Defining The Business Technology Agenda

Defining The Business

Technology Agenda

George F. Colony CEO, Forrester Research, Inc.

November 26, 2013

ICT CIO Day

© 2013 Forrester Research, Inc. Reproduction Prohibited 2

Agenda

› The new age

› What you should do


The age of the customer

A 20-year business cycle in which the most

successful enterprises will reinvent themselves to

systematically understand and serve increasingly

powerful customers


Customer power

› Pricing

› Shared critiques

› The ability to buy anything, anytime, anywhere, from anyone


Pricing


Critiques

› 17% were influenced by consumer ratings and reviews

› 13% by recommendations from friends and family

› 5% by online forums or blogs


Buy anywhere

22% of European online adults have ordered products from a website outside of their home country in the last three months.


Gen Y Gen X

9.4 11.4

11.2 9.0

4.8 6.1

2.3 0.7

1.5 2.4

The changing customer

Watching TV

Base: European online adults (18+)

Source: European Technographics® Online Benchmark Survey, Q3 2012

(hours per week)

Using the Internet Listening to the radio Playing video games Reading newspapers

18% less

25% more

21% less

219% more

37% less


Source: NBC News and The Associated Press (http://photoblog.nbcnews.com/)


The mobile mind shift

The expectation that any

desired information or service is

available, on any appropriate

device, in context, at your

moment of need


Computing the Mobile Mind Shift Index

40

+

Access

Base: 30,549 US online adults (18+)

Source: North American Technographics® Online Benchmark Survey (Part 2), Q3 2012 (US, Canada)

US online adults 18+

20

Devices

40

+

Locations

MMSI

100 =

100

50

0

MMSI

9.6

20

13.2

40

5.1

40

27.9

100 27.9 US avg.


The Mobile Mind Shift Index by gender

Devices Access Locations

20

30

40

MMSI

27.9 US avg.

30.0 Men

10.3

Men

14.0 5.7 + + = 30.0

8.9

Women

12.4 4.5 25.9 Women

+ + = 25.9

MMSI




20

30

40

Not all smartphone owners are equal MMSI

27.9 US average 22%

US average

Proportion of smartphone owners in shifted segments

43.5 iPhone

58%

iPhone

37.7 BlackBerry 40%

BlackBerry

30.5 Windows Phone

24%

Windows Phone

38.8 Android 44%

Android




Image source: The New Yorker (cartoonbank.com)


Winning in the age of the customer

› Widen the technology management agenda

› Build systems of engagement


Widening the tech management agenda

Tech

management

c. 1998

Tech

management

c. 2008

Tech

management

c. 2018


A projected path for IT and BT budgets

Percentage of

total technology

management

budget

2014 2016 2018 2020

BT budgets increase due to: • Mobility • Maintenance of big customer data • Customer experience demands • Systems of engagement build-out

IT costs decrease due to: • Application modernization • Moving resources into cloud • Increased standardization


Measuring the IT agenda

IT budget

Revenue


Measuring the BT agenda

BT budget

Customers created


First up on the BT agenda

› Building mobile engagement


The result:

Context-rich mobile engagement

Better customer experiences

Architecting for mobile engagement

Insight from

devices and sensors

Social

Smart products

Public as-a-service

capabilities Big customer

data

Systems of record

engagement


Systems of engagement

• Tablets in the hands of field

service reps

• GPS in app knows which

windmill you are standing in

front of

• Full content integration

includes all tools needed

• And a video link back to

experts for tough problems

• Empowers distributors to

upsell and close deals

faster

• iPad app delivers content,

sales materials, and

documents

• The close rate is 20%

faster, 31%+ in revenue

• Analytics are built into the

platform to monitor, refine,

and reward

• Replacing 250 apps with

SAP for core banking

functionality

• Embarked on “touch”

strategy and redesign of

branches to better engage

clients around financial

planning

• Using Microsoft Surface

technology and iPads to

better visualize results in

customer conversations


To conclude

› The age of the customer approaches

› The CIO and team must be involved

› First step: building mobile engagement


› In the future, all companies will be software companies.


› Learn more about succeeding with empowered customers http://solutions.forrester.com/empowered-customers

http://solutions.forrester.com/age-of-the-customer-ss?cmpid=mkt:soc:ss:AOTC_CIODay



Thank you

Defining The Business Technology Agenda

Technology

Transcript of Defining The Business Technology Agenda