Overcoming 5 Barriers to Digital Transformation

Overcoming 5 Barriers to Digital
Transformation Success
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#PerficientDigital

2#PerficientDigital
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.

3#PerficientDigital
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

4#PerficientDigital
PRESENTERS
Nigel Fenwick
Vice President, Principal Analyst
Forrester Research
Blog: http://bit.ly/nigelblog
@NigelFenwick
Michael Porter
Managing Principal
Perficient
Michael.Porter@perficient.com
@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

7#PerficientDigital
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
Two: 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

10#PerficientDigital
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

DISTRIBUTION COMPANY EXAMPLE
Our
Client
New
Entrant
Old
Competitor
Source: Forrester Research, 2015
Leveraged
investment from
other business
Invested in
mobile and
integration

@NigelFenwick
Four: 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
Four: 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
34
Stakeholder work sessions
9 12
46
Road 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: 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: 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
What 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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Overcoming 5 Barriers to Digital Transformation

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