I need to make this brief; the failure of the lump of plastic that used to be my BlackBerry has made me very time-poor today …
It has been an interesting year for RIM and for the BlackBerry. RIM has seen the erosion of its corporate mobile-email dominance (as employees prefer the usability of iPhones and Android devices), its brand was adversely affected by the BlackBerry Messaging Service being "the weapon of choice" for the thugs involved in the London riots, its tablet play has limped into the iPad's market, and now we have the prolonged service outage ... Sorry service OUTAGES.
The extent of the outage has been and continues to be shocking (there is no way it should have been this severe). But to me, in my capacity as an analyst, and observer and advisor on IT service management best practice, the real issue here is how RIM has handled the situation.
In managing the outage, RIM has acted like an old-fashioned technology vendor rather than a modern-day service provider; while we talk about BlackBerry devices we are really buying into the BlackBerry service. And we expect that service to be consistently delivered relative to service promises and our expectations thereof.
While we would prefer there not to be an interruption to service, most of us appreciate that "stuff" happens. When there is a service-affecting issue, we have a set of minimum requirements as customers that need to be catered for:
Firstly, we want early notification and a speedy resolution or a work around. As a minimum, that the service provider is visibly seen to be applying significant and varied efforts to the resolution of the issue. We want to see that the service provider cares.
Secondly, we want our expectations to be managed. Communications should keep us informed and be honest about when we should expect service resumption.
Two weeks have passed since our successful AD&D and BP Forums in Boston. I’m still struck by conversations we held there and continue to hold now with many of you on how your teams can help deliver to your firm’s ever-important customer experience outcomes. Following one tip can help you either get ahead of this issue or catch up to the expectations of your stakeholders…act more like an interactive agency!
Note I didn’t say “transform” into an interactive agency. No, at the end of the day you have responsibilities to your organization the agencies your business peers use often don’t – you have to manage, operate, and maintain what’s been delivered. What I did say was “act” like one, and in doing so you’ll need to:
Revisit your talent. For those of you that haven’t outsourced big portions of development, make sure you have great, creative developers, build a high-performance development team, and up-skill your business analysts by putting personas and customer journey maps into their tool kit. Why? The agencies your peers use have and cultivate these skills. At minimum, you'll be in a better position to manage and maintain what they’ve put in place if you have complementary skills of your own. If you have outsourced development, we can help you make the case to bring back the right pieces.
The IT Infrastructure & Operations (I&O) community has long been awash with management buzzwords and phrases such as "think outside the box," “bare metal,” “IT-to-business alignment,” “ivory tower,” “NextGen,” “people, process, and technology,” “innovation,” "what does good look like?" and “resonate.” More recently we have had to endure such gems as “cloudwashing,” “hash tag abuse,” “virtual sprawl,” and “cloudenomics” (please take a deep breath, don’t let them wind you up).
Another longstanding “buzzphrase” (no, I didn’t make this word up) is that I&O organizations need to “run IT as a business.” I imagine that most of us have used it (I plead “guilty” milord), at least in conversation, but do we really know what it means or what we need to do for I&O to achieve a business-like state?
Firstly, the “run IT as a business” mantra is wrong – well, partially. I&O organizations must indeed adopt practices to run as a business function, but not necessarily as a full business in itself.
One of the most prevalent areas in need of attention is that of the ITIL-espoused discipline of IT financial management. In that business-success not only stems from having a great product (or service) coupled with great customer service, there also needs to be an understanding of the cost of provision, the cost drivers, and the margins involved. Not having this understanding can only expose I&O’s lack of business acumen and capabilities, and make it difficult to compete in the new IT delivery landscape.
Dan Simpson understands business transformation - and the critical role the customer plays in it. Before joining Trustmark, Dan led the Enterprise Technology Group at Physicians Mutual in Omaha, Neb., where he was the driving force behind the company’s business transformation strategy and the Greenfield program, which implemented new customer-centric business processes, service-oriented architecture (SOA), a new enterprise data warehouse, and several key business applications. For these efforts, Dan was recognized as Technology Chief of the Year in 2010 by the Applied Information Management Institute.
Q: What are the business challenges and issues that typically motivate the need for business and IT transformation?
Dan Simpson: Common challenges facing business today include changes in market conditions, consumer behavior, and the regulatory environment as well as increasing competition and complexity. The inability to adapt to these changes drives the need to put new business process and technology foundations in place.
Q: How have you approached business process redesign?
Dan Simpson: The most effective approach is to focus on business process first before diving into systems. Depending on specific situations, I’ve seen great value in taking an approach where processes redesign starts and ends with the customer. This customer-driven approach helps drive customer-friendly decisions and efficiencies.
Q: What is a customer-driven application, and why is that concept important to transformation outcomes?
Recently my colleague Sharyn Leaver and I had the opportunity to meet with Robert Mead and Michael Mathias, the CMO and CIO, respectively, at Aetna. They will be speaking at our upcoming CIO-CMO Forum on September 22, 2011, in Boston, so this serves as a bit of a preview to what should be an eye-opening presentation. Enjoy!
