What You Need To Be An Effective Digital Leader

AppD Summit Europe
What You Need To Know To Be An Effective
Digital Leader
Nigel Fenwick, Vice President, Principal Analyst, Forrester Research
AppD Summit Europe

@NigelFenwick© 2017 FORRESTER. REPRODUCTION PROHIBITED.
What You Need To Know
To Be An Effective Digital Leader
Nigel Fenwick, Vice President, Principal Analyst
May, 2017

@NigelFenwick5© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Source: Starwood Hotels & Resorts
New experiences
change our
expectations and
impact our future
value perceptions
© 2017 Forrester Research, Inc. Reproduction Prohibited

Experiences must deliver desired outcomes to create
value
Experiences
Shape
expectations
Outcomes
Shape value
perception

Experiences
continuously
evolve …
… causing
expectations
to rise

Source: Forrester Research @NigelFenwick
Experience
Expectation
Perceived Value
The Digital Dilemma
As expectations rise, without changes in experience, perceived value decreases.

@NigelFenwick9© 2017 Forrester Research, Inc. Reproduction Prohibited
Solving the digital dilemma
demands a fundamental shift
in how a firm delivers value
& drives revenue

We need to design
new digital experiences to satisfy desires
Old:
inside-out
New
outside-in
Digital prey Digital predator

What Is The Role Of A Digital Leader
In 2017 And Beyond?

Reporting lines are not critical
Source: Organize Your People For Digital Success – A 2017 Forrester Report

Many companies follow the money
Source: Organize Your People For Digital Success – A 2017 Forrester Report. Base 237 Executives in companies with more than 249 employees. “Digital revenue”
teams are responsible for revenue directly from digital products and services. Forrester/Odgers Berndtson Digital Business Online Survey.

Digital is increasingly falling under the tech
leadership role

What skills will I need?

Digital
leadership
skills

What skills will my team need?

The emerging
digital skills gap

The Six Principles Of Successful
Digital Leadership

Embrace Holistic Experiences
That Transcend Touchpoints
1

Empowered customers expect
personalized experiences
tailored to their moment of need

Journey Experience
touch points
Discover
Get Support
Buy
Use
Evaluate
Digital/Phone/Inperson
Systemsofengagement
Middleware
Systemsofrecord
Supporting Technology Stack
Use journey mapping to uncover gaps that create
sub-standard experiences and outcomes

Research
cars on
tablet
Build Custom
configuration
Test
drive
Compare
models in
showroom
Place
order
Pickup
car
Join
car
club
Share
photos
Configure
Settings in
app
Upgrade
Learn
features in
VR
Service
Design A Holistic Experience

0 16 804021 30 6555
Angst
College
Family
Crisis
Grandchildren
Freedom
Remember: Desires Evolve

Deliver outcomes through
personalized experiences

Become Insights Driven
2

Source: DuPont Pioneer

Sensors
↳Data
↳Analytics
↳AI / ML
↳Insights
↳Outcomes
↳Perceived $
↳Revenue
Emerging Digital Tech Allows Better Outcome
Delivery

Image source: cerzus69.deviantart.com
› Outcomes: What
are the best
outcomes that will
satisfy my
customer’s
desires?
Identify The Outcomes That Satisfy Desires

Scale experiences with AI/ML
Real-time analytics
and machine
learning directed at
helping customers
satisfy desired
outcomes

Invest In
Business Agility
3

Source: The December 2, 2015 “Unleash Your Digital Predator”
Digital businesses shift from linear
value chains . . .
. . . to nimble API enabled
value ecosystems

* Approximation based on client engagements. Results vary by company and industry.
Simplify, Simplify, Simplify
›10% of business
capabilities differentiate*
›90% of business
capabilities are common
across the industry*

Redesign The Organization
From Siloed To Connected
4

Replace old business silos with dynamic teams
Account
mgmt
Design/CX
Consulting
Appdev&SI
Infrastructure
Siloed model:
too slow and
uncoordinated
Specialized
services
Customers’ want
outcomes
regardless of silos
Customer
segments/
desires
Persona model:
clusters of experts
focus on outcome
delivery

To change
culture:
Look at what
your metrics
communicate
Source: “The Key Success Factors Of Digital Business Strategy, 2016” Forrester Report

To change
culture:
Look at what
your metrics
communicate

Fuel Customer-Led Innovation
5

Source: Microsoft
Incubate Emerging
Technologies
Keeping up with
customer expectations
will be a major driver of
tech investment

Source: Rebekka Minkoff
Focus on rapid experimentation
Engineer your
business model to
constantly evolve
with a plug & play
tech architecture

Deliver Customer Outcomes
(avoid the pit of doom)
6

Beware of setting
expectations
beyond operational
capabilities
Do the new experiences
deliver outcomes easier,
faster?
Do existing business
operations support the
smooth delivery of the
outcomes?

Design Holistic
Experiences
Become
Insights Driven
Create
Business
Agility
Move From
Siloed To
Connected
Fuel Customer
Led Innovation
Deliver
Customer
Outcomes
Apply These Six Principles Of
Successful Digital Leadership
To Every Initiative

What to do next depends on where you’re starting …
Starting out Already on your way Advanced
Map your customer’s
journeys
Identify new ecosystem
partners
Adopt blue-sky thinking
to deliver outcomes
Identify pain points -
save customer time
Data insights create
customer value
Incubate disruptive
startups
Identify operational
gaps
Automate operations Develop new business
models
Measure: Touchpoint
satisfaction,
operational agility
Measure: Journey
satisfaction,
operational productivity
Measure: Lifetime
customer value,
revenue growth

Continue to
develop your digital DNA
to design experiences
that deliver outcomes
which satisfy desires.

@NigelFenwick
FORRESTER.COM
Thank you
© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Nigel Fenwick
Twitter: @NigelFenwick
http://bit.ly/nigelblog

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Editor's Notes