The Forrester Wave: Customer Service Solutions For Enterprise Organizations, Q4 2015

Kate Leggett

The customer service vendor space is a mature space. Yet there have been many changes in the last five years and clearly more to come. Two driving factors will accelerate these changes:

  • Big fish eat little fish, and each bite broadens the reach of the big fish. The customer service market has consolidated in the last five years. Big vendors like Microsoft, Oracle, Salesforce and SAP have made acquisitions to round out their core customer service or broader CRM portfolios.
  • Vendors from adjacent markets emerge as competitors. The most interesting disruptor to the current customer service market is coming from cloud contact center providers. They provide an end-to-end solution for customer service: a unified communications infrastructure, routing, and queuing engines for omnichannel interactions. Many offer integrated workforce optimization for agent quality management, scheduling, and forecasting. They also have lighter-weight agent desktops that can be easily hardened or acquired. These vendors were not included in this years wave, but they may well be candidates for the next evaluation round.
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Architect Your Predictive Analytics Capability To Unleash The Power Of Digital Business

Charlie Dai

Predictive analytics has become the key to helping businesses — especially those in the highly dynamic Chinese market — create differentiated, individualized customer experiences and make better decisions. Enterprise architecture professionals must take a customer-oriented approach to developing their predictive analytics strategy and architecture.

I’ve recently published two reports focusing on how to architect predictive analytics capability. These reports analyze the trends around predictive analytics adoption in China and discuss four key areas that EA pros must focus on to accelerate digital transformation. They also show EA pros how to unleash the power of digital business by analyzing the predictive analytics practices of visionary Chinese firms. Some of the key takeaways:

  • Predictive analytics must cover the full customer life cycle and leverage business insights. Organizations require predictable insights into customer behaviors and business operations. Youmust implement predictive analytics solutions and deliver value to customers throughout their life cycle to differentiate your customer experience and sustain business growth.You should also realize the importance of business stakeholders and define effective mechanisms for translating their business knowledge into predictive algorithm inputs to optimize predictive models faster and generate deeper customer insights.
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Your Digital Experience Technology Strategy Starts With A Customer Journey Map

Ted Schadler
In a recent Forrester survey of 1,821 enterprise business and technology decision-makers, we learned that the top three investments firms are making in customer experiences are in digital customer experiences. 55% prioritize online experiences; 41% are adding or improving mobile experiences; and 39% are improving cross-channel experiences.
 
None of that happens without big investments in digital experience technology. As firms like Rewe Group, The Home Depot, Schneider Electric, and Westpac have learned, digital experience strategy shapes the technology you need — an investment that can take five years and cost between $20 million and $200 million. 
 
Application development and delivery professionals should follow the lead of customer experience teams and start with a customer journey map highlighting the digital interactions. We have just published the strategy report, the first of three reports in a planning sequence from our digital experience delivery playbook
 

Four Themes Drive Digital Experience Technology Strategy

To find out how advanced firms are building their digital experience strategy, we interviewed technology executives and their marketing and business counterparts in eight enterprises. We also interviewed 13 software vendors, digital agencies, and systems integrators. We found four consistent investment themes among these experts:

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Answering The Question: What Are The Real And Frightening Risks Within Healthcare Security?

Christopher Sherman

Connected medical devices are transforming healthcare. Unfortunately, security is too often an afterthought for the clinical engineering and business technology (BT) management teams implementing these revolutionary new technologies. In a recent report, Forrester predicted that 2016 will be the year we see ransomware for a medical device or wearable. This is a delicate thought, considering: 1) the Healthcare Industry is actually behind on data security compared to other industries and 2)  the FBI highlighted the risk posed to medical devices in their recent public service announcement: Internet Of Things Poses Opportunities For Cyber Crime.

This research initiative seeks to answer the following: Are there real threats posed by the emergence of connected medical devices? What can you do to protect your patients and employees from life threatening breaches? Is there an underground market for medical device exploits? This research will publish in early 2016 and will be featured in my talk at the RSA Conference this March.

