In addition to managing the IT agendas of their companies, CIOs must build a second agenda of Business Technology (systems, technology, and processes to win, serve, and retain customers). The IT agenda focuses internally on supply chains, financial systems, and administrative technology. These are all critical -- most corporations would stop in minutes without IT. But as empowered and digital customers demand more, BT will emerge to concentrate on technologies -- CRM, systems of engagement, customer apps, customer insight, digital customer service as examples -- that will enhance customer experience.
Forrester does not believe that a Chief Digital Officer will arrive on a white horse to run BT, and we also do not agree with the trendy assertion that marketing is going to be in charge of all customer technology. Because of the close synergy between the IT and BT agendas, we believe that the CIO and his or her staff must adroitly manage both. And as unnatural as it might seem in many organizations, the CIO must execute on the BT agenda in concert with the CMO and business unit leaders. A go-it-alone approach will create havoc and unhappy customers.
One of the things we spend a lot of our time doing with our clients is delivering workshops with their key stakeholders. These workshops take many forms, but our most effective (and popular) are the customer journey mapping workshop and the customer experience maturity assessment workshop. These workshops are great: a killer combination of research-based structured framework and the brain trust of key client stakeholders who really know their business.
But it occurred to me after the last workshop I helped to deliver that something else was happening . . . something that wasn’t on the agenda, wasn’t in the statement of work, and wasn’t really planned. And this thing happened in pretty much every workshop I’ve been fortunate enough to experience.
The thing that happened was that people talked. I mean really talked. These workshops are structured so that people are not just sitting around a conference room table. They’re standing up and moving around the room, writing on little bits of paper on the walls, windows, and even the floor. And it’s at this point that something really cool happens. The discussions get focused. In one recent case, Manulife arranged a series of Client Experience Labs, and it invited all the most senior people from across all of Asia Pacific. Because this was not a Forrester-run event (we were just helping out by delivering content on our maturity assessment and customer experience ecosystem frameworks), I had a chance to observe the participants as they were working through the journeys their clients had to go through. What I noticed was this: at one point, 11 senior executives standing around a journey map on the wall talking about their clients. Nothing else mattered in that moment. How often does that happen in our busy work lives?
Several events over the past few months in China will affect both the IT procurement strategy of Chinese organizations and the market position and development of local and foreign IT vendors, including:
A government-led push away from foreign IT vendors. Amid security concerns, the Chinese government has issued policies to discourage the use of technology from foreign IT vendors. As a result, many IT and business decision-makers at state-owned enterprises (SOEs) and government agencies have put their IT infrastructure plans — most of which involved products and solutions from foreign IT vendors — on hold. They’ve also begun to consider replacing some of their existing technology, such as servers and storage, with equivalents from domestic vendors. This is significant given that government agencies and SOEs are the key IT spenders in China.
A trend to get rid of IBM, Oracle, and EMC. Alibaba was an early mover, replacing its IBM Unix servers, Oracle databases, and EMC storage with x86 servers, open source databases like MySQL and MongoDB, and PCIe flash storage. This has evolved into replacing these foreign products and solutions with ones from local Chinese vendors. For example, Inspur launched the I2I project to stimulate customers to drop IBM Unix servers in favor of Inspur Linux servers to support business development. The Postal Savings Bank of China, China Construction Bank, and many city commercial banks have started deploying Inspur servers in their data centers. However, this only affects the x86 server and storage product market: While domestic vendors can provide x86 servers and storage, they still have no databases to replace Oracle’s.
It all started with Johnny Cash. There he was looking out at me, his greatest hits, from the bargain bin at my local electronics shop for a fiver. Wow, a great bargain feeling that you simply don’t get from digital downloads. Unfortunately, upon returning home, I realized that my MacBook does not actually have a place where you can stick in a CD. How was I going to transfer this music now?
So I did what I normally do (and what the majority of consumers now normally do). I jumped online and went looking for an external CD drive for my MacBook to transfer my A$5 CD (the bargain cost of that CD suddenly lessened by needing to buy a piece of hardware to transfer it). I found what I wanted easily, bought it easily, paid for it easily. Satisfied.
And then it all went to pieces, thanks to Australia Post. And why did it go to pieces? Because Australia Post’s customer experience ecosystem is broken. Here’s why.
