It’s not often that I get to write about breaking news in the IT service management (ITSM) world but this definitely is it (I think the last time was this).
Well I say “breaking news,” many of us were talking about the rumor of Capita winning the “ITIL auction” on Wednesday evening while together at the Service Desk and IT Support Show. The odd thing is that it was probably the only time we were talking about ITIL, the ITSM best practice framework, outside of the sessions over the two days (other than some vendors who were still spouting that their tools are “ITIL-compliant”). But that is a topic for a later date.
If you want the “scoop” on the Capita announcement then please look at:
Ten years ago, Forrester published some research with the slightly awkward title of ‘New Payment Systems’ Survival Guide’. One of our findings was that many successful new payment systems have some kind of ‘must-have’ transaction that encourages customers to go through the hassle of learning how to use a new system in the first place. Good examples of ‘must-have’ transactions include eBay’s auctions for PayPal, travel to work for Transport for London’s Oyster, and online shopping for iDeal.
Ever since, I’ve been seeking the ‘must-have’ transaction that will spark consumer adoption of mobile payments in developed economies. But what if there isn’t one? (And, after 10 years, it’s probably time to admit that there isn’t). The answer is to focus relentlessly on both lowering the barriers to mobile payment by making it as easy as possible for customers to use a new system and to increase the benefits by maximizing the number of ways and places customers can use a system.
When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?
Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
Royal Bank of Canada (RBC) leads all of North America.RBC again took the top spot in the 2012 Canadian Bank Digital Sales Rankings, scoring 77 out of a possible 100. It continues to tweak and improve an already good design; the bank started a major redesign in 2009. RBC continues to excel in areas big and small: For example, the firm presents fulfillment options in an easy-to-read format (see screenshot below). In 2012, Royal Bank of Canada improved its navigation, content, and online application functionality, and its score for 2012 reflects that improvement.
Citi and Wells Fargo top the US banks.Citi and Wells Fargo topped Forrester’s 2012 US Bank Digital Sales Rankings by delivering on multiple levels. Both banks combine good usability with exceptional account-opening processes. For example, Wells Fargo uses presentation best practices to make its checking account fees clear to customers and prospects (see screenshot below).
Technology is radically changing the way bank customers interact with their providers, and mobile touchpoints are at the forefront of this change. In the past five years, mobile banking adoption in the US has more than quadrupled, hitting 17% by the end of 2011. This represents a compound annual growth rate (CAGR) of more than 33%.
As such, eBusiness professionals and mobile strategists at banks are in a white-knuckle contest to out-do each other in the mobile space. To evaluate and gauge banks’ mobile offerings, we applied Forrester’s Mobile Banking Functionality Benchmark to the four largest retail banks in the US.
What we found:
Big US banks offer solid, not-yet-splendid, mobile services. We employ 63 individual criteria in our Mobile Banking Functionality Benchmark methodology. The combination of weightings and scores for the criteria generates an overall score based on a 100-point scale. In our inaugural ranking, the four largest US banks posted an average score of 63 out of 100 – above our minimum standards but far from perfect.
Michael Masterson's book "Ready, Fire, Aim" is one of my favorites. Masterson, a serial entrepreneur who has built dozens of businesses, some to $100 million in revenue and beyond, explains that the biggest determiner between success and failure is how quickly we get going and execute…even if the plan isn't perfect. Spot on!
But, Masterson also takes great care to explain how critical (and often misunderstood) being truly "ready" is, and that "firing" without actually being ready is as bad as if not worse than delaying for perfection. So what do we do? Where do we draw the line when it comes to projects like client virtualization, with hundreds of moving parts, politics galore, and very little objective, unbiased information available?
Answer: The winners will get going today…now...and will get ready by talking to the people their work will ultimately serve, and learn enough about their needs and the technology and best practices to avoid the mistakes most likely to result in failure -- knowledge that they will acquire in less than 90 days. The fire process starts the moment they make an investment in new people or technology, and the aiming process continues through the life cycle of the service, steadily improving in value, effectiveness, and efficiency.