We are looking for research interview candidates to support this initiative, specifically security professionals working in a healthcare setting or medical device security vendors with current solutions on the market. In exchange for your time, we will provide you with a complimentary copy of the final research. While anyone who participates will have the opportunity to be listed as an interviewee in the final report, all interviews will be treated as confidential unless expressly instructed otherwise.

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How Bad Data Management Kills Revenue

Michele Goetz

I'm not one to normally publicly gripe on a vendor, but a recent customer experience with an online purchase is a great example of why organizations can't ignore data management investments.

I have been a regular user of a note-taking app for several years. All my discussions with clients, vendors, and even notes from conferences wind up here. I put in pictures, screen shots, upload presentations, and capture web pages. So it isn't a surprise that this note-taking vendor wants to move me up into a premium version. And for $50 a year, it's not a big deal for me to do even if it just means I'm paying for more space rather than using all the features in the premium package.

So, this morning, I click the upgrade button and voila! My order is taken and shows up in my iTunes account order history.

As this app is web-, desktop-, and device-based and the vendor is born out of the app age, the expectation is that my account status should just automatically convert. I mean, every other business app I have does this. Why shouldn't this one?

As it turns out, my purchased premium service is nowhere to be found. To get immediate support, as only offered in premium service, you need to be able to log in as a premium customer. So instead of an easy and quick fix, I spend over an hour trying to get answers through a support site that shows the issue but an answer that doesn't work. I also see that this is an issue going back for over a year. I try entering in my issue through "contact us" only to find that I get routed back to the support forum and can't even log a ticket. I find an obscure post where the vendor's Twitter handle for support is listed and fire off a frustrated tweet (which goes out to my followers as well, which I'm assuming is not something this vendor would prefer).

So let's break down the data management issue:

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Predictive Analytics Requires A Customer-Obsessed Innovation Culture

Fred Giron

Over the past month, I participated in predictive analytics events in Indonesia and Thailand organized by SAP with about 70 regional CIOs. There is a palpable excitement around predictive analytics these days, but I see a risk that, beyond the excitement of the demo and first implementations, a number of these advanced analytic tools remain shelfware. Why? Because tech management teams often struggle to realize the business value of these investments.

With this in mind, my presentations focused on why companies need to approach analytics with a new mindset: The business discipline and technology to harness insights and consistently turn data into effective action. My colleagues Ted Schadler and Brian Hopkins call the resulting business capability a system of insights. This approach received a lot of positive feedback from the audience and generated discussions on how it can solve their key data & analytics challenges:

  • Ensure strong business support. Many CIOs I have talked to complained that they lack business support, because business sees data & analytics as a technology responsibility and they simply do not want to get engaged. My recommendation to them: stop talking about Big Data and start focusing on business outcomes like improved customer loyalty. That’s where the System of Insights concept can help. Actually, one of the CIOs, part of a large Indonesian conglomerate, told me that this approach would really help him explain how business and tech teams need to collaborate to turn data and insights into actual business value.
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Unleash Your Digital Predator

Nigel Fenwick

Your customers' digital experiences with other suppliers already shape their perceptions of value. Today, your customer assess the value of your services based in part on your ability to integrate into their digital world. The future belongs to companies able to harness digital to create new sources of customer value - these companies are destined to become digital predators, swallowing up lesser digital prey. 

As a business leader, do you get the feeling that you're no longer playing the same game that you once were? It's not you; the world has changed. The things that used to set companies apart — such as economies of scale, distribution strength, and brand — are far less potent than they used to be. Why? Because digital technology has fundamentally changed two things: the dynamics of the markets in which you operate and the speed needed to remain competitive.

The latest report in our series on digital business – Unleash Your Digital Predator – updates our thinking on digital transformation and includes analysis of data from our latest executive research study on digital, conducted in partnership with executive search firm Odgers Berndtson.

