Making Leaders Successful Every Day. Welcome To The Age Of The Customer! Eveline Oehrlich,Principal Analyst February 28, 2013

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Making Leaders Successful Every Day Slide 2 Welcome To The Age Of The Customer! Eveline Oehrlich,Principal Analyst February 28, 2013 Slide 3 In the Age of the Customer, IT must enable rapid change across the value chain. 3 Slide 4 1. How Is The Age Of The Customer Redefining Competition? 2. How Do IT Organization's Change in the Age Of The Customer? Agenda www.istockphoto.com Slide 5 Digitally-empowered customers redefine competition in the Age of the Customer Source: June 6, 2011 Competitive Strategy In The Age Of The Customer 5 Slide 6 The Age of the Customer impacts all five of Michael Porters forces of competition Source: June 6, 2011 Competitive Strategy In The Age Of The Customer Slide 7 $11BBankruptcy X $6.8B The customer is in charge Slide 8 Customers experiences drive success Trane empowers distributors to upsell and close deals faster An iPad app delivers content, sales materials, and documents The ring to ching close rate is 20% faster, 31%+ in revenue Analytics are built into the platform to monitor, refine, and reward Source: Trane Slide 9 Services eclipse products 9 Slide 10 Users provision their own business capabilities devices, apps, XaaS, How are the following technology sourcing functions currently shared between your companys IT organization and your business group/department? Base: 1,004 North American business decision-makers in firms with 1000+ employees Source: Forrsights Business Decision-Makers Survey, Q4 2011 10 Slide 11 11 2012 Forrester Research, Inc. Reproduction Prohibited Change moves to systems of engagement (Forrester estimates) Source: Forresters estimates of the mix of budgets Slide 12 The datacenters core skill becomes business not technology 12 Source: January 18, 2012, Avoid Tactical, Narrow Service Management And Automation Strategies Slide 13 2012 Forrester Research, Inc. Reproduction Prohibited Threats and opportunities in the Age of the Customer: Its ITs perfect storm The customer is in charge Customers experiences drive success Services eclipse products Users provision their own business capabilities Change moves to systems of engagement The datacenters core skill becomes business not technology... 13 Slide 14 In the past IT saw serial waves of technology evolutions like mainframes, PCs and the Internet impacting their businesses leaving sufficient time for digestion and refinement www.environmentreport.org Slide 15 Technology evolutions are moving faster, clashing, overlapping and completing each other to create new challenges and opportunities. Mobile Cloud BYOD Social Big Data Smart Consumerization Industrialization Real-timeAgile www.f1online.de Slide 16 The Latest Big Disruption (Complexity) 201220112010200920082007 Virtualization Cloud Consumerization Social Media Accelerant Slide 17 The Business Hates Volatility www.f1online.de Slide 18 Slide 19 1. How Is The Age Of The Customer Redefining Competition? 2. How Do IT Organization's Change in the Age Of The Customer? Agenda www.istockphoto.com Slide 20 Old Service Management & The New Service Management Slide 21 focus on customer experience Stop Pushing The ITIL Kool Aid Slide 22 Top Performing Companies Set Different Priorities New IT Old school IT Flexible Smart Social Slide 23 2012 Forrester Research, Inc. Reproduction Prohibited Welcome to the Industrial Revolution Put discipline into your processes Engineer customer experience Reduce the MOOSE or let others do the grunt work Adapt the people (skills and org) the next wave of ^ Slide 24 2013 Forrester Research, Inc. Reproduction Prohibited24 The New Faces Of IT Smart IT Social IT Dynamic IT Dynamic IT dynamically supports business needs with internal & external resources and provides seamless access and support to all resources for business users all the time and anywhere. Smart IT leverages technology to support business value and provides timely and contextual support to all business users. Social IT connects business users with internal and external people and products to enable high performance, collaborative business processes. Slide 25 2013 Forrester Research, Inc. Reproduction Prohibited25 New Engagement Models Source: March 26, 2012, Mobile Is The New Face Of Engagement Dynamic IT Slide 26 Base: 1,004 North American business decision-makers in firms with 1000+ employees Source: Forrsights Business Decision-Makers Survey, Q4 2011 IT (BT) is about systems of engagement not systems of record Source: May 16 2012 Forrsights: Business Execs Increase Direct IT Spend To Support Systems Of Engagement Slide 27 2013 Forrester Research, Inc. Reproduction Prohibited27 Catering Need To Define Services! Slide 28 What Is A Service? Business service App Infra Service Slide 29 Slide 30 The solution: Firms like P&G drive business-service-value 30 Filippo Passerini, Group President of Global Business Services and CIO Slide 31 Customer testing used to take 6-7 weeks limited by cost and time 31 Slide 32 Virtual reality now allows more customers to review more options in days not weeks Better insights and higher success rates when P&G engages more with the consumer. 32 Slide 33 Dynamic through automation Task Execution Individual tasks Repetitive tasks are candidates Process Flow Connects tasks and decisions Workload automation and RBA Decision Trigger Analytics (not just monitoring) When and why to take action Tools that perform functions otherwise done by humans 2013 Forrester Research, Inc. Reproduction Prohibited Dynamic IT Slide 34 2013 Forrester Research, Inc. Reproduction Prohibited34 Social IT Turbo Charge Your Service Processes Slide 35 Image source: http://www.anorak.co.uk/wp-content/uploads/cleaning-window-3.jpg Some clients still dont realize the importance of service support, field support, business enablement Slide 36 2013 Forrester Research, Inc. Reproduction Prohibited36 Source: August 2011 Turbocharge Customer Service Process With Social Technologies Social IT Social Web Service Catalog Service Desk Mobile Device Browse Community Forum, Facebook, etc. Browse enterprise service catalog. Chat with service agent Navigate support via smart device Email service desk agent. Resolve/ Request/Trouble shoot issue Transfer to service desk agent. Receive details via SMS Turbo Charge Your Service Support Processes Slide 37 2013 Forrester Research, Inc. Reproduction Prohibited37 The Number Of Tablets x10 In 5 Years Source: April 23, 2012, Tablets Will Rule The Future Personal Computing Landscape Slide 38 2013 Forrester Research, Inc. Reproduction Prohibited38 Tablets Are Cannibalizing Pcs Source: April 23, 2012, Tablets Will Rule The Future Personal Computing Landscape Slide 39 IT Industrialization Is Changing The People Smart IT Slide 40 New Talent, Organizations, And Processes August 2011 How To Become A BT Leader And Leave IT Order-Taking Behind Smart IT Slide 41 Hot New Roles Emerge Business relationship manager Automation architect Service designer Service manager Service brokers Vendor manager Slide 42 Conclusion! Slide 43 ITs actions in the Age of the Customer Focus from the customer in on understanding and responding to customers use automation when possible. Concentrate on systems of engagement minimizing changes to the systems of record. Refine service management processes to meet your customers expectations and industrialize your value chain. 43 Slide 44 Thank you Eveline Oehrlich, Principal Analyst [email protected] Slide 45 2013 Forrester Research, Inc. Reproduction Prohibited45 Reference reports from Forrester Forrsights: Business Execs Increase Direct IT Spend To Support Systems Of Engagement May 16 2012 Mobile Is The New Face Of Engagement: An Executive Summary March 2012 Empowered BT Redefines The Traditional IT Archetypes February 21 2012 Avoid Tactical, Narrow Service Management And Automation Strategies January 18, 2012 Empowered Business Technology Defined July 18, 2011 Competitive Strategy In The Age Of The Customer June 6, 2011