NASSCOM ILF 2016: The Two Sides of the transformation coin: Digital Outside and Inside.

Two Sides of the Transformation Coin:

Digital Outside and Digital Inside

SCOTT LIEWEHR, CEO (@sliewehr)

DIGITAL CLARITY GROUP

@sliewehr | #NASSCOM_ILF

False dichotomy: (false dilemma)

occurs when an argument presents

two options and ignores, either

purposefully or out of ignorance,

other alternatives.

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78% of businesses focus their

digital transformation efforts on

either the front office or the

back office. Not both.

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Digital Outside vs. Digital Inside

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Empowered consumers

of consumers say they have

switched business to a competitor

due to poor customer experience

89%@sliewehr | #NASSCOM_ILF

Say they will pay a premium for great

customer experience

Source: Haaris Interactive survey of North American consumers, 2011. Commissioned by RightNow.

customer

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Makes sense, right?

Of companies with “CX” initiatives:

2.3% have improved

69.2% remain the same

28.5% have gotten WORSE

Source: Forrester’s CX Index of 299 brands between Q1 and Q3 2015

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Source: James Chowning Davies’ “Toward a Theory of Revolution”, American Sociological Review, February 1962

J-Curve theory of revolution

Customer’s Perceived Experience

– Customer’s Expected Experience

[the change in] Customer Satisfaction

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60% of customer

dissatisfaction sources are

found in the back office

Source: Capgemini Consulting, 2013.

Digital agility should be the

desired result of digital

transformation

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Strategic inflections

Source: Based on Andy Grove, Only the Paranoid Survive, 1996

Status Quo

Strategic Inflection Point

New Paradigm

Old Paradigm

“Dissonance gap”

Source: Based on Andy Grove, Only the Paranoid Survive, 1996

Status Quo

New Paradigm

Dissonance Gap

Grove says strategic inflections can

come from anywhere: “new

technologies, new competition, new

regulations, new customer values and

habits,” – anything that has a

significant impact on the business itself

or the industry as a whole.

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Time

Va

lue

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Then

Time

Va

lue

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Now

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Only 30% of executives feel their

operational processes can adapt

quickly to external changes.

Time

Cu

sto

mer

Exp

eri

en

ce

Qu

ality

Improve today’s

experience

Transform the

organization

Sustain cultural

change

Customer-focused transformation

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We should not be talking solely about

digital experiences; rather, digitally-

powered experiences, achieved

through digital agility.

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@sliewehr | #NASSCOM_ILF

Digital Outside vs. Digital Inside

Scott Liewehr, [email protected] | @sliewehr

www.digitalclaritygroup.com@just_clarity