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Companies are designed to keep customers out

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Companies increasingly have to accommodate and work on the premise of the customer. Adding huge strain to the current model of management - designed to keep customers out.

Publié dans : Business

Companies are designed to keep customers out

  1. 1. Companies are designed to out! customers keep VIA CHUCK COKER ON FLICKR.COM don’t bring a knife to a gunfight - OUR 19TH CENTURY MODEL FOR COMMUNICATION IS BREAKING UNDER THE PRESSURE OF 21ST CENTURY CUSTOMERS, MARKETS AND SOCIETY.
  2. 2. CORE IDEA / GAP / CHALLENGE DISCUSSED IN THE TALK: companies increasingly have to accommodate and woRk on the premise of the customer. adding huge strain to the current model of management - designed to keep customers out.
  3. 3. link throughout the presentation I HAVE ADDED LINKS. just click: I HAVE TRIED TO DESIGN A VALUABLE RESOURCE - WITH DIRECT LINKS TO WHERE ALL THE IDEAS AND THOUGHTS ARE COMING FROM.
  4. 4. communication is marketing is distribution is product EVERYTHING IS THE INTERFACE BETWEEN THE CUSTOMER AND THE COMPANY PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT PART I:
  5. 5. “Marketing is not a function; it is the whole business seen from the customer’s point of view.” - PETER DRUCKER - PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  6. 6. Marketing is not magicIF THE PRODUCT DOES EVERYTHING IT CAN TO KEEP CUSTOMERS OUT - THEN MARKETING CAN’T FIX THAT. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  7. 7. This makes customer activation an integrated part of the product and it makes marketing and products the same thing - because they both have to accommodate and work on the premise of the customer. THE THIRD WAVE OF TECH. WELCOME TO WHAT TECHNOLOGY IS BRINGING NOW ISN’T JUST IMPROVEMENTS AND EFFICIENCY AROUND THE PRODUCT - IN THE COMPANY’S INTERNAL AND EXTERNAL VALUE CHAINS - IT IS CHANGES TO THE NATURE OF THE PRODUCTS THEMSELVES. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  8. 8. Before the advent of modern information technology, products were mechanical and activities in the value chain were performed using manual, paper processes and verbal communication. The first wave of IT, during the 1960s and 1970s, automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource planning. (See “How Information Gives You Competitive Advantage,” by Michael Porter and Victor Millar, HBR, July 1985.) The productivity of activities dramatically increased, in part because huge amounts of new data could be captured and analyzed in each activity. This led to the standardization of processes across companies— and raised a dilemma for companies about how to capture IT’s operational benefits while maintaining distinctive strategies. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION The rise of the internet, with its inexpensive and ubiquitous connectivity, unleashed the second wave of IT-driven transformation, in the 1980s and 1990s (see Michael Porter’s “Strategy and the Internet,” HBR, March 2001). This enabled coordination and integration across individual activities; with outside suppliers, channels, and customers; and across geography. It allowed firms, for example, to closely integrate globally distributed supply chains. The first two waves gave rise to huge productivity gains and growth across the economy. While the value chain was transformed, however, products themselves were largely unaffected. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION Now, in the third wave, IT is becoming an integral part of the product itself. Embedded sensors, processors, software, and connectivity in products (in effect, computers are being put inside products), coupled with a product cloud in which product data is stored and analyzed and some applications are run, are driving dramatic improvements in product functionality and performance. Massive amounts of new product-usage data enable many of those improvements. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION I II III link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  9. 9. WHAT MAKES SMART, CONNECTED PRODUCTS FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET, BUT THE CHANGING NATURE OF THE “THINGS”. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  10. 10. SPEAKER NOTES: This quote went viral on LinkedIn in March 2015. It seemed to hit a nerve.. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  11. 11. Tom Goodwin is senior vice president of strategy and innovation at Havas Media. It’s by Tom Goodwin,arguing that the coming battle for the customers will on the customer interfaces. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  12. 12. THESE COMPANIES REALIZE THAT THE MODERN AGE IS A TIME OF SCARCE ATTENTION AND ABUNDANT CONNECTIVITY, WHERE SMARTPHONES ARE OUR PRIMARY ACCESS AND POINT TO EVERYTHING; WHERE MONEY AND EVERYTHING IS DIGITAL;  - TOM GOODWIN - PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link where the interface layer is where the profit is; your companies most profound business. WHERE PHYSICAL ASSETS AND EMPLOYEES ARE LIABILITIES; and where providing a slick, best in class human experience will create
