vital trends in digital experience and transformation in 2016 | dreamforce 2016 by dion hinchcliffe

Vital Trends in Digital Experience and Transformation in 2016

Dion HinchcliffeChief Strategy Officer7Summits, Inc.

dion.hinchcliffe@7summitsinc.com@dhinchcliffe

WHAT’S NEXT IN EMERGING BUSINESS + TECH. WHAT IT MEANS TO THE ENTERPRISE.

Dion HinchcliffeChief Strategy Officer, 7SummitsZDNet Contributor@dhinchcliffe

What’s Next in Emerging Tech?For Which Your Organization Must Begin Planning and Preparing in 2016

(cc) Some Rights Reserved. 2016, 7Summits Inc. by @dhinchcliffe

We’ll look at today:• Key emerging technologies that

organizations should be considering• With an emphasis on digital/social

engagement• Why these these technologies and

trends are important to evaluate• What are the key takeaways, actions,

and preparatory tasks?

But must prepare more effectively for a fast arriving digital futureOrganizations continue to grapple with digital fundamentals

Emerging Technology Rate of Change At All Time HighGrowth of Technology and Human Success: Hand in Hand

Technology Growing and Change Fastest in History Which Overall Has Been Very Good for Us

Human Population over Time

And Our Organizations Must Face Emerging Tech to Survive

Primary Cause of Failure: Lack of Tech Adaptation

More Change in Work, Business, & Tech in the Next Ten YearsThan the Last 40 Combined

Insight: Linear Thinking DoesNot Prepare us for Exponential Times

Understanding Exponential Tech Change Helps Us PrepareEnabling Us to Anticipate the Nearly Unlimited Value Potential

1 2Insight: The Value of Digital is Driven by Power Laws That Pay Off Big Downstream

But Our Organizations Only Change Linearly, or Logarithmically at Best

The Payoff of Power Laws (Like Moore’s Law) Over Time

Yet Each Generation Keeps Coming on Faster Than the LastExhausting our Traditional Approach to Technology Enablement

What Tech Should Most Organizations Be Focusing on Today?

And the next generation of technology is very different than today’s.

Forcing us to:• Learn all new platforms and technologies• Think about even more novel new ways to engage• Tap into very different forms of value creation• Find new ways to adapt to digital change more

sustainably

Technology is Reshaping Expectations + Enabling New Possibilities

New Platforms and Technologies that Orgs are Still Largely Unfamiliar With

mobile/social payment platforms

We Must Create and Unleash Value Creation in Exponential TimesKey properties of digital business• Decentralized• Network-centric• Asynchronous• Scalable• Emergent• Connected• Continuous• Sustainable

Digital Transformation must go Hand-in-Hand with Human Transformation

Co-Evolution

Insight for 2016: Leaders are often the biggest obstacles to digital transformation, with boards least prepared.

Top Priorities in Digital Transformation in 2016

Source: Altimeter

So What’s Coming Next in Digital Experience in 2016 and Beyond?

WearablesKey Events• Apple Watch + Fitbit• Watch OS 3• Hitachi Business Microscope• 2016 saw steady but slower

than expected growth

Why to Prioritize• Always on the person of key

stakeholders • More opportunities to engage• Essential vector in

omnichannel CX• Healthcare use cases

digital tech

Digital Assistants and Bots Key Events• Watson• Siri and Alexa• The Chatbot Revolution

Why to Prioritize• Frictionless UIs• Work shifts from DIY to

do-it-for-you• More productivity• High leverage use

digital tech

(100+)

Digital Engagement Becoming ConversationalFrom - There’s an App for thatTo - There’s a Bot for that

Text/Voice + Natural Language Processing + Agent-Based AI

Less Friction, Much Higher Leverage

Bots Outpacing Apps on Facebook

Brain/Machine Interfaces Key Events• Technology working in

the lab• Cost point dropping to

mass market level in 36 months

Why to Prioritize• Immersive new UX• More productivity• Powerful new types of

applications• Path to 4th Platform

digital tech

Virtual and Mixed Reality Platforms Key Events• Oculus Rift & Magic Leap• Google Cardboard• Apps• Low cost

Why to Prioritize• Path to mind/machine

interfaces• Enable unique applications

not otherwise possible• New modes of

communication and collaboration

digital tech

Microframeworks + Containers Key Events• Critical mass of new

microframeworks and container offerings like Docker

• Need for much faster digital solutions

• Enables stunningly fast digital development + run time ops

Why to Prioritize• Digital transformation

accelerator• Enable rapid digital

experiments: Better hackathons

• 64% plan to mainstream container use within a year.

