Lenovo recently announced record results for the third quarter of the 2013/14 fiscal year: the first time that the firm has exceeded US$10 billion in revenue in a single quarter. Lenovo has continued to prioritize maintaining or increasing its share of the PC market — the majority of its business. This strategy has paid off: Lenovo’s PC business (laptops plus desktops) grew by 8% year on year — in stark contrast to its slumping rivals. Lenovo can attribute its success to a strategy that sacrifices profit to keep prices competitive, maintains a direct local sales team, and retains channel partners after acquisitions.
Forrester believes that the mobile mind shift is one of four key market imperatives that enterprises can use to win in the age of customer. Lenovo has gotten a good start on this journey with its effort to enhance its mobile-related capabilities. Although the coming Motorola deal may have a negative impact on Lenovo’s performance over the next three to five quarters, the firm believes that mobile can change its business — and not just its digital business. In the next two to three years, Lenovo’s key strategy will be to provide customers with mobile devices and related infrastructure that will address their mobile mind shift. In particular:
Readers of this blog and of my syndicated reports know that I’ve spent a great deal of time lately researching and analyzing the market for wearable devices and the emerging wearables ecosystem. I’m excited to announce that I’ll be co-presenting a talk at SXSWwith Jen Quinlan (Twitter: @QuirkyInsider) about a specific sub-segment of the wearables market – how wearable devices, in concert with the Internet of Things, can help people overcome various sorts of disabilities.
Jen conceived of this talk, and was kind enough to invite me to collaborate with her. And I was thrilled, particularly when I heard about the topic she had proposed. Why? I’m interested – and hope you will be too – because:
Sure, the scarcity of inventory and the premium associated with professional video content drive caution and reluctance among sellers. But in a few years, short- and long-form video content, both user-generated and broadcast-native, will be bought programmatically in an inevitable takeover of automated trading that has already started today – and will work all the way up to TV buying. Two forces make programmatic buying unavoidable:
Traditional buying cannot cope with audience fragmentation across devices. The explosion of new platforms and ways of viewing videos will continue dispersing audiences, making it increasingly difficult to reach the desired number of viewers through linear TV alone. And many of these new platforms are digital, enabling a break from broad age/gender ratings buys and a move to addressing ads to individuals. Traditional manual buying approaches simply can’t cope with this volume of video sources and the shift to addressable advertising.
It’s one thing to say where you want to go, but you still have to know how to get there. If it’s a physical journey like a quick trip to the local store, a meandering trek across Europe, or a digital or business technology initiative that your company is after, getting to the destination or end state demands a road map. Maps show all the options to get a traveler to the destination; routes are a subset of options to get the mobile traveler there In a hurry? You’ll take the efficient and direct interstate. Want to explore and learn? Your route will take you on back and scenic roads.
We wanted to learn just how mobile insurance executives took to the mobile road after their strategic plans were approved. Throughout Q4 2013, we talked to insurance executives in the US, UK, France, Italy, Israel, the Netherlands, and Turkey who were responsible for turning that mobile strategy into solutions that engaged with consumers and agents. Crafting a roadmap to guide the mobile journey, stood out as especially key because mobile initiatives are hampered if the execution teams fail to consider the myriad internal and external factors that impact delivery time lines.
One European carrier we spoke with put it best: “There’s lack of vision, a lack of focus, and too many people are playing around the edges. That’s giving mobile a bad name in terms of costing money and not giving any benefit for it. List out and create a road map, so you’re clear about what you’re focused on and why.”
You have ten days left to enter the 2014 Forrester Groundswell Awards — and to receive recognition for your successful social programs. Winners receive a nice shiny trophy, a winner’s badge for your website, a free pass to the Forrester Marketing Leadership Forum in San Francisco, a chance to accept the award on stage, and lots of recognition in Forrester speeches and reports.
Not sure which category to enter? Check out this video, which explains all our categories.
Remember: The deadline is February 28, 2014 — and you can enter here.
Indian firms have become cognizant of the fact that they have entered the age of the customer — an era in which they must systematically understand and serve increasingly powerful customers. These firms are leveraging mobility to empower their employees to win, serve, and retain customers. For example, the Tab Banking initiative by ICICI Bank uses tablets to enable sales representatives to visit customers to give them the convenience of opening bank accounts without leaving their home or office. However, since consumer mobile technologies have entered the enterprise, the management of mobile device platforms has become more complex; enterprises have started realizing that security controls should be around the apps and the data and not the device. In India, mobile application management (MAM) has leapfrogged other strategic telecom and mobility priorities in 2014 (see the figure).
