Maximize The Impact Of Digital Transformation Enhance User Experience To Deliver Business Opportunities

Transcription

1 A Forrester Consulting Thought Leadership Paper Commissioned By SAP January 2017 Maximize The Impact Of Digital Transformation Enhance User Experience To Deliver Business Opportunities

2 Table Of Contents Executive Summary... 1 User Experience Is The Moment Of Truth For Digital Transformation... 2 Successful Mobile Strategies Balance Operational And User Experience Drivers... 3 Challenges Emerge In Implementing A User Experience Strategy... 4 Mobile Strategies Empower Organizations And Drive Ease Of Use... 5 End Users Drive Transformation Initiatives... 7 Provide Contextually Relevant And Actionable Insights... 7 Key Recommendations... 9 Appendix A: Methodology Appendix B: Supplemental Material Appendix C: Demographics Appendix D: Endnotes ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. 2017, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to [1-1199D6W] Project Director: Sarah Brinks, Market Impact Consultant Contributing Research: Infrastructure & Operations Professionals research group

3 1 Executive Summary As mature enterprises undergo the crucial but daunting path of digital transformation, technology leaders and business executives must work together to ensure that business operations and user experience are not impaired and fully embrace all aspects of mobility as the face of their transformation strategy. Organizations that fail to embrace mobility in all of their facets risk being displaced in the market and face declining user experience scores. Mobility is a significant component of a firm s overall digital transformation strategy, which requires technology and business leaders to partner with each other and work in lockstep. Their shared goal should be identifying and uncovering transformative business opportunities and improving user experience. In August 2016, SAP commissioned Forrester Consulting to evaluate the impact of enterprise mobility and user experience on digital transformation. To further explore this trend, Forrester developed a hypothesis to test the assertion that mobility is critical to digital transformation among mature enterprises. To fully embrace mobile moments, companies must enhance key aspects of mobility such as user experience and cloud-based services. In conducting an in-depth survey with 250 technology decision-makers and influencers involved in enterprise mobility and digital transformation, in IT and line-of-business (LOB) roles in North America and EMEA, Forrester found that these companies are embracing mobile as the face of digital transformation and are learning how to balance their strategies to achieve optimal results. KEY FINDINGS Forrester s study yielded four key findings: Organizations are deploying multiple mobile initiatives as part of their digital transformation strategy. Digital transformation touches every aspect of an enterprise and can benefit multiple roles in the organization. As companies plan and implement these strategies, they are deploying applications across many roles and processes, ranging from sales to human resources to supply chains. Many firms are planning to implement these applications to address the needs of as many as five additional roles. Deploying applications to these varying roles requires a mobile strategy with planned timelines, flexible applications, and a user experience focus. Organizations are striving to find a balance between operational and user experience business drivers. Both operational and user experience business drivers are key to a successful digital transformation strategy. Organizations recognize the importance of balancing initiatives to meet user needs and expectations while also engaging in collaborative planning. An integrated operations and user experience strategy keeps costs down, improves process efficiency, and can lead to increased revenues. Organizations that are unified around improving user experience pursue a duel strategy from the beginning of the planning process to the final transformation target. Organizations face challenges to improving user experience. Implementing a user experience strategy as part of digital transformation must be planned with the user s perspective at the core, not as a series of bolt-on projects. Many organizations do not have a process in place to understand their users needs, making it difficult to identify and meet those needs. Development can be a challenging area for organizations as they struggle to find qualified developers with the right skillset and experience with mobile. A lack of alignment between business and IT teams can cause roadblocks as well as misalignment between stakeholders. Alignment among all parties involved in the digital transformation strategy means they are focused on delivering superior user experience in order to win, serve, and retain users. Organizations are addressing critical areas of their mobile strategy to improve user experience with the cloud. Cloud-based services help companies better support mobile access to their applications and data. Leveraging public and/or private cloud-based services improves data availability and information security, expands access to information for mobile information and field workers, and enables firms to build more mobile (smartphone and tablet) applications that improve user experience. Cloud-based services also enhance access via smart devices and increase security. Cloud platform tools and services are being selected strategically to best serve users needs and provide productive development environments for employees, and they can be used to support both developers and IT.

