journey - Blog - Global Risk Community2024-03-29T09:21:16Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/journeyAdvancing Digital Transformation in the Highest Form: The Next-gen Operating Modelhttps://globalriskcommunity.com/profiles/blogs/advancing-digital-transformation-in-the-highest-form-the-next-gen2020-03-08T06:00:00.000Z2020-03-08T06:00:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><p>Companies often know where they want to go when it comes to <a href="https://flevy.com/browse/stream/strategy-development">Strategy Development</a>. Companies want to be more agile, quicker to react, and more effective. They want to deliver<a href="http://flevy.com/blog/wp-content/uploads/2019/11/pic-1-Next-gen-Operating-Model-240x300.jpeg" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2019/11/pic-1-Next-gen-Operating-Model-240x300.jpeg?profile=RESIZE_710x" width="240" class="align-right" alt="pic-1-Next-gen-Operating-Model-240x300.jpeg?profile=RESIZE_710x" /></a> great customer experience, take advantage of new technologies to cut costs, improve quality and transparency, and build value.</p><p>Yet, while most companies are trying to get better, the results tend to fall short. One-off initiatives in separate units do not deliver big enterprise-wide impact. Improvement methods that were adopted almost invariably yield disappointing results.</p><p>Senior leaders have a crucial role to take in making things happen. <a href="https://flevy.com/browse/stream/transformation">Business Transformation</a> cannot be a siloed effort. A <a href="https://flevy.com/browse/flevypro/digital-transformation-next-gen-operating-model-3976">Next-generation Operating Model</a> is essential to break through organizational inertia and trigger step-change improvements.</p><h3>Understanding the Next-gen Operating Model</h3><p>Companies need to commit to a Next-gen Operating Model if they want to build value and provide compelling customer experiences at a lower cost. <a href="https://flevy.com/browse/flevypro/digital-transformation-next-gen-operating-model-3976" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2019/11/pic-2-Next-gen-Operating-Model-1024x768.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-Next-gen-Operating-Model-1024x768.png?profile=RESIZE_710x" /></a></p><ol><li><strong>Integrated, Organization-wide Operational Improvement Program</strong>. This approach is focused on Customer Journeys and distinctive customer experience. The <a href="https://flevy.com/browse/flevypro/digital-transformation-next-gen-operating-model-3976">Integrated, Organization-wide Operational Improvement Program</a> is a holistic approach towards how operations can contribute to delivering distinctive customer experience. It cuts across organizational siloes in both customer-facing and end-to-end processes. This approach is a preferred organizing principle. Having multiple independent initiatives within separate organizational groups can deliver incremental gains. However, the overall impact can be underwhelming.</li></ol><ol start="2"><li><strong>Holistic Customer Journey</strong>. This is an approach that makes use of multiple capabilities instead of individual capabilities to achieve greater impact.</li></ol><p>The holistic <a href="https://flevy.com/business-toolkit/customer-journey">Customer Journey</a> is achieved when the 5 core capabilities are utilized.</p><h3>Discovering the 5 Core Capabilities</h3><p>There are 5 core capabilities essential in unlocking the most value in the shortest possible time. Two of the 5 capabilities are Digitization and <a href="https://flevy.com/business-toolkit/analytics">Advanced Analytics</a>.</p><p>Digitization is the process of using tools and technology to improve journeys. It has the capacity to transform customer-facing journeys by creating the potential for self-service. It has the power to reshape time-consuming transactional and manual tasks that are part of internal journeys more so when multiple systems are involved.</p><p>Another core capability worth knowing is Advanced Analytics. This is the autonomous processing of data using sophisticated tools to discover insights and make recommendations. It provides intelligence to improve decision making and enhance journeys when nonlinear thinking is required. This is very useful in claims triage, fraud management, and pricing.</p><p>There are 3 other core capabilities that are essentially important in these days of <a href="https://flevy.com/digital-transformation">Digital Transformation</a>. These are Intelligent Process Automation, Business Process Outsourcing, and Lean Process Design.</p><p>Intelligent Process Automation is an emerging set of new technologies that combine fundamental process redesign with process automation and machine learning. It can replace human effort in processes that involve aggregating data from multiple systems taking a piece of information from a written document and entering it as standardized data input.</p><p><a href="https://www.investopedia.com/terms/b/business-process-outsourcing.asp">Business Process Outsourcing</a> works best for processes that are manual. It uses resources outside the main business to complete specific tasks or functions. Back-office processing of documents and correspondence is an example of BPO.