This document discusses customer centric innovation and experience engineering. It describes Geoffrey Moore's systems of engagement, record, and insight. Experience engineering is presented as a way to focus on the customer experience through the development process. The Emotion Centric Observations app and library are introduced as tools to capture customer sentiments. Key takeaways emphasize focusing on systems of insight, connecting with the business, prioritizing customer experience, and detailed experience measurement.

1. © 2016 NTT DATA, Inc.
CUSTOMER CENTRIC INNOVATION IN A
WORLD OF SHINY OBJECTS
Doug Reeder, Sr. Director of Innovation
NTT DATA, Inc.
InnoTech San Antonio 2017
@DougReeder

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Stepping back

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Geoffrey Moore: Systems of Engagement and The
Future of Enterprise IT (2011)

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Systems of Record and Engagement
Geoffrey Moore
Systems of Engagement
 Mobile interactions
 Text, tweets, posts
 Chatbots, digital assistants
 Robotic Process Automation
 Personal identity management
 Augmented and Virtual Reality
Systems of Record
 Log transactions
 Financial accounting
 HR, CRM, ERP systems

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Systems of Record, Engagement & Insight
Systems of Insight
 Analytics (of everything)
 Intelligent context awareness
 Value identification
 Policy engagement Geoffrey Moore
Systems of Engagement
 Mobile interactions
 Text, tweets, posts
 Chatbots, digital assistants
 Robotic Process Automation
 Personal identity management
 Augmented and Virtual Reality
Systems of Record
 Log transactions
 Financial accounting
 HR, CRM, ERP systems

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Systems of Insight
Systems of Insight
 Analytics (of everything)
 Intelligent context awareness
 Value identification
 Policy engagement
Key Enabling Technologies
 Machine Learning, AI/Cognitive
 Internet of Things systems
 Computer vision
 Digitized Journey Mapping
 Container management
 Wireless, 5G, Hybrid wirelessKey Trends
 Decentralized analytics (Edge)
 Machine learning
 Focus shifting from broad
market to a market of one
 Profit & Loss on individuals
Understanding
the customer
experience is
essential

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With HBR we found that
CIOs were finally interested
in investing in innovation
after a long period of forced
cost cutting, up to 20% year
over year.
Value was found in
enabling innovation
Innovation from Efficiency: Unlocking the Value in IT Systems; A joint study by NTT DATA* & Harvard Business Review
*This study was conducted by Dell Services which was acquired by NTT DATA, Inc. in November, 2016
28% of CEOs think
their CIO is performing
better than their peers.

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CIOs who were aligned with
CEOs and strategic decision-
making committees were out
performing their peers by a
ratio of almost 2:1.
Value was found by
understanding the
business that IT
was enabling.
The C-suite Challenges IT: New Expectations for Business Value: A joint study by NTT DATA* & The Economist Intelligence Unit
*This study was conducted by Dell Services which was acquired by NTT DATA, Inc. in November, 2016
Only 46% of CEOs felt
their CIOS understood
the business.

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Forbes Insights research
sought to understand the role
IT would play in helping drive
revenue verses just
delivering IT.
Value was found in
driving revenue
Accelerating Value: Mega Trends Impacting Business Today; A Joint Study by NTT DATA* & Forbes Insights
*This study was conducted by Dell Services which was acquired by NTT DATA, Inc. in November, 2016
75% of C-Suite
executives want their
CIO to play an active
advisory role in setting
business strategy.

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According to McKinsey analysis:
Source: McKinsey Global Innovation Survey, McKinsey analysis Extracted January 5, 2017
“While 84 percent of global executives told us in a recent survey that they
believe innovation is extremely important to their growth strategies, 94
percent were unsatisfied with their innovation performance.”

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Solving for X
Managing value is a matter of adjusting
the numerator and/or the denominator.Value (x) = The value
we’re seeking to achieve
Denominator (b) =
What drives cost
Numerator (a) =
What drives revenue
Where is your IT organization focused?
Growth & Efficacy
Savings & Efficiency

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Customer Experience (CX) and Experience Engineering
CX

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Customer Experience Reality
~90%
of companies have
multiple communications
channels
~60%
of companies don’t
measure their
customers’ cross
channel journey
Customers are 4x more
likely to go to a competitor
if the problem is service-
related than price or
product related.
~75%
of customers use
3 channels or
more for customer
service issues.
~80%
of customer service
interactions no longer involve
talking to an employee.

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Customer Experience Reality
Multiple studies indicate that the
majority of dissatisfied customers
directly tell between a few to more
than people.
This can be greatly amplified by
social media.
55% - 70% - 86%
of buyers are willing to pay
more for a better customer
experience.
~90% of consumers
began doing business with
a competitor following a
poor customer experience.

