Two Asia Pacific CEOs Who Get It – And Their Secret

Dane Anderson

I had the pleasure of presenting to Singapore’s DBS Bank yesterday on customer experience and listening to CEO Piyush Gupta’s thoughts on the bank’s journey since he joined in 2009. He spoke about his conclusion upon joining five years ago that a critical challenge to be addressed was an inside-out perspective by the bank’s employees. Since then, he’s driven the bank through a successful transformation project Forrester wrote about in an August case study. Looking forward, he sees the bank working toward “joyful” banking and is seeking ways to embed more emotional connections into their customer experiences.

Listening to Piyush speak reminded me of my interactions with another regional CEO this year who has driven a successful company transformation: Telstra’s David Thodey. David also joined in 2009 and has driven Telstra’s success through a focus on the customer. He has given his customer focus organizational teeth by linking it to Net Promoter Scores (NPS) that determine part of the compensation system at Telstra. The importance of measurement is the key reason we recommend our clients leverage Forrester’s CX Index.

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Five Insights From Digital Business Leaders In Asia Pacific

Dane Anderson

I had the good fortune of moderating a panel on the state of digital business at the Chief Digital Officer Global Forum in Singapore yesterday morning. The event showcased a who’s who of digital business leadership in the region, including my panelists Veena Ramesh of Johnson & Johnson, Jerry Blanton of Citi, and Veronique Meffert of Great Eastern Life.

The event paralleled many of the themes my colleague Clement Teo highlighted in his recent report on the State of Digital Business in Asia Pacific. Five key themes that I believe provide important insights on the pulse of digital business regionally:

  • Organizational issues are the greatest hurdle. There was not a single dissenting voice on the fact that organizational challenges represent the biggest impediment to digital business progress. The greatest organizational challenges are functional silos, business unit resistance, a lack of clear guidance from the CEO, rigid backward-looking mindsets, and a shortage of the skills needed to drive change. One approach — shared by Rahul Welde of Unilever — is to drive “digital experimentation funds” and “foundries” to drive co-creation innovation.
  • Media command centers are becoming critical marketing assets. Both representatives from Unilever and Philips spoke of the critical role that media command centers now play in their marketing campaigns. In the case of Philips, I was surprised to learn that its social media command center in Singapore employs 200 people — and that it is planning for expansion!
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Digitize Your Business Today Or Prepare To Become Obsolete

Clement Teo

In a previous blog entry, I argued that everyone needs to digitize their business, but not every business knows what to do. Transforming into a digital businesses, especially if you’re a traditional enterprise, is hard work. However, we believe that Asia Pacific is already primed for digital disruption.

In my report, The State Of Digital Business In Asia Pacific In 2014, we found that, while the highest-profile digital business pioneers are headquartered in North America, market demand in Asia Pacific is more conducive to long-term digital disruption. Asia Pacific has five times as many Internet users and smartphone subscribers as the US and almost as much online retail spending as the US and Europe combined. You just need to look at regional powerhouses like Alibaba.com and Commonwealth Bank of Australia and their multibillion-dollar businesses to grasp the rewards of digital business success in Asia Pacific.

However, knowing what these firms have accomplished is insufficient; knowing how to get there is more critical. You should:

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Everyone Needs To Digitize Their Business — But Not Every Business Knows What To Do

Clement Teo

Every business must transform into a digital business. Digital businesses continuously exploit digital technologies to create new sources of value for their customers and increase their operational agility to serve those customers. In Asia Pacific, CIOs have had limited success in driving digital business transformation. Organizations taking an early lead in transforming their business include Commonwealth Bank of Australia, China’s Ping An Insurance Group, and DBS Bank in Singapore.

A true digital business needs to integrate two sides of a digital strategy: digital customer experience and digital operational excellence. My colleague Nigel Fenwick has written extensively on the topic; this infographic, for example, sums up our thinking. Becoming a truly digital business requires a radical overhaul of organizational structures, technologies, measurement frameworks, and operating models. And it’s ongoing.

The organizations coping best with digital disruption are creating:

  • A digital strategy as a defense mechanism against disruption. The pace of consumer change poses the biggest threat to any traditional businesses that have yet to experience the impact of digital disruption, regardless of whether they’re in the telecommunications, media and entertainment, transportation and travel, or other industry. For example, Australia Post has set up a A$2 billion kitty to aggressively pursue a digital strategy to tap into new revenue sources, including building a new center for the digital delivery of mobile and online products and services.
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Bridging The CIO/CMO Disconnect In Asia

Fred Giron

It’s a fact: Marketers in Asia purchase digital technologies without involving the tech management department. They do it because they believe that:

  • Digital technologies are key enablers of successful marketing strategies. Customers in Asia Pacific in general, and in Singapore in particular, are always connected and empowered by technology to access the right information in their moments of need. They increasingly value — and do business with — organizations that provide them with experiences that are effective, easy, and emotional across all customer touchpoints. It’s not a surprise, then to see marketing professionals — just like their colleagues in sales, product management, and customer service — source digital technologies to enable such experiences.
  • The tech management department hinders their business success. This is the more worrying part, but if you take a step back, as a technology management professional, you understand why. You work with technology life cycles that are oriented toward core business, back-end systems like enterprise resource planning and therefore are risk-averse and slow. However, marketers need tech management professionals who are open to innovation, experimentation, and moving toward a risk-tolerant, agile life cycle that supports digital experience delivery.
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Empower Your Digital Business with Forrester’s Summits for Asia Pacific CIOs!

