Mobile is changing the daily life of Chinese consumers; the phone-addicted population (ditouzu) is growing fast. With high adoption and usage of mobile devices, consumers in China are experiencing the mobile mind shift: the expectation that they can get what they want in their immediate context and moments of need. However, marketers in China are not keeping up with consumers. Why? They aren’t thinking about mobile strategically:
They hold false assumptions on how to reach Chinese mobile consumers. Most marketers in China still think in a traditional way: They assume that consumers in tier one cities are the most active mobile Internet users; that Chinese mobile users can actually use the mobile Internet on the go; and that a city-tiered approach in mobile marketing will be successful.
Their mobile marketing strategies are still experimental. Although many marketers in China have tested mobile, only few have incorporated it as a consistent marketing channel. Marketers only spend a very small portion of their ad budgets on mobile.
The United States Department of Homeland Security (DHS) plans to sponsor important research in cybersecurity over the next three to five years through the Broad Agency Announcement (BAA) process. The US Federal government’s participation in cybersecurity is one of false starts. Members of each of the branches of government have made statements on the need for improved cybersecurity but very little has been done, at least in any public sense, to help the private sector deal with an onslaught of cyberattacks. At the same time, the National Security Agency (NSA) has been actively spying on private sector companies and their customers. This has sent mixed messages.
Encouragingly, the DHS is now making money available to fund research in cybersecurity with the goal of solving some of the toughest cybersecurity issues. The amount of money is small compared to the enormity of the cybersecurity problem, but it is a step in the right direction. This report will focus on what the money funds and what it means to commercial enterprises and their customers. Look for this report to publish in early August.
The last few days have been eventful in the cloud gateway space and should provide I&O organizations more incentive to start evaluating gateways. Yesterday, EMC announced its acquisition of cloud gateway startup TwinStrata which will allow EMC customers to move on-premise data from EMC arrays to public cloud storage providers. Today, Panzura launched a free cloud gateway and their partner Google is adding 2TB of free cloud storage for a year to entice companies to kick the tires on a gateway. Innovation and investment in this area does not appear to be slowing down. CTERA locked in an additional $25 million in VC funding last week to accelerate the sales and marketing efforts to support its cloud gateway and file sync & share products.
Though the cloud gateway market has grown slowly so far, this technology category is about to become mainstream. Cloud Gateways are disruptive since they can facilitate data migration from on-premises to a public cloud storage service to create a true hybrid cloud storage environment. Basically, a cloud gateway is a virtual or physical storage appliance which looks like a NAS or block storage device to users and applications on-premises, but can write data back to a public cloud storage service using the native APIs of that cloud.
A number of use cases have emerged for cloud gateways including:
The enterprise network is the ugly duckling of enterprise technology landscape, looked at disparagingly by CIOs and often ignored by the business. The enterprise network is much less exciting than all the fancy projects like cloud, mobility, and big data.
Yet the enterprise network represents the vital underpinning for all these projects and increasingly evolves into a business-critical asset for companies looking to succeed in the age of the customer. It becomes the nervous system of the digital business. It facilitates deeper customer engagement by connecting manufacturers, sellers, and buyers of products in new ways, and it helps drive more operational efficiencies as it supports closer collaboration and connects previously disjointed assets. For most business leaders, the network infrastructure isn't much more than a utility, such as electricity or plumbing, while most CIOs don't know how to monetize it. This is a business challenge for the connected business as:
The enterprise network enables business success in the age of the customer. Customer engagement, internal collaboration, and the emergence of digital products and services all rely on a quality network infrastructure. Moreover, network data and business intelligence turn the network into an asset for monetization. As a result, the enterprise network no longer functions as a commodity but becomes a key function for success in the age of the customer.
It’s hard to believe almost a year has passed since our last Summits for CIOs in Asia Pacific. Our team is ramping up preparations to this year’s CIO Summit series and I’m looking forward to meet you at the events which will kick off in Sydney on August 14, Singapore on August 19 and Mumbai on August 21. Themed “Beyond IT: Empower Digital Business in the Age of the Customer”, Forrester’s 2014 Summits will focus on the significant shift we’ve seen in CIO’s 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 and the transformation of big data into actionable business insights. Each of these topics will feature prominently at the Summits with select analysts flown in to delve deeper into how CIOs can overcome some of these challenges through Forrester guidance.
Nestlé China's ice cream business unit has two major brands: BenNaNa and Five Rams. BenNaNa is an unusual ice cream stick with a peelable jelly shell that shapes the ice cream, which is eaten just like a real banana. Because of its playfulness, BenNaNa is the No. 1 kids’ brand in China and is also popular among young consumers. Five Rams, a local brand that has been based in Guangzhou for more than 50 years, was licensed by Nestlé in the 1990s. As a regional brand, Five Rams is the category leader in Guangdong province.
