Digital Impact: From Systems of Record to Systems of Engagement

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Digital ImpactFrom Systems of Record

to Systems of Engagement

DigitalNow!

April 26, 2012



Technology Megatrends

Decades of Disruption to Business as Usual

• 1980s

• Personal Computing, Office Automation

• B2E - documents, presentations, financial analysis

• 1990s

• Internet, ERP, Worldwide Web

• B2B – outsourcing, globalization, business networks • 2000s

• Broadband, Mobile, Social Media

• B2C – media & entertainment, communication, branding

• 2010s

• Digital commerce, Collaborative Systems

• B2B2C – advertising, retail, customer service

2



Two Types of Business Network

• High complexity

• Relationship oriented

• Outgrowth of project teams

• Organize around an

orchestrator

• Focus: expertise, innovation,and market development

Coordinated

Networks

Collaborative

Networks

CO

Disney Films Disney Theme Parks

• High volume

• Transaction oriented

• Outgrowth of value chains

• Organize around a

concentrator

• Focus: efficiency, speed,and adaptability

Y O U



Two Types of IT Leverage

• High complexity

• Relationship oriented

• Outgrowth of project teams

• Organize around an

orchestrator

• Focus: expertise, innovation,and market development

Coordinated

Networks

Collaborative

Networks

CO

SYSTEMS OF

ENGAGEMENT

SYSTEMS OF

RECORD

• High volume

• Transaction oriented

• Outgrowth of value chains

• Organize around a

concentrator

• Focus: efficiency, speed,and adaptability

FamiliarIdeaNewIdea

Y O U



Systems of Record

The Story of Enterprise IT in the 20th Century• Transaction systems for global commerce . . .

• Financials, Order Processing, Inventory, HR, CRM, Supply Chain

• Mainframes, minis, client-server, PC, Internet-enabled, SaaS

• Drove three decades of investment

• Databases are at the center of these systems

• OLTP and Business Intelligence have been the key drivers

• Network is seen primarily as a transport mechanism

• Y2K put the capstone on this trend

• Pulled forward a half decade of investment

• Enterprise IT has had to go through a long “digestive” period

• Focus in past decade has been on efficiency investments



IT Innovation: 2000 to 2010

Enterprise ITOn a Diet

Consumer ITOn Fire



Redefining IT for Consumers

The Digitization of Human Culture• Access

• Infinite content, no barriers to entry, no barriers to exit

• Communications are globally democratized

• Microsoft, Google, Facebook, Wikipedia, OpenTable

• Broadband

• Pictures, video, shopping

• Internet touches both the mind and the heart

• Skype, iTunes, YouTube, Hulu, Netflix, Zappos

• Mobile

• PC for the emerging markets

• iPhone and iPad set the bar in mature markets• IM, email, camera, game, wallet, magazine. . . even a phone!

How will this impact enterprise IT?



B-2-B “Enterprization” of Consumer IT:

Investing in Collaborative Systems ofEngagement• Collaboration burden falls on the middle of the organization

• Not front-line workers engaged in transactional workflows

• Not top executives engaged in strategic issues

• Need to invest in “IT for the middle tier”

• In-the-moment empowerment through Systems of Engagement

• On-demand access to Systems of Record as required

• Systems of Engagement must meet four key design goals:

• Mobile to be in the moment

• Social to share facts and insights with others• Ad Hoc because that’s how issues emerge

• Real Time because that’s when issues get resolved



Enterprise Systems of Engagement

Communication & Collaboration• Enterprise Facebook

• Enterprise YouTube

• Enterprise Search

• Enterprise App Store

• Enterprise Twitter

• On demand conferencing• Global presence detection

• Mobile access to everything

• Social content management

• With more revolutionary

applications to come . . . .

Who knows

the head of BDat IBM?

How much didwe spend on

this last year?

Let’s keep thebuzz going!

I need to talkto Sherry—

where is she?

What is thesentiment on

this in ourcommunity?

Can you help mepromote this inmy community?

Let’s make sureeveryone registers

for this in thesame way!

We need allhands on deck,

right now!

Let’s look atthe data andget Larry to

walk us thru it

This is the “enterprise-ation”

of consumer IT



Technology Disruptions

When Will Your Organization Make theTransition?

10

I n n o v a

t o r s

E

a r l y

A d o p t

e r s

( V i s i o n

a r i e

s )

E a r l y

M a j o r i t y

( P r a g

m a t i s t s )

L a t e

M a j o r i t y

( C o n

s e r v a t i v

e s )

L a g g

a r d s

CHASM

EARLYMARKET

TORNADO

BOWLINGALLEY

MAINSTREET



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ENLISTMENT ACQUISITION

ENGAGEMENTMONETIZATION

StarterMotor

Adoption Dynamics

How Will the Transition Unfold?

Performance

Gear

PerformanceGear

PowerGear

Power

Gear

How many?

How soon?

How often?How much?

Virality?

Churn?

What ROI?What IRR?



Focusing to Accelerate Adoption

Where Should the Transformation Start?

• Every customer-facing strategy is made or broken during a

handful of moments of engagement —what are yours?

• What person or system represents you in these moments, andhow effective are you at meeting the new expectations?

• Where could you introduce systems-of-engagement capabilities toamplify your organization’s power at these specific moments?

Use these questions to target your firstproject on a moment that matters



Final Takeaway: A To-Do List

How Could I Go About Putting This intoEffect?1. Review your strategy and identify your top-priority moments of

engagement.

2. Determine what systems of engagement would have the biggestimpact on your effectiveness in these moments

3. Assess your organization’s Technology Adoption style andcalibrate your ambitions accordingly

4. Identify your early adopters and recruit them to this effort

5. Engage with outside help to design and prototype your firstsystems of engagement effort

6. Focus on user experience as your critical acceptance criterion

7. Use anecdotal feedback from early adopters to create the casefor crossing the chasm to widespread pragmatist adoption

8. Focus the pragmatist investment case on a critical pain point, anddo whatever it takes to put that issue to bed

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Digital Impact: From Systems of Record to Systems of Engagement

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