Telefónica Digitizes Its Operations In Service Of The Customer

Dan Bieler

With Fred Giron

Like many organizations, Telefónica is going through a digital transformation. Our new case study “Telefónica Digitizes Its Operations In Service Of The Customer” investigates the approach that Telefónica has taken to prepare for digital transformation, including the impact of its transformation strategy on its customer experience, its operational setup, and its organizational transformation. Here are three key insights:

  • Collaboration between IT and business on customer journeys results in a qualitative dialogue. Telefónica’s CIO office no longer has a technology discussion with business leaders. Instead, they have a debate about business outcomes.
  • “Doing” matters more than “talking” about digital transformation. Telefónica’s CIO office has not tried to sound smart about digital transformation. It does not talk a lot about cultural transformation. Telefónica’s CIO office wants the culture change to be visible rather than intellectual.
  • Cultural issues are becoming more important as the digital transformation evolves. Telefónica has communicated, in detail, the need for and the approach to digital transformation to local operations as well as to all the channels to get business buy-in.
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Amazon Buys Whole Foods To Expand Its Digital Prowess In Retail

Brendan Miller

Written by Principal Analyst Brendan Miller and Principal Analyst Brendan Witcher.

Whole Foods’ brick-and-mortar expertise combined with Amazon’s digital prowess is a one-two punch that will give retail executives more sleepless nights. Our initial take on what Amazon’s $13.7 billion acquisition of Whole Foods means for the broader retail market:

  • To thrive in grocery, Amazon needs a keystone: the local store. Grocery is a high-frequency shopping experience. Whole Foods’ stores give Amazon a new store platform for deeper engagement across all its selling categories. Amazon can lock in its national distribution and logistics mastery with a local “place” in a way that other retailers will struggle to replicate. Now Amazon can tie into those weekly (or multi-weekly) grocery runs with add-on products and services further deepening their reach into customers’ wallets.
  • Amazon knows that to win at brick and mortar, retail theater is paramount. Whole Foods locations are destinations where the idea of “Retail Theater” still thrives. Consumers go to Whole Foods to shop but also to discover new foods, attend wine tastings, pick up prepared foods, and enjoy a cup of organic coffee. Whole Foods can be credited with turning Americans on to arugula, almond milk, and probiotics. The idea of retail theater and discovery is badly missing in most brick-and-mortar retail shopping experiences. Amazon is now getting private lessons from the master.
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The Predictive Marketing Analytics for B2B Marketers Forrester Wave

Allison Snow

When my colleague Laura Ramos and I set out to “Wave” the B2B predictive marketing analytics space, we knew that while there are impressive results across the board here, marketers struggle to identify differentiation among its vendors. We’re thrilled to have published Forrester’s first Wave that provides clarification to B2B marketers who seek to connect their business requirements to a predictive marketing analytics solution.

The Wave process begins by screening dozens of interested vendors and each participating vendor – household name or not – brings exceptional capabilities to the market.

We included 11 vendors in the assessment: 6sense, BrightTarget, EverString, Infer, Lattice, Leadspace, Mintigo, MRP, Radius, The Big Willow, and Versium.

Forrester Waves have a track record of delivering objective guidance to technology buyers of all stripes, supported with an interactive tool that marketers can use to zoom in on the capabilities that are important to them. We chose to focus on how well these offerings give marketers the ability to deploy predictive marketing analytics across the customer life cycle, to integrate with other popular martech solutions, and leverage a variety of data sources. Laura and I prioritized the following core principles as we built and assigned weights to each of the 28 criteria:

  • The extent to which solutions can reliably predict an outcome in a specific time frame.
  • The ease with which marketing and sales can execute campaigns using model output.
  • The degree to which model output supports engagement across the customer life cycle.
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Lessons Learned From The Recent British Airways Outage

Naveen  Chhabra

Like many others, we are trying to wrap our heads around the recent British Airways outage, an event so far-reaching and arguably avoidable that it’s difficult to believe such a thing can happen — yet it did. While our aim is not to criticize BA, this event provides some good lessons for everyone. It’s a reminder that bad things can happen, even to a good organization. You need to be aware of the risks to your own technology and business and defend against them before they harm your business and your customers.

