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The Customer-Adaptive Future

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

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THE INDUSTRIAL-AGE COMMAND-AND-CONTROL MANAGEMENT APPROACH IS OBSOLETE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