identity live sydney 2017 - tim sheedy

© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Delivering a “Customer First” Business with Digital Identity

Tim Sheedy, Vice President, Principal Analyst

3© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Companies

Customers

The age of the customer has changed the game

Past:

Customer forced to move

towards business to

participate in its process

Present (& Future):

Business forced to move towards

customer to participate in their

journey (story)

© 2014 Forrester Research, Inc. Reproduction Prohibited 4

75%of Asia Pacific business and

technology decision-makers assert

that improving customers’

experience is a critical or high

business priority.

Forrester Data Global Business Technographics® Priorities And Journey Survey, 2017


Great customer experiences pay off

-3%

51%

78%

-20%

0%

20%

40%

60%

80%

100%

Customer experience indexlaggards

Overall S&P performance Customer experience indexleaders

Forrester’s Customer Experience Index (CX Index™) mapped to stock performance over the past 7 years

Source: Forrester Research and Watermark Consulting


Source: Annual reports for fiscal years 2010 and 2014 from ING-DiBa and Commerzbank; *US Securities and Exchange Commission filings by Progressive

and Travelers

Better Customer Experience Correlated to Higher Revenues


Consumers are fundamentally digital


Omnichannel is real and happening – in your customer’s mind at least


Where the transaction occurs is irrelevant


IoT is taking off – but the business is shifting the IoT talk from tech to connected customers . . .

“We’re going from using the customer as a sensor find out about the product’s performance, to putting sensors in the product to learn about the customer’s experience.”

Russ Fadel

President of ThingWorx — a PTC company

At LiveWorx conference, May 2015


Two fundamental IoT scenarios emerge from different business stakeholders

Business

owner

examples

Relevant

types of

companies

Customer

impact

IoT sensor

location

• Product design

• Product engineering

• Chief product officer

• Chief technology officer

• Chief marketing officer

Only product companies

(e.g., discrete manufacturing or

consumable goods)

At the customer’s point of use with

a physical product:

• In products (e.g., machinery,

equipment, and appliances)

• On product dispensers (e.g., coffee

maker)

Direct

• Improves the CX with a specific

physical product at the point of use

• Line of business

• General manager

• Chief of operations

• Chief operations officer

All companies

In multiple company assets, across a

business process, including a customer

experience (CX):

• Internal operations (e.g., manufacturing)

• Customer-facing operations (e.g., retail

stores and amusement parks)

Indirect

• Improves the service experience of the

customer interacting with company ops

Business process

Source: Brief: The Two Fundamental IoT Business Opportunities Forrester report

Customer product

https://www.forrester.com/report/Brief+The+Two+Fundamental+IoT+Business+Opportunities/-/E-RES129498


You need to accelerate your digital transition


Digital business is different

Bolt-on

Functional efficiency

Safety and cost

reduction

Traditional business

Better products

Digitally enhanced

products and services

Cross-functional agility

Speed and innovation

Digital business

Enhance customers’

ecosystem of value

Digital touchpoints

Operational

Excellence

Technology

attitude

Value proposition


Digital businesses continuously exploit digital

technologies to both create new sources of

value for customers and increase operational

agility in service of customers.


The future requires mastery of digital business


Digital initiatives will not succeed unless

businesses:1. Align around digital transformation.

2. Create a friction-less customer life cycle.

3. Focus on employees, too.

4. Turn good quality data into good quality insights.

5. Have good technology integrations.

6. Address privacy concerns.


Importance of optimum CX is accelerating CIAM demand

› In the age of the customer, one extra link can drive down

retention.

› CIAM will become more of a customer engagement

platform owned by the CMO and less of a security

solution owned by the CISO/IT.

› IAM can provide the foundation for superior CX.

› Many digital businesses will get serious about deploying

CIAM to keep up with customers’ requirements around

seamless registration and authentication.


20

Employee IAM Consumer IAM

Key business drivers Reduce risk and improve

operational efficiencies

Attract and retain customers

Scale Thousands of users Millions of users and high

transaction volume

Identity evolution Employees known when hired Consumers are unknown at initial

contact and become identified over

time

Privacy protections Employer-centric User-centric

Service level requirements High Very high

User involvement Employer sets policies and

procedures; controls endpoints

User sets preferences and profile;

user controls endpoints

Data usage Centrally managed and controlled Shared across org to support

business initiatives

Traditional IAM versus CIAM


CIAM platforms are in demand


Asia is leading the world in CIAM adoption


23

› Increase customer acquisition rates

• Frictionless registration along with reusable access

credentials.

› Deliver deep customer insights across all channels

• Rich identity information that can be leveraged across

channels enables better decisions and improved digital

experiences

› Reduce disjointed customer experiences

• Common identity profile increases cross-sells, up-sells,

and ad revenue.

The value of CIAM


24

› Maintain data governance and transparency

• Enforce corporate policies and end user privacy directives

increasing customer trust and confidence.

› Accelerate delivery of personalised products and

services

• Eliminating identity silos reduces the costs and time it

takes to bring additional digital products and services

online.

The value of CIAM


25

› Dump homegrown approaches for managing

customer identities

› Know your customer before selecting a solution

• Are your customers younger? More mobile-centric?

From specific geographies?

› Balance usability with security

• Balance easy-to-use, multichannel access (mobile, web)

against security and privacy needs of users and to

minimise fraudulent users and transactions.

CIAM recommendations


26

› Plan for scale

• Don’t just focus on user counts. Assess peak

usage/capacity, such as a holiday shopping season, to

ensure that customers will remain delighted.

› Plan for omnichannel

• Don’t overlook the importance of providing a common

user experience across all channels.

CIAM recommendations


Security and management of consumer identities is

an essential component of this!

Customer expectations have changed.

Customers want a faster, better, cheaper, higher

level of service.

To compete: You must differentiate to become great,

as good is not good enough anymore

FORRESTER.COM

Thank you© 2017 FORRESTER. REPRODUCTION PROHIBITED.

Tim Sheedy

+61.2.8249.8812

[email protected]

Twitter: @timbo2002