Forrester’s Customer Experience Index (CXi) research reveals a shocking business result: Over five years, CXi leaders outperformed the S&P with 43% stock growth, while CXi laggards had negative returns of -34%. (See this Forrester report to learn about our new customer experience index.)
As a result, firms are in an arms race to mobilize their services, deliver new digital capabilities, and delight customers on every step of their journey. eBusiness, marketing, and customer experience teams are eagerly adopting new software to deliver these digital experiences. At times, they chose a conscious uncoupling from the CIO’s team in order to move quickly and stay ahead of customers’ expectations.
Unfortunately, the mismatch of customer-facing teams scrambling to build new digital services while CIOs and their teams hunker down to cut cost and risk has caused a disconnect on the role of technology management in delivering great experiences. In a new Forrester report, Closing The Experience Gaps, my colleague John C. McCarthy and I interviewed more than 35 companies and analyzed survey results from 3,502 US consumers, we uncovered this misalignment and identified the four experience gaps that result (see Figure 1).
Figure 1 Experience Delivery Requires A New Architecture And Philosophy
The Forrester S&R team has doubled in size during the last several years. Today, we're 17 analysts and researchers across the US, Europe, and India, 19 if you count the research associates that support every project. Given the size of the team and the degree to which analysts have been able to specialize, we decided that we'd take a little time each month to highlight each member of the team in one of our bi-monthly newsletters and in a short podcast. If you're not signed up for our newsletters, I highly encourage you to do so, please email firstname.lastname@example.org for additional details. In the meantime, click below to listen to our analyst spotlight on Senior Analyst, Tyler Shields.
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When it comes to data technology, are you lost in translation? What's the difference between data federation, virtualization, and data or information-as-a-service? Are columnar databases also relational? Does one use the same or different tools for BAM (Business Activity Monitoring) and for CEP (Complex Event Processing)? These questions are just the tip of the iceberg of a plethora of terms and definitions in the rich and complex world of enterprise data and information. Enterprise application developers, data, and information architects manage multiple challenges on a daily basis already, and the last thing they need to deal with are misunderstandings of the various data technology component definitions.
Last March, we published The Future Of Business Is Digital and predicted that all businesses must evolve to become digital businesses. Since then, many CIOs in government agencies have asked about the role of digital in government. And yesterday, on The White House Blog, the president made it clear where he stands: The future of government is digital!
In announcing the creation of the US Digital Service, President Obama is reinforcing the need to bring greater agility to federal technology management in service of citizen taxpayers who foot the bill.
"A core part of the President’s Management Agenda is improving the value we deliver to citizens through Federal IT. That’s why, today, the Administration is formally launching the U.S. Digital Service. The Digital Service will be a small team made up of our country’s brightest digital talent that will work with agencies to remove barriers to exceptional service delivery and help remake the digital experience that people and businesses have with their government."
On the heels of the CrossIdeas acquisition (about which we have recently published a QuickTake), IBM today acquired another IAM cloud provider, Lighthouse Security Group. Its product and service, Lighhouse Gateway, is a small cloud provider that appeared in our Cloud IAM Wave and we were impressed by the "slickness" and ease-of-use of its customer interface for administration (policy management) and also for end users (Lighthouse Gateway provides its own front-end to ISIM and ISAM).
Now we recommend that IAM security and risk professionals should ask IBM the following questions about the acquisition:
1) How will IBM offer Lighthouse Gateway? Will it be an add-on to ISIM and ISAM licenses or will it be a standalone offering or both?
2) How will IBM integrate the beautiful user interface of Lighthouse Gateway into ISIM and ISAM on-premises offerings?
3) How will the new IBM IAM access governance ecosystem of ISIM+CrossIdeas be merged with Lighthouse Gateway?
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.
Corporations spend a lot of time and money to ensure their employee- and customer-facing technologies are compliant with all local and regional data privacy laws. However, this task is made challenging by the patchwork of data privacy legislation around the world, with countries ranging from holding no restrictions on the use of personal data to countries with highly restrictive frameworks. To help our clients address these challenges, Forrester developed a research and planning tool called the Data Privacy Heat Map (try the demo version here). Originally published in 2010, the tool leverages in-depth analyses of the privacy-related laws and cultures of 54 countries around the world, helping our clients better strategize their own global privacy and data protection approaches.
The most recent update to the tool, which published today, highlights two opposing trends affecting data privacy over the past 12 months:
Increased government surveillance continues to impede the free flow of information. Corporations worry that storing or processing data within the borders of a country with high levels of governmental surveillance could place their intellectual property at risk. Notable additions to the tool's growing list of countries with lowered barriers to government surveillance include the US, Germany, and the UK.
Every business and industry faces digital disruption today. Digitally empowered customers demand a much higher level of customer obsession to win and keep their business, and they are forcing firms to redefine their business models. Whether you are in banking, insurance, financial services, education, media and entertainment — essentially, in any industry — digital technologies will disrupt your business. Nevertheless, our research shows that firms currently favor a bolt-on digital strategy over digital transformation, but this will drive only limited value from their digital investments. Digital strategy is not about adding a new mobile app or building a social media presence. It requires a fundamental shift in business strategy, responsibilities, technology capabilities, and organizational structure.
Against this backdrop, Forrester is holding its third series of CIO Summits across Asia Pacific in August and September. The India summit is on August 21, 2014 in Mumbai with the theme of: "Beyond IT: Empower Digital Business In The Age Of The Customer." Just like last year, we expect around 150 CIOs to attend the event. The Summit will focus on the significant shift we’ve seen in CIOs' traditional focus — from the design and deployment of internal systems focused on process control to digital products and services for their customers. Of particular importance on the digital journey are three domains:
- Customer experience.
- The mobile mind shift.
- The transformation of big data into actionable business insights.
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.
I get a lot of inquiries which go something like this: “we implemented a CRM solution from Vendor X, and it doesn’t work. Nobody is using it, and when they are forced to use it, it is slowing them down instead of making their life easier. Are there solutions from Vendor Y or Z that would do a better job for us?”
My answer goes something like this: "CRM solutions are mature. Most vendor solutions are chock full of features and functions – probably more than you would ever need. Your CRM is not supporting your needs, perhaps, because:
You don't have crisp definitions of your processes, the stages within processes, and the exit criteria to move to the next stage (ex. what are your criteria to promote a lead to an opportunity? Are they the same for all business units?)
You have implemented your CRM without doing any customization or configuration. As a result, your organizational processes are not well supported in your CRM
You have not paid attention to your data quality. Users don't trust the data that they use.
You haven't spent the time to integrate other systems to your CRM, so you cannot empower your customer facing personnel with all the information they need from your CRM. It's not helping them get their job done easier or faster.
You don't have the right reports available to your end users to allow them to measure their performance.
You haven't focused on usability or the user experience. The UI is probably not role based, or tailored to what your users need, and you haven’t thought though the actual data elements that are important to your users at the various stages of your processes.