Dawn Of A New Digital Reality

Nigel Fenwick

FitbitWe’re at the dawn of a new industrial revolution. And just as the steam engine and the spinning jenny transformed the world in the first industrial revolution, the new technology of this new industrial revolution will transform our world as we know it.

The seeds of revolution are all around us: More compute power now resides in each of our pockets than in the supercomputers of the eighties; we are rapidly approaching a point where each person on the planet is interconnected through a web of digital channels; billions of devices are capable of instantly uploading data about the device and its environment as an the internet of things; highly automated manufacturing plants will soon intelligently assemble custom products; and instant video communications now take place regularly around the world. All of these changes are already here. 

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Chief Digital Officer: Fad or Future?

Nigel Fenwick

Over the past nine months I've been interviewing chief digital officers and senior digital leaders across a variety of industries to gain insight into the emerging role of digital leadership. My colleague Martin Gill and I wanted to discover why firms hire chief digital officers and what they are responsible for — more importantly I was looking to discover what CEOs should be doing to set up their businesses for success in a digital world.

The initial findings from this research are published in "Chief Digital Officer: Fad or Future" (fee for non-clients).
 
One aspect of the research I'd like to highlight here is the need to think of digital as more than simply a bolt-on to your business. To create a digital business able to compete in the age of the customer, we need to think of building out a digital business ecosystem. I know what you're thinking — "not another ecosystem" — and yes, it's a very overused term, especially by consultants and analysts. But I simply can't think of a better term to describe the interconnected and codependent relationships needed in a fully digitized business (see diagram).
Firms need to develop a digital ecosystem
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Digital CX Teams In The Post-PC Era: Your Questions Answered

Sam Stern
Last month, I delivered a webinar about digital CX teams in the post-PC era. I described the importance of having a clear strategy for the digital customer experience and how it should align with the overall customer experience vision in nondigital touchpoints. I shared examples of how companies hire and train essential in-house skills like journey mapping and storytelling to avoid overreliance on partners. And I talked about how companies should take an ecosystem approach to organizing their digital resources. There were some great questions posed during the call, and I wanted to answer them here.
 
Q. What is the typical team structure of a post-PC CX team?
 
A. There is no one standard model for digital CX teams — we see a variety of different structures. Some teams, like the one at Target, are quite large and encompass many disciplines and skills. Others, like the team at Express Scripts, are smaller and focus more on the high-level vision and orchestration of projects. 
 
What is consistent across teams is that they build strong connections with key stakeholders throughout the company. Teams actively foster collaboration and skills development both within the team and with key partners inside and outside of their organizations. Many teams provide career paths for individual contributors and mentors for junior team members by promoting strong performers to manage subteams within the larger digital CX team. 
 
Q. What specific roles in a CX team are typical?
 
A. Typical roles include: 
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Digital CX Teams in the Post-PC Era

Sam Stern
We are now in the post-PC era. Ownership of connected devices continues to grow — the average US consumer now owns two or more connected devices — and they expect to be able to use those devices: 
  • Sequentially: starting a task on one device and seamlessly completing it on another. Data from Google shows that 90% of consumers who own more than one connected device have crossed devices in pursuit of their goals.
  • Simultaneously: using two devices at the same time to “multitask for efficiency.” Despite overwhelming evidence that humans cannot really split their attention among multiple tasks, 82% of global consumers believe that multiscreening makes them more efficient, and they act on that belief. 
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Get Bullish On Software: Three Data Points From Our Business And Software Decision-Maker Surveys

Kyle McNabb

I’m bullish on software — specifically design and engineering — and I’m starting to see that many of today’s business leaders share that opinion as they come to terms with digital disruption and the age of the customer’s impact on their competitive strategies. I hear this often as I travel to meet with both business and IT leaders, and I increasingly see it in the survey data we annually collect. What do I see in our most recent Forrsights Business Decision-Makers Survey, Q4 2012 and Forrsights Software Survey, Q4 2012 results? Software, from design through development, matters:

  • Business leaders have revenue growth first and foremost on their minds. On average, 70% of these business leaders place a high or critical priority on revenue growthcustomer acquisition and retention, and addressing rising customer experience expectations for 2013. Our data suggests business leaders are 50% more likely to identify these as critical initiatives than they do margin improvement or reducing operating costs. Growth and customer experience improvement take business priority.
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Digital Disruption Can Make TV Ads More, Not Less, Relevant

James McQuivey

Every few years we marketers think we have digital figured out. First it was websites, then it was about eBusiness strategy, then came social, and more recently, we're all about mobile. These are all good things, to be sure, but conquering any one of these – or all of them together – still misses the larger point: Digital disruption is bigger than any of them on their own, and it is nowhere near finished turning the marketing and advertising world upside down.

Consider the Super Bowl. Every year the big game captures more eyeballs and, along with them, more ad dollars. Some point to continued TV spend as evidence that people are in denial about the role of digital, as Adobe did with its clever spoof on Super Bowl ads this year. But note that some of the most prominent ads in Super Bowl 2013 encouraged an expressly digital component – from Budweiser's name-the-pony campaign to Oreo's crowd-pleasing Cream or Cookie campaign, tagged with "Choose your side on Instagram @OREO." The most elaborate of these was the Coke Chase, a Twitter-based real-time voting campaign that earned @cocacola nearly a thousand more Twitter followers on game day, according to Twittercounter.com.

