Making Leaders Successful

Every Day

Process In The Age Of The

Customer

Clay Richardson, Principal Analyst

June 9, 2014

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Strong Winds Reshaping Business Process

and Customer Engagement Landscape

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Source: Adapted from October 2013, “Competitive Advantage In The Age Of The Customer”, Forrester report

Age of the Customer Reshapes Demand and Focus of Process Efforts

Assembly lines Supply chains Automation Engagement

Business process evolution

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Source: February 2014 “Navigate The Future Of CRM In 2014”, Forrester Research report.

New CRM Patterns Embrace Two-way Customer Dialogue

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Source: Q3 2013, Global State of Enterprise Architecture Online Survey, Base: 90 EA Professionals

Investments Shifting to Connect BPM and CRM for Customer Engagement

Over the next 12 months, do you expect to see an increase or

decrease in demand for the following BPM related activities?

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Case example: Retail Banking Industry

Average customer is 69

years old

Future customer is

much younger

Image source: iStockphoto (http://www.istockphoto.com/)

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Trend #1: New methods drive deeper

customer engagement

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What is Design Thinking?

› “Design thinking is a collection of practices that helps teams better identify with customer experiences, and shift from logical problem solving to creative experimentation.”

Source: June 2013, “Design For Disruption: Take An Outside-In Approach To BPM”, Forrester report

Which of these techniques are used consciously/deliberately within your change program (or have some impact upon it)? (select all that apply)

15%

36%

16%

26%

43%

Persona design

Customer journey maps

Service blueprinting

Design Thinking

None of the above

Base: 171 Business process professionals

Source: Q3 2013 Global Forrester/IQPC Business Process Maturity Survey

Process change teams adopt design thinking techniques

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Design

Thinking

Practices

Systems

Thinking

Practices

• Holistic

• Linkages

• Logic

• Deductive

• Specific

• Context

• Empathy

• Abductive

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We all have empathy, right?

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Borrow from the design thinker’s toolbox

TOMS

Capability Maps

Process Models

BP Toolbox

Journey Maps

Personas

Storytelling

Design Toolbox

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Case example: Medical device industry

“How can we

improve the

process

experience for

onboarding

new

customers?”

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Initiate

Contact

Evaluate

Options

Install

Service

Sales

Process Delivery

Process

Servicing

Process

Order

Service

Customer

Journey

“Worried”

“Over-

whelmed”

“Relieved”

“Anxious”

Process redesign

opportunity #1

“Frustrated”

Process redesign

opportunity #2

Billing

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Trend #2: Build systems of engagement

for contextualized interactions

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Level of User Engagement

Highly

Interactive

Best

Practice • Collaborative processes

• Highly customized

• Knowledge intensive

• High value tasks

• Adaptive environment

• Consistent processes

• Non-differentiating

• Transaction oriented

• Regulatory mandates

• Rarely changes

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Increased Demand for BPM Solutions that Support Customer-facing Processes

Transactional BPM

• High transaction volumes

• Structured processes

• Slow to change

Engagement BPM

• Adaptive user experience

• Unstructured processes

• Mobile social work patterns

• Intelligent guided processes

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Future: Context, situation awareness & predictions Profile

Persona History

Situation

Likely behavior

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System Of

Engagement

System

Of Record

Consistent processes and data

Non-differentiating, non-competitive

Transaction oriented

Regulatory requirements and mandates

Rarely changes

Collaborative processes and tasks

Highly customized user interface

Knowledge intensive

High cost, high value tasks (complex)

Adaptive environment

Best

Pra

ctice

Inte

ractive

*See notes for explanation of weightings

Reference Architecture for Engagement

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Trend #3: Increased funding for revenue-

based business cases

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Refocus Business Cases from Cost to Revenue

› Grow revenue.

› Protect revenue

(avoid downside).

› Avoid future costs.

› Reduce current costs.

Historically the base for most

BPM-generated business

cases

© 2014 Forrester Research, Inc. Reproduction Prohibited 23 Image source: Bloomberg Businessweek (http://images.businessweek.com/)

Refocus Business Cases from Cost to Revenue

› Grow revenue.

› Protect revenue

(avoid downside).

› Avoid future costs.

› Reduce current costs

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Shift Process and Customer Metrics Focus on Revenue Drivers

Revenue Growth Cost Efficiency

Advocacy Quality

Engagement Productivity

Convenience Efficiency

Revenue-based Process Metrics Focus on Customer Engagement

Convenience

• Time to complete

• Channels engaged

• Number of attempts

Engagement

• Abandoned carts

• System workarounds

• Shadow processes

Advocacy

• Net promoter scores

• Visitor frequency

• Social sentiment

Thank you Clay Richardson

crichardson@forrester.com

+1 703 584 2630