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Customer Experience Reality
Applying the best engineering
practices to product development
doesn't necessarily result in
positive Customer Experiences.
Microsoft designed Windows 8 using the
state of the art software engineering
methodologies to support feature rich
experience enabling click and touch
friendly interfaces, but the customer
experience was generally unsatisfactory.
Customers widely complained about the missing Startmenu, among other things.
Plan Features
✔ !
Customer
Experience
✔ ✔
Software
Engineering
✔
Marketing &
Public Relations

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Agile & DevOps – Increasing development efficiencies
Development, Testing &
Operations
Stage Gate: sign-off for
every phase
Business
Function Owner
Development
Testing
Operations
User
INCREASED FOCUS ON
EXPERIENCE ENGINEERING
REDUCED SOFTWARE
ENGINEERING COMPLEXITY
Development, Testing &
Operations
Mitigate risks early
in elaboration phase
Development, Testing &
Operations
Smaller iterations: Negotiate
& collaborate vs contract
Development, Testing &
Operations
Smaller iterations: Tooling across
development, testing & operations
Increasing customer
engagement requires a
comprehensive
approach that involves
them throughout the
development cycle and
post-implementation for
continual feedback.
GAP
DevOpsLarge Iterations AgileWaterfall

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CUE2 – Continuous User Experience Engineering
Business
Function Owner
Development
Testing
Operations
User
INCREASED FOCUS ON
EXPERIENCE ENGINEERING
REDUCED SOFTWARE
ENGINEERING COMPLEXITY
CUE2
Increasing customer
engagement requires a
comprehensive
approach that involves
them throughout the
development cycle and
post-implementation for
continual feedback.
Development, Testing &
Operations
Stage Gate: sign-off for
every phase
Development, Testing &
Operations
Mitigate risks early
in elaboration phase
Development, Testing &
Operations
Smaller iterations: Negotiate
& collaborate vs contract
Development, Testing &
Operations
Smaller iterations: Tooling across
development, testing & operations
DevOpsLarge Iterations AgileWaterfall
Development, Testing,
Operations and Users
Smaller iterations: Tooling across
development, testing & operations

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Emotion Centric Observations (ECO) App & Library
• User Journey Daemon captures all the interactions of the user in the
application context
• Micro sentiment engine, provides an ability for the user to select a micro-
sentiment (like happy, sad, etc), will have an ability to accept user-
comments in the form of text, audio and video. This interfaces with ECO
services, a micro sentiment interface for applications and closes when the
application closes.
• ECO Registry is a server-side component that needs to know what
applications OR URLs are registered for ECO. This includes access
rights for the applications / URLs and also provide the source-data for
ECO Launchpad
• ECO Launchpad is a thin / think client that runs on the users desktop /
mobile devices and provides a facade for all the applications, URLs that
the user is entitled to use for the enterprise business
• ECO Services are set of RESTful services that support extraction of
registered applications, persistence of user journey, micro-sentiments.
• ECO DB is the database that persists application specific and user related
user-journey,micro-sentiments.
• ECO Analytics/ Reports provide necessary feeds forchange
management of the applications for better user experience.
• Browser Application, Mobile and Client Server Application areall
depicting various types of enterprise applications
• ECO Library, used for green field applications

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Micro Sentiment Engine
Micro sentiment engine, provides an
ability for the user to select a micro-
sentiment (like happy, sad, etc), will have
an ability to accept user- comments in the
form of text, audio and video. This
interfaces with ECO services, a micro
sentiment interface for applications and
closes when the application closes.

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Emotional Index
Angry
ConfusedFrustrated
Bored
Happy
Cool
Conduct ongoing Experience Engineering
studies to identify where the product is working
well and where there are customer needs.
• Identify the present experience and quickly fix
problem areas
• Conduct Experience Audits
• Implement change management processes
Derived Emotional Index maps to micro sentiments
Emotional Index: Numeric Value 1 – 100 (Ex: 90 – 100: Cool)

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ECO App – Browser Example
APP
ECO APP, toaster window
allows the user to provide
feedback/ suggestion, capture
‘moment of truth’ via
emoticons, text, voice and
screen capture given scenario
Angry
Frustrated Confused
Bored
Happy
Cool

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CUE2 ECO App Dashboard

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Books that can help IT connect with the business
Alexander Osterwalder

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KEY PARTNERS
• Who are our key partners?
• Who are our key suppliers
• Which key resources are we
acquiring from our partners?
• Which key activities do
partners perform?
KEY ACTIVITIES
• Do our value propositions
require?
• Our distribution channels?
• Customer relationships?
• Revenue streams?
CUSTOMER
RELATIONSHIPS
• How do we get, keep and grow
customers?
• Which customer relationships
have we established?
• How are they integrated with the
rest of our business model?
• How costly are they?
CUSTOMER
SEGMENTS
• For whom are we creating
value?
• Who are our most important
customers?
• What are the customer
archetypes?
VALUE
PROPOSITIONS
• What value do we deliver to the
customer?
• Which on of our customers’
problems are we helping to
solve?
• What bundles of products and
services are we offering to each
segment?
• Which customer needs are we
satisfying?
• What is the minimum viable
product?
CHANNELS
• Through which channels do our
customer segments want to be
reached?
• How do other companies reach
them now?
• Which ones work best?
• Which ones are most cost-
efficient?
• How are we integrating them
with customer routines?
KEY RESOURCES
• What key resources do our
value propositions require?
• Our distribution channels?
• Customer relationships?
• Revenue streams?
COST STRUCTURES
• What are the most important costs inherent to our business model?
• Which key resources are most expensive?
• Which key activities are most expensive?
REVENUE STREAMS
• For what value are our customers really willing to pay?
• For what do they currently pay?
• What is the revenue model?
• What are the pricing tactics?
Business Model Canvas

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Determine Value Propositions

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Value Proposition Design

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 Understand context - Where are we as an IT industry?
 Don’t lose sight of the long term amidst shiny objects
 Fully embrace Systems of Insight – this is the new competitive front
 Focus on the numerator to connect with the business
 Start with the customer experience in mind
 Engage and measure the customer experience at more detailed levels
Key Takeaways

28. © 2016 NTT DATA, Inc.
THANK YOU
@DougReeder