Four Lessons In Digital Business

Making Sense Of Digital Business: Four Can’t Miss Reports From 2014

Nigel Fenwick

In 2013 I wanted to help executives understand some of the fundamental changes that are happening in business because of the digital revolution. Big names capture the attention of the media – who in the USA could have failed to hear about the collapse of Blockbuster or Borders? Who in the UK could have failed to hear of the demise of HMV? When writing about these failures, most analysts highlight the disruptive companies that put them out of business; companies like Netflix, Amazon and Apple. But I wanted to know if there was something more fundamental going on that impacts the ability of an incumbent to defend against digital disruptors. So in 2013 I set out to research digital business successes and failures in an effort to uncover the secrets of digital mastery.

I captured insights from my research in reports published in 2014. Here’s my pick of the top four you should read to gain a deeper understanding of digital business (these reports are available to existing Forrester clients, non-clients can purchase them individually or download a summary from this page):

#1 The Future Of Business Is Digital  - The results of 18 months of research into what lies behind successful digital businesses were first published in March in this report. Originally published for CMOs and CEOs, the report was subsequently republished for CIOs as “Unleash your Digital Business”. This report highlights how digital business differs from traditional business; provides an overview of the customer’s dynamic ecosystems of value; and offers six strategies to help transform any business into a digital business.

Read more

Alipay Is Shaping Chinese Consumers’ Digital Lives

Vanessa Zeng

On December 8, Alipay celebrated its 10th anniversary by launching the latest version of its digital wallet. What makes this upgrade different and notable is its “10-year statement diary” feature. The statement diary contains data like when a user first made a purchase on Taobao, opened a Yu’ebao account, created an Alipay wallet, hailed a cab using Kuaidi Taxi, and followed a service window. Not only do these 10-year statements record every Alipay customer’s consumption experience, but put together they also trace the rapid development of online payments in China.

Alipay data indicates that, in the past 10 years, Chinese people have made 42.3 billion transactions via the platform, which now handles more than 80 million transactions daily. More people than ever are shopping on their mobile phones: as of October, Alipay counted 190 million mobile app users, and the proportion of online payments being made via mobile devices has exceeded 50%. The four regions with the highest mobile-to-online payment ratio are China’s underdeveloped western provinces: Tibet, Shaanxi, Ningxia, and Inner Mongolia. In addition, the proportion of Alipay users coming from the younger generation is increasing: 32%of all Alipay users were born after 1990, so the new main force of online shoppers is just now coming into its own and will only get bigger.

Read more

Let's Talk About Programmatic

Programmatic – one of digital marketing’s buzzwords of 2014. It seems today everyone is doing programmatic ad buying – and if you’re not, then some would say your media strategy is lagging behind. 

Most marketers are still trying to make sense of the programmatic buying space and answer questions like:

  • How should I be using programmatic and what can it do for my brand?
  • What types of programmatic technology should I be using?
  • Am I getting the most out of my current programmatic approach?
Read more

Another Year Brings Increasing Business Dissatisfaction But Also Opportunity!

John Rakowski

I know it's Friday and I hate to be gloomy just before the weekend but I could not let this wait. Last year, we (George Colony actually) released a report in which we highlighted that 32% of respondents to our Forrsights Business Decision-Makers Survey in 2012 stated that they believe their IT department hinders business success. Unfortunately in 2014, this figure has jumped to 43%!

This is really worrying for me and should be for you also because technology, and specifically digital technologies, are catalysts for commercial success in all industries. This means that I&O should really be a key partner helping drive strategies here but this rising dissatisfaction also highlights a trust issue – and without trust from our business co-workers we have no chance of changing the direction of this stat. This prompted myself and my co-worker Anthony Mullen in the Marketing Leadership role to research and write the report – “Five Ways To Impress Marketing And Support Digital Business Transformation” which has just been released.

Read more

Move Beyond Availability And Performance Monitoring With Software Analytics

John Rakowski

I put this blog together to support my new research report on ‘Introducing Software Analytics, A Key Business Technology Solution’. If you want to know why it’s key then please read on…

We all know how mobile apps and websites are changing the way we interact with services and products. Yesterday evening after watching England fulfill their expectations of being dumped out of the World Cup in the first round (technically we can still get through but need a miracle), I decided to do my grocery shopping. So I got out my smartphone, opened up the browser and within 30 minutes had created an online order which will be delivered this Saturday. I now take this service for granted.  In fact, I can’t envisage a world in which I have to go to a supermarket and actually walk around with a trolley anymore and I wonder whether my 19 month old daughter will ever experience the ‘delight’ of walking around a busy supermarket.

