This document summarizes a presentation on serving next-gen customers in an era of seismic technology shifts. It discusses how macro trends, a dynamic workforce, disruptive tech adoption, and new digital business models are changing customer expectations. Presenters discuss how companies need to transform their business models to focus on outcomes and experiences rather than just products. They also discuss how digital disruption requires changes to business models, not just technology, and how companies must learn to support highly personalized customer segments.

1. Serving the Next-Gen Customer

2. Presenters
Ashley Fieglein Johnson
Chief Customer Officer
ServiceSource
R “Ray” Wang
Principal Analyst & Founder
Constellation Research

3. Innovation Global ConsolidationNew Models
Seismic, Technology-Driven Shifts

4. Seismic, Technology-Driven Shifts
Across every industry
Innovation Global ConsolidationNew Models

5. • How should I change my process to adapt to innovative delivery and business models?
• How should I respond to non-traditional competitors?
• How can a greater focus on customer value be used as a revenue growth lever?
New questions
Seismic, Technology-Driven Shifts
Innovation Global ConsolidationNew Models

6. R “Ray” Wang
Principal Analyst and Founder
Constellation Research

7. ©
2010
–
2015
Constella0on
Research,
Inc.
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rights
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52%
of
the
Fortune
500
firms
since
2000
are
gone
6

8. ©
2010
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2015
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Research,
Inc.
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rights
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©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
“A
digital
divide
exists
between
the
organiza0ons
who
have
built
digital
business
models
and
everyone
else.”
(2013)
-­‐
@rwang0

9. ©
2010
–
2015
Constella0on
Research,
Inc.
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rights
reserved.
1. Macro trends
2. Dynamic work force
3. Disruptive tech adoption
4. New digital business models

10. ©
2010
-­‐
2015
Constella0on
Research,
Inc.
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rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Five generations of digital workers not by
age, but by digital proficiency
Digital
Proficiency
1.
Digital
Na=ves
Comfortable
in
engaging
all
digital
channels
2.
Digital
Immigrants
Crossed
the
chasm
into
the
digital
world,
forced
into
engagement
with
digital
channels
3.
Digital
Voyeurs
Recognize
the
shiM
to
digital
but
not
ready
to
be
ac0ve
yet
themselves
4.
Digital
Holdouts
Resis0ng
the
shiM
to
digital,
ignoring
the
impact
5.
Digitally
Disengaged
Understand
digital
but
avoiding
engagement
on
purpose,
oMen
for
privacy
reasons

11. ©
2010
-­‐
2015
Constella0on
Research,
Inc.
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©
2010
-­‐
2015
Constella0on
Research,
Inc.
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rights
reserved.
@rwang0
Tech convergence powers digital disruption
Mobile
Social
Cloud
Big
Data
IOT
3D
Prin0ng
Design
Thinking
Inspired
User
Experience

12. ©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
The business model shift is here and we
move to outcomes and experiences
• Product
companies
give
away
product
for
service
revenues.
• Service
based
businesses
sell
experiences
at
varying
price
points
and
service
levels.
• Experience
based
businesses
selling
business
models.
• Business
model
companies
sell
peace
of
mind.

13. ©
2010
-­‐
2015
Constella0on
Research,
Inc.
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rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
State of boardroom priorities in 2015
Investment
in
digital
presence
Consistent
delivery
of
customer
experience
(CX)
Digital
transforma=on
of
the
business
Rapid
response
to
non-­‐tradi=onal
compe=tors
Crea=on
of
insights
driven
business
models
Priori0zed
development
of
high
performance
culture
Readiness
for
inorganic
growth
Mass
automa0on
of
work
and
thought
Efficiency
in
post
merger
integra0on
Cost
reduc0on
of
regulatory
and
security
compliance

14. ©
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2015
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Research,
Inc.
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The Battle For Experiences And Outcomes

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Transform business models

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Medical device companies don’t just sell
imaging systems

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Disney doesn’t sell theme park tickets

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The NFL doesn’t sell tickets to a game
or merchandising

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Augmented reality adds new and unique
experiences
Emergency
Exit
150
m
Player
Camera
180
M
Referee
Stats
180
m
Colleague
at
Work
225
m
Colleague
at
Work
450
m
Box
Seats
180
m
Player
Camera
125
m
Emergency
Exit
300
m

20. ©
2010
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Research,
Inc.
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Fans seek outcomes not products
Home
town
pride
Status
symbols
Memorable
moments
Glory
stories
Perfect
game
days
Aspira0onal
goals
Place
to
do
deals
Night
on
the
town
Community
outreach
and
impact
Role
models
Player
and
team
engagement
Examples
of
values

21. ©
2010
–
2015
Constella0on
Research,
Inc.
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Digital disruption is more than just a
technology shift, it’s new business models

22. ©
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2015
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Can you support a customer segment of
one?

