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Overcoming 5 Barriers to Digital Transformation

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The drive towards digital transformation begins with the customer and extends far into the company, impacting every area of the organization from vision and strategy to architecture, technology, operations, and culture. While not insurmountable, these changes can be challenging.

Guest speaker Nigel Fenwick, an analyst with Forrester, and Michael Porter, Perficient’s principal strategic advisor, discussed the top 5 barriers to a successful digital transformation, and how some real-world companies have overcome them.

We covered five barriers to digital mastery and how to:

-Overcome functional silos and resource scarcity
-Deal with segregated customer data
-Address technical budgets that are in a downward spiral
-Move from a product-centered to a customer-centered approach to business
-Break down the IT and business barrier

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Overcoming 5 Barriers to Digital Transformation

  1. 1. Overcoming 5 Barriers to Digital Transformation Success facebook.com/perficient twitter.com/PRFT_Transformlinkedin.com/company/perficient #PerficientDigital
  2. 2. 2#PerficientDigital ABOUT PERFICIENT Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America With unparalleled information technology, management consulting, and creative capabilities, Perficient delivers vision, execution, and value with outstanding digital experience, business optimization, and industry solutions.
  3. 3. 3#PerficientDigital PERFICIENT PROFILE Founded in 1997 Public, NASDAQ: PRFT 2015 revenue ~$473.0M Major market locations: Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, 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 >2,800 colleagues Dedicated solution practices ~90% repeat business rate Alliance partnerships with major technology vendors Multiple vendor/industry technology and growth awards
  4. 4. 4#PerficientDigital PRESENTERS Nigel Fenwick Vice President, Principal Analyst Forrester Research Blog: http://bit.ly/nigelblog @NigelFenwick Michael Porter Managing Principal Perficient Michael.Porter@perficient.com @porterondigital
  5. 5. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 5 Five Barriers To Digital Mastery One: Functional Silos Compete for Scarce Resources › Business units scramble for budget & time in a zero-sum game • Starving customer-value-driven initiatives › Different metrics drive competing behaviors • CIOs measured on cost and efficiency vs CMOs measured on customer acquisition & retention
  6. 6. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 6 One: Functional Silos Compete for Scarce Resources › Use journey mapping to set priorities • Focus on customer value creation • Assign staff to cross-functional CX teams • Use customer outcome metrics for all employees Five Barriers To Digital Mastery
  7. 7. 7#PerficientDigital JOURNEY MAPS BREAK DOWN BARRIERS Booking experience drives mobile for customers and drivers Ticket scan drives integration
  8. 8. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 8 Five Barriers To Digital Mastery *Source: Forrester's Global Business Technographics® Data And Analytics Survey, 2015 Two: Customer Data is Segregated Across Silos › Same customer data collected in each business unit in different ways • Customer view is one company vs company view of multiple customers • 49% of companies yet to implement a strategy to get to a single view*
  9. 9. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 9 Five Barriers To Digital Mastery Two: Customer Data is Segregated Across Silos › Shift perspective from inside-out to outside-in • Make customer data a strategic asset • Create a complete view of the customer that’s easy to digest › Map desires to create value › Record & update preferences › Understand how to create value for people
  10. 10. 10#PerficientDigital CUSTOMER DATA AT A WELL-KNOWN HOSPITAL The hospital has data in a variety of locations. Marketing is driving via its roadmap a way to cut down the silo with one version of the truth. EMR Campaign Management Post- Discharge System
  11. 11. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 11 Five Barriers To Digital Mastery *Source: Forrester/Odgers Berndtson Q3 2015 Global Digital Business Online Survey. Three: Tech Management Budgets Are in a Downward Spiral › Budget pressures have left Tech Mgmt teams stretched thin • Lack of digital skills • Architecture designed for cost efficiency over agility & flexibility • 60% of executives believe technology architecture is a critical gap*
  12. 12. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 12 Five Barriers To Digital Mastery *See the "US Tech Market Outlook For 2015 And 2016: The BT Agenda Powers Steady Expansion" Three: Tech Management Budgets Are in a Downward Spiral › Prioritize Business Technology (BT) • US firms will increase BT spending by 9.6% in 2016* • Prioritize IT investments to build agility and capacity to change over cost reduction • Focus BT investments on continuous evolving improvements of CX • Evangelize tech as catalyst for growth