When customers in Australia are not home to receive a package, the delivery person leaves a small postcard telling them that they can pick up their package from their local Australia Post depot. Mine is a 10-minute drive away in a place called St. Leonards. I’ve received many of these cards, and I noticed with frustration that sometimes I was actually home when the card was delivered, and no attempt had been made to try to deliver the package.
Recently, I’ve been on the go: I’ve just returned from a two-week sprint that took me to five different cities by plane, train, and car. Any frequent traveler is familiar with the logistical challenges that make multimode transport inconvenient – whether it's dashing between connecting flights or strategizing a taxi pickup to catch the train, switching between methods of transportation can make for a trying, disjointed journey overall.
As I settled into one flight by turning off my mobile phone and opening my laptop, it dawned on me that our path through the fragmented digital world is similar to my multiphase journey. As our physical location changes and as we realize the limitations of certain device experiences, we reach for various devices to carry out the task at hand – often, we complete one activity sequentially across screens and expect a seamless experience.
In fact, Forrester's Consumer Technographics® data shows that more than half of US online adults who begin tasks on their mobile phone continue them on their laptop. These consumers are most frequently purchasing products, checking emails, and researching items:
I became a LinkedIn member when it first arrived on the scene as an exclusive social network for business professionals. I recall all the buzz that was spreading throughout Silicon Valley about LinkedIn, and that one needed a special “invite” to become a member. Looking back, I remember how honored I felt to be “linkedin” by a fellow colleague — I was officially in the club! Over the years, I have watched the social network evolve into an effective recruitment platform (disclaimer: I got my analyst job thanks to a Forrester recruiter who found me on LinkedIn), then to a content publishing platform after it added Slideshare, a newsfeed and its popular influencer program.
Today, LinkedIn is attracting a plethora of B2B and B2C brands that are trying to build a presence in front of 300 million professionals. There are currently more than 3 million company pages on LinkedIn. All of this brand activity begs the question: What engagement rates are brands getting on LinkedIn? We looked at the top 50 global brands and their member interactions across a variety of social networks. We found that LinkedIn’s engagement rate was lower than other social networks that also have professional members:
Why does LinkedIn’s engagement rate lag behind the others? Members simply do not go to LinkedIn to interact with brands after they have purchased a brand’s product. Marketers understand this — only 5% use LinkedIn for a social relationship objective (e.g. drive customer loyalty, provide customer service).
No kidding. Isn't that marketing's job? To produce content? From advertising, to email, whitepapers, videos, blog posts, case studies, brochures . . . it's what marketing does, right? I'm surprised the result wasn't 100%. (I wonder what those 9% were doing instead?)
Hmm . . . sounds like a bad joke I used to tell about enterprise portals . . . except now it goes something like, "How is content marketing like teenage sex . . . ?" (You can look it up . . . )
American government is divided along liberal-conservative lines on just about everything. But the Supreme Court agreed that you can't search somebody's mobile phone without a warrant, and it wasn't a typical split decision -- it was unanimous. (The other big ruling today, on the controversial question of whether Aereo can sell you streaming access to your own TV channels, was 6 to 3 against Aereo).
Why? What is in your mobile phone?
Chief Justice John Roberts pointed out that they are "cameras, video players, Rolodexes, calendars, tape recorders, libraries, diaries, albums, televisions, maps, or newspapers." You might as well add alarm clocks, wallets, stethoscopes, and running coaches. There is literally nothing about you that your phone may not know at some point (your browsing history probably contains a lot of secrets you may want to hide from some people). If I had a choice, I'd rather have an invasive government search my house than my phone. (I wonder how many of them have phones under their robes.)
JetBlue built its brand on a new standard of in-flight customer experience when it launched in 1999. Guided by its brand North Star to “bring humanity back to air travel,” the fledgling airline offered beleaguered economy passengers better seats, better entertainment, better snacks, and an all-around better customer experience. JetBlue had the prescience to understand that customer experience is inextricably linked to brand experience.
Our TRUE brand compass research shows that JetBlue has established itself as a major airline brand with consumers but has not yet risen above the competitive pack. JetBlue ranks as a TRUE brand follower, alongside air transportation stalwarts like American Airlines and United Airlines. But will it rise to leader status? On the back of a couple of headline-grabbing passenger incidents, a recent USA Today article raised questions about whether this pioneer of a better airline customer experience has “Lost Its Heart.” For me, the question is not so much whether JetBlue has lost its heart but whether the brand has failed to keep pace with consumers’ rising expectations of brands. Does JetBlue still have the prescience to see what will build the airline brand of the future?