On the heels of the CrossIdeas acquisition (about which we have recently published a QuickTake), IBM today acquired another IAM cloud provider, Lighthouse Security Group. Its product and service, Lighhouse Gateway, is a small cloud provider that appeared in our Cloud IAM Wave and we were impressed by the "slickness" and ease-of-use of its customer interface for administration (policy management) and also for end users (Lighthouse Gateway provides its own front-end to ISIM and ISAM).
Now we recommend that IAM security and risk professionals should ask IBM the following questions about the acquisition:
1) How will IBM offer Lighthouse Gateway? Will it be an add-on to ISIM and ISAM licenses or will it be a standalone offering or both?
2) How will IBM integrate the beautiful user interface of Lighthouse Gateway into ISIM and ISAM on-premises offerings?
3) How will the new IBM IAM access governance ecosystem of ISIM+CrossIdeas be merged with Lighthouse Gateway?
It’s a fact: Marketers in Asia purchase digital technologies without involving the tech management department. They do it because they believe that:
Digital technologies are key enablers of successful marketing strategies. Customers in Asia Pacific in general, and in Singapore in particular, are always connected and empowered by technology to access the right information in their moments of need. They increasingly value — and do business with — organizations that provide them with experiences that are effective, easy, and emotional across all customer touchpoints. It’s not a surprise, then to see marketing professionals — just like their colleagues in sales, product management, and customer service — source digital technologies to enable such experiences.
The tech management department hinders their business success. This is the more worrying part, but if you take a step back, as a technology management professional, you understand why. You work with technology life cycles that are oriented toward core business, back-end systems like enterprise resource planning and therefore are risk-averse and slow. However, marketers need tech management professionals who are open to innovation, experimentation, and moving toward a risk-tolerant, agile life cycle that supports digital experience delivery.
For many organizations, the digital journey is full of potential roadblocks. Successful organizations excel at overcoming traditional operational practices, approaches, and mindsets to enable change.
For a well-known global brand like Avon, embracing an omnichannel approach to customer engagement was essential to continue thriving in a digital world. We’re therefore pleased to have Carl Mogridge speak at Forrester’s Summit For Marketing & Strategy Professionals: Australia. Carl is head of digital at Avon Products, leading the company’s initiatives to implement systematic, measurable change on the path to digital disruption.
Carl was kind enough to answer a few of our questions about what he’s doing. Those of you who’ll be with us in Sydney this Wednesday, August 13, can hear even more from Carl. I hope to see you there!
Q: When did your company first begin focusing on the customer experience? Why?
Avon is 127 years old and from day one we’ve focused on creating customer-centric conversations based on personalized service and innovative products. At Avon, we want to be helpful, safe, and reliable to our customers — so our entire customer experience strategy revolves around these simple criteria.
Q: How do you determine which aspects of the customer experience you must try to excel at?
Chances are, you've recently visited a brand's webpage and stumbled upon a visually appealing, Pinterest-like media gallery with photos of happy customers and the brand's products. Today, media galleries are all the rage as marketers attempt to capture the priceless content their audiences are generating on social networks and at live events. But before you run out and invest what's left of your 2014 marketing budget on a social content curation platform (see Figure 2 from this report) make sure social content curation will help you:
Last week, two news items captured the front-page headlines of the Indian financial newspapers. The first was an announcement by Flipkart on July 29 that it has raised fresh capital of $1 billion in one of the largest funding rounds. The second was an announcement by Amazon on July 30 that it will invest another $2 billion in India. These numbers appeared large to us when seen in the context of overall online retail sales in India. As per the Forrester Asia Pacific online retail forecast published in early October 2013, India’s online retail spending was expected to reach $2 billion by the end of 2013. We believe that the pace of eCommerce in India picked up faster than our expectations during the past 12 months and these companies would have witnessed very strong growth. According to Amazon, at current scale and growth rates, India is on track to become the fastest country ever to reach $1 billion in gross sales. It is important to note that Amazon launched India operations in June 2013 only.
These events raised many interesting research questions for us. We will try to address them as we work toward updating our APAC online retail forecast for the years 2014 to 2019. The two most important questions relate to the number of online buyers in India and the mobile commerce opportunity in India.