These are worthy – and relatively cheap – forays into making TV ads more, rather than less, relevant in a digitally disruptive era. But these all miss the broader point about the power of digital. Digital won't just disrupt the way brands communicate with consumers, it will afford those brands the chance to build a direct digital relationship with those consumers. If they don't blow it, standing idle while someone else grabs that relationship first.

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Why The Future Of Insurance Will Be Mobile And What Will It Mean For Insurance Business Models

Ellen Carney

Anybody out there who doesn't have a mobile device, raise your hand...just what I thought.

The explosion of mobile phones and apps in the everyday lives of consumers--and agents--is powering big changes in the business of insurance.  Heightened customer expectations are getting formed by the changing mobile landscape; new generations of customers; new competitors, and the ferocious pace of mobile tech-enabled innovation that is radically reshaping how customers become informed, purchase, and get service. 

In our new report, the first of Forrester's Mobile Insurance Playbook, we examine how mobile forces are driving customer expectations and how customer demands are going to influence new insurance business models.

Consider that:

  • Consumers are living La Vida Mobile.  Mobile is a pervasive element in the daily lives of insurance customers. With more mobile devices available within easy reach, US consumers are tapping into this ready convenience to research, buy, and service their financial needs, including insurance.  And how about those Millennial insurance customers?  More than one in four told us that they use mobile as their main personal financial channel. 
  • Agents are becoming proficient mobile tool users.  The tablet form factor looks almost purpose-built for the needs of agents.  From their hi-def displays to fast boot-up and super portability, agents are ardent tablet-ers, and half the agents in an informal survey at the end of last year cited mobile as one of their leading business initiatives. 
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Telefonica Digital: Only A First Step Towards Transforming The Telco Business Model

Dan Bieler

I recently attended an event in London where Telefonica shed more light on its Digital division. Digital is the central division driving innovation at Telefonica group and was formed in September 2011. However, Telefonica, despite the creation of Digital, still is somewhat in the old telco mold of inside-out innovation.

Digitization is undoubtedly a major theme affecting both society and the economy, bringing huge implications for communication, collaboration, consumption, and production. The big focus areas for Digital are e-health, digital content distribution, security, cloud, M2M, OTT comms, financial services, and advertising. In this respect, Digital is the right answer. My main observations from the event are:

  • Digital’s product development process is not end-user-focused enough. Digital does not seem to involve the actual end users as much as other solution providers, like for instance Colt (http://goo.gl/oBCO0). What was missing during most presentations was a better demand-analysis of its customer base. Digitization has big implications for company cultures, modes of operation, and ways of life. Businesses require significant assistance in preparing for these challenges such as change management. Digital did not explain how it plans to address these either through internal capabilities or through partnerships with business consulting firms like Deloitte. This means that Telefonica risks developing solutions that do not meet demand. Moreover, detailed customer case studies were not discussed, although Digital did present its portfolio development approach.
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Well-Established Digital Channels Should Be Top Priority For Shopper Marketers In 2012

Tracy Stokes

Shopper marketing is going digital, providing shopper marketers with a plethora of new high-buzz technologies, devices, and platforms to communicate messaging, promotions, or content to their shoppers along their path to purchase. But with limited budgets, and such a wealth of options, which ones should they choose? To help shopper marketers prioritize their technology investments in 2012 and beyond, my colleague Cory Madigan and I evaluated 17 digital tools for using Forrester’s TechRadar™ methodology. The highlight trends reveal that:

  • Cool isn’t necessarily critical . . . yet. Social networking pages, interactive displays, and QR codes get a lot of attention in the marketing world, but we found that in terms of shopper marketing utility, real shoppers aren’t quite as smitten. The opportunity is there, but lack of scale, measurement, and clear value for the consumer has limited the traction of many of the more talked-about technologies in the digital shopper marketing arsenal.
  • The digital oldies are still the ROI goodies. When it comes to shopper utility, consumers and marketers still rely most on brand websites, content that brands create for specific retailers, and email to deliver the value they seek. Rather than being replaced by new technology, watch for these platforms to become better optimized for mobile. With mobile optimization, shopper marketers will be able to tie shoppers’ online activities at home — on a PC or tablet — to their smartphone activities while on-the-go.
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P&G Brand Building Goes Digital, But This Is Not The End Of TV Advertising

Tracy Stokes

As the world’s largest advertiser, any move by Procter & Gamble (P&G) is closely watched. So much attention has been paid to its recent announcement that it will cut $10 billion from its marketing budget over the next five years. In an interview last week with The Wall Street Journal, P&G’s Global Chief Marketing Officer Marc Pritchard elaborated on the company’s intent to lean more heavily on digital media at the expense of higher-ticket TV advertising as part of its cost-savings strategy. The Wall Street Journal interview is part of a PR push from P&G around its digital ambitions, highlighted in a Signal event in Cincinnati last week that focused on brand building in a digital world. The event brought in digital players and experts from Facebook and Google to Buddy Media and Flipboard as well as Forrester’s own eBusiness experts Sucharita Mulpuru and Andy Hoar. So why is P&G making this digital shift, and what does it mean?  

The public event and announcements are, as the event name suggests, a signal — a welcome signal to Wall Street that P&G will be faster and more efficient (the company’s stock rose 3% with the budget-cutting news). It's a return shot across the bow to competitors such as Unilever and L’Oreal, which are both making high-profile advances in their digital ambitions, and a signal to P&G employees around the world that their leaders are serious about digital and that they need to accelerate change in the slow-moving P&G ship.   

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