"Smart" Is Here To Stay: Smart City Tweet Jam Summary

Jennifer Belissent

Forrester’s Smart City Tweet Jam was a great success.  On Tuesday morning/afternoon/evening, smart city followers around the globe participated in an hour of intense tweeting on smart cities.  We touched on a range of issues from the definitions of a “city” and a “smart city” and the evolution toward the goal of becoming smart to the challenges city leaders face and the business models that enable adoption of technology-based solutions.  We ended with a contrarian view that “smart cities” might just be a fade. But that was quickly refuted with reminders of the growing challenges faced by cities and the imperative of facing these challenges in a sustainable manner. 

One hour, 62 Twitterers, and 389 tweets later we were exhausted – at least I was.  But we were pleased to have aired and shared our opinions about the challenges, the potential solutions to those challenges, and the paths and business models that will make those solutions possible in the short-run, and hopefully sustainable in the longer term.  Below are some excerpts from the conversation.  But there were many interesting points of view and contributions to the discussion. I've included here a visual representation of the key words and topics discussed during the Tweet Jam, created using ManyEyes.  For the more stats and the full transcript, check out #smartcityjam.  

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One Code To Rule Them All: Reflections On Oracle Fusion Applications From Oracle OpenWorld 2010

Holger Kisker

With about 41,000 attendees, 1,800 sessions, and a whooping 63,000-plus slides, Oracle OpenWorld 2010 (September 19-23) in San Francisco was certainly a mega event with more information than one could possibly digest or even collect in a week. While the main takeaway for every attendee depends, of course, on the individual’s area of interest, there was a strong focus this year on hardware due to the Sun Microsystems acquisition. I’m a strong believer in the integration story of “Hardware and Software. Engineered to Work Together.” and really liked the Iron Man 2 show-off all around the event; but, because I’m an application guy, the biggest part of the story, including the launch of Oracle Exalogic Elastic Cloud, was a bit lost on me. And the fact that Larry Ellison basically repeated the same story in his two keynotes didn’t really resonate with me — until he came to what I was most interested in: Oracle Fusion Applications!

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The Data Digest: Forrester's Global Online Population Forecast 2009 To 2014

Reineke Reitsma

In the past five years, the global Internet population has grown from about 1 billion to 1.6 billion, and this growth isn't about to stop any time soon. However, the future growth isn't equally spread across regions. Forrester's ForecastView model shows that the Internet population will increase in every country in the world over the next five years, but emerging markets will grow at a faster pace. In 2014, one-third of Internet users will come from Brazil, Russia, India, or China (the so-called BRIC countries).

The sheer number of online buyers and the increased online spending per capita will position several emerging markets to challenge North America and Europe from an eCommerce perspective. Companies that want to capture this growing number of online users — and their growing funds spent online — will need to look beyond the markets of North America and Europe and approach their online strategies much more globally.

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This graphic comes from the Forrester report 'Global Online Population Forecast, 2009 To 2014' which is available to Forrester clients. A full model with detailed figures of Internet subscribers and penetration rates for more than 60 countries is available to our ForecastView subscribers.

Launch A Team Challenge: Get Smart Together

Jennifer Belissent

Ready, set, go.  Earlier this week IBM announced their Smart City Challenge – a competition for cities to help investigate and launch smart city initiatives.  IBM will award $50 million worth of technology and services to help 100 municipalities across the globe.  The city has to articulate a plan with several strategic issues it would like to address and demonstrate a track record of successful problem solving, a commitment to the use of technology and willingness to provide access to city leaders.  Hmmm...this sounds exactly like IBM’s existing target market.

The challenge for IBM is to demonstrate that this program is incremental to IBM’s existing activities with cities and local governments.  This program really is an opportunity to extend smart city activities – both from a philanthropy perspective and from a business development perspective.  (I’m acknowledging that there can be business development in philanthropy.) Will cities that have not yet embarked on a smart city initiative or program now consider applying for funding and assistance in starting down that path? 

One way to ensure a broader, and incremental, audience is to get the word out – and, actually evangelize to cities that have not already understood the benefits of technology as a means of addressing their critical pain points.  Many of these are perhaps smaller cities, which leads me to another recommendation.

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Who Will Win The Retail Battle: Apple Or Microsoft?

Nigel Fenwick

Microsoft began opening its own retail stores in 2009 and recently began a push into more US cities. A recent post by George Anderson on Forbes.com about Microsoft's new store format prompted me into some late-night analysis. It appears Microsoft's store format strategy is to ride in the draft of Apple by building larger-format stores very near, if not adjacent to, Apple's own stores. As a retail analyst and both an Apple and Microsoft customer for over 25 years, I feel compelled to weigh Microsoft's retail strategy against Apple's (and since I cover retail strategy from a CIO perspective, it feels appropriate to publish here).

Comparing eight success factors

Location: I'll start here, as it was the subject of the original post. Across from Apple may be the only sensible choice for MS, but the challenge MS has is that Apple is a destination store, i.e. people plan to go there for the experience. This makes it less likely they will decide to browse the MS store because it is close. On the other hand, assuming MS does some promotions to attract traffic to its stores, they are likely to also drive additional traffic to Apple. Predicted winner = Apple.

