Is Your Business Ready For A Digital Acceleration Team?

Nigel Fenwick

Empowering a central team to set digital strategy, provide common platforms, and provide specialist resources can help business units develop their digital maturity by embracing a set of common standards while still tailoring their customer experience to their specific market needs. Yet many central teams run into difficulty. They fail to clearly communicate their purpose and remit, they struggle to navigate the realities of corporate politics, and they forget to demonstrate their successes through clear metrics. CIOs looking to accelerate their firm's digital journey by building a digital acceleration team should first assess their organization's readiness and appetite (see Figure).

Digital accelerator checklist

For more on establishing a digital acceleration team, see my latest research: Your Company Needs A Digital Acceleration Team.

Previus post: Four Strategy Tips In The Age Of The Customer

Three Tips To Craft A Better Digital Vision

Nigel Fenwick
In the age of the customer, your company must exploit digital assets in order to deliver world-class customer experiences and compete effectively. But moving the business from its traditional roots toward digital mastery requires the executive team to paint a compelling digital business vision.
 
Based on my latest research published in March — How To Craft A Better Digital Vision — here are three suggestions to help your firm develop a compelling digital vision:
 
1. Illustrate what customers will value in the future. The way your customers derive value from your products and services today will not be the same in the future. Your business will need to use digital technology to create new sources of value. Instead of simply designing a physical product or service to be used by a customer to satisfy a need, your firm must reimagine your products and services as digital services enhanced by physical products and people. Customer perceptions of value will be shaped by the digital experiences you create to help them achieve their desires. Your digital vision must help employees understand this shift.
 
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Become Customer-Obsessed Or Fail

Michael Gazala

What’s the top imperative at your company? If it’s not a transformation to make the company more customer-focused, you’re making a mistake. Technology and economic forces have changed the world so much that an obsession with winning, serving, and retaining customers is the only possible response.

We’re in an era of persistent economic imbalances defined by erratic economic growth, deflationary fears, an oversupply of labor, and surplus capital hunting returns in a sea of record-low interest rates. This abundance of capital and labor means that the path from good idea to customer-ready product has never been easier, and seamless access to all of the off-the-shelf components needed for a startup fuels the rise of weightless companies, which further intensify competition.

Chastened by a weak economy, presented with copious options, and empowered with technology, consumers have more market muscle than ever before. The information advantage tips to consumers with ratings and review sites. They claim pricing power by showrooming. And the only location that matters is the mobile phone in their hand from which they can buy anything from anyone and have it delivered anywhere.

This customer-driven change is remaking every industry. Cable and satellite operators lost almost 400,000 video subscribers in 2013 and 2014 as customers dropped them for the likes of Netflix. Lending Club, an alternative to commercial banks, has facilitated more than $6 billion in peer-to-peer loans. Now that most B2B buyers would rather buy from a website than a salesperson, we estimate that 1 million B2B sales jobs will disappear in the coming years.

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Why Do Digital Business Transformations Fail?

Martin Gill

Digital transformation is undeniably complex and often misunderstood. To look at why things go wrong for some firms, lets take a quick look at three high-profile examples of transformation - two failures and one new initiative. These highlight some common mistakes that senior executives make:

 

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What We Talk About When We Talk About Microsoft Azure In China

Charlie Dai

Have you seen the movie Birdman — the one that just won the Best Picture and Best Director Oscars? It’s about a middle-aged man who was once a popular movie star but has been criticized throughout his career and how he finally achieved a breakthrough performance and found great success in a Broadway production of the play What We Talk About When We Talk About Love.

The story of Microsoft Azure is similar. Microsoft was hugely popular in the age of the PC but has sailed into troubled waters in the cloud era. But now — a year after Azure’s commercial launch in China — CIOs and EA professionals must understand how and where Azure might impact their existing MSFT technology investments to achieve business transformation. Azure is one of the leading forces driving cloud adoption in China. We attribute this to the progress that Microsoft has made by:

  • Expanding product offerings.Microsoft Azure now has local products in four key categories: compute, network, data, and application. Beyond basic components like virtual machines, websites, storage, and content delivery networks, Azure also has advanced features that are important for Chinese customers to address their unique challenges, including mobile services for the rapid development of mobile apps to accommodate the massive shift to mobile; a service bus for integration to eliminate information silos in the cloud; and HDInsight for big data capabilities to gain the customer insights necessary to compete with digital disruption from local Internet companies.
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Insurers, It’s Time To Emerge From Your Long Winter Sleep

Oliwia Berdak

Spring is finally here, and with that, a time for wild animals to emerge from their winter sleep. We humans don’t really hibernate, but we can find it difficult to get out of bed to face a rather frosty environment. This applies to companies, too.

