Welcome to all of you at Forrester’s second annual Customer Experience Forum in New York City! And to all of you who can’t be here — we’ll miss you. Sales for the event were so far beyond our goals and expectations that we are flat out amazed. There are about 900 people here from many industries, especially financial services. Attendees come from many professional roles: We’re seeing a good mix of people who work in marketing, eBusiness, customer intelligence, and customer experience (of course), including a strong contingent of senior managers and executives. So please keep checking in here for the latest updates and discussions around our theme of customer experience breakthroughs!
Today's Live Stream
Welcome And Setting The Stage
Harley Manning, Vice President, Research Director, Forrester
The Court found that the method by which Public Company Accounting Oversight Board (PCAOB) members are appointed does not grant the Executive branch sufficient oversight because of the restrictions on when members can be removed from their position. According to Chief Justice Roberts' opinion, "The consequence is that the Board may continue as before, but its members may be removed at will by the (Securities and Exchange) Commission." And for those arguing that SOX doesn't have a severability clause that maintains the act's legality even when a portion of it is overruled, Roberts clarifies that "the unconstitutional tenure provisions are severable from the remainder of the statute."
Last Monday, Stephanie Balaouras and I recorded a podcast on a recent hot topic amongst Forrester clients — Enterprise Role Management (ERM). For the most part, people understand fundamental provisioning so I wanted to take this time to go through ERM in a little more detail.
Over the past few months, I have been asked many questions about taking ERM to the next level — about how to expand and automate identity management infrastructure. Before determining whether this is the right step for your company, however, it's important to understand the two most important benefits from doing so and also recognize the prerequisites.
Among others, two benefits of ERM are security and compliance. Achieving a more mature role management system will increase your organization’s security around information sharing, and it will enable understanding of the segregation of duties. Before achieving this level of security and compliance, it’s important to simplify your identity repository and create a clear-cut set of records. This allows for a recertification phase when managers can take the time to revoke or grant access to existing accounts. Once you have created a clean, up-to-date role management database, your organization is ready to look forward to taking ERM to the next level.
After speaking with many clients on this topic, I have garnered a solid list of best practices that everyone should be aware of before attempting to strengthen any ERM system. These practices include data points around user population and recertification timelines, whether or not a hierarchical approach should be adopted to organize roles, and the value of tools such as Web single sign-on and security incident and event monitoring as they relate to role management.
Each year, Forrester analysts field over 20,000 inquiries on a variety of topics, which provide insight into the key issues and challenges facing our clients in a variety of roles, including CIOs, enterprise architects, vendor strategists, and marketing professionals. Forrester defines enterprise mobility as the ability of an enterprise to communicate with suppliers, partners, employees, assets, and customers irrespective of location. During 2009, analysts fielded nearly 700 inquiries related to enterprise mobility issues, jumping from 550+ inquiries in 2008 and 360+ inquiries in 2007. What are these inquiries asking about? The key focus of these inquiries is on mobile applications, mobile devices, and mobile employee segmentation.
Questions about mobile applications accounted for over 20% of all enterprise mobility inquiries in 2009. The majority of these application inquiries were focused on vertical applications, including fleet management solutions in the transportation industry that enable more efficient, real-time routing of vehicles. Today, email and calendaring mobile applications are mainstream in most enterprises, so many companies are broadening their mobile application initiatives to address the needs of particular types of line-of-business workers in their industry (e.g., retail, healthcare, transportation, financial services.) We expect continued growth in the number of mobile application inquiries during the coming year.
Enterprises are deploying a wide range of horizontal and vertical mobile applications. Results from Forrester’s 2010 Network and Telecom survey of IT decision makers at North America and European firms show that horizontal mobile applications such wireless email, have been implemented or are being implemented by 86% of firms, and calendaring and personal information management applications have been deployed by 68% of firms. The next wave of mobile application deployment is focused on meeting the needs of line of business (LOB) workers such as sales force and field service professionals, or industry-specific requirements such as inventory management applications in retail, or location-based applications in the transportation arena. Survey data shows a persistent level of application implementation and planned deployment among 14% – 19% of enterprises for mobile sales force, field service and emergency response applications. We expect this mobile LOB application deployment to gain momentum in 2010.
The methods enterprises use to acquire and develop these mobile applications vary widely. Homegrown or in-house mobile application development is commonly used by 40% of North American and European enterprises. Approximately 30% of all enterprise organizations use a local, regional, or national external developer for mobile application development requirements. North American enterprises are significantly more likely to purchase mobile applications from a mobile service provider portal site or from a mobile application store. Between 24% and 29% of North American enterprises use these two types of mobile application development approaches, compared with only 11% to 15% of European firms.
