Consumers and employees expect -- but often don't get -- individualized offerings from organizations, an operational oversight that costs at least 18% in additional revenue, a new Oracle study finds. Adopting cloud, New IP networking solutions and collaborative applications transform enterprises, delivering benefits from agility to increased revenue and lower employee turnaround.
Losses from sticking with legacy systems run deeper than revenue shortfalls, according to Oracle. This inability to individualize -- for either customers or employees -- has far-reaching impact. In "The Era I Enterprise: Is Your Industry Ready?," Oracle surveyed 300 executives across multiple industries; although 84% say they'd seen demand for greater individualization, less than 20% of respondents gave themselves an "A" for customer or employee experience.
"With an 18% revenue opportunity across the verticals and a 31% revenue opportunity in service providers, why aren't they just dropping everything and pushing this to the top of the list and racing to get it done? And I think it really is that their organizations have not made the transition internally," says Doug Suriano, senior vice president and general manager at Oracle Communications, in an interview with The New IP. "To deliver this you really need agility and flexibility within the organization. Traditionally it's hard for organizations to turn on a dime like this. You can hire new skills, you can train and transition skill sets but I think there needs to be a transformative approach to this and I don't think you do it with your internal IT organizations as a starting point anymore. I think you have to turn to the cloud."
Earnings Go Up in Era of I
Individualization pays dividends, according to "The Era I Enterprise" study by Oracle. (Source: Oracle)
Whereas many organizations began forays into cloud through shadow IT or concerted CIO-led efforts, enterprises now are at the point where corporate leadership must commit to a digital, cloud-based transformation, he says.
"I think these kinds of transformations have to come from the c-suite," says Suriano. "To make these kinds of transformations you have to shake up the status quo."
The individualization push
Every communications executive surveyed recognizes customers want individualized experiences, according to Oracle; across all verticals, 84% of respondents say their organization has "experienced a trend toward customers wanting a more individualized experience." Since telecommunications service providers have such a powerful connection with customers -- smartphones -- they all seek ways to improve their ability to compete, says Suriano.
"I guess, if you think about, how about with our own lifestyles, how demanding are we getting with how we conduct business, the way we expect our service providers to provide service to us when something you buy online or whether it's a service provider for your mobile device?" he says. "The next step is how are you going to satisfy this demand? How are we going to go after helping our customers? That is where we saw the big gap. So one in five execs across these verticals gave themselves an A. The communications sector alone it was about a third giving themselves an A."
Other results from the study:
- 93% of organizations believe they leave money on the table when they do not successfully offer customers or employees a highly individualized experience
- 66% of enterprises include improving their ability to offer a more individualized experience in their top three priorities
- 6% of organizations do not have this on their radar or as a top priority
- Only 18% of companies say they deliver highly individualized customer experiences
- A mere 11% of organizations claim to provide highly individualized employee experience
To the cloud
Cloud adoption is hardly new, with most if not all organizations using cloud for some applications. That said, only 28% of mission- and business-critical applications reside in the cloud, Oracle says. Legacy systems hold back organizations' ability to deliver individualization, 57% of respondents say. And 81% of those surveyed say there is an important link between cloud and their organization's ability to deliver individualized employee and customer results.
Cloud's flexibility, openness, app-orientation and mobile focus empower organizations to develop individualized services and products, Suriano says. Although service providers are cutting costs through virtualization and NFV, for example, and focused on enhancements like 5G, they have yet to advance in personalization, he says.
"They have to actually be willing to give up the control a little bit. Historically service providers have tried to maintain a lot of control on the network side and put less control in the hands of the subscriber and there's a wave of capability that's going to start to show up where you enable more capability on the clients, so the client now becomes a policy enforcement in your network instead of having them at the edge. The network and the client are starting to work hand in hand and with that you provide more capability to the subscriber to not only put more capabilities in their hands but have much better interaction with the network," says Suriano.
"We're seeing Wi-Fi, for example, have a real uptake. Wouldn't it be nice to seamlessly move between your Wi-Fi and your mobile network or your cellular network. Another one is allowing the customer to go ahead and change their service on the fly with a very rich client, and that the network can actually see what's going on, on the device and the device becomes more interactive with the network. As apps start to become executed on the device you might intercept some things on the network side and may prescribe or present new opportunities to the customer. You see someone using a certain type of app, you might present a certain type of new service or new opportunity. We don't see that kind of interaction really; it's coming."
— Alison Diana, editor, The New IP. Follow her on Twitter @alisoncdiana or @The_New_IP.