A point of view explaining what "social" means for enterprise IT and the impact it is likely to have on the enterprise.

1. WHAT DOES “SOCIAL”
MEAN FOR ENTERPRISE IT
Mark Walton-Hayfield @markw_h
Principal Business Strategist @CSC_UK
MARCH 2013
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2. New factors are affecting your relationships with customers, partners,
and employees - they will have a significant impact on the enterprise.
Today’s customer experience
The rise of “social”
The rise of “mobile”
Today’s enterprise is not architected to meet customer expectations and cannot scale to use
new channels or integrate customer experiences across multiple channels or products easily.
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3. BUT “social” is not just about social media!
People, expectations, and new entrants are all changing markets.
Potential time lag between demand stimulus and response
1 Day Retail Store/Branch
Fax
.5 Day E-Mail
Call Center — Voice
1 Hour Call Center — IVR
Website
10 Minutes SMS/Mobile Data
Interactive TV
1 Minute Comparison Engines
Web Chat
Consumer Web Services
1 Second Social Mobile
1975 1985 1995 2000 2005 2010 2015
Source: Gartner
sketch re-used courtesy of @MarkTamis
It is no longer enough to rely on what you have always done, there is a need to consider your
business model and your business strategy to take account of the impact of 2013 realities…
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4. People now spend their time in different places doing different things to
what they used to do. However, marketing spend is not aligned.
Asset-Heavy
Wallet with Cash/Coins/Credit Cards/Reward Cards
Asset-Light
Square/PayPal/Google/Apple
Smartphone is the new wallet with payment, reward, tickets
Source: http://techcrunch.com/2012/12/03/mary-meekers-year-end-trends-report-mobile-tablets-24-of-online-shopping-on-black-friday-up-22-from-2012/
At the same time more and more products and services are being re-imagined but the movers are
typically new entrants using new business models supported by Asset-Light cloud infrastructures.
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5. The business response is manifested in today’s business mantras
whilst they can be quick to implement, how do you drive real benefits?
New approaches are being used in response to the challenges faced. However, they are frequently
led by the business and have little enterprise IT input and are built/implemented standalone way.
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6. The most advanced companies are conducting “social” holistically,
and beyond individual silos, it is important to integrate and measure.
Source: CMS Wire
Source: @jowyang @altimetergroup
Understand social customers, the goals you have for them, and create experiences to ensure they
stay in the funnel and convert to a customer. Provide ROI using different metrics at different levels.
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7. What does it mean for enterprise IT and how can enterprise IT
respond in order to support the business enabling goals to be met?
Shifting Platforms Driving Business Value from Enterprise IT The Move to Advanced
Enterprise IT Models
Bottom-Line Value Top-Line Value
• Cost-reduction • Uncertain markets
• Control • New technologies
• Consolidation • New forms of value
• Reliability • Product innovation
• Standard platforms • Customer-centricity
• Proven technologies • Intellectual property
• One size fits all • Real-time intelligence
• Compliance • Empowered employees
Source: CSC Leading Edge Forum Research - The Future of Retained IT - http:/lef.csc.com/publications/924
If IT is to add value then the role of IT must change. No longer can it be just a back office function,
it must lead the business with a combination business acumen and technology prowess.
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8. A number of key architecture domains are vital to ensuring the
business will meet its goals when powered by enterprise IT.
Business Architecture Information Architecture Security Architecture
What is your Customer Strategy? How do you connect the Extended Enterprise How do you push data and applications
How do you remove F-R-I-C-T-I-O-N? across all stakeholder groups? to the outside and manage risk?
Source: CSC Leading Edge Forum Research - The Consumerization
Workbook – http://lef.csc.com/publications/1058
Common themes are about removing silos and digitally connecting the stakeholders affected by
your business footprint in order to provide an improved product or service to your customers.
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9. Understanding your operating model and alignment with the business
and technology architecture is a challenge that must be addressed.
Support Communities Integrate “social” into the Enterprise Re-imagine Business Processes
“A group of people with unique shared Turn Insights into Business Action support them across multiple channels
values, behaviours, and artefacts”* Bring information from the outside-inside and vice versa providing a unique customer experience
Old Lending Processes
Bank Branch / Paper Applications / Lengthy Approvals
New Lending Processes
Lending Club / Online UI / Apply & Funded in Days / Lower Rates
*Source @rhappe The Community Roundtable @TheCR
If you allow silos to be created through a lack of response to the business then you will be less likely
to succeed. Focus on the customer and how you perform the jobs they hire you to do for them.
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10. The impact on the IT estate will most likely affect a number of areas
which have not been so prominent historically.
Sales and Marketing Customer Service Business Operations
Manage content and its distribution/use Manage in-flight processes, anticipate customer needs, combine Understand how requirement gaps can be most
especially in regulated markets different data sources for new insights and manage business rules effectively filled and at what layer in the architecture
As markets become more open and transparent and more direct to consumer transactions
are undertaken there are a number of business areas that will need new kinds of support.
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11. Once aligned with a business strategy social, mobile, analytics, xRM,
and collaboration can be used to enable meaningful transformations.
xRM
Collaborate with customers, partners, and employees
Understand jobs-to-be- done
Co-create to meet expectations
Act on insights
Provide and surpass the expected experience
Collaboration
Source: CSC Leading Edge Forum Research –
Leveraging the Co-evolution of Marketing & IT – lhttp://ef.csc.com/publications/1003
The focus of Enterprise IT will align to the business demand for enabling business transformation
objectives, as such new organisational models are emerging to support Marketing Technology.
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12. A number of threats, opportunities and solutions exist. Strategy &
Architecture leaders must communicate clearly with business leaders.
As customers share more information on social networks, i.e. marriage, births, and retirement the Financial
Services industry will be start to capture and use it. However, as Juergen Weiss points out in a few years time the
Social Networks will most likely start to offer Banking and then “naturally” Insurance products themselves. Perhaps
initially through joint ventures with existing institutions but not necessarily the bigger firms.
The major social networks have not yet had a significant impact on financial services, they
probably will in the future unless deep underlying changes are made or partnerships formed.
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13. A radical enterprise IT approach will be needed in order to meet some
of the challenges that the business is facing.
Serious consideration needs to be given to subjects like buy vs build, subscription models
and economies, multi-sided markets, cloud deployments and integrations with other services.
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14. WHAT DOES “SOCIAL”
MEAN FOR ENTERPRISE IT
Mark Walton-Hayfield @markw_h
Principal Business Strategist @CSC_UK
MARCH 2013
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