Communications & High Tech As technology becomes more integral to consumers' lives, they increasingly need technology to work well and reliably. Providing technology services that meet consumers' needs represents a major market opportunity. However, it also poses challenges due to the complex technology landscape and high expectations of users. Key considerations for providers include viewing this as supporting a changing ecosystem, specializing services for specific customer segments, ensuring convenience for users, and providing consistent, high-quality support through an industrial-strength solution.

1. Communications & High Tech
From digital lifestyle
to digital lifeblood:
The increasing value of
technology that works
Kurt M. Hogan

2. As consumers become ever
more reliant on technology as
a means to live, work and play,
they increasingly need that
technology to work well, and to
work when they need it to work.
Until now, the complexity The growing market for professionally. Accenture research
improving technology shows, for example, that Web-
of this marketplace enabled mobile phone ownership
interactions with your
need has deterred many has more than tripled in two years,
customers and mobile phones have replaced
providers from fully computers as consumers’ most
addressing it—including The dimensions of this potential important technology. Also, as Figure
market opportunity are growing 1 indicates, consumers are engaged
the providers who depend rapidly. Every day, the tech user in an increasingly wide range of
on technology for their community is becoming more technology-based activities.1
dependent on digital devices, not just
own customer interactions. as the foundation of their lifestyles
Meanwhile, with the seemingly
Several considerations can as consumers, but increasingly, as
daily improvement and proliferation
a key element to maintaining their
help providers transcend businesses and the productivity of
of new devices and new ways to
interact with technology, the digital
these challenges and their employees. As technology-
ecosystem is rapidly evolving. For
take advantage of the dependent businesses proliferate
example, smartphones have broken
around the globe, users’ personal
opportunity. into the top five most frequently used
needs (e.g., entertainment and
technologies, as shown in Figure 2.2
home management) have become
interwoven with their business
Consumers realize this, which may
needs (e.g., their communications,
explain some recent Accenture market
operational and emergency
research data which brings into
requirements).
question a presumption at the heart
of the traditional business model
Usage of intelligent computing
for service providers and electronics
devices such as the personal
companies: that companies must
computer (PC) and smartphone
subsidize in-home service—beginning
has become part of the fabric of
with configuration, set-up and
our daily lives, both personally and
1 The Increasing Value of Technology that Works

3. Figure 1: Which of the following activities do you do in a typical week? How much time do you spend?
Figure 2: Most frequently used technologies
The Increasing Value of Technology that Works 2

4. management—simply as a cost of Potential opportunity for Technology service
doing business. Instead, Accenture’s an array of providers
research suggests that consumers, at should be provided
“the right time,” are willing to pay to
have “the right provider” remove some Given the wide array of different
technologies and providers currently
in a way that is
of the technological complexity of the
digital home from their lives. interacting with customers today, convenient for
there are many sectors from which
new technology services could emerge. the end user.
Even dating back to 2006, consumers
Among those best positioned today are
in an Accenture Digital Home Survey
providers who have existing, trusted
indicated their willingness to pay for • stablishing a basis for which
E
interactions and depend on those
premium services including items to upsell and cross-sell;
interactions as a way to communicate
like in-home installation and remote
with customers. Topping the list of • mproving customer
I
monitoring services. Since then, while
providers who fit that description satisfaction; and
the market has yet to fully mature,
are service providers and OEMs
consumer need has only expanded. • educing customer
R
(not counting retailers, who already
One unavoidable inference is that turnover, or churn.
aggressively position these types of
the opportunity to provide these
services at point of sale). Whether Reinforcing the risk of ignoring
technology services hinges upon
it be the broadband provider whose the role of technology services, an
offering services to customers on their
users rely upon the PC as a gateway to Accenture 2009 customer satisfaction
terms, on their schedule and in a way
its service, or the OEM who provides study shows that approximately
that is natural for the provider.
warranty supports for a device in the two-thirds of consumers switched
home, both have periodic, trusted one or more providers during the past
touchpoints with the customer today, year. Globally, the study found that
and both have motivations to improve customer service, not price, was the
the customer’s experience, including: number-one reason for switching
3 The Increasing Value of Technology that Works

