DIGITAL TRANSFORMATION IN 2015: Laying the Groundwork for Success

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PERFICIENT PROFILEFounded in 1997

Public, NASDAQ: PRFT

2014 projected revenue ~$454 million

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston,

Charlotte, Chicago, Cincinnati, Columbus,

Dallas, Denver, Detroit, Fairfax, Houston,

Indianapolis, Lafayette, Milwaukee,

Minneapolis, New York City, Northern

California, Oxford (UK), Philadelphia,

Southern California, St. Louis, Toronto,

Washington, D.C.

Global delivery centers in China and India

>2,600 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology

vendors

Multiple vendor/industry technology and

growth awards

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ABOUT PERFICIENT

Perficient is a leading information

technology consulting firm serving

clients throughout North America.

We help clients implement business-driven technology

solutions that integrate business processes, improve

worker productivity, increase customer loyalty and create

a more agile enterprise to better respond to new

business opportunities.

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OUR SOLUTIONS PORTFOLIO

INDUSTRIES Healthcare

Financial Services

Life Sciences

Retail & Consumer Goods

Automotive & Transportation

High Tech

Telecom

Energy & Utilities

Manufacturing

Media & Entertainment

PORTALPortal Frameworks

SearchSecurityWeb AnalyticsWeb Content Management

Social & CollaborationMobilityExperience Design

INTEGRATIONIntegration Frameworks

Cloud ArchitectureReference Architecture

Application IntegrationEnterprise Application IntegrationService Oriented Architecture

Process & Content IntegrationBusiness Process ManagementComplex Event ProcessingRules Engines

DATA & CONTENTBusiness Analytics

Business IntelligencePredictive AnalyticsReporting

Structured Data ManagementData Integration, Quality & GovernanceEnterprise Data WarehouseMaster Data ManagementProduct & Information Management

Unstructured Data ManagementBig DataContent IntelligenceContent Management

Enterprise Search

CUSTOMER EXPERIENCECustomer 360

Multi Channel EnablementRelationship ManagementSocial Engagement

CommerceMarketing Strategy ImplementationOrder ManagementSupply Chain ManagementService & SupportManaged Hosting

Sales & Service SupportCustomer Service, Sales Force Automation

Experience DesignStrategic Roadmaps & Envision Workshops User Research & Metrics AnalysisCreative & Interaction DesignCustom & Responsive UI Development

Digital MarketingSearch Engine MarketingOnline AdvertisingContent StrategyConversion Optimization

Management ConsultingBUSINESS OPERATIONSCorporate Performance Management

Budgeting, Forecasting & PlanningBusiness Analysis & Predictive Analytics

Enterprise Business SolutionsOracle EBSVertex Tax Solutions

Human Resource SolutionsEmployee Portals Human Resource ManagementTalent Management

Enterprise Social PlatformsSocial StrategyLync Unified CommunicationsOffice 365

Management Consulting

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PRESENTERS

Michael Porter, Perficient

Managing Principal

Strategic Advisors Team

Twitter: @porteronportals

Neetu Shaw, Perficient

Principal, Enterprise

Information Solutions

Strategic Advisors Team

Eric Roch, Perficient

Principal, IT Modernization

Strategic Advisors Team

Twitter: @eroch2

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“Digitalization and the digital business

are catalysts of change that are

affecting the human-machine

relationship and driving better

customer outcomes.”

– Gartner

https://www.gartner.com/doc/2864817/top--strategic-predictions-digital

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THE CHALLENGE

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Rising Consumer

Expectations

Amazon, Zappos, Facebook,

Apple, et al are redefining

service, speed and

ease-of-use

Continual

Connectivity

Adoption of digital channels

is driving demand for choice

and connectedness

Organizational

Velocity Wins

Tech lowers barriers to entry

and increases speed; slow

response invites disruption

Abundance of Consumer

Data

Requires competency in

turning complex data into

business insight

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HILTON’S CHALLENGEThink of Hilton’s

competitive landscape

Part of the overall travel industry

• Airlines and rental car companies let you pick

your seats and car

Part of a very competitive lodging industry

• Lower margins

• Heavily impacted by economic conditions

• Constant and changing competitive

differentiators

– Heavenly Bed

– Free Internet

Many travelers report issues with hotels

• 30% hate waiting for a clean room

• 28% dislike room location

• 20% dislike room features

• 2 out of 3 wish they could choose their room

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HILTON’S DIFFERENTIATORRecreate the Guest Experience

New and better mobile application

• Pick a room the day before

• Add in special room requests

• Your phone is your room key

• Easy check-out from the phone

Many features available on the web as well

Rolled out to

• 4,000 properties

• 650,000 rooms

• 40 million Hilton Honors Members

• 80+ countries

• 18,000 team members

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HILTON’S

IMPLICATIONSFunction: Pick my room

Impacts: • Store room maps

• Setup process to update maps

• Setup API to make map calls

• Change one or more back end

systems……

Function: My phone is my key

Impacts: • Update 650,000 locks

• Use NFC or other standard on

phone for locking function

• Enable the key to work within

specified dates

• Setup a process for lost phones

Function: Make it fast

Impact: • Cloud storage?

• Solve last mile?

• Solution for no signal?

Function: Make it global

Impact: • Support multiple languages

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TRANSPORTATION CHALLENGE

I have a great idea, let’s create a

better experience for our bus

passengers.

Let’s make the entire

experience digital.

From planning to booking to

traveling, customer can interact with

us via multiple digital channels.

This will help us win business from

airlines on short routes and against

other transportation companies.

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TRANSPORTATION DIFFERENTIATOR

New APIs

Bus driver

app

Key

process

changes

Brand new

systems

Analytics to

improve

experience

and offers

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KEY COMPONENTS TO DIGITAL TRANSFORMATIONWHAT ARE SOME KEY COMPONENTS TO

DIGITAL TRANSFORMATION?

1. Customer Experience – it has to be related

2. Web Content and Digital Experience

3. Preparing yourself for mobile

4. Cloud and the experience

5. Responding to your customer with a personalized

approach

6. Gaining Insights using analytics

7. Extending digital transformation across the

enterprise

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PRODUCTS

BROADCAST

PUBLICATIONS SOCIAL

EVENTS

DIRECT MAIL

IN STORE

WEB

MOBILE

EMAIL

BRANCH

GAMING

CUSTOMER EXPERIENCE:

THE SUM OF ALL INTERACTIONS W/ A BRAND

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CX LEADERS OUTPERFORM THE MARKET

6-year stock performance of customer experience

leaders vs. S&P 500 vs. laggards

Source: Watermark Consulting

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ACHIEVING CUSTOMER EXPERIENCE MATURITY

CREATEcustomer experiences

DELIVERcustomer experiences

1Customer

Insight

6Operations

2Strategy

3Design

Processes

4Enabling

Technologies

5Measurement

SUSTAINcustomer experiences

7Culture

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YOUR SITE REMAINS THE HUB OF DIGITAL EXPERIENCE

Social

Media

Community

CRM

Marketing

Mgmt

Analytics

Apps /

Integration

Video

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“Digital has transformed the ways in

which customers discover, explore,

buy, and engage …. By 2017, digital

touch points like mobile devices will

influence 50% of US retail sales, and

10% of all sales will be online.”

- Forrester

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User Research

Interaction Design

Visual Design

Rapid Prototyping

Usability Testing

Experience Design

Monolithic vs. Microservices

Cloud-Native

Platform Selection

Framework Selection

Services Design

Application Security

API Governance

Solution Architecture

UI Development

Application Development

Services Integration

Automated Unit Testing

Performance Testing

Continuous Integration

Custom Development

Code Signing

App Certification

App Provisioning

App Distribution

Device Management

Analytics

DevOps

Deployment

MOBILE DEVELOPMENT LIFECYCLE

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• Microservices vs. SOA

• Consistent and intuitive API design

• Published, reusable APIs

• Leverage SOA investments

• Lightweight API governance Developer community portal

• Protocol mediation – Web Services to REST/JSON

• Security handshakes

• API monitoring

• API traffic throttling

MOBILE CONNECTIVITY – WEB APIs

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A roadmap that defines mobility efforts in the context of a

program that meets business goals. The roadmap will also

defined activities needed to create a consistent user

experience, comprehensive architecture and standardized

application development practices.

The roadmap will include activities to addressing the

following needs:

• Business vision and goals

• User experience and branding

• Application integration architecture

• Development approach and lifecycle

• Organizational suture and governance needs

• Development tools and framework needs

• Define Quick-win Pilot Project

• Program timeline, budget, iterations

DEVELOPING THE MOBILE CHANNEL

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“Digital businesses rely on the agility,

scalability and other attributes of cloud

solutions… IT leaders need to constantly

adapt their strategies to leverage

increasing cloud capabilities..”

– Gartner

http://www.gartner.com/technology/research/predicts/

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CLOUD TRENDS AND THE DIGITAL TRANSFORMATION

• Competitive pressure from new entrants

with lowered technology barrier – big-bang

disrupters

• The competitive pressure on IT costs and

agility – cheaper and better

• User expectations for high performance

and availability – Age of the Consumer

• Digital businesses relies on the agility,

scalability and velocity

• Cloud and DevOps mutually symbiotic

solutions for agility and velocity

• The rise of business software platforms

and reference architectures

Solution Reference

Architecture

Cloud and DevOps

Ready

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CLOUD CANDIDATE INVESTMENTS AND APPROACH

• Portfolio Analysis and Digital Use Cases:

• Content Management

• E-Commerce

• Customer service with social networks

• Big Data/Predictive Analytics

• Inventory and categorization of workloads

• Maturity and Readiness

• Value/Risk Analysis

• Cloud Provider Categorization and Architecture

Best Fit

• SaaS, Reference Architecture and Managed

Solution Offerings

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“Empowered customers are disrupting

every industry…. In this age of the

customer, the only sustainable

competitive advantage is knowledge of

and engagement with customers”

- Forrester

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WHY CUSTOMER EXPERIENCE ANALYTICS MATTER?

50%of CONSUMER INTERACTIONS

50%

Willing to pay more

for customized

health plans

43%

Those that deliver poor

experiences underperform

by more than 45%

...of the 13 industries tracked by

Forrester, health insurance

companies rank last in terms of

consumer experience.

Companies that prioritize consumer

experience generate 60% higher

profits than their competitors

Percent of consumers that get

frustrated when presented with an

inconsistent experience across

channels

65%

MORE

THAN

Increase in

Consumer

Retention

Increase in

Company

Value

10% = 30%

The market for individual

coverage is growing. It is

estimated to be worth

$200 billion by 2019.

multi-channel journey occur during a multi-event,

+60%

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Contextual-based

Personalization

Behavioral-based

Personalization

Persona-based Personalization

Journey-based Personalization

Structured Data

(5-20% of Total)Point-of-Sale

Text Messages

Contracts &

Regulatory

Preferences &

Emotions

Security Access

Weather

Machine Data

Automobile

Mobile

Communications

Geospatial

Social

Digital Data Ecosystem

EXPLODING SOURCES OF DATA - IMPACT

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360-DEGREE VIEW OF THE CUSTOMER

Traditional Data Sources Big Data Sources

Addresses &

contact details

Contracts

and accountsIdentifiers

Call

center logs

Unstructured

documentsEmail text

and sentiment

Relationships Social Media Sentiment

THE WHY & THE WHAT?

Deliver Better Insights

Sharper Competitive Edge

Make Customer’s Experience Personalized

Develop Trusted Relationships

Encourage Loyalty & Accelerate Sales

Big Data is the new normal. Creating a continuous, seamless virtual cycle of targeting the right customer with the

right offer @ the right time!

THE HOW? Federate search, discovery and navigation securely

Integrate high-quality structured & unstructured data

Manage new data types and navigate quickly

Create a single, up-to-date view of customers

Leverage Hadoop systems

Assess streaming data sources

Collect all customer data at one central location

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Ability to identify and focus on the

most valuable

consumers

Unify consumer experience across all

touch points

Target consumers

with personalized offers across

multiple channels

Predictive analytics to

enable cross-sell / up-sell

Closed loop analysis and continuous optimization

Advanced customer segmentation

Visibility into customer behavior including

digital and mobile adoption

Deeper understanding of customer needs for

tailored product offerings

Better insight into customer acquisition

and reasons for attrition

Consistent customer experience across

products and channels

Next best offer generation

ANALYTICS IMPERATIVE

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BIG DATA DRIVES DIGITAL

Customer Analytics

Web Analytics

Media Analytics

Multi-channel

Analytics

Social Analytics

Mobile Analytics

Source Wrangle Data Model & Tune Operationalize

At-rest

&

In-motion

Unified Data Management Architecture

Governance Based on Big Data Realities

Agile Business Process Change Management

Data Ingestion

Metadata

Management

Data Access

Data Preparation

Tools

Data Discovery

&Visualization

Wrangling Tools

Business Glossary

& Search

Data Access

Data

Discovery &

Visualization

Analytical

Tools

Analytical

Sandbox

Business

Created

Reporting

Model

Execution &

Mgmt

Knowledge

Mgmt

(Portal)

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Digital transformation defined:

“The realignment of, or new investment

in, technology and business models to

more effectively engage digital

customers at every touchpoint in the

customer experience lifecycle.”

- Altimeter

http://www.briansolis.com/2014/07/2014-state-digital-transformation/

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Strategy

CustomerInsight

Design

CultureGovernance

Measurement

Technology

1 2 3 4 51 2 3 4 5

EMBEDDED

ENGAGED

COMMITTED

INVESTED

INTERESTED

5

4

3

2

1

Maturity score

5 levels of

maturity

ASSESS YOUR MATURITY

How prepared are you?

No single solution area outweighs another

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Context

and

Capability

Insight

Vision and

Goals

Strategy and

Experience

Modeling

Road Map

and

Rollout

Planning

• Stakeholder Interviews

• Primary Research

• Key Customer Journeys

• Maturity and Opportunity Assessments

• Competitor Strengths and Positioning Assessment

1 2 3 4

Execution and

Optimization

Develop actionable

insights that frame the

problem and inform

solution ideation

Envision and articulate

high-value future state

scenarios and objectives

Identify key initiatives

along with operational,

technical and platform

requirements

Prioritize initiatives based

on effort and impact to

guide implementation

• Core Initiatives Definition and Scoping

• Experience Pillars

• Future State Experience Definition

• Concept Validation

• Road Map and Implementation Plan

• Identification of Quick Wins vs. Long-term Initiatives

• Investment and Resource Analysis

• Work Stream Planning

• Change Management Planning

UNDERSTAND THE PROCESS

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EXTENDING YOUR DIGITAL TRANSFORMATION

DIFFERENT

CONSTITUENTS

• Partners

• Field Service

• Customer vs. consumers

• Employees

NON-TECHNICAL ASPECTS OF

DIGITAL TRANSFORMATION

• Process change

• Governance

• Cost Justification

• Change Management

• Data Science

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FOLLOW US ONLINE

Next up:

How Customer Experience

Drives Digital Transformation

Wednesday, February 25

bit.ly/DTseries2

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• Facebook.com/Perficient

• Twitter.com/PRFT_Transform

• Blogs.perficient.com/digitaltransformation/

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