Published on February 17, 2014
THE END OF I.T.’S MONOPOLY ON TRUST Vital lessons from the consumer space Jon Hall Tomorrow’s Future Today: Winter 2014 #TFT14 @jonhall_
1) How Uber, TripAdvisor, Yelp (and their peers) are changing industries 2) How IT is already being impacted. 3) What lessons can we learn... and how can we benefit? @jonhall_
Jon Hall 17th year in ITSM (but first TFT appearance!) Product Manager focused on forward evolution of ITSM Reading, UK BMC Software since 2008 Twitter: “@jonhall_” @jonhall_
Uber: Attacking a centuries-old trust system @jonhall_
The regulatory backlash to Uber The Star, Toronto, Canada, December 5 th 2012 EndGadget, May 2nd 2013 The Atlantic Cities, February 6th 2014 @jonhall_
Taxi regulation: Established 1654! “Set and enforce standards and conditions of service” New York City Taxi and Limousine Commission “…regulation of the conduct, behavior, deportment and dress for drivers…” Taxi Regulation Act (2013), Republic of Ireland A 350 year old minimum standard. Ordinance for the Regulation of Hackney Coachmen in London (1654) @jonhall_
Uber’s alternative: Feedback uber.com @jonhall_
Old and new Opacity Fragmented experience Allocated deliverer Accountable to regulator @jonhall_ Transparency Integrated experience Customer-selected deliverer Accountable through reputation Taxi image credit: http://www.flickr.com/photos/ursonate
TripAdvisor: Usurping the travel guidebook @jonhall_
Lonely Planet: A travel industry giant... “With annual sales of more than six million guidebooks - about a quarter of all the English-language guidebooks sold - it is the world’s largest publisher of travel guides” New Yorker Magazine, April 2005 @jonhall_ Lonely planet image credit: http://www.flickr.com/photos/spcummings
...sold after seven years at a big loss 19th March 2013 BBC buys Lonely Planet £130m 2007 @jonhall_ 61% loss BBC sells: £51m 2013
The decline of the traditional travel guidebook Source: Nielsen Bookscan for the Travel Guide Market @jonhall_
“World’s Most Trusted Travel Advice” “Total traffic in the fourth quarter grew 50% year-over-year. TripAdvisor websites attracted more than 2 billion unique visitors during 2013” Tripadvisor Q4 Report, 11th February 2014 Source: “The New Social Travel Lifestyle “ - TripAdvisor @jonhall_
Old and new Point-in-time information Limited coverage Expert opinion Passive delivery @jonhall_ Real-time information Comprehensive coverage Crowd-sourced opinions Contextual delivery Lonely Planet image credit: http://www.flickr.com/photos/spcummings/
The Yelp.com effect @jonhall_
Good ratings boost independents, but not brands A one-star increase in Yelp rating leads to a 5%-9% increase in revenue for independent restaurants. The same effect is not felt by branded chains. “Historically, chain affiliation is valuable because it reduces uncertainty about restaurant quality. Consumer reviews serve a similar purpose” Reviews, Reputation, and Revenue. Harvard Business School 2011. @jonhall_ Restaurant sign image: http://www.flickr.com/photos/neutronboy/
Unstoppable trend? The story of CourseTable @jonhall_
CourseTable: Informed study course selection “There was no centralized database at Yale that allowed students to perform course comparisons at-a-glance. “I want to know how highly people have rated each class” Two students programmed an interface that would compile everything in one place” Washington Post, January 16th 2014 “I’d like to know which of my social contacts plan to attend each course” “I’m interested in seeing my best friends’ course selections”
This is the wrong way to respond! “…malicious activity…”
Retraction and apology Jan 22nd 2014 “Technology has moved faster than the faculty could foresee... Questions of who owns data are evolving before our very eyes” Mary Miller, Dean of Students, Yale. January 2014
Students don’t just rate their courses! “We have the best IT and computer people at Stanford, ready to help.” - “College Sophomore”, Jan 2014
Bad IT impacts a school’s public image “The IT department will make you cry...” USA University. 33,000 students.
The same thing is already happening to IT. @jonhall_
Are you being rated already? “Lacking IT structure...” (Aeropspace manufacturer, 1000-5000 employees) “Too much time is wasted on the phone to IT...” (Investment bank, 1000-5000 employees) “Terrible IT support and resources” (Financial, 5000+ employees) @jonhall_
The growth of consumer-driven I.T. “The vast majority (of business users), about 85%, brought Evernote into the workplace themselves” Evernote CEO Phil Libin, launching Evernote Business In APJ, 83% of employees bring their own devices to work (41% citing contactability by clients) VMWare “New Way Of Life” Survey, Asia Pacific and Japan, 2013 IT causes 84% of business users to experience a “severe or moderate impact” on their ability to be productive on a monthly basis Forrester: Exploring Business And IT Friction (April 2013) Cellphone image credit: http://www.flickr.com/photos/sergesegal/ Broken cable image credit: http://www.flickr.com/photos/jeffanddayna/ @jonhall_
Key lesson: Embrace consumer trends @jonhall_
Feedback improves individual and overall service “When I first started driving for Uber, my rating was lower than it is now. Uber sent emails suggesting what I can do to improve, and they stuck with me. Now my overall rating is 4.85. I strive to keep my rating high and provide the best service” Uber driver on yelp.com @jonhall_
Feedback drives sustainable success “A lot of people were saying our off-brand Cheerios tasted like cardboard, so we changed to Fruit Loops. We got a great response to that.” TJ Jones, Anaheim Hotel owner (From 80th ranked hotel in city to 23rd, after acting on feedback) @jonhall_
Learn from the best examples @jonhall_
Feedback-enabled services Contextual support @jonhall_ Personal enablement
The way forward for I.T.? OLD Quarterly satisfaction survey Point ITSM tools Single source of services NEW Constant, open feedback Integrated customer/provider platforms Broker of services Standard offerings Contextual and personal offerings End-to-end control Enablement and governance Monopolized trust @jonhall_ Earned trust
Thank you! Twitter: @JonHall_ @jonhall_
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