Vital Trends in Digital Experience and Transformation in 2016 | Dreamforce 2016 by Dion Hinchcliffe

Vital Trends in Digital Experience
and Transformation in 2016
Dion Hinchcliffe
Chief Strategy Officer
7Summits, Inc.
dion.hinchcliffe@7summitsinc.com
@dhinchcliffe
WHAT’S NEXT IN EMERGING BUSINESS + TECH. WHAT IT MEANS TO THE ENTERPRISE.

Dion Hinchcliffe
Chief Strategy Officer, 7Summits
ZDNet Contributor
@dhinchcliffe

What’s Next in Emerging Tech?
For Which Your Organization Must Begin Planning and Preparing in 2016

(cc) Some Rights Reserved. 2016, 7Summits Inc. by @dhinchcliffe
We’ll look at today:
• Key emerging technologies that
organizations should be considering
• With an emphasis on digital/social
engagement
• Why these these technologies and
trends are important to evaluate
• What are the key takeaways, actions,
and preparatory tasks?
But must prepare more effectively for a fast arriving digital future
Organizations continue to grapple with digital fundamentals

Emerging Technology Rate of Change At All Time High
Growth of Technology and Human Success: Hand in Hand
1 2
Technology Growing and Change Fastest in History Which Overall Has Been Very Good for Us
Human Population over Time

And Our Organizations Must Face Emerging Tech to Survive
Primary Cause of Failure: Lack of Tech Adaptation

More Change in Work, Business, & Tech in the Next Ten Years
Than the Last 40 Combined
Insight: Linear Thinking Does
Not Prepare us for Exponential Times

Understanding Exponential Tech Change Helps Us Prepare
Enabling Us to Anticipate the Nearly Unlimited Value Potential
1 2Insight: The Value of Digital is Driven by
Power Laws That Pay Off Big Downstream
But Our Organizations Only Change
Linearly, or Logarithmically at Best
The Payoff of Power Laws  
(Like Moore’s Law) Over Time

Yet Each Generation Keeps Coming on Faster Than the Last
Exhausting our Traditional Approach to Technology Enablement

What Tech Should Most Organizations Be Focusing on Today?

And the next generation of technology is very
different than today’s.
Forcing us to:
• Learn all new platforms and technologies
• Think about even more novel new ways to engage
• Tap into very different forms of value creation
• Find new ways to adapt to digital change more
sustainably
Technology is Reshaping Expectations + Enabling New Possibilities

New Platforms and Technologies that Orgs are Still Largely Unfamiliar With
mobile/social payment platforms

We Must Create and Unleash Value Creation in Exponential Times
Key properties of digital business
• Decentralized
• Network-centric
• Asynchronous
• Scalable
• Emergent
• Connected
• Continuous
• Sustainable

Digital Transformation must go Hand-in-Hand with Human Transformation
Co-Evolution
Insight for 2016: Leaders are often the biggest obstacles to digital transformation, with boards least prepared.

Top Priorities in Digital Transformation in 2016
Source: Altimeter

So What’s
Coming
Next in
Digital
Experience
in 2016 and
Beyond?

Wearables
Key Events
• Apple Watch + Fitbit
• Watch OS 3
• Hitachi Business Microscope
• 2016 saw steady but slower
than expected growth
Why to Prioritize
• Always on the person of key
stakeholders
• More opportunities to engage
• Essential vector in
omnichannel CX
• Healthcare use cases
digital tech

Digital Assistants and Bots Key Events
• Watson
• Siri and Alexa
• The Chatbot Revolution
Why to Prioritize
• Frictionless UIs
• Work shifts from DIY to
do-it-for-you
• More productivity
• High leverage use
cases
digital tech
(100+)

Digital Engagement Becoming Conversational
From - There’s an App for that
To - There’s a Bot for that
Text/Voice + Natural Language
Processing + Agent-Based AI
Less Friction, Much Higher Leverage
Bots Outpacing
Apps on
Facebook

