2015 IT Roadmap_Driving_Business_Success_v31

Will your 2015 IT Roadmap
Drive Business Success?
© 2014 John Sing – All Rights Reserved
John Sing, Director of Technology
John Sing, john.sing@4cube.com

2015+ Digital Customer Journey
2

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http://chiefmartec.com/2014/02/1000-marketing-technology-vendors-new-normal/

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Gartner Symposium / ITxpo, Orlando 2014:
https://www.youtube.com/watch?v=6McF8AERbCM
http://www.gartner.com/newsroom/id/2865322
http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2015.pdf

Agenda:  How can I organize, visualize,
 Applying today’s
digital customer
journey
 To our business and
IT models  Let’s dive in: what’s
model today‘s reality: “Digital
Customer Journey”
underneath today’s
digital business
behavior?
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Today’s question: What lies beyond, in 2015?
Cloud
Simplicity
, time to
value,
speed to
outpace
disruption
Mobile
The new
de facto
standard
in
business
interaction
Social
Connected
business
and social
networks
Analytics
Real-time
analytics
for
behavioral
and
predictive
More than 60% of CEOs expect 15%in–si5g0h%ts of their earnings
growth in the next 5 years to come from technology-enabled
business innovations.
– McKinsey study, 2013
”
“
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 6
Source: Timo Elliott, SAP, http://timoelliott.com/blog/2014/10/what-i-learned-at-the-sap-cio-summit-mendoza-argentina.html.

Today’s requirement: IT must drive new business opportunities
71%
business leaders believe
that customer experience is
the next battleground
3X
higher operating margin
than the ones with poor
customer engagement
60%
increase in operating margin
in retail leveraging customer
Big Data as the new resource
50% a customer-centric digitized enterprise
higher sales & margins when effectively running
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 7
Source: Timo Elliott, SAP, http://timoelliott.com/blog/2014/10/what-i-learned-at-the-sap-cio-summit-mendoza-argentina.html

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Organizing these technologies….. is a challenge

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Perhaps “the answer” does not lie within IT…..
Perhaps “the answer” to 2015 lies outside……
with……

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Our customers

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Let’s consider this assertion…..

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A long time ago, there were fewer choices…..

Today’s customer / B2B problem: (too) many choices!
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http://digitalvideospace.blogspot.com/2012/11/the-coming-battle-for-second-screen.html

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Disruption in all business models (retail examples) ....
McKinsey Marketing and Sales: http://media-cache-ec0.pinimg.com/originals/ab/57/f0/ab57f0388e175b0b0f3150a5538f3cbb.jpg

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Today’s evaluation behavior, consumer or B2B : > 60% consulted
others
< 9% from
advertising
http://www.pinterest.com/pin/94083079686991394/

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Tipping point: > 50% of all internet access via mobile
Changes how, where
we consume data

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Example: “Showrooming” (auto dealer example):
http://marketingland.com/report-6-71748

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“Showrooming:” Amazon impact physical store retailers:
https://www.placed.com/resources/case-studies-and-white-papers
Top retailers
where
customer
purchased
online on
Amazon…
After or while
seeing item in
their retail store

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Customer Decision Model…. in past was like a “Funnel”
Initial
choices
Whittle
down to
final buy
Prior to 2009:

http://industriamusical.es/8-casos-de-exito-de-artistas-a-traves-del-social-media/ 21
VS.
But today….

