Today Google announced its Google Wallet product, along with partners Sprint, Citi, MasterCard, and First Data (Forrester clients can read our more detailed take on this announcement here). While Google Wallet will initially support Citi-branded MasterCards, the product is open and will accept payment solutions from multiple networks and issuers. Google introduced its Wallet by saying, “This is just starting,” and Google’s right — the path to the new world of transactions that the company painted will be a long and arduous one for consumer product strategists. Why?
Not many phones. Today the number of phones on the market that support Google Wallet is as close to zero as makes no difference — the Nexus S that Sprint launched on May 8th. That will change — by the end of 2012, we expect that virtually every smartphone sold will include NFC.
Not many issuers. Consumers want to be able to use their existing payment options, not have to sign up for a new credit or debit card in order to use their phone.
Not many merchants. Consumers don’t want to have to look for an acceptance mark; they expect that the merchants they frequent will support the payment options in their wallet. While PayPass terminals are becoming more prevalent, they are a long way from ubiquitous.
Not much incentive for consumers. Some consumers might say it’s convenient to just carry their phone, but wallets hold a lot more than just payment instruments. And it’s not clear that pulling out our phone, opening an app, inputting a PIN, and waving our phone at the POS is more convenient than swiping a credit card or exchanging cash.
In my last blog I asked the question, “What’s it take to be a smart city?” One of the critical elements lies in smart governance. Smart governance takes leadership, coordination, and collaboration. (Take a look at my recent report, "Smart City Leaders Need Better Governance Tools.") Part of this leadership is finding innovative and cost-effective solutions to intractable problems – and that often lies in engaging constituents for input on the problems and feedback on the solutions. As Charles and I were working on another project, we came across a great example of a US state looking outside the box to solve a real and frustrating problem faced by its citizens.
Today we’re kicking off Forrester's IT Forum 2011 at The Palazzo in Las Vegas. Prepare for three exciting days of keynote presentations and track sessions focused on business and technology alignment. Use the Twitter widget below to follow the Forum conversation by tracking our event hashtag #ITF11 on Twitter. Attendees are encouraged to tweet throughout the Forum and to tweet any questions for our keynote presenters to #ITF11.
I am so looking forward to hearing from our keynoters next week at the Forrester's IT Forum 2011. Poised to be one of the most informative – and entertaining – will be Michael Ali, VP & CIO, Harman International. Michael will discuss how integration, not alignment, is the ultimate goal for CIOs who are determined to get the most out of IT investments for the benefit of their businesses. Rumor has it that he’ll also toss out some zinger lessons learned that will help us all avoid common pitfalls as we move beyond alignment. I asked Michael a few questions to get some insight on his IT organization and his experience with IT transformation. His answers point to both the fundamental shifts that will characterize the empowered BT era and some perennial truths of IT. We hope you can make it to Las Vegas to hear more . . .
Sharyn: To move beyond business-IT alignment, Forrester believes organizations must drive innovation. How is the IT organization at Harman doing that?
Hewlett-Packard reported its financial results for the quarter ending on April 30, 2011, early in the day on May 17, a day sooner than expected. Dell reported its financial results the same day, at its normal time at the end of the day. In many ways, as we will see in a minute, the results were similar. Yet the financial market reaction was dramatically different. HP's stock price dropped by 7% during the day, while Dell's stock price rose by almost 7% in after-hours trading. Bloomberg News, in its article on the two companies' results, headlined what it saw as the reason for the different performance: "Dell Shares Rise After Corporate Spending Gives Company Edge Over Rival HP."
I am not a stock analyst, nor is Forrester in the business of analyzing or forecasting stock performance. But the divergent responses of the stock market to the financial results of HP versus Dell do have implications for vendor strategy, while the underlying results show where the tech market is headed.
First, let's compare the actual numbers. HP's revenues in the quarter were up by 3%, and right in line with expectations, while Dell's revenues were just 1% higher, and lower than expectations. Dell's sales to business rose by 3%, while HP's sales increased by 8%. Dell's sales to consumers fell by 7%, slightly better than the 8% drop in HP's sales to consumers. So far, very similar numbers between the two vendors, with HP actually doing better than Dell in the quarter. So, why the market perception that Dell outperformed HP?
This post is to announce and describe the 2011 Groundswell Awards, specifically the internal "management" category: innovation, collaboration (including social), and mobile. As my Empowered coauthor, Josh Bernoff, writes:
"We had this idea in 2007 that we could surface the best, most interesting, most effective social applications with an awards program. At the time, I never realized just what a fascinating variety of programs we'd encounter. So we kept doing it."
