Digital ImpactFrom Systems of Record

to Systems of Engagement

DigitalNow!April 26, 2012

Technology MegatrendsDecades of Disruption to Business as Usual

• 1980s• Personal Computing, Office Automation• B2E - documents, presentations, financial analysis

• 1990s• Internet, ERP, Worldwide Web• B2B – outsourcing, globalization, business networks

• 2000s• Broadband, Mobile, Social Media• B2C – media & entertainment, communication, branding

• 2010s• Digital commerce, Collaborative Systems• B2B2C – advertising, retail, customer service

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Two Types of Business Network

• High complexity• Relationship oriented• Outgrowth of project teams• Organize around an

orchestrator• Focus: expertise, innovation,

and market development

CoordinatedNetworks

CollaborativeNetworks

CO

Disney Films Disney Theme Parks

• High volume• Transaction oriented• Outgrowth of value chains• Organize around a

concentrator• Focus: efficiency, speed,

and adaptability

YOU

Two Types of IT Leverage

• High complexity• Relationship oriented• Outgrowth of project teams• Organize around an

orchestrator• Focus: expertise, innovation,

and market development

CoordinatedNetworks

CollaborativeNetworks

CO

SYSTEMS OFENGAGEMENT

SYSTEMS OFRECORD

• High volume• Transaction oriented• Outgrowth of value chains• Organize around a

concentrator• Focus: efficiency, speed,

and adaptability

FamiliarIdea

NewIdea

YOU

Systems of RecordThe Story of Enterprise IT in the 20th Century• Transaction systems for global commerce . . .

• Financials, Order Processing, Inventory, HR, CRM, Supply Chain • Mainframes, minis, client-server, PC, Internet-enabled, SaaS

• Drove three decades of investment• Databases are at the center of these systems• OLTP and Business Intelligence have been the key drivers• Network is seen primarily as a transport mechanism

• Y2K put the capstone on this trend• Pulled forward a half decade of investment• Enterprise IT has had to go through a long “digestive” period• Focus in past decade has been on efficiency investments

IT Innovation: 2000 to 2010

Enterprise ITOn a Diet

Consumer ITOn Fire

Redefining IT for ConsumersThe Digitization of Human Culture

• Access• Infinite content, no barriers to entry, no barriers to exit• Communications are globally democratized• Microsoft, Google, Facebook, Wikipedia, OpenTable

• Broadband• Pictures, video, shopping• Internet touches both the mind and the heart• Skype, iTunes, YouTube, Hulu, Netflix, Zappos

• Mobile• PC for the emerging markets• iPhone and iPad set the bar in mature markets• IM, email, camera, game, wallet, magazine. . . even a phone!

How will this impact enterprise IT?

B-2-B “Enterprization” of Consumer IT:Investing in Collaborative Systems of Engagement• Collaboration burden falls on the middle of the organization

• Not front-line workers engaged in transactional workflows• Not top executives engaged in strategic issues

• Need to invest in “IT for the middle tier”• In-the-moment empowerment through Systems of Engagement• On-demand access to Systems of Record as required

• Systems of Engagement must meet four key design goals: • Mobile to be in the moment• Social to share facts and insights with others• Ad Hoc because that’s how issues emerge• Real Time because that’s when issues get resolved

Enterprise Systems of EngagementCommunication & Collaboration

• Enterprise Facebook

• Enterprise YouTube

• Enterprise Search

• Enterprise App Store

• Enterprise Twitter

• On demand conferencing

• Global presence detection

• Mobile access to everything

• Social content management

• With more revolutionaryapplications to come . . . .

Who knows the head of BD

at IBM?

How much did we spend on

this last year?

Let’s keep the buzz going!

I need to talk to Sherry—

where is she?

What is the sentiment on

this in our community?

Can you help me promote this in my community?

Let’s make sure everyone registers

for this in the same way!

We need all hands on deck,

right now!

Let’s look at the data and get Larry to

walk us thru it

This is the “enterprise-ation”of consumer IT

Technology DisruptionsWhen Will Your Organization Make the Transition?

10

Innov

ators

Early

Adopt

ers

(Visi

onari

es)

Early

Majorit

y

(Pra

gmati

sts)

Late

Majorit

y

(Con

serva

tives

)

Lagg

ards

CHASM

EARLYMARKET

TORNADO

BOWLINGALLEY

MAINSTREET

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ENLISTMENT ACQUISITION

ENGAGEMENTMONETIZATION

StarterMotor

Adoption DynamicsHow Will the Transition Unfold?

PerformanceGear

PerformanceGear

PowerGear

PowerGear

How many?How soon?

How often?How much?

Virality?Churn?

What ROI?What IRR?

Focusing to Accelerate AdoptionWhere Should the Transformation Start?

• Every customer-facing strategy is made or broken during a handful of moments of engagement—what are yours?

• What person or system represents you in these moments, and how effective are you at meeting the new expectations?

• Where could you introduce systems-of-engagement capabilities to amplify your organization’s power at these specific moments?

Use these questions to target your first project on a moment that matters

Final Takeaway: A To-Do ListHow Could I Go About Putting This into Effect?1. Review your strategy and identify your top-priority moments of

engagement.2. Determine what systems of engagement would have the biggest

impact on your effectiveness in these moments3. Assess your organization’s Technology Adoption style and

calibrate your ambitions accordingly4. Identify your early adopters and recruit them to this effort5. Engage with outside help to design and prototype your first

systems of engagement effort6. Focus on user experience as your critical acceptance criterion7. Use anecdotal feedback from early adopters to create the case

for crossing the chasm to widespread pragmatist adoption8. Focus the pragmatist investment case on a critical pain point, and

do whatever it takes to put that issue to bed

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gmoore@geoffreyamoore.com

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