The Problem for today’s IT and business models:
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 Today’s B2B / customer views your brand in a fundamentally different way
 Promiscuous in brand relationships – 10s/100s
 Magnified by mobile-enabled internet-scale instant searching
 Creates constantly shifting, expanding array of options
 After purchase, customers aggressively engaged with social media, public reviews, complaints
 In real-time, customers collaborate / condemn, depending on their experience, at internet scale and global speed

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All is not lost….. even if this is one’s current state:
Percentage of companies that admit they have
limited to no understanding
on how their customers interact
with them digitally
http://www.mckinseyonmarketingandsales.com/the-funnel-is-dead-long-live-consumer-decision-journey

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Could it be… there might be a new digital business model?
Prior to 2009: “The Funnel”
Since 2009:
“Customer Decision Journey”

2009: newer model identified,
continually refined since
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 “The Customer Decision Journey”
 Goal: Cut through the noise. Create “The Loyalty Loop”

4. Enjoy,
Advocate,
Bond
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“Customer Decision Journey”:
22.. EEvvaalluuaattee
33.. BBuuyy
4. Enjoy,
Advocate,
Bond
11.. CCoonnssiiddeerr
Loyalty Loop
Let’s
summarize
this model:
And it’s
6-year
journey
Four “battlegrounds”

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1. Consider 1. The customer considers an initial
set of brands, based on brand
perceptions and exposure to recent
touch points

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1. The customer considers an initial
touch points
1. Consider

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1. The customer considers an initial
touch points
1. Consider

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1. Consider 1. The customer considers an initial
touch points

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2. Evaluate
HHiigghhllyy ccrroossss--cchhaannnneell jjoouurrnneeyy
Customers / B2B add or subtract
brands as they evaluate
what they want
2/3 of interactions are “pulled” by customer from
“earned social media”

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3. Buy
Only stage where discount coupons
are effective
40% of customers change their minds at this point
Thus these are important:
- In-store / buying experience ( physical, virtual )
- Salesperson knowledge / approach
- Merchandising, packaging, visual
- Comparison shopping
- Price check, etc.

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4. Enjoy / Advocate / Bond: “Loyalty Loop”
Loyalty Loop
After purchase, customers remain aggressively engaged, publically promoting / assailing, collaborating /
crowdsourcing your brand’s development, challenging / shaping your brand’s meaning in marketplace.

Quiz: “Digital Customer Journey”: four stages
11. . C Coonnssidideerr
Initial consideration set
Based on branding
4. Enjoy,
Advocate, Bond
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Loyalty
Loop
22. . E Evvaaluluaattee
33. . B Buuyy
4. Enjoy,
Advocate, Bond
Add / subtract
choices
2/3 of interactions
based on “PULL”
Earned social media
40% change mind
“In-store” experience
Packaging, visual
Comparison / price check
Word of mouth
Reviews
Crowdsourcing
Active loyalists

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B2B version: “Global Lighting”
http://hbr.org/web/ideas-in-practice/aligning-with-the-consumer-decision-journey
Published Sept 2012:

 2008 - noticed trend:
 Distributors, direct sales people began requesting more digital content
 i.e. online pictures, product specifications, design tools, sources for usage ideas
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 2009 - response:
 CEO/President sensed this was much bigger, strategic issue: a digital customer journey
 Formed team: new Chief Marketing Officer, new VP of Digital Marketing, new digital marketing talent, began parallel organization to existing IT
 Initiated a multi-year, phased re-organization of corporation: necessary to achieve customer 360 degree view, consistent customer experience

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2009 findings
(4 months):
1. Discovered their customer’s online activities: discussions,
huge online research, sharing advice
2. Using social sites
(not their website).
Image searches, by part
# (not home page).
Competitors.
5. Inspiration: creating
ideas. Sharing: of projects.

IInnssppiirraattiioonn
SSeerrvvicicee E Exxppeerrieiennccee
39
SSppeecciiffiiccaattiioonn
RFP / Price
Comparison
RFP / Price
Comparison
SShhaarriningg
BBuuyy
Their particular
Digital Customer
Journey:
Multiple online image-rich consistent channels,
social media
Easy to use, dynamic product,
energy, physical data,
download into customer’s
building / energy mgmt software
Customer call center
real person over phone.
Consistent experience
with online channels and
service.
Incentives
for sharing
Call center integrated
consistent experience
-