As a rough estimate, BA will suffer direct losses of US$20 million to $25 million (75,000 passengers at an average revenue per passenger of about $300).[i] Three days of missed bookings amount to a potential additional $105 million loss, to say nothing of the reputational damage and other indirect losses. It might take the airline a few quarters to recover fully. Public memory is short, and the beleaguered traveler is forgiving, but a three-day no-show is extreme. BA execs will get to the root-cause analysis soon, but the event (and historical failures at airlines in general) provides a bonanza of lessons for execs everywhere who want to better equip their organizations to handle such exigencies.

Here’s what you should do:

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Now Accepting Entries For Digital Marketing Awards Asia 2017

Xiaofeng Wang

Jointly hosted by Forrester and CMO Innovation, the inaugural Digital Marketing Awards Asia 2017 aims to inspire marketers in Asia by highlighting innovative approaches to and best practices for digital marketing.

We’re looking for exciting B2C or B2B digital marketing programs that clearly deliver on business goals. To determine the winners of the Digital Marketing Awards Asia 2017, we will focus on how marketers use digital marketing at each stage of the customer life cycle. We’ve created three categories of awards, each corresponding to a different aspect of what Forrester calls the marketing RaDaR:

  • Reach: programs that generate brand visibility.Reach efforts drive discovery and awareness. These include word-of-mouth marketing, paid social advertising, and thought leadership.
  • Depth: programs that close sales.Depth programs pave the path for exploration and buying. These include ratings, reviews, and brand communities for information that helps to close existing prospects or leads.
  • Relationship: programs that build loyalty.Relationship tactics increase the loyalty and lifetime value of existing customers. These include a consistent presence on a social media account and loyalty programs designed to create repeat business.
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On An Agile Scaling Journey? Take Our Survey To Find Out How You Are Doing

Amanda LeClair

This year I’m excited to be teaming up with Diego Lo Giudice on the biannual Forrester Agile At Scale Adoption Survey. For the 2017 study, we’ve added a few more questions in areas that we see organizations struggle with. So in addition to successful Agile team practices, alignment with business stakeholders upstream and downstream with testing and operations, we are looking into more Agile at scale issues like budgeting and DevOps. Software development leaders continue to buy into Agile while eradicating traditional waterfall development. In the last Agile survey in 2015, we found that 46% of the respondents are still doing what Forrester calls Water-Agile-Fall, but not on a path to faster delivery. Leading innovator teams, which we called Agile Expert firms, have quickly turned passion projects into Agile success stories. But enterprises don’t just need to be quick and flexible on net-new projects or only at the individual team level; they need speed across the business.

As software teams mature along their Agile transformation, the biggest obstacle still is, despite some improvements, to scale up and horizontally. This means truly linking Agile initiatives, Design thinking and DevOps with business value. Our biannual Agile survey tracking the health of Agile initiatives for 2017 keeps its focus on the main challenge: Agile At Scale.

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Hortonworks Eats IBM — And Loves It

Brian  Hopkins

Big announcement at Dataworks today — IBM is transitioning Big Insights into a partnership with Hortonworks. This seems not unexpected and only mildly interesting until you think deeply about it. Then it hits you: Hortonworks, after digesting Microsoft, is now eating IBM. It’s a total reversal from the past, when big fish like IBM would eat little fish like Hortonworks. See my blog post from yesterday for more on this.

The tables are turned. Let me explain:

  • Working on distributed open source is new and complex. The young developers with the new skills and energy to work on this stuff don’t go generally to work for IBM or Microsoft. They go to work for valley startups who are challenging the big boys. This has been a problem for enterprise software vendors who have had issues developing and building a business around their open source work. Need proof? Microsoft got out of the Hadoop business first, then EMC did the same (through Pivotal, which then gave up), then Intel, and today IBM with their announced partnership with Hortonworks at Data Works 2017.
  • Proprietary data analytics tools are where the growth is. IBM isn’t  growing Infosphere; Teradata cut its prices in half to boost sales; and Oracle doesn’t even want to talk about Exadata in favor of “all cloud, all the time.” The future of these software giants is tied to how well they can navigate the disruption to their legacy business model, which is on-premises, scale-up, and centers on enterprise deals.
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Why Open Source Is Really Disrupting Enterprise Software