Nestlé started using social media in 2012. For the first two years, the company confined its social marketing efforts mostly to Sina Weibo, as it had tested other platforms but did not find any that generated good performance. Starting this year, the Nestlé marketing team added WeChat to its social spectrum and gradually shifted its efforts to this rapidly growing mobile social platform.
On June 24, I attended the launch event for the new flagship of Huawei’s Honor product family, the Honor 6, in Beijing. As one of the world’s largest telecom equipment manufacturer, Huawei has been cultivating a mobile phone business in the past few years, and became the third largest smartphone vendor in the world at the end of 2013. Until now, Huawei’s mobile phone business has mainly followed a B2B2C business model: selling its devices via mobile network operators. Huawei launched Honor in December 2013 as an independently operated Internet brand that aims to adapt quickly to changes in the age of the mobile Internet and provide high-performance products at reasonable prices. As a former member of the mobile phone fraternity, I was impressed by Huawei’s technical leadership at the two-hour launch event — but behind the revelry, I noted that Huawei faces a few dilemmas:
A confused brand proposition. Huawei’s speakers spent a lot of time talking about the Honor 6’s technology framework and chipset, but didn’t mention what consumers can get from those technical advantages. The Honor 6 is a high-performance product with powerful functionality — high-speed LTE Cat6, an octacore Kirin 920 processor, long battery life, a powerful camera, innovative features, and a fancy Emotion UI — that retails for just RMB 1,999 (usually the price of a mid/low-end smartphone in China). Honor 6 is marketed as “the world’s fastest 4G smartphone”, but the promotional video suggests that the phone’s target audience is the young struggling working class. The brand message is inconsistent with the product positioning.
No longer just a science fiction fantasy, holography technology is set to fuel major innovation in both business and consumer applications. Offering superior visual experience and support for interactive and intuitive applications, holography is already being leveraged in various scenarios, while the capabilities are also driving development of innovative applications across multiple industries. For instance, holography is being tested for simulation-aided training applications, as humans tend to notice patterns better when they’re presented in three dimensions. The US Army Research Laboratory collaborated with Zebra Imaging to test the success of digital holography for medical training purposes and found that students retained about 30% more information from holography-enabled training compared with textbook-based training. Holography is being successfully deployed in a variety of contexts. We found that:
Holography is gaining traction across industries. Organizations are deploying holography for a variety of consumer and business applications, ranging from entertainment to design and exploration. Moreover, the technology’s usefulness is being tested for critical applications such as surgery — where it presents images of human organs in an interactive three-dimensional environment that allows the surgeon to manipulate these images in real time, making the procedure less invasive.
The entire Australia team is incredibly excited about this landmark event for Forrester. Here’s why:
The theme for this year’s event is “Winning In The Age Of The Customer.” What does this really mean? It’s simple, really. Empowered by digital platforms, your customers are free — free to act on their own needs and priorities, free to pick their own moments of engagement, free to design their own experiences — and free to ignore your own best efforts to shape and control all three. Forrester calls this new reality “the age of the customer.”
We’ll be releasing some brand-new research at the event that sheds light on the current state of customer experience management practices in Australia. While I don’t want to give away the ending, suffice it to say that Australian firms of all sizes are making customer experience a strategic priority. Firms across Australia increasingly have C-level executives driving their focus on CX, and they expect to get significant value from their efforts.
But not all firms are at the same level of maturity — or even awareness. While some are finding ways to pull ahead of competitors through CX differentiation, others have not even gotten started yet. That’s why we’ve tailored this event to show attendees the one sure path to CX maturity and provide detailed guidance on how to advance along that path.
My latest report, "How Hampton Hotels Built And Sustains Its Customer-Obsessed Culture," is a case study of the hotel chain. The brand has been on a nearly 10-year journey to differentiate its hotels from competitors on the basis of exceptional guest experiences. It all started back in 2004. As part of the brand's 20th-anniversary celebration, Hampton asked its hotel owners to make about 120 product upgrades ranging from curved shower curtain rods to easy-to-use alarm clocks. Within a year, competitors had copied all of the new features.
The next year, in response to the cutthroat competition in the hotel industry, Hampton embarked on a culture transformation intended to differentiate its hotels from competitors by delivering superior guest experiences. Along the way, the team at Hampton learned important lessons about how to create and sustain a customer-obsessed culture:
Leverage executive support. The Hampton brand team began by making sure it had executive support for a culture transformation. That was smart. In previous research, I found that every successful culture transformation has had active executive support. The team at Hampton took advantage of having a strong advocate for customer focus in the form of Phil Cordell, who was the global head of focused service and Hampton brand management. He backed the transformation and created a new position, senior director of brand program development and integration, and appointed Gina Valenti to lead the transformation efforts.