Last week Peter Sheldon and I published The Forrester Wave TM: Omnichannel Order Management, Q3 2014 report, assessing order management vendors targeting omnichannel businesses. Compared to our 2010 Forrester Wave on order management hubs, this new stream of research addresses the heightened requirements that order management systems (OMS) must now help broker and fulfill orders across all distribution centers as well as physical stores. Based on our research many retailers are seeing a significant lift in online sales by enabling all inventory in the enterprise to be sold. The omnichannel OMS applications evaluated in this Wave differ from our 2010 evaluation because:
Inventory transparency is a priority. In a world where digitally enabled customers expect to find and purchase products from any touchpoint, inventory visibility is now a requirement for OMS applications. The OMS today is responsible for consolidating and maintaining inventory positions from various systems including WMS, eCommerce and even from the supply chain. This consolidated, enterprise view of inventory is made available to customers in near-real time, affording shoppers the best opportunity to have their needs met regardless of the whereabouts of the product.
Corporations spend a lot of time and money to ensure their employee- and customer-facing technologies are compliant with all local and regional data privacy laws. However, this task is made challenging by the patchwork of data privacy legislation around the world, with countries ranging from holding no restrictions on the use of personal data to countries with highly restrictive frameworks. To help our clients address these challenges, Forrester developed a research and planning tool called the Data Privacy Heat Map (try the demo version here). Originally published in 2010, the tool leverages in-depth analyses of the privacy-related laws and cultures of 54 countries around the world, helping our clients better strategize their own global privacy and data protection approaches.
The most recent update to the tool, which published today, highlights two opposing trends affecting data privacy over the past 12 months:
Increased government surveillance continues to impede the free flow of information. Corporations worry that storing or processing data within the borders of a country with high levels of governmental surveillance could place their intellectual property at risk. Notable additions to the tool's growing list of countries with lowered barriers to government surveillance include the US, Germany, and the UK.
An agency head told me how he was on a call between the European head of marketing for a US brand and that brand’s board of directors. The chairman asked the marketing honcho, “How is the European market?” The marketer answered, “There isn’t one.” Awkward silence. “That is, there is no European market. There is a French market. A German market. A British one. And so on. I can tell you about those.”
In no other sphere of marketing are these national differences magnified more than in social media. Social media is, by its nature, participatory and thus takes on the form, tone, and color of its users. Social media in Germany is German social media. In France, French social media.
Then brands enter the picture. That social media strategy hatched in Dallas or Dublin, with a sum earmarked for translations, will not cut it.
Three reasons cookie-cutter strategies will fail in Europe:
Europeans as a broad group are less likely to engage with brands on social media than, say, in the United States or metro Hong Kong.
Europeans’ usage differ significantly country to country; Italians usage is not comparable to German usage.
Each market boasts strong local players that excel at the intricacies of their market’s social media usage.
Every business and industry faces digital disruption today. Digitally empowered customers demand a much higher level of customer obsession to win and keep their business, and they are forcing firms to redefine their business models. Whether you are in banking, insurance, financial services, education, media and entertainment — essentially, in any industry — digital technologies will disrupt your business. Nevertheless, our research shows that firms currently favor a bolt-on digital strategy over digital transformation, but this will drive only limited value from their digital investments. Digital strategy is not about adding a new mobile app or building a social media presence. It requires a fundamental shift in business strategy, responsibilities, technology capabilities, and organizational structure.
Against this backdrop, Forrester is holding its third series of CIO Summits across Asia Pacific in August and September. The India summit is on August 21, 2014 in Mumbai with the theme of: "Beyond IT: Empower Digital Business In The Age Of The Customer." Just like last year, we expect around 150 CIOs to attend the event. The Summit will focus on the significant shift we’ve seen in CIOs' traditional focus — from the design and deployment of internal systems focused on process control to digital products and services for their customers. Of particular importance on the digital journey are three domains:
- Customer experience.
- The mobile mind shift.
- The transformation of big data into actionable business insights.
Over the past year, we’ve told banks that some of them would become custodians. We’ve told insurers that many of them would be forced to specialise. We’ve told wealth management firms that many would shrink. We’ve done this to show them how digital disruption could savage retail financial services, just as it has done with the music and publishing industries.
But we don’t want to be just the bearers of bad news: We want to help you deal with new players like peer-to-peer lending platforms and even Google entering retail financial services. And to be fair, it’s not all bad news. There are plenty of companies out there using digital innovation to meet their customers’ financial needs in new and better ways. Take for example BBVA which has brought its customers the virtual assistant Lola, video banking, and the crowdfunding platform called Suma. And BBVA hasn’t stopped here. The Bank is currently running the sixth edition of its Open Talent competition for start-ups most likely to affect financial services.