Software License Models Are Changing — Participate in Forrester’s Online Survey

Holger Kisker

The lines are blurring between software and services — with the rise of cloud computing, that trend has accelerated faster than ever. But customers aren’t just looking at cloud business models, such as software-as-a-service (SaaS), when they want more flexibility in the way they license and use software. While in 2008 upfront perpetual software licenses (capex) made up more than 80% of a company’s software license spending, this percentage will drop to about 70% in 2011. The other 30% will consist of different, more flexible licensing models, including financing, subscription services, dynamic pricing, risk sharing, or used license models.

Forrester is currently digging deeper into the different software licensing models, their current status in the market, as well as their benefits and challenges. We kindly ask companies that are selling software and/or software related services to participate in our ~20-minute Online Forrester Research Software Licensing Survey, letting us know about current and future licensing strategies. Of course, all answers are optional and will be kept strictly confidential. We will only use anonymous, aggregated data in our upcoming research report, and interested participants can get a consolidated upfront summary of the survey results if they chose to enter an optional email address in the survey.

Read more

Forrester's Mobile App Design Context: Location, Locomotion, Immediacy, Intimacy, And Device

Mike Gualtieri

They say "content is king." But, "context is kingier" when it comes to designing great smartphone and tablet mobile apps. Don't make the mistake of thinking that mobile app design is just about a smaller screen size or choosing the right development technology. Content and context are both important to designing great user experiences, but mobile amplifies context on five critical dimensions: location, locomotion, immediacy, intimacy, and device. Understand each dimension of Forrester's mobile context to design mobile apps that will make your users say "I love this app!"

Forrester LLIID: Location, Locomotion, Immediacy, Intimacy, And Device

  • Location. People use apps in an unlimited number of locations. And not all places are the same. A user may be in a quiet movie theater, at home in the kitchen, on a train, or in the White Mountain National Forest. Contrast this with desktop computers, stuck in places such as an office cubicle, home office, or kitchen. Laptops provide some mobility but are larger and less able to provide the immediate access of instant-on mobile devices such as smartphones, eReaders, and tablets. Location is a key dimension of context, driving different needs for users depending on where they are. Fortunately, GPS-equipped smartphones can use a geodatabase such as Google Maps to determine precise location.
Read more

Categories:

Forrester’s 6 Categories Of Best Practices For Customer Service Knowledge Management

Kate Leggett

The right knowledge, delivered to the customer or the customer service agent at the right time in the service resolution process, is critical to a successful interaction. When done correctly, knowledge personalizes an interaction, increases customer satisfaction, reduces call handle time, and leads to operational efficiencies.

Embarking on a knowledge management project is hard. Concerns include:

  • Worries about cultural readiness and adoption. Many executives don’t understand how activities done by a knowledge team translate into real business outcomes and don’t support these programs with the adequate resources for success.
  • Concerns about making content findable. The best content is useless if it can’t be found when needed. “Findability” has to do with search technology, a solid information architecture, and giving users alternate methods to search for retrieving knowledge.
  • Questions about keeping content timely. Knowledge must be kept current, and new knowledge must be published in a timely manner so that it can be used to answer new questions as they arise.
Read more

Three Megatrends To Master For Application Development

Mike Gualtieri

Hockey god Wayne Gretzky said, "I skate to where the puck is going to be, not where it has been." For application development professionals, three megatrends show you where to skate to be more successful:

  • Megatrend 1: Get faster. The recession that started in December 2007 created a hunker-down mentality. The sentiment for IT became: "We need to do more with less." As we emerge from the recession, albeit in an unresounding way, the new sentiment is: "We need to get faster." The pace of business change continues to accelerate, and that in turn has intensified the need for application development professionals to deliver and change applications faster. The industrialization of application development has failed. Scrap it. You must get faster, and that means changing your process, changing your technology, and changing your organization. Software development is more akin to making a movie than to making widgets on an assembly line.
Read more

Trends 2011 And Beyond: Business Intelligence

Boris Evelson

Forrester continues to see ever-increasing levels of interest in and adoption of business intelligence (BI) platforms, applications, and processes. But while BI maturity in enterprises continues to grow, and BI tools have become more function-rich and robust, the promise of efficient and effective BI solutions remains challenging at best and elusive at worst. Why? Two main reasons: First, BI is all about best practices and lessons learned, which only come with years of experience; and second, earlier-generation BI approaches cannot easily keep up with ever-changing business and regulatory requirements. In the attached research document, Forrester reviews the top best practices for BI and predicts what the next-generation BI technologies will be. We summarize all of this in a single über-trend and best practice: agility. IT and business pros should adopt Agile BI processes, technologies, and architectures to improve their chances of delivering successful BI initiatives.

Business intelligence (BI) software has emerged as a hot topic in the past few years; in 2011, most companies will again focus their software investment plans on BI. More than 49% of the companies that responded to our most recent Forrsights Software Survey have concrete plans to implement or expand their use of BI software within the next 24 months. But being interested in BI software and spending money to adopt BI tools and processes do not necessarily translate into successful implementations: Forrester’s most recent BI maturity survey indicated that enterprise BI maturity levels are still below average (2.75 on a scale of 5, a modest 6% increase over 2009). Why are BI maturity levels so low, given the amount of money firms spend on it? Three factors contribute to this rift and can lead to less-than-successful BI initiatives:

  1. Implementing BI requires using best practices and building upon lessons learned.
Read more

Salesforce.com And Radian6 - What Does It Mean For Customer Service?

