Unleash Your Digital Predator

Your customers' digital experiences with other suppliers already shape their perceptions of value. Today, your customer assess the value of your services based in part on your ability to integrate into their digital world. The future belongs to companies able to harness digital to create new sources of customer value - these companies are destined to become digital predators, swallowing up lesser digital prey. 

As a business leader, do you get the feeling that you're no longer playing the same game that you once were? It's not you; the world has changed. The things that used to set companies apart — such as economies of scale, distribution strength, and brand — are far less potent than they used to be. Why? Because digital technology has fundamentally changed two things: the dynamics of the markets in which you operate and the speed needed to remain competitive.

The latest report in our series on digital business – Unleash Your Digital Predator – updates our thinking on digital transformation and includes analysis of data from our latest executive research study on digital, conducted in partnership with executive search firm Odgers Berndtson.

Many firms proudly point to their mobile app and proclaim "Hey, we're digital!" While they may be driving incremental revenue, all they have done is bolt another digital touchpoint onto the existing business. Digital transformation goes much further, fundamentally reshaping the way you create value for your customers and drive revenue growth. Achieving this requires that firms approach digital business from the outside in, pursuing two dimensions of digital in parallel: digital customer experience(DCX) and digital operational excellence (DOX).

Read more

The State Of Digital Business 2016 to 2020

In the first in a series of reports examining the results of our latest survey on digital business, conducted in partnership with Odgers Berndtson, I look at executive perception of the impact of digital on their business. 

It turns out executives are hugely optimistic about how digital will change their business. Forty-six percent of executives surveyed believe that in less than five years digital will have an impact on more than half their sales. This suggests not only huge awareness of the potential for digital to change today's business but also an expectation that their company will be successful in making the transformation needed to bring this expectation to fruition. And it's in the biggest companies, where change is hardest, that executives expect the greatest change.

In B2B industries like consumer packaged goods (CPG), wholesale sales, and professional services, the shift is expected to be dramatic — Forrester estimates that the US B2B eCommerce market will be $1.13 trillion by 2020.

  • CPG execs expect digital to have an impact on almost half their sales. Even though the percentage predicted by 2020 is still less than 50%, if CPG companies were to generate anything close to 45% of their sales through digitally enhanced products and services or through online sales by 2020, it signals a dramatic shift in the CPG landscape. The ripple effects of the digitization of more and more CPG will be felt through wholesale and retail channels. 

Read more

Microsoft PowerApps Aim To Unlock Employee Innovation

Microsoft launched "PowerApps" this week.

The idea is simple: provide an easy to use toolkit that empowers employees (and tech management pros) to build their own mobile/desktop apps on top of existing data sources such as systems of record and even Excel spreadsheets, and do it as easily as they build PowerPoint decks today.

Announcing the initial preview beta launch this week at Convergence EMEA, Microsoft demonstrated just how easy it will be for employees to build their own apps to digitize their business processes and make things better, faster, cheaper, etc., etc..

At first look PowerApps has the potential to empower employees across the business to take ownership of their digital future. But I suspect some older CIOs will feel a touch of Déjà Vu. When dBase came onto the market in 1979 – OK that's before our time but there are lessons to be learned from history so bear with me here – there was tremendous excitement that employees could now create their own aplications to replace manual processes. What resulted was a plethora of applications that ushered in 36 years of shadow IT. And the maintenance of many of those poorly designed dBase (and all the other tools that followed) applications eventually fell to IT. Or IT was asked to build a scalable version of these applications that often became business critical. Will PowerApps lead to applications chaos? Will we see apps mushroom the way SharePoint sites have? We'll see.

Read more

Predictions 2016: Welcome To The Digital Savvy, Customer Obsessed CIO

It’s that time of year! The time when every prognosticator comes up with their predictions for the next year. And this year my colleague Pascal and I took the lead in developing our 2016 predictions for the CIO role.

Rather than call out banal and obvious trends I wanted to make a stronger call on the CIO role in particular. In part this is because so many people gleefully post blogs predicting the demise of the CIO. And in part simply because it sometimes feels like I see the role of the CIO differently to many; as first and foremost a business leader.

So will 2016 be the end of the CIO role as we know it?

“No" is my simple answer. In 2016 the Age Of The Customer will further accelerate the role of technology in creating new sources of customer value to drive revenue. As a result we’ll see more and more CEOs expecting their CIOs to help lead their firm toward a clear digital future.

CEOs realize that, increasingly, future growth is tied to their ability to continuously deliver new digital services that create value for customers – across both B2C and B2B business environments. But failure to meet evolving customer expectations will result in losing customers and ultimately lower revenue growth. Without a technology team focused on building the digital platforms of tomorrow, companies cannot hope to keep up with their evolving customer expectations. 2016 will be a pivotal year for CIOs and CEOs – one that will see a significant change in leadership thinking when it comes to a company’s technology capabilities and digital assets.

