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.
[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).
In August this year I am heading down to our nation’s capital to take part in the annual itSMF Australia event – LEADit. I have taken part in this event to a greater or lesser extent over the past few years across Australia – Sydney, Perth, the Gold Coast and now Canberra. As an analyst who broadly covers the Service Management space (as well as a previously ITIL qualified practitioner), this event is the mecca for those interested in service management in Australia.
Year after year at this event, I see a fair amount of change in the content and focus, but little change in the thinking, and little real movement in the implementation or improvement of the processes – a recent survey between itSMF-USA and Forrester displays the current maturity levels of processes in organisations:
Here we are – years (decades?) after the first ITIL books were written, and demand management is STILL immature. Even financial management has barely shifted in maturity over the past few years. Why is this the case?
UPDATED 26th June 2013 As you may be aware Microsoft has finally introduced its Office Suite for the iPhone (launched in the US on Friday 14th June, and now available in much of the rest of the world according to my sources). This is great news — it has been one of the real holes in the iOS application store and in high demand in many businesses we speak to (although will be MUCH more valuable when it's available as a native iPad app). Over the next week or so it is likely that many of your senior executives will read this news — as it has already made the consumer press. Soon they'll be knocking down your door asking how to get access to it.
However, the licensing model that Microsoft has chosen is one to encourage the uptake of the Office 365 Suite. ONLY those users with a MS Office 365 license will be able to activate the apps on their iPhone. This may mean a significant licensing impact for you. If, like many companies, you have not yet made the move to Office 365, your company’s employees will not be able to use the Office apps on their iPhone. There is a big risk here that you will see employees activate the license themselves and charge it back through the traditional expenses channel. And if senior management are doing it, it is hard for them to say no to the more junior ranks.
I reached out to Duncan Jones, one of our resident sourcing pros and Microsoft licensing experts to get his analysis of the situation. Here are his thoughts:
Last week, Forrester hosted a breakfast roundtable in Sydney for approximately 20 tech vendors seeking to capitalize on current IT spending trends in Australia and New Zealand. With expected IT spending growth of nearly 4% in 2013, the A/NZ market is still going strong. However, this good health hides major shifts, including the increased role that business decision-makers (BDMs) are taking in direct IT purchasing in areas like staff, products, and services. As a matter of fact, Forrester expects the percentage of IT budgets that IT directly owns or controls to decrease by 2% to 5% between 2012 and 2014 in most A/NZ organizations.
Forrester’s Asia Pacific team is working at a fast and furious pace preparing for our CIO Summits in Singapore, Sydney and New Delhi throughout September. As the content champion for the event, I have been working with about a dozen regional CIO speakers to prepare presentations on their journeys from IT to Business Technology, which is the focus of our summits.
Our distinguished line-up of CIO speakers provides an insightful cross-section of the countries, cultures and industries they span. As they all embark on their respective BT journeys, it has become clear that they must each chart their own course and sequence activities in a way that makes sense for their unique circumstances. Nevertheless, across these varied landscapes I have identified three key themes that are critical to the BT journeys regional CIOs will be forced to make:
Taking Care of the Basics: Although innovation and the power of BT are alluring, the BT journey starts with some basic plumbing. All of our CIO speakers have emphasized that their BT journeys wouldn’t have taken the first step without first ensuring they were doing the basic things well. They cannot convince the CEO that they deserve a seat at the table of business strategy without showing they know how to handle the basics first. In our Singapore Summit, Krishnan Narayanan, Managing Director and Head of IT at UBS will share his experience and provide recommendations for setting a solid foundation to enable the BT transition.
As regular readers of my blog will know, I’ve been talking about moving beyond alignment for a number of years now. The fact is, too many CIOs have been able to get by on the basis of managing the technology black box — and CEOs and CFOs have been complicit in allowing these same CIOs the freedom to do what they want within tightly controlled budgets, not wanting to sully their hands with “all that technology stuff.” But those days are rapidly coming to an end. The technology genie is out of the bottle; today’s business-unit leaders are more dependent on technology than ever before, and they are also much more tech-savvy. CIOs can no longer hide behind the technology black box — it’s time to change the IT game forever. It’s time for IT to drive business results and connect all technology investments to business outcomes.
Today’s new CEOs are looking to CIOs and IT to make a direct impact on business goals from investments in technology. While every business must make technology investments to sustain operations, IT must move beyond simply keeping the lights on and connect the dots between effective growth strategies and new technology investments. This requires a different set of technology and business skills: different people, process, and technology in the IT organization. In fact, the organization is so different we now call it the business technology organization, or BT. The distinction between IT and BT is subtle but important. BT represents the fusion of the IT organization into the rest of the business. In a BT organization, the lines between IT and business units are blurred. What is important is a focus on the roles needed for effective business technology strategy execution. What’s not important are reporting lines.