The role of customer experience in technology strategy : implications for product adoption in information technology

Abstract

This research identifies and describes the impact of customer experience on the adoption of information technology products. The research findings are applied to the business case of a global technology firm entering into in the cloud computing space. We chose a customer-centric lens in order to better understand how information technology is turned into value for the customer. We complemented well-defined industry-level models of technology adoption by building an original system dynamics model of the relationships of the technology firm with its enterprise customers. Important dynamics were derived from the review and analysis of selected leading edge managerial frameworks that were best suited for the studied business. The market analysis includes interviews with potential enterprise and small business cloud customers, market analysts, and executives at several companies selling cloud computing services. At the firm level, we modeled the effect of different product launch and development strategies and the impact of organizational learning on new business development. The system dynamics model is a management flight simulator that overcomes the limitations of classical management frameworks. The model was calibrated against historical product adoption data that was provided by a leading global information service provider. By running different scenarios, managers may simulate the impact of investments in research and development and marketing. Managers may also test the implications of successfully designing a positive customer experience and of adopting a culture of continuous improvement and business experimentation. The results of this study show that in order to survive and compete in the digital economy, information technology companies need to shed a comfortable yet myopic focus on technology advantage and acquire the capability to develop and execute business strategies focused on excellent and inimitable customer experience. The willingness to experiment and ability to learn are critical success factors. Sustainable competitive advantage also hinges on having the ability to run business experiments, fail, learn from failures and effectively spread that knowledge through the organization.