Webinar Introducing Digital Customer Experience Platforms Integrated Tools

Webinar Introducing Digital Customer Experience Platforms: Integrated Tools To Deliver Great Multichannel Experiences David Aponovich, Senior Analyst Mark Grannan, Researcher February 6, 2014. Call in at 12: 55 p. m. Eastern time

Agenda › The digital experience journey that Forrester has witnessed in the last year › Review of the rise of the digital customer experience platform › What Forrester defines as crucial to digital customer experience platforms › Vendor offerings and different approaches to fulfilling these requirements › Forrester’s recommendations on sourcing and implementing these platforms © 2014 Forrester Research, Inc. Reproduction Prohibited 2

[Digital Experience Delivery]: A solution that enables the management, delivery, and measurement of dynamic, targeted, consistent content, offers, products, and service interactions across digitally enabled consumer touchpoints

Firms struggle to leverage DX tools › Firms are on a journey to DX transition with challenges: • Jumble of point solutions is the norm. Disparate vendors, disparate capabilities, different interfaces. Acquired over a long period of time. • Tech budgets are fragmented. IT, marketing, and lines of business all “share” budget for DX tools, but a center of gravity is missing. • Silos still predominate. Coherent cross-channel digital experiences? Shared customer data and unified processes in support of the customer? Not really. © 2014 Forrester Research, Inc. Reproduction Prohibited

Market changing fast = confusion © 2014 Forrester Research, Inc. Reproduction Prohibited

Budgets are all over the map Source: November 26, 2013, “Market Overview: Digital Customer

Mindset must shift in enterprises Digital experience situation in enterprises historically Digital experience transition is driving change into 2014 Digital experience initiatives in silos. Digital experience initiatives more likely to involve cross-team collaboration. Technology decisions and management lived in traditional IT. Tech decisions and use lives in business technology teams. Software budgets lived mostly with IT teams. Technology budgets increasingly live in the business (i. e. , marketing). Digital experience portfolios consisted mainly of disparate applications. DX portfolios shifting toward foundational “platforms” CEOs largely ignored the “digital” part in “customer experience. ” CEOs and C-level execs are making digital experience a strategic mandate. Example: WCM buyer 2 -4 years ago wanted to swap WCM for another WCM. Today: Swap WCM for a most holistic platform for multichannel, personalized digital customer experiences (and they need a digital experience strategy, too). © 2014 Forrester Research, Inc. Reproduction Prohibited

Review: the rise of the digital customer experience platform Customer expectations demand unified systems

Age of the customer Source: October 10, 2013, “Competitive Strategy In The Age Of

The customer life cycle is the foundation Discover Get support Evaluate Use Buy Access Source: December 19, 2012, “Reinvent Customer Experience” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

. . . but functionality expectations vary by touchpoint Customer touchpoints Customer needs Source: September 19, 2013, “Build Seamless Experiences Now” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

. . . and customers are no longer bound to physical locations to engage with companies Source: September 19, 2013, “Build Seamless Experiences Now” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

Vision: contextual, real-time experiences Source: January 13, 2014, “Advance To Next-Generation Personalization” Forrester report

. . . across channels MOBILE-WEBSITE-TWITTER CROSS-CHANNEL SERVICE Source: November 12, 2012, “The Mobile Banking Imperative” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited 14

Defining digital customer experience platforms Components + integration = business benefits © 2014 Forrester

Parts of a digital experience ecosystem Testing Optimization Analytics (mobile, social, Web) Site search Portals Commerce platform Product content management Web content management Digital asset management Recommendation engine Online video platform Email/campaign management Source: February 12, 2013, “Choose Digital Experience Tools To Engage With Customers In A Cross-Channel World” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

Poll #1 › How many different vendors do you source digital experience solutions from:

Targeted/strategic business need Interpreting solution versus suite versus platform Level of prebuilt integration Source: November 26, 2013, “Market Overview: Digital Customer Experience Delivery Platforms” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

What does platform integration include? Tooling integration Unified Runtime cost integration model An integrated tool set is easiest to achieve when the products share a common architecture that’s typically updated on the same schedule and Globalization/ Business user which allows native control and user interface synchronization across the localization interface solutions that share the same tooling. For example, a DAM solution owns an asset and can control versions across other solutions. Hybrid Contextual preview and Runtime-level integration ensures that the various elements can be deployment managed and run as a coherent platform, often using a common set of simulation models management tools. Connections between the elements enable information exchange with external solutions via APIs, web services, and Data management across other connectors. An example of this is a commerce engine leveraging a Business DAM asset and keeping the versions in each system synchronized as solutions process changes are made over time. support Life-cycle integration enables coordinated control of assets even though Page Personalized many different tools are used to create the experience, such as ensuring template contextual Multichannel that video, text, and application scripts all go into production in a and design delivery coordinated way. This synchronizes the movement of assets from a Crossnumber of tools as you move from one business process phase to the product next — that is, through the planning, design, staging, and launch phases. certification Life-cycle integration © 2014 Forrester Research, Inc. Reproduction Prohibited

