Anjali Yakkundi, Analyst Webinar Separate Hype From Reality: Evaluate Your Agency’s Technical Chops Anjali Yakkundi, Analyst September 18, 2013. Call in at 10:55 a.m. Eastern time

“Often, my IT group isn’t even aware of what application development and implementation are being outsourced. Eventually, this creates a big problem for us . . . we have to clean up a lot of messes.” North American manufacturing organization

“Our marketing group paid an agency $250,000 to launch an app and didn’t tell IT. There was no QA done; the agency had no idea how to measure satisfaction, and the app was unstable. The app had just a 2.5 star rating in the iOS app store, and eventually, marketing had to kill the app because it just wasn’t working.” Fortune 500 company Source: http://www.apple.com

Agenda Agency selection is an IT and marketing obligation. The agency market is changing. Ask the right questions to choose the best fit agency. Recommendations

Agenda Agency selection is an IT and marketing obligation. The agency market is changing. Ask the right questions to choose the best fit agency. Recommendations

IT and marketing must work together to deliver great digital experiences. Source: http://www.homedepot.com

Only 12% of surveyed organizations are doing all digital experience work in house. Base: 185 digital experience professionals; Source: March 2013 Global Digital Experience Delivery Online Survey

“Which of the following areas are you most likely to outsource (either partially or wholly) to a third-party partner in the next 12 to 24 months (2013 to 2014)?” (Select up to five.) Q11 Base: 185 digital experience professionals; Source: March 2013 Global Digital Experience Delivery Online Survey

But what’s going wrong? Digital experience requires access to key systems, which IT often owns. Your key systems are growing more complicated. Marketing often selects agencies without consulting IT. Agencies are claiming to be everything and anything, depending on what the client needs.

Agenda Agency selection is an IT and marketing obligation. The agency market is changing. Ask the right questions to choose the best fit agency. Recommendations

Businesses engaged in digital experience delivery seek a new generation of service provider — one that combines technology competence with marketing strategy and creativity. This provider must engage both marketing and IT teams.

Service providers come from many different backgrounds Type of provider Definition Example strengths Consultants Background in strategy, business requirements, and project management Strategic alignment, business requirements, organizational assessments, governance, project management Systems integrators Background in technology implementation, services, and integration Technology implementation, analysis delivery, integration, managed services Creative, design agencies Background in creative and user experience Creative design, user experience, customer research Marketing strategies Background in brand strategy and marketing operations technology Marketing operations technology, brand awareness, brand strategy, advertising

These service providers are now converging Consultants Systems integrators Creative design agencies Marketing strategists Few or no agencies have all four components.

Agenda Agency selection is an IT and marketing obligation. The agency market is changing. Ask the right questions to choose the best fit agency. Recommendations

Questions to consider within your organization

How much will you outsource?

What services do you need? Technology implementation CX strategy Customer research Managed services Systems integration Digital experience service providers eCommerce Advertising Application development Search marketing Creative design Content strategy

Where do you need technology help? Source: September 3, 2013 “TechRadar™ For AD&D Pros: Digital Customer Experience Technologies, Q3 2013” report

Will you send out an RFP?

Questions to ask your potential service provider

Strategic questions to consider What is the vendor’s strategic vision? Is this the right cultural fit? What are some past clients’ works? Does the agency have experiences as an agency of record or as a specialist? Will any technology work be outsourced to subcontractors?

Functional questions to consider What is your governance framework? What is your change management framework? What project methodology do you prefer? What is your content strategy framework? What is your past experience with application development? What technology solutions do you have experience with? Number of employees Number of deployments Past customer case studies

Agenda Agency selection is an IT and marketing obligation. The agency market is changing. Ask the right questions to choose the best fit agency. Recommendations

Recommendations Bring IT and marketing to the table for agency decision-making. Understand the service provider landscape, and take a stake in owning these relationships. Decide your right outsourcing mix depending on your maturity, but keep critical components in- house. Selecting an agency is more than a checklist — prioritize strategic vision, culture, and past work.

Forrester’s Forum For Application Development & Delivery Professionals DRIVE CUSTOMER EXPERIENCE WITH SMART TECHNOLOGY SOLUTIONS October 17-18, 2013 · JW Marriott Indianapolis In the Age of the Customer, market leading strategies for mobile, big data, and customer experience are now required to satisfy an increasingly demanding client base. As a leader of solution delivery, you have to drive the design of your firm’s customer experience. Join us to learn how to: Build architectures focused on customer experience. Turn big data and analytics into business strategies. Design world-class digital and mobile solutions. Create sustainable, agile platforms and solutions. Register before Sept. 7 for Early Bird pricing. Use Promo Code “ADD13WEB” to save an additional $100! www.forrester.com/ADD13

Anjali Yakkundi +1 617.613.6386 ayakkundi@forrester.com