Ready to Write Your Digital Strategy? Read This First.

Mobile Leaders Will Break Away From Laggards In 2015

Thomas Husson
Mobile reached a tipping point in 2014 as it solidified its position as one of the most disruptive technologies for businesses in decades. Not since the advent of the Internet has a technology forced businesses to rethink completely how they win, serve, and retain customers.
 
Forrester believes that, in the future, the new competitive battleground will be the mobile moment. Why? Consumers expect to engage with brands to get any information or service they desire immediately and in context. Today, 18% of US online consumers have this expectation, while 30% are in the midst of a transition to this mobile mind shift. This revolution is taking place quickly across the globe: Forrester forecasts that 42% of the total population globally will own a smartphone by the end of 2015.
 
Forrester believes that, in 2015, the gap will increase between marketing leaders and eBusiness professionals who will re-engineer their business to deliver valuable mobile moments and the majority of executives who will continue to take a myopic approach by considering mobile just as another digital channel.
 
Together, with my colleague Julie Ask, we expect new mobile trends to shape the market in 2015. In particular, we predict that:
 
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Ignore Digital Experience Delivery Technologies At Your Own Peril

Stephen Powers
Ignore digital experience delivery platforms in 2015, and you’ll spend all of 2016 playing catch up.
 
Since 2013, no fewer than eight vendors announced enterprise-class solutions vying to offer integrated, business-centric tools to create, deliver, measure, and optimize digital experiences. Just this week, French advertising giant Publicis Groupe acquired Sapient for $3.7 billion, and the second bullet of its press release, announced Publicis.Sapient, a new platform “focused exclusively on digital transformation and the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology.”
 
In our new document, “Predictions 2015: Digital Experience Delivery Platforms Become Flexible Or Lose Momentum,”  we share why we think that 2015 is the year that application development and delivery (AD&D) and digital marketers’ worlds collide – shared platforms, customer data, budgets, and priorities will emerge within B2C and progressive B2B enterprises. Now is the time for progressive digital customer experience technology leadership — from all corners of the organization — to come together to end the patchwork strategies of the past.
 
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Bridging The CIO/CMO Disconnect In Asia

Fred Giron

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.
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Next-Generation Services Create New Sources Of Competitive Advantage

Fred Giron

Companies understand the urgency of ramping up their business technology (BT) capabilities to help the business innovate and grow. Increasingly, they realize that they cannot do this alone and firms will require partners that can help deliver agile services that bring fast and predictable outcomes to the business. For instance, Bharat Light and Power (BLP), one of the largest clean energy generation companies in India, signed in late 2013, a 10-year engagement with IBM to build a new business capability that aims at nothing short of transforming the utility sector in India. In a few words (more details are available in this report), BLP and IBM are creating an open energy service platform that will help BLP understand how to optimize the utilization of its wind turbines. The really interesting part for me lies in the way the company intends to leverage the information generated by this platform as the basis of its competitive advantage. The energy service platform will indeed act as an expertise repository that BLP can leverage to:

  • Increase the value of its own assets. As the company operates, grows, and optimizes its own asset efficiency, it learns how the climate, power grid, and wind turbines influence a vital business metric for a utility company: the plant load factor (PLF). This will allow the company to generate more revenues from its existing assets.
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Beyond Marketing: How Mobile Is Transforming McDonald's France

Thomas Husson

At the beginning of the year in our yearly mobile predictions report, my colleague Julie Ask and I made the following call: "mobile will affect more than just your digital operations — it will transform your entire business. 2014 will be the year that companies increase investments to transform their businesses with mobile as a focal point." McDonald’s France is a great example of such a trend.

In France, you can now order a Big Mac anytime, anywhere on your smartphone, tablet, or desktop and pick it up later at any of 1,200 McDonald’s restaurants. But mobile ordering and in-store pick up are just the first steps of a broader and more ambitious strategy: differentiating McDonald’s brand experience and powering a future relationship marketing platform by enabling direct behavioral customer insights. Although it started with a mobile ordering and payment app nationwide, McDonald’s France aims to transform all points of customer engagement by building a platform to extend new services to loyal customers and evolving the entire organization.

Despite a less mature mobile ecosystem and lower mobile usage than in the US, McDonald’s France was the first subsidiary of McDonald’s to launch a mobile ordering offering at scale. Such an ordering service is only at pilot stage in the US. France is McDonald’s second-biggest market after the United States, with €4.35 billion in turnover in 2012. Most other countries had piloted mobile payments so far. With more than 16 million members, McDonald’s Japan mobile couponing and in-store contactless payment services is the only other mobile service for McDonald’s (and the vast majority of brands) that has scaled massively, but it does not yet offer the same value.

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Philips’ Journey Toward Becoming A Connected Business

Dan Bieler

Macro trends in technology and shifting customer behavior are giving rise to the connected business — which is not defined by technology but is rather a new style of doing business. CIOs will be responsible for introducing technology solutions that help break down silos, boost cross-team collaboration, drive the end-to-end customer experience, and engage more deeply with customers. In order to succeed, CIOs must go beyond technology enablement and support organizational and cultural transformation.

With Jeroen Tas, one of the most renowned technology visionaries in Europe, as its CIO, Philips made a number of strategic decisions to transform itself into a connected business. Forrester believes that CIOs should familiarize themselves with Philips’ strategic, operational, and cultural transformation and learn from it, as Philips offers CIOs valuable lessons in planning the transition to a connected business:

  • Philips embraces digital propositions at the expense of standalone products. Philips maps out customer journeys and ensures that its products turn into plug-ins for broader digital propositions. The firm connects all of its propositions through data, communities, and collaboration, allowing it to understand who the customers are and how they use products. Philips decides how it needs to develop its portfolio based on these customer journey maps, opening up new business models.
  • Interdisciplinary teams help open up new revenue streams. The old model — all marketing people sitting together, all IT people sitting together, all supply-chain people sitting  together — is outdated. Interdisciplinary teams force people to speak each other’s language. At Philips, interdisciplinary teams have also resulted in much higher job satisfaction.
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Why you shouldn’t rush out and hire a CDO

Martin Gill

Chief Digital Officer (or CDO) is the latest in a long line of snazzy C-level titles to emerge over the last few years. At Forrester we’ve been watching this trend for a while now and have made a few comments, but I think it’s time to put a firm stake in the ground.

 
Don’t hire a Chief Digital Officer!
 
There. I said it.
 
Now, why might I say this when a number of high profile firms are in fact hiring CDOs? Well, to put things in perspective I want to look at a tale of three brands, all of which I’ve spoken about in the past:
        
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