Brain/Machine Interfaces Key Events
• Technology working in
the lab
• Cost point dropping to
mass market level in 36
months
Why to Prioritize
• Immersive new UX
• More productivity
• Powerful new types of
applications
• Path to 4th Platform
digital tech

Virtual and Mixed Reality Platforms Key Events
• Oculus Rift & Magic Leap
• Google Cardboard
• Apps
• Low cost
Why to Prioritize
• Path to mind/machine
interfaces
• Enable unique applications
not otherwise possible
• New modes of
communication and
collaboration
digital tech

Microframeworks + Containers Key Events
• Critical mass of new
microframeworks and
container offerings like Docker
• Need for much faster digital
solutions
• Enables stunningly fast digital
development + run time ops
Why to Prioritize
• Digital transformation
accelerator
• Enable rapid digital
experiments: Better
hackathons
• 64% plan to mainstream
container use within a year.
digital tech

Machine Learning and Artificial Intelligence
Will Automate Most Work Over Time
By 2020, $1000 will buy computing
power equal to 1 human
In the Next Decade AI Goes from
Almost Nothing to $12B industry

Low Code Platforms
Key Events
• First mass market low code
models arrive
• Quickbase, Zapier,
IFTTT, Hooks, Mendix
• Nearly everything has an
API now
• There’s now a Gartner Magic
Quadrant for Low Code
Why to Prioritize
• Enables citizen developer
• Shortest path to digital value
• Tool for grassroots digital
transformation
digital tech

Robotic Process Automation Key Events
• Effective new solutions
• Improvements to machine
learning algorithms
• Rapid industry growth in
2016
Why to Prioritize
• Next avenue of
automation of mid-level
tasks
• Accuracy and speed
• Lower cost
• Less workforce
digital tech

Applied Machine Learning
Key Events
• Maturity of open source and
commercial offerings
• Weka, Mahout, DeepLearning4J,
dozens of others
• Increasingly impressive real-world
examples
• Roboadvisors
• Clinical advisors
• Rapid expansion into verticals like
healthcare
Why to Prioritize
• Unleashes innovation and
opportunity capacity
• Scalable new resource for analytics
and business insight
• Competitive advantage: Make
decisions based on all data faster
than competitors
digital tech

The Blockchain Key Events
• Proof of effectiveness in Bitcoin
• $10B market cap
• A reliable way to do financial
transactions with no central
authority
• Experimentation and adoption by
many in the traditional financial
services continues in 2016
Why to Prioritize
• New form of distributed open
record keeping
• Creates transparency and trust in
digital ecosystems
• Is being used by many new
digital competitors as proof of life
digital tech
Blockchain Global Interest Over Time

Future Skilling
digital human
Key Events
• Increasing digital skill gaps in the
workforce
• Need to position for faster digital
change
• Need to get ahead of workforce
learning
• Often using learning
communities
Why to Prioritize
• Ability to reskill workforce for
digital change
• Seize opportunities better and
faster
• Increase and sustain employee
engagement
• Better results and productivity

Citizen Developer
digital human
Key Events
• Increased rate of new apps
and tech
• Growing backlogs in the
traditional IT department
• Rise of new Low Code
platforms
• Growth of the industry
continued strongly in 2016
Why to Prioritize
• Solve more business problems
with local experience
• Faster application development
• Better fit to business needs
• Improved scale of digital
transformation

Work Hacking
digital human
Key Events
• Proliferation of complexity,
technology, rules, and regulations
• Simple user-led techniques that
can be used to get things done
better fast
• 2016 has seen the hacking of
work meme at an all time high
Why to Prioritize
• Empowering of workers to fix
what’s ‘broken’
• Easily tapped pool of innovation
• Improved employee engagement
• A way to speed up digital
transformation on the business
side

Beyond DevOps: Adding Innovation + Security
Continuos Innovation
Continuos Security
Key Events
• DevOps has proven a
success, with more than half
of all orgs using it 2015
• But it’s not yet a complete
enough model
• In 2016 security finally
becoming a devops priority,
but innovation programs falling
behind
Why to Prioritize
• Ensures security, the top issue
of the digital era, is baked into
all tech enablement
• Ensures innovation efforts are
directly and continuously
connected to the tech
development effort
digital human
All Digital
Development
Activities in a
Single Stack