4 2 User Experience Is The Moment Of Truth For Digital Transformation Enterprise decision-makers agree that digital transformation has an impact on all aspects of business, and they believe mobile is the face of digital transformation. Companies must stay (at least) one step ahead of their customers digital transformation initiatives. 1 User experience is a vital component that must remain top of mind. Enterprises can reap many benefits by making a seamless and positive user experience a necessary component of their strategy. Our study results revealed the following: Mobile is the face of digital transformation; show it to users. Many organizations are currently implementing, expanding implementation, or upgrading their transformation initiatives. Those organizations have made mobile the face of their transformation strategy in order to improve user experience. In fact, 80% of respondents believe their entire organization is unified around addressing user experience initiatives. This alignment is essential to ensuring user experience stays top of mind during digital strategy development. Seamless integration of apps and platforms is essential for businesses and can only be achieved through an aligned approach. Digital transformation is changing more than the approach to user experience. Nearly 90% of respondents agreed that digital transformation is reinventing the overall experience they deliver to their users. It is also motivating them to reinvent the way their employees work and what their company does. Mobile reach affects a wide range of roles and applications. Firms design and deploy applications to serve multiple organizational roles. Results show that 61% of respondents are deploying applications to support three or more roles as part of their digital transformation strategy, and 25% of respondents are deploying applications to support five or more roles. In order for applications to effectively serve five or more roles, they must be agile and flexible as well as easy to use. Mobile applications that check all these boxes show the best face to users and can have an impact on user experience scores. Applications that serve asset management, supply chain, and manufacturing roles have been deployed for longer than applications serving sales, sustainability, and finance roles. Top application priorities for the coming year focus on addressing the needs of services, human resources, and procurement roles (see Figure 1). FIGURE 1 Digital Transformation Strategies Support Many Roles Following Carefully Planned Timelines Please indicate which type of applications you are deploying to support your digital transformation strategy. Plan to support threeplus roles with their digital transformation strategy Adopted and among our longest-used applications Adopted and among our newest applications Not yet adopted, but planning within one year 61% Asset management 29% Sales 48% Services 37% Supply chain 25% Sustainability Finance 42% 40% Human resources 33% Manufacturing 25% Marketing 36% Sourcing and procurement 29% Base: 109 technology decision-makers and influencers involved with enterprise mobility and digital transformation Source: A commissioned study conducted by Forrester Consulting on behalf of SAP, October 2016

5 3 Successful Mobile Strategies Balance Operational And User Experience Drivers Many important business drivers fuel the need for digital transformation, but successful organizations keep the big picture in mind. Balancing operational and user experience drivers while implementing a digital strategy provides a strong foundation for successfully addressing relevant mobile moments. Forrester defines a mobile moment as a point in time and space when someone pulls out a mobile device to get what they want in their immediate context. 2 Digital transformation initiatives are similar to a complicated machine with many moving parts. At the core of the machine are operations and user experience. If any element is out of sync, the whole machine could slow down or break. A successful mobile strategy requires: Operations and user experience drivers to work together to enable a superior transformation strategy. Operational business benefits cannot be ignored for the sake of user experience and, in turn, user experience cannot be abandoned for the sake of operational excellence. Using a dual operations and user experience strategy means key business outcomes such as improving process efficiency, lowering operational costs, and increasing revenue can be achieved (see Figure 2). For example, improving process efficiency can save users time, which can increase customer loyalty; loyal customers renew more often and spend more, which leads to increased revenue. This dual strategy requires a companywide agreement on key priorities and strategic planning. Successful digital transformation strategy implementation can also yield higher user and employee experience scores, improve top-line revenue, and generate new leads. Using mobile as the face of your digital transformation strategy. Nearly one-third of respondents sighted adding or improving mobile user experience as a top anticipated business benefit of their digital transformation strategy. Enterprises anticipate creating a dedicated user experience group, enabling simplified user support processes, and delivering dynamic, personalized content to users across digital FIGURE 2 Operational And User Experience Drivers Work In Tandem To Execute Digital Transformation Strategies Easier What are the business drivers behind implementing mobile as part of your firm s digital transformation strategy? Grow revenues 30% Improve user experience (end to end) 27% Improve lead generation 20% Digital transformation User experience Operations Enable communication and collaboration with colleagues and users 25% Improve process efficiency 37% Increase loyalty 24% Lower operational costs 34% Increase employee productivity 35% Improve employee experience 28% Enhance perception as an innovative company 28% Increase speed of decision making 31% Base: 250 technology decision-makers and influencers involved with enterprise mobility and digital transformation Source: A commissioned study conducted by Forrester Consulting on behalf of SAP, October 2016

