Adaptive apps as the name suggests, anticipate and adapt to the needs of each customer to deliver more relevant and profitable interactions. By combining predictive analytics, big data, and APIs, they deliver individualized experiences that build strong, lasting relationships with customers. Adaptive apps promise to revolutionize how we imagine, design, and build apps and APIs for a wide variety of use cases. In this track keynote, we’ll introduce the concept of a adaptive app, describe the opportunities they present, and discuss how you can start taking advantage of predictive analytics and APIs to accelerate your business.

1. Adaptive Apps: Reimagining
The Future
Mike Gualtieri, Principal Analyst
Forrester

2. Adaptive Apps: Reimagining
The Future
Mike Gualtieri, Principal Analyst
September 9, 2014

3. We have entered the age of the customer
© 2014 Forrester Research, Inc. Reproduction Prohibited 3

4. #Royalty

5. Trend
Consumers want to be treated like royalty.

8. Royalty experiences
have contextual
awareness and adapt to
serve a single consumer.

9. Treat consumers like royalty to get
their loyalty.

10. Quiz
How well do you know this consumer?
› Male
› 35 years old
› Single
› Resides in New York
City
› Makes $100,000 per
year
What do you predict he would do
if the bank accidently transferred
$5,000 into his bank account?
A. Give the money back
B. Take the money and run
© 2014 Forrester Research, Inc. Reproduction Prohibited 10

11. George Costanza

12. #BigData

13. Trend
Big Data means all your data++.

14. Most technology decision makers get it; 30% of
business decision makers are confused.
30%
9% 8%
7%
12%
21%
35% 34%
30%
14%
The term “big data”
is very confusing; not
sure what it means
It’s a bunch of hype
with little substance
and few new ideas
It’s about new
technologies that
allow us to handle
more data
It’s an extension of
existing analytics and
BI practices suited
for data that is larger
or faster than we are
used to
It’s a whole new way
of thinking about the
value in data that
requires new
analytics and
leverages some new
technologies
Business Decision Makers Technology Decision Makers
Base: 452 North American technology decision-makers
Respondents answering “don’t know” are not shown
Source: Global Data and Analytics Survey, 2014
Base: 249 North American business decision-makers
Respondents answering “don’t know” are not shown
Source: Global Data and Analytics Survey, 2014
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15. Big Data gushes from many sources…
• Data described by a schema
• Relational database, XML,
delimited flat file, system events
Structured
text
• Free-form text
• Email, documents, tweets, blog
comments, Facebook status,
genome
Unstructured
text
• Audio, images, video
• Surveillance cameras, geological
survey maps, Siri voice
Binary
© 2014 Forrester Research, Inc. Reproduction Prohibited 15

16. eCommerce
MRP
Web analytics
eCommerce
Web
Mobile
Finance
Customer Service
CRM
Claims
BPM
Excel & Access
Data
warehouse
Planning
Email
Customer Service
ERP
Marketing
Social
Media
POS
Field Operations
VOC

17. Quiz
What percentage of enterprise data do firms
use for analytics?
A. 12%
B. 34%
C. 53%
D. 76%
Enterprise
Data
© 2014 Forrester Research, Inc. Reproduction Prohibited 17

18. Quiz
What percentage of enterprise data do firms
use for analytics?
A. 12%
B. 34%
C. 53%
D. 76%
Enterprise
Data
Source: Forrester Research
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19. 110010011011001
010010011011001
010011001101101
010010011011001
Historical
Transactions
Customer data
Ops

20. 20

21. Gather all your data to breakdown silos and
prepare it for deeper analysis.
Data

22. Process
Now, analyze the heck out of it - every which way.

23. Predictive analytics and streaming analytics have
momentum.
21%
21%
20%
18%
13%
10%
20%
16%
29%
24%
37%
33%
57%
54%
50%
49%
58%
56%
81%
15%
21%
32%
27%
19%
33%
42%
35%
50%
59%
77%
Reporting
Dashboard
Web Analytics
Performance analytics
Embedded Analytics
Olap
Process Analytics
Location Analytics
Search/Interactive Discovery
Predictive Analytics
Metadata Generated Analytics
Text Analytics
Advanced Visualization
Streaming Analytics
Non Modeled Data Exploration And…
2014
2012
“What is your firm's/business unit's current use of the following technologies?”
+52%
Base: : Forrsights BI/Big Data Survey, Q3 2012: 634 Business Intelligence users and planners
Reporting is
the only
‘widely’ used BI
technology
Base: : Forrsights BI/Big Data Survey, Q2 2014: 452 Tech decision makers
Advanced
analytics is
growing strongly
+30%
+62%

