To become customer-obsessed, companies need to reinvent critical business processes to deliver engaging customer experiences. Unfortunately, existing process design and improvement techniques are still stuck in the back office and prioritize efficiency over engagement. So what new strategies and practices must BPM and CRM practitioners adopt to better identify with customer experiences and shift from logical problem solving to creative experimentation? Join this session and hear from Forrester Principal Analyst, Clay Richardson, on how leading business process professionals, business architects, customer service professionals and enterprise architects are reinventing business models and driving process design from an outside-in perspective. These slides were used as part of a live presentation. Watch the complete presentation (with full video) at: http://www.pega.com/resources/pw-2014-video-process-in-the-age-of-the-customer‘?utm_source=ss’

1. Making Leaders Successful
Every Day

2. Process In The Age Of The
Customer
Clay Richardson, Principal Analyst
June 9, 2014

3. © 2014 Forrester Research, Inc. Reproduction Prohibited 3
Strong Winds Reshaping Business Process
and Customer Engagement Landscape

4. © 2014 Forrester Research, Inc. Reproduction Prohibited 4
Source: Adapted from October 2013, “Competitive Advantage In The Age Of The Customer”, Forrester report
Age of the Customer Reshapes Demand
and Focus of Process Efforts
Assembly lines Supply chains Automation Engagement
Business process evolution

5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5
Source: February 2014 “Navigate The Future Of CRM In 2014”, Forrester Research report.
New CRM Patterns Embrace Two-way
Customer Dialogue

6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6
Source: Q3 2013, Global State of Enterprise Architecture Online Survey, Base: 90 EA Professionals
Investments Shifting to Connect BPM
and CRM for Customer Engagement
Over the next 12 months, do you expect to see an increase or
decrease in demand for the following BPM related activities?

7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7
Case example: Retail Banking Industry
Average customer is 69
years old
Future customer is
much younger
Image source: iStockphoto (http://www.istockphoto.com/)

8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8
Trend #1: New methods drive deeper
customer engagement

9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9
What is Design Thinking?
›“Design thinking is a collection
of practices that helps teams
better identify with customer
experiences, and shift from
logical problem solving to
creative experimentation.”
Source: June 2013, “Design For Disruption: Take An Outside-In Approach To BPM”, Forrester report

10. Which of these techniques are used consciously/deliberately within your
change program (or have some impact upon it)? (select all that apply)
15%
36%
16%
26%
43%
Persona design
Customer journey maps
Service blueprinting
Design Thinking
None of the above
Base: 171 Business process professionals
Source: Q3 2013 Global Forrester/IQPC Business Process Maturity Survey
Process change teams adopt design
thinking techniques

11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11
Design
Thinking
Practices
Systems
Thinking
Practices
• Holistic
• Linkages
• Logic
• Deductive
• Specific
• Context
• Empathy
• Abductive

12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12
We all have empathy, right?

13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13
Borrow from the design thinker’s
toolbox
TOMS
Capability Maps
Process Models
BP Toolbox
Journey Maps
Personas
Storytelling
Design Toolbox

14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14
Case example: Medical device industry
“How can we
improve the
process
experience for
onboarding
new
customers?”

15. © 2012 Forrester Research, Inc. Reproduction Prohibited
Initiate
Contact
Evaluate
Options
Install
Service
Sales
Process
Delivery
Process
Servicing
Process
Order
Service
Customer
Journey
“Worried”
“Over-
whelmed”
“Relieved”
“Anxious”
Process redesign
opportunity #1
“Frustrated”
Process redesign
opportunity #2
Billing

16. © 2012 Forrester Research, Inc. Reproduction Prohibited
Trend #2: Build systems of engagement
for contextualized interactions

17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17
Level of User Engagement
Highly
Interactive
Best
Practice
• Collaborative processes
• Highly customized
• Knowledge intensive
• High value tasks
• Adaptive environment
• Consistent processes
• Non-differentiating
• Transaction oriented
• Regulatory mandates
• Rarely changes

18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18
Increased Demand for BPM Solutions
that Support Customer-facing Processes
Transactional BPM
• High transaction volumes
• Structured processes
• Slow to change
Engagement BPM
• Adaptive user experience
• Unstructured processes
• Mobile social work patterns
• Intelligent guided processes

19. © 2014 Forrester Research, Inc. Reproduction Prohibited 19
Future: Context, situation awareness &
predictions Profile
Persona
History
Situation
Likely behavior

20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20
System Of
Engagement
System
Of Record
Consistent processes and data
Non-differentiating, non-competitive
Transaction oriented
Regulatory requirements and mandates
Rarely changes
Collaborative processes and tasks
Highly customized user interface
Knowledge intensive
High cost, high value tasks (complex)
Adaptive environment
BestPracticeInteractive
*See notes for explanation of weightings
Reference Architecture for Engagement

21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21
Trend #3: Increased funding for revenue-
based business cases

22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22
Refocus Business Cases from Cost to
Revenue
› Grow revenue.
› Protect revenue
(avoid downside).
› Avoid future costs.
› Reduce current costs.
Historically the base for most
BPM-generated business
cases

23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23
Image source: Bloomberg Businessweek (http://images.businessweek.com/)
Refocus Business Cases from Cost to
Revenue
› Grow revenue.
› Protect revenue
(avoid downside).
› Avoid future costs.
› Reduce current costs

24. © 2014 Forrester Research, Inc. Reproduction Prohibited 24
Shift Process and Customer Metrics
Focus on Revenue Drivers
Revenue GrowthCost Efficiency
AdvocacyQuality
EngagementProductivity
ConvenienceEfficiency

25. Revenue-based Process Metrics Focus
on Customer Engagement
Convenience
• Time to complete
• Channels
engaged
• Number of
attempts
Engagement
• Abandoned carts
• System
workarounds
• Shadow processes
Advocacy
• Net promoter
scores
• Visitor frequency
• Social sentiment

26. Thank you
Clay Richardson
crichardson@forrester.com
+1 703 584 2630