Overcoming 5 Barriers to Digital Transformation

Overcoming 5 Barriers to Digital

Transformation Success

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#PerficientDigital

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ABOUT PERFICIENT

Perficient is the leading digital

transformation consulting firm

serving Global 2000 and enterprise

customers throughout North America

With unparalleled information technology,

management consulting, and creative

capabilities, Perficient delivers vision,

execution, and value with outstanding digital

experience, business optimization, and

industry solutions.

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PERFICIENT PROFILE

Founded in 1997

Public, NASDAQ: PRFT

2015 revenue ~$473.0M

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, Chicago, Cincinnati,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee,

Minneapolis, New York City, Northern California, Oxford (UK), Southern California,

St. Louis, Toronto

Global delivery centers in China and India

>2,800 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

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PRESENTERS

Nigel FenwickVice President, Principal Analyst

Forrester Research

Blog: http://bit.ly/nigelblog

@NigelFenwick

Michael PorterManaging Principal

Perficient

[email protected]

@porterondigital

@NigelFenwick

© 2016 Forrester Research, Inc. Reproduction Prohibited 5

Five Barriers To Digital Mastery One: Functional Silos Compete for Scarce Resources

› Business units scramble for

budget & time in a zero-sum

game

• Starving customer-value-driven

initiatives

› Different metrics drive

competing behaviors

• CIOs measured on cost and

efficiency vs CMOs measured

on customer acquisition &

retention

@NigelFenwick


One: Functional Silos Compete for Scarce Resources

› Use journey mapping to set

priorities

• Focus on customer value

creation

• Assign staff to cross-functional

CX teams

• Use customer outcome metrics

for all employees

Five Barriers To Digital Mastery

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JOURNEY MAPS BREAK DOWN BARRIERS

Booking experience

drives mobile for

customers and

drivers

Ticket scan drives

integration

@NigelFenwick



*Source: Forrester's Global Business Technographics® Data And Analytics Survey, 2015

Two: Customer Data is Segregated Across Silos

› Same customer data collected in

each business unit in different ways

• Customer view is one company vs

company view of multiple customers

• 49% of companies yet to implement a

strategy to get to a single view*

@NigelFenwick


Five Barriers To Digital MasteryTwo: Customer Data is Segregated Across Silos

› Shift perspective from inside-out

to outside-in

• Make customer data a

strategic asset

• Create a complete view of the

customer that’s easy to digest

› Map desires to create value

› Record & update preferences

› Understand how to create value

for people

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CUSTOMER DATA AT A WELL-KNOWN HOSPITAL

The hospital has data in a variety of locations.

Marketing is driving via its roadmap a way to

cut down the silo with one version of the truth.

EMR

Campaign Management

Post-Discharge

System

@NigelFenwick



*Source: Forrester/Odgers Berndtson Q3 2015 Global Digital Business Online Survey.

Three: Tech Management Budgets Are in a Downward Spiral

› Budget pressures have left Tech

Mgmt teams stretched thin

• Lack of digital skills

• Architecture designed for cost

efficiency over agility & flexibility

• 60% of executives believe technology

architecture is a critical gap*

@NigelFenwick



*See the "US Tech Market Outlook For 2015 And 2016: The BT Agenda Powers Steady Expansion"

Three: Tech Management Budgets Are in a Downward Spiral

› Prioritize Business Technology

(BT)

• US firms will increase BT spending

by 9.6% in 2016*

• Prioritize IT investments to build

agility and capacity to change over

cost reduction

• Focus BT investments on

continuous evolving improvements

of CX

• Evangelize tech as catalyst for

growth

https://www.forrester.com/go?objectid=RES119693


DISTRIBUTION COMPANY EXAMPLE

Our

Client

New

Entrant

Old

Competitor

Source: Forrester Research, 2015

Leveraged

investment from

other business

Invested in

mobile and

integration

@NigelFenwick


Five Barriers To Digital MasteryFour: Product-oriented Business Units Push Products, Not Outcomes

› Product BUs focus on market

segments to create product groups

based on perceived market

opportunities: inside-out.

• Today’s customer increasingly seeks

outcomes vs ownership

• Desired outcomes evolve

• Customers expect highly

personalized services

@NigelFenwick


Five Barriers To Digital MasteryFour: Product-oriented Business Units Push Products, Not Outcomes

› Customer groups focus on the

desires of specific types of

customer.

• Use journey maps to see how

customers satisfy desires

• Create the experiences that

deliver outcomes that satisfy

desires

• Create an experience

ecosystem to sustain

continuous evolution


MUST THINK FROM THE OUTSIDE-IN

Transformation is a process that requires a

holistic approach within your culture, processes,

and technology…based on your customer.

Use customer insight to evolve

digital assets and capabilities

Encourage customer empathy

among teams

TOUCH POINTS

JOURNEYS

BRAND PERCEPTIONS

TEAMS

PROCESSES

SYSTEMS

Experiences

Insights


ONE CUSTOMER’S JOURNEY

Customer interviews Perficient cross-functional disciplines

34Stakeholder work sessions

9 12

46Road map initiatives

1 8 20 +

Secondary research sources

+ +

Retail store visitsCXIQ Maturity

Assessment

++ +


NOTICE THE CUSTOMER ORIENTATION

Modernize the digital marketing platform

Reduced time to market

Reduced operational costs

Increased lead-to-sales

Tell the quality story convincingly and

consistently in all channels

Improved perception and advocacy

Integrate in-store and online experiences Reduced pre-sales duration

Reduced sales funnel drop-out

Increase brand effectiveness with

underrepresented segments

Increased revenue

Increased market share

Improve assets used to support

purchase decisions

Higher conversion rates

Increased average order size

Drive organic growth through

content optimization

Increased traffic

Increased engagement

Increased revenue

@NigelFenwick


Five Barriers To Digital MasteryFive: The Business Sees “IT” as a Barrier to Achieving Goals

› Sophisticated governance developed

to avoid failure

• Lacks agility

› Endless stream of customization

requests from Bus

• Creates technology quagmire

› BUs work around “IT”

• Bolt-on digital fails to integrate

• Problems scaling & maintaining critical

customer-facing apps

• Inability to fully leverage technology

@NigelFenwick


Five Barriers To Digital MasteryFive: The Business Sees “IT” as a Barrier to Achieving Goals

› Business partners vs. service provider

• Tech Mgmt is the business

• Measure on business outcomes &

customer metrics

• BU leaders agree to simplify generic

capabilities

• Create agile, flexible, scalable tech

portfolio – focus on BT

"When there are problems, they are business problems; when there are successes, they

are business successes" — and tech management is part of "the business.”

Discover Financial CIO

@NigelFenwick


Five Barriers To Digital MasteryWhat it Means

› CIOs need to work with BU leaders to:

• Gain clear understanding of customer

• Achieve a common digital vision and

business strategy

• Measure everything and everyone in terms

of customer impact

• Make customer data strategic – single view

• Prioritize Business Technology (BT)

• Create high-value experiences to deliver

outcomes

• Reshape the culture of tech management

to be business enablers and deliver

customer outcomes


WHAT OUR CLIENTS ARE DOING

Texas Hospital

Combined

CIO and CMO roles

Global Consumer Products Co.

Created a digital

transformation team

Tool Company

Named chief digital officer with a

focused team. Brought in the

business for planning sessions

Cedars-Sinai

Got in front of cloud to

approve key SaaS and

PaaS/IaaS vendors

Utility Company

Created a combined business

and IT team to improve their

digital experience

AAA Colorado

Marketing and IT

co-funded and supported their

digital transformation strategy


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