NASSCOM ILF 2017: How to solve the digital dilemma - Nigel Fenwick, Forrester
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Transcript of NASSCOM ILF 2017: How to solve the digital dilemma - Nigel Fenwick, Forrester
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How To Solve The Digital DilemmaNigel Fenwick, Vice President, Principal Analyst
@NigelFenwickFebruary, 2017
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Source: Birds Wallpapers
Predator?
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Or Prey?
Source: Birds Wallpapers
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Source: Starwood Hotels & Resorts
New experiences change our expectations and impact our future value perceptions
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ExperiencesShape expectations
Experiences must deliver desired outcomes to create value
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Experiences continuously evolve …
… causing expectations to rise
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Source: Forrester Research @NigelFenwick
Experience Expectation Perceived Value
The Digital Dilemma
As expectations rise, without changes in experience, perceived value decreases.
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2014 2015 2016 2017 2018 2019 20200%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Predators
Transformers
Dinosaurs
Base: 435 respondents
% of Business Influenced By Digital
Source: The 2016 Guide To Digital Predators, Transformers, And Dinosaurs
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Are Digital Predators Different?
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“Does your firmhave a digital business strategy?”
PredatorTransformerDinosaur
We have a full strategy in place thatdefines how our business will createcustomer value as a digital business
66%24%23%
We have a limited strategy in placethat adds digital elements tothe existing business model
27%53%
57%
No, but we are developinga strategy
2%18%
9%
No, we have no plans todevelop a strategy
4%5%
8%
Base: 435 respondents
Source: Forrester/Odgers Berndtson Q3 2015 Global Digital Business Online Survey &
Predators Create Customer Value With Digital
Predators
Predators
Transformers
Transformers
Dino’s
Dino’s
Source: The 2016 Guide To Digital Predators, Transformers, And Dinosaurs
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Today’s business
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Digital
Today’s business
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15© 2017 Forrester Research, Inc. Reproduction Prohibited Image source: CarAndDriver.com
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https://commons.wikimedia.org/wiki/File:Poser.JPG
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Digital
Bolt-on is nota winning strategy.
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Six Steps To Solve The Digital Dilemma
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Needs Desires
Design Thinking
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We need to design new digital experiences to satisfy desires
Old:inside-out
Newoutside-in
Digital prey Digital predator
Design
Deliver
Satisfy
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The new digital business model extends beyond customer experience
MobileWebAR/VR
AnalyticsAI/MLSensors
CRMIOTDM
IOTAR/VRMobile
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Shape A NewCustomer-Obsessed Culture 1
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The #1 Success Factors Of Predators
New sources of customer value
World class customer experiences
Cus
tom
erO
bses
sed
Source: The 2016 Guide To Digital Predators, Transformers, And Dinosaurs
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Empowered customers expect great experiences along the entire customer journey
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It’s easy to uncover gaps that create sub-standard experiences and outcomes
Journey Experience touch points
Discover
Get Support
Buy
Use
Evaluate
Dig
ital /
Pho
ne /
In p
erso
n
Sys
tem
s of
eng
agem
ent
Mid
dlew
are
Sys
tem
s of
reco
rd
Supporting Technology Stack
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Solving the digital dilemma demands a fundamental shift
in how a firm delivers value & drives revenue
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Source: DuPont Pioneer
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Customer desires evolve
0 16 804021 30 6555
AngstCollege
FamilyCrisis
GandchildrenFreedom
http://orig14.deviantart.net/4fc8/f/2009/220/9/6/the_one_ring_by_todd587.jpg
Image source: todd587.deviantart.com
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Image source: cerzus69.deviantart.com
›Outcomes: What are the best outcomes that will satisfy my customer’s desires?
Identify The Outcomes That Satisfy Desires
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Become Insights Driven
2
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Sensors ↳Data ↳Analytics ↳AI / ML↳Insights ↳Outcomes ↳Perceived $↳Revenue
Emerging Digital Tech Allows Better Outcome Delivery
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Out of 500,000 units, only 2 cars are the same
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Drivers configure services to satisfy their personal desires
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Scale experiences with AI/ML
Real-time analytics and machine learning directed at helping customers satisfy desired outcomes
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Invest In Creating Business Agility 3
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Source: Rebekka Minkoff
Rapid experimentation with high value experiences
Demands a business model engineered to
constantly evolve and plug & play tech
architecture
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Source: The December 2, 2015 “Unleash Your Digital Predator”
Digital businesses shift from linear value chains . . .
. . . to value ecosystems
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CX demands adaptive, secure& scalable infrastructure
Perform
ance monitoring at
every level becomes
essential
Quality (or lack of quality) propagates upward, impacting the customer’s experience.
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Simplify, Simplify, Simplify›10% of business capabilities differentiate*
›90% of business capabilities are common across the industry*
* Approximation based on client engagements. Results vary by company and industry.
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Redesign The Organization From Siloed To Connected 4
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Old siloed business models are too slow and uncoordinated...
...and new senior management roles can only act as temporary change agents
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Digital leaders are business strategists with an extra dose of digital savvy
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Most important skill sets
Entrepreneurial thinking (70%)
Leadership (76%)
Strategic Thinking (79%)1
2
3
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Replace old business silos with dynamic teams
Acc
ount
m
gmt
Des
ign/
CX
Con
sulti
ng
App
dev
& S
I
Infra
stru
ctur
eSiloed model: too slow and uncoordinated
Spe
cial
ized
se
rvic
es
Customers’ want outcomes regardless of silos
Customer segments/
desires
Persona model: clusters of experts focus on outcome delivery
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To change culture, change how people are measured
Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester Report
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To change behavior, change how people are measured
Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester Report
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48© 2017 Forrester Research, Inc. Reproduction Prohibited Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester Report
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Fuel Customer-Led Innovation
5
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Source: Microsoft
Incubate
Keeping up with customer expectations will be a
major driver of tech investment
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51© 2017 Forrester Research, Inc. Reproduction Prohibited Image source: Apple
Personal Value Ecosystem
What other experiences does the customer have today in their journey to satisfy their desires?
Can we partner / replace?
Design Inside An Experience Ecosystem
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Innovate New Product Experiences Around The Customer Ecosystem
Integrated with customer’s digital life
Updates like a smartphone
Customized inside customer’s app
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Engineer Adaptive Experiences
Integrated with your digital life
Updates like a smartphone Customized
inside your app
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Avoid The Pit Of Doom(deliver outcomes) 6
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›Do the new experiences deliver these outcomes easier, faster?
›Do existing business operations support the smooth delivery of the outcomes?
Design Experiences To Deliver The Outcomes Your Customers Value
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Source: Starwood Hotels & Resorts
Beware of setting expectations beyond operational capabilities
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From Silos to Connected Fuel InnovationDeliverOutcomes
1 23 4
56
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Build the digital DNA to Design experiences
to Deliver outcomes that Satisfy desires.
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forrester.com
Thank you
Nigel FenwickTwitter: @NigelFenwickhttp://bit.ly/nigelblog