digital tech

Machine Learning and Artificial IntelligenceWill Automate Most Work Over Time

By 2020, $1000 will buy computing power equal to 1 human

In the Next Decade AI Goes from Almost Nothing to $12B industry

Low Code PlatformsKey Events• First mass market low code

models arrive• Quickbase, Zapier,

IFTTT, Hooks, Mendix• Nearly everything has an

API now• There’s now a Gartner Magic

Quadrant for Low Code

Why to Prioritize• Enables citizen developer• Shortest path to digital value• Tool for grassroots digital

transformationdigital tech

Robotic Process Automation Key Events• Effective new solutions• Improvements to machine

learning algorithms• Rapid industry growth in

Why to Prioritize• Next avenue of

automation of mid-level tasks

• Accuracy and speed• Lower cost• Less workforce

digital tech

Applied Machine LearningKey Events• Maturity of open source and

commercial offerings• Weka, Mahout, DeepLearning4J,

dozens of others• Increasingly impressive real-world

examples• Roboadvisors• Clinical advisors

• Rapid expansion into verticals like healthcare

Why to Prioritize• Unleashes innovation and

opportunity capacity• Scalable new resource for analytics

and business insight• Competitive advantage: Make

decisions based on all data faster than competitors

digital tech

The Blockchain Key Events• Proof of effectiveness in Bitcoin

• $10B market cap• A reliable way to do financial

transactions with no central authority

• Experimentation and adoption by many in the traditional financial services continues in 2016

Why to Prioritize• New form of distributed open

record keeping• Creates transparency and trust in

digital ecosystems• Is being used by many new

digital competitors as proof of life

digital tech

Blockchain Global Interest Over Time

Future Skilling

digital human

Key Events• Increasing digital skill gaps in the

workforce• Need to position for faster digital

change• Need to get ahead of workforce

learning• Often using learning

communities

Why to Prioritize• Ability to reskill workforce for

digital change• Seize opportunities better and

faster• Increase and sustain employee

engagement• Better results and productivity

Citizen Developer

digital human

Key Events• Increased rate of new apps

and tech• Growing backlogs in the

traditional IT department• Rise of new Low Code

platforms• Growth of the industry

continued strongly in 2016

Why to Prioritize• Solve more business problems

with local experience• Faster application development• Better fit to business needs• Improved scale of digital

transformation

Work Hacking

digital human

Key Events• Proliferation of complexity,

technology, rules, and regulations• Simple user-led techniques that

can be used to get things done better fast

• 2016 has seen the hacking of work meme at an all time high

Why to Prioritize• Empowering of workers to fix

what’s ‘broken’• Easily tapped pool of innovation• Improved employee engagement• A way to speed up digital

transformation on the business side

Beyond DevOps: Adding Innovation + Security

Continuos Innovation

Continuos Security

Key Events• DevOps has proven a

success, with more than half of all orgs using it 2015

• But it’s not yet a complete enough model

• In 2016 security finally becoming a devops priority, but innovation programs falling behind

Why to Prioritize• Ensures security, the top issue

of the digital era, is baked into all tech enablement

• Ensures innovation efforts are directly and continuously connected to the tech development effort

digital human

All Digital Development Activities in a Single Stack

Digital Management Models Key Events• Traditional industry age

management not up to task of managing in flatter, faster, networked digital era

• New models emerging and experimented — and enabled by collaborative tech and communities— by thousands of organizations

• Some retrenching in 2016 but new experiments as well

Why to Prioritize• Adopt faster, more effective

forms of management• Enable productivity, efficiency,

innovation, and faster action against opportunities

digital human

SocBizOps: Sustained functional engagement

social human

Key Events• Social media fragmentation makes

acting on social data and events disconnected to key business functions

• Push to close the gap between events and action to create continuous engagement

• Happening in community management teams

• 2016 is seeing growth most in top of the funnel operations (integrated demand gen/marketing/sales) and employee advocacy

Why to Prioritize• Better connect stakeholder

engagement with company operations

• Produce faster and sustained results in customer care, marketing, sales, operations, and innovation

Holistic Social Business Key Events• Aging pre-networked

processes not working well in many organizations

• Large orgs seeking more collaborative, open, and decentralized processes

Why to Prioritize• The usual KPI benefits• More sustainable change

processes• Better tech adaptation

and route to digital transformation

• 280,000 employees

• 25 top level use cases

• Redesigned core business processes for social

social human

Holistic Social Business Continued

Using Online Community At the Center of Work

Social HR and Sales

Key Events• HR seeking to adapt and

provide value in new operation environment

• Social professional networks now top source of quality hires

• Sales processes move to social channels in most orgs

Why to Prioritize• Better talent and resource

management• Especially recruiting

• Ability to meet customers and employees in the channels they use the most

social human

Source: LinkedIn, 2016

Swarm WorkingKey Events• Rise of crowd everything in the wild• Lack of equivalent capabilities in

the enterprise• Tools emerging in the enterprise to

make swarm/crowd working possible

• Office365 Groups• Continued growth of platforms like

uTest in 2016• 200,000 members who can

swarm• Online community customer care

service service grew rapidly in 2016

Why to Prioritize• Faster activation on key business

challenges• More effective resolution of

exception scenarios and high priority business events

social human

Social Performance Management

Key Events• The emerging of tools to

better monitor and guide our stakeholders

• Growing number of orgs using process improvement using social business tools

Why to Prioritize• More comprehensive and

guided approach to ensuring performance results using network engagement

• Shortest route to optimization and value creation

social human

AI-Based Social Analytics

social tech

Autonomous Pure Digital Knowledge Workers Will Alter Work ForeverLeading to New Economic Models and Untold Value Creation