Many firms proudly point to their mobile app and proclaim "Hey, we're digital!" While they may be driving incremental revenue, all they have done is bolt another digital touchpoint onto the existing business. Digital transformation goes much further, fundamentally reshaping the way you create value for your customers and drive revenue growth. Achieving this requires that firms approach digital business from the outside in, pursuing two dimensions of digital in parallel: digital customer experience(DCX) and digital operational excellence (DOX).

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The State Of Digital Business 2016 to 2020

Nigel Fenwick

In the first in a series of reports examining the results of our latest survey on digital business, conducted in partnership with Odgers Berndtson, I look at executive perception of the impact of digital on their business. 

It turns out executives are hugely optimistic about how digital will change their business. Forty-six percent of executives surveyed believe that in less than five years digital will have an impact on more than half their sales. This suggests not only huge awareness of the potential for digital to change today's business but also an expectation that their company will be successful in making the transformation needed to bring this expectation to fruition. And it's in the biggest companies, where change is hardest, that executives expect the greatest change.

In B2B industries like consumer packaged goods (CPG), wholesale sales, and professional services, the shift is expected to be dramatic — Forrester estimates that the US B2B eCommerce market will be $1.13 trillion by 2020.

  • CPG execs expect digital to have an impact on almost half their sales. Even though the percentage predicted by 2020 is still less than 50%, if CPG companies were to generate anything close to 45% of their sales through digitally enhanced products and services or through online sales by 2020, it signals a dramatic shift in the CPG landscape. The ripple effects of the digitization of more and more CPG will be felt through wholesale and retail channels. 

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Driving Systems of Records to the Cloud, your focus for 2016!

Success in the Cloud is now a fact

You have all heard the success stories of Uber and Airbnb as they leverage technology to disrupt existing business norms in the taxi and hotel businesses. Digital business successes such as these are pressuring traditional enterprises to focus on differentiation in business models, customer intimacy and velocity as they look to not only preserve market share, but – more importantly – to grow it!  This is what Forrester calls the business technology (BT) agenda – technology investments that help your business win, serve, and retain customers.

Additionally, as an I&O professional you cannot ignore the investments, and success, with public cloud. For instance, public cloud providers like Amazon Web Services drive and deliver systems of innovation to create velocity both in new business ventures and traditional enterprises, especially in fueling mobility and web services.  The investments to date are supporting the ability of the Public Cloud to support and drive innovation. Additionally, these solutions now raise the possibility of the cloud’s suitability for the next phase, transition of systems of record.  This is one of the predictions in our Forrester “Predictions 2016: The Cloud Accelerates” which articulates 11 key developments for Cloud and what I&O professionals should do about them.

 

The “low hanging fruit” is gone – now it’s time to reach higher

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Deliver Business Value With Modern Metrics And Analytics

Diego Lo Giudice

Modern application delivery leaders realize that their primary goal is to deliver value to the business and its customers faster. Most of the modern successful change frameworks, like Agile (in its various instantiations), Lean, and Lean Startup, which inspire developers and development shops, put metrics and measurement at the center of improvement and feedback loops. The objective of controlling and governing projects to meet vaguely estimated efforts but precisely defined budgets as well as unrealistic deadlines is no longer on the agenda of leading BT organizations.

The new objective of BT organizations is to connect more linearly the work that app dev teams do and the results they produce to deliver business outcomes. In this context, application development and delivery (AD&D) leaders need a new set of metrics that help them monitor and improve the value they deliver, based on feedback from business partners and customers.

So what do these new metrics look like and what can you do with them? In the modern application delivery metrics playbook report “Build The Right Things Better And Faster With Modern Application Delivery Metrics,” I describe:

  • Preproduction metrics. Leading organizations capture preproduction data on activities and milestones through productivity metrics, but they place a growing emphasis on the predictability of the continuous delivery pipeline, quality, and value.
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