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New Report: The GRC Platform Market Is Taking Big Steps Toward Clarity But Still Has A Long Way To Go

Chris McClean

I'm proud to say that we published my report "Market Overview: GRC Platforms" earlier today.

It will come as little surprise to most of you that the overall GRC market is still saturated with relatively small vendors, many of which continue to struggle to maintain their market niches. At the same time, a handful of market leaders (notably BWise, IBM/OpenPages, MetricStream, RSA/Archer, and Thomson Reuters/Paisley) continue to distance themselves from the rest of the pack, while several large competitors (including Oracle, SAP, SAS, Software AG, and Wolters Kluwer) put more and more pressure on the market all the time.

It's been interesting to watch these vendors that competed head-to-head regularly for SOX compliance deals now drifting further apart . . . some focusing more on risk management and analytics, some strengthening their compliance and content offerings, some building deeper integration with IT systems, and others building bridges into audit departments. The current environment of increased government oversight and regulation — and in some cases, reform of whole industries — worldwide promises to bring a strong resurgence to the GRC platform market overall, which means increased competition both from veteran vendors and newcomers alike.

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Netflix Is Now Primarily A Digital Video Company

James McQuivey

Netflix announced its Q3 2010 earnings a few weeks back and the numbers were every bit as positive as people have expected. The company added nearly 2 million subscribers in the quarter, almost four times as many subs as they added the same quarter last year. Yeah, four times as many. While Comcast and Time Warner announced net subscriber losses. At the same time, the cost for Netflix to acquire a customer has fallen 26% in the past year. Funny how when you digitize the customer relationship and the product at the same time, all your costs go down.

The number I always wait for from Netflix is the percent of subscribers that used Netflix Watch Instantly in the quarter. It rose to 66% this quarter, up from 64% last quarter. And remember, this was while adding 2 million new subscribers, which means that new subscribers are adopting Watch Instantly at a rapid rate instead of waiting to get used to Netflix; in fact, they're probably joining Netflix just to watch instantly. This is, of course, why Netflix will likely offer a digital-only plan that subscribers can pay for if they don't even want to pretend to put DVDs in their queue. 

Why is this important today? Because it was just now that I finally dug through the summary financial results to find this gem of a quote, something that was briefly reported when Netflix announced it results, but was not fully understood in most of the reports I read. I want to resurface it because this is a big deal: 

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Brand-Building Web Site Best Practices From 2010

Ron Rogowski

During 2010, my colleagues on the Customer Experience team at Forrester and I evaluated the Brand Experience at the Web sites of 14 companies across three industries (and wrote individual reports for each industry). Specifically, we reviewed five auto manufacturers (Chevrolet, Ford, Honda, Nissan, and Toyota), four hotels (Crowne Plaza, Hilton, Marriott, and Sheraton), and five skin care brands (Dove, L’Oreal Paris, Neutrogena, Nivea, and Olay). We’ve summarized our findings in my latest report, “The Best Of Web Site Brand Experiences 2010.”

Using our Web Site Brand Experience Review methodology, we set out to test 1) how well the sites supported their key brand attributes in a manner consistent with other channels (Brand Image), and 2) how well the site supported user goals (Brand Action). While none of the 14 sites Forrester reviewed with our Web Site Brand Experience Review methodology passed both dimensions of our tests (Brand Image and Brand Action), there were some good practices that companies across industries can learn from.

Results of Web Site Brand Reivews of 14 Sites Across Three Industries

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Perspective On Zuckerberg

Quickly: Mark Zuckerberg's skills as a CEO are overrated.

Content: What can Mark Zuckerberg, CEO of Facebook, teach other CEOs? Not very much. To date, he is a one-trick pony -- a leader who has expertly refined and polished one very, very big idea -- remaining unproven beyond the borders of that idea.

Zuckerberg's media profile vastly overshoots his abilities. David Kirkpatrick’s The Facebook Effect describes him as ". . . a natural CEO" and ". . . a visionary business leader." In the October issue of Vanity Fair, Zuckerberg is named No. 1 in the magazine’s power ranking of the New Establishment, just ahead of Steve Jobs, the leadership of Google, and Rupert Murdoch. The magazine declares him “Our new Caesar.” The movie The Social Network portrays him as the successor to Bill Gates.
 
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eBooks Ready To Climb Past $1 Billion

James McQuivey

Consider it an inauguration of sorts, a celebration of the eBook industry becoming a member of the major media club just as digital music and online video have before them. When you influence a billion dollars, people have to take you seriously. In the book business, it means that traditional publishers can no longer live in deny-and-delay mode; meanwhile, digital publishers get invited to better parties and people in other media businesses like TV and magazines look over and wonder if they could cut a slice of this new pie just for them.

To honor the occasion, we have just published our five-year forecast for eBooks in the US for Forrester clients. The punchline is this: 2010 will end with $966 million in eBooks sold to consumers. By 2015, the industry will have nearly tripled to almost $3 billion, a point at which the industry will be forever altered.

Right now, the number to track – and the one that determines how many eBooks will sell – is the percent of a consumer’s books that are bought and consumed digitally. To get at this number, we have to understand how people get books today. Did you know that the two most common ways people get books today is borrowing them from a friend or getting them from the library? Evidently content – at least in the book business – is already quite free, even without the help of digital.

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