Digital Management Models
Key Events
• Traditional industry age
management not up to task of
managing in flatter, faster,
networked digital era
• New models emerging and
experimented — and enabled
by collaborative tech and
communities— by thousands
of organizations
• Some retrenching in 2016 but
new experiments as well
Why to Prioritize
• Adopt faster, more effective
forms of management
• Enable productivity, efficiency,
innovation, and faster action
against opportunities
digital human

SocBizOps: Sustained functional engagement
social human
Key Events
• Social media fragmentation makes
acting on social data and events
disconnected to key business
functions
• Push to close the gap between
events and action to create
continuous engagement
• Happening in community
management teams
• 2016 is seeing growth most in top
of the funnel operations (integrated
demand gen/marketing/sales) and
employee advocacy
Why to Prioritize
• Better connect stakeholder
engagement with company
operations
• Produce faster and sustained
results in customer care,
marketing, sales, operations, and
innovation

Holistic Social Business Key Events
• Aging pre-networked
processes not working
well in many
organizations
• Large orgs seeking more
collaborative, open, and
decentralized processes
Why to Prioritize
• The usual KPI benefits
• More sustainable change
processes
• Better tech adaptation
and route to digital
transformation
• 280,000
employees
• 25 top level
use cases
• Redesigned
core
business
processes
for social
social human

Holistic Social Business Continued
Using
Online
Community
At the
Center of
Work

Social HR 
and Sales
Key Events
• HR seeking to adapt and
provide value in new
operation environment
• Social professional
networks now top
source of quality hires
• Sales processes move to
social channels in most orgs
Why to Prioritize
• Better talent and resource
management
• Especially recruiting
• Ability to meet customers
and employees in the
channels they use the most
social human
Source: LinkedIn, 2016

Swarm Working
Key Events
• Rise of crowd everything in the wild
• Lack of equivalent capabilities in
the enterprise
• Tools emerging in the enterprise to
make swarm/crowd working
possible
• Office365 Groups
• Continued growth of platforms like
uTest in 2016
• 200,000 members who can
swarm
• Online community customer care
service service grew rapidly in 2016
Why to Prioritize
• Faster activation on key business
challenges
• More effective resolution of
exception scenarios and high
priority business events
social human

Social  
Performance  
Management
Key Events
• The emerging of tools to
better monitor and guide
our stakeholders
• Growing number of orgs
using process
improvement using social
business tools
Why to Prioritize
• More comprehensive and
guided approach to
ensuring performance
results using network
engagement
• Shortest route to
optimization and value
creation
social human

AI-Based Social Analytics
social tech

Autonomous Pure Digital Knowledge Workers Will Alter Work Forever
Leading to New Economic Models and Untold Value Creation
Menial Labor
Artisanal Work
Rote Service Tasks
Knowledge Work
Autonomous Intelligence
Unknown New Forms
of AI+ Human Work
Routine Mental TasksIf the robots arrive

to do this work…
…then workers

must move up
the stack
Open Question:
Can Most
Workers Make
This Transition?
singularity
leverage
what’s next
today
work began here
The Labor
Stack

Everything Is Literally About to Become Connected
All the objects in our life will be digital manageable and controllable
1 Everything gives off streams of data 24/7
Allowing us to truly manage our business and
lives for the first time, if we can manage the data
2

Omnichannel Digital Experience the New Imperative (and a Treadmill)
Yet the single most important value creator for companies
1 2

