tft14: the end of it's monopoly on trust: vital lessons from the consumer space
DESCRIPTION
Jon Hall's presentation at Tomorrow's Future Today Winter 2014 (TFT14), 18th February 2014, 7am GMT. “A new wave of consumer services, like Uber, TripAdvisor and Yelp, is attacking long-established (and often self-appointed) sources of trust and authority. In this presentation, Jon Hall argues that the same thing is already happening to business IT. What lessons must we learn, and what actions must we take?”TRANSCRIPT
@jonhall_
THE END OF I.T.’S MONOPOLY ON TRUSTVital lessons from the consumer space
Jon HallTomorrow’s Future Today: Winter 2014
#TFT14
@jonhall_
1) How Uber, TripAdvisor, Yelp (and their peers) are changing industries
2) How IT is already being impacted.
3) What lessons can we learn... and how can we benefit?
@jonhall_
Jon Hall
17th year in ITSM(but first TFT appearance!)
Product Manager focused on forward evolution of ITSM
Reading, UK
BMC Software since 2008
Twitter: “@jonhall_”
@jonhall_
Uber: Attacking a centuries-old trust system
@jonhall_
EndGadget, May 2nd 2013
The Star, Toronto, Canada, December 5th 2012
The Atlantic Cities, February 6th 2014
The regulatory backlash to Uber
@jonhall_
New York City Taxi and Limousine Commission
Taxi Regulation Act (2013), Republic of Ireland
“…regulation of the conduct, behavior,
deportment and dress for drivers…”
“Set and enforce standards and
conditions of service”
Ordinance for the Regulation of Hackney Coachmen in London (1654)
A 350 year old minimum standard.
Taxi regulation: Established 1654!
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uber.com
Uber’s alternative: Feedback
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Transparency
Integrated experience
Customer-selected deliverer
Accountable through reputation
Opacity
Fragmented experience
Allocated deliverer
Accountable to regulator
Taxi image credit: http://www.flickr.com/photos/ursonate
Old and new
@jonhall_
TripAdvisor: Usurping the travel guidebook
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“With annual sales of more than six million guidebooks - about a quarter of all the English-language guidebooks sold - it is the world’s largest publisher of travel guides”
New Yorker Magazine, April 2005
Lonely planet image credit: http://www.flickr.com/photos/spcummings
Lonely Planet: A travel industry giant...
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BBC buysLonely Planet
£130m BBC sells:£51m
2007 2013
19th March 2013
61% loss
...sold after seven years at a big loss
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Source: Nielsen Bookscan for the Travel Guide Market
The decline of the traditional travel guidebook
@jonhall_
Source: “The New Social Travel Lifestyle “ - TripAdvisor
“Total traffic in the fourth quarter grew 50% year-over-year.
TripAdvisor websites attracted more than 2 billion unique visitors during 2013”
Tripadvisor Q4 Report,11th February 2014
“World’s Most Trusted Travel Advice”
@jonhall_Lonely Planet image credit: http://www.flickr.com/photos/spcummings/
Real-time information
Comprehensive coverage
Crowd-sourced opinions
Contextual delivery
Point-in-time information
Limited coverage
Expert opinion
Passive delivery
Old and new
@jonhall_
The Yelp.com effect
@jonhall_
A one-star increase in Yelp rating leads to a 5%-9% increase in revenue for independent restaurants.
The same effect is not felt by branded chains.
Reviews, Reputation, and Revenue. Harvard Business School 2011.
Restaurant sign image: http://www.flickr.com/photos/neutronboy/
“Historically, chain affiliation is valuable because it reduces uncertainty about restaurant quality.Consumer reviews serve a similar purpose”
Good ratings boost independents, but not brands
@jonhall_
Unstoppable trend? The story of CourseTable
“I’d like to know which of my social contacts plan to attend each course”
“I want to know how highly people have rated each class”
“I’m interested in seeing my best friends’ course selections”
“There was no centralized database at Yale that allowed students to perform course comparisons at-a-glance.
Washington Post, January 16th 2014
Two students programmed an interface that would compile everything in one place”
CourseTable: Informed study course selection
“…malicious activity…”
This is the wrong way to respond!
Jan 22nd 2014
“Technology has moved faster than the faculty could foresee...
Questions of who owns data are evolving before our very eyes”
Mary Miller, Dean of Students, Yale.
January 2014
Retraction and apology
“We have the best IT and computer people at Stanford, ready to help.”
- “College Sophomore”, Jan 2014
Students don’t just rate their courses!
“The IT department will make you cry...”
USA University. 33,000 students.
Bad IT impacts a school’s public image
@jonhall_
The same thing is already happening to IT.
@jonhall_
(Financial, 5000+ employees)
(Aeropspace manufacturer, 1000-5000 employees)
(Investment bank, 1000-5000 employees)
“Lacking IT structure...”
“Too much time is wasted on the phone to IT...”
“Terrible IT support and resources”
Are you being rated already?
@jonhall_
“The vast majority (of business users), about 85%, brought Evernote into the workplace themselves”
Evernote CEO Phil Libin, launching Evernote Business
In APJ, 83% of employees bring their own devices to work (41% citing contactability by clients)VMWare “New Way Of Life” Survey, Asia Pacific and
Japan, 2013
IT causes 84% of business users to experience a “severe or moderate impact” on their ability to be productive on a monthly basis Forrester: Exploring Business And IT Friction (April 2013)
Cellphone image credit: http://www.flickr.com/photos/sergesegal/Broken cable image credit: http://www.flickr.com/photos/jeffanddayna/
The growth of consumer-driven I.T.
@jonhall_
Key lesson: Embrace consumer trends
@jonhall_
“When I first started driving for Uber, my rating was lower than it is now.Uber sent emails suggesting what I can do to improve, and they stuck with me.Now my overall rating is 4.85. I strive to keep my rating high and provide the best service”Uber driver on yelp.com
Feedback improves individual and overall service
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“A lot of people were saying our off-brand Cheerios tasted like cardboard, so we changed to Fruit Loops. We got a great response to that.”
TJ Jones, Anaheim Hotel owner(From 80th ranked hotel in city to 23rd, after acting on feedback)
Feedback drives sustainable success
@jonhall_
Learn from the best examples
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Feedback-enabled services
Contextual support
Personal enablement
@jonhall_
Constant, open feedback
Integrated customer/provider platforms
Broker of services
Contextual and personal offerings
Enablement and governance
Quarterly satisfaction survey
Point ITSM tools
Single source of services
Standard offerings
End-to-end control
OLD NEW
Monopolized trust Earned trust
The way forward for I.T.?
@jonhall_
Thank you!
Twitter: @JonHall_