The Customer-Adaptive Future

Introduction

Abstract

Introduction

CRM has been greatly misunderstood and has failed to live up to its promise, and customer experience management (CEM) as a response to commoditization only provides part of the answer to a lack of differentiation. As Matthew Key, CEO and chairman of Telefonica Digital recently stated in The Times: "disrupt your model fast before somebody else does it for you."

Highlights

A customer-adaptive enterprise has highly acute peripheral vision and is driven by a desire and strategic intent to create and deliver value.

Features Benefits

• Understand that organizations which display customer-adaptive behaviors are likely to produce better margins because they will have a healthy innovation index (a high percentage of new products or services over old).
• Understand that innovations will be driven by deeper insights into the changing customer context and brought to market faster than is possible for their competitors.

Questions Answers

• What is the future of CRM?
• What is beyond CEM?

Table of Contents

Table of Contents

Headings

SUMMARY

• Catalyst
• Ovum view
• Key messages

A CAE SYNTHESIZES THE BEST IN STRATEGIC CRM/CEM THINKING AND ADAPTIVE ENTERPRISE PRINCIPLES

• The best in strategic CRM thinking provided a foundation for a customer-adaptive enterprise
• Fast-forward from CRM to CEM
• Innovation must not be outsourced

THE INDUSTRIAL-AGE COMMAND-AND-CONTROL MANAGEMENT APPROACH IS OBSOLETE

CEM IS A POSITIVE RESPONSE BUT NOT ENOUGH TO GUARANTEE PERSISTENT RELEVANCE

• The human dimension has emerged as critical in CEM

THE CUSTOMER-ADAPTIVE MODEL CLOSES THE LOOP ON VALUE CREATION AND DELIVERY

CUSTOMER-FOCUSED VISION AND PERVASIVE EMPOWERMENT ENCOURAGES COLLABORATION AND INNOVATION

• Core ethical values
• Customer-centric vision
• Decentralized decision-making: empowerment
• Enterprise-wide optimized mission-critical processes
• Optimized and engaged workforce
• Team-based collaborative organization versus silos
• Powerful closed-loop sensing capabilities across the enterprise
• Collaborative extended ecosystem of customers, partners, and suppliers
• Adaptive enterprise architecture
  • Customer-facing applications
  • u201cGamifiedu201d enterprise social networking applications
  • Back-office enterprise applications
  • Project portfolio management
  • Workforce development and optimization
  • Innovation management
  • Ecosystem orchestration and collaboration
  • A portfolio of connected enterprise applications and an enterprise u201cnervous systemu201d
  • The Internet of Things creates new value
• Impact of core attributes

ORGANIZATIONS IN MANY SECTORS ARE DISPLAYING CUSTOMER-ADAPTIVE CHARACTERISTICS

• Virgin Atlantic
  • On values and vision
  • On collaboration and workforce engagement allied to enterprise-wide, mission-critical processes
• IBM
  • On vision, values, and collaboration
  • Enterprise-wide versus departmental silos increasing speed and rate of innovation
• First Direct
  • First Direct is designed around customers and employees, supported by an adaptive enterprise architecture
  • Customer collaboration via social networking and crowdsourcing
• Apple
  • Supported by a global ecosystem
• Kingfisher
  • Realtime intelligence across five supermarket chains
  • Engaged colleagues and an ethical approach deliver a better customer experience
• Lenovo
  • End-to-end processes with a u201cnervous systemu201d turns Big Data into fast data
  • R&D is a core competence
• What these companies have in common is persistent customer relevance

RECOMMENDATIONS

• Recommendations for enterprises
• Recommendations for vendors

APPENDIX

• Methodology
• Further reading
• Author

Figures

• Figure 1: The CRM strategic framework
• Figure 2: The number of channels consumers use to interact with a firm
• Figure 3: Evolutionary journey to the customer-adaptive model
• Figure 4: Relationship between employee engagement and customer experience
• Figure 5: Maslow's hierarchy of needs in the workplace
• Figure 6: Attributes of the customer-adaptive enterprise
• Figure 7: Enterprise applications that might be found in a customer-adaptive enterprise
• Figure 8: Apple shows a healthy innovation index

The Customer-Adaptive Future published by Ovum, Ltd. in December 17, 2012. This report price starts from US $ 3395.