CIOs already face significant pressure to understand and respond to digitally empowered customers. And as their firms’ customer experience (CX) focus intensifies, CIOs must bring digital into the heart of customer engagements — leveraging technology to assure high value end to end across the customer life cycle.
The next wave of tech trends to watch — 2016 to 2018 — support tech management’s move to the heart of digital CX implementation. Today’s mainstream CX investment path has individual organizations making point investments in the latest technology inventions — like social, mobile, big data, cloud, and analytics. But today’s leading firms are delivering solutions that reach end to end across customers’ journeys and across systems that connect the employees who service the customer life cycle. And these trends will accelerate over the next three years.
We see the top tech trends making this shift in three phases from 2016 through 2018:
■ Visionaries will dominate dawning phase trends as they drive point inventions to address specific business organizations’ opportunities.
■ Fast followers will discover the limits of point solutions in the awareness phase and begin to work through the challenges of end-to-end innovation.
It’s easy to see digital transformation playing a major role in consumer-facing firms. Digital customer experience sits at the core of retail — through Web sites, mobile devices, and increased focus on customer experience across the complete engagement cycle. However, it might be surprising for many how digital technology transforms core process industries like oil & gas.
At Huawei’s Global Energy Industry Summit 2015 — held this past August 19 in Almaty, Kazakhstan — the impact of digital to this traditional industry was the key topic. At this conference I gave a keynote, prepared with my colleague Holger Kisker, on the major industry trends and the challenges and opportunities of the digital business transformation in oil & gas. The current deep price drop for oil has focused firms on rapid and targeted response to increasingly dynamic markets of hydrocarbon supply and demand.
Some roles in the sector have a natural ability to thrive in price drops — like refiners, distributors, and retailers. But the closer you get to production, the tougher it is to stay whole. And this is where digital comes in. Firms that can dynamically react to volatile market needs — with growing operational efficiency — can meet market and customers’ changing expectations and still make money. And digital is at the core of this capability.
These challenges in oil production operations clearly highlight problems, like the aging workforce, leaving gaps across the industry. But filling the biggest operational gap will, at the same time, open the biggest door. Take, for example, the absence of modern remote sensor equipment at the majority of wells. When production falls off, many pumps must be checked by people traveling into the field to determine the cause. It’s costly, slow, and misses critical information like reduced cred pressure and production volumes.
Question: The output of the maturity assessment would be transformation plans. A hot spot we are finding is making sure all transformation plans move in the same direction. Any best practices to ensure everyone pulls in the same direction?
Business Technology (BT) is the largest single technology-management transition you will face over the next 5-10 years, as BT redefines IT’s operating model in your firm. BT is pervasive technology use, increasingly managed outside of IT's direct control. How does BT show itself? Employees, customers, and partners are bringing Web 2.0 and social computing technologies into business processes; business leaders are directly contracting for online solutions and business process outsourcing; and users are configuring their own business solutions, using ERP applications from vendors like SAP or IT-provided platforms built from technologies like business process modeling (BPM). Whether the business user is aware of the technology angle or not, IT’s traditional project-based plan-build-run approach to technology management can’t keep up with BT’s user-driven technology adoption.