6 4 channels. Creating a flawless, contextual, and consistent mobile service delivers benefits, including enhanced employee productivity, improved brand association within applications, improved productivity, and secured business processes. For example, a global coffee chain deployed a mobile application that allows the retailer to own its customers' mobile moments while they wait in line, sit and drink their beverage, and even use their mobile device to order. This mobile application allows customers to find the nearest store location, send a mobile gift to their friends, listen to a curated music playlist, and engage with a loyalty program. The flexible and customizable application is also available on wearable devices. 3 Incorporating mobile into the digital strategy to achieve technology benefits. Nearly 60% of respondents cited improved IT systems to support digital technologies as the top technology benefit of digital transformation. Organizations anticipate mobile experiences to be more flexible and agile while also being personalized and impactful to key areas of business. Less obvious benefits include creating more smart and digitally aware/connected products or services, improving product/service design and ease of use, and offering simple access to apps with a consumer-like user experience. Other technology benefits include saving users time, hassle, and risk. For example, that same global coffee chain achieved these benefits and met user needs by enabling customers to order and pay for their drinks in advance with a no-wait, in-store pickup process. 4 business and IT teams is a key challenge. Misalignment extends all the way to the stakeholders and their inability to agree on what needs to be built. A key reason why business and IT teams and stakeholders cannot align is due to a lack of properly defined processes to implementing a user experience strategy as part of digital transformation. Superior user experience can never be achieved unless clear planning, goals, and processes are defined. Experience development roadblocks to facilitating deployment. Developers must keep the user experience in mind while creating new applications. Misalignment at the development stage makes course correction even more difficult further down the line. A shortage of mobile developers means the burden of development falls on a few skilled shoulders, which can lead to employee fatigue. Equipping developers with the right skills may ease the burden on developers in the long term. Lack continuous measurement and feedback to optimize the user experience. Survey results show that 70% of enterprises do not use continuous feedback to optimize user experience. These firms are not taking full advantage of key user experience-centric processes that can improve user experience scores and loyalty, grow revenue, and increase alignment across the business. They are not able to leverage digital data sources and real-time analytics to optimize user experiences, and they cannot personalize experiences for each user in their moments of need. Challenges Emerge In Implementing A User Experience Strategy Enterprises face various challenges while implementing a user experience strategy as part of their digital transformation initiatives. Forty percent of survey respondents experience three or more challenges while implementing their user experience strategy. The top three challenges are: poor knowledge of user experience best practices within development (cited by 24% of respondents), difficulty in identifying or verifying end user needs (24%), and not enough mobile developers (23%) (see Figure 3). Our study found that organizations: Lack alignment and collaboration, which leads to an uneven user experience strategy. Twenty-two percent of respondents said that ineffective collaboration between

7 5 FIGURE 3 Design And Development Of Apps Should Not Be Limited To Developers What key challenges/obstacles are you facing when implementing your user experience strategy? Poor knowledge of user experience best practices within development Difficulty in identifying or verifying end user needs Not enough mobile developers Inability of existing development tools to scale mobile app development Developers have the wrong skillsets 13% 16% Base: 250 technology decision-makers and influencers involved with enterprise mobility and digital transformation Source: A commissioned study conducted by Forrester Consulting on behalf of SAP, October 2016 Mobile Strategies Empower Organizations And Drive Ease Of Use 24% 24% 23% Many components are necessary to deploy a successful mobile strategy. Timely, contextual, and comprehensive mobile strategies can empower employees and users, drive innovation, and provide secure and flexible applications. The study showed that mobile strategies need to: Leverage cloud for simplified deployment. Many enterprises are planning to better support mobile access and expand availability of user-centric applications in the cloud. Leveraging cloud access as part of a firm s mobile strategy can lead to improved user journey mapping. Forty percent of respondents currently use cloud based solutions to provide monitoring, metering, multitenancy, and rolling software update functions as part of their overall user experience strategy. This means a majority of organizations are not using cloud to their full potential. Cloud-based solutions allow for flexible, secure, and realtime data access to users and employees. Cloud-based solutions also allow big data analysis and postdevelopment maintenance and upgrades. Unlock potential by empowering users and employees. Enterprises can empower employees by expanding access to information and applications for mobile and field service workers. Employees who receive superior support from their employers are positioned to address user requirements by building applications with customizable user interfaces or creating a comprehensive multichannel strategy (including mobile, tablet, web, and face to face) to better serve users (see Figure 4). Users are savvy enough to know when their expectations are not being met, and they will seek out services to match those expectations. For example, a US-based jewelry retailer launched its mobile app in 2012 to combat long in-store waits that frustrated both customers and employees. The application allows customers to search for products by style and type as well as find a retail location. The application also helps the retailer optimize the inventory management process. By using in-store data and online analytics, the company can streamline the app and simplify interactions to help employees remain customer obsessed and improve user experience. 5 Enable easy-to-use mobile applications. Creating mobile applications that are flexible and easy to use leads to better user experiences. To do this, firms are rationalizing or rearchitecting traditional applications to better support mobile apps, creating a set of APIs that allow mobile developers to easily access data in business applications, and implementing a comprehensive application management solution that includes bring your own device (BYOD). These mobility initiatives enable firms to enhance employee communication channels, increase productivity, and provide workers with the flexibility to remotely access corporate information from their personal devices. 6 Showcase your organization as a technology leader. Changes can be as intricate as re-engineering business processes to better support mobile-based applications; rolling out new mobile-based products and/or services, including wearables; or expanding mobile commerce initiatives or smart products/machine-to-machine (M2M) technologies, AKA the internet of things (IoT). But these changes cannot be made in a silo. Creating a fluid overall user experience using IoT solutions requires a combination of employee skills and capabilities that are dispersed across many different roles in the organization, including experts in network connectivity, software development, user experience, and partner management. 7