Menial Labor

Artisanal Work

Rote Service Tasks

Knowledge Work

Autonomous Intelligence

Unknown New Forms of AI+ Human Work

Routine Mental TasksIf the robots arriveto do this work…

…then workersmust move up

the stack

Open Question: Can Most

Workers Make This Transition?

singularity leveragewhat’s next

work began here

The Labor Stack

Everything Is Literally About to Become ConnectedAll the objects in our life will be digital manageable and controllable

1 Everything gives off streams of data 24/7

Allowing us to truly manage our business and lives for the first time, if we can manage the data

Omnichannel Digital Experience the New Imperative (and a Treadmill)Yet the single most important value creator for companies

New Trend and Force Multiplier: Digital Ownership Experiences

Dis$nct(Points(of(Digital(Engagement!!  Sea!Ray!News/Announcements:!more%efficient%communica-ons%

!  Ownership!registra9on:!be0er%insight%to%secondary%markets%

!  Resources/Support:!!Streamlined%access%to%manuals,%peer:to:peer%Q&A%

!  Events:!%Increased%awareness%and%par-cipa-on%

!  Affinity/Ambassador!Ac9va9on:!!Enhanced%ownership%experience%

!  Promo9ons:!!Increased%awareness/u-liza-on%of%boat%ownership%benefits%

!  Anywhere/Any9me!Access:!%Desktop%and%mobile%%Bo3om(Line(Benefits%!  Opera9onal!Efficiencies:!!$1.0MM%savings%through%re-rement%of%more%expensive,%

hard%to%maintain%programs%and%plaMorms%

!  Revenue!Improvements:!!Parts/Accessories%as%well%as%new%boat%Leads%

!  Support!Experience:!!Customer%service%experience%improved%while%reducing%costs%through%deflected%calls%to%self%serve%channels!

Overview:!!Transforming%the%Boat%Ownership%experience%to%improve%the%customer%experience%while%driving%increased%Revenues%and%Opera-onal%Efficiencies%%Solu9on:!!A%community%that%brings%boat%owners,%dealers%and%Sea%Ray%together%–%enabling%“a%life%well:lived%on%the%water”!

Transportation Becomes Almost Entirely DigitalChanging how we travel and business logistics forever

134% CAGR

The Maturation of Powerful New Forms of AnalyticsGoing from Measuring the Past to Optimizing the Future

The Digital Workplace Is Going to Be a Very Different PlaceVirtual, Robot Supported, Data-Driven, Borderless, and Self-Organizing

Community Management as a Service Key Events• Orgs discovering a

paucity of community management resources

• Rise of social media and community in many business functions

Why to Prioritize• A cost-effective way to

ramp up vital resources to make digital engagement successful

• Faster way to increase capabilities for managed digital engagement

social tech

Social Integration between Apps, Silos, Community Key Events• Too many collaboration and

communication tools in our orgs now

• Apps like Slack that bring them all together

• 2016 continued to see this trend expand and grow into a contextual digital workplace

Why to Prioritize• Get ahead of and manage

digital channel fragmentation• Deliberately design a

collaborative and community architecture instead of ‘letting it happen to you’

social tech

Notable Vertical Dimension: Higher Education

Adaptive Learning Student/AlumniCommunities

Learning Spaces

Notable Vertical Dimension: Healthcare

Wellness Tracking Collaborative EMRs Healthcare Communities

• CureTogether • PatientsLikeMe

Notable Vertical Dimension: Financial Services

Adapted Blockchain Digital Advisors Partner Networks

Networks of Excellence + #changeagents

digital human

Key Events• Limits being hit on Centers of

Excellence for new technology• Urgent need for digital

transformation

Why to Prioritize• To better enable digital

leadership bottom up and top down

• Scales better, more cost effective, and more sustainable than old CoE model

• Emerging naturally from many existing CoEs, so better to go right to the desired outcome

What Does it Look Like When It’s Done? An Ecosystem

The Model for Digital Transformation Is Inclusive and Digitally-Enabled

Increasingly, Digital Platforms Such as Community Are the Vehicle for Digital Transformation

New Models for Tech Change, Adoption, and AdaptationNew Modes (Bi-Modal IT, Tri-Modal IT) Networked Models for IT

TriModal IT and Beyond Key Events• Bimodal not sufficient for larger

and/or more complex projects and organizations

• Evidence that tri-modal and n-modal IT matches right rate of change to right model

Why to Prioritize• Better way to adopt new digital

technology• More realistic model to match

different types of IT and innovation to models that better support them

• Get rid of one sized fits all tech adoption that holds progress back

digital human

Let’s Learn to Continuously Design Our Futures Together in Scale

Q&AFor slides:dion.hinchcliffe@7summitsinc.com @dhinchcliffe

For a strategic online community:http://7summitsinc.com

vital trends in digital experience and transformation in 2016 | dreamforce 2016 by dion hinchcliffe

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