Read more

Why Usage-Based Car Insurers Need Don Draper

Ellen Carney

Don’t you hate when a company advertises a product but fails to make it easy to find and buy?

Mad Men’s Don Draper, who, in the 1960’s could have been as likely to work in insurance as advertising (but the story would have been not nearly so interesting), would have a field day with the findings from Forrester’s just published report, “The Next Act For Usage-Based Car Insurance”, the first in a four-report series addressing the UBI landscape in the US, Canada,and Europe and the future of UBI. 

Smart devices, smartphones, and smart cars are converging to create what should be a smart insurance choice for safe drivers and their insurers. The report examines American consumer interest and adoption of usage-based car insurance and the obstacles to purchase, many of which point directly to insurance eBusiness failings.

When Forrester last looked at the UBI market in 2008 (then termed “Pay As You Drive” or PAYD), consumers couldn’t get it because of a big distribution problem:  It was offered by few insurers in just a few states.  A couple of months ago, we decided to see just what had changed over the past five or so years when it came to consumer interest and purchase.  What did we learn?

Read more

Digital Business 2014 Infographic

Nigel Fenwick

Following the adage "a picture is worth a thousand words" we produced this infographic to support my keynote speech at the Technology Management Forum in Orlando (and the CMO CIO CX breakfast in Sydney). If you'd like to see the keynote, I'll be delivering it again at the London Technology Management Forum in June. Feel free to tweet and share the unedited graphic. (Click image to download a higher res PDF; also free to share unedited).

Next post: For CIOs The Journey To Digital Business Begins With The BT Agenda
Previous post: Getting The Right Digital Leadership

.

As US Health Plans Shift From Acquisition-Ready To Retention-Ready, It’s Time To Pay Attention To Digital Billing And Payments

Ellen Carney

One word describes the state of US health plan digital strategists at the end of 2013: exhausted! The October 1, 2013 open enrollment milestone for the public exchanges became not an event but an epic saga. Integration failures, wobbly deadlines, and substandard policies that became the walking dead stymied large numbers of potential plan buyers, who either gave up or stood on the sidelines. But through a lot of persistence, 8 million Americans had managed to enroll in the public exchanges by mid-April 2014.

But with the enrollment process behind them, these tired digital strategists can’t rest. It’s time to shift attention from getting customers to keeping them. And not surprisingly, what matters to consumers when it comes to picking health plans is whether their doctors are “in-network”. But other practical aspects of the health insurance experience also matter, like:

  1. Ease of resolving problems. When it comes to handling the nit-natty issues of plan maintenance issues like claims and payments, consumers want easy. That means that health plans have to make it easy for them to view their payment history, get their individual plan bills paid, monitor claims status, and access statements and tax documents online and increasingly through a plan’s mobile site, especially for that critical “young and healthy” segment.  
Read more

Getting The Right Digital Leadership

Nigel Fenwick

It's clear that digital leadership is needed to achieve the transformation to a digital business. But does a company need a single digital leader, or do all executives need to become digital leaders?

Last month I published a report on digital leadership that examined the DNA of early digital executives. From this research, we learned that all digital leaders must be able to deliver on digital competencies across three dimensions: strategic, transformational, and operational. The degree to which digital leaders need to emphasize each depends upon the organization's digital maturity (see figure).

What is clear from our research into digital business is that your business needs both the CIO and the CMO to join forces to enable the transformation to a digital business. In conjunction with Forrester's Forum For Technology Management Leaders, we'll be revealing a new piece of research on digital business in 2014. This research digs into the data to reveal that state of digital business across a range of industries — identifying who is currently leading digital initiatives. As well as delivering a keynote at the Forum based on "Unleash Your Digital Business," I'll also be presenting a track session that gets deeper into the question of digital leadership to help you answer the question of who should really lead digital business transformation.

Next post: Digital Business 2014 Infographic

Read more