The Most Agile Banks

Craig Le Clair

Banks are burdened with sizable infrastructure, struggle to service traditional and emerging channels, are severely boxed in by increasing compliance demands, and are not particularly nimble — also due to overly seasoned business applications. At the same time, the banking industry is ripe for digital disruption, as banks’ traditional strengths of size and breadth aren’t sufficient to ward off a mix of alternate financial service digital disruptors such as Google, new digital banks, emerging payment networks, and traditional institutions like Wal-Mart entering this market.

Business agility will be their most fundamental strength and competitive weapon. But how do leading banks today compare on agility? We surveyed 30 banks and determined that high performers excelled in market agility dimensions. We then ranked US banks using customer experience and product expansion scores. This report is due out this month so stay tuned.

PIM: MDM on Business Terms

Michele Goetz

Along with Peter Sheldon in our eBusiness and Channel Strategy role, we just released the Forrester's Wave on Product Information Management.  I'm really exited about this report for two reasons:

  1. Clients now have a report that helps them make more informed choices about selecting a PIM solutions.  PIM is not always a well understood  master data solution option for Enterprise Architects.  Questions arise about, do I need PIM or MDM or do both?  Aren't PIM and Product MDM the same? How does this fit in my architecture? This report takes away the confusion, answers these questions. It gives insight into how vendors satisfy PIM demands, differentiate from MDM and operate in hybrid scenarios.
  2. The first Forrester Wave collaboration across the Business Technology and Marketing and Strategy groups.  In the age of the customer, tighter collaboration between business decision makers and technology management professionals is critical.  This wave addresses both perspectives providing the business requirements for marketing and product professionals while also addressing the technical questions that are important when selecting tools.  Yes, business and technology management can work together, be on the same page, and produce great results!
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Q&A With Oliver Bussmann, Group Chief Information Officer, Group Managing Director, UBS AG

Sharyn Leaver

In advance of next week’s Forrester’s European Forum For Technology Management Leaders in London (June 12-13), we had an opportunity to speak with Oliver Bussmann, one of our industry keynote speakers, about digital business and how UBS is responding to the challenges of digital disruption and to rising customer expectations.

Oliver Bussmann joined UBS in June 2013 as Group Chief Information Officer (CIO), responsible for the Group Technology organization. As Oliver will explain in his presentation on day 2 of the Forum, digital business transformation success in his view hinges on three key factors: A joint and strong partnership of IT and the business working together; creating a culture of innovation and entrepreneurship; consistent and authentic support of senior leadership to demonstrate by example that this transformation is real, necessary and appreciated.

I hope you enjoy Oliver's responses as much as I did, and do join us on June 12-13 to hear the full story!

Q: What is your agenda as CIO at UBS?  

As CIO my job is to position IT as a business enabler, this involves understanding the firm's strategic priorities, and ensuring we strike the right balance between (1) managing the traditional IT functions to ensure a cost-effective, reliable and secure infrastructure and (2) focusing on strategic IT, driving transformational change through innovation, to increase revenue opportunities and deliver real value to our business.

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Customer Experience Q&A With John Maeda, Design Demigod

Harley Manning

Okay, maybe “demigod” is a little over the top. But maybe not.

John Maeda is both design partner at Kleiner Perkins Caufield & Byers and chair of the eBay Design Advisory Board, where he collaborates with design leaders across eBay to disseminate design thinking. But that’s just what he’s doing now. He previously served as the president of Rhode Island School of Design (RISD), and before that, he was a professor and head of research at the MIT Media Lab.

Now where I come from (Cambridge, Massachusetts, these days), RISD and the Media Lab are synonymous with innovative thinking. But eBay already changed the way about 145 million people shop — most people would say that’s already pretty innovative. So how do you improve innovation by disseminating design thinking at eBay?

We wanted to hear John’s thoughts on that topic — and others — so we invited him to speak at Forrester’s Forum For Customer Experience Professionals East, 2014. Attendees can hear him talk on Wednesday, June 25th, at the Hilton New York.

In advance of John’s talk, he was kind enough to answer some of our questions about what he’s been doing and why. I hope you enjoy John’s responses, and I look forward to seeing many of you in New York on June 24th and 25th!

Q: When did your company first begin focusing on customer experience? Why?

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Make the Case for Cross-Channel Attribution

Tina Moffett

By now, we know that attribution is essentially the answer to many marketers’ prayers: more accurate performance metrics, better cross channel insights, and a more informed marketing spend.  While the benefits to attribution are clear,  many CI pros and marketers still need to make the case for attribution.  They need funding, and support from their executives.  In light of this aversion to investing in attribution, the recent business case report, Measure the Impact of Cross-Channel Attribution, will help CI pros build the business case you need to convince executives that implementing cross-channel attribution is definitely worth the time, effort, and money.  As you follow our guide to building the business case, you will cover all necessary bases by laying out the costs and benefits of attribution, while also planning for any possible risks you may run into along the way.

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The Ongoing Loyalty Battle Between Taxi-Hailing Apps In China

Xiaofeng Wang

Taxi-hailing apps like US-based Uber and UK-based Hailo are gaining momentum globally. As with other segments of the Internet industry, the taxi-hailing app market in China is also mainly about local players. After rounds of fierce price battles earlier this year, two players — Didi Dache and Kuaidi Dache — continue to dominate the market and leave no room for smaller competitors and newcomers. This battle wasn’t just between two niche apps; it was also a struggle between two Internet giants’ mobile payment services: Tencent’s WeChat Payment (for Didi) and Alibaba’s Alipay (for Kuaidi).

