The sheer number and types of devices on which people can listen to music have expanded enormously in the past few years. How has that affected people's music consumption? Our Technographics survey data shows that the car stereo is the most popular device on which to listen to music, followed by the home stereo and the PC. About one-third of US adults regularly listen to music on a MP3 player, and 8% listen on their cell phones.
Even though music functionality on phones has been around for about six years, only iPhone owners have adopted it in a significant way. What keeps consumers from adopting new music offerings? A recent Forrester report called "Which Device Offers The Best Music Experience?" uses Forrester's Convenience Quotient (CQ) methodology to assess a sample of devices to evaluate consumer experiences. This analysis shows that every device currently available leaves consumers with a wish list of features and improvements: challenges with installation and setup, an inability to share music, a broken link between music and video, or a lack of logic in the navigation. The tradeoff for consumers is simple: They only adopt something new when the benefits are bigger than the barriers.
About four or five months ago, I was on a United flight bound to the east coast from San Francisco. For reasons I don't remember, I had booked the ticket on Orbitz (I usually book directly so my records, receipts, etc. are all in my profile). Am boarded. Am sitting in a middle seat. Sigh. "Ping" goes my phone. I receive an alert that our flight has been delayed 20 minutes. I open my bag and pull out a salad. The two gentlemen in between whom I am squeezed look at me oddly and exchange glances as they expect the doors to close and the plane to back away from the gate. Salad finished. "Ping" goes my phone again. There is a maintenance issue with the plane. The "equipment" is being changed and we are being moved one gate over. I begin packing up my things, remove my seat belt and give the guy on the aisle my look that says, "are you moving or what?" He says to me, "where are you going?" I say, "equipment + gate change." He says, "how do you know?" I say, "SMS alert from Orbitz." He says, "What is an Orbitz?" More puzzled looks are exhanged. (Do I really want to explain a text alert in the year 2010 to someone who doesn't know what Orbitz is?) Several minutes later there is an announcement from the flight attendant with the same information, and everyone gets up to move. Now my fellow passengers are more intrigued. A third party is more efficiently delivering information to United's passengers than United is to their agents or customers directly.
I don't know how many times I've seen this poster in a United Airlines jetway and wondered, "Is this recent? or 20 years old? Do a lot of doctors fly? Is that why they advertise pagers?"
If you're a typical CEO, you probably find design to be somewhat of a mystery. In a thoughtful moment, you may have pondered whether there is a quantifiable return on the design of your products.
Here's one case where design has massively inverted the economics of a business.
Nokia and Apple reported Q2 earnings two weeks ago.
Apple offers two phone models. In the second quarter, the company sold 8.75 million iPhones for $5.3 billion in revenue. Forrester conservatively estimates that Apple's net profit in the phone business was $1.1 billion, for a net margin of approximately 21%.
Nokia offers over 86 different models of cell phones globally. The company sold 111 million phones in Q2 for revenue of $8.8 billion. We estimate its net profit in the phone business to be $286 million, for a net margin of 3%.
How can this be? You can point to Apple's stranglehold of AT&T, or its retail stores, or its formidable brand. But all of those advantages are muted without one essential element: design. Of hardware, of experience, of software, of subtlety.
Whether you are a CEO, CIO, IT employee, or working outside of IT, you have some level of understanding of your organization’s strategy. At least that’s what I believe. But how much do you understand? To find out we’re conducting research across the enterprise to see how well employees understand business strategy and whether they have any idea about the IT strategy or even the IT architecture strategy.
As a reader of this blog, I know you are an innovative thinker and business-savvy — I’m hoping you will please take five minutes now or later today to help out our research by taking part in this survey, no matter where you work or what your role is. Even if you cannot take the survey, you can still help by sharing a link to this post with friends, colleagues, and associates who you think may be interested in the results.
The survey examines a number of aspects of business and IT strategy, such as:
How well defined and understood is the business & IT strategy?
How well understood are the measures of strategy success?
What time horizons are most common for strategic planning?
Frequency of planning updates
The perception of IT (from inside IT and from outside IT)
Continuing my musings about the impact of cloud on our industry (see last week’s blog), I’m in the middle of a cloud project where we are identifying and profiling potential channel partners for an ISV that is about to launch a systems management product for cloud environments. I must say, I’m surprised by the number of channel partners already talking about cloud.
It reminds me of a conversation with staff at Nimsoft, a company recently acquired by CA, about how they were promoting their cloud offerings. My personal view is that Nimsoft managed to complete their exit strategy so quickly and successfully because they focused all of their new product announcements and general positioning toward the cloud. Coincidentally, CA had decided to turn up the heat on its own cloud campaign and promptly bought three technology companies to strengthen the cloud offering and show their commitment — Nimsoft, Cassat, and 3Tera.
