 Welcome. Right, welcome everyone. Good morning. In the words of Monty Python, now for something completely different. We are going to be talking at a much more sort of business level, and not such a technical level. Given this presentation several times, we know it resonates, but of interest and see your reaction to it. So, we're talking about the changing role of IT, in this thing called the age of the customer. Some of the conversations we've been having are still here, are very, very IT focused, not business focused. So, what we want to talk about now is that business focus. It's going to be a presentation in two halves. I said I'm going to start, then I'm going to hand over to my colleague David, and we're going to sort of talk about how the business is changing. Not IT is changing, but the business is changing. And hopefully that can provoke some thoughts about what that means for you. Now, in terms of the concept for this being focused on IT for IT, you want to put this into the context of the strategy to portfolio value chain. We're really focusing on how you actually go and build an effective strategy, and what that means in this time. So, always good to start with an example. So, Forrester talked about the empowered customer. Now, in the past, when we've been looking for examples, we've always had to use the Amazons, the Netflix, and everyone turns around to me and says, that's fine, but we're not Amazon, we're not Netflix, we're a big traditional company. Therefore, what's our meaning in this? So, this first example is John Deere, that company that produces the big green tractors. You see them around everywhere and so on. So, they took a look at their business and thought, how can we change? What can we do? What is our role in the world? And they realised that actually the farmers' outcome was not owning a big green tractor. The farmers' outcome was better crops, more valuable crops, more crops. So, they looked at it and thought, okay, how can we enable that outcome? So, they actually started writing farm management software. With each big green tractor, they gave away an iPad with the farm management software on. So, the farmer then started inputting all their data, started getting assistance and help to actually make better crops, build better crops, whatever. And then, at the end of that time, the farmer says, right, I need to buy a new tractor. Do I go and buy a Ford and dump all this data, all this stuff that I've got, or do I go and stick with John Deere? So, John Deere realised that their part of the ecosystem was enabling that outcome. And they were looking at how they could enable that outcome. The stickiness they created by giving away an iPad means that those farmers are now very, very loyal to that brand. So, at Forrester we call this the age of the customer. And we want to differentiate that between previous ages by talking about how that links to the stages that organisations have gone through. So, back to the 1900s, we talk about the major manufacturing. This is the time when those companies that were most successful were the ones that made with the industrial powerhouses, those that could build for the most effective and efficiency, the cheapest and the best products. In the 60s we got to the age of distribution, the global logistic networks. Once we hit this stage, those industries with the networks, the capability and supply chains were then the ones that took the leadership. In the 90s we then hit the age of information. So, with the mass rollout of PCs and the availability of information to diverse areas within the business, it was those organisations that could flow that information to the relevant people that were then the most successful. And what we say we're now reaching is, that's it, the age of the customer. And what we mean by this is now the customer has the power. The empowered customer demand a level of customer obsession. Now when we talk about customer obsession again, we are using a very emotive term, obsession. We're not talking customer centric, customer aware, we're talking obsessed. And what we mean by that is understanding the customer in great detail, understanding their needs, their desires and how that you can meet those, how you can provide the best experience. So putting that into context, companies in the past used to have all the power. They defined how and when you interacted with them. So the typical example I use here is a bank, a very, very common organisation. In the past they defined their business processes, they defined their branch opening hours, they defined the products they sold. And if you wanted to interact with them, you had to do it on their terms. If you went to a branch to open a loan, you had to go in at the opening times of that branch and do anything with them at the time they wanted. So they were very much in control of that overall process, the interactions, everything was on their terms. What we're now seeing is with the power of technology, is that shift is changing over and it's moving towards the employees and the customers. With that ubiquitous access, the mobile devices, it means that the customers and employees now have a significantly more level of control. And I'll also say that information is also flowing over to the customer side because they're empowered. So back to that example of banking, how has banking changed? So using an example from the UK and potentially a sad reflection on UK culture, when Barclays released their mobile app, after about two months, they suddenly started getting a peak of transactions at 10.30 on a Thursday night. This isn't good news for a bank because they still have batch jobs running on the main frame. It's outside their control. But they didn't understand what was coming on. So they did some checking, some analysis and what they found out was in the UK, the typical pay day was Thursday and pubs closed at 11.30 or 10.11 o'clock. So lots of people were checking their account balance before another drink. But the point here was that Barclays were no longer in control of how the customers were using the application. They were using