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1TheRealTimeEnterpriese(RTE)Peng-Kheng(PK)ChiangSeniorDirectorGarnterConsultingSeptember5th,2003Shanghai,ChinaFact:Everyday,majorcompaniesreport“unforeseen”circumstancesthatdamagetheirfinancialresults.Challenge:Windowsofopportunityshrinkaseconomicpacequickensandcustomersbecomemoredemanding.Asaresult,enterprisesmustdetectearlierandrespondfaster.ManyenterprisesspendlargeamountsofmoneyonIT,butthefundamentalpaceoftheirbusinessesremainthesame.Consequence:Wewillseemorebusinessinstability,revenueshortfalls,lostmarketshare,missedearnings,layoffsandbankruptcies…unlessthepowerofITisunlockedbyanewfocusonelapsedtime.Copyright©2003RTE:TheReal-TimeEnterpriseOrganizationsthatapplyRTEwellwillimproveearningsby15(percent)to25percent.RTEwillwillunitebusinessandITmanagersintime-basedtransformationofcost,serviceandtransparencytocompeteinthenoweconomy.“Thereisnosuchthingasalegitimatebusinesssurprise.”Gartnerbelieves...Copyright©2003RTE:The‘NextBigIdea’inStrategicBusinessITGartnerbelieves...Gartnerbelieves...BusinessVelocityIncreases1071061051041,000100101Seconds1month1hourTradinganalyticsMail…express…fax…e-mail3days45secondsDocumenttransferCallcenterinquiriesTradesettlementBuild-to-orderPCRefreshdatawarehouseAirlineoperationsTrackfinancialpositionSupplychainupdates6weeks24hours5days1day30minutes5seconds20minutes30seconds8hours10seconds1day5minutes1day15minutesPhoneactivation3days1hourCopyright©2002Real-TimeorRight-Time?Wheredoyouneedtobe?Copyright©2003YearTarget20022004200620082010201260days30days14days7days3daysSamedayKeyIssuesCopyright©2003•WhatisRTEandwhatisitsrolewithinanenterprisestrategy?•WhatwillbethebenefitsofRTEtotheenterpriseandtothecustomer?•WhataretherelevantcomponentsinCRMthatwillbenefitfromreal-timetechniques?•WhatwillbethebestpracticesforintegratingRTEtechniquesintoanenterprisecustomerstrategy?2WhyRTE?•Nosurprises:Thereisnosuchthingasalegitimatebusinesssurprise.•Thereisalwayswarning:Priortoanybusinessmishap,disasteroropportunity,thereisalwayssufficientwarningtoallowcorrective,preventativeorexploitativeactions.•Youcanpredictthepresent:Clientsshouldaugmenttryingtopredictthefuturewithpredictingthepresent.•Materialityiskey:Real-timeenterprisesthatcapture,analyze,reportandactupon“materiallyimportant”matterswilldominatetheirsectorsduringthe2000s.Copyright©2003GartnerDefinesRTETheRTEisanenterprisethatcompetesbyusingup-to-dateinformationtoprogressivelyremovedelaystothemanagementandexecutionofitscriticalbusinessprocesses.RTEisnot:•Acompletebusinessstrategy•Forallprocesses•JustabouttechnologyRTEis:•Abusinessimprovementconcept•Anabstractgoal•Anongoingendeavor•AmultistepprocessCopyright©2003EfficiencyTransformationEffectivenessTheReal-TimeEnterprise“Cyclone”Model1.CapitaltoCompetency2.StimulustoStrategy3.ThreattoResponse4.ObjectivetoOrganization5.ConcepttoConcrete6.ResulttoReaction7.ProcuretoPay8.OrdertoCash9.RequirementstoResource10.DemandtoService1.CapitaltoCompetency2.StimulustoStrategy3.ThreattoResponse4.ObjectivetoOrganization5.ConcepttoConcrete6.ResulttoReaction7.ProcuretoPay8.OrdertoCash9.RequirementstoResource10.DemandtoServiceCopyright©2003MappingRTECyclonestoERPandOtherApplicationsCopyright©2003StrategicEnterpriseBenefitsofRTE•Reductionofwasteandinefficiency•Competitivecustomermanagement•Bettermanagementdecisions•More-transparentmanagementdecisionmaking•IncreasedcustomersatisfactionCustomerExperienceCustomersCompanyFeedbackFeedbackCopyright©2003StrategicCustomerBenefitsofRTEWhatyouwantthecustomertoexperience?CustomerExperienceCustomersCompanyFeedbackFeedback•Beeasytoreach(channel)•Don’tmakemewait•Knowmybackground•Quicklyunderstandme•Connectmetotherightresourcerightaway•GivemerelevantinformationCopyright©20033RTEandCRM:RecognizingandReactingtotheCustomerIdentifyCustomerAccessCustomerHistoryExecuteActionDetermineAppropriateActionCustomerInteractionRecognitionReactionCopyright©2003PersonalizedInteractionsatEveryChannelinRealTimeCustomerDataRepositoryAnalytics/RecommendationsCustomerTouchpointsBranchKiosk/RetailContactCenterWeb/WirelessMarketplaceDirectSales/CSSCopyright©2003CustomerWebInteractionsAug.02LookforFlightdealsJune02UpgraderequestFeb.02TieinwithAutoDec.01FarestoTulsaSept.01FarestoTulsaDataMiningDataAnalysisCustomersegmentation,CampaignManagement,RelationshipOptimizationBostonGlobeNowuntilNovember2nd,weareofferingaspecialdiscountforcustomers...Oct.01Saleofitemxxx1.2.4.5.3.Real-TimeInformation—DrivingCustomerExpectationsPrintAdDirectMarketingCopyright©2003CustomerServiceCenterCustomerLogFile-----May02RequestforPlatinumFeb.02UpgraderequestDec.01TicketpurchaseusingFFJuly01CarrentalcodeMay01Grantext.onmilesFeb.01ChangeflighttoRenoAug.00UpgradetoGoldstatusDec.99AskforGoldstatusinfoApr.99JoinsMilesprogram-Real-TimeOfferingMakeOfferReal-TimeBusinessPrioritizationBusinessLogicReal-TimeDecisionDefineOfferDynamicScoringIn-SessionDataScoringReal-TimeScoringPre-InteractionDataScoringReal-TimeModelingAnalyticDataMartComplexitiesofReal-TimeMarketingOpportunitiesCopyright©2003KeepingEveryoneInformedandEffectiveCustomers&Pros