New Trend and Force Multiplier: Digital Ownership Experiences
Dis$nct(Points(of(Digital(Engagement!
!  Sea!Ray!News/Announcements:!more%efficient%communica-ons%
!  Ownership!registra9on:!be0er%insight%to%secondary%markets%
!  Resources/Support:!!Streamlined%access%to%manuals,%peer:to:peer%Q&A%
!  Events:!%Increased%awareness%and%par-cipa-on%
!  Affinity/Ambassador!Ac9va9on:!!Enhanced%ownership%experience%
!  Promo9ons:!!Increased%awareness/u-liza-on%of%boat%ownership%benefits%
!  Anywhere/Any9me!Access:!%Desktop%and%mobile%%
Bo3om(Line(Benefits%
!  Opera9onal!Efficiencies:!!$1.0MM%savings%through%re-rement%of%more%expensive,%
hard%to%maintain%programs%and%plaMorms%
!  Revenue!Improvements:!!Parts/Accessories%as%well%as%new%boat%Leads%
!  Support!Experience:!!Customer%service%experience%improved%while%reducing%costs%
through%deflected%calls%to%self%serve%channels!
%
Overview:!!Transforming%the%Boat%Ownership%experience%to%
improve%the%customer%experience%while%driving%increased%
Revenues%and%Opera-onal%Efficiencies%%
Solu9on:!!A%community%that%brings%boat%owners,%dealers%and%
Sea%Ray%together%–%enabling%“a%life%well:lived%on%the%water”!

Transportation Becomes Almost Entirely Digital
Changing how we travel and business logistics forever
134% CAGR

The Maturation of Powerful New Forms of Analytics
Going from Measuring the Past to Optimizing the Future
1 2

The Digital Workplace Is Going to Be a Very Different Place
Virtual, Robot Supported, Data-Driven, Borderless, and Self-Organizing

Community Management as a Service
Key Events
• Orgs discovering a
paucity of community
management resources
• Rise of social media and
community in many
business functions
Why to Prioritize
• A cost-effective way to
ramp up vital resources
to make digital
engagement successful
• Faster way to increase
capabilities for managed
digital engagement
social tech

Social Integration between Apps, Silos, Community
Key Events
• Too many collaboration and
communication tools in our
orgs now
• Apps like Slack that bring
them all together
• 2016 continued to see this
trend expand and grow into
a contextual digital
workplace
Why to Prioritize
• Get ahead of and manage
digital channel fragmentation
• Deliberately design a
collaborative and community
architecture instead of
‘letting it happen to you’
social tech

Notable Vertical Dimension: Higher Education
Adaptive Learning Student/Alumni
Communities
Learning Spaces

Notable Vertical Dimension: Healthcare
Wellness Tracking Collaborative EMRs Healthcare Communities
• CureTogether
• PatientsLikeMe

Notable Vertical Dimension: Financial Services
Adapted Blockchain Digital Advisors Partner Networks

Networks of Excellence + #changeagents
digital human
Key Events
• Limits being hit on Centers of
Excellence for new technology
• Urgent need for digital
transformation
Why to Prioritize
• To better enable digital
leadership bottom up and top
down
• Scales better, more cost
effective, and more
sustainable than old CoE
model
• Emerging naturally from many
existing CoEs, so better to go
right to the desired outcome

What Does it Look Like When It’s Done? An Ecosystem

The Model for Digital Transformation Is Inclusive and Digitally-Enabled
Increasingly, Digital Platforms Such as Community Are the Vehicle for Digital Transformation

New Models for Tech Change, Adoption, and Adaptation
New Modes (Bi-Modal IT, Tri-Modal IT) Networked Models for IT

TriModal IT and Beyond Key Events
• Bimodal not sufficient for larger
and/or more complex projects
and organizations
• Evidence that tri-modal and n-
modal IT matches right rate of
change to right model
Why to Prioritize
• Better way to adopt new digital
technology
• More realistic model to match
different types of IT and
innovation to models that better
support them
• Get rid of one sized fits all tech
adoption that holds progress
back
digital human

Let’s Learn to Continuously Design Our Futures Together in Scale

Q&A
For slides:
dion.hinchcliffe@7summitsinc.com
@dhinchcliffe
For a strategic
online community:
http://7summitsinc.com

Vital Trends in Digital Experience and Transformation in 2016 | Dreamforce 2016 by Dion Hinchcliffe

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Vital Trends in Digital Experience and Transformation in 2016 | Dreamforce 2016 by Dion Hinchcliffe