Accenture Communications Research Pts Digital Lifestyle To Digital Lifeblood[1]


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Accenture Communications Research Pts Digital Lifestyle To Digital Lifeblood[1]

  1. 1. Communications & High TechFrom digital lifestyleto digital lifeblood:The increasing value oftechnology that worksKurt M. Hogan
  2. 2. As consumers become evermore reliant on technology asa means to live, work and play,they increasingly need thattechnology to work well, and towork when they need it to work.Until now, the complexity The growing market for professionally. Accenture research improving technology shows, for example, that Web-of this marketplace enabled mobile phone ownership interactions with yourneed has deterred many has more than tripled in two years, customers and mobile phones have replacedproviders from fully computers as consumers’ mostaddressing it—including The dimensions of this potential important technology. Also, as Figure market opportunity are growing 1 indicates, consumers are engagedthe providers who depend rapidly. Every day, the tech user in an increasingly wide range ofon technology for their community is becoming more technology-based activities.1 dependent on digital devices, not justown customer interactions. as the foundation of their lifestyles Meanwhile, with the seeminglySeveral considerations can as consumers, but increasingly, as daily improvement and proliferation a key element to maintaining theirhelp providers transcend businesses and the productivity of of new devices and new ways to interact with technology, the digitalthese challenges and their employees. As technology- ecosystem is rapidly evolving. Fortake advantage of the dependent businesses proliferate example, smartphones have broken around the globe, users’ personalopportunity. into the top five most frequently used needs (e.g., entertainment and technologies, as shown in Figure 2.2 home management) have become interwoven with their business Consumers realize this, which may needs (e.g., their communications, explain some recent Accenture market operational and emergency research data which brings into requirements). question a presumption at the heart of the traditional business model Usage of intelligent computing for service providers and electronics devices such as the personal companies: that companies must computer (PC) and smartphone subsidize in-home service—beginning has become part of the fabric of with configuration, set-up and our daily lives, both personally and1 The Increasing Value of Technology that Works
  3. 3. Figure 1: Which of the following activities do you do in a typical week? How much time do you spend?Figure 2: Most frequently used technologies The Increasing Value of Technology that Works 2
  4. 4. management—simply as a cost of Potential opportunity for Technology servicedoing business. Instead, Accenture’s an array of providersresearch suggests that consumers, at should be provided“the right time,” are willing to pay tohave “the right provider” remove some Given the wide array of different technologies and providers currently in a way that isof the technological complexity of thedigital home from their lives. interacting with customers today, convenient for there are many sectors from which new technology services could emerge. the end user.Even dating back to 2006, consumers Among those best positioned today arein an Accenture Digital Home Survey providers who have existing, trustedindicated their willingness to pay for • stablishing a basis for which E interactions and depend on thosepremium services including items to upsell and cross-sell; interactions as a way to communicatelike in-home installation and remote with customers. Topping the list of • mproving customer Imonitoring services. Since then, while providers who fit that description satisfaction; andthe market has yet to fully mature, are service providers and OEMsconsumer need has only expanded. • educing customer R (not counting retailers, who alreadyOne unavoidable inference is that turnover, or churn. aggressively position these types ofthe opportunity to provide these services at point of sale). Whether Reinforcing the risk of ignoring technology services hinges upon it be the broadband provider whose the role of technology services, anoffering services to customers on their users rely upon the PC as a gateway to Accenture 2009 customer satisfactionterms, on their schedule and in a way its service, or the OEM who provides study shows that approximatelythat is natural for the provider. warranty supports for a device in the two-thirds of consumers switched home, both have periodic, trusted one or more providers during the past touchpoints with the customer today, year. Globally, the study found that and both have motivations to improve customer service, not price, was the the customer’s experience, including: number-one reason for switching3 The Increasing Value of Technology that Works
  5. 5. providers.3 The state of the underlying technical configurations – each of of fact, developing and maintainingtechnology no doubt plays a role in the which is changing frequently. such a technology platform and acustomer perception of service quality; workforce of skilled technologistsand when the quality is not what Lack of clarity regarding is not the core competency of mostcustomers expect, they have shown enterprises. As a result, many havean inclination to vote with their feet. market positioning looked to outsourcing as an attractive option, but have struggled with In surveys, technology users have verifying that an outsourced solution isChallenges to improving and pointed first to two categories of a cohesive part of existing operationalmonetizing technology services company—electronics providers and touchpoints experienced by end communications services providers—as customers.There is no doubt that providing and places where they would initially lookmonetizing new technology services— for help with their technology a way that meets the expectations Yet while service providers are well Highly demandingof today’s growing market of intensive positioned from the standpoint of customer expectationstechnology users—is a complicated experience, it is not yet clear whereproposal. It involves dealing with consumers will ultimately turn. Likely, Enterprises’ concerns over the requiredcomplexities in several discrete they will instead gravitate to a supplier breadth of the technology servicesbut related areas: the marketplace who is perceived as most efficiently customers expect are justified. Usersenvironment, the breadth of services meeting their needs—a standard are increasingly demanding severalrequired, highly demanding customer that today appears to favor retailers. service dimensions including:expectations, and a lack of definition The lack of one clear and consistentfrom customers regarding who they preference in this space, however, • uality: The recognition on the Qexpect to provide the service. represents an opportunity for new part of the service provider that the services to be introduced to tech users consumer’s individual technologyA complex marketplace by other types of providers. ecosystem is highly personalenvironment to them, that it represents a One thing is clear: Tech users know considerable investment, and that they want to work with someoneTech users’ technology landscape is it contains highly personalized they trust; so quality and the abilitybecoming ever more complex, with content that is of importance. to work on the terms of the usera large number of options at their are critical factors that will drivedisposal. As