The pace of business – heck, the pace of life, gets faster and faster. Faster processing, faster delivery, faster innovation – and faster adoption and abandonment of that innovation -- is the reality we all live in today.
Leaders run fast businesses to win and to stay apace or in front of dynamic customers and disruptive competitive forces. They can’t out-slow the competition. Speed is the only option.
I had the pleasure of participating in a webinar panel to discuss what it means to work at one speed (fast) versus at two speeds as bimodal IT advocates. We discussed why businesses are forced to go fast, the reality and downside of a bimodal IT strategy, and the strategies and approaches to winning based on speed. Here is a quick view of the ground we covered.
The first part of our discussion focused on the factors that are making companies operate at fast speeds. Broadly, it comes down to three factors:
Hyper-adoption and hyper-abandonment: Customers are willing to rapidly try, use, and then possibly discard content, apps, and services in a world of seemingly infinite choices and extremely low cost to entry and exit. This dynamic fundamentally changes – speeds up – what it means to “have” a customer.
CEOs and their leadership teams are at a crossroads as technology underpins virtually all customers’ expectations and unlocks new sources of customer value. The choice is rather straightforward: invest heavily in business technology (BT) to win, serve, and retain customers, or flounder under the weight of legacy IT.
This is no time to hedge. Strategies like bimodal IT that advocate for silos and two operating speeds may appeal to risk-averse leaders, but bimodal won’t get the job done. In fact, it works directly against the key operating principles of customer-obsessed firms in B2B and B2C industries like General Electric, Netflix, and USAA. These firms and other leaders use the customer as the central design point for their business technology strategy and strive to be:
It’s that time of year! The time when every prognosticator comes up with their predictions for the next year. And this year my colleague Pascal and I took the lead in developing our 2016 predictions for the CIO role.
Rather than call out banal and obvious trends I wanted to make a stronger call on the CIO role in particular. In part this is because so many people gleefully post blogs predicting the demise of the CIO. And in part simply because it sometimes feels like I see the role of the CIO differently to many; as first and foremost a business leader.
So will 2016 be the end of the CIO role as we know it?
“No" is my simple answer. In 2016 the Age Of The Customer will further accelerate the role of technology in creating new sources of customer value to drive revenue. As a result we’ll see more and more CEOs expecting their CIOs to help lead their firm toward a clear digital future.
CEOs realize that, increasingly, future growth is tied to their ability to continuously deliver new digital services that create value for customers – across both B2C and B2B business environments. But failure to meet evolving customer expectations will result in losing customers and ultimately lower revenue growth. Without a technology team focused on building the digital platforms of tomorrow, companies cannot hope to keep up with their evolving customer expectations. 2016 will be a pivotal year for CIOs and CEOs – one that will see a significant change in leadership thinking when it comes to a company’s technology capabilities and digital assets.
We’ve been telling you that you need to transition from strictly managing an IT Agenda to owning a BT Agenda, too. 2016 is the year that needs to happen: your CEO will be looking for you to drive digital in your company — and increasingly digital is becoming your business.
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers.
The scary news? Only a quarter of businesses have a coherent digital strategy to create customer value as a digital business. The onus is on you to deliver that strategy. As CIO, you need to offer a holistic view on the digital transformation that encompasses not just how your firm can harness emerging technology to create customer value, but how your team can help drive synergies across the customer experience ecosystem. We believe the only way to achieve this is a customer-obsessed operating model that will permeate throughout your business and focus on six elements: structure, talent, culture, metrics, processes, and technology.
Here are three things you can do in 2016 to win at driving digital:
The age of the customer demands more of companies, forcing them to change how they develop, market, sell, and deliver products and services. In response, CIOs must invest in business technology (BT) — the technology, systems, and processes to win, serve, and retain customers. At Forrester’s Forum For Technology Leaders in Lisbon (June 2-3), leaders from firms like BMJ, Portugal Telecom, BBVA, Mastercard, Alliander, DER Touristik and UniCredit will share strategies that you can use to achieve Read more
CIOs will be orchestrators of digital ecosystems to boost innovation, production, and go-to-market capabilities. In the age of the customer, every business needs to put the customer at the center of marketing, sales, service, and delivery in order to support the brand promise.
