Do You Have An Opinion On How Digital Is Changing Business?

Do you have an opinion on how technology is changing your business?

As you likely know, each year we conduct in-depth business leader research to help identify trends across industries. This year we are once again partnering with executive search firm Odgers Berndtson, reaching out to senior business executives around the world for their perspectives on how digital is changing their business.

We're also reaching out to a wider audience through social media to broaden the perspectives gathered in this study. No matter what your perspective, no matter what your role – CEO, CMO, CIO, Business leader – if you're in senior management in a medium or large enterprise, we'd like to hear from you.

To make your opinion count, simply click the link below to begin the confidential online survey.
Please note: while the survey has been designed to complete on any device, including mobile phones, you must finish the survey using the same device from which you begin by clicking this link: http://forr.com/digitalsurvey2017. All responses are confidential.

Here's a selection of blog posts from this stream of research:

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The Top Emerging Technologies For Digital Predators

If you’ve been following my research, you know I like to divide the business world into three categories of company:

  • Digital Predators successfully use emerging digital technologies to gain market share and/or displace traditional incumbent companies (e.g., Amazon, Lyft, Priceline, Airbnb, Netflix).
  • Digital Transformers evolve a traditional business to take advantage of emerging technologies, creating new sources of value for customers and opening up new competitive strategies (e.g., Burberry, Nestlé, L’Oréal, Unilever, USAA, Ford, Delta).
  • Digital Dinosaurs struggle to leave behind their old business model. These companies are typically slow to change because they must defend large P&Ls, or they have a near monopoly position, or they simply don’t see the opportunity/threat (e.g., many retailers, taxi companies, manufacturing firms, legal firms, recruiters, construction firms).
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Did Move 37 Signal The Impending Death Of The Financial Services Industry As We Know It?

A couple of years ago I wrote a post predicting a new business paradigm for financial services. You may have read this post and been skeptical. Maybe you thought it wasn't realistic. If so, you may be wishing you were paying more attention very soon. Read on.

This week I spoke on "The Experience Economy" at a client conference where attendees were primarily from the financial services industry. At the conference the opening keynote was by a renowned "futurist". Most futurists don't claim to predict the future, they extrapolate the trends they see around them today to help prepare you for what is likely to come. Interestingly, that's exactly what analysts at Forrester do every day. Perhaps that's why I feel "futurists" are over-hyped – I had expected more from the keynote.

In side conversations with attendees I shared my own "futurist" thoughts on the impending death of the financial services industry. Indeed after chatting for a while, one attendee even suggested I should rename my speech "The Death Of Financial Services" just to get people's attention. It seems many people in the industry haven't been paying enough attention to what's going on in technology.

Let's begin with Google's AlphaGo AI. In March of 2016 Google's AI beat world Go champion, Lee Sidol. To understand the enormity of this you need to understand a little about the game of Go as compared to Chess.

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Amazon Go Ushers In A New Era In Retail Technology

Amazon's new Amazon Go store ushers in a new era in brick and mortar grocery and convenience shopping. In the early 80's, electronic point of sale (POS) dramatically changed the checkout experience in grocery stores, speeding up checkout lines. Today, a checkout without POS is unthinkable unless it's a farm stand on the side of the road … and even here we're likely to see Square hooked up to a smartphone. But even with POS, the checkout has always been the big time waster in any grocery shopping experience. Until this week.

Six years ago, "The Ultimate Grocery Shopping App" described a future in which the grocery shopping experience was radically different from what existed in 2010. This week, Amazon has brought part of that vision to life by opening its first Amazon Go brick and mortar convenience store for Amazon employees in Seattle. A convenience store with no checkout lines … with no checkout.

Gone are the POS systems. Welcome to the era of automatic checkout. Amazon has used new technologies like image recognition and machine learning to go beyond at least some of the experience predicted back in 2010. Instead of shoppers having to scan items into their shopping cart, Amazon uses this advanced technology to track what shoppers pick up and add to their cart and what they put back on the shelf. No scanning, no checkout … just walk out and pay.

Why will this take off? Becuase it gives shoppers back significant time savings and it gives retailers potentially enormous costs savings.

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Predictions 2017: CEOs Invest Billions To Transform Operations With Digital Tech

You've been creating digital customer experiences for years now. You've built a successful app. You’ve assembled a martech/adtech stack. You may even have started swinging at omnichannel delivery or harnessed AI or piloted a connected product. So it’s time to declare victory on digital transformation, right? 
 
Think again.
 
