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Ever since Jack Welch popularised the coinage, several organisations have been turning “boundaryless”—erasing the boundaries that traditionally existed between different teams, processes and stages of manufacturing to integrate them for better outcomes. The value of a boundaryless approach is that the collaboration helps in innovation and in enhancing customer experience.
Pushing boundaries and eliminating barriers
Is the customer and her/his experience the end-point of the manufacturing and distribution process? No. With a boundaryless approach, the roles typically played in manufacturing and distribution are changing; the manufacturing value chain is no more a unidirectional process that culminates in delivery. Instead, it is a continuous loop that is fed by customer input and involvement and enriched by proactive contributions through different collaborating entities. A boundaryless experience then is not just about the elimination of boundaries, but also about the shifting of existing boundaries. I see three kinds of boundaries that are undergoing tectonic shifts.
1. Boundless Data:
In the past, customers had no information about the manufacturing process and data was completely bound—it belonged either to the manufacturer or to the customer and rarely got exchanged. But today, with digitalization, the situation is different. Now, products themselves are capable of exchanging data. The limits of data between customers and manufacturers are getting blurred, and data is openly exchanged in a boundaryless manner.
We see several instances of data exchange in telematics. Let us take the example of an insurance company that provides usage-based insurance. They would begin by installing their devices in cars and automobiles. Now, who is the customer here? While the car owner is the customer, there are two other entities as well, the insurance company and the manufacturer, and unless they exchange the data, they do not obtain the user profile they need. In these terms, it is difficult to define a line for the process—it ends with the manufacturer or starts with the insurer and ends at the owner. The very process is boundaryless.
Digital technologies are playing a significant role in enabling data to be gathered, communicated externally and in facilitating quick decisions and actions through the meaningful use of such data. Telematics or connected manufacturing makes it very easy to capture data and exchange it in real time. Digital manufacturing technologies can enable a ‘digital thread’ of seamless data to add value to all stages, including marketing, distribution, sales, use and service.
And all this boundless data is contributing directly to the current trends in manufacturing. First, customers get to know what is happening with their order very early on. Second, and more importantly, today, products are highly customised. Even as there are lesser numbers manufactured, the variants of the product are very high. Every customer wants a tailormade product, not something off-the-shelf. Such customisation cannot take place unless there is a boundaryless exchange of information between customers and manufacturers. With big data and analytics, customer data can be integrated into making a more relevant product. The coming together of digital technologies, such as big data, connected assets, cloud, mobility and predictive modelling can create and enable such a boundaryless exchange.
2. Exchanging experiences and roles:
The second aspect centres on changing responsibilities. Today, manufacturers and service providers are varying their processes so that the role they were performing earlier now gets transferred to the customer. A case in point is Ikea. It has created a manufacturing setup and product design approach that lets customers create their furniture themselves. While being provided with the basic components required to build what they want, customers have the responsibility and the power to assemble their furniture as per their preferences. Similarly, there are several instances of this in the services sector. Earlier, customers would call a call centre, tell them what they wanted, and the call centre would do it for the customer. Now, with mobile applications, users are being enabled to perform tasks and handle a wide range of services themselves, facilitated to a large degree, by digital technologies. We see, therefore, that the boundaries that shaped the roles of customers and manufacturers or providers are shifting—customers are now doing what manufacturers would control earlier and they are loving it.
3. Blurring lines of competition and collaboration:
The third area where boundaries are being exceeded is in the shifting spheres of authority. Conventional domains of competition are morphing into collaborative modes to serve the customer what she or he expects. Frequently in the manufacturing space, a company ends up in competition with suppliers or OEMs it works with because they are doing the same thing. Yet, the dividing lines of competition are difficult to identify, and customer preferences are driving this collaboration. Customers assume that the manufacturer knows what they want and expect manufacturers to collaborate with a third party—which could be a supplier or another customer—to deliver it. This is resulting in the removal of set boundaries of “competitor” and “collaborator” from transactions in the interest of business.Boundaryless customer experience—a win-win loop
I believe that the manufacturing process is turning boundaryless, which is great for customers, as it yields an optimised product that is best-tailored to their requirements.
Boundarylessness also benefits the bottom-line of businesses because it helps create differentiation and helps create a sticky relationship—one in which the customer is involved with the product, the manufacturing process and the manufacturer. Differentiation can be created based on the customer’s preferences for personalisation so, customers “pay” attention and “spend” their time.
In the present landscape, most organisations are already adopting processes and technologies to efface boundaries, and I believe manufacturing organisations are going to continue to see a lot of changes in this regard. Product variants will take centre-stage with companies having fewer setups for mass manufacturing and more custom-made products using automation. Automation will, in fact, make variant management scalable—something that is a challenge to do manually with the current technologies.
Digital technologies will enable value chains to turn more global and become integrated, thereby erasing existing boundaries. However, to really enable a boundaryless manufacturing journey, organisations will need to fundamentally rethink their business models towards eliminating barriers. I believe we need to reconsider the lines that define our processes and bind our roles. Without these lines to limit our thinking and activity, we can reimagine the value we can deliver and the customer experiences we can create.
