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Digital disruption
This document discusses the increasing complexity of digital experiences and expectations in today's world. It notes that 52% of Fortune 500 companies since 2000 are gone, and that digital disruption will impact 93% of CXOs' businesses in the next 12 years. It also mentions that 52% of users are frustrated by mobile app performance issues. The document advocates for changing how companies work to be more collaborative, gaining insights over just data, and creating digital experience centers to improve customer experience across channels while ensuring high application performance and continuous delivery.
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Digital disruption
- 1. ‘Unreal’ Digital Expectationsin a Complex Digital World. Dave Anderson Marketing Director @daveando LI: daveando
- 2. Java .NET PHPC++ Oracle SAP CICS Big Data Network Centric
- 3. The World’s LeadingBrands Trust Dynatrace
- 5. Speak to thehand 100B App Downloads - Apple iTunes Mobile users 4x more engaged than desktop Singles Day China: 70% of traffic Mobile Walmart: 70% traffic mobile (Cyber Monday ‘14)
- 6. The Rise ofthe Faceless Organisation Banking: Native App Airline: Native App Retail: Native App and Mobile sites Telco: Web and App Uber: App News: … Entertainment: Native Apps
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- 8. #Perform2015 52% of theFortune 500 firms since 2000 are gone“ ”
- 9. Digital is ChangingThe Game Of Business Believe that digital will disrupt their business in the next 12 months 93% of CxOs check their smartphones within the first 15 min of waking up 4 out of 5 of users frustrated by delivered mobile app performance 52%
- 10. 52% are frustratedwith mobile app performance?
- 11. We are ageneration of spoilt idiots
- 12.
- 13.
- 17. #techfails HURT Brands(and costs big dollars!)
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- 20. #Perform2015 There are now 24,093unique Android Devices 28% more than last year… Developer Migraine… @daveando
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- 22. #Perform2015 1. Change the waywe work Not just #devops it’s #bizdevopsmarksaleslegalhr
- 23. More frequent deployments Practice DevOps Fasterlead times than their peers Faster mean time to recover Higher market cap. growth over 3 years @realgenekim 30x 8,000x 12x 50% Amazon 11.7 Secs
- 27. 2. Get answers notmore data And give it to your entire organisation!
- 28. Let's work theproblem people. Let's not make things worse by guessing. APOLLO 13
- 31. Find a needlein a haystack You found in minutes what we failed to find in months
- 32. 3. The rise ofthe digital experience centre
- 34. Stop being genericin your responses
- 35. This rise ofthe digital command centre Customer Experience Omni-channel Analytics Business Analytics Other analytics (Google Analytics, Marketo, etc.) Virtual Users Social Data Integration (Twitter feed, sentiment analysis)
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- 39.
- 40. “Hi @paularodgers. Noticedyour app crashed. Please visit a service desk where a coffee and boarding pass awaits you ~ Mary”.
- 42. Unified User & App Insights Improve MTTR& MTBF Optimize Spend Deliver on user sat & SLAs Improve release quality Conversion and Optimization Users behavior insights User experience across channels Launch Readiness Reduce unplanned work Release capabilities faster Keep up with the pace of change Uncover new business insights User Experience Continuous Delivery Application Performance Identify and prevent problems 3 to 5 second average response time improvements 30% faster checkout 1,800% Spike in traffic No Bottleneck 66% hardware savings 30% faster web site 49% increase in revenue 3x release frequency increase reduced MTTR by 90% 80% faster time to market
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- 44. COMPANY CONFIDENTIAL –DO NOT DISTRIBUTE
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- 46. 1) Hire abetter development team
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- 48. Sending an emailto a million people with a great offer
- 49.
Editor's Notes
- #5 I’ve grown up in retail. Both my parents had retail stores, my Dad a Mitre 10 hardware store that he ran for 30 years (that’s him there) and my Mum, a fashion store. I basically grew up on the premise that customer service was absolutely critical to the success of a business. Unfortunately for my Dad, he eventually lost out to the bigger box stores, who’s current market share doesn’t dictate the need for superior customer service… but that’s not the point I’m trying to make today… You see in the past, customer service was in store. We would encourage staff to smile, to solve problems, to be friendly and most importantly we could see if they waited too long at the counter. You guys know where I’m going with this right…technology has changed that.
- #6 The store isn’t just on the street anymore. It’s in our hands. The big thing now is, you don’t need a big bank balance to buy the cnr of main and main, set up your shop and catch all the passing traffic. The playing field is level. Anyone with an idea, a developer, and a good idea, can compete with the big businesses. Even potentially wipe out industries…when you think about air bnb, uber, and Let me share an example. So if our experiences are no longer in face to face customer service, how does a brand maintain it’s relevance. How do they wow their customers, keep their loyalty, and ultimately stop them from jumping from one banking app, or online shop, to another, when fundamentally they are almost the same.