</p><p>The Lean process Design is one capability that helps companies streamline processes, eliminate waste, and foster a culture of <a href="https://flevy.com/business-toolkit/continuous-improvement">Continuous Improvement</a>. It is considered a versatile methodology as it can be applied in multiple processes.</p><p>Organizations can use these capabilities to achieve the greatest impact. The maximum effect, however, can be achieved when specific implementation guiding principles are followed.</p><p>Interested in gaining more understanding of the <a href="https://flevy.com/browse/flevypro/digital-transformation-next-gen-operating-model-3976">Next-gen Operating Model within the context of Digital Transformation</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/digital-transformation-next-gen-operating-model-3976">editable PowerPoint about <strong>Digital Transformation: Next-gen Operating Model</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>5 Key Ingredients of a Robust Omni-channel Customer Journey Design Approachhttps://globalriskcommunity.com/profiles/blogs/5-key-ingredients-of-a-robust-omni-channel-customer-journey2019-11-28T07:26:57.000Z2019-11-28T07:26:57.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028309096,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028309096,original{{/staticFileLink}}" alt="8028309096?profile=original" width="356" height="236" /></a></p><p class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Businesses are getting increasingly complex and so are customers’ expectations. Digital organizations are digitizing their critical Customer Journeys at scale to outperform competition. These organizations are using Digitization to create streamlined journeys, which result in more agile IT units, quick delivery of new products, and improved Customer Experiences and Engagement.</p><p class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">But before embarking on digitization and streamlining Customer Journeys, organizations need to transform their products, processes, legacy systems and technology, and culture to become truly digital businesses.</p><p id="c7b4" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Streamlining multiple Customer Journeys concurrently requires integration of existing systems, building new capabilities, and deploying existing competences in a different way. Specifically, it entails embracing the following 5-phase <a class="bh cp hg hh hi hj" href="https://flevy.com/browse/flevypro/omni-channel-customer-journey-design-3984" target="_blank"><strong class="gu hk">Omni-channel Customer Journey Design</strong></a> approach that is critical for improving Customer Experiences and accomplishing higher Customer Engagement:</p><p class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf"> </p><ol><li class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf hl hm hn"><strong class="gu hk">Develop Enterprise Customer Experience Story</strong></li><li class="gs gt bz at gu b gv ho gx hp gz hq hb hr hd hs hf hl hm hn"><strong class="gu hk">Prioritize Technology Transformation Projects</strong></li><li class="gs gt bz at gu b gv ho gx hp gz hq hb hr hd hs hf hl hm hn"><strong class="gu hk">Develop a Flexible Ecosystem of Technologies and Platforms</strong></li><li id="b3b6" class="gs gt bz at gu b gv ho gx hp gz hq hb hr hd hs hf hl hm hn"><strong class="gu hk">Adapt Principles of Strong, Agile, and Lean</strong></li><li id="ba17" class="gs gt bz at gu b gv ho gx hp gz hq hb hr hd hs hf hl hm hn"><strong class="gu hk">Be Adaptive in Performance Management</strong></li></ol><p> </p><div class="ge gf de gg ak"><div class="cx cy ht"><div class="gm r de gn"><div class="hu r"><div class="gh gi dg t u gj ak es gk gl"> <img class="kv mr dg t u gj ak fs" src="https://miro.medium.com/max/1024/0*0Zu4EcnVCveluqBo.png" alt="0*0Zu4EcnVCveluqBo.png" width="866" height="650" /></div></div></div></div></div><p> </p><p id="bec6" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Now, let’s talk about the first 3 phases of the Omni-channel Customer Journey Design approach.</p><h1 id="ff6a" class="hv hw bz at as hx hy hz ia ib ic id ie if ig ih ii">Phase 1 — Develop Enterprise Customer Experience Story</h1><p class="gs gt bz at gu b gv ij gx ik gz il hb im hd in hf">Creating a Customer Experience Story calls for setting up a Customer Experience team. The Customer Experience team begins by identifying the critical factors and main concerns in their customer relationships. Around these themes, they, then, carefully outline the experiences customers may come across during each and every interaction they have with the company in the form of a story. The Enterprise Customer Experience Story is unique to every company and provides a summary of the strategy, brand, and positioning in workable terms.</p><p id="b3af" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Next, the team identifies the journeys that are able to effectively deliver the factors and features critical for the customers utilizing digitization. Each journey should be critically analyzed to assess its significance, cost advantages associated with scaling it, the governance and technical impediments, and the availability of adequate financial and leadership resources to manage it. Thorough analysis of Customer Journeys yields a plan of action that aids in creating prioritized journeys.