Digital customer experiences are only the shining faces of a digital business. Those pretty faces quickly lose their luster unless you’ve also transformed your business operations to make them better every single day -- and introduce new digital faces all the time. We call this capability "digital operational excellence." It’s the 80 in the 80/20 rule of digital transformation. In our latest report, Predictions 2017: In Digital Transformation, The Hard Work Of Operational Excellence Begins,  my co-authors Ted SchadlerMartin Gill and I give Forrester's predictions for the next year in digital business, including these three:
 
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The No. 1 Barrier To Effective Digital Transformation

In a recent post, I wrote about how digital experiences shape customer perceptions of value. But it's easy to forget that your organization's culture also shapes your customer's perception of value.

Earlier this week, I was moderating a panel on digital transformation at a Software AG event in New York. In opening the event, Kevin Niblock, Software AG's North America President and COO, described digital business as "a cultural phenomenon." Organizational culture plays an enormous role in the ability of a company's employees to transform a traditional business into a digital business.

If you're not the CEO, you might be forgiven for thinking that you have little control over your corporate culture. But we all have the opportunity to shape our organization's culture. And while nurturing the company culture is arguably one of the most important jobs of the CEO, it is also a critical capability for any leader.

Former IBM Chairman and CEO, Lou Gerstner, reminds us of this in an excellent Wall Street Journal (WSJ) article: "The Culture Ate Our Corporate Reputation". Gerstner writes: "What is critical to understand here is that people do not do what you expect but what you inspect. Culture is not a prime mover. Rather it is a derivative. It forms as a result of signals employees get from the corporate processes that structure their work priorities."

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How To Unlock Tech Industry Digital Transformation

It's no surprise that tech companies are vested in the digital transformation of their customers. But many tech companies find it difficult to leave their product-centric models behind and focus on customer outcomes. That's just one of the findings from the research published on digital transformation in the tech sector.

True customer obsession demands an outside-in perspective. Tech companies must learn to see their business from the perspective of their customers; beginning with customer desires and working back to the new digital capabilities that can enable the outcomes that satisfy those desires.

But a common problem for tech companies is their business structure. Built around successful products, the P&L structure in most tech companies reflects internal strength — business capabilities if you like — the structure optimizes the ability to bring specific products and product features to market. But from the outside looking in, the product structure can seem at odds with what the customer wants. I can't count how many times the same company has treated me like a new customer, even though I already own one of the products made by the brand — my guess is you've had a similar experience.

Of course this isn't a problem unique to the tech industry. But the tech industry sits at the heart of the digital transformation of many businesses — helping their customers take advantage of their technology to transform their businesses. So you might be forgiven for expecting the tech industry to have figured out it's own transformation already. Not so much.

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BMC Wants A Greater Share Of The Digital Economy

Last week I attended BMC's Engage event, an analyst forum in Vegas, as a guest of BMC. Like every other technology vendor, BMC would like a greater share of the emerging digital economy.

With more and more businesses moving to the public cloud, I have no doubt in my mind that the on-prem data center market will diminish quickly over the coming years. I also expect mainframes to go the way of the dodo within 10 years, but many others have previously predicted the demise of mainframes and time has proven them wrong, so I accept I may also be premature.

BMC, a bastion of IT operations, now wants to help IT leaders become drivers of digital business. Indeed, BMC has positioned many of the current raft of product offerings to help tech leaders deliver a more efficient and agile tech capability for the business. And this is important. One of the biggest challenges for many large technology teams is their lack of agility. In the age of the customer, tech teams need to tap into every opportunity (and automation capability) to drive greater agility and efficiency throughout their technology delivery capabilities.

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How To Solve The Digital Dilemma

There's a fundamental difference between companies that apply digital technology as a bolt-on (frequently adding an eCommerce site, social media, or customer mobile apps) and those that take a more holistic approach to transforming the way the company uses technology to deliver better customer outcomes and drive revenue. 

Transformers are more likely to succeed because they recognize their customers' expectations are evolving. The executives in these companies redesign their business to evolve alongside the expectations of their customers. These companies are obsessed with helping their customers achieve their desired outcomes, and they continuously explore new ways to do that profitably. This is why transformers are destined to become digital predators while bolt-on companies are more likely to become digital prey.

One of the distinguishing characteristics of many transformers that caught my attention back in 2013 remains a challenge for many companies in 2016: delivering digital operational excellence (DOX). DOX focuses on the ability to use emerging technologies to change operational aspects of the business (those not directly touching the customer) to create business agility in service of the customer. Why is this important? Because without the ability to evolve quickly, your company will fail. This is the digital dilemma.

I use this simple equation to illustrate my point:

The Digital Dilemma. Formula: Perceived Value equals experience over expectations. Source: Forrester Research @NigelFenwick

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One Million Thanks!

Thank you for your support!

I'm delighted to see this blog has officially had over one million views, making this one of the most read blogs at Forrester! 

I truly appreciate all the support of you, my readers, in helping share this content with your peers. So thank you a million times.

Here is a selection of the most popular reads based on your recommendations, page views and one or two I just like the most:

Social Media:

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