Business Services Value Analysis

Jean-Pierre Garbani

The choice between different formats of cloud computing (IaaS, SaaS mostly) and their comparison to internal IT business service deployment must be based on objective criteria. But this is mostly uncharted territory in IT. Many organizations have difficulties implementing a realistic chargeback solution, and the real cost of business services is often an elusive target. We all agree that IT needs a better form of financial management, even though 80% of organizations will consider it primarily as a means for understanding where to cut costs rather than a strategy to drive a better IT organization.

Financial management will help IT understand better its cost structure in all dimensions, but this is not enough to make an informed choice between a business service internal or external deployment. I think that the problem of which deployment model to choose from requires a new methodology that will get data from financial management. As I often do, I turned to manufacturing to see how they deal with this type of analysis and cost optimization. The starting point is of course an architectural model of the “product”, and this effectively shows how valuable these models are in IT. The two types of analysis, FAST (Function Analysis System Technique) and QFD (Quality Function Deployment), combine into a “Value Analysis Matrix” that lists the customer requirements against the way these requirements are answered by the “product” (or business service) components. Each of these components has a weight (derived from its correlation with the customer requirements) and a cost associated to it. Analyzing several models (for example a SaaS model against an internal deployment) would lead to not only an informed decision but also would open the door to an optimization of the service cost.

I think that such a methodology would complement a financial management product and help IT become more efficient.

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Where Does Web Conferencing Technology Make Sense?

TJ Keitt

Last night I had the pleasure of attending the Citrix Online Executive Meet-Up here in Boston; as an East Coast-based technology analyst, I rarely see the vendors I cover in person without hopping on a plane. For those unfamiliar, Citrix Online is the maker of popular remote access and Web conferencing technologies GoToMyPC, GoToAssist, GoToMeeting and GoToWebinar. The centerpiece of this event was a customer panel exclusively made up of marketing professionals who use the conferencing technologies for customer and channel interactions. It was a fact I made sure to jot down in my notebook – why such a marketing-heavy panel? This prompted a broader question: are sales and marketing the real killer applications for Web conferencing?

A myriad of companies occupy the Web conferencing market, offering solutions that address four basic use cases:

  • Ad hoc meetings: collaborative sessions that need to happen on short notice. These could be quick screen sharing/document sharing sessions, technical support or demonstrations.
  • Formal meetings: planned sessions with formal agendas that are centered on a group considering one or more pieces of content.
  • Large & small group presentations: more formal events where a presenter addresses a group of some size with varying degrees of interactivity.
  • Training sessions: educational sessions where participants get information, have interactive learning sessions and can be tested on content.
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Crisis Communication, Business Continuity, And Risk Management

Chris McClean

I recently recorded a podcast with Stephanie Balaouras, discussing the potential for increased collaboration between crisis communication, business continuity, and risk management functions. The strategies that businesses implement to manage disasters can mean the difference between bankruptcy and resilience... and we unfortunately see reminders of this on an almost weekly basis.

As each disaster hits the news (BP’s oil spill in the Gulf Coast, the recent volcanic eruption over Iceland, the financial crisis, the H1N1 virus, the extreme weather that crippled Washington, DC this past winter, etc.), the overwhelmingly negative impacts that occur start to hit home. Fortunately, we are starting to see our clients turning more to their crisis communication, business continuity, and risk management teams to ensure that they are prepared for the worst.

There are many potential points of collaboration between these teams. . . from modeling critical business processes and assessing the business impact of incidents to executing effective remediation plans and conducting post-incident loss analysis. Recently, I’ve also seen companies that talk about starting from scratch with a risk management function, although they have already done a substantial amount of relevant work for their business continuity function.

Of course, while there are some good trends that point to increased cooperation, there are still many areas for further improvement for every company. In fact, our data shows it to be the rare case in which both internal and external crisis communication functions are handled well in the same plan, with one usually being much stronger and more of a focal point.

