building the digital enterprise for the age of the customer handouts

Company confidential – Do not distribute without notice ©AE 2014 1

Prepare for the

Digital Enterprise

From business outcome driven

Enterprise architecture to the

corresponding technical reference architecture

01/10

Johan Merckx

Principal Consultant – Enterprise Architecture

ae nv/sa

Interleuvenlaan 27b, B-3001 Heverlee

T +32 16 39 30 60 - F +32 16 39 30 70

www.ae.be

Building the Digital Enterprise for the Age of the Customer

Johan Merckx, Enterprise Architect & Director Innovation, [email protected]

Your partner for digital transformation

mailto:[email protected]


Agenda

We live in the age of the customer

The executive challenge (Testaankoop case)

The outside in approach (Testaankoop case)

Where are we today? (Testaankoop case)


Digitalization

Enterprise

Personal

Web

Consumer

Information and technology is owned by big companies

Individuals create and process information themselves

Individuals and companies connect to exchange and share information

Needs of individuals can be fulfilled, anywhere, anytime and in a very personal way

Business MomentsBlurring of digital and physical worlds


Customer Experience

Enterprise Innovation

Digital customers Co-creation

Enterprises monopolize industries by mastering manufacturing, distribution networks and business information

Innovative companies deliver new customer experiences crossing traditional industry boundaries

Powerful digitally enabled customers with high expectations and access to information anywhere, anytime

Customers are becoming producers of information and services, co-creating with companies


We live in the age of the customerForrester 2014

“Why do companies fail? Because they are missing the future”

Larry Page, CEO Google

“If decision makers decide not tochange because it wouldcannibalize existing business, youcan be sure someone else will.”

Rudi Maelbrancke, Acerta

“Your next competitor might be a 27 year old with a hoodie.”

Peter Hinssen

The value created by technology has migrated out of the back office, into the front office, and straight into the hands of customers, citizens and employees.

Gartner, 2014

Geert Noels

“De internetgebruiker is nu een mondigegesprekspartner en niet de passieveinkomstenbron uit het tijdperk van web 1.0. Succesvolle ondernemingen keren zichbinnenstebuiten.”


Looking for a new career?


The secure Facebook of Healthcare


InvoiceOne, “When you have to be right”based on True Customer Experience


From paper to digitalFrom organisation centric to consumer centric


Agenda






Fact sheet

Members > 1.6 million

Employees > 1200

Active in 5 countries (BE, BR, ES, IT, PT)

Provides consumer services for electro, hightech, houses, energy, cars & bikes, money, health, food, family & private, complaints, ...


Strategy as Starting Point


“We need to change to a consumer centric business model.”


“We have to innovate our service model.”


“We have to exploit better our digital channel.”


How do I realize this in a pragmatic way?Balancing long term vision and short term results?

Balancing current value propositions/customer segmentsand new ones?

Work with business and IT executives to build the digital enterprise for the age of the customer!


Agenda






Take an OUTside in perspectiveStart from the consumer journeyIdentify high value business momentsDesign the customer experienceEngineer your digital customer engagement platform

Implement customer solutions & processesNail down your analytics results to optimize outcomes

The Outside In Approach



Start from the customer journey

Take an outside in perspective

Design the customer experience

Identify high value business moments

Implement customer solutions & processes

Nail down your analytics results to optimize outcomes

Engineer your digital engagement platform


Our Company

Processes

Applications

Technology

Info

rmatio

n

Vision & Strategy

‘Traditional’ Enterprise View


Market Ecosystem

Customers

Our Company

Partners

Take an Outside In Perspective

Tech

no

logy

Info

rmatio

n On Premise or in the

Cloud

Pro

cesse

s

value


Create Outside In Company Culture


Think and Act as a Customer

AE Blog @ blog.ae.be

http://blog.ae.be/

http://blog.ae.be/


Start from the Customer Journey

Customers

Our Company

Customer Journey

Customer Engagement

Needs, emotions, ethics, behavior

Friends, competitors, communities, social media, ...

Market Ecosystem

PartnersPartner Collaboration


Customer Journey Canvas


Identify High Value Business Moments

Customers

Our Company

Customer Journey

Customer Engagement

Market Ecosystem


Momentsof truth

Momentsof truth

Momentsof truth

(Digital) Services


Think Customer Value

Start looking for the job to be done

Think about pains & gains (pain=!gain)

Fill in the gaps in your product/service offering

Iterate & Improve!

Finding Value is a Team Effort!


Identify High Value Business Moments

Value for you

Extend to enhance

Just do it

Avoid for nowRedesign or reconsider

Value for the customer

Know when to play and when to pass!


Example High Value Service Matrix


Design the Customer Experience

Customers

Our Company

Customer Journey

Customer Engagement

Market Ecosystem


(Digital) Services

Momentsof truth


DesignIt’s not just what it looks like & feels

Design is how it works

Steve Jobs

“


Enjoyable

Easy

Meets Needs

Source: Outside In, The Power of putting customers at the center of your business, ISBN 987-0-547-91398-8

“I accomplished my goal.”

