While you no doubt answered wellness, the reality is that when you look at the typical change programs in a major corporation today, Band-Aids are far more common. But that's hardly surprising given the short-term pressures facing organizations today. Let's reflect on a few examples:
Those in the financial services industry are still struggling to deal with the rash of new regulation post meltdown. Following a spate of high-profile failures, risk management has taken center stage, while in others there is a hurried review of operating procedures in far-flung corners of the corporation.
In virtually all industries, others are trying to respond to hemorrhaging sales statistics. Customers are no longer happy to keep quiet when they get a bad service experience - they tell their friends and followers via Facebook and Twitter. Customer churn is rampant.
Or is it increased competitive pressures? More and more new entrants are turning up to challenge and disrupt the incumbent business models of many established firms. They don't have the baggage of high-cost business models and 12 layers of management.
Arguably, mobile is currently the hottest trend driving both business and technology strategies for executives. If you need any additional evidence, just look at all of the enterprise buzz Apple has generated with the iPhone 5 launch. Unfortunately, today’s business and technology leaders continue to respond to the mobile opportunity with the wrong answers. Business leaders respond to mobile with, “Let’s build a really slick mobile app, put it up on iTunes and we’re done!” Technologists respond to mobile with, “We need a strong BYOD policy and to put device management tools in place!” Both of these responses completely overlook the fact that underlying legacy applications and business processes need optimizing for the mobile experience.
We run into examples of this “lipstick on a pig” approach to mobile all the time. In fact, I ran into a perfect example of this recently when I needed to order a pizza for my family after a very hectic Saturday afternoon. When I picked up my mobile phone to call the pizza delivery place, a light bulb went off over my head. Instead of dialing the pizza delivery company and waiting on hold for 15 minutes, why not download its mobile app in two minutes and order my pizza within another two minutes. I figured I could shave off ten minutes of wait time by simply downloading the pizza delivery company’s mobile app.
I recently finished reading Moneyball, the Michael Lewis bestseller and slightly above-average Hollywood movie. It struck me how great baseball minds could be so off in their focus on the right metrics to win baseball games. And by now you know the story — paying too much for high batting averages with insufficient focus where it counts —metrics that correlate with scoring runs, like on-base percentage. Not nearly as dramatic — but business is having its own “Moneyball” experience with way too much focus on traditional metrics like productivity and quality and not enough on customer experience and, most importantly, agility.
Agility is the ability to execute change without sacrificing customer experience, quality, and productivity and is “the” struggle for mature enterprises and what makes them most vulnerable to digital disruption. Enterprises routinely cite the incredible length of time to get almost any change made. I’ve worked at large companies and it’s just assumed that things move slowly, bureaucratically, and inefficiently. But why do so many just accept this? For one thing, poor agility undermines the value of other collected BPM metrics. Strong customer experience metrics are useless if you can’t respond to them in a timely manner, and so is enhanced productivity if it only results in producing out-of-date products or services faster.
The pace of business change is accelerating. The reason why it is accelerating is the mushrooming of disruptive factors: your customers expecting anytime/everywhere access to you through their mobile devices, competitors leveraging big data technology to rapidly execute on customer-centric value propositions, and new market entrants with lean business models that enable them to outmaneuver your business.
Most companies deal poorly with disruptive change. If they are the “disruptor,” seeking to use these disruptive factors to steal market share, they often run without a plan and only after, for example, a poor mobile app customer experience, realize what they should have changed. If they are the firm being disrupted, the desire for a fast response leads to knee-jerk reactions and a thin veneer of new technology on a fossilized back-office business model.
This is where the value of business architects and business process professionals comes to play: you help your company plan and execute coherent responses to disruptive factors. That’s why your company needs you to attend Forrester’s Business Architecture & Process Forum: Embracing Digital Disruption in London on October 4 and Orlando, FL on October 18–19, 2012.
We’ll start with James McQuivey describing how technology is changing the playing field for disruption in his keynote: The Disruptor’s Handbook: How To Make The Most Of Digital Disruption.
We’ll look at how firms have used technology to rethink their operating models, eliminating low-value activities to focus on what their customers value in Craig Le Clair’s Implementing The Different In The Age Of Digital Disruption.
KANA Software is acquiring Sword Ciboodle — a Scottish case management and BPM company and a strong performer in Forrester's 2011 Wave™ on dynamic case management. The Ciboodle platform has a strong presence in the service request area of case management and scored particularly well in the application development, automation, and event management criteria. It also proved you can build best-in-class software while headquartered in a Scottish castle.
The acquisition makes a lot of sense. Both companies circle around the customer service area — with KANA focusing on the self-service channel with advanced email and knowledge strategies that leverage the social channel, and Voice of the Customer text analytics. All with the goal to reduce service costs by having customers help themselves — without going crazy in the process. But KANA had very little in contact centers themselves. Sword plugs this gap with over 50 customers in contact centers that use BPM and case management to provide a process layer on top of systems — where green screens are not uncommon. But Sword had virtually nothing for the email and self-service channels.
Together the acquisition will free up KANA's R&D. Instead of beefing up core BPM and case engines, and internal enterprise social capabilities, it can now focus on mobile apps and enhancing overall outside in "listening" capabilities. Geographically the acquisition helps as well. KANA was 70 percent North American, but with the addition of Euro-centric Sword is now closer to a 50/50 split between North America and Europe, the Middle East, and Africa (EMEA).
