PegaWorld 2014 Presentation: Process in the Age of the Customer

1,413 views

Published on

To become customer-obsessed, companies need to reinvent critical business processes to deliver engaging customer experiences. Unfortunately, existing process design and improvement techniques are still stuck in the back office and prioritize efficiency over engagement. So what new strategies and practices must BPM and CRM practitioners adopt to better identify with customer experiences and shift from logical problem solving to creative experimentation? Join this session and hear from Forrester Principal Analyst, Clay Richardson, on how leading business process professionals, business architects, customer service professionals and enterprise architects are reinventing business models and driving process design from an outside-in perspective.

These slides were used as part of a live presentation. Watch the complete presentation (with full video) at: http://www.pega.com/resources/pw-2014-video-process-in-the-age-of-the-customer‘?utm_source=ss’

Published in: Business, Technology

PegaWorld 2014 Presentation: Process in the Age of the Customer

  1. 1. Making Leaders Successful Every Day
  2. 2. Process In The Age Of The Customer Clay Richardson, Principal Analyst June 9, 2014
  3. 3. © 2014 Forrester Research, Inc. Reproduction Prohibited 3 Strong Winds Reshaping Business Process and Customer Engagement Landscape
  4. 4. © 2014 Forrester Research, Inc. Reproduction Prohibited 4 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
  5. 5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5 Source: February 2014 “Navigate The Future Of CRM In 2014”, Forrester Research report. New CRM Patterns Embrace Two-way Customer Dialogue
  6. 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 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?
  7. 7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7 Case example: Retail Banking Industry Average customer is 69 years old Future customer is much younger Image source: iStockphoto (http://www.istockphoto.com/)
  8. 8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8 Trend #1: New methods drive deeper customer engagement
  9. 9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9 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
  10. 10. 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
  11. 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 Design Thinking Practices Systems Thinking Practices • Holistic • Linkages • Logic • Deductive • Specific • Context • Empathy • Abductive
  12. 12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12 We all have empathy, right?
  13. 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Borrow from the design thinker’s toolbox TOMS Capability Maps Process Models BP Toolbox Journey Maps Personas Storytelling Design Toolbox
  14. 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 Case example: Medical device industry “How can we improve the process experience for onboarding new customers?”
  15. 15. © 2012 Forrester Research, Inc. Reproduction Prohibited 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
  16. 16. © 2012 Forrester Research, Inc. Reproduction Prohibited Trend #2: Build systems of engagement for contextualized interactions
  17. 17. © 2014 Forrester Research, Inc. Reproduction Prohibited 17 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
  18. 18. © 2014 Forrester Research, Inc. Reproduction Prohibited 18 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
  19. 19. © 2014 Forrester Research, Inc. Reproduction Prohibited 19 Future: Context, situation awareness & predictions Profile Persona History Situation Likely behavior
  20. 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 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 BestPracticeInteractive *See notes for explanation of weightings Reference Architecture for Engagement
  21. 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 Trend #3: Increased funding for revenue- based business cases
  22. 22. © 2014 Forrester Research, Inc. Reproduction Prohibited 22 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
  23. 23. © 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
  24. 24. © 2014 Forrester Research, Inc. Reproduction Prohibited 24 Shift Process and Customer Metrics Focus on Revenue Drivers Revenue GrowthCost Efficiency AdvocacyQuality EngagementProductivity ConvenienceEfficiency
  25. 25. 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
  26. 26. Thank you Clay Richardson crichardson@forrester.com +1 703 584 2630

×