  13. 13. 13#PerficientDigital DISTRIBUTION COMPANY EXAMPLE Our Client New Entrant Old Competitor Source: Forrester Research, 2015 Leveraged investment from other business Invested in mobile and integration
  14. 14. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 14 Five Barriers To Digital Mastery Four: Product-oriented Business Units Push Products, Not Outcomes › Product BUs focus on market segments to create product groups based on perceived market opportunities: inside-out. • Today’s customer increasingly seeks outcomes vs ownership • Desired outcomes evolve • Customers expect highly personalized services
  15. 15. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 15 Five Barriers To Digital Mastery Four: Product-oriented Business Units Push Products, Not Outcomes › Customer groups focus on the desires of specific types of customer. • Use journey maps to see how customers satisfy desires • Create the experiences that deliver outcomes that satisfy desires • Create an experience ecosystem to sustain continuous evolution
  16. 16. 16#PerficientDigital MUST THINK FROM THE OUTSIDE-IN Transformation is a process that requires a holistic approach within your culture, processes, and technology…based on your customer. Use customer insight to evolve digital assets and capabilities Encourage customer empathy among teams TOUCH POINTS JOURNEYS BRAND PERCEPTIONS TEAMS PROCESSES SYSTEMS Experiences Insights
  17. 17. 17#PerficientDigital ONE CUSTOMER’S JOURNEY Customer interviews Perficient cross-functional disciplines 34 Stakeholder work sessions 9 12 46 Road map initiatives 1 8 20+ Secondary research sources + + Retail store visitsCXIQ Maturity Assessment ++ +
  18. 18. 18#PerficientDigital NOTICE THE CUSTOMER ORIENTATION Modernize the digital marketing platform  Reduced time to market  Reduced operational costs  Increased lead-to-sales Tell the quality story convincingly and consistently in all channels  Improved perception and advocacy Integrate in-store and online experiences  Reduced pre-sales duration  Reduced sales funnel drop-out Increase brand effectiveness with underrepresented segments  Increased revenue  Increased market share Improve assets used to support purchase decisions  Higher conversion rates  Increased average order size Drive organic growth through content optimization  Increased traffic  Increased engagement  Increased revenue
  19. 19. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 19 Five Barriers To Digital Mastery Five: The Business Sees “IT” as a Barrier to Achieving Goals › Sophisticated governance developed to avoid failure • Lacks agility › Endless stream of customization requests from Bus • Creates technology quagmire › BUs work around “IT” • Bolt-on digital fails to integrate • Problems scaling & maintaining critical customer-facing apps • Inability to fully leverage technology
  20. 20. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 20 Five Barriers To Digital Mastery Five: The Business Sees “IT” as a Barrier to Achieving Goals › Business partners vs. service provider • Tech Mgmt is the business • Measure on business outcomes & customer metrics • BU leaders agree to simplify generic capabilities • Create agile, flexible, scalable tech portfolio – focus on BT "When there are problems, they are business problems; when there are successes, they are business successes" — and tech management is part of "the business.” Discover Financial CIO
  21. 21. @NigelFenwick © 2016 Forrester Research, Inc. Reproduction Prohibited 21 Five Barriers To Digital Mastery What it Means › CIOs need to work with BU leaders to: • Gain clear understanding of customer • Achieve a common digital vision and business strategy • Measure everything and everyone in terms of customer impact • Make customer data strategic – single view • Prioritize Business Technology (BT) • Create high-value experiences to deliver outcomes • Reshape the culture of tech management to be business enablers and deliver customer outcomes
  22. 22. 22#PerficientDigital WHAT OUR CLIENTS ARE DOING Texas Hospital Combined CIO and CMO roles Global Consumer Products Co. Created a digital transformation team Tool Company Named chief digital officer with a focused team. Brought in the business for planning sessions Cedars-Sinai Got in front of cloud to approve key SaaS and PaaS/IaaS vendors Utility Company Created a combined business and IT team to improve their digital experience AAA Colorado Marketing and IT co-funded and supported their digital transformation strategy
  23. 23. 23#PerficientDigital QUESTIONS? Please submit them in the chat box
  24. 24. 24#PerficientDigital DOWNLOAD THE GUIDE SERIES TODAY www.perficient.com/digital-transformation
  25. 25. 25#PerficientDigital FOLLOW US ONLINE • Perficient.com/SocialMedia • Facebook.com/Perficient • Twitter.com/PRFT_Transform • Blogs.perficient.com/digitaltransformation/ Registration Coming Soon On March 17 at 1PM CT, we launch our Cloud First, business-driven webinar series, where you’ll learn how to accelerate cloud transformation for your business. Check Perficient.com/webinars for details

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