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10 Components Of A Successful BI Strategy Plan

Boris Evelson

Defining a successful BI strategy is a lot more than gathering requirements and selecting a vendor. While it’s been a subject of many books, I know few of you have time to read them, so here’s a short version.

  1. First defining what BI is and what it is not. Is it just reporting, analytics and dashboards? Or does it involve ETL, DW, portal, MDM, etc., as well?
  2. If the former, you then need to define linkages, dependencies, overlaps and integration with all of the latter (including - very importantly - integration and coordination with the higher level enterprise architecture efforts). If latter, it’s a whole different subject. You then really do need to read a few thick books.
  3. Ensure senior business executive commitment and top down mandate. If you cannot get that, do not proceed until you do. Two ways to “sell BI” to them (even though that’s not a good position to be in):
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Deltek Announces Its Intent To Acquire Maconomy: The PSA Segment Of Project-Based Solutions Is Alive And Well

Margo Visitacion

Deltek’s announcement today of its intent to acquire Maconomy has the potential to vault the vendor’s position as a potential leader in the project-based solutions (PBS) space. For midmarket organizations that deliver projects as a crucial part of their revenue generation, this is a good move.

While the focuses of the products share slight overlaps, the products themselves target different functionality and different markets. Deltek has long been a major vendor in the AEC and government contractor markets, while Maconomy, a Denmark-based PBS vendor, focuses on the public relations/advertising, legal, publishing and accounting markets.  

What’s good:

  • Few overlaps – in customers and in industries.
  • Opening doors to new regions – Deltek has limited exposure in EMEA, and Maconomy has had a very difficult time penetrating North America.
  • Mature product sets – Deltek isn’t acquiring an idea but a full blown product. This will allow them to quickly pursue new customers in expanding regions.

 

What’s going to be a challenge:

  • Create visibility in existing markets in new regions – The struggles to gain penetration in the new regions won’t get any easier for either vendor; however, the solutions’ strengths may gain them easier entry.
  • Integration – Deltek is still working through integration challenges with some of its earlier acquisitions (namely, Welcom) and now adds another platform into the mix. The positive here is that Maconomy is fully functional on its own, and we don’t expect there to be huge overlap, if any.
  • Sales integration – Opening new regions and new industries can be a tough sales training challenge. Expect a few bumps.

 

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How To Get People To Pay For Content

James McQuivey

It's the most common question I get in my travels: Will people ever pay for content again? See what I had to say about that in a recent interview below (as posted on Paidcontent.org)

Implied in the question is a belief in some yesteryear in which people did pay for content. But the good news is, they never have and never will. That's the good news? Yes, because once we stop imagining that people will someday pay for content again, we can focus on giving them what they will pay for -- access to content.

It's what people have always paid for and it's clearly what they pay for now. Look deeper into the past and you find that people did not underwrite all the pages of content in their daily newspapers. Yes, they paid for the newspaper, but that's just because the newspaper was the only way to get efficient access to that much news and information. Today, instead of paying for newspapers, they pay for high-speed data plans to their homes and on their mobile devices as well as subscriptions to content from Netflix and their cable companies, accounting for 77% of their monthly spend on content. And they will pay even more for that in the future as 4G becomes a reality. 

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The Ariba Commerce Cloud: Stratus Or Cumulus?

Duncan Jones

Bob Calderoni and Tim Minahan, Ariba’s CEO and CMO respectively, explained their vision for the future of supplier networks at the company’s Ariba Live customer event this week. The basic concepts, of a B2B community with value-adding services for sellers, such as prospect discovery and multi-customer e-invoicing, is one I’ve advocated to network providers for a long time, including in my report of internetwork interoperability (Enterprises Should Push Supplier Networks To Deliver Interoperability). The community concept is certainly fashionable at the moment, with lots of business-to-business (B2B) technology vendors trying to match the success of Facebook, LinkedIn, Twitter, and the like. The big question is whether Ariba can achieve the universal reach that the commerce cloud will need if it is to deliver value to its members.