  13. 13. “TO MANY MANAGERS, THE PRODUCT IS THE BUSINESS,” WRITES NIRAJ DAWAR IN TILT. “FIRMS CONTINUE TO SPEND INORDINATE AMOUNTS OF TIME, EFFORT, AND RESOURCES ON THEIR PRODUCTS. IN FACT, BUSINESSES ARE STRUCTURED AROUND THEIR PRODUCTS… BUT, THE ANSWER TO QUESTIONS LIKE ‘WHY DO CUSTOMERS BUY FROM US?’ DON’T RESIDE IN PRODUCTS. THEY RESIDE ALMOST ENTIRELY IN THE INTERACTIONS THAT TAKE PLACE IN THE MARKETPLACE.” - STEVE DENNING - link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  14. 14. EFFICIENCY STANDARDIZATION COMPANIES CARE ABOUT THIS HARMONIZES POORLY WITH UNPREDICTABLE CUSTOMER BEHAVIOR AND NON-ALIGNED PRIORITIES & PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  15. 15. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  16. 16. THE CURRENT PRACTICE OF MANAGEMENT IS NOT ALIGNED TO A NEW WORLD WHERE CUSTOMERS SUDDENLY BECOME AN IMPORTANT STRATEGIC ASSET. COMPANIES HAVE BEEN DESIGNED TO KEEP CUSTOMERS OUT. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  17. 17. BRAND, DESIGN AND ADVERTISING ARE ALL TOOLS TO SAFELY KEEP CUSTOMERS ON THE OUTSIDE. IF COMPANIES ARE TO REAP THE BENEFIT OF DELIGHTING CUSTOMERS - THEY NEED TO RETHINK / REDO THE WAY THEY MANAGE THEIR COMPANY and market their products. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  18. 18. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE CUSTOMER-JOB-TO-BE- DONE THE COMPANY HELPS SOLVE WHEN IT LAUNCHES
  19. 19. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE JOB IT IS HELPING CUSTOMERS SOLVE TODAY [COMPANIES GET STUCK IN THE IDEA OF THE ORIGINAL JOB. NOT SEEING THAT AS PEOPLE ARE PERFORMING AND SOLVING THE JOB THEY REDESIGN AND FRAGMENT IT. COMPANIES GET STUCK ON THE MAIN DESIGN, IGNORING CONCIOUSLY THE EXTENSIONS THAT EMERGE]
  20. 20. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE JOB THE COMPANY IS SOLVING IN THE FUTURE [EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB]
  21. 21. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link
  22. 22. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  23. 23. “So, the simplest explanation you’ll ever hear of why succesful organizations ultimately fail is this: They fail when the leaders fail to write of their own depreciating intellectual capital”. - GARY HAMEL link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  24. 24. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  25. 25. 43% of ceos now include customers in business strategy development. 60% expect to do so in the future. The area in which CEOS expect to see customer influence grow the most; their business strategy. - BRIDGET VAN KRALINGEN, SENIOR VICE PRESIDENT, IBM GLOBAL BUSINESS SERVICES link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  26. 26. - CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN, HBR.ORG, AN ANTHROPOLOGIST WALKS INTO A BAR link The biggest challenge CEOs face is the so called complexity gap. CEOs see a lack of customer insight as their biggest deficit in managing complexity. .. And rank “customer obsession” as the most critical leadership trait. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  27. 27. IBM: CEOs say customers come second only to the c-suite in terms of the strategic influence they wield (2013) link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  28. 28. CXOS MOST RADICAL SHIFT MAY BE A NEW VIEW ON WHAT IT MEANS TO COLLABORATE WITH CUSTOMERS. “In the next few years we want to build deep, strategic relationships with our customers, enterprise-to-enterprise relationships where the ‘customer is for life.’” link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  29. 29. WE IDENTIFIED THREE KEY THEMES THAT WILL HELP YOU SHAPE YOUR ORGANIZATION’S FUTURE: •Open up to customer influence
 • Pioneer digital-physical innovation
