BMC Exchange "Digital Disruption Leads to Digital Services Revolution"
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Transcript of BMC Exchange "Digital Disruption Leads to Digital Services Revolution"
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Digital Disruption Leads to Digital Services RevolutionThe Implications for IT
Twitter: @eoehrlich
Eveline Oehrlich, Vice President, Research Director
November 19, 2013
BMC Exchange Midwest
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DisruptionIsUpon Us
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Evidence
› Disruption has a new source of funding -
individuals
› Ecosystems have shifted - Google and Microsoft
compete against Apple
› CEO of Amazon.com buys a newspaper
› Netflix wins Emmy using consumer data
› Wearables disrupt wearables
› Applications disrupt traditional business models
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© 2013 Forrester Research, Inc. Reproduction Prohibited 4
A 20-year business cycle in which the most successful enterprises will
reinvent themselves to systematically understand and serve increasingly
powerful customers.
The Age of the Customer
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Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
The Age of the Customer
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External forces impacting the enterprise (3-5 Years)
Source: "The Customer-activated Enterprise –Insights From The Global C-suite Study”, IBM Institute For Business Value, October 2013
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Technology touches every step of the journey
Journey Experience touchpoints
Discover
Get support
Buy
Use
EvaluateD
igital | P
hone | I
n-p
ers
on
Syste
ms o
f engagem
ent
Mid
dle
ware
Syste
ms o
f re
cord
Supporting technology stack
YOU
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Technology, systems, and processes to win, serve, and
retain customers.
Business Technology
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Facts
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Marketers are underwhelmed by TechnologyManagement’s performance
October 2013 “Technology Management In The Age Of The Customer”
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2020
Percentage oftotal technology
managementbudget
201820162014
IT costs decreasing due to:• Application modernization• Moving resources into cloud• Increased standardization
IT
BT budgets will grow quickly
Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
BT budgets increasing due to:• Mobility
• Maintenance of customer big data• Customer experience demands
BT
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Technology spending is shifting
October 2013 “Technology Management In The Age Of The Customer”
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Key areas IT must focus on
Customerobsession
The mobile mind shift
Digital disruption
Age of the Customer
Big data
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Customer experience is driving shareholder value
October 2013 “Technology Management In The Age Of The Customer”
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READY?Ready?
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From Order-taker
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To Innovation
partner
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Step1:
We need to
change
we work.
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What
businessare we in?
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Step 2: Change your team’s goals.
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Step 2: Change your team’s goals
› Focus on business outcomes.
• Make Business Unit managers successful.
• Make workforce happy.
• Make CIO successful.
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Step 3: Engineer “moments of truth”
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Touch points
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Step 4: Use the pyramid of service to design your employee experience
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ProductProduct PricePrice
ProcessProcess
PromotionPromotion
PhysicalPhysical
PlacePlace
PeoplePeople
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…focus on customer experience
Stop pushing the ITIL Kool Aid…
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Step 5: Communicate and deliver value
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IT leadership recommendations
To win in the “Age of the Customer”
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Deliver service & capabilities
› Streamline service request
management.
› Enable self-help and self-service.
› Continue (or start) knowledge sharing
and collaboration.
› Develop your service taxonomies and
with it your service catalogs.
DE
MO
S
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Enable your business teams
› WOW them.
› Focus on workforce productivity every
time.
› Measure and improve workforce
productivity.
› Insert new roles (marketing, service
owners, customer experience managers).
DE
MO
S
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Monitor & manage the right way
› Know your mission critical / business
critical services and applications.
› Monitor “EUE” from the outside in.
› Instrument across services (BSM).
› Report the right KPI’s; know what matters
for your LOB.
DE
MO
S
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Orchestrate & automate
› Think in terms of a supply chain manager.
› Automate as much as you can.
› Automate sensibly.
› Establish, manage and monitor SLA’s.
DE
MO
S
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Simplify & accelerate
› Reduce complexity by understanding.
› Adopt new business models (SaaS).
› Initiate bridging gaps (DevOps).
› Shift your people into new roles.
DE
MO
S
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Questions?