While Cassat and 3Tera were cloud-specific solutions, Nimsoft was already successful as a provider of systems monitoring software to enterprises and managed service providers. My theory is that their cloud image was the result of a considered repositioning exercise that culminated in their placement on CA’s wish list. Here’s another example: Yesterday, Adobe announced its intention to acquire Day Software, the Swiss content management ISV. Day Software had a consistent ECM business with modest growth, but I notice that they turned up the cloud messaging over the last months — I suspect this is what got them into Adobe’s sights.
We published a report about location-based social networks (LBSNs) earlier this week, and it's spurred quite a lot of dialogue. The opinions are varied -- and so much the better for it because it's lead to rigorous discussion about the users of these services and how marketers can get involved, rather than just focusing on the technologies and their (admittedly very real) cool factors.
I have received a number of inquiries on the future of SPARC and Solaris. Sun’s installed base was already getting somewhat nervous as Sun continued to self-destruct with a series of bad calls by management, marginal financial performance, and the cancellation of its much-touted “Rock” CPU architecture. Coming on top of this long series of negative events, the acquisition by Oracle had much the same effect as throwing a cat into the middle of the Westminster dog show, and Oracle’s public responses were vague enough that they apparently increased rather than decreased customer angst (to be fair, Oracle does not agree with this assessment of customer reaction, and has provided a public list of customers who endorsed the acquisition at http://www.oracle.com/us/sun/030019.htm).
Fast forward to last week at Oracle’s first analyst meeting focused on integrated systems. While much of the content was focused on integrating the software stack and discussions of the new organization, there were some significant nuggets for existing and prospective Solaris and SPARC customers:
Adobe has gotten into the content management business, with its announcement earlier today of its intent to acquire Day software for $240 million. Day —with its WCM, DAM, and collaboration offerings — has had a good deal of buzz over the last year or so. Why? Mostly due to a renewed marketing push, demo-friendly products, and occasional uncertainty around competitors due to acquisitions (Interwoven, Vignette) . Day was one of the few remaining independent WCM vendors with enterprise credentials and was ripe for the picking, particularly given the strength of its WCM product. Adobe, of course, brings its document, creative authoring, and rich Internet application development tools to the table.
With the Day deal and last year’s Omniture acquisition, Adobe continues to assemble components of the online customer engagement ecosystem that we wrote about earlier this year. What’s interesting is which vendors are approaching this ecosystem — from the standpoint of ECM (IBM, Oracle/Stellent, Open Text/Vignette), marketing software (Alterian/MediaSurface), enterprise search (Autonomy/Interwoven), and now creativity software/interactive Web applications (Adobe).
So, what does this deal mean for content and collaboration pros?
Short term, there shouldn’t be a whole lot to worry about for either set of customers. Adobe and Day’s offerings generally don’t have much overlap , but rather are complementary. So there should be no worries about certain products being discontinued in favor of others.
Day and Adobe customers will have the opportunity to source more components of the online customer engagement ecosystem from a single vendor and potentially take advantage of possible integrations to come down the road.
I was walking through DuPont Circle in Washinton DC last week. I stumbled upon Axis Salon. I was so intrigued by the glass storefront that I had to hang up the phone and stare. The salon front was COVERED in QR codes!!!
Close-up of shop name:
Instructions to download: (they recommend 3GVision's i-nigma)
They should be telling consumers more about what phones are compatible, probably. There should probably be more instructions, but at least they OFFER instructions.
Scan the code ... link to a Web site with a coupon.
It's pretty basic, but very effective. They must have a lot of people asking. It's certainly driving buzz - I mentioned it to a couple of people I met in DC, and they knew about it. Partial instructions available. Lack of compatibility with most phones ... maybe an issue, but those who don't know about 2D codes are probably also less likely to ask. Fun.
After an in-depth survey of IT security and risk professionals, as well as our ongoing work with leaders in this field, Forrester recognized the need for a detailed, practical way to measure the maturity of security organizations. You asked, and we responded. I'm happy to announce today we published the Forrester Information Security Maturity Model, detailing 123 components that comprise a successful security organization, grouped in 25 functions, and 4 high level domains. In addition to the People, Process, and Technology functions you may be familiar with, we added Oversight, a domain that addresses the strategy and decision making needed to coordinate functions in the other three domains.
Our Maturity Model report explains the research and methodology behind this new framework, which is designed to help security and risk professionals articulate the breadth of security’s role in the organization, identify and fix gaps in their programs, and demonstrate improvement over time.
What makes the Forrester Information Security Maturity Model work?