Social media consumers don’t seem to be worried by monopolies. As my daughters tell me, people of their age have to be on Facebook to know what’s going on. There’s no point using other services like MySpace or Bebo (or, for older readers, Yahoo Groups, Geocities, Friends Reunited, and their equally overhyped predecessors), because everyone uses Facebook, and the community only works if everyone’s in it. It’s the same with B2B eCommerce — supplier-side members want to know about all the relevant parties (i.e., RFX’s), and party organizers (i.e., buyers) want to publish the invitation in one place yet still reach all their potential friends. In practice, this means the community must either be:
a) a broad stratus formation covering everything, Straus cloud cover

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How Do I Get My Customers To Download My Mobile Application? -- ESPN Case Study

Julie Ask

I get this question a lot from clients, and I saw a good example today so . . . I thought I'd share. How should we promote our services? Should we use TV? Online? Banner ads on cell phones? What is most effective? The high-level answer is "yes." Most of our clients are pursuing using their existing media -- whether it is ATMs in the case of Bank of America, the Web site for Walgreens, or TV ads by ESPN. Many are also using banner ads on the devices with which their devices are compatible. For example, they buy iPhone ads because the audience is right, and they can connect into the App Store on the application page.

 

Was watching ESPN this morning and saw a commercial advertising mobile TV in preparation for the World Cup.

What they did right and what I liked:

1) Used their existing media (TV) to promote mobile services. They also used an "event" (= World Cup) as a catalyst to promote their mobile TV service. With the World Cup being played in South Africa, there will be games at night, during the work day, and at many other times when people are unable to sit in front of their TVs.

2) The ad on TV gave the viewer context. "When would I use this application?" "Where would I use this application?" The TV ad shows the person switching on mobile video when he gets out of bed, is in the bathroom brushing his teeth, parking his car, and at work. They also demonstrate the quality of the application with zoomed-in views of the video service.

Watching Video While Brushing Teeth

Watching TV at Work

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Nice To Meet You!

Melissa Parrish

As you might have read, the Interactive Marketing analyst team has been growing. What you might not know yet is that I’m one of the new recruits.

I’m one of those practitioners who’s been working with social media since before we called it that — early on at Bolt.com and most recently at Time Inc. Check out my profile for more details about me.

I imagine it’ll come as no surprise that social media is one of my coverage areas. I’ll be looking at the operational, tactical side of social media — especially topics related to community management. Speaking of which, my first piece of writing as an analyst was published in this month’s issue of CRM Magazine. If you have a chance to read it, I hope you’ll come back here and share your feedback.

In addition to social media, I’ll be tackling some emerging topics for interactive marketers, like e-readers and other mobile devices. My early research agenda is sketched out and my first document, a checklist to prepare for community management, will be published in the next few weeks. Following that, I’ll be working on the Community Platforms Forrester Wave, but if there are particular questions you have about any of my coverage areas, or specific pieces of research that would be of interest or help to you, please add a comment and let me know.

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Put Your IT Staff Through Sales Training

Nigel Fenwick

I was recently asked about the importance of selling skills for CIOs - does a CIO need to be a good salesperson? It seems to me the answer to this should be a resounding yes. After all, IT executives need to be able to sell themselves effectively in order to attain the heights of the C-Suite. Great CIOs must be great communicators, capable of delivering a compelling presentation or a memorable speech, and inspiring others to follow them.

But what of sales skills beyond being a good presenter? Since many sales skills are focused on understanding people and connecting with them, I've found sales training to be highly effective on two levels:

  • Developing better listening skills. One of the first things you learn as a salesperson is not how to make a pitch, but how to listen to a customer - only by listening can a good salesperson effectively satisfy the needs of a prospect/customer.
  • Understanding how products/services meet the customer needs. Salespeople spend a lot of time learning about a firm's products and services; they learn how they meet the various customer needs and they learn how to present them in the best light.
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