Business ecosystems comprise many market players, including suppliers, distributors, customers, competitors, and government agencies. People, processes, and technology are the fundamental building blocks of business ecosystems. They evolve as a form of collaboration between these market players as part of the process of developing and delivering products or services. Now business ecosystems are going digital.
The digital transformation is a huge challenge and opportunity for each individual business. Business processes are changing significantly as a result of real-time information exchange, the mobile mind shift, always connected and mobile devices, and the opportunity to collect and monitor structured and unstructured data. As a business enabler, no CIO can ignore the digital transformation. Digital ecosystem management is much more than a sourcing project: According to Capgemini, businesses with the digital maturity to build digital innovations and to drive enterprise-wide transformation are 26% more profitable than their average industry competitors on a range of measures including EBIT margin and net profit margin. The CIO must actively help the organization to deliver value in the emerging digital ecosystems.
Earlier this week, TCS launched its CrewCollab Solution at the Singapore Aviation Festival. The sector has attracted a lot of investments from service providers lately with companies like NIIT Technologies, Pactera, Hexaware and others strengthening their portfolio of software assets for airlines. The TCS CrewCollab mobile solution – co-developed in partnership with Singapore Airlines – fills an important gap in the digital transformation strategy of airlines globally. Why is that?
The in-flight experience remains disjointed from the rest of the customer journey. Airlines like Delta, United and Emirates have already invested in developing successful digital customer experience initiatives covering the pre- and post-flight phases of the customer journey. However, airlines typically struggle understanding and serving their customers as they board the flight, customer data being seldom available to the cabin crew.
My colleagues Sophia Vargas, Michael Yamnitsky, and I have just published a new Quick Take report, "HP Announces Innovative Tools That Will Bridge Physical And Digital Worlds." Sophia and Michael have written about 3D printing for CIOs previously, and all three of us are interested in how computing and printing technologies can inform the BT Agenda of technology managers.
Fresh off of the announcement that HP will split into two publicly owned companies, one of those new entities -- HP Inc, the personal computing and printing business -- announced its vision for the future with two new products that help users cross the divide between physical and digital. The Multi-Jet Fusion 3D printer represents HP's long-awaited entry into 3D printing, with disruptively improved speed and quality compared to existing market entries. The sprout desktop PC combines a 3D scanner with a touchscreen monitor, touchscreen display mat, and specialized software that allows users to scan real objects, then manipulate them easily in digital format.
In both cases, a video demonstration helps you to really grok what the product is about.
CNET posted a video tour of the Multi-Jet Fusion 3D printer on Youtube:
I had the pleasure of conducting a Digital Maturity Assessment workshop with a colleague from Forrester Consulting for about 20 companies in Sydney recently. The majority of participants were from the Australian financial sector, with heavier representation from marketing departments than technology management. While the session was an abridged one intended to discuss, understand, and determine where the participants were on their digital business journey, it was productive and revealed that:
Participants knew what to do with digital business transformation, but struggled with how. Participants had started on the digital transformation journey, but needed to address cultural and organizational gaps to fully drive transformation. These issues include who owns the digital transformation agenda (does it sit with the CIO or CMO?), how to bridge the communication chasm between the CIO’s department and the lines of business, and how to measure results to drive transformation in a positive direction.
Here at Forrester we are busy planning our upcoming Forum For CIOs And CMOs. With a theme of “Building A Customer-Obsessed Enterprise” the event explores the partnership between marketing and technology leaders. But what about our government clients? The role of marketing is associated with the private sector. Companies employ marketers to identify their target markets and the opportunities for providing goods and services to them. Public-sector organizations don't typically have the luxury of choosing their target market or their products and services. Or at least that’s what most organizations think. But even if that is the case, it doesn't mean that these organizations shouldn't get to know their "customers" and understand how best to meet their needs. While the service might be prescribed by legislation or regulation, public organizations can influence the customer experience, and the rising focus on citizen engagement mandates they do so.