 • Craft engaging customer experiences link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  30. 30. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  31. 31. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  32. 32. “Customer experience … is a fundamental dimension of how a company competes.” - JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  33. 33. link We realized that if we didn’t build our strategy around how customers experience our products, a start-up with that focus could eventually overtake us.” - PHILIP GERSKOVICH, SENIOR VICE PRESIDENT, ZEBRA TECHNOLOGIES “Too many companies see customer experience as a slogan exercise. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  34. 34. Ed Thompson, an analyst at market research firm Gartner, says: “Between 5% and 10% of companies truly have a customer culture at their core, but the rest have been forced to care because all other means of differentiation have been eroded over time. That’s why it is currently a hot topic and has been very high on CEO agendas for the last three years or so.” In many consumer sectors, it has become increasingly difficult for organisations to really stand out from the crowd in terms of pricing, products or services.As a result, the last great bastion of differentiation in recent years has become that of customer experience – and that seems unlikely to change any time soon. “the rest have been forced to care because all other means of differentiation have been eroded over time.” link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  35. 35. link accepting customers as active stakeholders is one sure way to quell the factions and unite the C-suite in a common purpose. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  36. 36. PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUTPARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT The idea that customers benefit from engagement with their insurance needs is part of Progressive’s philosophy. Encouraging the use of products and services that foster active involvement, we can improve the experience for everyone. link
  37. 37. link If one issue has the potential to unite the C-suite to act in concert, establishing trust- based relationships with customers stands at the top. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  38. 38. Apple, almost bankrupt in 1997 after years of 20th century managerial approach to management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers. Spending four years cleaning up the company and throwing out employees who had no direct impact on contributing to customer value. In 2001 Jobs had changed the company and its culture and set it up for large scale rapid innovation - and the story of its success is widely known. PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT link SUCCESSFUL COMPANIES: PARTII:SUCCESSFULCOMPANIES PART II: PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  39. 39. link PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  40. 40. PUT THE MOST IMPORTANT PEOPLE INTO TEAMS WORKING AUTONOMOUSLY ON THE CUSTOMERS MOST IMPORTANT PROBLEMS. link successful companies: PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  41. 41. “AS WE CONFIRMED IN OUR “NEXT 30-YEAR VISION,” WHICH WE CREATED IN 2010, OUR ULTIMATE GOAL IS TO ALLEVIATE SADNESS AND INCREASE EVERYONE'S HAPPINESS TO THE GREATEST EXTENT POSSIBLE THROUGH THE INFORMATION REVOLUTION.” - LETTER FROM THE CEO MESSAGE - link PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  42. 42. but NONE OF THIS helpS if we are not seeing the bigger picture… PART III: PARTIII:THEBIGPICTURE IMAGE BY BEN LANSKY ON FLICKR.COM PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  43. 43. PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  44. 44. PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  45. 45. PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link
  46. 46. “The problems that we can solve as a species, is fundamentally limited by out capacity to manage. to bring people together, to coordinate, to accomplish things at scale. - And I’m arguing today that this technology has to be reinvented, root and branch, it is a problem that is so urgent, so complex and so eminently worthwhile. That none of us who have a stake in the future of humanity should be sitting at the sidelines.” - GARY HAMEL PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link
  47. 47. PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  48. 48. THE REASON CUSTOMERS DON’T CARE IS BECAUSE COMPANIES DON’T CARE PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  49. 49. PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  50. 50. customer experience 2004 WEBSITE 2011 MOBILE FIRST 2015 information architecture User experience Analytics CloudIOT Mobile Collab. tech 2017 outcome economy MANAGEMENT CROSS-CHANNEL OMNI+DELIVERY+PRODUCT ACTIVE COLLABORATION PARTNERING WITH THE CUSTOMER EVERY DAY TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1 PASSIVE OFFER SALES & ZERO MOMENTS OF TRUTH CHANNEL 2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  51. 51. THANK YOU FOR MORE RESOURCES AND IDEAS ON THIS SUBJECT JOIN MY KNOWLEDGE NETWORK ON LINKEDIN https://no.linkedin.com/in/helgetenno HELGE TENNØ JOKULL OR VISIT HELGETENNO.COM

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