rethink and realign for digital transformation success
TRANSCRIPT
Rethink and Realign for Digital
Transformation Success
facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient
#PerficientDigital
2#PerficientDigital
Perficient is a leading technology and
management consulting firm serving Global
2000 and enterprise clients throughout
North America.
We deliver digital experience, business optimization and
industry solutions that enable clients to improve
productivity and competitiveness; strengthen
relationships with customers, suppliers, and partners;
and reduce costs.
ABOUT PERFICIENT
3#PerficientDigital
PERFICIENT PROFILE
Founded in 1997
Public, NASDAQ: PRFT
2014 revenue $456.7 million
Major market locations:
Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chicago, Cincinnati, Columbus, Dallas,
Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New
York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto
Global delivery centers in China and India
>2,600 colleagues
Dedicated solution practices
~90% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards
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INDUSTRIES
Healthcare
Financial Services
Life Sciences
Retail & Consumer Goods
Automotive &
Transportation
High Tech
Telecom
Energy & Utilities
Manufacturing
Media & Entertainment
INTEGRATIONIntegration Frameworks
Cloud ArchitectureReference Architecture
Application IntegrationEnterprise Application IntegrationService Oriented Architecture
Process & Content IntegrationBusiness Process ManagementComplex Event ProcessingRules Engines
DATA & CONTENTBusiness Analytics
Business IntelligencePredictive AnalyticsReporting
Structured Data ManagementData Integration, Quality & GovernanceEnterprise Data WarehouseMaster Data ManagementProduct & Information Mgmt
Unstructured Data ManagementBig DataContent IntelligenceContent Management
Enterprise Search
CUSTOMER EXPERIENCECustomer 360
Multi Channel EnablementRelationship ManagementSocial Engagement
CommerceMarketing Strategy ImplementationOrder ManagementSupply Chain ManagementService & SupportManaged Hosting
Sales & Service SupportCustomer Service, Sales Force Automation
Experience DesignStrategic Roadmaps & Envision Workshops User Research & Metrics AnalysisCreative & Interaction DesignCustom & Responsive UI Development
Digital MarketingSearch Engine MarketingOnline AdvertisingContent StrategyConversion Optimization
Management Consulting
OUR SOLUTIONS PORTFOLIOPORTALPortal Frameworks
SearchSecurityWeb AnalyticsWeb Content Management
Social & CollaborationMobilityExperience Design
BUSINESS OPERATIONSCorporate Performance Management
Budgeting, Forecasting & PlanningBusiness Analysis & Predictive Analytics
Enterprise Business SolutionsOracle EBSVertex Tax Solutions
Human Resource SolutionsEmployee Portals Human Resource ManagementTalent Management
Enterprise Social PlatformsSocial StrategyLync Unified CommunicationsOffice 365
Management Consulting
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PRESENTERS
Nigel FenwickVice President, Principal Analyst
Forrester Research
Blog: http://bit.ly/nigelblog
@NigelFenwick
Michael PorterManaging Principal
Perficient
@porterondigital
David StallsmithDirector, Customer Experience &
Digital Transformation
Perficient
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DISCUSSION ITEMS
Source: Wikimedia Commons, Erik Strandberg
• Crafting a vision that works for your company
• Understanding where you are on your journey
• Making the business case for digital transformation
• Using digital transformation strategy and vision to drive
tactical initiatives
• Uncovering and managing technology gaps
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Crafting a vision that works for your company
New digital experiences drive changes in
expectations
9© 2014 Forrester Research, Inc. Reproduction Prohibited
Inside-out
Cap
ab
ilit
ies
Processes
Technologies
Resources
Serv
ice
Replace your inside-out viewpoint . . .
10© 2014 Forrester Research, Inc. Reproduction Prohibited
Inside-out Outside-in
Cap
ab
ilit
ies
Processes
Technologies
Resources
Journeys
Contexts
Touchpoints
Pers
on
as
Serv
ice
Cu
sto
mer
ob
jectives
. . . with an outside-in, customer value perspective
© 2015 Forrester Research, Inc. Reproduction Prohibited 11
Companies must rethink how they create value for customers
Old New
© 2015 Forrester Research, Inc. Reproduction Prohibited 12
Digital services form dynamic ecosystems of value that represent the real world
Source: Forrester: March 2015 – “How To Craft A Better Digital Vision”
© 2015 Forrester Research, Inc. Reproduction Prohibited 13
People create their dynamic ecosystem of value to satisfy their desires
Source: Forrester: March 2015 – “How To Craft A Better Digital Vision”
© 2015 Forrester Research, Inc. Reproduction Prohibited 14
Sephora acquired digital innovator
Scentsa
Create value through experiences & outcomes
Julie Bornstein, CMO
Sephora
“Everyone wants to do something
digital, but we think we really
figured out how to use digital to
create value for the consumer.”
Source: Forrester: March 2015 – “How To Craft A Better Digital Vision”
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
Your digital vision must …
›Focus on customer: How will we create
value for customers in the future?
› Inspire employees: How must our
business change?
›Paint a picture of future success: What
will our business look like in the future?
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Understanding where you
are on your Journey
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Source: Forrester: March 2015 “Digital Predator Or Prey”
Assess your starting point
© 2015 Forrester Research, Inc. Reproduction Prohibited
Digital PreyDigital
Operators
Digital
Predator
Digital
Connectors
© 2015 Forrester Research, Inc. Reproduction Prohibited 18
Business Technology
(BT):
The systems,
technologies, and
processes to win,
serve, and retain
customers.