-The author is the co-founder and CTO at KPIT Technologies Source http://www.forbesindia.com/blog/business-strategy/erasing-boundaries-for-a-unique-customer-experience/
“The key is to set realistic customer expectations and then not to just meet them but to exceed them — preferably in unexpected and helpful ways.” – Sir Richard Branson, 2012.
Back then, managing expectations was the key to customer success; but in today’s hyper-connected world, things have changed. The customer is now firmly in control, digitally empowered, spoilt for choice and more fickle than ever before.
‘Surprise and Delight’ remains the desired outcome, but brands need a smarter approach to remain relevant amongst consumers in Asia Pacific: Retail sales for 11 Asian economies rose from $1 trillion in 2001 to $6.6 trillion in 2016, greatly eclipsing US retail spend of $3.9 trillion. Asian millennials will have more spending power than any previous generation – estimated to be $6 trillion in disposable income by 2020.
It’s no longer a secret that businesses collect vast amounts of customer data. Customers know that their personal information and online habits are being tracked, bought and sold, and in exchange, they expect every enterprise to translate this personal data into a better experience. In fact, according to Gartner, customers still expect companies to know them well, but now have additional expectations that businesses proactively predict and offer what each individual customer needs.
Particularly in APAC, a market defined by digital, customers have come to expect seamless, personalised experiences from every brand interaction. E-commerce sales in APAC are expected to rise 300 percent to $2.6 trillion by 2020; and with APAC already accounting for 64 percent of the world’s growth in mobile social media users, mobile and social commerce won’t be far behind.
With a world of options at their fingertips and growing funds in their wallets, APAC customers will look elsewhere if a business can’t swiftly understand and cater to their needs.
Under this evolving pressure, enterprises need a new way to anticipate and satisfy customers. They need the Smarter Customer Experience (CX) approach.Smarter CX responds to rising customer demands in the digital age; capitalising on data and transforming a company’s culture to put the customer at the centre of the business.
Enterprises taking the Smarter CX approach provide seamless brand interactions offline to online across a customer’s favourite channels; hyper-personalised, AI-driven recommendations based on a customer’s past purchases, where they are and even how they feel; effortless browsing and buying, even if the business and the customer are on opposite ends of the globe; and a proactive service approach reacting to people, processes and connected things to precisely deliver in the moment of need.
If Smarter CX sounds like it requires a mammoth change within most businesses, it does – but it’s crucial to business survival. Brands that have embraced Smarter CX are both rare leaders and are pulling ahead of their competitors. According to McKinsey, customer experience leaders achieve revenue gains of 5 to 10 percent and reduce costs by 15 to 25 percent within two or three years. We expect that within five years, APAC enterprises not centred around the customer will begin to lose out to those taking a Smarter CX approach.
The role of data in Smarter CX cannot be overstated. It is the fuel that powers businesses on their Smarter CX journey; enabling everyone in the enterprise to understand and respond to the specific demands, desires and pain points of each individual customer. Indeed, with unprecedented access to a veritable gold rush of data, plus cutting-edge analytic tools built for businesses large and small, there is no longer any excuse for not knowing what customers want and how to optimise their experience. But simply having data isn’t enough. To enable Smarter CX, enterprises must make an important shift – from having data, to being data-driven. Being data-driven means recognising data as a form of capital and investing in the people and technology necessary to turn today’s gold rush of information into actionable insights. If data is like gold, then every business must act as a goldsmith – collecting as much data as possible and bringing in the right manpower and machines to process the raw material to unlock its full value. Only then can the business truly anticipate customer needs and enrich every customer interaction.
While 60 percent of brands use data from multiple sources to inform sales and marketing, data can also help companies build entirely new business models based on customer insight. Around the globe, internet-born businesses like Netflix are already demonstrating the value of incorporating customer insight into product development – and the next wave of opportunity lies with all types of businesses, in all parts of the world, that can do the same. In consumer electronics, for example, Denon & Marantz has outpaced competitors by leveraging Internet of Things (IoT) data from their connected speakers to really understand what customers want and even develop new product lines.
A Smarter CX approach can’t be built in a day, but businesses can get a head start by exploring the new generation of innovative cloud solutions. Today’s data analytic technology can help enterprises uncover a deep understanding of consumer wants and needs, while automation offers quicker data collection from more sources. Chatbots provide real-time, conversational interactions and artificial intelligence is feeding machine learning to help businesses get more value from data.
Along with best-in-class cloud solutions, the Smarter CX approach also requires a collaborative cultural mindset. Every part of the organisation must live and breathe the customer experience, which can only occur if there is a mandate from the top. When the C-suite leads a cultural shift that puts the customer and data first, the enterprise can truly transform to focus on the customer. Internal collaboration can also be strengthened by engaging outside experts to provide guidance around Smarter CX and implement new solutions.
When businesses do successfully enact Smarter CX, the competitive advantages are uniquely rewarding; and as new innovations come online, Smarter CX represents a once-in-a-generation opportunity to gain a transformative edge in customer experience. By capitalising on data and the new generation of cloud solutions now, businesses are able to put customer experience at the heart of everything they do – winning new customers, driving loyalty and return business, and positioning the brand to remain relevant for years to come.
By Brian Donn, Vice President and Head of CX Cloud Applications APAC, Oracle. Source http://www.forbesindia.com/blog/business-strategy/skyrocketing-customer-expectations-how-to-keep-up-and-get-ahead/