Trends 2011 And Beyond: Business Intelligence

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

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.
     
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Multichannel Customer Service Is Dead. Long Live Agile Service!

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.

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Splintering into mobile

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:

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Serious Games? Definitely. Gameification? Too Early To Say.

As readers of this blog know, I have a keen interest in serious games. Among other virtues, they provide a way to deal with tough circumstances by changing the way team members interact. In an upcoming research document on the subject, I relate the story of a development team that had to rewrite a creaky old application from scratch. Which features did the team need to re-implement right away? By running a serious game with the stakeholders, the team pinpointed which features were essential and why.

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

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.

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“Just Right” Customer Analytics - update

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.

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Dev Ops Fell On Deaf Ears At IBM Pulse 2011

Much has been written about the emerging trend of DevOps. Mike Gualtieri, as always, provided sharp commentary in his blog titled “I Don’t Want DevOps. I Want NoOps.” I was very excited to attend IBM Pulse 2011, which is aimed clearly at operations professionals and is Tivoli’s primary event. Over the past year, the Tivoli brand has gone through a management change. Danny Sabbah and a lot of his management team moved from Rational, the developer brand, to Tivoli. So I was interested to hear how Danny Sabbah and his team had introduced the ideas of Jazz and OSLC into the Tivoli mission. And I was not disappointed. The keynotes, track sessions, and analyst and press events were all aimed at vision. They talked about the end-to-end value chain of delivering and maintaining software. They placed heavy emphasis on process and automation, describing a vision of integrated tools and process allowing software to move seamlessly from idea to implementation and beyond. IBM is not alone in this vision; increasingly, other vendors are trying to break down the barriers between operations and development. HP, with its Business Technology Optimization (BTO) vision, is connecting quality, portfolio management, and service management. Microsoft for a long time has described an integrated vision for the .NET platform.  

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Polls Are A Great Prioritization Tool, Except When They Fail Spectacularly

Democracy is great, right? We'd all prefer to have direct participation in the decisions that affect our lives, from which multimillionaire will represent us common folk to which features we'd like to see in the next version of Microsoft Office. (Please, please, PowerPoint team, just copy Keynote's auto-align feature already.) The more voting we do, the more we feel that civilization has advanced, and the better the quality of the products or politicians we get.

Polls Are Valuable But Inadequate
In recent years, application development teams have grown increasingly open minded, and in many cases even enthusiastic, about voting or polls as a prioritization mechanism. Worried that your requirements rely too heavily on interviews with a potentially unrepresentative sample of users? Take a quick poll to get a more accurate estimate of real demand for the work you might do.

As important as polls can be, they're not perfect. Even if you don't go crazy with how you use the results, the quality of these findings depends a great deal on the questions you ask. Even if your survey question kung fu is great, other risks exist, such as the unfortunate tendency of people with no opinion answering the question anyway because they don't want to appear foolish.

One peril that holds special relevance to application development (or product development in general) is the missing part of the sample. By their nature, polls omit the customers you think you should have but don't yet have. 

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To BI Or Not To BI — That Is The Question For SAS

First of all, congratulations, SAS AR team, for one of the most efficiently and effectively run events.

SAS needs to make up its mind whether it wants to be in the BI game or not. Despite what SAS’s senior executives have been heard saying occasionally, that “BI is dead,” SAS is not quite done with BI. After all, BI makes up 11% of SAS’s very impressive $2.4 billion annual revenue (with uninterrupted 35-year growth!). Additionally BI contributed 22% to SAS 2010 growth,  just below analytics at 26%.

Even though some organizations are looking at and implementing advanced analytics such as statistical analysis, predictive modeling, and — most important — model-based decisions, there are only a handful of them. As our BI maturity survey shows year after year, BI — even basic BI — maturity is still below average in most enterprises. Add these numbers to the abysmal enterprise BI applications penetration levels in most large organizations, and you get continued, huge, and ever-expanding opportunity that no vendor in its right mind, especially a vendor with leading BI tools, should miss.

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