</p><h1 class="hv hw bz at as hx hy hz ia ib ic id ie if ig ih ii">Phase 2 — Prioritize Technology Transformation Projects</h1><p id="fd6f" class="gs gt bz at gu b gv ij gx ik gz il hb im hd in hf">IT Transformation is typically the most challenging and resource hungry among other change initiatives. For instance, designing a mobile app is simple, however, it’s the linkage of the app to all the channels customers use and its integration with the <a class="bh cp hg hh hi hj" href="https://www.webopedia.com/TERM/B/back_end_system.html" target="_blank">back-end systems</a> that is complicated.</p><p id="b3b8" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">To undertake Digitization, companies should avoid digitizing each journey separately — as it fosters internal silos — and investing heavily in Internet or mobile-channel IT. A better approach for the organizations is to rather prioritize the IT initiatives to enable smooth transformation of IT architecture with the addition of more customer journeys. Standard IT components are reusable across different journeys.</p><h1 class="hv hw bz at as hx hy hz ia ib ic id ie if ig ih ii">Phase 3 — Develop a Flexible Ecosystem of Technologies and Platforms</h1><p class="gs gt bz at gu b gv ij gx ik gz il hb im hd in hf">An important consideration for digitizing core journeys and scaling digitization is to link your IT systems with the technologies and platforms working outside the firm. These external systems provide the organization several advantages, including quick access to new customers, data pools, and capabilities.</p><p id="d989" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Next-generation integration architecture should be designed in such a way that it should support open standards, dynamic interaction models, and curtail security threats. Progress in cloud computing and technology infrastructure has made quick and easy access, management, and operations of infrastructure resources possible — including networks, servers, databases, programs, and services. The skills needed to manage these <a class="bh cp hg hh hi hj" href="https://flevy.com/browse/flevypro/digital-transformation-technology-ecosystem-3447" target="_blank">technology ecosystems</a> include <a class="bh cp hg hh hi hj" href="https://en.wikipedia.org/wiki/DevOps" target="_blank">DevOps</a> experts to supervise integration of development and operations, enterprise architects, cloud engineers to manage software and cloud-computing, data scientists, and automation engineers.</p><p id="fb66" class="gs gt bz at gu b gv gw gx gy gz ha hb hc hd he hf">Interested in learning more about the other key phases of the <a class="bh cp hg hh hi hj" href="https://flevy.com/browse/flevypro/omni-channel-customer-journey-design-3984" target="_blank">Customer Journey Design approach</a>? You can download <a class="bh cp hg hh hi hj" href="https://flevy.com/browse/flevypro/omni-channel-customer-journey-design-3984" target="_blank">an editable PowerPoint on <strong class="gu hk">Omni-channel Customer Journey</strong> here</a> on the <a class="bh cp hg hh hi hj" href="https://flevy.com/browse" target="_blank">Flevy documents marketplace</a>.</p><h1 id="ef9a" class="hv hw bz at as hx hy hz ia ib ic id ie if ig ih ii">Are you a Management Consultant?</h1><p class="gs gt bz at gu b gv ij gx ik gz il hb im hd in hf">You can download this and hundreds of other <a class="bh cp hg hh hi hj" href="http://flevy.com/pro/library/frameworks" target="_blank">consulting frameworks</a> and <a class="bh cp hg hh hi hj" href="http://flevy.com/pro/library/consulting" target="_blank">consulting training guides</a> from the <a class="bh cp hg hh hi hj" href="http://flevy.com/pro/library" target="_blank">FlevyPro library</a>.</p></div>Are You Able to Maximize Impact of Customer Experience on Value Creation?https://globalriskcommunity.com/profiles/blogs/are-you-able-to-maximize-impact-of-customer-experience-on-value2019-10-21T18:05:00.000Z2019-10-21T18:05:00.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><img class="alignright size-medium wp-image-5552 align-right" src="http://flevy.com/blog/wp-content/uploads/2019/10/customer-explaining-golf-clubs-1325735-300x200.jpg" alt="" width="300" height="200" />Digital-savvy startups are disrupting markets and threatening conventional businesses. They are doing this by utilizing technology to offer new products and services and providing tailored yet uncomplicated experiences for their customers.</p><p>Likewise, large traditionally-run firms will have to keep evolving their Customer Experience approaches to secure additional avenues of revenue and to stay competitive. To accomplish this, they will need to develop capabilities to effectively utilize insights on customer preferences and design offerings as per the customers’ preferences.