I already spend too much time on the web so what’s it going to be like in 2025 when another 26Bn smart devices are connected to the web?
The recent, excellent, research by Pew looking like at digital life in 2025 gives some pointers to what life might be like once all these smart devices come on-stream. The Pew report reflects that this is a market in the very earliest stages of its evolution with little overall consensus and concerns being expressed around the social (privacy, exclusion) as well as technical implications of IoT (integration). One word however that pops up frequently in the Pew report is “invisible”. The Internet of Things will be notable for being invisible.
As humans we pretty much mastered our ability to generate data and the emergence of the IoT will take our ability to create data to another dimension. What we haven’t mastered however is our ability to increase time. Human attention is a scarce resource. As a result most of us will be happy to outsource our attention for important yet mundane processes that enable us to focus on more important or enjoyable activities. Health monitoring, driving, service scheduling, insurance renewals, ensuring your finance products are on the best rate of interest, product research and price comparisons, all of these are important yet mundane processes we perform on a daily basis that most for us would be happy to outsource.
Wearables like Google glass and smart watches fail the invisibility test that will be one of the key attributes of successful IoT solutions. Wearables draw users further into the web rather than freeing users from it. Having milk bottles, toothbrushes or trainers sending you alerts and competing for your attention is just ludicrous.
The IoT = A Personal Airbag
The IoT will act as an airbag for our lives, ready to step in when you need it, not constantly competing for our attention. By freeing us from the mundane activities that today we would have to do manually on the web we are being freed from the internet itself. IoT solutions will make us less dependent on our current web interfaces. We will use the screen and keyboard interface to the web less and less as voice and gesture become more a more appropriate method of interacting with IoT devices. BPM and workflow technologies will orchestrate automatic processes triggered by smart devices, freeing users from mundane processes, interrupting our daily lives only when a decision is required.
Initial successful IoT solutions for example smart meters, inventory management, insurance telematics are for the most part invisible to users and eliminate mundane yet important processes. With IoT the internet will become more and more a part of our daily lives but less and less obtrusive, wrapped around us ready to assist rather than competing for our attention.
Like your aunt dancing to Daft Punk at a family wedding, when older established companies attempt to plug into the zeitgeist the results are often embarrassing. Across industry established organizations are experiencing a midlife crisis as younger more agile startups begin to erode their customer base. Instead of buying the sports car and dyeing their hair many established companies have lurched towards customer experience as a way to remain cool or relevant with predictably embarrassing results.
Interest in customer experience has been driven by lifestyle brands such as Apple, Disney and Nike, brands we enjoy using because they are associated with leisure experiences. The word “experience” gives the impression that we enjoy using the product or service, yet in our day to day lives we engage with many organizations on a purely transactional basis. Whether it’s a bank, an insurance provider or a utility, most of the time we are simply looking for process or transactional efficiency. Nothing more. Failure to understand this has led many organizations down the wrong path that views customer experience from a leisure rather than a process excellence perspective. I certainly don’t need my bank to start giving me discounted hotel bookings (they do), my ISP to give me tickets to the football (they did) or my dentist to give neck rubs (not yet).
The Great Customer Experience Swindle
In financial services and insurance it’s very easy to see the attraction of trying to focus on customer experience in market sector with few other product differentiators. UK banks have been quick to jump on the customer experience bandwagon but are mistakenly taking the leisure rather than process excellence route. Today UK banks currently offer lifestyle benefits such as movie downloads, cinema tickets, hotel booking discounts, airport lounge access, concert tickets and will writing services. The availability of these “benefits” poses a number of questions. First of all why are banks even offering these benefits in the first place? Cinema tickets, movie downloads and hotel discounts are benefits completely unrelated to their core business. Secondly why are banks providing these dubious benefits while they continue to suffer embarrassing outages, IT problems and customers struggle to talk to a human advisor?Also who joins a bank because of their will writing service?
Customer experience is often defined as how customers perceive their interactions with an organization. Each one of these interactions is a business process. Many customer experience leaders just execute their business processes better than their competitors. Take for example customer experience leaders; Amazon, Apple and First Direct. All three organizations execute their key business processes with precision and better than their competitors. Amazon excels in logistics processes, Apple in supply chain and research and development. First Direct show that by focusing on core customer processes and not gimmicks banks can transform customer experience.
This week more service outages hit the UK banking industry. Offering lifestyle benefits while struggling to keep the lights on shows a complete or deliberate misunderstanding of customer experience. A classic case of fur coat and no knickers as my mum used to say. Forget the VIP lounges and the tennis tickets if banks want to transform customer experience they need to focus on process excellence.Instead many UK banks are participating in a great customer experience swindle.
For a while we’ve gotten used to the B2B and B2C acronyms so today I’m going to suggest a new one, B2D or Business to Device.
It has been said elsewhere that the best customer service is one that doesn’t need to happen. As the Internet of Things (IoT) market begins to really heat up increasingly organizations will provide ambient customer service, directly to devices themselves without any human involvement. Over the past few years we have gotten used to this with new software releases and patches being delivered directly to our laptops, pcs, mobile devices and applications. Business relationships will increasingly be B2D or directly with their own products rather than with customers and other businesses.
Business to device is however subtlety different to IoT. IoT refers to ability of everyday objects to connect to the internet and their ability to store and process information. B2D takes IoT a step forward connecting the smart devices to business processes, for example triggering a support case when a product fault is detected.
