pegaworld 2014 presentation: becoming a digital enterprise
DESCRIPTION
As technology buzzwords like cloud, crowd-sourcing, big data or Internet of Things become realities and consumers digitize all aspects of their lives, organizations must stay ahead. That means developing aspects of a "Digital Enterprise". Thinking holistically about digital means better utilizing digital channels, digitizing the core processes of your company, enhancing your data capabilities and retooling your innovation 'engine'. Rapid digitization, focused on the 10-20 end-to-end processes that drive the majority of an organization's costs, can make a dramatic difference to the journey. Vik Sohoni, Partner at McKinsey & Company, will outline the steps needed to identify and digitize processes that can have an immediate impact on your customers and bottom line. Pegasystems Founder and CEO, Alan Trefler, will conclude the conference with insights into how Pega technology helps bring customer experience and process simplification together. This presentation was used as part of a keynote speech. You can watch the complete presentation (with full video) at: http://pega.com/resources/pw-2014-video-becoming-a-digital-enterprise?utm_source=ssTRANSCRIPT
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Different Industries Are In Different Places
Consumer
Traditional Media
Digital Media
Retail banking
Time
New trends emerge
Innovative startups
create disruptive
business models Early adopters
start embracing
the new models
Advanced incumbents
start adapting to the
new model
Mainstream
customers adopt
Laggard incumbents die
Advanced
incumbents &
established
“start-ups”
constitute the
new normal Tipping
point
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Sales Are Becoming Digital Across All Industries
Mobile telco Grocery retailing Newspaper Hotels Apparel retail Pay TV Retail banking Insurance (P&C) Consumer
electronics Airlines
Change over 5 years (% UK sales online) 2012
2017
3 5 5 9 12
24 29
35 39
47
24
10 6
19 24
43 44 46
58 63
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Consumers Expect More
1.00 Average is worth less
1.00
0.55
Business advocacy by consumers
for average performance, indexed
2011 2013
Business advocacy by consumers
for top performance, indexed
Best is worth more
1.00
1.52
2011 2013
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Changing Consumer Habits Are Creating More Complexity
Share of Internet users using
social media for customer service
Telecom
45
21
18 - 45 45+
Customers using branch and call center
by number of weekly web interactions
Banking
30 43
51 57 12
21
25
40
1 2 3 4
42
64
76
97
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Especially In An ‘Omni-Channel’ World Journeys Matter More Than Touch-Points
Of satisfied customers used 3
or more touch-points 77% Of all customer interactions
are part of a multi-channel
journey or sequence 56%
Drop in onboarding CSAT
while call center and field
CSAT remained high 50%
Higher correlation with CSAT
for journeys 35%
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CSAT
(from 1 to 10)
8.70
8.60
8.50
8.40
8.30
8.20
8.10
8.00
7.90
7.80
7.70
7.60
7.50
7.40
7.30
1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5
SD (standard deviation
Less customer trust ~30%
More impact 4-5x
Variability In Execution Will Grow Worse With Touch-Point Proliferation
Consistency
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Speed
Cost
Experience
Quality
2005 2009 2010 2014
Priorities Keep Changing
Speed
Cost
Quality
Experience
Quality
Speed
Cost
Experience
Speed
Cost
Experience
Quality
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Patent moat
Innovation culture
Online & Web 2.0
Mobile
Social
Real time MIS
Enterprise data
Big data
100% Imaging
& STP
Format Redesign
Appification
• Paperless
• Superior workflow
• IT enabled network
• Process apps enhancing
productivity and compliance
Organizations Need To Deliver On All Parts Of The Digital Enterprise
• Multi-channel
• APIs
• Unique functionality
• PR
Connectivity (Online, Mobile, Social)
• ‘Fresh off the line’ reporting to
CEO
• Compliance
• Single source of truth
• Customer journeys
• Rapid digitization
• Patent generation engine
• Innovation at scale
• Talent attraction
Innovation (Idea factory)
Decisioning (Big data, enterprise data)
Automation (Process enablement)
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How Do You Evolve A Company for the Digital Age In A Manner Consistent with the Destination?
IT Processes
Cool…and Relevant?
Constrained Budgets
Culture
Silos
Different Starting
Point
Business Involvement
Skills
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Ventu
re F
unds
Labs
Ha
cka
tho
ns
Bolt-on acquisitions
Participation in industry R&D
Partnerships with startups Radical Digitization
factory
Under-the-radar innovation
This Is Giving Rise to the ‘Two Speed Organization’
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1 Be
Unreasonably
Aspirational
2 Acquire
New Capabilities
3 Ring Fence &
Cultivate Talent
4 Challenge
Everything
5 Be Quick
& Data Driven
6 Follow the
Money
7 Be Obsessed
with the
Customer
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What Will You Be Doing “Tomorrow”?
Aspiration: Decide on what’s important 1 Capabilities: Hire for Skills 2 Talent: Cultivate with a strategy 3 Challenge: Clean sheet and transform 4
Quick & Data Driven: Explore new methodologies 5 Money: Tap core processes 6 Obsess: Create insight and align 7
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