Often considered the poster child of digital transformation, APIs are proliferating at enterprises making industry-leading investments in mobile, IoT, and big data. As these initiatives mature, CIOs, CTOs, and heads of development are coming together with business leaders to manage and secure companywide use of APIs using API management solutions.
Forrester recently released a report that sizes and projects annual spending on API management solutions. We predict US companies alone will spend nearly $3 billion on API management over the next five years. Annual spend will quadruple by the end of the decade, from $140 million in 2014 to $660 million in 2020. International sales will take the global market over the billion dollar mark.
In interviewing vendors for this piece of research, we discovered a vast and fertile landscape of participants:
Startups have taken $430 million in venture funding, and so far have realized $335 million in acquisition value. In April 2015, pure-play vendor Apigee went IPO and currently trades at a valuation north of $400 million.
Kit Hickey is the co-founder of Ministry of Supply, a menswear brand which creates technically advanced professional clothing. Passionate about how people experience their clothing, Kit leads all facets of customer experience and is the head and heart behind Ministry of Supply’s customer-centric approach, constantly working to incorporate insights that lead to the next generation of clothes. We sat down to talk more about customer-centric design leading up to Kit’s keynote at CXNYC 2015.
Q: You’ll be speaking at CXNYC 2015 about your iterative design process, which relies heavily on customer feedback. Can you talk about how this plays out both for your company and your customers?
Panera, the fast-casual restaurant chain, is completely transforming itself — from its back-office systems right down to the menu items. There are new services — including catering and table service — and there’s even a new kind of staff member, known as an “expo,” to double-check the accuracy of the firm’s new customizable orders and establish a little more rapport with visitors. At Forrester’s Forum for Customer Experience Professionals, June 16th and 17th in NYC, Blaine Hurst, chief transformation officer at Panera, will be sharing lessons learned from this massive innovation initiative. Here are some comments Blaine made during a recent conversation I had with him. I hope you enjoy them, and I look forward to seeing you in NYC!
Q: I don’t meet chief transformation officers too often. How would you describe your role?
A: When I came onboard with Panera, it was to envision and launch what we’ve come to call Panera 2.0 — a truly enhanced guest experience, powered by technology and enabled by ops excellence. If you look at the way we approached 2.0, you start to understand the role of a chief transformation officer. We looked for the ways that technology could transform the guest experience versus focusing on the latest gadgets for the sake of being “first” or “cutting edge.” I use the same lens in my role as chief transformation and growth officer. How can Panera win by applying technology or innovative thinking to truly transform and grow? In my role, I oversee business processes ranging from digital strategy to catering and delivery.
Everywhere I turn, I hear about how some product or service is geared towards DevOps. It feels like the “cloud washing” we all just went through. “Cloud washing” continues to cause problems as even today it remains difficult to understand how products and services really affect our ability to create and manage clouds and applications in the cloud. This “DevOps washing” is causing the same problems and it becomes harder and harder to understand what DevOps really is and how it applies. I spent a morning breakfast presentation just talking about the definition of DevOps with a group of technology management folks for over an hour!
I’ve spent the past year being the Ops part of the Forrester DevOps story. We have been hard at work and released a playbook called Modern Service Delivery (to match the Modern Application Delivery playbook coming from my Dev partner Kurt Bittner) and we are approaching the end of creating the foundation of the DevOps story from planning to optimization. We define DevOps as:
“DevOps is a set of practices and cultural changes — supported by the right tools — that creates an automated software delivery pipeline, enabling organizations to win, serve, and retain customers.”
If you are serious about DevOps, you can cut through the noise of the “DevOps washing” and start with several practical tips to get you moving in the right direction:
I originally wanted to expand on my presentation at the SE Forum in Scottsdale, Arizona, where I had described the life of a sales enablement professional as wearing six hats at once. But during the report interviews and other routine inquiries and briefings, it became clear to me that I also needed to highlight an urgent requirement for SOMEBODY, or a group, to take ownership of sales enablement investments in an enterprise — otherwise many of the investments will end up, after a year or so, being labeled as “rogue, random, and redundant” (probably not a great career move for those executives who signed off on the investments).
To be specific, most SE investments are being decided initially by marketing or sales executives, or even individual sales managers. Why could this be a perfect storm? Well, we see too many random acts happening around an enterprise due to a combination of these three factors:
Sense of urgency. Usually within sales — they feel “something must be done” about increasing sales productivity.
A few weeks ago, I advised federal agencies to build better digital customer experiences. I had no idea how polarizing the post would be, so I’d like to return to the topic of digital customer experience (CX) again this week.