5. providers.3 The state of the underlying technical configurations – each of of fact, developing and maintaining
technology no doubt plays a role in the which is changing frequently. such a technology platform and a
customer perception of service quality; workforce of skilled technologists
and when the quality is not what Lack of clarity regarding is not the core competency of most
customers expect, they have shown enterprises. As a result, many have
an inclination to vote with their feet. market positioning looked to outsourcing as an attractive
option, but have struggled with
In surveys, technology users have verifying that an outsourced solution is
Challenges to improving and pointed first to two categories of a cohesive part of existing operational
monetizing technology services company—electronics providers and touchpoints experienced by end
communications services providers—as customers.
There is no doubt that providing and places where they would initially look
monetizing new technology services— for help with their technology issues.
in a way that meets the expectations Yet while service providers are well Highly demanding
of today’s growing market of intensive positioned from the standpoint of customer expectations
technology users—is a complicated experience, it is not yet clear where
proposal. It involves dealing with consumers will ultimately turn. Likely, Enterprises’ concerns over the required
complexities in several discrete they will instead gravitate to a supplier breadth of the technology services
but related areas: the marketplace who is perceived as most efficiently customers expect are justified. Users
environment, the breadth of services meeting their needs—a standard are increasingly demanding several
required, highly demanding customer that today appears to favor retailers. service dimensions including:
expectations, and a lack of definition The lack of one clear and consistent
from customers regarding who they preference in this space, however, • uality: The recognition on the
Q
expect to provide the service. represents an opportunity for new part of the service provider that the
services to be introduced to tech users consumer’s individual technology
A complex marketplace by other types of providers. ecosystem is highly personal
environment to them, that it represents a
One thing is clear: Tech users know considerable investment, and that
they want to work with someone
Tech users’ technology landscape is it contains highly personalized
they trust; so quality and the ability
becoming ever more complex, with content that is of importance.
to work on the terms of the user
a large number of options at their are critical factors that will drive
disposal. As consumer electronics • lexibility: The service provider’s
F
the ultimate leaders in this space.
players emerge and innovate, leading ability to provide breadth
providers will continually compete of coverage embracing the
by introducing technologies that The breadth of services required problems that customers are
range from fully open systems to fully most likely to encounter.
proprietary systems and every flavor in There is also a growing recognition
between. Today, very popular vertically that the increasing complexity of • implicity: The ability to keep
S
integrated devices within a product technology ecosystems, coupled the user’s technology “up and
family co-exist with standalone with consumers’ demands for broad- running” without great deals of
technologies, with the user left to sort based problem-solving, will lead to personal effort by the end user.
out how they work together. In the added costs for the provider, and
absence of collective standardization, could potentially lead to added In summary, tech users need
consumers are making individual dissatisfaction for the customer— industrialized support across a
decisions regarding the technologies unless it is handled reliably. This highly diverse and rapidly changing
that deliver value for their needs. breadth of technology requirements technology base. To date, traditional
This trend is resulting in highly poses challenges for any given support models, such as call center-
differentiated, ever-evolving versions enterprise seeking to address this focused approaches or software-
of a digital “home” or “ecosystem,” market. driven models, have been unable to
with evolving permutations. We effectively meet the full breadth of
can expect this trend to continue, In fact, due to the rapid rate at tech users’ increasing technology
with no single “silver bullet” support which new applications are being support needs cost-effectively.
technology to “rule them all.” developed and new devices deployed,
Standalone support technology or it is very difficult for most enterprises Regardless of how a given enterprise
agent training becomes dated as soon to maintain the comprehensive may choose to handle the provision of
as the next new device is deployed. In technology platform and network of premium technology services, here are
short, serving the needs of the “digital professionals that would be required to several considerations that apply:
ecosystem” really means interacting support such a service capability in a
effectively with thousands of different cost-effective manner. In simple point
The Increasing Value of Technology that Works 4