The importance of supporting a workforce that wants (and has come to expect) to work anywhere, anytime, and on any device has necessitated a paradigm shift in security and risk (S&R) mitigation approaches and techniques. S&R professionals must therefore implement a security program that centers on mobile applications. This is because:
Predictions about native advertising’s medium-term impact are both short-sighted and simplistic.
In 1973, the Wall Street Journal quoted a professor: “Academic politics is the most vicious…because the stakes are so low.” Thereafter, the idea (that the intensity of a dispute is inversely proportional to its stakes) was named after the professor: Sayre’s Law.
Sayre’s law applies very well to native advertising. According to Forrester data, digital advertising dollars are today some 20% of traditional advertising dollars. Of those scarce digital ad dollars, something far less than 10% goes to anything that could be characterized as native advertising.
Perhaps that’s why the dispute has been so vitriolic (at least, by advertising’s standards).
The day after the New York Times launched a redesign to facilitate more native advertising, Tom Foremski, a media commentator, said: “Native advertising is the world’s worst idea and I can’t believe the New York Times management is so gullible and clueless in agreeing to its publication.”
Driving home from the Boston Logan airport in the winter can be an adventure. Fortunately, local governments have set up a means for reporting one of the perils — potholes. I know this because an overhead digital sign told me the number to call if I saw one. I appreciate the opportunity to help out, but the inefficiencies in this system make me cringe! If I see a pothole, I have to remember where it was until I have a chance to write it down. I also have to remember the nearest cross-street or landmark to help crews identify the proper location. And if I come across a second pothole before writing down all the first information? No chance I remember either. Does anyone remember playing the telephone game as kids? This is the modern version.
Many of our clients call with a similar challenge — how do we modernize manual processes for a digital/mobile world? With that in mind, how are many solving this today?
Create a mobile app. Mobile first! Everything is mobile these days, so let's jump on that train! While this is a good start, it’s important to understand the context of the user. There’s a good chance they’re using the GPS app on their phone to find the optimal way home. To use a new app, I have to go to the app list, find the new “Report Pothole” app, wait for it to initialize, and then report the incident. By then I’m no longer at the physical location and thus haven’t solved much of the manual problem. Solving this requires a better first step…
Are consumers getting their video entertainment from different source? Yes, largely migrating from cable to telecom providers like Verizon and AT&T. This has little to no impact on how marketers plan and buy their TV campaigns.
Are consumers filling some of their video entertainment hours with online streaming sources? Sure, but for the most part, online video viewers are -- and remain -- heavy linear TV viewers, using new sources to get more of the entertainment they love (as I documented in this report last fall). Some younger consumers are delaying getting a pay TV subscription of any type, and perhaps they may never. But then they will fill their entertainment hours with video from Vevo, YouTube, HuluPlus, etc., where advertisers will have ample opportunity to reach them (oh, yes and some ad-free Netflix, but then, ad-free DVD viewing is fading away).
Finally - some sensible entrepreneurs. I love it. Viber draws a stark comparison to the owners of SnapChat that turned down $3B not long ago ... and they had far fewer users. With $900M for 300M subscribers, perhaps we are now seeing the market price. (Viber brings Rakuten 300M subscribers according to this Reuters article.)
Why did Rakuten want the platform? I'll offer a few ideas:
- Companies need to embrace the mobile mind shift and engage consumers where they are and how they want to be engaged. Today and increasingly so - consumers expect engagement on their mobile devices, whether they are shopping or seeking customer service. Companies need to be present in those moments when consumers reach for their phones.
- Viber isn't simply an app. It may have started as an app, but like so many others with aspirations ... it has transformed from an app to a platform. I may not need 200 apps on my phone. I may not want 50. Not every brand will earn a spot or be able to manufacture a mobile moment with me through an app on my phone. Brands are going to have to "borrow mobile moments" by engaging with consumers on third party platforms. Consumers need a messaging or communication app, a mapping app, and what else? The question is: how long will this list be.
- Audience size matters. Everyone says, "oh, we could just go build this ourselves." But it takes a special app to get several hundred million users. I can't even count the number of social media/messaging apps that I have downloaded, used 2-3 times and abandoned because the size of the community was too small. Consider also that these apps draw up to a couple of hundred minutes of usage a week.