Over the past few months I have spoken with a lot of CIOs, customer experience professionals, marketing professionals, and BT strategists in both the public and private sectors in Australia about their organization’s or department’s mobile strategy. This culminated in a number of meetings in Canberra last week, where I got a great feel for how mobile strategies are playing out within the Australian federal government.
While there is a broad spectrum of maturity when it comes to embracing the mobile mind shift, the good news is that everyone I spoke with recognized not only how important mobility is to existing business processes, but also that mobile will transform their customer base and their organization.
It was interesting to note that the conversations I’ve been having with private-sector organizations about mobility usually involve both someone from the CIO’s department and someone from marketing (sometimes CX, sometimes management, sometimes channels). Mobile initiatives are generally partnerships; while the business side leads these initiatives, they also involve the technology department. In contrast, in the public sector the mobile initiative is often led by the technology department — and often by the CIO herself.
The government of Singapore has released its 2014 budget, which includes S$500 million (US$400 million) to help drive economic changes at small and medium-size businesses (SMBs). This spending will focus on:
Often I hear from clients or read in industry publications (including those by my Forrester colleagues) that the business is spending more on technology. They almost always refer to this spend as “rogue” or “shadow.” But this phrasing shows a perspective from sourcing and other IT professionals that is parochial and, worse, dangerous to their ability to collaborate with those business stakeholders.
Why? Because saying that the business’ IT spend is shadow spend implies that they are taking something from the IT group. However, the reality of the situation is that business buyers like CMOs are buying what they always bought – advertising, marketing tools, database list management, for example. The difference now is that all of those things are now technology-dependent. Any CMO or other executive buying these offerings has a very logical question when asked about bringing in IT – “what makes IT think they know more about this stuff than I do?"
Still not sure if the business is actually engaging in “shadow IT spend?” Here are a few questions to ask yourself:
Is this a product category or supplier IT has experience with? Most IT SVM teams haven’t negotiated with digital agencies like Ogilvy or TribalDDB before. Also, note that if it’s a division you haven’t worked with, the answer to this question is still “no.” – such as when your company’s supply chain team is working with PwC’s risk team – but you’ve only ever worked with PwC’s IT strategy group. This then validates the business users’ view that they’re better placed than IT SVM to do the negotiation because of their knowledge of the vendor and its solution.
Disclaimer: I am not a political analyst, and this post is not intended to promote any political party.
December 8 was an historic day for Delhi: The Aam Aadmi Party (AAP), which arose from the anti-corruption movement of Anna Hazare a year ago, achieved a spectacular result in Delhi’s assembly elections — one far beyond anyone’s expectations. The party won 39% of the total assembly seats, sending Congress (which is India’s oldest party and had ruled Delhi for the past 15 years) plummeting to third place.
AAP’s rapid rise and strong showing highlight a fundamental shift in India’s political system toward citizen engagement and empowerment, especially in urban and semiurban areas. In particular, India’s youth are ready to take risks to realize their hopes and aspirations. About 350,000 18- and 19-year-olds have recently joined the voter rolls and saw in AAP the possibility to change the existing political system. And AAP was in tune with them, putting volunteers to work on social media platforms to connect with citizens on issues like corruption.
Indian CIOs should sit up and take heed, because just as empowered citizens can disrupt traditional politics, digitally empowered customers will disrupt businesses in every industry. Forrester calls this the age of the customer, and we define it as:
A 20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.
You must prepare to deal with this disruption and understand what you must do to make your organization customer-obsessed:
The age of the customer is a 20-year business cycle in which the most successful companies will reinvent themselves to systematically understand and serve increasingly powerful customers. Re-engineering your company to become customer-obsessed will be hard work, but savvy C-level executives I’ve been speaking with about this tectonic shift immediately grasp the opportunity.
I spoke about the age of the customer today at LeWeb Paris (you can see the video here, and my slides here) where I focused on one early element of customer empowerment - the mobile mind shift. Your customers expect any information or service they desire be available to them on any device, in context, at their moment of need. Forrester’s global Mobile Mind Shift Index measures how far along a group of consumers are in this change in attitude and behavior.
To serve these customers, you will have to move from systems of record to systems of engagement. Apps are just a small part of that equation. Instead, we’re talking about re-engineering your entire company to deliver great digital experiences. Your brands will compete against Google, Microsoft, Oracle, and Amazon for setting the bar for great customer experiences. What It Means: In the future, every company will be a software company. Software is the new business currency more important than financial capital.