24. #Predictive

25. Trend
Predictive models can predict customer
attributes and behavior.

26. FORRESTER
Techniques, tools, and technologies that use
data to find models – models that can
anticipate outcomes with a significant
probability of accuracy.
DEFINITION

27. Predictive models can be very powerful
and profitable, but understand that:
› Predictive models are about probabilities, not
absolutes
› Predictive models may not exist for every
question
But, when they work they give you an
“unfair” advantage.
© 2014 Forrester Research, Inc. Reproduction Prohibited 27

28. Predictive models can have a delightful,
multiplicative effect on the bottom line
Direct Marketing – 1% response rate
Send marketing mail to 1,000,000
customers at cost of $2 per mailing to sell a
$220 service.
$2 x 1,000,000 $2,000,000
1% response rate means 10,000 customer
will buy service
$220 x 10,000 $2,200,000
Profit* $200,000
Predictive Direct Marketing – 3% response rate
Send marketing mail to 250,000 customers
predicted most likely to buy at cost of $2
per mailing to sell a $220 service
$2 x 250,000 $500,000
3% response rate means 7,500 customer
will buy service
$220 x 7,500 $1,650,000
Profit when using a predictive model* $1,150,000
Traditional
Predictive
* Profit calculation does not include other expenses

29. Predictive analytics is very different from the
traditional analytics approach
Traditional Analytics Data Science
• Choose a business outcome to
improve
• Discuss and decide what data will
be relevant
• Develop a data model
• Design reports and dashboards
• Choose business outcome to
improve
• Assemble all possible data
• Run algorithms to find relevant data
& predictive model
• Use the predictive model
© 2014 Forrester Research, Inc. Reproduction Prohibited 29

30. Big Data is the fuel of
predictive analytics;
statistical and machine
learning algorithms are
the engine.
© 2014 Forrester Research, Inc. Reproduction Prohibited 30

31. Recommend
How can you provide a perfect , individualized
product recommendation?

32. Turkey
How can you predict where customers will be
on Thanksgiving.

33. Repeat
Should you make an offer she can’t refuse or
send a gentle nudge?

34. Stop
What if you knew your customer was near your
store on a sunny day?

35. Activity
How can Spotify use accelerometer data
generated by customers while they listen?

36. Performance
How can you boost performance and retain
your employees?

37. #Streaming

38. Trend
Data in motion is as valuable as data at rest.

39. Apps are blind – use APIs to make them see.

40. If you can measure it, then you can use it
© 2014 Forrester Research, Inc. Reproduction Prohibited 40

41. Streaming analytics can uniquely enable
three new tiers of app functionality
Source: April 22, 2014, “Use Sensors To Take Apps To The Next Level Of Customer Engagement” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 41

42. #Apps

43. Adaptive apps anticipates a customer’s intent
and adapts to serve them.
Trend

44. Design principles for adaptive apps
› Learning who the customer really is
› Detect the customer’s intent in the moment
› Morph functionality and content to match intent
› Optimize for the device (or channel)
© 2014 Forrester Research, Inc. Reproduction Prohibited 44

45. © 2014 Forrester Research, Inc. Reproduction Prohibited 45

46. Trip
1
Easy. Buy a copper tube ice maker kit.

47. Trip
2
Buy a shut-off valve for the copper
tubing.

48. Trip
3
Buy a T-connector to tap the cold water
supply line.

49. Trip
4
Whoops. Also need to buy a hacksaw to
cut the copper pipe.

50. Trip
5
Finally. A special drill bit to make a hole
in the kitchen floor for the copper tubing.

51. Adaptive apps can make your customers
feel intensely loyal.

52. You must infuse your app architecture
with predictive components...
© 2014 Forrester Research, Inc. Reproduction Prohibited 52

53. …and expose them as APIs
Predictive Analytics
Data Scientist
Developer API API Team
AdAapptive
App
© 2014 Forrester Research, Inc. Reproduction Prohibited 53

54. #Opportunity?

55. Perfect opportunity! Your competitors are busy with
other priorities.
“What are your top three initiatives and priorities for your
online (digital) business in 2014?”
Source: “The State Of Retailing Online 2014” a Shop.org study conducted by Forrester Research
© 2014 Forrester Research, Inc. Reproduction Prohibited 55

56. Customers are ready.
© 2014 Forrester Research, Inc. Reproduction Prohibited 56

57. #Imagination

58. What kinds of apps could
you develop if could
predict and adapt to what
customers need in the
moment?

59. Thank you
Mike Gualtieri
mgualtieri@forrester.com