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Key Takeaways
Shift Focus To Business Technology To Support Digital Customer Experience
Companies are moving fast to refocus around the customer. Digital customer experience
has elevated to a corporate mandate at a time when business and marketing teams have
lost faith in technology managements ability to execute the business technology (BT)
agenda. IT leaders can stand up and create BT teams to support customer experience.
Seize The Opportunity To Improve The Speed Of Digital Marketing
Technology management professionals need to speed up their processes to ensure that
digital marketing and other business peers have the tools to quickly respond to shifting
digital customer experience requirements.
Unlock Customer Data To Enable Digital Customer Experience
Enhancements
Technology management professionals can boost their credibility and value to the
business by helping marketers tap into the gold mine of customer data currently locked
up in legacy systems.
Table Of Contents
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Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
Marketing is particularly aggressive, increasing its private technology spending two to three times
faster than IT overall. The new reality shows that many non-IT groups within the enterprise now
control some digital customer experience technology budget (see Figure 1).4
Figure 1 Many Non-IT Groups Control Budgets For Digital Experience Applications
What organization(s) within your firm own the budget for purchasing applications that
support digital customer experiences?
IT
51%
32%
26%
Dedicated eBusiness or
eCommerce group
23%
Marketing-technology shared
service group
18%
17%
Dedicated customer
experience group
9%
9%
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
have long owned key business software systems and tools, especially back office systems, such
as accounting, enterprise resource management, and human resources technology systems. The
shift to business technologies to win, serve, and retain customers, like web content management,
web analytics, and mobile tools, has pushed marketers and other line-of-business professionals
to source their own software (frequently from SaaS vendors) and services (such as digital
agencies), to bypass IT. This yields a collection of technology that does not have internal
management and a consistent support model and may not fit in the existing application stack or
skill set of the overall organization. Achieving functional relationships between IT and business
requires a willingness to rely on each others expertise and a more forward-thinking BT agenda
(see Figure 2).
Inconsistent digital experience technology delivery. After the business acquires a new
Failure to see BT as different from IT: Technology management professionals must broaden
their IT agendas beyond internal operations to include support for business technology that
supports the entire customer life cycle.8 Many companies have not yet made this shift nor have
they made the distinction between IT and BT.9 This shift requires a change in thinking, as well
as in organizational structures and teams. The CIO, enterprise architect, head of applications
and development, and other technology management professionals must manage two agendas
in the future: 1) internal operations that are now perpetually critical to the business, which we
can call IT, and 2) BT.
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
Figure 2 What IT Has Valued And What Forward-Thinking AD&D Should Value
What IT typically has valued
Security
Speed
Emphasis on transactions
Emphasis on content
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Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
To gain further insights into data, companies should team data professionals with visual designers.
The combination of skills will help companies deliver easy-to-understand customer insights
internally and compelling interfaces to their customers. We see this strategy form in many ways,
from high-touch retailers like Nordstrom, which is leveraging data about its customers to deliver
personalized customer experiences that show the retailers understanding of individual customers
and encourage long-term loyalty and purchases, to Uber, the upstart livery service that uses data
about its customers combined with real-time situational data to deliver a highly personalized
transportation services. The result is a fast-response car service for which Uber customers are
willing to pay a premium price over the cost of a typical taxi ride.
5. Improve The Speed Of Digital Marketing By Selectively Outsourcing
Many companies are utilizing a pressure-release value by partnering with digital experience-focused
agencies that help bring about change to the way companies think about technology delivery in
the age of the customer. Jason Mowery, director of strategy for digital agency Cynergy Systems,
says, CIOs talk to me and say: I need help. Were growing so fast. These are the kind of triggers
that show IT is ready and willing to get help so they can respond to the needs of the business [. . .]
if you have a culture of being nimble, youre more likely to make this transition. Companies are
also finding better ways to share technology responsibilities. According to a digital leader at a B2B
software company: IT wants to have purview on the infrastructure. There is a way to do that to
allow them to have insight and to sign the contract, and also to let the business manage and use the
technology. IT can still have oversight, and they can identify where there may be overlaps so we
avoid redundancy in technology.
R e c o m m e n d at i o n s
Get C-level leadership involved in driving vision and getting IT and business working
together. Example: One company we spoke with told us how a new CEO is driving customer
experience themes from the top down, and, by extension, this strategy is influencing digital
experience cooperation and success at all levels of the company.