Forrester's Social Technographics® looks at how consumers approach social technologies — not just the adoption of individual technologies. We group consumers into seven different categories of participation — and participation at one level may or may not overlap with participation at other levels. We use the metaphor of a ladder to show this, with the rungs at the higher end of the ladder indicating a higher level of participation. You can find more background on Social Technographics and the concept behind it at our Groundswell blog.
Overall, engagement with social activities has increased significantly in the past few years. By the end of 2009, almost three-quarters of US online adults were participating in one way or another with social media. But how do users of Facebook and MySpace compare to each other when looking at how active they are? The following graphic shows that MySpace users are far more likely to be “Creators” — the group that actually creates its own fresh content.
We've also asked consumers in which categories they like to express themselves online. The behaviors of Facebook and MySpace consumers are quite comparable for most categories, but MySpace users score much higher on expressing themselves on music, video, or gaming online - true to their 'Creator' profile.
Last week, Forrester released results from our “Global IT Budgets, Priorities, And Emerging Technology Tracking Survey.” Highlights of the survey are reported in Chris Mines’ recent blog, the title of which gives you the gist of our findings: The Overall IT Budget Environment Has Turned Positive.
However, there were some very interesting differences across some of the geographies we surveyed. Respondents in emerging markets tend to be more optimistic than their counterparts in more mature markets. When asked about the outlook for their industry, 51% of respondents in Latin America thought that 2010 would be a very good or somewhat good year, followed by 36% in Emerging Asia (China and India) and Russia, with North America and Western Europe lagging behind with only 31% and 25%, respectively. Big difference in outlook between Western Europe and Latin America! On a more positive note all around, these numbers were much more positive than the outlook of respondents in last year’s survey. In 2009, only 8% of respondents in NA and WE expected a good year – really not very optimistic about their industry outlooks. Emerging Asia (without Russia) was 15%, and Latin America was 21%.
Forrester’s newest survey of the IT spending environment has encouraging news that underpins our forecasts of a rebound in industry fortunes after the nasty recession of 2008-09. The good news for tech vendors is that IT budgets and purchasing plans are starting to reflect an improving economy. Last week, Forrester released results from our “Global IT Budgets, Priorities, And Emerging Technology Tracking Survey.” Among the top-level results: just over 40% of the 2,800 IT decision makers surveyed expect to increase their organization’s overall IT spending in 2010, up from just 12% in 2009; another 33% expect to hold their spending steady. So the overall IT budget environment has turned positive.
Respondents identified the top business priorities supported by IT investments as: 1) grow company revenue, and 2) reduce operating costs. No surprises there. But we were intrigued to see that “Drive new market offerings or business practices” ranked number 4, indicating that respondents are looking to IT to support and enable new product innovation.
We also see an uptick in spending on offshore IT services in 2010 vs. 2009, across ALL geographies. Survey results also show that more than half of respondents have either implemented or are planning to implement SaaS, illustrating the tech industry’s continuing shift toward new purchasing models based on operating rather than capital expenditures.
A few days ago, CSC announced its new Celeriti banking platform, which consists of five products: Celeriti Customer, Celeriti Deposits, Celeriti Loans, Celeriti Cards, and Celeriti Merchant. The solution includes, for example, a strong business process focus, business intelligence, and the so-called Web Portal User Interface. The platform has been built around IBM application infrastructure, runs on multiple operating systems such as z/OS, z/Linux, Linux, and Windows, and has been validated for use with the IBM Banking Industry framework. Here is my initial reaction to Celeriti.
Earlier this week I was in Milan, speaking at the CPO Forum event about the importance of good procure-to-pay (P2P) systems to deliver sourcing's theoretical savings into real bottom-line improvements. As England's ex-goalkeeper Robert Green showed us last week, savings opportunities aren't the same as real savings. :(
I had some subsequent discussions with attendees about P2P best practices and how you maximize adoption by business users. One tip relates to the optimum number of approval levels — my conclusion is: the fewer the better. As one procurement director put it, "We empower our people, and show that we trust them, but not unconditionally. We monitor individual expenditure closely, so each person knows that we may subsequently ask him to justify anything exceptional that shows up in the report." His firm had actually cut consumption of health & safety equipment by 20% by eliminating pre-approval and replacing it with exception reporting. He'd also streamlined the MRO procurement process. "We approve the maintenance work order, but then we used to have to separately approve the parts used to do the job. I convinced my colleagues that the second approval was a waste of time."
In contrast, what can happen if you have too many approval levels?