- #7 Customer Experiences are now digital not physical. I don’t’ go to the bank…I open an app. I don’t ring for a taxi, I open an app. I don’t talk to a sales assistant, I order online. My digital experiences are wrapped in a phone. ]Telco – enable a travel pass…
- #8 It’s the rise of digital services companies. Companies that provide advanced features, connectivey, functionality, to our hands. They are mobile first…. I mean how cool is the uber experience? Nice cars, fast call up, see when they are arrive and you don’t have to pull out your credit card. Facebook…you are marty mcfly if you don’t have facebook…….you guys get my point. We no longer want to be rockstars…we want to be nerds….
- #9 IN fact 50% of the biggest companies in the world are now gone. You guys get what is happening don’t you…that’s why you are here.
- #10 Digital Has Changed The Game Of Business. it has become clear to us that we are going through a major transformation due to the explosion of digital. What you may or may not know is the extend to which our behaviors as consumers or users, is raising the bar for what the new norm is. We are past the “google effect”. Your customers, your competitors, and your suppliers are all digital now. You can't address this change with a bolt-on strategy where the applications that make up those digital experiences are managed in silos, without an understanding of the user perspective. You need a comprehensive strategy that embraces both digital markets and digital operations. 93% of CxOs believe digital will disrupt their business in the next 12 months (Source: Forrester “state of the digital business 2014”) OTHER FACTS THAT YOU CAN USE BASED ON CONTEXT Customers are omnichannel 75% will use some digital in their shopping (source, Dec 2014) 60% will buy on-line items seen in-store (source, Dec 2014) 58% use smartphone while shopping in stores (source, Dec 2014) 26% use mobile to make a purchase while in store (ie showrooming) (source, Dec 2014) shoppers are using an average of 2.6 devices across 1.5 channels on their journey to purchase (source, Oct 2014) 90% use multiple devices for their digital journeys (source, Aug 2012) The mobile explosion 70% mobile traffic from mobile for Walmart.com on 2014 CyberMonday (source) 52% overall mobile traffic for 2014 thanksgiving (source) 27.9% sales = mobile, up 28% YoY (source) +51% mobile shoppers on 2014 BlackFriday according to Paypal (source) 60% digital media time spent on mobile in 2014 (source, 2012) 84B$ in 2014 for top500 retailers without eBay, up 80% YoY, that's 4x eCommerce growth (source) 34B$ projected for eBay in 2014, 70% YoY growth (source) 60% time spent and 21% purchase on mobile in 2014 (source) 61% US millennials planned to purchase more via mobile than in physical stores (source) 76% US millenials will use mobile to search for and/or buy gifts (source) 42% will shop more via mobile 2014 shopping season (source) BestBuy Went down, struggled to handle mobile traffic (source) 28% top500 retailers have no mobile optimized web site (source) 50%+ RueLaLa.com revenue were mobile (source, Dec 2014) 80% adults WW will have a smartphone by 2020 (source) mobile apps taking the lead 174% YoY growth for iOS and Android shopping apps sessions (source) Shopping Apps Are Now The Fastest Growing Thing In Mobile (source) 4x mobile app traffic 2014 versus 2014 for Walmart (source) 50%+ papa john’s sales via mobile app in 2014 (source) 42% of m-commerce sales come through apps (source) 59% US millennials prefer mobile apps from app stores over web (source) 52% of monthly active users of 50 top iOS commerce apps shop through the apps at least once a week (source) 20% mobile apps used once then deleted (source) 48% top500 don’t have any mobile app, 52% having will grow 15% faster (source) JackThreads.com app = 3x conversion rate, avg ticket 40% higher than mobile Web, 89% sales (source) 50% Apple AppStore growth versus 8% Apple device growth -> usage maturing, device usage after device sales (source) market maturing: mobile apps adoption soar with 115% growth in 2013 (source) Digital transformation imperative 88% undergoing digital transformation (source) 53% CxOs find it hard to understand customer behavior and needs (source) User exprience is #1 APMDigest 2015 prediction (source) 92% companies consider UX as top priority (source) 84% users rate delivered performance as important (source) 52% users frustrated by delivered mobile app performance (source) User expectations growing over time (new devices, 4G) 70% companies planned to conduct more usability tests in 2014 over 2013 (source) The need for mobile strategy 97% of CIOs have high hopes for what mobile can do for their business (source) 25% CIOs don't have a mobile strategy (source) 50% of CIOs believe mobile app dev takes too long (leverage DevOps Message) (source) 69% of CMOs recognize the need to align with IT (source) User experience performance #1 impact on conversion 46% US & FR will shop elsewhere if site takes more than 3s to load and interact (source) 80% will abandon site when errors (source) 40% Top500 have a response time > 3s (source) 48% have less than 99.9% availability (source) 68% shopping cart abandoned (source) Reasons: 24% website crashed, 21% process was taking too long, 15% Website timed out (source) 18% of which for slow response time (source) 25% of which will never come back (source) -7% conversion for each second delay (source) slide 33 +10% conversion with 1s load time improvement for Staples, equates to 4M$ a day based on their 2014 on-line sales (source slide 30) +7% conversion with 1s load time improvement for GlassDirect (source) +2% conversion for 1s load time improvement for Walmart, 550K$ a day (source slide 46) User experience performance impacts brand image 44% US and 61% FR will air their frustration on social media when poor experience (source) FINANCE Vertical Track: - Changing customer expectations is the number-one change driver for financial services. - 83 million households use the Internet for online banking - 44% of bills are now paid electronically Talk Track: The financial industry is going through dramatic changes as a consequence of changing customer behavior, channel proliferation and the digitization of business. The digital transformations taking place in finance are driven by many common challenges and opportunities across the industry, whether it concerns insurance, (retail) banking or other financial services. - The need to integrate/connect distribution channels to optimize efficiencies, reduce costs and serve customers and prospects in a consistent way, the so-called omnichannel imperative. Some other key goals: better identify opportunities by looking at the overall customer life cycle (and important changes in it), improve experiences and (thus) enable better customer service and experiences. - Reducing churn and increasing loyalty. Loyalty is not enough anymore. Think experiences. - Decreased levels of trust: the impact of the 2008 financial crisis and uncertain economies today had a well-known impact. -Last but not least – there is the arrival of competitors with disruptive models that are better adapted to the increasingly digital consumer.
- #11 There are so many options why are frustrated with app performance? Our are expectations simply to high? Maybe it’s not the application that that is the problem…maybe its something else….
- #12 We are apparently all experts, professors and lecturers in computer science, application delivery and advanced programming. Aren’t we? No,…but we are given the opportunity at every corner to voice our opinions…and the sad reality is…we listen and respect each others opinion despite them being at times completely unfounded. Case in point is this example
- #13 Combat Complexity with monitoring
- #14 Fix the brand issue Resole solve requests Alleviate developers from wasting time. Add in – nike employs more…
- #15 Maybe it is the application or websites fault.., But applications and websites can disappoint us…especially when we really want them not to. Cyber Monday is like the Olympics for athletes so when failure occurs during this period it’s really disappointing for all involved.
- #16 And it’s not just main stream media that picks up on this stories. We are kick to throw our opinions in the mix as well.
- #17 This guys comments are hilarious. Look how polite he was at the bottom tweet, but he continued his rants as the site failed to deliver.
- #18 It doesn’t just happen to retailers though…when a banking outage occurs it cripples everything. Queue the a current affairs programs that inteviews the mum that is stuck in the supermarket and can’t pay for groceries or worse baby formula. We are so reliant on technology that when these outages occur it grinds everything to a screeching halt. In fact I’m told Singapore Gov fines banks for extended outages…just to rub additional salt in the wounds.
- #19 Call it the Netflix effect, google effect or Uber effect. But simply we are more demanding than ever before.
- #20 Firstly the internet is an insanely complex place. And deliverying quality software is ridiculous difficult considering the diverse delivery chain that an application or website has to travel in order to make it to the end user.
- #21 Launch it on 24k different devices. Oh I know what some of you are thinking…you don’t have to worry about each device do you? You would need to test on 186 different devices in order to cater for 80% of the market. 186…is that all…. So you can test on all of them, so you should monitor user experience though right?
- #22 Executives are finding a tremendous added benefit from working with Compuware. They are not only closing the gap – they are staying ahead of rising complexity and rising expectations. <DRAW> They have the right data to make better decisions – minimizing risk and meeting their business objectives.
- #24 The unicorns of this world understand the importance of software quality. They don’t wait 13 years to upgrade or to roll out.
- #25 The old way is not going to deliver what we need in the new world.
- #26 Can help alleviate problems by the organisation not working together.
- #35 You can’t just reply with standard responses anymore. You must have data to back it up and it needs to be delivered in an instant.
- #36 Forrester predicts the digital command centre will be
- #38 Need to be able to see every user as they interact with your site. Are they have a good experience or a bad experience? If it’s bad then why? If it’s bad what can you do about it?
- #40 For sites that have login functionality or an app, you can see the app crash. You now have the ability to reach out to them. To apologise,. To offer a coffee or a discount. Not sit and wait for them to rant on social media so you can serve them up another generic response like – try another browswer – or we are sorry let us look into it.
- #42 So imagine now. You are no longer putting out fires, you are no longer taking calls from irate customers. Instead you are delighting customers. You are making them smile. You are making them brand loyal. You are making their day. Not every call centre is structured like this….and working through such a change might take some pain….but remember what sets you apart from everyone else. Imagine what that is going to do for your business, for your colleagues, and most importantly for us….the customer.
- #43 The key to digital success, and survival is to have a platform and operation for your entire business. The 3 key pillars are to understand user experience. In IT it’s about continuous delivery, releasing mfaster, but importantly releasing with better quality. Lastly visibility into your application performance will give you the ability to find a needle in a haystack. Find and fix problems at rapid rates, optimize performance so that more time can be spent on innovation and less on fire fighting.
- #46 We are digital performance company
- #47 \
- #49 This is why we need closer alignment between IT and the Business. It’s when someone in marketing decides to create the most compeling email campaign of all time and then send it to the entire database without understanding the impact of a massive surge of traffic…. In this case we saw an outage as a result of the campaign.. In other stories I’ve heard that the IT security team shut down a site because they thought it was a denial of service attack… Either way it’s average. It higlights the need for us to be more collaborative in the way we deliver digital experiences.