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
Put the customer at the center to force internal cooperation: A strategic corporate
mandate to put the customer at the center of the business strategy is often the only way
to get technology management professionals and business to work together to execute a
customer-centric digital business strategy. When everyone agrees the customer is at the
center, things fall into place. Youre more likely to do the right thing, a technical architect
at a large banking organization told us. In the past, people looked at things from their own
perspectives. Now with everyone putting themselves in the shoes of the customer, were
getting the same answers. Thats a principle you can work by, but its not easy to do.
supplemental material
Forrester fielded its March 2013 Global Digital Experience Delivery Online Survey to 233 digital
experience professionals. This survey was fielded to end users who are involved in customer
experience management (CXM) technology decisions at their organizations. Forrester fielded the
survey in March 2013, and the sample consisted of organizations across verticals and included third
parties for relevant questions, as third parties become deeply entrenched partners for many digital
experience initiatives. Please note that there may be some sample bias. While the survey was fielded to
a global audience, the majority of respondents was North American and came from an uneven
distribution of industries and from companies of various sizes. This survey was not fielded to a
random sample. The majority of the respondents came from Forresters readership reports, which may
have biased this sample. This survey is not guaranteed to be representative of the population. Unless
otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.
Endnotes
Empowered customers are disrupting every industry. Competitive barriers like manufacturing strength,
distribution power, and information mastery cant save companies in this disruptive environment. In this
age of the customer, the only sustainable competitive advantage is knowledge of and engagement with
customers. For more insight, see the October 10, 2013, Competitive Strategy In The Age Of The Customer
report.
Its clear that the age of the customer changes your business model. Customers now have the upper hand
thanks to digital technology. They can easily turn to each other to gather the information they need to make
better choices. Using social, digital, and mobile technologies, they are learning new, more effective ways
of engaging with brands. Customers are no longer dependent on passively awaiting offers now they can
more aggressively and inexpensively dictate their needs, both individually and in the aggregate. For more
insight into this shift, see the October 21, 2013, Linking Customer Engagement To Business Capabilities In
The Age Of The Customer report.
Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
IT and business alignment isnt just happening down in the trenches. Its happening, rightly so, at the
leadership levels. CIOs and CMOs in many companies are working closely together to set a combined
agenda to drive technology and digital customer experience strategy forward. For more insight into how
companies like Dell, Alcon, and GE Oil & Gas are making the CIO-CMO relationship flourish for business
success, see the November 13, 2013, Quick Take: Three Ways That The Right CMO-CIO Partnership Can
Pack A Powerful Punch report.
Forrester has identified 14 specific digital technologies and capabilities associated with helping companies
manage on-site experiences. See the September 3, 2013, TechRadar For AD&D Pros: Digital Customer
Experience Technologies, Q3 2013 report.
Many companies and brands are aggressively adopting a new, expanded roster of digital customer
experience tools and technology to address the growing requirements of managing on-site experiences.
Vendors in traditional markets, like web content management and eCommerce solutions, are leading the
way by offering these solutions, by buying, building, or integrating these capabilities from third parties into
far-reaching platforms often adopted by digital marketers or other business professionals. Forrester refers to
these emerging solutions as digital customer experience platforms. For more insight, see the November 26,
2013, Market Overview: Digital Customer Experience Delivery Platforms report.
Todays consumers are hyperactive. The increase in device accessibility spanning smartphones, phablets,
tablets, and laptops and convenient access to cloud-based services fuel a greater number of overall
interactions across all devices. As a result, highly empowered, hyper-connected customers cross devices
and platforms at will, blur context in pursuit of a single goal, and multitask regularly. See the June 27, 2013,
Meet The Changing Needs Of Connected Customers report.
The business technology (BT) agenda focuses on providing superior customer experiences. It requires
new discipline and doesnt follow an easily automated process or formula. Less mature yet rapidly evolving
technologies for superior customer interactions, including social, mobile, customer analytics, and customer
experience management, drive BT ecosystems. BT will provide the next big technology payoff as companies
find innovative ways to intercept and engage empowered customers through digital interfaces, devices, and
services. For more insights into this major shift, see the October 10, 2013, Technology Management In The
Age Of The Customer report.
Most firms are not doing everything possible to profit from the explosion of customer data. They struggle
with the proliferation of data silos, an avalanche of big data, the demand for predictive analytics, and
expansion of mobile platforms to support real-time digital customer experiences. Fortunately, new
technologies, architectures, and practices are emerging to overcome these struggles and deliver a worldclass next-generation customer data management platform. For more insights, see the July 16, 2013,
Customer Engagement Cant Begin Without A Next-Gen Customer Data Management Platform report.
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With an overabundance of customer data available, companies need ways to aggregate it and create
actionable insights for marketing and business. Contextual delivery is the holy grail many companies want
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Five Ways IT And Business Can Cooperate To Win At Digital Experience Delivery
10
to attain. For more insight into using data for delivering contextual digital experiences, see the April 8, 2013,
Contextual Delivery And Cross-Channel Analytics Revolutionize Digital Experiences report.
Customer data is the lifeblood of your organization. It lives in and should enlighten every function of
the business, including R&D, operations, customer experience, marketing, sales, service, and finance. A
customer data management (CDM) strategy is critical. Forrester provides a four-step process for creating a
customer data management strategy in the following report, see the October 1, 2013, Nail Your Next-Gen
Customer Data Management Strategy report.
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