Brian  Hopkins

I had an epiphany today about a major reason open source is disrupting enterprise software. This is perhaps one of those things that you have heard so much, you've gone numb to it. All the big giants are still alive and kicking, however; so is this really happening? The answer is yes, however the mechanics are not what you think. It is not simply just a cost play. The acquisition - one of the main weapons that big software vendors had to fight disruptors - is losing effectiveness.  And that changes everything. Allow me to explain:

In the past, big vendors bought the smaller potential disruptors and got the code and customers. Cash disrupted the disruptor; investors got paid, and customers got the new technology as part of the big vendor's larger suite. Everyone was happy. 

In the open source model, the code is, well.....open source. The value is the people; and you can't keep most people from leaving, which they will. Cool, talented open source developers don't generally want to work for big, stoggie software vendors. Furthermore, customers bought into open source to avoid vendor lock in, so buying for the customers is not all that attractive either. This makes Hortonworks and Cloudera, for example, unattractive acquisition targets for the likes of IBM or Oracle. Hmmm...are you starting to see it?

Allow me to bring it all together: Open source is indeed erroding big software's vendor's profit; sure they are selling stuff, but open source disrupted sectors are not growing at the rate their stock price needs to keep investors happy. Investors will grow increasingly unhappy, cash will become scarce and big vendors will cut costs to prop up the bottom line and free up cash... for what - acquisitions? That doesn't work like it used to.  It's is a downward spiral.

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Cognitive Search Is The AI Version Of Enterprise Search

Mike Gualtieri

Cognitive SearchWritten by Emily Miller, Senior Research Associate

Stop Wasting Time

More than half (54%) of global information workers are interrupted from their work a few times or more per month to spend time looking for or trying to get access to information, insights, and answers. The problem: Old keyword-based enterprise search engines of the past are obsolete. Cognitive search is the new generation of enterprise search that uses artificial intelligence (AI) to return results that are more relevant to the user or embedded in an application issuing the search query. Forrester defines cognitive search and knowledge discovery solutions as

A new generation of enterprise search solutions that employ AI technologies such as natural language processing and machine learning to ingest, understand, organize, and query digital content from multiple data sources.

Cognitive search solutions are different because they:

  • Scale to handle a multitude of data sources and types.Search is no longer just about unstructured text contained in documents and web pages. Cognitive search solutions can also accommodate structured data contained in databases and even nontraditional enterprise data like images, video, audio, and machine data such as from internet-of-things (IoT) devices.
  • Employ artificial intelligence technologies. The distinguishing characteristic of cognitive search solutions is that they use natural language processing (NLP) and machine learning to understand and organize data, predict the intent of the search query, improve relevancy of results, and automatically tune the relevancy of results over time.
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Busting The Big Myths Of Retail: The Real Reasons Retailers Are Missing The Mark

Brendan Witcher

If you believe what you've heard in this year’s earnings calls, retailers are losing every dollar of business to Amazon. Are they? No. They’re losing some, but the estimates on Amazon’s pure, non-marketplace growth don’t even come close to every other retailer’s declines. Amazon's growth is a symptom of - not the reason for – retailers’ problems. Retailers in decline are also losing sales to the many multi-channel retailers that are growing and actually - *GASP* - opening stores, as well as new market entrants, including brands selling direct.

The other big industry myth: online sales are adding to total retail sales growth more than in-store sales. The facts: last year, retail sales grew $128B excluding items like fuel and autos. Online sales added a healthy $53B, but in-store sales added an even healthier $75B. The result of these myths: some retailers believe they should close stores and compete more online to resolve issues. But this strategy actually makes their problems worse, and closing stores is likely the first step to ultimately closing the doors.

Retailers struggling today suffer from brand problems, not store problems. They have failed on five main fronts. Specifically, they:

  • Don’t focus on solving customer pain points. The ability win in today’s environment is just a matter removing customer pain points to improve experiences along the shopping journey. Unfortunately, many retail teams we speak to make the issue too complicated, and aren’t even aligned on what their customer pain points are.
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