Dane Anderson

It’s hard to believe almost a year has passed since our last Summits for CIOs in Asia Pacific. Our team is ramping up preparations to this year’s CIO Summit series and I’m looking forward to meet you at the events which will kick off in Sydney on August 14, Singapore on August 19 and Mumbai on August 21. Themed “Beyond IT: Empower Digital Business in the Age of the Customer”, Forrester’s 2014 Summits will focus on the significant shift we’ve seen in CIO’s traditional focus from the design and deployment of internal systems focused on process control to digital products and services for their customers.

Of particular importance on the digital journey are three domains: customer experience, the mobile mind shift and the transformation of big data into actionable business insights. Each of these topics will feature prominently at the Summits with select analysts flown in to delve deeper into how CIOs can overcome some of these challenges through Forrester guidance.

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Banks In Singapore And Hong Kong Must Step Up To The Cloud Challenge

Fred Giron

Last week I presented an overview of cloud adoption trends in the banking sector in Asia to a panel of financial services regulators in Hong Kong. The presentation showcased a few cloud case studies including CBA, ING Direct, and NAB in Australia. I focused on the business value that these banks have realized through the adoption of cloud concepts, while remaining compliant with the local regulatory environments. These banks have also developed a strong competitive advantage: They know how to do cloud. Ultimately, I believe that cloud is a capability that banks will have to master in order to build an agility advantage. For instance, cloud is a key enabler of Yuebao, Alibaba’s new Internet finance business. 80 million users in less than 10 months? Only cloud architecture can enable that type of agility and scale (an idea that Hong Kong regulators clearly overlooked).

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Great Customer Experience Is Tied To Great Sourcing Practices

Clement Teo

My recent report, “Driving Toward Communications Sourcing Excellence,” looks behind the scenes to find out why Formula One (F1) sourcing professionals enjoy such a great customer experience from their network providers. It’s a two-way street: Providers ensure that the F1 team’s network is reliable, always available, and delivers peak performance when needed, and F1 sourcing pros provide the guidance, insight, and support to make sure providers know what teams need. This is as much a concern for CIOs as it is for sourcing pros in their quest to win, serve, and retain customers.

Matt Cadieux, the CIO of Infiniti Red Bull Racing, said, “AT&T has a dedicated F1 account team that I meet for regular account reviews to discuss our requirements and plans. In the rare event of a problem, we also have excellent relationships with AT&T’s top executives. AT&T has consistently delivered projects when required; for example, in 2014 it provisioned new access networks in England and France and at racetracks around the world. These circuits have been fully operational — we show up and they just work.”

What It Means

My colleague Tracy Stokes believes that a consistent customer experience builds a trusted brand, and I couldn’t agree more. It also leads to:

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Build Mobile Systems Of Engagement To Thrive In The Age Of The Customer

Katyayan Gupta

Organizations in Asia Pacific (AP) have become cognizant of the fact that they have entered the age of the customer — an era in which they must systematically understand and serve increasingly powerful customers. In the past two years, most AP firms have primarily focused on using mobile apps to connect their organizations with internal employees. However, in the age of the customer, this trend will reverse. Results from Forrester’s Forrsights Budgets and Priorities Survey, Q4 2013 show that 44% of AP technology decision-makers will prioritize building a mobile strategy for customers or partners, while only 39% will prioritize it for employees. Firms in Australia, Indonesia, India, and China will lead the region.

In order to compete and win in the age of the customer, organizations cannot be simply “customer-centric” anymore — they must become “customer-obsessed.” To do so, firms must embrace the mobile mindshift and build mobile systems of engagement. This can be done by leveraging social, cloud, and predictive analytics to deliver context-rich mobile applications and smart products that help users decide and act immediately in their moments of need. Such systems will focus on people and their immediate needs in context rather than processes, as is the case with traditional systems of record.

Building mobile systems of engagements is even more critical for firms in AP, because:

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Securing The Asia Pacific Airwaves

Clement Teo

by Clement Teo and John Brand

VMware recently announced that it has signed a definitive agreement to acquire AirWatch, a leading provider of enterprise mobile management and security solutions. The acquisition is expected to provide customers with the most complete solution to manage users, devices, and applications across server, desktop, and mobile environments.

My colleagues Tyler Shields and Christian Kane have already shared their views and published two reports on the acquisition. Tyler has also raised some questions about AirWatch’s burn rate.

But what does it mean in Asia Pacific?

VMware obviously has had to expand its penetration beyond the server-centric virtualization market. So far, it has had mixed success with selling virtualization as a platform in the region, even though it has successfully entrenched itself as a leading hypervisor provider (unfortunately, VDI has proved a difficult sell for VMware in AP). In order to gain much deeper penetration and traction, VMware needed to add an end user computing offering to its portfolio. The pairing should result in:

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