pegaworld 2014 presentation: process in the age of the customer
TRANSCRIPT
Making Leaders Successful
Every Day
Process In The Age Of The
Customer
Clay Richardson, Principal Analyst
June 9, 2014
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Strong Winds Reshaping Business Process
and Customer Engagement Landscape
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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
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Source: February 2014 “Navigate The Future Of CRM In 2014”, Forrester Research report.
New CRM Patterns Embrace Two-way Customer Dialogue
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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?
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Case example: Retail Banking Industry
Average customer is 69
years old
Future customer is
much younger
Image source: iStockphoto (http://www.istockphoto.com/)
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Trend #1: New methods drive deeper
customer engagement
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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
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
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Design
Thinking
Practices
Systems
Thinking
Practices
• Holistic
• Linkages
• Logic
• Deductive
• Specific
• Context
• Empathy
• Abductive
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We all have empathy, right?
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Borrow from the design thinker’s toolbox
TOMS
Capability Maps
Process Models
BP Toolbox
Journey Maps
Personas
Storytelling
Design Toolbox
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Case example: Medical device industry
“How can we
improve the
process
experience for
onboarding
new
customers?”
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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
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Trend #2: Build systems of engagement
for contextualized interactions
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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
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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
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Future: Context, situation awareness & predictions Profile
Persona History
Situation
Likely behavior
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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
Best
Pra
ctice
Inte
ractive
*See notes for explanation of weightings
Reference Architecture for Engagement
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Trend #3: Increased funding for revenue-
based business cases
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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
© 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
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Shift Process and Customer Metrics Focus on Revenue Drivers
Revenue Growth Cost Efficiency
Advocacy Quality
Engagement Productivity
Convenience Efficiency
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