I recently spoke with a Forrester I&O client looking for “incident classification best practice.” I knew that I should have had knowledge of this, or at least access to it, but all I had was a loose set of guiding principles that are probably more “common sense” rather than “best practice.” I was happy to talk with the client but wanted to know what I had missed.
Google seemed a great place to start. After all, Googling “ITIL” results in 21 million hits (I do appreciate that not all of these will relate to the IT service management best practice framework though). So I Googled “incident classification best practice” (plus “incident categorization best practice”) and was surprised at the results. Well, the LACK of results. There was no freely available advice or guidance on this subject.
The main reason for my surprise is that, with the wealth of IT service management best (or good) practice out there (especially with ITIL espoused as THE framework of IT service management best practice), this is one area where I definitely think that value could be derived by documenting successes and the pitfalls to avoid.
Given that many organizations adopting ITSM best practice, or ITIL, will start with the service desk and incident management, the creation of a robust incident classification hierarchy is something they will need to do. A similar opportunity also arises when organizations switch between competing ITSM products as part of the well-documented ITSM tool churn. For others it is relevant when the realization sinks in that the existing incident classification hierarchy is cumbersome and ineffective. Incident classification is important, so where is the best practice?
A few months ago I wrote here about our benchmark of the sales content and functionality of UK banks' sales sites. My colleague Vanessa Niemeyer has just published a benchmark of the big four Australian banks' sales sites. Crushingly for an Englishman, the Australians beat us. The four Australian banks achieved an average score of 56 (out of 100), compared with an average of 48 for the British banks.*
National Australia Bank (NAB) came top, just ahead of Westpac in second place, with Commonwealth Bank of Australia not far behind. The Australian banks demonstrate a series of good practices in their application processes, such as cross-selling during the application and automated confirmations. We highlight many of the good practices that the eBusiness teams at the Australian banks have developed in the report which is available for Forrester clients here.
Yee Hah! The worst recession since the Great Depression was declared officially over in June of 2009. We should be feeling great, since all things considered, the insurance industry fared pretty well when it came to how it emerged from that dark tunnel. But except for one notable role voice, insurers, unlike their banking peers, are still holding back from growing the business. How do we know? We took a look at nearly 5,000 inquiries that Forrester answered for insurers, bankers, and securities firms in the wake of failure of Lehman Brothers to just after this May’s Flash Crash.
What was on the minds of insurers during these six quarters? For starters, insurers:
Asked more questions than their financial services peers. Of the three segments we looked at, insurers asked half of the inquiries we fielded—2,500 versus nearly 1,600 and 600 for banks and securities firms, respectively.
Framed more than half of those questions around risk. Insurers didn’t veer away from what got them through the recession intact (indeed, from the very nature of their business)—managing risk. Even questions about application development strategies were framed as a risk question, with most insurers seeking validation that they were following in the well-worn grooves of others in insurance (and other industries) before them.
Posed too few questions about growing the business. Unlike their banking and securities siblings who asked questions about growing the business through new product launches, up-selling and cross-selling, or luring new customers away from competitors, insurers, with one big role-based exception, did notreflect that Q2 2009 economic inflection point.
When it comes to home improvement, I'm barely competent. My biggest hurdle is ignorance: when I was growing up, no one in our family was a do-it-yourselfer. Unless I had the opportunity to watch the handyman, electrician, or plumber fixing a problem, and that person was patient enough to let me observe, I had zero experience with these tasks.
Fast forward to a couple of years ago, when I signed up for installing hardwood floors in our home. Friends had said that it wasn't as hard as it looked, and the staggering quotes from contractors provided the incentive for forging ahead, despite my ignorance.
After buying the tools and digesting the instructions, I started on the first room. My first attempt was a hilarious escapade, which resembled a horizontal variant of Jenga more than anything that you could describe as "home improvement." After taking a break for a few days, I figured out where the project had gone wrong, made adjustments, and finished the room.