Image Courtesy Kenneth Lu http://www.flickr.com/photos/toasty/
Description - What consumer behaviors today will create new incremental enterprise revenue streams tomorrow? How can enterprise solution providers prepare for where the puck is going to be?
The
term consumerization has a few related definitions. The reorientation of
product and service designs around the individual end user. The use of personal consumer electronics at
work. The blending of personal and business technology use. Gartner
summarizes it as " Consumerization is the specific impact that
consumer-originated technologies can have on enterprises. It reflects how
enterprises will be affected by, and can take advantage of, new technologies
and models that originate and develop in the consumer space, rather than in the
enterprise IT sector. "
The
oft-stated example of how consumers translated their personal device
preferences (e.g. iPhone, iPads) into enterprise class communication tools of
today is probably the best example of consumerization of the enterprise where
consumer preferences created a new enterprise market. In fact, I think about
the Apple case study as prominent and repeated as the Dell operational
excellence 'build-to-order' case study of the last decade. Other less-accounted
examples of consumerization include the consumer cloud storage space where consumers
brought their personal usage of tools like Hightail(formerly YouSendIt), Dropbox etc. into the
enterprise to share, store and collaborate work files because they found it difficult to work within the constraints of equivalent enterprise tools. SaaS, Social Media in
the enterprise, and the list goes on. Consumerization
is beyond hype and demonstrated significant economic value for enterprise
vendors/service providers.
So,
how will present day consumer behaviors and expectations translate into new future
economic streams in the enterprise? How can enterprise vendors amplify existing consumer usage or foster new
consumer usage to take advantage of these trends?
Recommendations,
Ratings and Reviews - As consumers, we have become accustomed to
proof-points that are in the public
domain. We expect a Yelp or Zagat review before we try a new restaurant, we
expect opinions on Trip Advisor before we select a vacation destination, we
rely on crowd-sourced recommendations to pick a movie to watch on Netflix, we
look to ratings to evaluate apps in app stores or to trust a merchant in an
online marketplace. While the recommendation/ratings/reviews system is still
maturing and ironing out some wrinkles, it is here to stay. Today, the
enterprise provides proof-points via customer testimonials, 3rd party studies,
analyst influences etc. However, these proof-points are initiated and fostered
by the vendor. The democratic or public opinion system will translate over to the
enterprise. Enterprise vendors can
prepare and foster this aspect by starting with building presence in the evolving
enterprise app marketplaces and proactively building support and quantitative
proof-points in the online communities relevant to their industry.
Education - Products
used in schools, colleges, universities are habit forming. Our first bank
account, first email account etc. are sticky. The earlier in life, the stronger
the habit. I recently attended a middle school club event which required
presentation by groups of students to a large audience - Powerpoint was not the
presentation tool of choice for this particular group of middle schoolers.
Early experiences like these are what this generation will carry over into
their work lives. Enterprise vendors/service providers will be well served by
investing in low-cost or free solutions for education. Another way enterprises
can foster consumerization is by contributing knowledge, products and define
new course offerings in the evolving MOOC education
space populated by Udacity, Coursera, edX etc. The M in MOOC stands for
massive!
Experience - As
consumers, we increasingly buy experiences more than we buy products these
days. Part of the experience is manifested in the showrooming effect which the
consumer vendors such as Best
Buy are embracing to their advantage. We increasingly try before we buy. The
experience precedes the purchase. The enterprise players already have a
head-start on this through existing mechanisms such as technology centers,
centers of excellence, development environments, demo/trial programs etc. The
enterprise players should invest in and amplify these avenues.
Fun - "Happy
Streaming", "This is gonna be fun", "Why's it cool" -
These were the messages I received when opening the package of my digital streaming device. Again,
a manifestation of the experience over product trend -for example, termed as
the Experience
Economy by Pine-Gilmore. Or defined by Simon Sinek in his TED
Talk as the "Start with the Why". The "Why" is more
important than the "What" and the "How". This is a tough task for the enterprise i.e.
to make the experience matter more than the product, make it fun. I will point
to the Super Bowl ads of today (incidentally) for inspiration - Think about the non-consumer companies
that captured your attention by how they appealed to your sense of fun.
Other aspects of consumerization like simplicity & aesthetics
found in our consumer app experiences that are well known as are the effects of
consumer electronics in the workplace. I have not focused on these since much
has been written
about these effects and their impact on the enterprise such as this Forbes article by Darian Shirazi. Instead, I tried to
take a forward looking view to emerging consumer behaviors that have not yet
made it over to the enterprise. Where
the puck is going to be.......
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