Price wars may be an effective way to acquire new customers. For example, Didi went from 22 million to 100 million users in just 77 days by spending RMB 1.4 billion (about US$225 million). That’s less than $3 per new customer. However, it’s a poor strategy to gain customer loyalty. For months, users have switched back and forth between apps simply because of slim (and temporary) price differences. Only recently have Didi and Kuaidi begun to take different approaches to engendering customer loyalty:

  • Kuaidi adopted a loyalty rewards program in cooperation with marketers and eCommerce platforms. Based on the number of rides they complete in a given quarter, Kuaidi divides customers into five loyalty categories: Normal, Silver, Gold, Diamond, and Ultimate. Customers earn different numbers of points for each completed transaction, depending on their level. They can use these points to purchase coupons — either Kuaidi Coupons, good for a discount on their next taxi fare, or other coupons provided by marketers and eCommerce platforms such as benlai.com.
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New Research For The Customer-Obsessed I&O Leader

Dave Bartoletti

It’s no surprise that digital disruption is everywhere. Empowered customers are disrupting every industry, and infrastructure and operations (I&O) leaders must adapt to this new reality. We believe that technology management is in the middle of a new evolutionary cycle that will transform I&O from its traditional role as infrastructure provider to a new role as a broker and manager of technology services.

It’s should also be no surprise, then, that cloud and mobile disruption is putting a strain on traditional infrastructure team organizational structures. Consolidated and hybrid cloud infrastructure needs a new organization, and you need to prepare your team for the new business technology era. To do so, you need to encourage your team to develop service management, automation, collaboration, and marketing skills, to name a few. We’re seeing a spike in inquiries about new organization models to speed the path to cloud.

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Understanding Cloud Costs Gets Easier: Amazon Web Services Rolls Out New TCO Calculator

Dave Bartoletti

Two years ago, I published one of my most popular reports, Understand The True Cost Of Cloud Services. In it I laid out a model to help compare current infrastructure costs against the costs of running equivalent workloads at a traditional hosting provider and in the AWS public cloud. This type of comparison is often the first step in a company’s journey to cloud. Before you start moving workloads to any cloud provider, are you sure the cost savings are really there? The answer isn’t always obvious, and depends on measuring a set of critical metrics, including:

·       Your application load patterns

·       Your current operations team staff costs

·       Your virtualization consolidation ratio

·       Your storage and network hardware, license and administrative costs

·       Your facilities (space, power, cooling) costs

The problem with cloud cost modeling is that it can be hard to get accurate estimates for current costs – find the right people, ask them for cost details, work through the numbers, verify accuracy, project future costs, etc. – and things that take too long just don’t get done. In our model, we used our Relative Cost of Operations methodology to simplify analysis and focus on what changes when you shift to cloud infrastructure. I also faulted some of the public cloud providers for low-balling cloud costs or hiding assumptions in their own on-line cost comparison tools.

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New AWS Management Tool For VMware Is Just That – A New Tool, Not A Cloud Game-Changer

Dave Bartoletti

The new Amazon Web Services Management Portal for vCenter was launched last week and generated a bit of buzz on Twitter and elsewhere. VMware reacted quite strongly, and I think that makes sense in a hyper-competitive cloud market, but it was a bit out of proportion to the real threat posed by the AWS tool.

I doubt most savvy cloud buyers (or VMware admins, for that matter) will think this new plug-in for vCenter is a cloud management tool. It’s not. Like other vCenter plug-ins, it makes it easier for an admin using vCenter to get something done without leaving the wildly popular virtualization management portal (like the P2V or V2V tools of yore). In this case, that something includes VMware-to-EC2 conversions and some basic housekeeping tasks: create an AWS virtual private cloud, launch an instance, etc. Image creation, migration, and basic configuration does not a complete cloud management solution make – there’s a lot more to do to create and manage a hybrid cloud implementation and enable workload portability. But this will make it easier to run conversions to AWS and that irks VMware a bit, since it offers its own public cloud option in vCloud Hybrid Service (vCHS).

Rather than draw attention to how limited the AWS Management Portal is, VMware should use its existence to drive home three important points about the company’s overall cloud positioning:

1) allowing competitors to add plug-ins to manage competing public cloud instances shows that VMware’s not scared to compete for your cloud VMs;

2) vCenter is obviously very sticky and widely used, and AWS wants to get in front of those eyeballs – VMware still has critical admin mindshare; and

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Do You Have The Right Roles On Your Marketing Team To Prosper In The Age Of The Customer?

Sheryl Pattek

It’s NBA finals time, and for the fourth year in a row, my Miami Heat are playing for the championship. While the big three (James, Wade, and Bosh) are extremely talented, it takes more than just the talent of these superstars to deliver the third championship in a row. To cement the Heat’s legacy and put the team in the position to claim another title as the best ever, the Heat has surrounded the big three with the right roles, staffed with the right role players. These role players on the Miami Heat know what’s expected of them and recognize the vital part they play in the Heat’s success. It’s Ray Allen hitting a 3 when he’s called upon or Birdman blocking a critical shot to keep Miami’s lead. Each member of the Miami Heat understands that while the big-three superstars may ultimately make the difference, it’s really the way the entire system works together that propels the team to victory time and time again.

And while this may surprise you, for your marketing team, it’s no different. Without a doubt, you have your superstars that go the extra mile to rev up your marketing engine. But do you have the right role players to help your marketing operating system work well as a unit? Do they know what’s expected of them? Do you know what role players you need and what to look for when you hire them?

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