it on their own terms to create their outcomes and outputs that they wanted and they did it in their own context. So Barclays had to go away and work out really how to fix all their back-end systems to meet that strange new customer demand they didn't predict. The other trend in the market was the option. So you can see the numbers, I'm not going to read them, but these sort of give those big hyper-adopted companies when you can see Facebook with 1.4 billion registered users. You can see Apple with 800 million credit cards registered. These occurred very, very quickly. These were not slow growth in the traditional business model. It means that these companies were able to use the modern sort of IT infrastructure that Bernard described to actually scale very, very rapidly. And because they could meet that need of hyper-adoption, they came from nowhere and succeeded very quickly. So what does this mean for you in traditional business? It means that you can't have a strategy that actually lasts sort of five years because you'll have missed. If you have to develop something in two years, a competitor can come along and overtake you in that time. So think about the impact of how hyper-adoption could come in from anywhere, Uber, Airbnb, any of those types of organisations that have come in and taken over and changed and disrupted the market so quickly. Next stat, mobile, sorry, smartphones. We predict by 2019 there will be 3.5 billion smartphones in the world, which means that the common access point, the way people interact with digital services is going to be via a smartphone. Obviously other devices are coming up quickly, but the sheer connectivity, the sheer way in which people interact now means they are permanently connected and they want to interact with you digitally. So what we're seeing from that sort of trend overall is then the rise of what we call the super-shopper. Now, it wouldn't be forester if we didn't put graphs up and there was some research, so we've got to put them in here sometimes. The key message on here is that empowered customer now is really using those digital channels. They're using them in multiple ways to actually be fully informed about their purchasing decisions. They're doing research. They're moving into, if they go into a shop, they're not just looking at what's in the shop, they're looking on their phone, they're comparing, they have a lot of information associated with them. And this is the EU numbers, the European numbers, as you can see split. So we're seeing the super shoppers, the mobile shoppers, but the traditional web shoppers, the researchers and the holdouts are all reducing. So that standard, that pattern of behaviour is on the rise. Now, the impact for you is that means that those customers are going to be interacting with you digitally. They want to interact with you digitally. They want the information and they have their capability. And if you don't provide that to them, they will go somewhere else. So, we've heard from Bernard that there's a huge wave of innovation occurring in cloud. But it's also occurring in lots and lots of other devices. I mentioned the Echo, the Amazon Echo, that's one device. Now, what I actually find interesting about this slide is we've been using it for about a year, 18 months, and already it looks out of date. It looks quite dated compared to the products out there. So if you think about now how to actually cope with that wave of innovation, how you as an IT strategy can actually deal with the pace of change. The key thing for me here then is actually not trying to predict the future, because if we could predict the future, we wouldn't be sat here, we would have a nice yacht somewhere. It's actually about understanding how can you be ready, how can you exploit that change when it occurs. Are you set up in such a way that you can experiment, learn, try, and actually put those new technologies out there quickly whilst you have that opportunity. So another example, you're getting the message now reinforcing, this is just Airbnb, number of nights booked, and how rapidly they rose in four years from one a day to one every two seconds booking. And the disruption that occurred in the hotel industry and accommodation industry just in that short time. So if you have a three-year or a five-year IT strategy, how would you have responded to that threat? What would you have done to actually deal with that? It's very, very challenging to be able to think in terms of that. I still deal with lots of organisations that write a yearly IT strategy at best, and some of them have an idea of a three- or five-year strategy. When you have this level of change, that just renders that meaningless very, very quickly. So what does this mean now in terms of how customers interact with you and how they work in your sort of area? This applies to both B2B and B2C organisations. We see B2B having the same sort of area. So at Forrester, we work on this very, very simplified customer life cycle. First, the customers discover your project products. Normally they discover them through a Google search, it's the first way, so you don't even control that first digital interaction. Once they've sort of understood what the products are, they then explore them further. So they actually go on, will look online, use different research tools, ratings, et cetera, and they will explore and find out more. But they also might go into a store, they might go and want to feel the product particularly. So it's not pure digital, it's actually multiple touch points. Then once they've got through that explore face, they make the decision to buy. And again, they go through how they're going to buy it. It may be online, it may be through traditional methods. But once we got past that buy, you actually got to engage, and you've got to continue that relationship. So customers now expect not just buying a product, they expect the ongoing interaction and engagement with the brand, with the company, to actually provide ongoing information and context. So you can see here, we're just listing out the external digital touch points, which