consumer electronics • lexibility: The service provider’s F the ultimate leaders in this space.players emerge and innovate, leading ability to provide breadthproviders will continually compete of coverage embracing theby introducing technologies that The breadth of services required problems that customers arerange from fully open systems to fully most likely to encounter.proprietary systems and every flavor in There is also a growing recognitionbetween. Today, very popular vertically that the increasing complexity of • implicity: The ability to keep Sintegrated devices within a product technology ecosystems, coupled the user’s technology “up andfamily co-exist with standalone with consumers’ demands for broad- running” without great deals oftechnologies, with the user left to sort based problem-solving, will lead to personal effort by the end user.out how they work together. In the added costs for the provider, andabsence of collective standardization, could potentially lead to added In summary, tech users needconsumers are making individual dissatisfaction for the customer— industrialized support across adecisions regarding the technologies unless it is handled reliably. This highly diverse and rapidly changingthat deliver value for their needs. breadth of technology requirements technology base. To date, traditionalThis trend is resulting in highly poses challenges for any given support models, such as call center-differentiated, ever-evolving versions enterprise seeking to address this focused approaches or software-of a digital “home” or “ecosystem,” market. driven models, have been unable towith evolving permutations. We effectively meet the full breadth ofcan expect this trend to continue, In fact, due to the rapid rate at tech users’ increasing technologywith no single “silver bullet” support which new applications are being support needs to “rule them all.” developed and new devices deployed,Standalone support technology or it is very difficult for most enterprises Regardless of how a given enterprise agent training becomes dated as soon to maintain the comprehensive may choose to handle the provision ofas the next new device is deployed. In technology platform and network of premium technology services, here areshort, serving the needs of the “digital professionals that would be required to several considerations that apply:ecosystem” really means interacting support such a service capability in aeffectively with thousands of different cost-effective manner. In simple point The Increasing Value of Technology that Works 4
  6. 6. Key considerations for establishingpremium technology services• Addressing today’s digital • The service will benefit from case to case. Solutions in this ecosystem requires a systems approaching customers naturally. space must be of high quality and integration mindset. Enterprises Whatever an enterprise’s core cost-efficient relative to the tech entering this space should consider market segment may be, the investment they support. All these viewing this space as providing a premium technology services points argue for an industrialized set of changing technology services, offered need to be closely solution which can produce as distinct from their historical connected to their core value highly consistent outcomes cost- mindset of providing technical proposition and, where possible, effectively. support for a fixed asset. to extend from touchpoints they already possess. • Technology services should be• For higher value, technology capable of becoming a brand services should be specialized for • priority must be placed on A differentiator by creating an the customer base. A solution convenience. Technology service enhanced customer experience. needs to provide “the right services should be provided in a way that As Matt Healey of IDC points out, for your customers” by being highly is convenient for the end user, “Critical to the success of digital segment aware, with the ability to including the capability for cases to home services will be service align experience to the terms of the be worked on overnight, or stopped providers that not only provide customer. It should accommodate in-flight and picked up later. a remote support offering that the broad range of technologies in delivers customer satisfaction, but play with your customers, and be • The solution should be “industrial one that protects a brand’s image capable of handling the increasing strength.” To meet end users’ and increases sales.” Accenture complexity of applications and increasingly exacting requirements research confirms that customers hardware, while accounting for the of quality and consistency—and are willing to reward good service: rapidity with which they are being provide the support their lifestyles 71 percent are more likely to buy deployed. and businesses require—positive from the same company if they results need to be replicable from have experienced quality service,5 The Increasing Value of Technology that Works
  7. 7. while 58 percent are more likely to refer friends and family.4 In a highly through the technical complexities of the digital home. Part of the answer to Quality and the connected universe, end users helping consumers maneuver through ability to work on the this complexity lies in new ways to will refer good or bad service to a broad network of people beyond make devices and networking easier to terms of the user are themselves. use and manage. critical factors thatTo summarize, for today’s end users, Now more than ever, another critical will drive the ultimatetechnology is not a “nice to have,” part is in rethinking the business leaders in this space.but a “must have” – a crucial element model for providing premium technicalfor managing their lives and their services—rather than merely deliveringbusinesses. Just as people’s lifestyles tactical in-home support. Traditionallymay suffer if their cell phones don’t seen as a cost drain, premiumwork, their businesses may suffer if technology services can now be atheir PC systems and other systems means for driving high performance—don’t work. Such a climate demands helping generate revenue and reduceindustrial-strength service. churn by helping create satisfied customers.Accenture has consistently contendedthat if consumer electronicscompanies and service providers areto utilize digital-home trends as ameans of pursuing profitable growth,they need to rethink their businessmodels, organizations, processes andsystems for helping the consumer sort The Increasing Value of Technology that Works 6
  8. 8. 1 Accenture, “Finding Growth:Emergence of a New ConsumerTechnology Paradigm:The 2011 Accenture ConsumerElectronics Products andServices UsageReport,” Ibid.3 Accenture, “Start Making Sense:Defining Customer Experiencesthat Enable High Performance,”Accenture Global ConsumerSatisfaction Report, 2009. 4 Accenture, “Digital HomeConsumer Poll,” 2009.Copyright © 2011 Accenture About the author Accenture is a global managementAll rights reserved. Kurt Hogan is a Senior Executive who consulting, technology services and leads Premium Technology Services outsourcing company, with approximatelyAccenture, its logo, and within the Accenture Communications 211,000 people serving clients inHigh Performance Delivered and High Tech Practice. more than 120 countries. Combiningare trademarks of Accenture. unparalleled experience, comprehensive Contact us capabilities across all industries and Please visit business functions, and extensive research premium-technology-services on the world’s most successful companies, for more information or contact Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is