Nowadays, there are two topics that I’m very passionate about. The first is the fact that spring is finally here and it’s time to dust off my clubs to take in my few first few rounds of golf. The second topic that I’m currently passionate about is the research I’ve been doing around the connection between big data and big process.
While most enterprise architects are familiar with the promise — and, unfortunately, the hype — of big data, very few are familiar with the newer concept of “big process.” Forrester first coined this term back in August of 2011 to describe the shift we see in organizations moving from siloed approaches to BPM and process improvement to more holistic approaches that stitch all the pieces together to drive business transformation.
Our working definition for big process is:
“Methods and techniques that provide a more holistic approach to process improvement and process transformation initiatives.”
Many business people still struggle to see the role of business processes in building better performance (i.e., business results). So I thought I would share this little hook that I developed within one of my consulting engagements. It is based around preparing bread: Mixing the components of the bread — the flour, yeast, and water — and then baking it all together for an effective result.
In your business, it is the dough rising that equates to achieving its performance objectives — however those performance objectives are defined.
Whether they’re aware of it or not, in most businesses the different ingredients are not well aligned or working together as well as they could be. Mixing the metaphors for a moment, the roles and actors are not rowing together in a coordinated fashion. Business process management (BPM) brings together a range of techniques and approaches — the BPM tool box. The components of this tool box help change agents in the business (the bakers) create their own special sort of dough. At the heart of that is an ongoing inquiry into business processes — if you like, the water that binds the flour (your people) with the yeast (the technology).
There may be other ingredients involved that add their own subtle contribution to flavor and texture. But cooking is not only about mixing the right quantity of ingredients; it is also how you mix them and how long you bake the mixture. You might think it is just a question of getting the right measure of ingredients. But first, it is necessary to decide on the sort of bread you want to make, how it is going to be delivered, and to whom. Alongside the choice of people (flour), the most critical element is the water (processes) — the ingredient that binds it all together.
Yesterday, Amazon launched an adjunct to its successful Amazon Web Service (AWS) elastic cloud offering. While we don’t normally comment on every product release, this one is significant — primarily because of who is doing it. The Simple Workflow service (SWF) clearly has nothing to do with Adobe’s Flash offering (although techno-nerds may initially think so, given the acronym).
So what was this all about? The business model is certainly interesting: an elastic, configurable workflow capability that’s distributed across any number of access points. Essentially, this will allow an organization to orchestrate processes in the cloud, linking participants up and down the value chain.
“Amazon Simple Workflow Service (Amazon SWF) is a workflow service for building scalable, resilient applications. Whether automating business processes for finance or insurance applications, building sophisticated data analytics applications, or managing cloud infrastructure services, Amazon SWF reliably coordinates all of the processing steps within an application.”
Pricing is initially free and then transitions into a blended, low-cost consumption model, with charges oriented around execution steps, bandwidth usage, how long the task is active, and signals/markers, etc. With usage charges at around $0.0001 per execution step, this gives you an idea of how small the operating overhead might be.
Customer service managers don’t often realize that data quality projects move the needle on customer satisfaction. In a recent Forrester survey of members of the Association of Business Process Management Professionals (ABPMP), of the 45% who reported that they are working on improving CRM processes, only 38% have evaluated the impact that poor-quality data has on the effectiveness of these processes. And of the 37% of respondents working on customer experience for external-facing processes, only 30% proactively monitor data quality impacts. That’s no good; lack of attention to data quality leads to a set of problems:
Garbage in/garbage out erodes customer satisfaction. Agents need the right data about their customers, purchases, and prior service history at the right point in the service cycle to deliver the right answers. But when their tool sets pull data from low-quality data sources, agents don’t have the right information to answer their customers. An international bank, for example, could not meet its customer satisfaction goals because agents in its 23 contact centers all followed different operational processes, using up to 18 different apps — many of which contained duplicate data — to serve a single customer.
Lack of trust in data negatively affects agent productivity. Agents start to question the validity of the underlying data when data inconsistencies are left unchecked. This means that agents often ask a customer to validate product, service, and customer data during an interaction — increasing handle times and eroding trust.
Reading the recent Harvard Business Review article from Tom Davenport et al., it occurred to me that next best offer (NBO) is actually a subset of what my colleague Jim Kobielus calls “next best action” (NBA). And when you couple that predictive thinking with advances in process mining (see Wil van der Aalst’s post and the Process Mining Manifesto), it clearly becomes possible to optimize operations dynamically on the fly. First of all, the organization could mine the existing system (the transaction logs of traditional systems or a newly implemented BPM/CRM system) to identify what happens today. This then enables you to identify the outcomes that are most interesting (or those you want to achieve) and then optimize the NBA accordingly.
We take for granted a process definition where the next action is predetermined by the arc of the process definition. But if we can do NBO in 200 milliseconds, we can also do NBA in a similar time frame. Directed arcs in process models and the business rules that go with them start to become a little redundant. This sort of combination (mining and NBA) enables wide-open goal-oriented optimization for all sorts of processes, not just those related to marketing and cross-sell/upsell ideas.