In a previous post I stated that all of the data generated by OT devices is only of use if it is connected to business processes. There’s no point analyzing the data to predict a future product performance issue if a support process isn’t triggered or collecting customer usage data if the data doesn’t find its way into the hands of a sales person or the product development team.
First of all I don’t think social networking has any place within a Business Process Management (or Case Management) Suite (BPMS), the BPMS should integrate to best practice elsewhere. As I have said elsewhere on this blog I think social has its greatest opportunity within a Case Management and not a BPM context. Social BPM was always going to fail because BPM focuses on the needs of the business and not the knowledge worker. Social Case management is really where it’s at. Case Management after all is about empowering knowledge workers and giving them choices as to how they want to execute a case. Adding social capabilities to a Case Management platform empowers the knowledge worker to choose with whom, how and when they wish to collaborate.
Integration with a case management suite will allow organizations to extract value from their Enterprise Social Network (ESN) investment. Tools like Yammer, Chatter or Jive have limited value and will continue to struggle for adoption unless they are plugged into some actual work. Plugging social into knowledge worker based business processes helps people to establish and strengthen personal relationships, develop trust, reduce friction and accelerate the business processes in which people are engaged. Social integration has the potential to reconfigure the BPMS and Case Management suite for the post email world and the next generation of employees.
Anyway looking at what some of the ESN vendors offer today I’ve had a bit of a brainstorming exercise and have come up with some features that could be delivered through the integration of the Case Management suite with an ESN platform. At a basic level all of these features are focused on enhancing knowledge worker productivity by delivering enhanced collaboration and support opportunities. Let me know what you think:
Enhanced collaboration and file sharing
Collaborative creation of content within a case
Automatic creation of temporary team workspaces or groups focused on a specific process or a specific case to facilitate the collaboration and sharing of ideas among co-workers
Runtime guidance from subject matter experts
Rapid access to shared content and content ranked on utilization by co-workers and teammates
Crowdsourcing or distributed problem solving
Social Stream and BPM work queue integration i.e. the Social work queue which many BPM platforms already offer today
Shared team folders and shared case management folders
Collaborative process design and continuous process improvement.
Leveraging social awareness to deliver automatic process routing based on availability
IFTTT (If This Then That) is a service that lets users connect multiple different mobile apps based on a simple rule. “This” is the process trigger, “That” is the process action. Today the tool lets users rapidly create connections between 71 applications or what IFTTT calls “channels”. The simple workflows created between channels using the IFTTT rule are called recipes and can be shared within an IFTTT community.
So what’s the big deal?
In the BPMS suite we’ve been executing simple and complex business rules like If This Then That for years. The emergence of IFTTT is important because it does two things that BPMS does not do well; integration and simplicity.
Many business processes cut horizontally across organizations and as a result touch multiple business applications. There is thus an ongoing drive among BPM and Case Management vendors to continuously enhance their integration capabilities. This is however a continuously moving target and integration remains one of the greatest obstacles for the successful deployment of both cloud and on premise BPM solutions, often adding considerable cost and time to projects.
When it comes to the integration of cloud and mobile applications into business processes the difficulty multiplies. We are only just seeing the emergence of smart process applications and on demand business processes. Mobile BPM applications have emerged with integration to back end systems but is any BPM vendor doing mobile app to mobile app integration?
Mobile and cloud app integration is a key IT battleground. As business software users we regularly use mobile apps and on demand software to address business problems. This consumerization of the business IT landscape however sits uncomfortably with IT heavy BPM projects.
IFTTT radically simplifies the process of stitching together and automating web services and as such throws down the gauntlet to other business applications that are heavily reliant on application integration.
Consistent with consumerization IFTTT empowers users to integrate and develop their own workflows. It doesn’t take a huge leap of faith to expect this simple IFTTT rule to be extended to support more complex rules and events and ultimately encroach into the market for workflow and BPM applications.
According to a recent Gartner report after years of double digit growth the total BPMS market declined by 1% in 2012 to £2.3Bn.
So what’s the reason for this decline? Gartner propose quite a few reasons including M&A activity in the BPM vendor market creating uncertainty and the hype surrounding other SMAC (Social, Mobile, Analytics, Cloud) technologies that has had the effect of putting the BPM baby in the corner.
While many of the reasons for the decline proposed by Gartner are valid in my opinion I think there have been two primary reasons for the decline:
BPM was late to the cloud market and remains today primarily an on-premise play. There were a variety of reasons for this delay and my own thoughts on this can be read here.
For IT leaders evaluating or executing on their cloud strategy a meeting with a BPM vendors pushing on premise deployments must raise some concerns. “Should I really be considering an on-prem BPM investment at this time when my gut instinct and my execs are telling me to focus on the cloud?”
In the long term there’s no need to panic. The BPM market is, I think, in the process of making a right hand turn. As more demand BPM and Case Management process applications emerge e.g. BPaaS and smart process applications, underpinned by a BPMS growth will re-emerge.
It’s the Economy Stupid
Many of the IT planning and funding decisions for 2012 will have been made in 2011 when the economies of both the US and Europe were still struggling to recover from the crash of 2007. The EU continues to recover extremely slowly and it’s noticeable from the Gartner report that the BPM market in Western Europe actually declined by almost 7% in 2012. The economic impact hasn’t just been felt by BPM vendors. Outside the BPM market the Business Intelligence market growth slowed considerably from the approximately 17 percent rate experienced in 2011 to 6.8% in 2012.
What do you think? Is this a temporary blip in the BPMS market or the first sign of a much bigger problem?