Jon Hall

The End of IT’s Monopoly on Trust

THE END OF I.T.’S MONOPOLY ON TRUST Vital lessons from the consumer space

Jon Hall Tomorrow’s Future Today: Winter 2014

#TFT14

Jon Hall 17th year in ITSM Product Manager focused on forward evolution of ITSM UK/Australian Reading, UK With BMC Software since 2008 First TFT appearance!

Twitter: “@jonhall_”

Uber: Attacking a centuries-old trust system

EndGadget, May 2nd 2013

The Star, Toronto, Canada, December 5th 2012

The Atlantic Cities, February 6th 2014

New York City Taxi and Limousine Commission

Taxi Regulation Act (2013), Republic of Ireland

“…regulation of the conduct,

behavior, deportment and dress

for drivers…”

“Set and enforce standards

and conditions of service”

Ordinance for the Regulation of Hackney-Coachmen in London (1654)

The incumbent:

A 350 year old set of acceptable minima.

uber.com

Uber: Feedback as an incentive for excellence.

Transparency Integrated experience Customer-selected deliverer Accountable through reputation

Opacity

Fragmented experience

Allocated deliverer

Accountable to regulator

Taxi phone image credit: http://www.flickr.com/photos/ursonate

TripAdvisor: Usurping the travel guidebook

“With annual sales of more than

six million guidebooks - about a

quarter of all the English-language

guidebooks sold - it is the world’s

largest publisher of travel guides”

New Yorker Magazine, April 2005

Lonely planet rack image credit: http://www.flickr.com/photos/spcummings

BBC buys Lonely Planet

£130m BBC sells:

£51m

2007 2013

19th March 2013

61% loss

Nielsen Bookscan for the Travel Guide Market

Source: “The New Social Travel Lifestyle “ - TripAdvisor

“Total traffic in the fourth quarter grew 50% year-over-year. TripAdvisor websites attracted more than 2 billion unique visitors during 2013”

Tripadvisor Q4 Report, 11th February 2014

Lonely Planet image credit: http://www.flickr.com/photos/spcummings/

Real-time information Comprehensive coverage Crowd-sourced opinions Contextual delivery

Point-in-time information

Limited coverage

Expert opinion

Passive delivery

Yelp.com: Attacking the trust monopoly of branded chains

A one-star increase in Yelp rating leads to a 5%-9%

increase in revenue for independent restaurants.

The same effect is not felt by branded chains.

Reviews, Reputation, and Revenue. Harvard Business School 2011.

Restaurant sign image: http://www.flickr.com/photos/neutronboy/

“Historically, chain affiliation is valuable because it

reduces uncertainty about restaurant quality.

Consumer reviews are coming to serve a similar

purpose”

Unstoppable trend? The story of CourseTable

“I’d like to know which of my social contacts plan to attend each course”

“I want to know how highly people have

rated each class”

“I’m interested in seeing my best friends’ course selections”

“There was no centralized database at Yale

that allowed students to perform course

comparisons at-a-glance.

Washington Post, January 16th 2014

Two students programmed an interface that would compile everything in one place”

“…malicious activity…”

Jan 22nd 2014

“Technology has moved

faster than the faculty

could foresee...

Questions of who owns

data are evolving before

our very eyes”

Mary Miller, Dean of Students, Yale. January 2014

“We have the best

IT and computer

people at Stanford,

ready to help.” - “College Sophomore”, Jan 2014

It’s already happening to IT.

“The IT department

will make you cry...” USA University. 33,000 students.

(Financial, 5000+ employees)

(Aeropspace manufacturer, 1000-5000 employees)

(Investment bank, 1000-5000 employees)

“Lacking IT structure...”

“Too much time is wasted

on the phone to IT...”

“Terrible IT support

and resources”

“The vast majority (of business users), about 85%,

brought Evernote into the workplace themselves” Evernote CEO Phil Libin, launching Evernote Business

In APJ, 83% of employees bring their own devices

to work (41% citing contactability by clients) VMWare “New Way Of Life” Survey, Asia Pacific and Japan, 2013

IT causes 84% of business users to experience a

“severe or moderate impact” on their ability to be

productive on a monthly basis Forrester: Exploring Business And IT Friction (April 2013)

Cellphone image credit: http://www.flickr.com/photos/sergesegal/ Broken cable image credit: http://www.flickr.com/photos/jeffanddayna/

Key lesson: Embrace feedback!

“When I first started driving for Uber, my rating was lower than it is now.

Uber sent emails suggesting what I can do to improve, and they stuck with me.

Now my overall rating is 4.85.

I strive to keep my rating high and provide the best service” Uber driver on yelp.com

“A lot of people were saying

our off-brand Cheerios

tasted like cardboard, so we

changed to Fruit Loops. We got a great response to that.”

TJ Jones, Anaheim Hotel owner (From 80th ranked hotel in city to 23rd, after acting on feedback)

Moving forward: Learn from the consumer world

Feedback enabled services

Contextual support

Personal enablement

Constant, open feedback Integrated customer/provider platforms Broker of services Contextual and personal offerings Guidance and governance

Quarterly satisfaction survey

Point ITSM tools

Single source of services

Standard offerings

End-to-end control

THE OLD I.T. THE NEW I.T.

Monopoly on trust Earned trust

Thank you!

http://evolvingitsm.com

Twitter: @JonHall_

Google: +JonHallUK

With thanks to our slides sponsor, CA Technologies

Try Nimsoft for free at

ca.com/NSD-trial