For CIOs, finding a clear path forward in the Business Technology (BT) Agenda can seem daunting, as you work to balance critical operational requirements with new initiatives designed to help your organization win, serve, and retain customers. But there are trailblazers in your organization. Forrester continues to see spending on technology spread and move out of the CIO’s organization and into the business. In North America companies of more than 250 employees, 70% of technology spending is either business led or heavily influenced by business. That part is not new, but it is increasing.
Specifically 50% of business managers, directors, and vice presidents are increasing their departmental budgets on technology products and services over the next 12 months.1 In fact, 16% of these business leaders are increasing their spend by more than 10%.2 This isn’t shadow IT in action; it’s the new way of doing business. Within your own organization a minority, but important, population of business leaders are aggressively investing in technology products and services to achieve three essential business goals. Over the next 12 months, the 16% of North American business leaders dramatically increasing their spending are focused on:
Empowered customers, armed with ever-increasing digital capability, increasingly expect any information, any service, at their moment of need. We call this the age of the customer. Innovative brands, from Delta to Southwest, T-Mobile to Verizon, Home Depot to Walgreens, and Caterpillar to Rolls Royce, are sharing with Forrester how they are disrupting the way they work to meet their empowered customers’ needs, to become customer-obsessed. Becoming customer-obsessed gives you, the CIO, an unprecedented opportunity: to overcome the nagging frustration of IT gravity that suppresses your and your team’s ability to influence the direction of your business, to build new competitive advantage. But you have to be willing to change the way you work.
You’re in an enviable position and are more essential to your firm’s success than ever. Together with your CMO, you have the best overall knowledge of your customers and the technology know-how to deliver a superior customer experience and drive growth.
We’ve begun to identify how leading firms change their operating models to deliver more value and become truly customer-obsessed. Much of that change falls on the CIO to drive. This research is ongoing, but the actions leaders take to shape their customer-obsessed operating model — focused on customer loyalty, innovation, and most importantly, growth, and fueled by customer insight — are becoming clear:
Rapidly evolving customer expectations continue to drive changes across all facets of business. Consumers and business customers increasingly expect real-time access to status, service, and product information. Rapidly changing consumer expectations ripple throughout the supply chain, shortening product cycles and requiring more agile manufacturing capabilities.
Forrester believes that 2015 will serve as an inflection point where companies that successfully harness digital technology to advantageously serve customers will create clear competitive separation from those that do not. CEOs will shift more investment funds to creating digitally connected products and solutions. Products like connected cars, connected running shoes, or connected aircraft turbines are creating new value propositions that tie these products closer to the customer engagement life cycle and help create new business models. Data as a product or service will create new revenue and customer value streams. For example, sensor-embedded tractors already generate data that power John Deere’s FarmSight service. And as industrial players like General Electric, Philips, Robert Bosch, and ABB learn to act more like software companies by creating value through software, their underlying business models will change rapidly.
As businesses pursue digital transformation, their CIOs will reset their priorities accordingly. Together with my colleagues Bobby Cameron, Nigel Fenwick, and Jennifer Belissent, we brought together the top predictions for CIOs in 2015. In particular, we predict that CIOs will:
For as long as there have been children and travel, frustrated parents have been subjected to repeatedly hearing a simple, “Are we there yet?” In their innocence, children seem to understand that all journeys should lead to a final destination; with those journeys never reaching their destination quick enough.
In 2015, Forrester believes CMOs will step forward and take responsibility for turning the enterprise toward the customer, evolving their role into the engine that fuels customer-centric company growth. It’s time for CMOs to cultivate the trust, respect, and collaboration across the entire C-suite and use that influence to ask for the right to not only hold but also turn the keys to the customer.
My colleagues, James L. McQuivey, Moira Dorsey, Laura Ramos, Sarah Sikowitz, Tracy Stokes, and I therefore studied the landscape and expect CMOs to seize this new opportunity to both shape their personal success and accelerate the growth of their organizations in 2015. In particular, we predict that:
It’s a fact: Marketers in Asia purchase digital technologies without involving the tech management department. They do it because they believe that:
Digital technologies are key enablers of successful marketing strategies. Customers in Asia Pacific in general, and in Singapore in particular, are always connected and empowered by technology to access the right information in their moments of need. They increasingly value — and do business with — organizations that provide them with experiences that are effective, easy, and emotional across all customer touchpoints. It’s not a surprise, then to see marketing professionals — just like their colleagues in sales, product management, and customer service — source digital technologies to enable such experiences.
The tech management department hinders their business success. This is the more worrying part, but if you take a step back, as a technology management professional, you understand why. You work with technology life cycles that are oriented toward core business, back-end systems like enterprise resource planning and therefore are risk-averse and slow. However, marketers need tech management professionals who are open to innovation, experimentation, and moving toward a risk-tolerant, agile life cycle that supports digital experience delivery.