1

Information Technology
in Customers
Business

Pramod Parajuli
2010

IT in Business Pramod Parajuli, (C) 2010

2 3
Roadmap

Customers, what they want?

IT in business

Knowing the customers

Business responses

IT alignment and strategies

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 4 5

What consumers want?

Joseph Pine @ TED.com

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

6 7
Innovation
Innovation

New product

New service

New experience

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 8 9
Designing new experiences Innovation

The 3 D’s of customer experience*

Services/
Embed IT
Product Innovation
Design Deliver Develop (traditional)
component

* The Three "Ds" of Customer Experience

Harvard Business School
http://hbswk.hbs.edu/archive/5075.html
Last accessed: April 18, 2010
IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

10 11

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 12 13

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

14 15

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 16 17

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

18 19
but wait wait!! ummm, yeah, we have some questions

!  Without knowing what customers want, how

to proceed?

!  Without finding good/high-response/high-

return customers, why shall we innovate new
experiences?

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 20 21

Know thy customers first!!

Knowledge Management
&
Business Intelligence

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

22 23
Information Knowing thy business
!"#$%& !"#$%' !"#$%( !"#$%) !"#$%*

+,- ./0%%%12 ./0%&32 ./0%)( ./0%)* ./0%'42

5#66 ./0%&22 ./0%'22 ./0%*2 ./0%*2 ./0%(22
# !"#$%& !"#$%' !"#$%( !"#$%) !"#$%*

& !% !% !%

' !% !% !%

( !% !%

) !% !% !%

* !% !%

7 !% !% !%

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 24 25
Business intelligence

Know your business

!  Workflows
!  Touch points
!  Marketing channels Know your Know what your Use technology to
!  Investment business customers want design & deliver
!  Production
!  Sales and service
!  Product!!
!  and many more aspects of business…
IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

26 27
Know thy customers

1.  Capture knowledge about customer

!  Preferences
!  Buying pattern
!  Feedback
2.  Store knowledge
3.  Retrieve, extract hidden patterns
4.  Devise business strategy to respond
5.  Develop capacity to deliver new experience

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 28 29

But I can’t collect data.

I don’t have information about my

customers.

Information Partnership

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

30 31

IT doesn’t matter.
Nicolas Carr
Harvard Business Review, May 2003

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 32 Aligning technology with business 33
(in broad sense)

Reduce cost of doing business

Technology Enhance customer return and loyalty

Business

Improved service levels

Fast and more accurate decisions (based on

forecasting)
IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

34 35
Aligning business with technology

!  Business process re-engineering (BPR)

!  Technology has become prime factor for BPR

What to do next?

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 5 things managers need to know about 36 37
IT in business but still why should I care?
Investment drives things crazy - total IT
Managerial investment in year 2008-2011 is estimated to
challenges be USD 5 Trillion.*
Technology Business
available applications

“You are free not to use IT. If you don’t want

to use it, that’s OK, ‘cause somebody else
will use it and reap the benefits.”
Foundation Information Implementation
concepts Technology modalities

* Gartner Inc.

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

38 39
Caution! Pre-requisites
Infrastructure Horizontal org.
• Power culture
!  Calculation of TCO and ROI is important
• Communication
• Space
• Knowledge
sharing
for technology implementation • Access
• Security
• Communication
& Collaboration
• Motivation

!  Technology is not risk free. Training Management

• Literacy commitment
• Maintenance • Initial investment
• Maintenance
• Re-engineering
• Sustainable
source of fund

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010
 40 41
Conclusion Conclusion
Technology has been used to enhance
productivity
!  Efficiency in operations
!  Effectiveness in decision making However, innovating new experiences by the
use of technology is what businesses
need to focus on.
There are many success stories of using IT for
governance, cost leadership,
automation, supply chain optimization,
decision making etc.

IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010

42 43
Q&A At the end

Thank You

blog.pramodparajuli.com
IT in Business Pramod Parajuli, (C) 2010 IT in Business Pramod Parajuli, (C) 2010