8 6 FIGURE 4 Use Mobile To Empower Employees And Create Top-Tier Applications Rate how important each of these components of your mobile strategy are to improving user experience. Empowered employees and users Expand access to information and applications for mobile information workers Improve security of information/data available to employees through mobile devices Expand access to information and applications for field service workers Create a comprehensive multichannel strategy (mobile, tablet, web, face to face) to better serve our users Build applications with customizable interfaces to ensure end user efficiency Applications Build more mobile (smartphone and tablet) applications Implement a comprehensive application management solution that includes BYOD Create a set of APIs that allow mobile developers to easily access data in business applications Expand and improve user-centric applications in the cloud Rationalize/re-architect our traditional applications to better support mobile apps Leverage more cloud-based services to better support mobile access Base: 250 technology decision-makers and influencers involved with enterprise mobility and digital transformation Source: A commissioned study conducted by Forrester Consulting on behalf of SAP, October 2016

9 7 End Users Drive Transformation Initiatives Users are in the driver s seat as enterprises plan and implement their digital transformation strategies. These strategies require internal alignment between teams and a balance between operational needs and end user experience. Enterprises must incorporate digital experience into their comprehensive strategy based on the user s perspective and not as a series of bolt-on projects. This approach enables firms to enhance users experience as well as gain deeper insights into their needs and preferences. The study confirms that: User experience tools help identify opportunities to use digital solutions. Survey results show that 40% of respondents use tools including design thinking, user journey maps, and touchpoint analysis to examine the entire user experience process. The next step in the process is to optimize this practice through continuous measurement and feedback across the business, but less than a third of respondents said they are doing this. Measurement and feedback are needed to provide a complete view of user journeys, needs, and potential gaps. Organizations should design products and services with the user in mind. Fully embracing a user experience strategy as part of your digital transformation process requires you to think like your clients. Developers, marketers, and architects must approach product design from the user s perspective and design digital extensions to products in order to create new value for users. Forty-two percent of respondents said their company s business strategy is focused on creating a world-class experience for their users. Such strategies include creating fully customizable experiences, leveraging cloud-based services, and leveraging digital data sources and analytics. as improve the customer experience. 8 The study showed that when it comes to real-time data and analytics: Few firms use the full benefits of real-time data and analytics. Less than a third of companies use real-time analytics and context awareness to customize individual experience and help users feel more valued. Less than a quarter of companies are creating fully customizable mobile experiences for their users, despite over three quarters (77%) of respondents stating that customized application interfaces are one of the top five most important components of their mobile strategy to improve user experience. Methods to incorporate measurement into user experience practices include using analytics combined with contextual awareness to customize the individual s experience and help users feel more valued. Analytics insight helps balance user experience and operations requirements. Operational benefits from real-time data and analytics include streamlining decisionmaking processes, improving business processes, managing inventory/orders, and allowing more time and budget to be allocated to innovation and user experience. Using the operational benefits of real-time data and analytics positions your enterprise to maximize the benefits of a digital transformation strategy. User experience can improve by using real-time data for user journey mapping, creating contextually relevant and actionable insights for users, and delivering data in real time (see Figure 5). Provide Contextually Relevant And Actionable Insights Delivering real-time data and creating contextually relevant and actionable user insights can improve user journey mapping and understanding. Connected customers expect contextual, relevant experiences. Customer data and analytics help personalize marketing, to enhance product development, merchandising, and customer service, as well