SSppeeccifiifcicaatitoionn
InInssppiriaratitoionn
40
RFP / Price
Comparison
RFP / Price
Comparison
BBuuyy
SSeervrvicicee E Exxppeerireiennccee
SShhaarirningg
2008 - Sept 2012
2012: Harvard concludes the “digital customer
journey” fully applies to B2B

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If you agree with this model…... how does IT respond?
 Significant research, by entire business
industry, for past 6 years
 Distilled into step-by-step best practices

Recent research; more created every day
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http://www.mckinsey.com/insights/business_technology/reinventing_it_to_support_digitization
http://www.mckinsey.com/insights/marketing_sales/digitizing_the_consumer_decision_journey

Customer-centric redefinition
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Reinventing IT for “Digital Customer Journey”
This isn’t a “social media /
internet marketing strategy”
It is a fundamental
of
Business Go-To-Market
Why?

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 Research shows…. Digital Customer Journey
can’t / shouldn’t be owned by IT
– Successful stories - owned by a CMO (Chief
Marketing Officer) or equivalent
 Digital journey requires:
– A consistent customer experience
– Across all touch points, departments, channel
partners, owned and earned media
 To achieve that:
– Plan for a required reorganization of the business
and IT itself (will take time)
– In order to re-align, integrate multiple new roles

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Successful Key Steps
#1:
Strategically plan for central data
mart, with 360 degree view of all
customer contacts with your brand
 Across all channels
 Across both owned and earned
media

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#2: Will require top down C-level leadership, top priority, funding
• Owned, funded, coordinated, driven
by CMO and newly hired digital
marketing chief
• Staffed for centralized, rich media
content creation, dynamic content
management
• Integrated, consistent delivery
across all channels
• Plan for associated investment in
supply chain, call center, distributor
support, etc. for new customer touch
points

Best practice: Start with a parallel organization
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#3: Will require new, different, elite IT talent
 Mobile
 Social
 Digital marketing
 Big Data analytics
 Cloud
Complete discussion on new, different IT talents required: http://slidesha.re/1mI7W77
Cloud
3.0

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#4: Will require new sourcing and IT arrangements, to rapidly scale up/down, both
workforce and capacity
• Cloud
• Project-based work style
• Crowdsourcing,
collaboration
• Leverage millennial
generation workforce talent
and work style flexibility
Complete discussion on sourcing, cloud IT arrangements:
http://slidesha.re/1mI7W77

#5: Agile development, rapid releases
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Based upon a rapidly re-composable cloud-based IT infrastructure
Complete discussion on sourcing, cloud IT arrangements:
http://slidesha.re/1mI7W77

#6: Gather, purchase high-quality integrated Big Data 360 customer view
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 Integrating:
– Real time analytics, geo-locational mobile, social
media, etc.

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#7: Success story common thread: far-reaching IT organization changes
Ranging from IT talent to infrastructure
Will take multiple years to complete
Do in phases
Begin now
DDiiggiittaall HHuummaanniissmm
Discussion of significant IT organizational changes required to
support cloud-oriented infrastructure: http://slidesha.re/1ybMnh3

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Best practice for success: “parallel IT” approach
•Build a parallel IT team to existing IT organization
•Staffed with requisite new management, required new elite IT skills
and digital customer journey mindset
•Prove/refine 1 or 2 most critical areas that must be addressed
immediately, at small level
•Then over time scale it to rest of the organization, business model,
and company
• Buys time
• Allows IT personnel, IT and business organization to
adjust
•As necessary, shift resources from traditional legacy IT to new IT
organization, over time

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This is neither easy nor obvious. But it is today’s researched reality

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Learning Points: 2015 IT Roadmap for Business Success
1. Strategically plan for 360 degree customer view - plan to gather, source, purchase,
analyze high-quality integrated data
2. Advocate for clear, central CxO leadership for a Digital Customer Journey
3. Plan for new, elite IT talent in search, social media, site design, digital publishing,
dynamic content management, cloud, big data analytics. Parallel IT approach.
4. Plan for associated investment in supply chain, call center, distributor support, etc.
for new customer touch points
5. New sourcing, new IT arrangements to scale workforce and capacity rapidly - cloud
6. Agile development, rapid releases. Parallel IT approach.
7. Multi-step shift in IT resources and organization, over time. Integrating real-time
analytics, GPS mobile, social data. All based on rapid re-composable scalable
cloud-based IT architecture. Parallel IT approach, in phases.