Telefónica invited us recently to its European Analyst day at the headquarters of Telefonica UK (O2) in Slough. Jose Luis Gamo Global Solutions CEO Multinationals started off the day with an ambitious outlook on strategy and revenue growth. He highlighted Telefónica plans to deepen customer engagements by addressing their needs for global contract consolidation, as well as demands for M2M solutions, big data & s analytics and cloud services. Telefónica certainly has a lot to offer. But is Telefónica doing enough to position itself well in the evolution to markets driven by customer experience? We believe that there is potential because:
Telefónica is increasingly competitive in winning global enterprise network contracts. After the global landmark deal with DHL, Telefónica has added large companies including Ferrovial to its customer base. Telefónica, the largest European operator by capitalization, is increasing contract values with existing customers through cross selling activities. Their ability to do so is enabled by a demonstrable focus on the following initiatives: Strengthening professional account management, increased commitment by Telefónica group to the enterprise market, as well as initiatives to improve service management, the technical architecture, customer services and the terms and conditions.
With a weakening economy, skyrocketing food prices, and an attrition rate of around 14%, Indian CIOs’ biggest worry is increasing the salaries of their IT staff. Data from Forrester’s Forrsights Budgets And Priorities Survey, Q4 2013, indicates that 71% of Indian CIOs will increase their spending on IT staff salaries and benefits in 2014 — tops in the Asia Pacific region (figure below).
In return for the increase in staff salaries, Indian CIOs will face two challenges:
Increased pressure from CEOs to contribute to the company’s top line.By 2016, 70% of Indian CIOs will report to CEOs. As the boundary between IT and business blurs further, CEOs will get more directly involved in business-led technology discussions as a means to differentiate their organization and drive business growth. They’ll look for new technology capabilities to respond to customer needs better, faster, and cheaper — and won’t be satisfied with an IT organization that merely keeps the lights on.
The need to retool their IT teams. All too often, IT lacks business-oriented communication skills and team members rarely or never share business knowledge with each other. IT staff continue to be order-takers. The biggest challenge for CIOs today is how to make their technical people more business-savvy; this problem will only get more difficult as pressure from the business increases.
Last week I attended the excellent FutureStack conference. This was the first customer conference by New Relic, the Application Performance Management (APM) and Monitoring company. It was great to see how passionate their customers are and how they realize the strategic importance of monitoring. Well done New Relic! The keynotes and track sessions at this event were great because they did not just focus on technology but addressed the future skills and competencies required for today’s business technology professional.
[note: this was written live last week while I was attending Finovate]
Greetings from the Big Apple! I’m here attending the fancy schmancy Finovate Fall 2013 conference featuring tech solutions and innovations from – and for – the financial services industry. Here are some of the offerings and presentations that stood out for me, in the order they were presented at Finovate:
Kofax offers process automation software for lenders, but the big takeaway for me was their recent expansion of mobile, cross-channel, and multichannel analytics for financial providers. Focused on how customers shop for a loan, the dashboard and data are digestible and actionable. The jury’s still out, but strong analytics and easy-to-use tools can help banks improve sales in their lending lines of business.
MoneyDesktop offers digital money management tools – also known as personal financial management or PFM – and their demo at Finovate continued to show their strengths: Nifty tools, clean design, and intuitive UI and UX. The question mark for banks, however, continues to be how well integrated – or better yet, embedded – the experience can/will be for end users.
Like it or not, the success of your customer experience initiatives depends on business technology.
That’s because the quality of customer interactions with your brand results from a complex system of interdependent people, processes, policies, and technology that we call the “customer experience ecosystem.” And just like a natural ecosystem, when your CX ecosystem gets out of balance, every part of it suffers — especially your customers.
An increasing number of CIOs, enterprise architects, and application developers get this. That surprises many of the marketers and other business people I talk to on a regular basis. But it shouldn’t: Business technology leaders are ideally placed to see the connective technology tissue needed to create a standout omnichannel customer experience.
To help shed insight into the complex interplay of customer experience and business technology, I recently sat down with Stephen Powers, Forrester vice president and research director serving application development and delivery professionals, to record a podcast. You can hear it in its entirety below (episode 1) or choose topic-sized cuts (episodes 2, 3, and 4).