</p><p>Many organizations, today, are undertaking Digital Transformation programs to improve their Customer Experiences. However, a majority of these Digital Transformation initiatives fall short of securing their maximum value potential due to focusing only on improving specific touchpoints instead of confronting the entire customer journeys—spanning across several departments and channels.</p><p>To make their Customer Experience sustainable and to become Customer-centric Organizations need to clearly transform their ways of doing business, operations, and employee behaviors. It is critical to improve these fundamental support processes before embarking on initiating any Customer Experience optimization initiatives.</p><p>Customer Experience optimization facilitates in gaining more satisfied/paying customers, additional value, and better retention rates. Research reveals that the companies that have higher Customer Satisfaction levels can achieve four times growth in value compare to those that rank lower in Customer Satisfaction.</p><h3><strong>Customer Experience (CX) Approach to Value Creation</strong></h3><p>The following pragmatic 5-phase approach to <a href="https://flevy.com/browse/flevypro/value-creation-impact-of-customer-experience-cx-3966">Customer Experience Management and Value Creation</a> is of great benefit to organizations aspiring to enrich their Customer Experience, achieve clear-cut differentiation, and capture the most potential value:</p><ol><li><strong>Understand What Customers Value</strong></li><li><strong>Simplify and Streamline Offerings</strong></li><li><strong>Link Customer Value to Operational Drivers</strong></li><li><strong>Focus on Most Important Customer Journeys</strong></li><li><strong>Adopt Continuous Improvement (CI) Thinking</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/value-creation-impact-of-customer-experience-cx-3966"><img class="aligncenter size-full wp-image-5626" src="http://flevy.com/blog/wp-content/uploads/2019/10/Impact-of-CX-on-value-creation.png" alt="" width="1024" height="768" /></a></p><p>Let’s now delve deeper into the first 3 phases of the approach.</p><h3><strong>Understand What Customers Value</strong></h3><p>Ascertaining the key drivers of Customer Satisfaction is the foremost step in improving Customer Experience. A flawed approach—that many companies still employ—at the onset of a Customer Experience optimization initiative is to reduce costs associated with internal processes and exploring customer pain points. This doesn’t assist in maximizing Value Creation.</p><p>Customer-centric organizations, on the other hand, devote their time in developing a clear understanding of what really matters to their customers. This helps in deciding where to focus, <a href="https://www.investopedia.com/terms/r/rationalization.asp">rationalizing their processes</a>, and creating new experiences for the customers to generate additional value.</p><p>Great Customer Experience necessitates much more than just satisfactory interactions. Customer Satisfaction should be mapped along the entire customer journey—spanning multiple functions and channels—as customers use various channels to communicate with companies before making a transaction.</p><h3><strong>Simplify and Streamline Offerings</strong></h3><p>Alongside rationalizing the processes, it is equally important to carry out a detailed analysis of the brands, offerings, and price structures is essential to tap value from Customer Experience. After all, even the most pleasing Customer Experience cannot offset an unpredictable or exorbitantly expensive product.</p><p>Once these fundamentals are in order, organizations should investigate which interactions and Customer Journeys carry the most significance in a Customer Experience; evaluate how the organization is rated in each journey; identify and focus on the operations that need to be overhauled to improve the overall Customer Experience.</p><h3><strong>Link Customer Value to Operational Drivers</strong></h3><p>Technology and customer input provides the stimulus to streamline offerings and Customer Experience. However, the real value comes from linking the Customer Experience to core <a href="https://www.forbes.com/sites/andrewfilev/2019/04/10/differentiate-yourself-through-operations-a-roadmap-to-excellence/">operational processes</a>. Seeing journeys from the customer perspective aids in focusing on what they need and linking internal processes, structures, and KPIs to customer facilitation.</p><p>This necessitates deeper insights on elements that are of most value to the customer across a journey, pinpointing drivers of business costs and revenues, and—most importantly—inculcating the right mindsets across the organization. This detailed evaluation of customer journeys facilitates in determining operational improvements that bear the most positive effect on Customer Experience.</p><p>Interested in learning more about the other phases of the approach to managing Customer Experience? You can download <a href="https://flevy.com/browse/flevypro/value-creation-impact-of-customer-experience-cx-3966"><u>an editable PowerPoint on the <strong>Customer Experience (CX) Approach to Create Value</strong> here</u></a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>