“I didn’t have to work hard.”

“I felt good about that.”

The Customer Experience Pyramid


The Design Process

Source: Double Diamond Design Process Model, Design Councel UK 2005

Research Analyze Ideate Prototype Test


Design Techniques


Engineer your (Digital) Engagement Platform

Customers

Our Company

Customer Journey

Customer Engagement

Market Ecosystem


(Digital) Services

Tech

no

logy

Info

rmatio

n

On Premise or in the

Cloud

Pro

cesse

s

Engagement Platform


Engineer Platforms

Think of your engagement architecture as a platform, a (virtual) place where customers and companies meet to exploit network effects for value creation

Companies expose their insides via well-defined and well-secured services

Customers interact via multiple channels and devices

Partners participate in the value chain by using your services and exposing their partner platforms

New functionality should be released on a day by day basis to engage with customers

Also things will be integrated more and more in your digital platforms


CX Requirements are Different

Intuitive, to support enjoyable customer experiences

Task-Oriented, based on what’s needed in the moment

Within customer’s context, personalised based on needs and behavior

Flex and scale to the spikes in demand of customer’s schedule and expectations


AE Reference Architecture (Logical View)



AE Reference Architecture (Logical View)

TaskOrientedCustomer Services



The 4-Tier Architecture

Yesterday: 3-Tier

Client Tier

Application Tier

Services Tier

Today: 4-Tier

Client Tier

Interaction Tier

Engagement Tier

Systems of Record Tier


AE Reference Architecture (Technical View)



Starting Point - Last Year


Step By Step Progress


As Is – September 2014


Bi-Modal Approach – Where Existing meets New

• Existing back-office applications

• Existing back-office operational data & databases

• Designed & build for employees

• Designed & build to support and optimize internal processes

• Focus on stability, robustness of functionality

• New ways of customer interaction

• New types of data to be captured, managed and analyzed

• Designed & build for the customer

• Designed and build to give the customer an optimal experience (intuitive, task oriented, within context, Flex & scale to customer’s schedule & expectations)

• Focus on agility, robustness and customer experience

Systems of Record Customer Engagement


Bi-Modal Approach

Source: Gartner Bimodal Approach 2014

Systems of Record Customer EngagementGoal Reliability Agility

Value Price for performance Revenue, brand, customer experience

Approach Waterfall, V-model, high-ceremony methods

Agile, Kanban, low-ceremony methods

Governance Plan-driven, approval-based Empirical, continuous, process-based

Sourcing Enterprise suppliers, long-term deals

Small, new vendors; short-term deals

Talent Good for conventional processes and projects

Good for new and uncertain projects

Culture IT-centric, removed from customer Business-centric, close to customer

Cycle times Long (months) Short (days, weeks)


Become Digitally Agile without Making a Mess

- Separate architectures- Separate teams- Separate business goals- Clear interfaces


Implement Customer Solutions & Processes

Customers

Our Company

Customer Journey

Customer Engagement

Market Ecosystem


(Digital) Services

Tech

no

logy

Info

rmatio

n

On Premise or in the

Cloud

Pro

cesse

s

Engagement Platform

CustomerSolutions & Processes


Mobile Solutions

Platform Components

Customer Engagement Team

Platform Partners

Digital Channel Contact

Center

Customers

Business Partners

Enterprise Architecture

Backoffice Integration

Multi-disciplinary teams, with digital competences


Data Capture

Instrument your solutions and platform to capture “who/what/when/where” data

Collect data on real business outcomes

Collect data on the customer experience

Not as an afterthought, but by design


Measuring

Value for you

Extend to enhance

Just do it

Avoid for now

Redesign or reconsiderValue for the

customer

Start to measure customer experience

Enjoyable

Easy

Meets Needs

Integrate with enterprise performance management


Engage data scientists for predictive analytics

Self Organizing Map Segments

Segments with targeted

customers

Data

Data Scientists Business Experts

+

Interactive Segmentation ACTIONABLE


Agenda






Where we are today?

Innovativedigital solutions

Consumer Centric Strategy

Initial Digital Architecture

CX & UX Awareness

Setup software factory

Top 10 journeys

Target (Digital) Consumer Engagement Architecture

CX as a strategicdiscipline

Work withthe consumer

First digital solutions

Cross channelsolutions

Journeys“always on”

Mixed teams

Measurement& analytics

TimeToMarketnew customer services

Customer Experience

Digitalization


NO

ESCAPE

Your partner for digital transformation


More info & registration

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Front-end engineering

Beyond User Interface

How businesses benefit from

applying this technical skill

26/11

Ralf Geenen

CTO

Register now for AE Foyer 5/5 !

http://www.ae.be/seminars/

building the digital enterprise for the age of the customer handouts

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