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Forrester Projection for Technology and Business Landscape in 2018

Related to a made-up intelligence and security for user experience improvement

2018 is already started and the early year technology lanscape will always interesting. Besides a one-year report, there are predictions, because the landscape has various calculations for future trend to be properly projected. One of the global class research instititutes already released its prediction for 2018 is Forrester. Based on the current development, there are some predictions of what is booming in 2018 according to Forrester.

Awareness of Customer Experiences (CX)

Customer Experiences (CX) becomes a business strategy to adapt with economic development in marketplace. Forrester's CX Index in 2017 records the decreasing quality in various line of business and industry. In 2018, around 30% company begins to aware the CX's decreased performance, as they will sense the loss eventually. There will be other implications, as 2018 is going to be an important year in CX development, to give the best experience and strengthen customer confidence for business.

The rise of AI based smart agent

Artificial Intelligence (AI) will act further. The current trends-including in Indonesia-has become models to be adopted and 2018 is a starting point. Smart agents will continue to strengthen their influence on consumers and push brands to engage through the power of subtle conversation.

Digital Crisis

In 2017, digital transformation campaigns are widely promoted, unfortunately many are assume the effort as an elective operation. Whereas business also needs to significantly notice the transformation. Digital customers demand further experience to be satisfied over a service. Forrester's research result states 60% business executives have started to admit their lag in making digital transformation.

The gap of digital talents

The wage growth of 2% to 4% shows a relatively balanced market. However, the existing fact on field is a lack of specific roles such as data scientist, information security analyst, high-end developers, and information systems architects to improve CX. By 2018, talent issues will broaden the gap betweeen digital "predators" and "prey". An aggressive attempt that many has done is to set up a digital incubation center and pay up to 20% above the market rate to change the game.


In 2018, 10% of consumer's purchase decision will be led by platform-based agents and embark on the real economic impact of engine empowerment. The developed platform and smart agent will collect preferences, behaviors and emotions, creating a richer individual experience. Smart agents will use the data to influence further on customer's choices and decisions. The model is nothing new. It is the old part of world's advertising logic. The difference is, it is based on the emerging, dynamic and emotional relationship between agents and consumers.

Algorithm for marketing

Algorithm becomes the main foundation of digital platform as Google and Amazone. It is the language of smart platforms and agents. It is now associated with the way a platform could understand customer's preferences, recommend actions, learn behavior, to properly act. By 2018, CMO needs to use intelligent algorithms to interpret and empower the AI-based platform. According to Forrester, 25% CMOs will fail, causing their brand to have no distictinction (uniqueness) and stuck at the market.

Customized digital marketing

Customer's behavior is clear, they avoid ads. As a result, advertising finance will have insignificant impact. Some brands may cut the ads budget. It is not a budget crisis, only changing priorities. Instead of hijacking money on traditional ads, CMO will extend budget to revitalize CX, align loyalitas programs, invest in platform's algorithms and advance other marketing technologies. There will be a flat ads budget for 2018 and painful correction in agency and adtech market.

Challege for General Data Protection Regulation (GDPR)

GDPR challenges company in balancing risk and cost for security. Forrester predicts 80% of GDPR-affected companies will not comply with the regulation until May 2018. Of the non-compliant companies, 50% are deliberate-meaning they have considered the cost and risk, and taking path that serves the best position for the company. The other 50% try to comply but will fail eventually.

The more accessible banking

Conventional banking is now booming, significantly as fintech trends invading global market. Bank's inability to tighten customer relation becomes the main factor. Reported on PSD2, open banking will play a key role in data operational. Bank will no longer have a monopoly on customer's data. Amazon and Google, fintech provider and bank rival will use data access, outrun and replace incumbent banks. In 2018 on Forrester, more than 50% bank will fail to exploit open banking, start to fade, a painful path to become an unintended utility.

Retail experience harmonization

Retail industry is currently growing, but the challenge lies ahead for traditional retailers. They need to consider on working with smart agents which going to take bigger part of how customer find and order, create dynamic experience, use physical store as logistic nodes, expand digital catalogs to match platforms like Amazon, and sync them in gracefful and different trip for each customers. Only 33% retailers understand the annoying and profitable character of smart agents; 67% not at all.

Implementation of AI improvement

AI is rapidly changing how company creates a personalized experience; how consumers balance privacy with value by data democratization; and how employees build their career path to get much bigger interaction by machine. AI conversation is focused on technology usage to add intelligence or create a conversational interface.

However, 2017 investment is focused on project and discrete usage cases to prove direct business value. The benefits are too narrow, it will not live long. By 2018, 75% of AI projects will be flooded due to failure in determining operational plan, causing business leaders to reset the AI investment scope - and putting the company on the road to reach the expected benefits.

Blockchain future

By 2018, rhetoric and enthusiasm combination will continue to improve blockchain's potential. However, 30% concept proof will fasten blockchain for those companies able to consider its operational impact.

Awareness of security system value

Companies are facing cyber threats from hackers trying to do cyberwarfare or industry sabotage. in 2018, we will see profit-measured security driven by privacy, risk and security team supported by their product and marketing team. The point is identity management. Privacy and security team need to know exactly who accessing what, and overcome the identity on the first place. Marketing may use the same capabilities in martech stack (marketing technology) for personalization - changing security mandate into CX enhancements. Next year, 10% of the companies will break this code and gain new and strong investment leverage.

Original article is in Indonesian, translated by Kristin Siagian

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