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4. Enjoy,
Advocate,
Bond
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1st step: understand your “Digital Customer Journey”
Loyalty Loop
22.. EEvvaalluuaattee
33.. BBuuyy
4. Enjoy,
Advocate,
Bond
11.. CCoonnssiiddeerr

57
in 2015 – will continue to explore relevant IT technologies:
 Cloud
– On/off premise
– Hybrid
– Hyper-converged
– Software defined
 Analytics
 Mobile, Social
 much more….
For a 2015 customer-centric digital world

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http://franksdesigns.com
For designing some of
the key graphics:

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Notes – Where did this all come from
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1. June 2009: McKinsey publishes the initial “consumer decision journey” paper:
http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
2. December 2010: Harvard Business School publishes “Branding in the Digital Age – You’re Spending Your (2010 Marketing)
Money In All the Wrong Places”:
http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places/ar/1
3. Above evoked industry-wide discussions, prompting this 2012 B2B follow-on: “Aligning with Consumer Decision Journey”:
4. By April 2013, dynamic content management becomes the norm in digital marketing:
http://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketing
5. By May / June 2014, the best practices for Reinventing IT to support digitized customer journey had become clear:
http://www.mckinsey.com/insights/business_technology/reinventing_it_to_support_digitization and
http://www.mckinsey.com/insights/marketing_sales/digitizing_the_consumer_decision_journey
6. All of this has evolved into a strong body of research, here’s the McKinsey free online versions:
http://www.mckinsey.com/client_service/marketing_and_sales/latest_thinking/customer_decision_journey
Also do search on “David Edelman”, author of papers #2 and #3 above.

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John Sing  32 years of experience in enterprise servers, storage, and software
– 2014: Director of Technology, 4cube – Infrastructure for Tomorrow
– 2009 – 2014: IBM Executive IT Consultant: IT Strategy and Planning, Enterprise
Large Scale Storage, Internet Scale Workloads and Data Center Design, Big Data
Analytics, Cloud Infrastructures, High Availability, Disaster Recovery
– 2002-2008: IBM IT Data Center Strategy, Large Scale Systems, Business Continuity, HA/DR/BC,
IBM Storage
– Previous experience 1990s: Enterprise Storage Server Marketing Manager, Planner. International
experience in Europe, Asia, IBM Hong Kong, IBM China, Systems Center, Specialist
 John.sing@4cube.com
 @john_sing
 Follow my daily IT research blog
– http://www.delicious.com/atsf_arizona
 Follow me on Slideshare.net:
– http://www.slideshare.net/johnsing1
 LinkedIn:
– http://www.linkedin.com/in/johnsing

Visualizing what Algorithms are doing
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 Kevin Slavin at TEDGlobal July 2011
 “How algorithms shape our world”
http://www.ted.com/talks/kevin_slavin_how_algorithms_shape_our_world

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October 2014 issue
 Virgin America gains access to
Dallas Love Field due to Facebook,
Twitter, YouTube campaign
 Ford Motor Company prioritizes
new care features based on
internet-scale crowd-sourced data
 Wells Fargo manages their
worldwide brand via Social Media
Command center
http://www.cio-digital.com/ciodigital/october_1__2014

Big Data: the Journey to Value
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1. Data + Analytics = Information
2. Information + Context = Insight
3. Insight + Actions = Desired Outcomes

http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2015.pdf 66

“If I had an hour to solve a problem,
I’d spend 55 minutes thinking about
the problem and 5 minutes thinking
about solutions”.
Albert Einstein
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Let’s consider the
“Problem”

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69
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