Yesterday Microsoft announced it would acquire Mojang along with its massive Minecraft gaming franchise for $2.5 billion. By now we've all seen the coverage, including the gratuitous interviews with middle-schoolers about whether Microsoft is "cool" enough to own Minecraft. By and large, we think this is a good acquisition for Microsoft, and we said as much in our Quick Take, just published this afternoon, summarizing the acquisition, its benefits, and its challenges for Forrester clients. Go to the report to read the client-only details of our analysis: "Quick Take: Microsoft Mines Minecraft for the Future of Interactive Entertainment." As we explain in the report, there are specific challenges Microsoft will face that will determine whether this ends up being a sensible acquisition or a sensational one.
Beyond the detailed analysis of the report, it's worth exploring the long-term question of what that sensational outcome would look like. The difference turns on the question of whether Microsoft is ready to invest in the future of digital interactive entertainment. This is a subtle point that has been missed in most analysis of the acquisition. Most people insist on covering the purchase as a gaming industry event. Microsoft, the owner of the Xbox, buys Minecraft, a huge gaming franchise. But that low-level analysis misses a bigger picture that I sincerely hope Microsoft is actively aware of.
Centres of excellence and shared service teams are nothing new. Its a concept that Technology Management teams have been wrestling with for years, if not decades in an effort to streamline underlying technical architecture and simplify application landscapes. In the digital world, its a less well established approach, but one that is gaining momentum as an emerging set of best practices forms around how to organize and manage a global digital strategy.
Pete Blackshaw has led the charge over the last couple of years at Nestle, establishing a widely publicised Digital Acceleration Team. The team focuses on “listening, engaging, inspiring and transforming” across Nestle’s disparate and diverse markets and brands. Its not just an operational centre of excellence, it walks a fine line between dictating to local teams and being a paper tiger with no real influence. And it does so very effectively.
But why “acceleration team” and not “centre of excellence”.
I believe that the language is important. For a local team, the idea that a global “centre of excellence” is going to roll up and tell them what to do can be a very negative experience. Do the global team understand the nuances of my market? Will migrating our lean, agile eCommerce platform onto the behemoth enterprise platform slow us down?
“Acceleration” helps create a more positive and collaborative approach.
I’m not a whiskey drinker, but I do love history, and selling. So when I read this quote from the October 16, 1861 Memphis Daily Appeal in a University of North Carolina blog recently, I couldn’t help get a chuckle and also make a connection to today’s sales enablement challenges.
“Times are tight here, as indeed they seem to be everywhere. Pea-nuts have advanced fifty per cent., and three-cents-a-drink whisky is now so diluted, I am told, that a good sized drink would come near to bursting a five gallon demijohn [a large bottle having a short, narrow neck, and usually encased in wickerwork]. I have noticed several who kept well soaked during the winter season have not been generally more than half drunk during the present, owing to the aqueous element present in the elevating fluids, thus preventing the stomach from holding enough to affect the head.”
This quote relates to sales performance in two ways. First, this article was written at a historically significant time in regard to how your sales force probably sells your offerings today. Second, a trending business strategy — in response to contemporary financial challenges — has diluted the potency of what, until recently, your buyers valued most about your salespeople.
It's never been as challenging for global companies in China as it is right now. First, we've seen a continuous stream of news about the Chinese government requiring greater regulatory governance, starting with the cybersecurity vetting of IT products that relate to national security and public interests in May. Second, leading Chinese Internet companies equipped with emerging technology, such as Alibaba, Baidu, and Tencent, are engaging consumers with enriched products and services, expanding into the enterprise business via innovative business models, and extending their reach from tier-one and tier-two cities to tier-three to tier-six ones.
To gain extensive geographic and vertical coverage in the huge market that is China, vendors have had to engage with partner ecosystems for business operations. Now, it’s even more critical for multinational corporations to enable their local alliances to overcome these disruptions and achieve mutually beneficial strategic business growth. Some vendors have already started doing so, with IBM being a leading example. Its initiatives include:
Launching a strategic partnership with Yonyou. On September 13, 2014, IBM announced the start of its strategic cooperation with Yonyou during the latter's 2014 user conference. IBM will optimize DB2 with BLU Acceleration for various Yonyou products, such as NC (Yonyou’s ERP offering) and its supply chain management, customer relationship management, and human resources management products. In return, Yonyou will offer NC on top of DB2 with BLU acceleration to its customers, based on its evaluation of IBM’s product in June 2013.
At Sitecore’s annual Symposium event last week, CEO Michael Seifert opened the show with a story about a splash of paint and small town in Tuscany -- a Jackson Pollock splash of paint and the town where he proposed to his wife to be exact. Fast-forward a few minutes and Seifert revealed the plot: tying his knowledge of his future wife’s love of Jackson Pollock with the context of how he fumbled (and then recovered) his marriage proposal, she agreed to marry him. He told this story to deliver his message of ‘experience marketing’: the more you know about someone and the context they’re in, the better your chances to dynamically respond to and refine the experiences that will resonate with them.
While nay-sayers might comment that this strategy feels like a ‘me too’ to Adobe’s Marketing Cloud announcements from the past few years, the specific features were getting a healthy amount of excitement from the audience because they saw momentum. Specifically, momentum built on v.7.5’s MongoDB "Experience Database" foundations released in July. These foundations will be put to good use to help v.8 deliver new features later this year or early 2015 around customer data and content testing/ optimization:
Unified experience profile includes visualization across the customer’s interactions over their entire relationship timeline. All data in profile is (or will be) fully extensible and you can personalize against it.
