Most organizations have a large digital experience gap, both for customer and employee experiences. The solution is to much more strategically use their assets, including data, IT systems, and people, more effectively to industrialize and scale their experience capabilities. I recently explored both the business imperative for why as well as the means for how to accomplish this in a lunch keynote at the 10th anniversary Cloud Expo in New York City.
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Constellation Research
We Live in Exponential Times
3
Mobile Traffic through 2020
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Constellation Research
The Imperative: Poor Digital Adaptation Wiping Out Institutions Faster Than Ever
4
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Constellation Research
5
We’ve learned that digitally connected
organizations get outsized benefits
Source: McKinsey Social Technology Survey (3,000 firms)
25% average
improvement
in organization
outcomes
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Constellation Research
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Constellation Research
Digital Adaptation’s Biggest Challenge is Entrenched Culture and Lack of Skills
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Constellation Research
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Today’s Imperative: Engagement in Each Step of the Digital Experience
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Constellation Research
Digital Experience is Becoming the Leading Focus of Digital
9
Because Intersection of Cloud and the Marketplace is Where the Value Lies
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Constellation Research
The Digital Imperative: Customers Will Pay More For It
10
Source: Capterra
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Constellation Research
Goal: Organizations that can quickly and nimbly use cloud to succeed
• Developing a more engaged customer journey
- Better experiences
- Better products
- More integration
- In channels consumers prefer
• That produces better results for the business
- Sales
- Customer Satisfaction
- Loyalty/Advocacy
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Engagement Experiences
Service Experiences
Advocacy Experiences
Marketing Experiences
Shopping Experiences
Advocacy is
up to 6x
more cost
effective than
push
marketing
It Costs more
Than 5X Less
to Retain Than
Acquire New
Customers
13. ‹#›@dhinchcliffe
What Does a Digital Business Do Today?
+
• Personalized Content and Conversation
• Proactive and Automated Digital Service
• New Digital Products and Services
• End-to-End, Seamless Customer Experience
Digital Cloud Foundation
A B
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Constellation Research
Nor a Single Experience: A Multichannel Cloud Presence… Everywhere
15
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Constellation Research
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Using Every Digital Asset to Drive Results for the Stakeholder
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Constellation Research
17
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Constellation Research
And Why You Probably Can’t: Have You Architected to Unleash Capability?
18
“The persistent digitization of Nordstrom’s business has allowed the
company to grow revenues by more than 50% in the last five years”
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Constellation Research
The Big Picture: Designed, Co-Created, Multi-Cloud, Multi-Channel Experiences
19
Omnichannel Digital
Experience
• Customer Experience
Management
• Customer Analytics
• Social Listening
• Gamification Engines
• Feedback Management
• Reputation Management
Technologies
workforce
partners &
suppliers
customers &
market
Web presence &
mobile apps
CRM
e-mail social
media IoT
integrated #cx
• Responsiveness
• Transparency
• Open Collaboration
• Trust & Context
• Shared Purpose
• Shared Outcomes
Values
• Stakeholder Community
• Social Networks
• Community Platforms
• Loyalty & Advocacy Tools
• Relationship Management
• New Digital Products
designed
multi-channel
customer
experience and
NEW DIGITAL
PRODUCTS
…Aimed at Creating Shared Value
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Constellation Research
Just as Digital Experience Becomes an Exponential Challenge
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Every Non-Trivial Object
is Becoming Connected
To Our Organizations
20 Billion Devices by 2020
Hundreds of Types of Smart Devices
3 Billion Devices by 2020
Millions of Apps
5M Apps by 2020
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Constellation Research
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Because the Digital Experience Landscape Has Grown Unmanageably Complex
Source: Scott Brinker
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Constellation Research
Centralized Processes Can No Longer Address Digital Experience Alone
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… We Can (and Must) Enlist All Our Stakeholders to Create CX/DX
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Constellation Research
The Advent of Low and Code Citizen Development
• Empowerment of ordinary people to
create useful applications
• Supporting tools that make app
creation just a few clicks
• Conducted in an enabling
organization that provides the time
and resources to individuals with
innovative app ideas
• A better, more scalable enabler to
unlock the technology backlog
residing in most organizations
• The shortest path to tapping into
business value with digital
investments
• A way to unleash widespread digital
transformation at scale
Expedia gets 90% of its revenue from mostly low
code apps built by others using APIs.
Source: HBR
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Constellation Research
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Constellation Research
25
Leading Case Study: Hybridization of disciplines:
Customer Experience + Big Data + Marketing + Analytics
T-Mobile wanted to get out ahead of customer defections to
other carriers. They needed an accurate and scalable source of
information. They looked to social media.
The Story:
The Results:
The firm integrated big data across their IT systems, using near
real-time the analysis of 33M customer data records, web logs,
billing data and social media information. The result: The
company was able to cut customer defections in half in a single
quarter.
Proactive digital
experimentation in
the cloud cut
defections in half in a
single quarter
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Constellation Research
We Need a New
Stack in the Cloud
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Constellation Research
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Constellation Research
Digital Lesson: What Worked in the Past, Won’t Work in Exponential Era
28
Let the Network Help Create Great CX
Decentralize But Coordinate Seamless CX
Leverage the Power Laws (i.e. Network Effects)
Automate CX with AI, Chatbots to Scale
Education and Skill Building Key Enablers
Seek Opportunity, But Don’t Chase Fads
Examples
• Low Code/Citizen Developer
• API landscape
• Shadow IT as innovation
• 100x More Apps
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Constellation Research
Most Of All, Don’t Forget: It’s About People As Much As It Is Tech
29
Digital Experience Is About 1:1 Relationships at Scale