bmc exchange "digital disruption leads to digital services revolution"

Digital Disruption Leads to Digital Services RevolutionThe Implications for IT

Twitter: @eoehrlich

Eveline Oehrlich, Vice President, Research Director

November 19, 2013

BMC Exchange Midwest

DisruptionIsUpon Us

Evidence

› Disruption has a new source of funding -

individuals

› Ecosystems have shifted - Google and Microsoft

compete against Apple

› CEO of Amazon.com buys a newspaper

› Netflix wins Emmy using consumer data

› Wearables disrupt wearables

› Applications disrupt traditional business models

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A 20-year business cycle in which the most successful enterprises will

reinvent themselves to systematically understand and serve increasingly

powerful customers.

The Age of the Customer

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Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

The Age of the Customer

External forces impacting the enterprise (3-5 Years)

Source: "The Customer-activated Enterprise –Insights From The Global C-suite Study”, IBM Institute For Business Value, October 2013

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Technology touches every step of the journey

Journey Experience touchpoints

Discover

Get support

Buy

Use

EvaluateD

igital | P

hone | I

n-p

ers

on

Syste

ms o

f engagem

ent

Mid

dle

ware

Syste

ms o

f re

cord

Supporting technology stack

YOU

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Technology, systems, and processes to win, serve, and

retain customers.

Business Technology

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Facts

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Marketers are underwhelmed by TechnologyManagement’s performance

October 2013 “Technology Management In The Age Of The Customer”

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2020

Percentage oftotal technology

managementbudget

201820162014

IT costs decreasing due to:• Application modernization• Moving resources into cloud• Increased standardization

IT

BT budgets will grow quickly

Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

BT budgets increasing due to:• Mobility

• Maintenance of customer big data• Customer experience demands

BT

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Technology spending is shifting

October 2013 “Technology Management In The Age Of The Customer”

Key areas IT must focus on

Customerobsession

The mobile mind shift

Digital disruption

Age of the Customer

Big data

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Customer experience is driving shareholder value

October 2013 “Technology Management In The Age Of The Customer”

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READY?Ready?

From Order-taker

To Innovation

partner

Step1:

We need to

change

we work.

What

businessare we in?

Step 2: Change your team’s goals.

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Step 2: Change your team’s goals

› Focus on business outcomes.

• Make Business Unit managers successful.

• Make workforce happy.

• Make CIO successful.

Step 3: Engineer “moments of truth”

Touch points

Step 4: Use the pyramid of service to design your employee experience

ProductProduct PricePrice

ProcessProcess

PromotionPromotion

PhysicalPhysical

PlacePlace

PeoplePeople

…focus on customer experience

Stop pushing the ITIL Kool Aid…

Step 5: Communicate and deliver value

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IT leadership recommendations

To win in the “Age of the Customer”

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Deliver service & capabilities

› Streamline service request

management.

› Enable self-help and self-service.

› Continue (or start) knowledge sharing

and collaboration.

› Develop your service taxonomies and

with it your service catalogs.

DE

MO

S

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Enable your business teams

› WOW them.

› Focus on workforce productivity every

time.

› Measure and improve workforce

productivity.

› Insert new roles (marketing, service

owners, customer experience managers).

DE

MO

S

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Monitor & manage the right way

› Know your mission critical / business

critical services and applications.

› Monitor “EUE” from the outside in.

› Instrument across services (BSM).

› Report the right KPI’s; know what matters

for your LOB.

DE

MO

S

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Orchestrate & automate

› Think in terms of a supply chain manager.

› Automate as much as you can.

› Automate sensibly.

› Establish, manage and monitor SLA’s.

DE

MO

S

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Simplify & accelerate

› Reduce complexity by understanding.

› Adopt new business models (SaaS).

› Initiate bridging gaps (DevOps).

› Shift your people into new roles.

DE

MO

S

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Questions?

Thank youEveline Oehrlich

eoehrlich@forrester.com