Example: New York Life › Sitecore platform (content management, web analytics, campaign management, and marketing automation) • Pull and deliver data driven from New York Life’s proprietary recordkeeping system. • Render content, URLs, and marketing messaging based on sophisticated use of content tree inheritance. • Five levels for content distribution and reuse — with a global level providing generic content and lower levels that provide progressively customized content • Customize content and messaging based on core demographics, employer plan requirements, and past site interactions. › Results: • Lessened burden on more expensive touchpoints (i. e. , call center) as web usage is up (with positive feedback from prospective clients) • Content updates are easier and faster. © 2014 Forrester Research, Inc. Reproduction Prohibited 20

Example: Saint-Gobain › Adobe Experience Manager platform (AEM, Adobe Target, Adobe Analytics) • Leverage Adobe Experience Manager solution within Adobe Marketing Cloud to enable robust, flexible content management throughout the organization. • Use Adobe Experience Manager to create and publish content on corporate website and 60 localized, regional websites. • Use Adobe Analytics to better understand customer activities online. › Results: • Achieved annual double-digit growth in e. Commerce • Increased conversion by 1. 3% and contributed to a 27% increase in revenue • Boosted average order values by 5% • Improved customer experience and catered to both B 2 B and B 2 C audiences © 2014 Forrester Research, Inc. Reproduction Prohibited 21

Example: integration accelerators › Rosetta (a digital agency) developed a connector between IBM Web. Sphere Commerce and Adobe Experience Manager. • Allows for greater personalization and asset reuse within a single interface REST APIs Website Shopper © 2014 Forrester Research, Inc. Reproduction Prohibited

Vendor offerings and different approaches to fulfilling these requirements Build — buy — partner?

Platforms — what you’ll find › What is it? Foundational. Likely built on web content management, e. Commerce or portal technology › Software vendors are reaching “platform” status in three ways: • Build — from the ground up, integrated apps, and tools. • Buy — acquire best-of-breed applications to expand their portfolio offering, then integrate. • Partner — align with third-party vendors with formal integration strategy. © 2014 Forrester Research, Inc. Reproduction Prohibited

Where “platform” players live (segments) Market Segment (heritage) Web content management platform players e. Commerce platform players Enterprise marketing platform players Enterprise/Business-centric platform players © 2014 Forrester Research, Inc. Reproduction Prohibited Example Platform Vendors

Recommendations 1. Understand which tools are “foundational” to building great digital customer experience. Web content management, e. Commerce, and portal software often the “foundations” on which companies build their larger digital experience platforms. 2. Plan strategy and technical requirements not for next 12 months but for several years. A three to five year plan is not out of the question. Digital customer experience is a corporate mandate, not “nice-to-have. ” Make a software transition with an eye toward long-term success of DX as a strategic imperative at your company. 3. Use the digital experience theme to build bridges across the organization, and tear down legacy silos preventing a winning DX strategy. Chances are, silos will still predominate at your company. Use DX as an opportunity to rally your organization around the potential for digital customer experience to be a long-term growth driver. © 2014 Forrester Research, Inc. Reproduction Prohibited

Decide where to invest based on potential impact Source: September 3, 2013, “Tech. Radar™ For AD&D Pros: Digital Customer Experience Technologies, Q 3 2013” Forrester report © 2014 Forrester Research, Inc. Reproduction Prohibited

Cut through the integration marketing speak ASK THE HARD QUESTIONS OF YOUR DIGITAL EXPERIENCE SOLUTION PROVIDERS 1. Are the solutions designed and built (organically) to work together? 2. Or is the portfolio assembled the platform from successful point solutions acquisitions and unified the offering with ongoing development? 3. Are partnerships with other providers bolstered with co-development, reseller, coordinated service/support, and cross-certification agreements in place? 4. Do you have prebuilt solution accelerators to enable my integration/implementation efforts? 5. Do you have examples of field integrations? In my vertical? © 2014 Forrester Research, Inc. Reproduction Prohibited 29

Questions & Answers © 2014 Forrester Research, Inc. Reproduction Prohibited 30

Thank you David Aponovich +1 617. 613. 5866 daponovich@forrester. com Mark Grannan +1 617. 613. 6074 mgrannan@forrester. com