I wrote last year that European insurers were waking up to the threat of digital disruption. I should have qualified this sentence: Some European insurers are waking up to it. And even fewer are getting out of bed and doing something about it. In 2015, the gulf between digital insurance innovators and other firms is expanding.

As we researched our new report about trends in European digital insurance, it became clear that no one is really disputing the value of direct insurance. European insurers have suffered seven lean years, as premiums in property, casualty, and life insurance largely stagnated. Direct sales have often been an area that continued to deliver growth. Because of this, we expect most European insurers to step up their investments and efforts in this area.

But here is the key point: Digital technologies are much more than just a channel. They can drive a business transformation to deliver new customer value and greater operational agility. Digital technologies can help insurers in particular build more persistent bridges to their customers’ lives to address the industry’s low customer engagement and creeping commoditization.

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The CIO And Digital Business

Nigel Fenwick

Digital footprintOver the past year, there has certainly been plenty of press coverage surrounding the emergence of the new “Chief Digital Officer” (CDO). And the research we published in 2013 on the CDO role does identify how some firms can potentially benefit from a CDO role working alongside the CMO and CIO. But I’m beginning to see more business-savvy CIOs follow Starbucks' ex-CIO Stephen Gillett’s example and step up to lead digital strategy and digital initiatives.

In fact, CIOs with experience in marketing and/or business-unit leadership — especially eBusiness — are well equipped to lead the future digital transformation journey in many companies. They understand business strategy; they can relate to the outside-in customer view; and they already have an enterprise perspective.

OK, so there are not many CIOs out there today with this kind of experience (my estimate is around 20%) — but this is exactly the kind of CIO that CEOs need to hire in the future.

So let’s not get too hung up on titles — what really matters is the ability to combine a deep understanding of the customer with an understanding of how digital technology will drive new sources of customer value.

That’s the focus of a new series of reports we’ve just published (see below). The reports help digital-savvy CIOs work with business leaders to create a clear vision for what it means to be a digital business and start down the path toward digital business transformation.

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Digital skills are the golden ticket in 2015

Martin Gill

It’s no secret that digital skills are in short supply. In fact, while some three quarters of executives tell us their firm now has some form of digital strategy (however rudimentary), a paltry 16% say they have the skills and capabilities necessary to deliver it. Even though the average eBusiness team’s staffing budget is growing year on year, finding the skills and capabilities to execute on a digital strategy is becoming harder and harder.

Our latest annual organizational and staffing backs this up. Our September 2014 Global eBusiness And Channel Strategy Professional Online Survey reveals:

  • eBusiness Teams Have An Average Of 95 Employees. The average eBusiness team has 95 team members. As would be expected, the larger the worldwide revenue, online revenue, or total employee count is, the larger the eBusiness team is.
  • Technology And Customer Experience Are Still The Hardest Roles To Fill. Technology, customer experience, and business analytics are the hardest jobs to hire for.  Additionally, technology and customer experience are the most outsourced, and technology is the most understaffed.  
  • The Digital Skills Gap Continues To Widen. Digital transformation brings an increased level of responsibility for eBusiness employees who are often leading the charge for company-wide transformation in addition to handling day-to-day operations. As all business becomes digital business, eBusiness teams will have an increasingly difficult time sourcing talent. 
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Four Lessons In Digital Business

Your 2015 Mobile Insurance Resolution? Align Your Mobile Insurance Strategic Plan With Changing Market Realities

Ellen Carney

Like most of us, you probably made a few resolutions you’re hoping to keep in 2015—eating better, exercising regularly, and  reading more.  Why not add one more resolution that will help you, your company and more importantly, your customers and agents?  Keep your mobile insurance strategy current with new technology; customer, employee, and partner expectations;  and pressures that are coming from competitors and more importantly, non-insurance competitors.   Because one thing’s for sure—the pace of change in mobile and insurance is crazy, as evidenced by all the new examples of mobile insurance innovation that we uncovered while writing our soon-to-be published update of our 2012 report,  “The Future Of Insurance Is Mobile”.

Need some help in updating your mobile strategic plan? Earlier this week, we published a major update to the Strategic Plan chapter in Forrester’s  Mobile Insurance Playbook. The report, “Get Mobile Insurance Strategy Right By Designing For Customers' Mobile Moments”, answers two essential questions: How do we build a strategic plan, and what should be in that strategy?  It also provides a framework for the plan that encompasses four processes:

  1. Identify mobile moments and context.
  2. Design the mobile engagement.
  3. Engineer processes, platforms, and people for mobile.
  4. Analyze results to monitor performance and optimize outcomes.
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