David Cooperstein: What external changes drove you to build a deeper partnership with your technology peers?
Robert Mead, senior vice president, Aetna marketing, product and communications: The US healthcare system is fragmented and well behind the curve in terms of price transparency and consumer-friendly products and services. The deep partnership between technology and marketing at Aetna lets us put leading-edge technologies and powerful tools and applications directly into the hands of people so that they can be confident consumers and informed patients. Our close collaboration with our colleagues in technology is driven by a few external factors:
The increasing cost of care and the corresponding changes in employer-based insurance — consumers are being asked to take more ownership of their health and wellness and their healthcare spending.
The introduction and rapid adoption of technology empowers consumers (and patients) to engage in the healthcare system where they are in life and in the way they want to be connected.
Healthcare reform aims to bring millions of previously uninsured Americans into the marketplace as consumers.
Marketing planning has changed little in the past century. It's essentially a linear process built on the development of rigid 12-month plans built around brand and channel metrics. This approach is coming increasingly under strain as the combined effects of the growth of digital marketing platforms and a volatile economy demand marketing plans that deliver clear business outcomes and can adapt and improve to meet evolving market dynamics.
Over the past 12-18 months, we have come across several marketing organizations that have decided to do something about this situation and look for new ways to improve their approach to marketing planning by adopting some principles borrowed from a relatively new methodology originally conceived for software development efforts: agile development.
From the interviews that we did with marketers that are experimenting with this new approach, several of the key principles of "agile" development looked particularly relevant to innovating their approach to marketing planning:
A clear definition of business outcomes and associated business metrics
The competitive challenge that companies face today is driven by new issues that transcend classic distribution, brand, and product challenges. In the world we live in today, which Forrester defines as the Age of the Customer, firms need to look at how they deliver marketing and technology solutions that have visible impact on the customer.
Just the other day I was reminded of that when, sitting with a client, he described their competitive threat as coming from software products. That would be normal were it a tech company, but this was an airline! Yes, an airline that required technology and marketing to come together to define a customer experience that would differentiate them beyond seat configuration and route system. This highlighted to me the challenge that many companies face in this new era of disruption (for another view of how to think about this product challenge, see my colleague James McQuivey's recent report "Innovating the Adjacent Possible").
Charles Rutstein, Forrester's COO, sat down with my CIO Practice Leader peer Sharyn Leaver and me to discuss the role that CIOs and CMOs play in this customer-obsessed new world. See what we had to say here:
To succeed in today's turbulent business environment, enterprises must drive deeper customer engagement, connecting empowered customers to the valuable services they want across multiple touchpoints. This crucial shift to an outside-in focus, however, brings new demands and challenges to the application development and delivery organization. On June 13, 2011, Forrester convened a group of expert analysts to discuss:
How application delivery should partner with marketing to drive deeper customer engagement through the entire life cycle across multiple touchpoints.
Best practices for application development to design and deliver improved customer experiences.
How to reconcile the need for stronger design with agile processes and continuous delivery.
How to optimize your mobile application strategy to serve empowered customers.
How to exploit emerging application platforms, including cloud, to empower customers and the business to enable rapid change.
Several recent Forrester reports home in on what we call “The Age Of The Customer” in which firms must seek to become customer-obsessed to build differentiation and loyalty. Those firms that embrace this will ramp up investment in four priority areas: 1) real-time customer intelligence; 2) customer experience and customer service; 3) sales channels that deliver customer intelligence; and 4) useful content and interactive marketing. All these needs are technology-infused – wholly dependent on technology and in categories where technology is evolving rapidly. Underlying these investments is the need to master the flow of data about customers: capturing/collecting data about them, analyzing it, distributing to those points of engagement, and, finally, integrating the insights into the customer experience.
Companies can’t succeed at doing this without a close partnership between the business areas leading the charge and IT. The rate of change of your customers, markets, business opportunities, and technology is simply too fast. Forrester is exploring this theme in our first CIO/CMO joint forum.
The reality, though, is companies flounder at this marketing-IT partnership. They flounder because of:
More ideas than capacity. A plethora of desired initiatives are constantly being surfaced – beyond the limits of available budget and with no mechanism to sort them into an achievable plan that IT can deliver on.
If you read my last research report and previous blog post, you’ll know that I’m working with Luca Paderni on a series of research reports examining the IT and marketing relationship. In particular, we’re examining what IT and marketing are doing to master the customer data flow (see Figure 1).
At the upcoming CIO and CMO forum, Luca and I will be presenting a keynote examining the readiness of IT and marketing teams in today’s organizations to master the customer data flow. The really cool thing is that you can help shape the outcome by participating in a very short survey we are conducting in conjunction with Forbes. The survey asks a number of questions around the interaction between IT and marketing and can be answered by either IT or marketing professionals.