Kate Leggett

Today, salesforce.com announced the intent to acquire Radian6, a leader in the social media monitoring space. You can find the details of the definitive agreement here. What I want to focus on is what this acquisition means to customer service.

  •  First, the social listening vendor landscape is crowded and ripe for consolidation. Salesforce.com has just picked off the best vendor in this category of vendors, according to a recent Forrester Wave™ report. Radian6 helps salesforce.com extend its core customer service capabilities to the social channels like Facebook and Twitter, which are becoming increasingly important for companies looking to offer a differentiated customer service experience. This is not the first acquisition of this type; however, it is the most significant one, based on salesforce.com's market share and customer base. Expect to see similar acquisitions by CRM and customer service vendors in the future.
     
Read more

Multichannel Customer Service Is Dead. Long Live Agile Service!

Kate Leggett

Multichannel commerce is dead, says fellow analyst Brian Walker in Forbes . The essence of this article is that customers don’t choose to interact with you on a single communication channel from start to finish. They interact with you over the most suitable channel for them at that point in time — which could be their mobile device, or a chat session, or a phone call, or email, or web self-service from their iPad. Brian calls this agile commerce.

I agree that it is an agile world out there. And yet, agility does not stop at commerce — it extends to everything that we do, from buying to receiving marketing offers to customer service. Think, for example, about the process you follow to fix an issue with one of your electronic devices. You may browse a community forum, browse the company’s Facebook page, then their official website, contact an agent who can't help you, tweet about it, get contacted by a better-skilled agent who figures out that you need to purchase a new driver and transfers you to someone who can process your order, which you receive on your mobile phone.

 

An example of agile customer service

 

The point is that a customer does not make a distinction between a sales transaction or a customer service transaction. All they expect is to be able to receive the same customer experience every time they interact with a company, over any communication channel that they use.

Read more

Splintering into mobile

Stephen Powers

I love reading newspapers, and I have a 45-minute train ride to work and that’s perfect for newspaper reading. But the newspaper box at the train station has eaten more than its fair share of my pocket change even when I do have quarters (which is almost never) . And I’m too lazy to get out of my nice warm car on cold mornings and pick up a paper at a convenience store. So these days, I’ve been reading newspaper content on my mobile device of choice (a painfully slow Blackberry).

I’ve noticed a few things about mobile newspaper web sites. First of all, they’re not that great, at least not the ones for the two major Boston papers. They don’t seem to be optimized for the Blackberry. Unnecessary photos slow things down. Navigation is difficult. And the section landing pages don’t always match the print version; for example, sometimes the top story in the sports section is a stale one from two days ago. However, the content’s free – for now - so I guess I can’t kick.

But it made me realize how challenging manage multiple online experiences has become. My colleagues Josh Bernoff and Shar VanBoskirk wrote a great piece about the “splinternet”, which discusses how our online experiences are splintering across multiple devices and touch points. Content and collaboration pros supporting Web content management (WCM) implementations are in for a battle to support mobile Web sites. After speaking with a number of clients about this, the biggest concerns are around:

Read more

Two Models Emerge For Customer Service In Facebook - Which Will Win?

Kate Leggett

With customers increasingly using social tools (Facebook tops 500 million users with 41% of Americans having a Facebook page, 7% of Americans use Twitter, and YouTube gets 2 billion views per day), how do you interact with and service your customers where they are spending their time?

Let’s focus on Facebook, as it has the potential to evolve into a shopping and service destination for retailers. Two support models are evolving. One model is to engage in support activities via a separate tab on a Facebook company page. Once a user clicks on this tab, they can engage with a community of peers or a customer service agent without leaving the site. There are vendors, like RightNow, Parature, Genesys, and Get Satisfaction, that offer apps that do just this.

The other Facebook support model that is emerging is one that is based on listening to all conversations happening on a wall, separating the noise from actionable posts, then routing actionable inquiries to a customer service department so that an agent can respond directly to the post — either on Facebook or by engaging the customer over a more appropriate channel — for example, like pushing a chat link to them on Facebook. This is the model that salesforce.com  and LivePerson are advocating.

Read more

“Just Right” Customer Analytics - update

Boris Evelson

Why, oh, why is it that every time I hear about a BI project from an IT person, or from a business stakeholder describing how IT delivered it, with few exceptions, these are the stories plagued with multiple challenges? And why is it that when I hear a BI story about an application that was installed, built, and used by a business user, with little or no support from IT, it’s almost always a success story?

I think we all know the answer to that question. It’s all about IT/business misalignment. A business user wants flexibility, while an IT person is charged with keeping order and controlling data, applications, scope, and projects. A business user wants to react to ever-changing requirements, but an IT person needs to have a formal planning process. A businessperson wants to have a tool best-suited for the business requirements, and an IT person wants to leverage enterprise standard platforms.

Who’s right and who’s wrong? Both. The only real answer is somewhere in the middle. There’s also a new emerging alternative, especially when applied to specific domains, like customer analytics. As I have repeatedly written in multiple research documents, front-office processes are especially poorly-suited for traditional analytics. Front office processes like sales and marketing need to be infinitely more agile and reactive, as their back office cousins from finance and HR for obvious reasons.

Read more