Forrester Projections for Technology and Business Landscapes in 2018

As 2018 rolls around, the tech landscape at the start of the year is always interesting. In addition to records from one year that has been running, predictions are also always rolled out, because basically this landscape has various calculations so that future trends can be well projected. One of the global-class research institutions that has released its predictions for 2018 trends is Forrester. Based on his research from existing developments, here are some things that are predicted to be booming in 2018 according to Forrester:

Awareness of Customer Experiences (CX)

Customer Experiences (CX) is a core strategy for businesses to adapt to economic developments in the market. Forrester's 2017 CX Index noted a decline in the quality of CX across various business lines and industries. In 2018, about 30% of companies will begin to realize the decline in CX's performance, because little by little the losses will begin to be felt. From there there will be other implications, namely 2018 will also be an important year for CX's growth, to provide the best experience and strengthen customer trust in the business.

The emergence of AI-based intelligent agents

Artificial Intelligence (AI) will do more. The trend that is already present today - including in Indonesia - has become a model that is starting to be widely adopted. 2018 is a starting point. Intelligent agents will continue to strengthen their influence on consumers and suppress brand to engage through the power of subtle conversation.

Digital crisis

In 2017 there was a lot of campaigning about digital transformation, unfortunately many still consider this effort an elective operation. In fact, businesses need to pay important attention to this transformation. Digital customers want more experience to achieve satisfaction with a service. Forrester's research results show that 60% of business executives have begun to admit that they are lagging behind in digital transformation.

The digital talent gap

Wage growth of 2% to 4% indicates a relatively balanced market. However, the facts on the ground still revolve around the lack of specialized roles such as data scientists, information security analysts, high-end developers, and information systems architects to improve CX. In 2018, the issue of talent will widen the gap between digital “predators” and “prey”. One effort that many are aggressively pursuing is setting up digital incubation centers and paying up to 20% above market rate to change the game.

Machine empowerment or automation

In 2018, 10% of consumer purchasing decisions will be guided by platform-based agents and initiate the real economic impact of empowering machines. The intelligent platforms and agents developed will aggregate preferences, behaviors, transactions and emotions, creating a richer individual experience. Smart agents will use that data to further influence consumer choices and decisions. This model is nothing new. It's an old piece of advertising logic in the world. The difference is that this model is based on an emergent, dynamic, and emotional relationship between the agent and the consumer.

The power of algorithms for marketing

Algorithms are the main foundation of digital platforms like Google's and Amazon's. Algorithms are the language of platforms and intelligent agents. Today's algorithms are mostly related to how platforms are able to understand customer preferences, recommend actions, study behavior, and act properly. In 2018, CMOs will need to leverage intelligent algorithms to interpret and empower AI-based platforms. But according to Forrester, 25% of CMOs will fail, so brand they have no distinction (advantage) and remain silent in the market.

Customized digital marketing

The behavior of customers is already clear, they avoid advertising. As a result, advertising financing will have a less significant impact. Some brands may cut spending on advertising spending. This is not an advertising budget crisis but simply a change of priorities. Instead of plowing money into traditional ad spending, CMOs will increase spending to revitalize CX, align loyalty programs, invest in algorithms for platforms, and advance other marketing technologies. Ad spending will flatten out in 2018 and cause a painful correction in the agency and adtech markets.

Challenges to the General Data Protection Regulation (GDPR)

GDPR challenges how companies balance risk and cost for security. Forrester predicts that 80% of GDPR-affected companies will not comply with the regulation until May 2018. Of those non-compliant companies, 50% are intentionally non-compliance - meaning they have weighed the costs and risks and taken the path that presents the best position to their company. The other 50% try to comply but will fail.

A more open banking business

The conventional banking business model is under attack, and the most significant is the fintech trend that is hitting global market share. The inability of banks to deepen the value of customer relationships is a major factor. Reported by PSD2, open banking under siege will play a key role in data-driven operations. Banks will no longer have a monopoly over their treasure trove of customer data. Amazon and Google, fintech service providers, and challenger banks will leverage access to data, crippling or displacing banks incumbent. By 2018 according to Forrester, more than 50% of banks will fail to exploit open banking, starting to decline, a painful path to accidental utility.

Harmonization of retail experience

The retail industry continues to grow, but challenges lie ahead for traditional retailers. Retailers need to consider how to work with intelligent agents who will take on a larger share of how customers find and order, create vibrant and dynamic store experiences, use physical stores as logistics nodes, expand digital catalogs to match platforms like Amazon, and align all of this in a graceful and different journey for customers. Only 33% of retailers understand the disruptive and beneficial nature of smart agents; 67% no.

Improving AI implementation

AI is rapidly changing how companies create personalized experiences; how consumers balance privacy and value with democratizing their data; and how employees shape their professional pathways to include greater interaction with machines. The focus of conversational AI centers on using AI technology to add intelligence or create conversational interfaces.

However, the 2017 investment focused on discrete use cases and projects to prove immediate business value. The benefits are too narrow and will be short-lived. In 2018, 75% of AI projects will flood in for failing to define operational considerations, causing business leaders to reset the scope of AI investments - and put their companies on the path to realizing the expected benefits.

The future of blockchain

In 2018, the combination of rhetoric and enthusiasm will continue to increase the potential of blockchain. However, a 30% proof of concept will accelerate blockchain for companies that can consider its operational impact.

Awareness of the advantages of security systems

Companies face increasing threats cyber from hacker trying to do cyberwarfare or industrial sabotage. In 2018, we will begin to see security for profit measures driven by security, risk, and privacy teams with support from their marketing and product partners. At the heart of this is identity management. Security and privacy teams need to know exactly who is accessing what and address identity at the point of entry. Marketing can use the same capabilities in the martech stack (marketing technology) for personalization - converting security credentials to CX enhancements. In the coming year, 10% of companies will crack this code and earn leverage new and strong investment.