Welcome, graduates of the class of 2013, and congratulations. You are some of the finest students our system of education — no, our society — has ever produced. Rather than stand here and occupy your time with random inspirational thoughts, I would prefer to stand back and let you rush out there to disrupt the world into which you were born.
Unfortunately, you probably won’t. And that’s too bad because those of us who have gone before you really need you to disrupt things — which is ironic to say because we are actually the reason you won’t live up to your potential.
Now that I have your attention (and perhaps have primed the urge for an antidepressant), let me tell you why your future is likely so bleak.
You are among the world’s first fully digital citizens. You were born after the Macintosh IIx, Windows 3.0, and the launch of AOL. We now have the iPad, Windows 8, and Google Fiber. When you entered kindergarten, already 20 million US households were connected to the Internet, and by the time you started high school, that number had quadrupled to approximately 80 million. Oh, and in that year of high school, YouTube posted its first video and Facebook opened its social network to anyone with an email address; today, YouTube shows 4 billion hours of videos each month, and Facebook has more than 1 billion friends.
Two days ago I had an interview with the Head of End User and Desktop Services of a global pharmaceutical company. He mentioned that he's working through Windows 8, VDI, BYO and other key initiatives facing IT infrastructure and operations (I&O) professionals.
Back in October 2011, Microsoft named the initiative to introduce Windows Azure cloud platform into the Chinese market “Moon Cake,” which represents harmony and happiness in Chinese culture. On May 23, 2013, Microsoft made the announcement in Shanghai that Windows Azure will be available in Chinese market starting on June 6 — almost half a year after its agreement with Shanghai government and 21ViaNet to operate Windows Azure together last November. Chinese customers will finally be able to “taste” this foreign moon cake.
I believe that a new chapter of cloud is going to be written by a new ecosystem in China market, and Microsoft will be the leader of this disruption. My reasons:
The cloud market in China will be more disrupted. Due to the regulatory limitations on data center and related telecom value-added services operations for foreign players, the cloud market for both infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) has been an easy battlefield for local players, such as Alibaba/HiChina. Microsoft’s innovative way working with both government and local service partners to break through this “great wall” shows all of the major global giants, such as Amazon.com, the great opportunity from this approach to the Chinese market. We can anticipate that they will also enter the Chinese market in the coming six to 18 months.
China’s GDP growth slowed to 7.7% in Q1 2013. While below market expectations, this growth rate still ensures strong continued IT spending, as local organizations seek to meet ongoing demand for products and services. At the same time, we expect Chinese government stimulus packages to drive increased consumer demand, particularly in the retail, supply chain, and banking industries. Chinese organizations wishing to capitalize on these opportunities are currently seeking ways to transform their business and decision-making processes and broaden their product portfolios. This, in turn, has driven increased interest in third-party service providers as organizations seek to augment limited (or, in some cases, nonexistent) internal IT capabilities.
Recently I spoke with IT managers at two local Chinese companies; they shared their recent experience with third-party service providers.
A top 5 Chinese insurance company worked with multiple service providers to strengthen its CRM data mining and analysis capabilities. While this company started its CRM implementation project in early 2006, it still had limited capabilities to manage fast-growing customer data, which was essential given the increased presence of foreign insurance companies in the local market. In response, the company sourced application development and modernization services from Accenture, primarily to define a data architecture and deliver analysis capabilities. With these new functions added to their existing CRM systems, the company enhanced customer data analysis capabilities, grew related sales, and improved customer experience/loyalty.
There’s one word that sums up what’s going on in the business of insurance right now: disruption. Last week, I had the opportunity to talk with an innovation team at a Tier 1 carrier. When I asked the group if they were feeling that big changes were afoot in the industry, there was lots of head nodding. Consider just these few catalysts of change:
An improving economy driven by freshening winds in the US housing market.
Activist consumers willing to both join forces with their insurers and at the same time regulate them through the power of social media.
Converging physical and digital worlds that engage consumers through smart portable devices.
Two maturing regulatory reforms: one that reorders the molecules of the health insurance industry and the second that’s creating a new industry (and risks), namely access to medical marijuana.