we can consider social media, Google, the branded digital touch points that you may create to actually support that life cycle, and then the traditional touch points of the call centre, contact centre, and outlets, branches, stores. Now the message again here is, this is now a complex environment. This is a very complex set of interactions, and the organisations that win are the ones that make that as painless and as frictionless as possible. So in this sort of online world, success is not measured in how well it responds to the business. It's how it enables us to compete in that environment. To be digital in this environment means that you're not now saying what does the business want. You're asking other questions about how you fit within that overall ecosystem. So some brands understand this. Obviously one, Amazon constantly innovates, constantly looks at how they can improve their customer experience, how they can improve that interaction, just make it so easy to buy from them that you wouldn't consider buying from anyone else. And I think I'm probably just as similar to anyone else's. It is so easy. I very rarely look anywhere else now. I go and use Amazon because it is so straightforward. Other brands find out the hard way. Again, very, very classic, but blockbuster. Did they see the increasing speed, Netflix coming? They probably did, but they just didn't know how to react. And their market just collapsed very, very rapidly. So what is your IT strategy? And with that, I'm going to hand over to Mr Cameron. Thank you very much. And good morning everyone. So what is your IT strategy? What should it look like? I will find out if I can figure this thing out. The IT strategy that we're following today needs to be a digital strategy, a digital business strategy, not a traditional IT strategy. Now, be very careful when you use the word digital business, not just talking about that very confined term of digitisation that we often find technology people using. What we're talking about here is a way of innovating that changes the way that you do business. And digital is just the next wave of something that has been going on for hundreds, if not thousands of years. It's just simply very two things. One, we understand how our customers use us, how they engage with us, what they're looking for from us. We figure out what we can give them that is better than before. So we have to continuously innovate so that we're giving more, giving better that we're competing in the market. That's the first thing. Of course digital, what that means is there are new technologies coming available. There are new things in the hands of our customers that make it easier for them to do business with us. We need to understand what those are, we need to use them, we need to promote them and we need to gear our strategies around them. That's the first thing. Second thing is how we work. And that's actually in the last two points here. But how do you deliver those services? So the whole digital business theory is revolving around number one, innovate to provide better functionality or features or experience to your customers, but underneath it is innovate so that you become better at delivering. And figure out how you use your capabilities within your organisation and evolve those capabilities really quickly to be able to be more efficient and better quality as a service provider. That's what we're using this technology for. And so our strategies have to reflect that. Given what David just said about the fact that technology is changing so quickly, well, what does that mean? So we can't put together the traditional IT strategy which is 100 to 500 pages long. It has detailed architectures and then stick to that over the next five years. We can't do that anymore. The strategies that we put together don't look the same as they used to. The more IT strategies are starting to look like guidelines, principles, boundaries rather than actual plans and architectures. So what decisions do you need to make? At what point do you know you need to make that decision? What information are you going to need to be able to make those decisions? That information is what we find in the strategy of today. So we give you an example of the kind of things that you have to take into account when you're developing your strategy. This is called a value ecosystem. Yes, we move from value chains. We move from value networks. We're now in value ecosystems. We're really evolving here. What that means is that your customer is putting together something that is valuable to them. On the old days, they would get all of that from you. Today, they're assembling it themselves, real time. Let me give you an example. There we go. I want to go on a business trip. So I am going to create a value ecosystem. I'm going to use technology that is valuable to me, i.e. How do I define value? Does it make it easier for me to travel on business? That's it. I define the value. I assemble the technology that enables me to achieve that value. Depending on what I'm doing, I will use different apps or interfaces with different companies to make that business trip a reality. If one of those functions doesn't really work 100%, I'm not going to use it. I'm going to switch to something else. I haven't taken too long to get with me, or it can't pick up my location. I'll use Lyft. Lyft doesn't work. I'll use Arrow. I do it within seconds. The more frequently I have to switch apps to another app, the more likely I am to switch my loyalty to that company. It happens within seconds. It happens because I choose to make it happen. Not because of your strategy, not because of how good you are, not because of what a wonderful company you are, but because I decide at that moment what is valuable to me. That's the reality that we're living in. If I want to create a strategy in IT, hold on, what's an IT strategy? We're talking business strategy here. Wait, it's the same thing. All of these are technology components. All of these are enabled by the technology that our IT department provides. All of these are technologies that are best understood by people in our organization who have technology management capability. Why are they not at the table? We'll come back to that, get to Bernard's earlier question, having a food fight. Well, here's what's happening. The choice of who I do business with is no longer determined by the quality or the features of the products delivered by a company. Before, we would differentiate ourselves based on the feature set of our products. How many of you were really frustrated at some of the innovative new technologies that were coming out and everybody wanted to use them because they were so innovative, but they were feature poor. I'm not going to mention names, but certain cloud providers with document management capabilities come to mind. We were no longer determining our decision based on the features of the product, all the features, all the speed or the quality of the service. We were basing it more on, could I get the value I wanted when I wanted it? Did it meet my desires? Yes, desires not needs. This is a desires-driven industry, not a needs-driven industry. Most important of all, it's driven by our experience. I want to add another E word in there to experience, and that is emotion. Yes, purchasing decisions and company differentiation today is based more on emotion than the content and quality of your services and products. We as IT people have to figure out how to make that happen because we understand the technology better than anyone else. Here's an example. This is an example of KLM and this is taken in Schiphol Airport. KLM were one of those organisations that were struggling with their identity because airlines are under a lot of pressure. You see all the low-cost airlines coming in. How could KLM differentiate themselves? How could they get that trusted brand status with their customers, given they were under so much pressure? What they decided to do was launch this campaign, this marketing campaign, but staffed up and supported as an active product offering to try something out. It was called Happy to Help. They set this up, staffed it with 250 people to support it, opened it 24 hours a day and Happy to Help meant they would help you. It didn't matter if you booked it with them or not. If you had an issue, you had a problem, you could just walk in there and they would sort it out for you. They understood then the power of an outcome, a desire, making that emotional support much easier. If you've ever been to the airport and you've had that problem, your flights cancelled and you get to one ticket desk and they tell you to go to another ticket desk, it's not my problem, phone this number, they understood that that was lots of customer pain and causing a lot of dissatisfaction. By doing this, they then created that loyalty with the customer base, even with customers that have not bought tickets with them. So looking at how they built that value, built that ecosystem, they were suddenly delivering a very, very strong customer experience. They were making it easy, they were making it effective and they were generating a positive emotion by actually solving the issues that people had. So from there, they've actually transformed, they've actually started going back up to aviation as a trusted brand. People like them, which then has resulted in more ticket sales, more passengers. But they did that from a viewpoint that was different to that classic products and services. They weren't saying what products can we sell, what services we can sell. They said how can we take our customers, how can we take this ecosystem and how can we basically enable the outcomes, the experiences and the desires in the best way. Thank you. Taken all together, this is what a value ecosystem looks like. On the one end, it's about understanding your customer and understanding what applications they're using, what the experiences are with the products or services that they're using, what digital products we're providing to them and how they're using those products and how they're using things like web interfaces to do business. Of course they're not only relying on us, they're relying on other partners or competitors within the industry. So it's important for us to be able to figure out where we stand on that. We also have an internal value ecosystem which says, here's how we drive efficiency within our organization, but here's also how we work with others to be able to deliver what our customers need. Our ability as technology professionals to map these ecosystems is the key to our survival. Now I know we're very good at mapping the bottom one. We have to get good at mapping the top one as well. Let's have a look at that. So what that means is digitize your business strategy or if you like, business size, your IT strategy. And it's just a statement you can take away. Digital businesses, i.e. I should really change that and make those businesses more accessible to customers who use technology. There's a better way of putting that, just a bit longer. Will one serve and retain those customers by continuously creating and exploiting digital assets? In other words, being innovative, not too innovative, but innovative in terms of what your customers find valuable. What do they find valuable? The things that they need to do. The outcomes they want. By the way, I have to point out at this point that this was, in fact, the ITAL strategy of a service going back to 2007. I just won't point that out. All right. I have to take a lot of the blame for what's in ITAL and I do realize that a lot of what's in ITAL is dated. However, a couple of things that come out of that are really key for us to move forward in our strategic thinking and the definition of a service is one of those. We're talking about IT for IT here and we're talking about the ability to generate and manage and support and integrate into a business strategy. We're integrating into that business strategy by creating a portfolio of services. Portfolio implying value. This is not just about what they cost. It's not just about what they've invested. It is about what the returns are. What have we of an organization been able to do? How have we increased our competitive advantage by using technology, by using these technology-based services? We'll go back. This is again maybe over simplifying it but I always hope to simplify things to figure out how this works. The major proposition here is that increasingly there is no difference that's a horrible way of saying it. There is a narrowing of the difference between business strategy and IT strategy. More and more, your IT strategy is your business strategy because your customers are using that technology. I'll add into this in a little bit later. I'll come back to this point. We spoke about shadow IT or at least Bernard I suffer this pronunciation thing. Talked about shadow IT. I would love to go back to the days of shadow IT when the business was creating its own technical solutions. At least I could find out what they did after they did it. You know? The new shadow IT there are external customers. We have no idea what they're doing with our technology. Mark Smalley, a friend of mine used the term eclipse IT. It's not just shadow IT anymore. That is what's going on here. Your ability as a technology professional has to include understanding what those external customers are doing with the technology. Here's how it works. If you look at a service it consists of two components. The two components are not customer and provider. Those are just the role players. Two components of a service. Number one is what you deliver. For most of us that is the service. We know from cybernetics and communication theory that there has to be a feedback loop otherwise we don't know if it's been delivered or not. The feedback loop is what did the customer use the service for. If you don't know what that was you cannot say whether the service was in fact delivered or experienced or not. So there have to be those two components. One, what do you deliver and two, how did your customer use it? What did they do with it? There was a lot of argument about this when Eichel was being written and subsequently and I remember one argument very clearly. It was the argument of how can you expect your hairdresser to give you the haircut and you go out and date more successfully. How does the hairdresser have any influence over whether you date more successfully or not? I thought about that and then a year ago I moved into Hell's Kitchen in New York and took my 18 year old son for a haircut. Hell's Kitchen for those of you who don't know it is a very diverse community. I can tell you that when he came out of there with that haircut his dating options were going to be very specific and certainly not what he would have preferred. There was a very clear correlation between the haircut that he got and what his actual outcome was going to be. Sorry to be but it really stood out for me. The point is this, I know that the service provided does not determine the outcome but they can certainly equip you to make that outcome easier to achieve or more difficult to achieve. If you don't know why that person is coming in for a haircut and who his or her intended audience is you better get to know otherwise they will not come back to you. So when do services achieve value? Charlie and I had a discussion last night but this morning, sorry Charlie, about cost accounting and I have to agree with Charlie cost accounting is not the answer. There are components of cost accounting that are useful. More important is value accounting. Where do you achieve your value? And it's very simple. The customer achieves value when they get the outcome that they wanted. Not when they use the service by the way. The fact that they use the service on or there. That means value for you but not necessarily for them. The question is when they use that service did they get the outcome they wanted. That's the time when they determine value. When do you determine value? When the customer paid for what you delivered. Now, clearly two different sets of value here and hopefully they should be aligned. What's the cost if you get it wrong? The cost is very simply you don't have a customer anymore. I.e. they pay you this time but they won't pay you again. And if your strategy is on market growth, differentiation, achieving more customers or keeping customers loyal to you you'd better make sure that your customers are achieving what they wanted. What this means is that your architecture standards have to include the lives at least go further one step out into what your customers are doing with the service. This is where I'm getting to. What about internal services? We in IT talk a lot about the value of IT services. I have to say that IT services are of no value whatsoever until until they are sold externally. So any accounting system that you use internally to demonstrate how valuable you as IT are are absolutely of no value until they are linked to what the customer is getting and whether they're paying for that or not. So who defines the value? And there you are. The line of business supposedly defines the value. In traditional IT models the line of business tells IT what to do, IT does it and then they're good. No longer the case. We can't afford to take that approach anymore. You cannot believe that what the business is telling you is everything you need to know to deliver IT services because you understand something about the technology world that not even the best professionals understand. That's because we're technical professionals. However, what we're missing is the business side of that many times. So it's not. The business tells us what to do and we do it. It is business and the technology professionals decide together what to do and this is where the seat at the table comes from. It is not because we become better at delivering internal services. It's because we become better at understanding what customers are using technology for and how we can better meet those requirements. That's where it comes from. So when you start to have discussions around where is the value coming from. Not what do we cost you but where are you going to get value? What are customers going to pay for? By the way, we've been doing some research about what customers are doing, what they're paying for and here's what it is and here's how we can help. That's where you get the seat at the table. It's as Bernard said to keep referring back to him. It's all very well to get the seat at the table until they turn around to you and say how do we do that? That's what we've got to be able to answer and it just goes back to the basic strategy to portfolio flow. It's critical. However, bear in mind you're not the only ones delivering value. Look at all the different service providers. We really saw that when the business trip fan. There's a lot of different people who to achieve one specific outcome are using us just as a part of the puzzle. Are we happy with that? Do you want to be just a part of the puzzle or do you want to grow a piece of the puzzle? You cannot have a presentation like this without mentioning Amazon or Uber. Uber has not been mentioned yet so I'll bring them into it. If you're Uber and you have a way of connecting riders to drivers what else do you do? Do you become the best in the market at doing that? Bear in mind there's a lot of other competitors so you become better at doing that. You create self-driving cars and so on. But can you create a new in adjacent fields? Uber believes they can. Uber eats. So can you use your basic service and provide different kinds of value? Those are the kind of questions you should enable your business to start having. So what does this mean for your IT strategy? Well it means that business strategy depends on how you understand technology. If you don't understand technology you don't have a business strategy moving forward simple as that. But it's not about the IT department simply listening to the business and giving them what they want. It's not about that anymore. It used to be like that but it's not about that anymore. It is about the need for a new business professional. It's a hybrid of a technology manager and a traditional maybe marketing or business operations manager. It's somebody who stands between those two worlds and can make decisions on both sides of the fence according to what value you want to achieve. If you can do this then you will become the strategy of the business. If you cannot you will become a commodity service provider and you will move back into the basement where you came from or you will move into the cloud as part of an outsourcing organisation. When I say you I mean all of us because I'm one of them. This is how important it is. This is how critical it is for our future as technology management professionals. Can you do this or not? You can. Your future is in one direction. You cannot. Your future is another. You will have a future either way. That's the good news. It just depends on what future you want. Not that hard. You've been speaking about this for years. So connect your outside anything, another forester term let's move away to what that means. So here's the traditional view processes, technologies, resources services but are you using those so that you understand how it supports customer journeys? Can you pick up what context users or customers are using those services and improve their value that they get in that context? Can you make it easier for them to touch your business, to do business with you? Those are things we've got to start thinking about and they're all technology based decisions. Of course, ITIL service management. I have to say this. Don't drop service management. By the way, when we talk about service management I've got to go back here. Service management is not a bunch of processes run by a help desk sitting on the front end of your data center. There's a very limited view of service management. Service management is about how you articulate what service your IT group as a whole provides. Some of them are technical, some of them are not so technical. So service management is about how you manage your IT group. So we're good at delivering outputs at 5.9 is a greater availability which nobody really cares about except us. So continue delivering at 5.9 but when you deliver at 5.9 what outcomes are you enabling? Quantify them. Put them into your service portfolio. Make sure they're reflected in your strategy. Two, measure your IT performance. Really important. Don't stop doing that. It's absolutely critical. You understand how your components are performing. But when they perform well is your customer getting a good experience? I will never forget the day that a certain cloud based mail provider which Forrester used became partially unavailable. We started receiving messages but they were out of sequence. And some were missing altogether for a whole day. We complained and it was fixed. I will never forget the letter of apology we got from that company. It said we apologize for the sporadic nature of your email service today. However, we would like to point out that we are still within our 99.9% availability target. Do you think I care? I didn't get the right experience and I did not achieve my outcome. Are you a good service provider? Needless to say we switched providers. Your service catalogue. By the way, there are many vendors out there that are calling a service catalogue a service portfolio. Please stop them. Service catalogue is an easy front end that you can use to order services. That's like walking into a restaurant getting hold of the menu and saying I can open my own restaurant now. I know everything there is to know about how to cook each one of these dishes what utensils I need, how much it's going to cost where the vendors are that I'm going to get the raw materials to make that food. A menu doesn't tell you that stuff. It just tells you what you can order. A service catalogue. You want to know how to make strategic decisions based on who your vendors are, where you get the raw materials, what the best options are. That is a service portfolio. Please drive your vendors to provide you with service portfolio functionality. Don't buy that a service catalogue calling itself a service portfolio is all you're going to need. It's not. You need to understand your capabilities and your value. Take your technology expertise, use it, build on top of it, the business expertise and finally, absolutely don't discontinue your capabilities with technology architecture but build on them to understand not only your service architecture but how those are governed. That's a whole different subject touched on a bit earlier this morning. It's easy to move into the cloud technically. It is very difficult for those people who are now using those services to understand their fiduciary responsibilities and how those have changed now that they're managing services that are no longer internal to the company. We have not made it easy for people to do that. So, David. Going back to where we started on this journey, talking about John Deere and John Deere and what John Deere are doing. We talked about how they actually started employing very technical people for customer-facing applications, not the back-end systems, developing applications, understanding the digital touch points, the experiences, the desires, the outcomes for something that is an incredibly traditional business. John Deere have done that pivot. They've understood now and they have to think 250 developers working non-stop on developing and building out this whole digital ecosystem. It is an ecosystem for them because it's not the outcome of selling a big green tractor. It's an outcome of better crops, war crops. Now, within that, you have to understand the ecosystem includes things like the fertiliser suppliers, the compliance to regulations on nitrogen, all those things that they're in there. So, this is a much wider understanding of what is going on in agriculture. So, we see that now as they understand how they can enable that ecosystem. So, it's something like this. John Deere Field Connect, gathering data. How can they continue to develop those digital services to drive the outcome? And with that, we are ready. Fantastic. Lovely presentation gentlemen. Thank you. I can ask you to have a seat and have questions and oh, I get to go in the middle. You get to be there. That's not good. While you get your breath back just one announcement, many of you in the room are tweeting which is fantastic but some of you are using the wrong hashtag. So, hashtag OGSFO is what we need please for those of you tweeting. We want to get the benefit of all your thoughts and share the sound bites that you're hearing today. So, we have some questions and I also have a plug to make because I can. A brand new white paper published by the open group today called digital transformation strategy. A digital transformation strategy to implementation using open group standards that's available on our website and it complements a couple of earlier ones on customer experience driven enterprise architecture and a framework for digital customer experience. So, some of what you've been talking about we've been doing and thinking about here as well of course. So, first question you described a shift in what an IT strategy is and how it's used and you've given the John Deere example. This question is are there other examples of companies that are doing well today that we could look to for guidance or look to as examples that you can share? Right, you can certainly share some of those that are published. USAA, anybody familiar with USAA? Any veterans out there? Yeah, okay. No. USAA is a financial organization aimed at servicing the needs of veterans. Reorganize their entire organization around a customer journey. Instead of having a home loans division they have a buying a house division. They expanded the services that they offer just providing home loans to providing all kinds of information that you may need when you're in search of a new home. And will actually support you through that entire journey. They know what the major decisions are you need to make they know when you need to make them they know what information you need from them at that time they even know what information you need from somewhere else and they'll help you get it during that cycle. So, there's an example and again they're able to do that of the technology that is owned by their customer. So, that's one example. Okay. We don't have loads of time for others but something that we discussed last night and the questions come up. What's your point of view on artificial intelligence in the age of the customer? So, this is interesting. So, AI technologies have sort of hit that maturity point now where they are I'd say for the first time taking on basic knowledge worker roles. So, in terms of that customer experience of having an agent that can support you so the echo, as we sort of discussed having that capability to answer questions interact with you in a different way is becoming very, very powerful. So, what we're seeing now is having that experience is tied into the analytics the context, the personalization knowing about you as an individual. So, one of the things I say with big data obviously is lots of people try and talk about big data in understanding what an organization, what a customer base is doing as a whole. Well, actually the context is actually understanding what you do as a person. Where are you? How are you wanting to interact? What is your next appointment? How can I help you? Those sort of technologies are now maturing very, very quickly and I think we'll see that as an ongoing challenge for businesses customers now get that expectation that that's how they want to interact with you. So, I was working with a sort of catering company into a sort of traditional one and they're very much in the old so they publish their menus on the web page that's their idea of being digital but we started exploring well actually a lot of their people use Facebook and they put one of the Facebook bots up to actually chat with someone about what the menu recommendations were for the day and this is where we're going to see that type of knowledge the context then comes in we say understanding that person's allergens what they like, what their preferences are what recommendations can you make and that level of personalisation and context we actually the discussion last night went on saying when does it actually step over the line and become creepy when you feel that system just knows you and we already know that people are backing off on some of the capabilities and actually slowing them down to not have that creepiness feel constantly monitored and checked about and being told what to do next Thank you So a question if the IT strategy and business strategy are basically coming closer and closer together as you said David and effectively forming the enterprise strategy are CXOs recognising the power of enterprise architecture to achieve their enterprise strategy and is that really the way it's designed I'd love to be able to give a nice PC answer the answer is no I don't believe that they are getting a fair shake I believe that enterprise architects in many organisations are still perceived as technical or solution architects and it's going to be a while I think before before we fully appreciate that business role of enterprise architects in fact those of you who are for us the clients even those of you who aren't can read this Gordon Barnett, one of the analysts produced a range of papers around business architecture in which he really promotes the role of enterprise architects as a key business capability and I'd certainly encourage you to read those reports there they answer the question better than I could Thank you Strategy on a page of SOAP is more towards where we are thinking in the thought process within our organisation is this what you are seeing as a norm or are we early adopters and what pitfall successes should we expect So I'll start I'm sure David wants to join in on this one there's several things here so obviously as far as we get to see lots of strategies and they're a real mixed bunch so when I'm reading strategies does it actually tell me anything useful as my persona and I have to say probably 50% of them don't so start getting to the strategy on a page is great if it tells me something important so one of the things I always advise is also understand your audience who is going to read the strategy it's not one person it's a different one the marketing team might want to read it the CX level might want to read it the developers and the application teams might want to read it but now then different documents they say different things so as you build out a living strategy approach it's actually ensuring that you're communicating the right information to the right people so they can then be informed and make the right decisions I think just to add to that be careful not to get in the effort for briefness to become too vague one of the most popular strategies today is cloud first that could mean anything right so be very careful not to sacrifice how specific you are just for being brief quick question how does a supplier get feedback on emotional values both kind of mentioned and talked about emotion being a part of the decision driving options how do you get the feedback there's always an interesting question so a way we define customer experience of forestry is the three E's ease, effectiveness and emotion and when I'm doing a customer experience presentation to techies I always say it's great because techies have understood for years the ease and effectiveness it's the emotion bit that they struggle with so what we look at there is fairly straight forward understanding the customer journey through a series of touch points if you look at where the negative emotions come in so if I say take an example I'm going to get a loan and it's going to be quite a high value loan if I make the wrong decision there that's going to be something that causes me a great deal of pain for a long time so I have a certain level of anxiety so where is it's not just about making the loan application easy, effective to get there it's understanding how do I actually turn that negative anxiety emotion and make it actually much painless so an example from a Polish bank that I was working with they were using their web analytics so they knew that they had lots of customer drops at the point of buying a loan so what they did was put an automatic alert into the contact centre and the contact centre then phoned the customer after five minutes and said we notice you're going through a loan and you stopped, is there any help we can give you so they then provided that human emotional support to actually under that they turn their conversion rate from 2% to 20% so very very strong business outcome from what is effectively understanding that customer journey and the nervousness and anxiety potentially at the different touch points we attach electrodes to no that is one approach of course and actually this raises an interesting point is the degree of time lapse and how that impacts so customer satisfaction metrics a little bit old fashioned don't really give us what we need to know about emotion and ease of use they give you a snapshot of a particular experience what we're starting to see is organisations depending more on close to real time analysis of what you're thinking one step closer would be Yelp or TripAdvisor only problem with that is that kind of gets onto the page and it stays there forever you never know whether that's still a reflection of people's experience with that organisation we're starting to see some apps emerge now where you can do real time statements about your experience of a particular business and also make comments about why that experience is good or bad and what could be done to improve it with the feedback loop so the business owner can actually take action and explain what action they've taken so we're starting to see that functionality coming into some of the social apps that are coming but yeah short of measuring people's pulse and sweat rate it's difficult to there's a lot of assumptions that have to be made and we of course can build those into algorithms unless you don't want to be dependent on them we've got one or two questions that we didn't get to and these general will be around so do track them down if your question didn't get answered but