Read more

The Future Of Retail Is Digital

Retail CIOs have always had a tough job, but digital makes it tougher. Emerging digital technologies threaten to transform retail experiences both in stores and at home. Without a good business case, CIOs at large retailers will find it hard to prepare their business to compete with small, nimble startups. My latest report highlights the potential of today's digital technologies to radically disrupt the retail industry once more. It serves as a call to CIOs to begin shaping their strategy to digitize the end-to-end customer experience and start proving the business case in time to make the investments needed.

Specialty fashion retailer Rebecca Minkoff is creating a truly differentiated in-store customer experience by combining RFID tags with new technologies like digital mirrors in the changing room connected to employee mobile devices. At the NYC Rebecca Minkoff store, customers can select products from racks or a digital fashion wall and head to the dressing room, where they meet their personal fashion consultant. Once in the dressing room, a digital mirror displays all the products and sizes the customer has in the room. The customer can easily request a new size by selecting it on the mirror. The consultant delivers the new sizes to the dressing room without the customer having to redress or wander the store half-undressed. By extending what Rebecca Minkoff has already achieved, we get a glimpse of a future in-store experience that helps each customer quickly find more products that satisfy their desires.

Read more

What's Your Perspective On Digital Business?

I’d like to capture your perspectives in this year’s study on digital business.
 
Last year we started a detailed research study into digital business and published numerous reports on our findings and insights for business executives. This year we have partnered with Odgers Berndtson to help field our digital business survey to business executives. And as we did last year, we’re also extending the survey to our clients and social media followers.
 
The survey only takes 10 to 15 minutes to complete … the perfect accompaniment to a cup of coffee or tea! (OK that may be a stretch … but you can easily complete it while enjoying a cuppa.)
 
Please share the link with your social media followers (http://nigel.im/2015digibiz).
 
If you’re interested in learning more about our latest digital business analysis, check out my recent webinar Digital Predator Or Digital Prey: Which Will Your Business Be By 2020?
 
Read more

The Digital Bolt-On Conundrum

What’s the difference between a digital bolt-on and transformative digital disruption?
 
In the two years I’ve been on the road talking with executives around the world about digital business and delivering keynotes on digital transformation, I’ve been most frequently asked about bolt-on vs. transformation; what’s the difference? 
 
A digital bolt-on is a digital project that is added to the existing business model that might improve the customer experience in a small way, but doesn’t fundamentally change how value is created for, and/or delivered to, the customer. For example, when a company updates a website and provides customers an electronic ordering platform, they are not changing the existing business model; they are simply providing an alternative channel through which the customer can buy products. The value proposition remains the same: buy and experience our product and you’ll gain value from the experience. Digital (in this case an online sales channel) has been bolted to the existing business model in much the same way a teenager bolts a spoiler onto an old car to make it "go faster".
 
Read more

Predicting A New Business Paradigm For Financial Services

How will digital disrupt the financial services industry over the next 10 years?
 
Over the past couple of days, I’ve been meeting with clients at Forrester’s Forum For Technology Leaders in Orlando. Clients mostly want to know how digital will impact their business. My approach in responding to this question is to think like the CEO of the company in question: First, understand the customer’s desires; then figure out how those desires can best be met profitably — I imagine how future technology changes might create new sources of customer value.
 
We’ve already seen massive change in the financial services sector: Technology is dramatically changing our customer experience and helping firms educate their customers. What more is yet to come? And what will companies need to do to win customers in the future?
 
While this is a complex question, it’s not hard to imagine a very different reality to the one that exists today:
 
Read more

Is Your Business Ready For A Digital Acceleration Team?

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.

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

Next post: Predicting a new business paradigm for financial services

Four Strategy Tips In The Age Of The Customer

Blog word cloudI just concluded six months of research looking at how firms plan strategy in the age of the customer. Perhaps unsurprisingly, I concluded that companies that fail to adapt to increasingly powerful customers, and disruptive competition, will not simply face near-term disruption — they risk their long-term viability.

I also found evidence of firms making changes in how they plan business strategy. High-performing companies look at strategic planning as a continuous process with a focus on customer value and loyalty.

In my latest report on strategy, I identify new responsibilities for CIOs, CMOs, and business-unit leaders in strategic planning. The report focuses on three ways CIOs and CMOs must step up and serve as a shaper of customer-obsessed business strategy that generates greater loyalty and drives better performance.

To succeed in the future, CIOs need to collaborate effectively with peers across the C-suite, especially the CMO and business-unit leaders, to build strategies and a shared business technology agenda, focused on customer outcomes.

Here are four tips from the research:

1.     It's time to separate strategic planning from the annual budget cycle. Annual strategic plans hold firms back from quickly reacting to fast-evolving markets. While strategies must be funded, continuous test-and-learn approaches will more quickly reveal opportunities and weaknesses.

Read more