6. Key considerations for establishing
premium technology services
• Addressing today’s digital • The service will benefit from case to case. Solutions in this
ecosystem requires a systems approaching customers naturally. space must be of high quality and
integration mindset. Enterprises Whatever an enterprise’s core cost-efficient relative to the tech
entering this space should consider market segment may be, the investment they support. All these
viewing this space as providing a premium technology services points argue for an industrialized
set of changing technology services, offered need to be closely solution which can produce
as distinct from their historical connected to their core value highly consistent outcomes cost-
mindset of providing technical proposition and, where possible, effectively.
support for a fixed asset. to extend from touchpoints they
already possess. • Technology services should be
• For higher value, technology capable of becoming a brand
services should be specialized for • priority must be placed on
A differentiator by creating an
the customer base. A solution convenience. Technology service enhanced customer experience.
needs to provide “the right services should be provided in a way that As Matt Healey of IDC points out,
for your customers” by being highly is convenient for the end user, “Critical to the success of digital
segment aware, with the ability to including the capability for cases to home services will be service
align experience to the terms of the be worked on overnight, or stopped providers that not only provide
customer. It should accommodate in-flight and picked up later. a remote support offering that
the broad range of technologies in delivers customer satisfaction, but
play with your customers, and be • The solution should be “industrial one that protects a brand’s image
capable of handling the increasing strength.” To meet end users’ and increases sales.” Accenture
complexity of applications and increasingly exacting requirements research confirms that customers
hardware, while accounting for the of quality and consistency—and are willing to reward good service:
rapidity with which they are being provide the support their lifestyles 71 percent are more likely to buy
deployed. and businesses require—positive from the same company if they
results need to be replicable from have experienced quality service,
5 The Increasing Value of Technology that Works

7. while 58 percent are more likely to
refer friends and family.4 In a highly
through the technical complexities of
the digital home. Part of the answer to
Quality and the
connected universe, end users helping consumers maneuver through ability to work on the
this complexity lies in new ways to
will refer good or bad service to a
broad network of people beyond make devices and networking easier to
terms of the user are
themselves. use and manage. critical factors that
To summarize, for today’s end users, Now more than ever, another critical
will drive the ultimate
technology is not a “nice to have,” part is in rethinking the business leaders in this space.
but a “must have” – a crucial element model for providing premium technical
for managing their lives and their services—rather than merely delivering
businesses. Just as people’s lifestyles tactical in-home support. Traditionally
may suffer if their cell phones don’t seen as a cost drain, premium
work, their businesses may suffer if technology services can now be a
their PC systems and other systems means for driving high performance—
don’t work. Such a climate demands helping generate revenue and reduce
industrial-strength service. churn by helping create satisfied
customers.
Accenture has consistently contended
that if consumer electronics
companies and service providers are
to utilize digital-home trends as a
means of pursuing profitable growth,
they need to rethink their business
models, organizations, processes and
systems for helping the consumer sort
The Increasing Value of Technology that Works 6

8. 1 Accenture, “Finding Growth:
Emergence of a New Consumer
Technology Paradigm:
The 2011 Accenture Consumer
Electronics Products and
Services UsageReport,”
www.accenture.com/ConsumerTech2011.
2 Ibid.
3 Accenture, “Start Making Sense:
Defining Customer Experiences
that Enable High Performance,”
Accenture Global Consumer
Satisfaction Report, 2009.
4 Accenture,
“Digital Home
Consumer Poll,” 2009.
Copyright © 2011 Accenture About the author Accenture is a global management
All rights reserved. Kurt Hogan is a Senior Executive who consulting, technology services and
leads Premium Technology Services outsourcing company, with approximately
Accenture, its logo, and within the Accenture Communications 211,000 people serving clients in
High Performance Delivered and High Tech Practice. more than 120 countries. Combining
are trademarks of Accenture. unparalleled experience, comprehensive
Contact us capabilities across all industries and
Please visit www.accenture.com/ business functions, and extensive research
premium-technology-services on the world’s most successful companies,
for more information or contact Accenture collaborates with clients to
kurt.m.hogan@accenture.com. help them become high-performance
businesses and governments. The company
generated net revenues of US$21.6 billion
for the fiscal year ended Aug. 31, 2010.
Its home page is www.accenture.com.