Making Leaders Successful
Every Day
Welcome To The Age Of The
Customer!
Eveline Oehrlich, Principal Analyst
February 28, 2013
In the Age of the Customer, IT
must enable rapid change
across the value chain.
3
Agenda
1. How Is The Age Of The
Customer Redefining
Competition?
2. How Do IT
Organization's
Change in the Age Of
The Customer?
www.istockphoto.com
Digitally-empowered customers
redefine competition in the
Age of the Customer
Source: June 6, 2011 “Competitive Strategy In The Age Of The Customer”
5
The Age of the Customer
impacts all five of Michael
Porter’s forces of competition
Source: June 6, 2011 “Competitive Strategy In The Age Of The Customer”
The customer is
in charge
Bankruptcy
X
$6.8B
$11B
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
Services eclipse products
9
Users provision their own business
capabilities — devices, apps, XaaS, …
“How are the following technology sourcing functions currently shared between your
company’s 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
Change moves to systems of
engagement (Forrester estimates)
Systems of record investments
Mobile/tablet front-end apps investments
2011
Systems of engagement investments
79%
2016
45%
0%
20%
18%
41%
40%
60%
3%
14%
80%
100%
Percentage of systems investments for an average $1 billionplus company
Source: Forrester’s estimates of the mix of budgets
© 2012 Forrester Research, Inc. Reproduction Prohibited
11
The datacenter’s core skill becomes
business — not technology
Source: January 18, 2012, “Avoid Tactical, Narrow Service Management And Automation Strategies”
12
Threats and opportunities in the Age of
the Customer: It’s IT’s 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 datacenter’s core skill becomes business — not
technology
•
...
© 2012 Forrester Research, Inc. Reproduction Prohibited
13
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
Industrialization
Cloud
Smart
Mobile
Social
BYOD
Big Data
Real-time
Agile
Consumerization
Technology evolutions are moving faster,
clashing, overlapping and completing each
other to create new challenges and
opportunities.
www.f1online.de
The Latest Big Disruption (Complexity)
Consumerization
Cloud
Social Media
Manual
Ability Virtualization
Accelerant
2007
2008
2009
2010
2011
2012
The Business Hates Volatility
www.f1online.de
The Business Loves If IT Adds Value But …
Agenda
1. How Is The Age Of The
Customer Redefining
Competition?
2. How Do IT
Organization's
Change in the Age Of
The Customer?
www.istockphoto.com
Old Service Management &
The New Service Management
Stop Pushing The ITIL Kool Aid…
…focus on customer experience
Top Performing Companies Set Different Priorities
Flexible
New IT
Smart
Social
Old school IT
Welcome to the Industrial Revolution
^
the next wave of
Put discipline into your processes
Engineer customer experience
Reduce the MOOSE or let others do the
“grunt work”
Adapt the people (skills and org)
© 2012 Forrester Research, Inc. Reproduction Prohibited
The New Faces Of IT
Dynamic
IT
Social
IT
Smart
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.
Social IT …
connects business users
with internal and external
people and products to
enable high performance,
collaborative business
processes.
Smart IT …
leverages technology to
support business value
and provides timely and
contextual support to all
business users.
© 2013 Forrester Research, Inc. Reproduction Prohibited
24
New Engagement Models
Dynamic
IT
Source: March 26, 2012, “Mobile Is The New Face Of Engagement”
© 2013 Forrester Research, Inc. Reproduction Prohibited
25
IT (BT) is about
systems of
engagement — not
systems of record
Base: 1,004 North
American business
decision-makers in firms
with 1000+ employees
Source: Forrsights Business
Decision-Makers Survey, Q4
2011
Source: May 16 2012 “Forrsights: Business Execs Increase Direct IT Spend To Support Systems Of Engagement”
Catering
Need To Define “Services”!
© 2013 Forrester Research, Inc. Reproduction Prohibited
27
What Is A Service?
Business
service
Service
Service
App
Service
Infra
What’s The Service?
 Whatever is important
to the consumer
 How do we define them
(including SLAs)?
 Pursue service
portfolio management
 A Service is constructed
from sub-services
The solution: Firms like P&G drive
business-service-value
Filippo Passerini, Group President of
Global Business Services and CIO
30
Customer testing used to take 6-7
weeks — limited by cost and time
31
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
Dynamic through automation
Tools that perform functions otherwise done by humans
Dynamic
IT
 Task Execution
›
Individual tasks
›
Repetitive tasks are candidates
 Process Flow
›
Connects tasks and decisions
›
Workload automation and RBA
 Decision Trigger
© 2013 Forrester Research, Inc. Reproduction Prohibited
›
Analytics (not just monitoring)
›
When and why to take action
Turbo Charge Your Service Processes
Social
IT
© 2013 Forrester Research, Inc. Reproduction Prohibited
34
Some clients still don’t realize the importance of
service support, field support, business
enablement…
Image source: http://www.anorak.co.uk/wp-content/uploads/cleaning-window-3.jpg
Turbo Charge Your Service Support
Processes
Social
IT
Social
Browse
Community
Forum,
Facebook, etc.
Chat with
service agent
Web
Service Catalog
Service Desk
Browse
enterprise
service catalog.
Resolve/
Request/Trouble
shoot issue
Navigate
support via
smart device
Transfer
to service desk
agent.
Email service
desk agent.
Receive
details
via SMS
Mobile Device
Source: August 2011 “Turbocharge Customer Service Process With Social Technologies”
© 2013 Forrester Research, Inc. Reproduction Prohibited
36
The Number Of Tablets x10 In 5 Years
Source: April 23, 2012, “Tablets Will Rule The Future Personal Computing Landscape”
© 2013 Forrester Research, Inc. Reproduction Prohibited
37
Tablets Are Cannibalizing Pcs
Source: April 23, 2012, “Tablets Will Rule The Future Personal Computing Landscape”
© 2013 Forrester Research, Inc. Reproduction Prohibited
38
Smart
IT
› IT, as we’ve known it, is dead
› Many skills are diminishing
› New skills are emerging as highly desirable
› New sourcing models — don’t do it all yourself
› Organization structure will be in constant flux
IT Industrialization Is Changing The People
New Talent, Organizations, And Processes
August 2011 “How To Become A BT Leader — And Leave IT Order-Taking Behind”
Smart
IT
Hot New Roles Emerge
 Business relationship manager
 Automation architect
 Service designer
 Service manager
 Service brokers
 Vendor manager
Conclusion!
IT’s 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
Thank you
Eveline Oehrlich, Principal Analyst
eoehrlich@forrester.com
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
© 2013 Forrester Research, Inc. Reproduction Prohibited
45