10 8 FIGURE 5 Real-Time Data And Analytics Help Balance User Experience And Operational Drivers Please indicate how important the following motivators are to incorporating real-time data and analytics into your mobile digital transformation strateg y. Nice to have Important requirement Critical requirement Do user journey mapping 24% 43% 25% Streamline decision-making process 21% 43% 35% Create contextually relevant and actionable insights for users 21% 52% 24% Deliver real-time data to users 18% 52% 28% Manage inventory and/or order 17% 52% 24% Improve business processes 13% 39% 44% Base: 246 technology decision-makers and influencers involved with enterprise mobility and digital transformation Source: A commissioned study conducted by Forrester Consulting on behalf of SAP, October 2016

11 9 Key Recommendations Enterprises must show their best face to their customers by building a successful digital transformation strategy that drives innovation and exceeds user expectations. Forrester s in-depth surveys with technology decision-makers and influencers involved with enterprise mobility and digital transformation yielded several important observations: Create a digital transformation strategy that uses mobile first to support and enable multiple employee roles. Firms design and deploy applications to serve multiple organizational roles that have varying needs. Deploy applications to support a wide variety of organizational roles, and take a mobile-first approach where appropriate. Priority roles should include asset management, supply chain, manufacturing, sales, and finance. Make sure user experience does not take a back seat to operations. Focusing on user experience as part of digital transformation provides myriad benefits, including cost savings and more satisfied users. Companies that balance operations and user experience requirements across all teams will reap the benefits of a strong digital transformation strategy, including increased user loyalty, lower operational costs, and revenue growth. Continuously improve to align with your firm s priorities and plan for the future. Keep user requirements and experience at the center of your strategy. Stay on top of continually changing mobile trends as they evolve beyond smartphones and tablets to include wearables and IoT solutions. This may also include evaluating how contextual applications and technologies will have an impact on the user s experience. Use real-time data and analytics to not only meet current users needs but also plan for future needs. Continuous feedback and measurement can drive development of new, innovative applications that save users time, are contextually relevant, and differentiate you from the competition.

12 10 Appendix A: Methodology In this study, Forrester conducted an online survey of 250 technology decision-makers and influencers involved with enterprise mobility and digital transformation organizations in North America, the United Kingdom, France, and Germany to evaluate user experience as part of digital transformation mobile strategies. Survey participants included decision-makers in C-level executive, VP, director, and manager roles. Questions provided to the participants asked to discuss their plans around digital transformation as it pertains to mobile and user experience. The study began in September 2016 and was completed in October Appendix B: Supplemental Material RELATED FORRESTER RESEARCH Create Your Digital Experience Delivery Strategy, Forrester Research, Inc., July 2, 2014 Seven Steps To Create And Sustain A Customer-Centric Culture, Forrester Research, Inc., October 6, 2016 Re-Engineer Your Business For Mobile Moments, Forrester Research, Inc., January 24, 2014 Improve Skills And Staffing For A Better Employee Tech Experience, Forrester Research, Inc., April 4, 2016 Ten Ways Technology Will Drive Workforce Success In 2015, Forrester Research, Inc., November 5, 2014 Appendix C: Demographics In this study, we surveyed 250 technology decision-makers and influencers involved with enterprise mobility and digital transformation. Respondents were from the following regions: North America: 40%. UK: 20%. Europe: 40%. They also had the following roles and worked in the following departments: Manager: 33%. Director: 32%. Vice president: 12%. C-level executives: 23%. IT: 86%. Operations: 6%. Sales: 5%. Marketing: 2%. HR: 1%.

13 11 Appendix D: Endnotes 1 Source: How To Unlock Tech Industry Digital Transformation, Forrester Research, Inc., August 26, Source: Winning In The Age Of The Customer, Forrester Research, Inc., April 6, Source: Ted Schadler, Josh Bernoff, and Julie Ask, The Mobile Mind Shift. Groundswell Press, Source: Ted Schadler, Josh Bernoff, and Julie Ask, The Mobile Mind Shift. Groundswell Press, Source: Ted Schadler, Josh Bernoff, and Julie Ask, The Mobile Mind Shift. Groundswell Press, Source: Evolve Your Customer Analytics Capability, Forrester Research, Inc., January 14, Source: Prepare I&O for the Internet of Things, Forrester Research, Inc., April 11, Source: Building The Business Case For A Bring-Your-Own-Device (BYOD) Program, Forrester Research, Inc., December 4, 2014.