Even the US Digital Service (USDS) thinks federal agencies need better digital CX. Last year, the USDS published a US Digital Services Playbook, a series of 13 plays to help federal CIOs create better digital customer experiences. (The playbook would work equally for agencies’ digital services teams, if they ever get funded.)
Notably, the Playbook doesn’t open with CIO staples like cloud services or automated testing or procurement. It starts with four CX plays that remind federal CIOs to begin every project with an outside-in customer-centric perspective.
These four CX plays are good advice. Federal CIOs who follow them will produce measurably better CX. That's because these guidelines, which are drawn from basic but proven best practices, correctly advise CIOs to:
"Understand what people need." Play No. 1 challenges CIOs to think from the outside in by putting "the needs of people" before the "constraints of government structures or silos" when designing new experiences. This guidance provides federal CIOs with the mandate they need to push back against rigid organizations and complex regulations that paralyze CX improvement efforts.
In 2013 NatWest led the way. Last year Barclays overtook having introduced a range of new app functionality, including being the first in the UK to introduce a digital vault (Barclays Cloud It). And now in our latest report we found Lloyds Bank to have jumped ahead of them both.
Forrester’s 2015 UK Mobile Banking Functionality Benchmark was published yesterday and reveals our insights around the state of the UK mobile banking, based on reviews of Barclays, HSBC, Lloyds Bank, Nationwide Building Society, and NatWest.
Lloyds Bank has pulled ahead of its peers with more extensive account management and transactional features. It remains the only bank in the UK which we reviewed that lets customers add a new payee directly in the app. If I’m out and about and need to pay back my friend for some tickets, I don’t want to have to wait until I get home to add a new payee through my online banking (yes, yes I know…we could use Paym to make a P2P payment but for the sake of this argument, let’s say these are very expensive tickets). I want to be able to add a new payee and send the money then and there - in my mobile moment.
Lloyds Bank is also making strides through its Everyday Offers. By partnering with Cardlytics, the Lloyds Bank app presents customers with relevant cash-back offers based on their past transaction history.
That’s not to say that the other banks are not doing great things. One of my favorite features is Nationwide’s Quick Balance, which lets customers view their account balance in just one click and without the need to login.
Since the bulk collection of telephone metadata began, the NSA has been keeping those records in a vast database and maintaining and querying that data for 5 years before being required to purge it. Now that the data will be back in the hands of the telecom companies, the Federal Communications Commission’s regulations will determine the retention of the metadata.
Prior to the 1980's, the FCC retention schedule was 6 months, but in the 1980’s, during the war on drugs, the Department of Justice asked the FCC to change that requirement to 18 months to make it easier to get RICO convictions for the drug cartels and the FCC complied. Since then, telephone data has been used to convict many organized crime syndicates with great success. Now that the NSA is also an agency that would like access to the same data that they FBI has been using since the 1970’s, will they ask the FCC to maintain the data for five yeas as they had been?
The cloud is not just reshaping how companies provision technology; it's changing customers' experience. A technology platform that is easily scalable for and accessible to the billions of connected devices customers use — PCs, smartphones, tablets, TVs, cars, jet engines, and more — has allowed cloud-services companies to completely reinvent experiences. No one was using black-car drivers' idle time to disrupt the taxi industry on a mass scale prior to Uber. Millions of customers, both consumers and business clients, have flocked to these cloud services, believing these are better experiences. The proof? The cloud computing elder Amazon is a perennial leader in Forrester's Customer Experience Index and has a market capitalization of more than $200 billion. So, the question you're probably asking is, "Does this mean that we need to build our customer interaction points in the cloud?"
Consumers and enterprises alike are increasingly shying away from buying digital content, services, and software outright. Instead, these businesses are embracing alternative business models where they lease or rent access to digital products and services. The disruption to traditional business models is widespread and accelerating across all verticals of digital product distribution, with high profile digital disruptors like Adobe, Netflix, and Salesforce driving changes in the way consumers and enterprises pay for, and engage with, digital products.
Today we see that:
Business model changes are accelerating in the digital goods marketplace. Today's digitally connected consumer is increasingly eschewing the traditional ownership model of buy, download, install, and use. Consumers want access to digital content and services across their connected devices, anytime, anywhere — and are embracing virtual ownership models that provide access to vast libraries of content, services, and products under subscription, usage, and other emerging ownership models.
A different set of features and services are fundamental for digital goods sellers. Many of the features and capabilities found in enterprise eCommerce platforms are directly transferrable to selling digital goods or online services. However, most of these retail-focused solutions lack the unique features and services needed to sell digital products and services online, including flexible cross selling and bundling, asset protection, subscription management and entitlements among other features.