23. ©
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What could you build next with context?

24. ©
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©
2010
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2015
Constella0on
Research,
Inc.
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rights
reserved.
@rwang0
Help customers progress in tech adoption
maturity
Level
1:
Discovery
• Discerning
hype
from
reality
• Garnering
execu0ve
support
Level
2:
Experimenta0on
• Iden0fying
meaningful
metrics
• Incorpora0ng
new
tech
into
business
models
Level
3:
Evangeliza0on
• Choosing
the
right
go
forward
placorm
(tools)
• Fostering
internal
collabora0on
Level
4:
Pervasiveness
• Scaling
to
match
demand
• Ensuring
long
term
funding
Level
5:
Realiza0on
• Keeping
up
with
tech
innova0ons
• Developing
tech
governance
©
2010
-­‐
2014
R
Wang
&
Insider
Associates,
LLC.
All
rights
reserved.
D
E
E
P
R

25. ©
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2015
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Research,
Inc.
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Lessons learned
#SBF14 #CDO @ekolsky @rwang0

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©
2010
-­‐
2015
Constella0on
Research,
Inc.
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rights
reserved.
@rwang0
Rule
1:
Digital
disrup0on
is
more
than
just
a
technology
shiM.
It’s
about
transforming
business
models
and
how
we
engage.

27. ©
2010
–
2015
Constella0on
Research,
Inc.
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rights
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©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
2:
We
move
from
selling
products
and
services
to
keeping
brand
promises.

28. ©
2010
–
2015
Constella0on
Research,
Inc.
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rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
3:
We
serve
5
genera0ons
of
customers
&
workers,
by
digital
proficiency,
not
by
age.
Digital
Na0ves,
Digital
Immigrants,
Digital
Voyeurs,
Digital
Hold
Outs,
Digitally
Disengaged

29. ©
2010
–
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
4:
Data
is
the
founda0on
of
digital
business.
Every
touch
point,
every
click,
every
digital
exhaust
is
relevant
insight.

30. ©
2010
–
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
5:
If
20
%
of
your
revenue
is
not
an
insight
stream
by
2020,
you
won’t
have
a
digital
biz
model.

31. ©
2010
–
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
6:
You
need
more
than
a
Chief
Digital
Officer
to
infuse
digital
into
your
organiza0on.
You
need
a
broad
bench
of
Digital
CXO’s.

32. ©
2010
–
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Rule
7:
We
must
invest
in
digital
ar0sans.
Authen0c
|Relevant
|Transparent|
Intelligent
Speedy
|
Ar0s0c
|Non-­‐conformist

33. ©
2010
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2015
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Research,
Inc.
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rights
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Next Steps

34. ©
2010
–
2015
Constella0on
Research,
Inc.
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rights
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“Start with the business model, hone in on
the outcomes and experiences.”

35. Discussion

36. Point of
Sale
Onboarding
+ Adoption
Upsell +
Cross-Sell
Retention +
Renewal
From CLM to the customer revenue lifecycle

37. salesforce.com
An innovative company demanding
customer adoption across every tier
Innovation Global ConsolidationNew Models
The next-gen customer in action

38. Shifting to continuous value delivery
requires a focus on customer success
Fortune 100 networking leader
Innovation Global ConsolidationNew Models
The next-gen customer in action

39. A new approach to data in the face of
disparate systems
VMware
Innovation Global ConsolidationNew Models
The next-gen customer in action

40. ©
2010
–
2015
Constella0on
Research,
Inc.
All
rights
reserved.
©
2010
-­‐
2015
Constella0on
Research,
Inc.
All
rights
reserved.
@rwang0
Design
new
experiences
Develop
a
culture
of
digital
DNA
Apply
new
business
models
and
technologies
to
exis=ng
infrastructure
Move
from
gut
to
data
driven
decisions
Co-­‐create
and
co-­‐innovate
with
new
partners
Five
simple
steps
to
digital
transforma0on
5
4
3
2
1

41. Software Hardware Networking
Industrials, Healthcare
and Life Science Subscription Revenue
$14.5B
Recurring Revenue
under management
LOCATIONS WORLDWIDE:
ServiceSource: Helping leading companies maximize
customer lifetime value
Focused exclusively on customer lifecycle management for 15 years
60%
Revenue through channel
240K+
Partners and Resellers

42. Further Questions?
Visit us at www.servicesource.com