Source: Forrester: March 2014 “Unleash your Digital Business”
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
Four dimensions of digital maturity
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TRANSFORMATION STRATEGY PROCESS
Context &
Capability
Insights
Vision &
Goals
Strategy &
Experience
Modeling
Road Map &
Execution
Planning
1 2 3 4
• Gather insights
• Size up capabilities
• Analyze gaps and
opportunities
• Frame challenges
and objectives
• Develop digital
vision and high
level goals
• Identify key
initiatives
• Define technical
and operational
requirements
• Develop business
case for investment
• Prioritize initiatives
based on effort and
impact
Execution & Optimization
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CREATEcustomer experiences
customerinsight
strategy
design process
A
CXIQ MATURITY ASSESSMENT
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operations
enabling technologies
A
CXIQ MATURITY ASSESSMENT
DELIVERcustomer experiences
measurement
customerinsight
strategy
design process
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operations
enabling technologies
A
CXIQ MATURITY ASSESSMENT
CREATE, DELIVER & SUSTAINcustomer experiences
measurement
customerinsight
strategy
design process
culture
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• Dives deep into an organization’s digital operations
• Assesses all gaps or barriers to business agility
• Focuses on a wide range of technologies:- Cloud
- Integration
- BPM
- CRM
- WCM/Digital Experience
- Marketing Automation
- Big Data
- Predictive Analytics
- Web Analytics
- Mobile
• Uses a protocol defined by many Perficient experts
DEEPER TECHNICAL ASSESSMENT
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Making the business case for digital transformation
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
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Digital
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Digital
Bolt-on is not
a winning strategy.
© 2015 Forrester Research, Inc. Reproduction Prohibited 30
A customer value
oriented strategy
pays dividends
© 2015 Forrester Research, Inc. Reproduction Prohibited 31
Metrics of success
› Rate of new customer acquisition
› Average lifetime value of customers
› Customer attrition rate
› Customer experience index score
› Brand sentiment analysis / brand value
› Net change in sales (not just digital channels)
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CX ADAPTERS REAP BENEFITS
Source: Gartner Research, “Leading on the Edge of Chaos”, 2013, Emmet Murphy and Mark Murphy)
60Companies that prioritize
customer experience
generate 60% higher profits
than competitors
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CX ADAPTERS REAP BENEFITS
Increase in
Company
Value
=Increase in
Customer
Retention
10
Source: Bain & Company Study
% 30%
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Using digital transformation strategy and vision to drive tactical initiatives
35© 2014 Forrester Research, Inc. Reproduction Prohibited
© 2015 Forrester Research, Inc. Reproduction Prohibited 36
Source: June 2014 “Emerging Business Technology Priorities”
Seek the customer experience zone of disruption
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
Digitize end to end customer experiences
Source: Direct Energy
© 2015 Forrester Research, Inc. Reproduction Prohibited 38
Source: http://support.nest.com/article/What-is-Rush-Hour-Rewards
Digitize inside your customer’s ecosystem of value
Source: Forrester: March 2015 – “How To Craft A Better Digital Vision”
Scale experience through trusted machines
© 2015 Forrester Research, Inc. Reproduction Prohibited 40
Digitize for agility over efficiency
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Experience
Strategy &
Design
Implementation
Road Maps
& Platform
Selection
Industry
Expertise
Operational
Alignment
CROSS-DISCIPLINARY APPROACH
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1 Strategy
2 Execution
3 Optimization
BIG PICTURE
Operations
Customer
Experiences
• Assessments
• Customer Journeys
• Vision & Goals
• Change Program Planning
• Road Maps
• Business
Requirements
• User Interface
Design
• Prototyping
• Front End
Development
• Concept
Development
• Cloud
• Big Data
• Cultural
Change
• Integration
& APIs
• Commerce
• Campaign
Managemen
t
• CRM
• Mobile
• Support Net
• Digital Marketing
Operations
• Cloud Hosting
• Web
Analytics • Site Hosting &
Support
• Usability
Testing
• Information
Architecture
• User
Research
• Web
Analytic
s
• Strategy Development
• A/B Testing
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Uncovering and managing technology gaps
© 2015 Forrester Research, Inc. Reproduction Prohibited 44
Uncover gaps that create sub-standard experiences and outcomes
Journey Experience
touch points
Discover
Get Support
Buy
Use
Evaluate
Dig
ita
l / P
ho
ne
/ I
n p
ers
on
Syste
ms o
f e
ng
ag
em
ent
Mid
dle
wa
re
Syste
ms o
f re
co
rd
Supporting Technology Stack
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Self-service
Problem Resolution
Product Discovery
Purchase
JOURNEY MAPPING DRIVES INSIGHT
ORGANIZATIONAL SILOS
TYPES OF JOURNEYS In-storeOnlineProduct SupportMarketing
Source: McKinsey & Co, 2013
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• Visual representation of user journeys
across brand touch points
• Enabled a large intercity bus company to
better understand how their customers
engage with the company, brand,
partners and staff
• Identifies opportunities for improvement
EXPERIENCE MAPPING
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Self-service
Problem Resolution
Product Discovery
Purchase
JOURNEY MAPPING = INSIGHT
ORGANIZATIONAL SILOS
TYPES OF JOURNEYS In-storeOnlineProduct SupportMarketing
Source: McKinsey & Co, 2013
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QUESTIONS?
Please submit your questions in
the chat box
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Enabling a Personalized Consumer Experience with Data
Thursday, August 20 | 1:00 PM CT
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DIGITAL
TRANSFORMATIONPART ONE: LAYING THE
GROUNDWORK FOR SUCCESS