you have access to, whether it’s from internal or external sources. For most organizations, this implies a need to review and challenge existing approaches to how they capture, process, and use data to support decision-making. But it’s important first of all to move beyond a technology-centric view of big data. This is why at Forrester, we define big data as:

The practices and technologies that close the gap between the data available and the ability to turn that data into business insight.

Moving beyond a technology-centric view doesn’t mean, however, that a bottom-up, technology-led approach to big data strategy won’t work. After all, it’s often the case that business executives can’t see the potential of a technology until they’ve seen it in action. A bottom-up approach also provides the opportunity to acquire technical skills, and gain an understanding of what needs to be done to integrate new technologies with existing systems (even if it’s just at the level of getting the data out – often easier said than done). But a pilot project or proof-of-concept demonstrating the “art of the possible” in a business context is different from implementing a Hadoop cluster and expecting the business side to start asking for projects.

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Watch Out! Networking Professionals Can Be Fired For Buying The Market Leader

Andre Kindness

The recent business articles about customers screaming for change, such as Bloomberg’s recently published article about Goldman Sachs’ CIO threatening Cisco, conjures up images of Dee Snider busting through the wall and screaming, “OH, WE'RE NOT GONNA TAKE IT ANYMORE! WE'VE GOT THE RIGHT TO CHOOSE, AND THERE AIN'T NO WAY WE'LL LOSE IT! THIS IS OUR LIFE.” Connecting customers, employees, and business resources has become a life-or-death element for businesses (see The Enterprise Network Enables Business Innovation).

Am I being overly dramatic? I would like you to name a technology that the entire market openly voiced their displeasure about and forced a market leader to come up with a new strategy like Cisco’s Application Centric Infrastructure. Sure, the market has gone through transitions like the movement from fat access points to controller-based access points and the implementation of server virtualization, but the difference between those transitions and the current one is that these technologies were created before customers demanded them.

Now we have customers defining what they want before the technology exists or even creating their solutions, such as:

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The Data Digest: The Future Of Mobile Digital Wallet Technology In The UK

Anjali Lai

By Kristopher Arcand

It’s no secret that mobile digital wallet technology is faring better in the US than in the UK; here in Boston, I use my LevelUp app at more than half of the retailers I visit (the app tells me I’ve visited one vendor 122 times!). However, only a few providers — including PayPal InStoreV.me by Visa, and Paydiant — are serving UK consumers. (Will Amazon be next?)

To understand the popularity gap for mobile digital wallet technology between the US and the UK, Forrester leveraged its Technographics® 360 research approach to get a holistic view of consumers. By analyzing data from our European Technographics Retail Survey, 2013, UK ConsumerVoices Market Research Online Community, and UK Consumer Technographics Behavioral Study, November 2013 to March 2014, we evaluated desired features, strongest barriers, and current behavior associated with mobile digital wallet usage across UK consumers. 

Our data shows that security is still a major concern among UK consumers, but the features they want in a mobile digital wallet are associated with an improved customer experience: These features make the purchase process more organized and convenient for customers, while also helping them save money along the way:

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Video Recap: Forrester’s Customer Experience Forum East 2014, Day One

Harley Manning

How did it get to be August already?

Admittedly, going away for two weeks of vacation in July hit my fast forward button. But even so, memories of our Customer Experience Forum East in New York in June are still fresh in my mind.

If you were also at CX East, here’s a reminder of what happened on Day One. And if you weren’t there, here’s a preview of the types of things you’ll see at our Customer Experience West in Anaheim on 11/6 – 11/7, and our Customer Experience Forum EMEA in London on 11/17 – 11/18.

Opening Remarks

Before the event we surveyed our attendees. That let me open the forum by summarizing their challenge: Although their executives’ high aspirations for customer experience do them credit, their success to date lags far behind their goals. 

 

Megan Burns, Vice President and Principal Analyst, Forrester

Megan showed the surprising findings of a recent study on what drives a customer experience that results in customer loyalty. Guess what? For customers of most industries, emotions matter more – often far more – than whether a brand met their needs or he level of effort needed to get their needs met. 

 

Stephen Cannon, President and CEO, Mercedes-Benz, USA

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Manhattan Associates Acquires GlobalBay: Legacy POS gets another competitor

Adam Silverman

 

Yesterday Manhattan Associates announced the acquisition of mobile point of service (mPOS) provider GlobalBay Technologies.  A few years ago, it might seem odd that a warehouse and order management company would be interested in playing a significant role in the experience of customers and associates on the sales floor. However as we recently covered in our Omnichannel Order Management Wave, the role of distributed order management has been elevated and is now key to meeting customer’s rising expectations. Along with orchestrating orders across all inventory locations, omnichannel order management systems (OMS) are already taking orders in the call center, handling fraud management, and providing mobile utilities for associates to fulfill orders from stores. Moving into the point of service (POS) space with an mPOS solution is a logical evolution for Manhattan Associates since it combines enterprise inventory visibility, order management, and order capture all under one roof. In addition this acquisition provides a stronger differentiator from their largest competitor IBM, who exited the legacy POS market in 2012.

So what does this mean for POS moving forward?  Three distinct solutions are now possible, including:

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A Customer Syllabus

Stride for stride with Forrester, others have been doing excellent work describing the emergence of the empowered customer. Here's a very short list of notables:

1) Gavin Newsom, the Lieutenant Governor of California,  describes how empowered customers (citizens in this context) will change society when they flex their newfound muscles in the political arena. Citizenville shows how the populace's power will not be restricted to the commercial world.

2) Jim Blasingame has written a prescient book describing how the age of the customer will impact small businesses and what they should be doing to prepare for those changes. Here's a great quote from Jim:  "It's okay to fall in love with what you do, but it's not okay to fall in love with how you do it."

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Exploring Costa Rica: Progress And Challenges In Digital Government Transformation

Jennifer Belissent, Ph.D.

Vacations are over – or at least mine is – but I’ve brought home some of mine for homework.  Yes, I did a little work while on vacation. While in Costa Rica this summer, I had the opportunity to meet with the country’s Director of Digital Government, Alicia Avendaño Rivera. 

Governments worldwide recognize the power of “going digital.” The recently announced US Digital Service and the appointment of its dedicated Administrator illustrate a commitment on the part of the US Federal government.  Yet the US is merely joining others who have made similar commitments to transforming government with a focus on efficiency, effectiveness, transparency and empowering citizens and businesses through new digital technologies.  Alicia Avendaño has served as Costa Rica’s Director of Digital Government since 2009.

Costa Rica Digital Government initiatives address four main goals:

  • G2C: Government to Citizen – citizen oriented services
  • G2B Government to Business – rapid and transparent business services
  • G2G: Government to Government – efficient and interconnected services
  • Infrastructure – favorable ICT infrastructure and legal framework
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Chinese eCommerce Giant JD.com Develops Its Territory Further

Vanessa Zeng

JD.com is the second largest B2C online retailer in China. Through 10 years of development, it has become the largest direct sales eCommerce company in China. It now has 46% of the total direct sales eCommerce market share and 47.4 million active users. Further cementing its market-leading position, JD.com successfully listed on Nasdaq in May 2014, with a market value of US$39.3 billion by August 12.

In the past few years, JD.com has made enormous investments in its logistics service to provide fast delivery and a competitive customer experience, including same-day delivery and half-day delivery in selected top tier cities. Recently, it launched a pilot project of mobile self-pickup van in Beijing and Chengdu, giving its delivery service more extensive coverage. When consumers shop on JD.com, they can choose the “self-pickup” option, select their location, and then choose the new “mobile self-pickup” option. By clicking the map under this option, shoppers can see the detailed location and operating time of the mobile self-pickup van. 

Figure 1: JD.com’s mobile self-pickup van

The mobile self-pickup van meets the needs of customers who can’t receive their goods at home or at a place of work, such as a factory district or school campus, which the delivery service can’t enter. This service gives customers more choices.

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