Nearly all marketers say they use social media. But many aren’t getting much value from their investments. Despite marketers’ excitement about social media, many say the channel simply doesn’t offer enough return on their investment; for instance, barely one-half of those who buy Facebook ads say they’re satisfied with the business value those ads provide. The sobering reality is that a decade into the era of social media, many social marketers remain baffled by the channel.
The good news? There are success stories you can study to see how social media can work for companies like yours. In April 2014, Forrester announced the winners of the eighth annual Forrester Groundswell Awards. The awards recognize the very best in social marketing — focusing on programs that go beyond engagement metrics to deliver real business value to both B2C and B2B marketers in a range of industries.
My sister used to tell me that I wasn’t smart I was just organized. I’m not here to argue (anymore) but I have never forgotten her claim. In fact, it’s true for more than just me. It’s really what is at the heart of smart cities. It’s not about what you know but what you can do with it. The industry has been pushing “smart” on cities for a half a decade. But the most successful stories about cities cutting their cost of operations and improving the lives of their citizens are about being better organized or more efficient.
At the Schneider Electric Influencer Summit in Boston this week, Schneider execs and customers focused their smart city story on just that – getting more efficient. We all have heard the numbers: cities take up only 2% of the world’s surface but they consume 75% of the world’s energy and account for 80% of the world’s carbon emissions. As the Schneider CMO cited, “If left unchecked, our appetite for energy will grow 50% by 2040.” And there is significant room for greater efficiency. The sweet spot for Schneider in this Next Age of Change is in helping cities control their public energy consumption. While their vision – and “marketecture stack” – extends into water and other domains, they plan to establish their footprint with energy efficiency. Phew! That’s a refreshing change from vendors who want to do it all.
[Apologies to all who have just read this post with a sense of deja-vue. I saw a typo, corrected it and then republished the blog, and it reset the publication date. This post was originally published several months ago.]
Having been away from the Linux scene for a while, I recently took a look at a newer version of Linux, SUSE Enterprise Linux Version 11.3, which is representative of the latest feature sets from the Linux 3.0 et seq kernel available to the entre Linux community, including SUSE, Red Hat, Canonical and others. It is apparent, both from the details on SUSE 11.3 and from perusing the documentation on other distribution providers, that Linux has continued to mature nicely as both a foundation for large scale-out clouds as well as a strong contender for the kind of enterprise workloads that previously were only comfortable on either RISC/UNIX systems or large Microsoft Server systems. In effect, Linux has continued its maturation to the point where its feature set and scalability begin to look like a top-tier UNIX from only a couple of years ago.
Among the enterprise technology that caught my eye:
Scalability – The Linux kernel now scales to 4096 x86 CPUs and up to 16 TB of memory, well into high-end UNIX server territory, and will support the largest x86 servers currently shipping.
I/O – The Linux kernel now includes btrfs (a geeky contraction of “Better File System), an open source file system that promises much of the scalability and feature set of Oracle’s popular ZFS file system including checksums, CoW, snapshotting, advanced logical volume management including thin provisioning and others. The latest releases also include advanced features like geoclustering and remote data replication to support advanced HA topologies.
Beautiful, but a niche product. I estimate that only 10% of the 250 million worldwide iPhone users will buy the Apple Watch. That's approximately $8-$12 billion of revenue for Apple -- not bad, but hardly the "breakthrough" or "new chapter" claimed from the Cupertino stage.
Why? 1) For many, two devices on the body are unnecessary. Pulling the iPhone out of a pocket or purse is fine -- most will not need another device to access payments or track health. 2) What we wear is a deeply cultural and emotional choice. A watch, like a shirt, shoes, tattoo, skirt, jewelry, contains complex and carefully crafted information about the wearer -- and these messages are continually massaged and warped by the often inexplicable forces of fashion. And no amount of "Milanese" and "buckle" luxury watchband talk can obscure this issue. 3) Wearing a radio directly on the body spooks many people who rationally or irrationally fear the health risks of close electromagnetic radiation. 4) It's expensive -- and not covered by carrier subsidies. It's $600 for the whole package of a subsidized $200 iPhone and the $400 Watch. 5) The form factor has fixed limits -- the small screen obviates advertising, electronics fatten the case, big fingers obscure the screen when touching. For many, the form will be seen as simply ugly. 6) Having to charge yet another device every day will be a bridge too far for many.
Allow me to make a confession: In the debate over whether people are rational or emotional decision-makers, I have persistently seated myself on the rational side of the table. However, recent research has challenged my views. Witnessing cross-discipline academics reinforce the motivating power of emotion has resulted in a general consensus among fellow rationalists that “reason leads to conclusions; emotion leads to action.”
We are now recognizing the power of emotional decision-making in consumer behavior and — most importantly — the effect that it has on a company’s bottom line. Nothing is more convincing than the data itself. For example, a combination of Forrester's Consumer Technographics® quantitative and qualitative insight shows that when banking providers fail to meet a customer's expectations in moments of high emotional investment, they risk losing that customer altogether:
From the moment they open an account to their on-going interactions with bank employees, customers navigate a series of emotional experiences that directly affect their decision to enhance or withdraw from the brand relationship. Companies that appeal to customer emotions during such engagements master these "moments of truth" and ensure that outcomes are positive — and profitable.