Shame on you if you share your password. The consequences can ruin your sterling reputation, violate legal terms of service, promote fraud and identity theft, and give ex-lovers weapons of mass digital destruction. We all do it, despite the risks. Share your Netflix password with your BFF so she can watch House Of Cards and season 4 of Arrested Development. Reveal your Amazon password to your teenage son so he can rent college textbooks using your account. The list of examples goes on.
Three years ago, Stanford Communications Professor Emeritus Donald F. Roberts believed that American youth had hit a ceiling on media use, as there simply weren’t enough hours in the day to increase the amount of time children were spending on media. He was astounded to see that time spent on media consumption did in fact grow, as young individuals began consuming heavily across multiple devices at the same time. And the numbers have continued to increase since: More than 80% of US online consumers ages 12 to 17 multitask online while watching TV.
Multitasking behavior among this demographic has changed not only in terms of the total number of hours but also in terms of the devices used. Forrester’s Consumer Technographics® data shows that in 2011, young consumers primarily went online via desktop or laptop computers while watching TV, while now they prefer to use more portable devices for multitasking activity:
There are very few companies in technology who truly understand that "consumers" and workers are the same *people*. Citrix is one of them. Consumers are consumers because they have jobs, and they get out of bed in the morning to go to a place where they earn money in exchange for their time and work to further their employers' objectives. It really is that simple. Yet most tech companies pay lip service to "consumers" while they target most of their resources on the stated needs of enterprise IT, and the implications of this abstraction are profound.
Citrix lives for achieving the conflicting goals of employee freedom and IT comfort
I believe Citrix understands this and while their POs usually come from enterprise IT, their vision and purpose as a business are to meet the needs of workers in their daily lives. But how? For one thing, this is a business where nuances are important. Precisely where technology providers draw lines between employee needs and IT needs determines whether employees will embrace it or reject it, but we also believe it goes much further. When a person reaches an artificial barrier, or seemingly arbitrary "policy" gets in the way of what they see as their good, honest attempt to get hard work done, their next thought might just be: How stupid do they think I am? Don't they trust me? And so goes the path of building frustration and draining trust out of the organization as a direct result of poor workforce computing strategy and choices, followed by enormous time and energy spent getting around the barriers.
CEO Mark Templeton describes what exceptional IT leadership looks like
Amazon announced today that its Kindle Fire HD tablet offerings will rocket from availability in just seven markets (U.S., U.K., Germany, France, Spain, Italy and Japan) to 170+ countries in mid-June. The 7” and 8.9” Amazon Kindle Fire HD models have enjoyed great success in the consumer market, as Forrester predicted they would even before the first device was released in November, 2011.
The move to expand geographically makes sense, as Amazon continues to capitalize on its core strength – its content + device + services value proposition – in consumer markets. Perhaps less obviously, though, Kindle Fire HD has turned out to be something of a stealth competitor in the bring-your-own-device (BYO) space.
In a survey of information workers in the U.S., Canada, U.K., France, and Germany – fielded from February to April 2013 – we found that, among those who say they use a tablet at least weekly for work:
In an effort get ahead of the curve, I’ve been looking at the strategic advice that Forrester’s Marketing and Strategy (M&S) analysts are giving to their clients in marketing roles. This is in the hopes that we can help EA practices better communicate, plan, and align to what their marketing leaders are thinking – but aren’t necessarily communicating.
What I’m finding is that your marketing team is strategizing for an odd future: An era of precognition, driven by an undeniable and powerful consumer trend: The emerging base of consumers value relevancy over privacy. They’re willing to trade privacy for new services – and their inventory of sellable secrets grows while their avenues for selling them become wider. If you’ve guessed this has something to do with mobility, you’re right. What I’m finding our M&S analysts recommending is not only interesting (and in some ways terrifying), but could have an overwhelmingly positive impact on an EA practice’s value to the organization, bringing it closer to tangible revenue contribution. But only EA practices ready to accept this new mission will see this benefit.
Translating the guidance from Forrester’s M&S analysts, there are five things that EA leaders must think about if they are to enable this future: