Once a month, my co-research director and partner in crime, Chris McClean, and I will use our blog to highlight one of the 26 people who collaborate to deliver our team’s research and services and always make Chris and I look really, really good. Each “Analyst Spotlight” includes an informational podcast and an offbeat interview with the analyst. This month’s Analyst Spotlight features our newest analyst, Martin Whitworth. Based in London and bringing experience as a CISO and Head of Security across several industries, Martin will cover the most pressing issues keeping CISOs reaching for another bourbon on the rocks, including security strategy, maturity, skills and staffing, business alignment, and everyone’s favorite pastime, reporting to the board.
Prior to joining Forrester, Martin served as CISO and senior security leader for a number of blue chip organizations, including Coventry Building Society, Steria Group, UK Payments Council, British Energy/EDF Nuclear Generation, and GMAC. In these roles, he developed and executed a variety of security strategies and programs, and he has extensive experience successfully engaging business and board-level stakeholders. He also has considerable experience as a trusted advisor to security leader peers in the public and private sectors internationally, as well as advising standards and regulatory bodies.
Several Forrester analysts attended Huawei’s 12th global analyst summit in Shenzhen recently. This post will focus on the perspective of European CIOs; in our view, they should take note of Huawei due to the firm’s growing strength in the European enterprise segment. For Forrester’s global perspective on the event, please refer to our upcoming report. For European CIOs, the main takeaways of the analyst summit are that Huawei is:
Strengthening its financial performance. Huawei’s enterprise divisions — which the firm just announced in 2011 — impresses with its strong growth rates. Huawei grew its enterprise activities by 27% to $3.1 billion in 2014; two-thirds of that growth came from outside China, with Europe accounting for the largest share of that. Huawei’s goal is to grow its enterprise business to $10 billion by 2019. Outside of China — which still accounts for 38% of Huawei’s revenues — EMEA will continue to play a critical role for Huawei, as it accounts for 35% of revenues. In EMEA, Huawei reported revenue growth of 20%.
Upcoming changes to privacy regulation in the EU as well as rising business awareness that effective data privacy means competitive differentiation in the market makes privacy a business priority today. And this is not only relevant for tech giants: protecting both customer and employee privacy is a business priority for companies of all sizes and across industries.
But where do you start? Many companies start by hiring a chief privacy officer. Some have built brand-new privacy teams that manage privacy for the whole firm, while others prefer a decentralized model where responsibilities are shared across teams. What are the pros and cons of each approach? Which organizational structure would better meet the needs of your firm?
And when your privacy organization is in place, how do you establish smooth collaboration with other teams like marketing and digital, for example? Too often we hear that privacy teams do not have the visibility that they need into the data-driven initiatives happening within the company. When this happens, privacy organizations are less effective and the business risks failing its customers, undermining their expectation for privacy.
The 2015 Super Bowl had 114 million viewers – making it the most watched television event in US history according to Nielson data. Forrester used its Technographics 360 approach, which combines multiple data sources, to understand how consumers used their smartphones on the big day.
Forrester tracked the smartphone behavior of 879 US online smartphone owners (18+) during the dates surrounding the Super Bowl as well as on the day itself. To better understand these mobile behaviors and add further context, Forrester engaged a group of 157 US participants (18+) in our ConsumerVoices online community. Finally, to capture the nature of public conversation overall, we leveraged social listening to explore topics and sentiment throughout the day across US consumers’ social media posts.
Think about the last time you went through airport security. Or applied for federal benefits. Or paid your taxes.
How did those experiences make you feel? What specific emotions did they invoke in you? Did you feel comforted, hopeful, and valued — or insulted, frustrated, and nervous?
Questions like these are the most important things for federal customer experience (CX) professionals to ask themselves, and our CX Index™ proves it. As my colleague Megan Burns writes in her new CX Index report, “Emotion is the biggest lever you have to pull” to improve CX. In fact, organizations at the top of the CX Index elicited positive emotions about 20 times as often as orgs at the bottom of the Index.
Every customer experience has three dimensions, called the “three E's” of CX: effectiveness, ease, and emotion. Our research shows that the emotions a customer experience elicits influence the quality of the experience more than ease and effectiveness in practically every industry — including government.
CMOs today are increasingly asked to help their firms adapt to increasingly powerful customers. Those who fail to do this risk affecting their company’s long-term viability. To cope, CMOs must lead the transformation of their firm’s strategic planning process to an outside-in perspective focused on the customer. High-performing companies have learned that as customer behavior adapts, so must their business strategy — and have moved from a yearly strategy exercise to a continuous process with a focus on customer value and loyalty. To succeed, CMOs must effectively harness outside-in intelligence and simultaneously collaborate with key C-suite peers to build unified strategies and a shared business technology agenda to win, serve, and retain customers.
In our view, CMOs have a new weapon in their marketing arsenal to achieve this goal: the digital command center. Digital command centers are intelligent nerve centers that let brands quickly track digital moments and respond appropriately to manage their reputation, retarget display ads, drive new sales opportunities, and provide customer support. Beyond listening to social chatter on digital channels such as online forums and analyzing brand relevance, product discussions, and customer viewpoints, it also pulls in unstructured information that is rapidly shared with other departments in the company. For an increasing number of CMOs, such a center delivers actionable insights to improve market research, better support customers, and drive sales.
Beware of insights! Real danger lurks behind the promise of big data to bring more data to more people faster, better, and cheaper: Insights are only as good as how people interpret the information presented to them. When looking at a stock chart, you can't even answer the simplest question — "Is the latest stock price move good or bad for my portfolio?" — without understanding the context: where you are in your investment journey and whether you're looking to buy or sell. While structured data can provide some context — like checkboxes indicating your income range, investment experience, investment objectives, and risk tolerance levels — unstructured data sources contain several orders of magnitude more context. An email exchange with a financial advisor indicating your experience with a particular investment vehicle, news articles about the market segment heavily represented in your portfolio, and social media posts about companies in which you've invested or plan to invest can all generate much broader and deeper context to better inform your decision to buy or sell.
But defining the context by finding structures, patterns, and meaning in unstructured data is not a simple process. As a result, firms face a gap between data and insights; while they are awash in an abundance of customer and marketing data, they struggle to convert this data into the insights needed to win, serve, and retain customers. In general, Forrester has found that:
The problem is not a lack of data. Most companies have access to plenty of customer feedback surveys, contact center records, mobile tracking data, loyalty program activities, and social media feeds — but, alas, it's not easily available to business leaders to help them make decisions.
How will digital disrupt the financial services industry over the next 10 years?
Over the past couple of days, I’ve been meeting with clients at Forrester’s Forum For Technology Leaders in Orlando. Clients mostly want to know how digital will impact their business. My approach in responding to this question is to think like the CEO of the company in question: First, understand the customer’s desires; then figure out how those desires can best be met profitably — I imagine how future technology changes might create new sources of customer value.
We’ve already seen massive change in the financial services sector: Technology is dramatically changing our customer experience and helping firms educate their customers. What more is yet to come? And what will companies need to do to win customers in the future?
While this is a complex question, it’s not hard to imagine a very different reality to the one that exists today: