© 2019 FORRESTER. REPRODUCTION PROHIBITED. · Customer Experience Quality. Customer . Loyalty. Improving . end-customer experience (CX) quality helps firms deliver on customer obsession

© 2019 FORRESTER. REPRODUCTION PROHIBITED.

© 2019 FORRESTER. REPRODUCTION PROHIBITED.

How To Thrive In The Era Of Digital DisruptionBobby Cameron, VP & Principal Analyst, Serving CIOs

April 29, 2019

3© 2019 FORRESTER. REPRODUCTION PROHIBITED.

We’re discussing two tightly-coupled stories . . .

1. Business transformation• Firms becoming customer obsessed — new ways to create and deliver value• Changing their customers’ experiences — and how the business operates

2. IT transformation• Cloud-first• Platform-based — leveraging managed APIs and microservices

› Systems-of-engagement, -insights, -automation, and -record• Zero-trust security• Continuous delivery (Agile & DevOps, using continuous integration and

testing) with dynamic backlogs, navigating to outcomes thru test-and-learn


Leading firms follow customer-obsessed principles

Source: Forrester’s “The Customer-Obsessed Enterprise” report

Customer-in strategy and design

Evidence-based decisions for smart decisions

Rapid test-&-learn continuous delivery

End-to-end CX, across customers’ ecosystems and the firm

Customer-obsessed principles . . .

. . . continuouslydeliver


Digital business plays a key role in customer-obsessesd firms—reaching beyond web sites and mobile apps

Source: Forrester’s “Optimize Your Cloud Organization For Speed And Customer Delight” report


EffectivenessThe experience delivers value to customers.

EmotionCustomers feel good about their experience.

EaseIt’s not difficult for customers to get value from the experience.

Customer Experience Quality

Customer Loyalty

Improving end-customer experience (CX) quality helps firms deliver on customer obsession

RetentionThe likelihood that a customer will keep existing business with the company

EnrichmentThe likelihood that a customer will buy additional products and services from the company

AdvocacyThe likelihood that a customer will recommend the company to others


Complex customer experiences require complex digital solutions

Source: Ralph Stacey, Agreement And Certainty Matrix (Appelo, 2012) and Forrester

Chaotic

Complex —has to be discovered

customer / user-experience based,systems-of-engagement and -of-insights

Complicated —can be modeled

operational, systems-of-record

Simple

Needs uncertainty —for all stakeholders, especially customers

Solution uncertainty —technical, functional, etc.

High

HighLow

Low


Customer-obsessed firms transform in three phases

This is for internal use only

Customer naïve, aware Customer committed Customer obsessed

They deliver CX as point solutions, isolated by BU and functions like sales, marketing, customer service, and fulfillment. Modernizing apps, Agile delivery only for customer touchpoints, and distinct tech and business teams absorb funds and focus.

These firms depend primarily on vendors for innovation —following market leaders.

They deliver end-to-end CX —consistent across channels and spanning the enterprise. Cloud-first, platform-focused, with continuous delivery —testing and discovering what works through Agile and DevOps, with continuous testing and integration.

Individual units and tech organizations dynamically collaborate to transform CX.

They act as a platform for customer value creation and delivery. They experiment with emerging technologies, recognize new opportunities, and flex to incorporate it.

The organization and partner networks change quickly to disrupt current markets, adopt adjacencies, and address new markets.

Beginner firms (47%)

Intermediate firms (35%)

Advanced firms (14%)


Most digital solutions move beyond systems of record to drive speed and responsiveness

Source: April 27, 2015 “Digital Insights Are The New Currency Of Business”

Systems of record run operational processes —

executing transactions, aggregating and moving

data, and performing analytics.

Systems of engagement empower customers, partners, and employees with context-rich apps and smart products to help them decide and act in their moments of need.

Systems of automationare technologies that connect the virtual and physical worlds —intelligently managing physical products, networks, and infrastructure.

Systems of insight are the business discipline and

technology to harness insights and consistently

turn data into action..

65-70% of tech spend goes to systems of record


Digital technologies are challenging old retail paradigms

› Digital touchpoints are vital components of the in-store experience

› Consumer smartphone use means that digital is already entrenched in the store

› Retail foot traffic is challenging, but downsizing alone isn't sufficient.

› Nimble pure-play online retailers are establishing physical footprints

Source: Forrester’s “State Of The Digital Store” report


Look at Amazon’s CX history — innovation sits on top of deep automation

Source: Forrester’s “AI In Retail? Let’s Start With Automation In Retail” report


Retailers will engage mobile solutions to improve the store experience

Source: Forrester’s “The New Paradigm Of Retail” report


Digital customer experience requires a digital store platform that drives store transformation

Source: Forrester’s “The Future Of The Digital Store” report


Digital stores mature in four stages

Source: Forrester’s “Design Your Digital Store Blueprint For Customer Impact” report


We’ve been discussing two tightly-coupled stories . . .

1. Business transformation• Firms becoming customer obsessed — new ways to create and deliver value• Changing their customers’ experiences — and how the business operates

2. IT transformation• Cloud-first• Platform-based — leveraging managed APIs and microservices

› Engagement, insights, automation, and record• Zero-trust security• Continuous delivery (Agile & DevOps, using continuous integration and

testing) with dynamic backlogs, navigating to outcomes thru test-and-learn

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Thank you© 2019 FORRESTER. REPRODUCTION PROHIBITED.

Bobby Cameron+1 [email protected]

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© 2019 FORRESTER. REPRODUCTION PROHIBITED. · Customer Experience Quality. Customer . Loyalty. Improving . end-customer experience (CX) quality helps firms deliver on customer obsession