"The purpose of this post is two-fold -- to officially announce and open up the site for entries to the 2011 awards, and to celebrate some of the most amazing entries of the last five years."
Read Josh's recap of the award's five-year history here.
Starting last year, we expanded the field to include three internal “management” scenarios in line with our book Empowered. The awards this year are for:
Employee Mobile Application:Help employees solve customer and business problems using smartphones and tablets.
Employee Collaboration/Social Application:Help employees connect and work together.
I realize I'm posting two rants in a row here (my last one was on marketing being a dirty word), but this is important! I just read in the WSJ that it's time more CIOs report to the top... my initial reaction was "oh come on, really, are we still on with this old chestnut?" -- the thing is, I couldn't agree more. But here's what gets me -- we were saying this in the '80s. The hope back then was that, as more CEOs stepped up who had grown up with technology, things would change and more CIOs would report into the CEO. Clearly this was pie-in-the-sky optimism ... so what went wrong?
Traditional wisdom (aka analysts) suggests that it's up to the CIO to "earn" a seat at the table by demonstrating leadership, delivering business value from IT, and lots of other hoops to jump through. While my colleagues and I work diligently on research to help CIOs achieve this, I can't help feeling there is an alternative perspective we are missing, and that's what drove me to write this blog post.
What’s it take to be a smart city? Is it smart transportation, such as sensors in parking spaces that call out to drivers like sirens calling to Ulysses as he headed back to Ithaca? Or parking meters sending SMS messages to alert those parked that their time is up, like a baby bird calling to be fed? Is it smart buildings that turn the lights on when you enter or off when you leave? Is it smart waste management? Is it smart energy grids? Is it smart water systems? Or smart administration? All of these help make city services and operations more efficient. But the real key to being smart is to have an overall management system that allows leaders to coordinate across these smart systems, capturing and sharing the data generated and using it to inform new policies and city programs. Smart cities require good – “smart” – governance and the processes and tools that enable it.
Increasingly, city leaders are adopting enterprise management practices – and technologies – in order to improve city governance. Smart city leaders:
Match budgeted spending with performance objectives.
Adopt enterprise apps such as EAM, ERP, and CRM in shared or cloud models.
Appoint professional operational and IT management to coordinate.
Implement regular process and performance reviews – and supporting technologies.
Establish integrated reporting for greater transparency.
I'm going to date myself here, but in the early 90's when I was working in IT, I created a new role: "IT Marketing and Services." In defining the role, I was quite deliberate about my choice of words -- especially in the use of "marketing." This role was responsible for all customer-facing aspects of IT -- that included IT business relationship managers (yes we had them back in the early 90's), help desk, training, communications (of the PR kind), demand management and planning. I chose the word "marketing" deliberately to reflect the fact that this was a customer-facing responsibility (both internal IT customers and end-customers of the business from a technology perspective).
Twenty years on, and the number of IT professionals who really understand marketing and recognize the importance of marketing as a key component of IT operating strategy has, if anything, declined. Why?
Often when I ask CIOs today about the role of marketing in IT they are overcome with concern about using the term "marketing" in the context of IT. They believe people across the organization will think there is no role for marketing in IT, and that having anyone with a "marketing" title will suggest IT has too much money. Why does this fundamental misunderstanding of marketing perpetuate throughout organizations? So many otherwise knowledgeable executives think marketing is simply advertising or worse "spin." Do "marketing" job titles in IT really suggest that CIOs are trying to "sell" IT to the rest of the business? I wonder if this is a problem for IT or if it is an issue created by the perception of others outside of IT.
I'm not going to comment on the $8.5B purchase price, though I'm sure Marc Andreesen's investment company is happy with their return. And I'm not going to comment on the impact on Xbox, Hotmail, and Live.com. And I don't think this has anything to do with Windows Mobile.
But I am going to comment on the impact of the deal on the enterprise, and specifically on content and collaboration professionals responsible for workforce productivity and collaboration. When you strip it down to its essence -- Skype operating as a separate business unit reporting to Steve Ballmer -- here's what you need to know about the Skype deal:
First, Microsoft gets an important consumerization brand. Skype is a powerful consumer brand with a reported 600+ million subscribers. But it's also a "consumerization brand," meaning that it's a valuable brand for people who use Skype to get their jobs done. Consumerization of IT is just people using familiar consumer tools to get work done. It's a force of technology-based innovation as we wrote about in our book, Empowered: Unleash Your Employees, Energize Your Customers, Transform Your Business. Google and Apple and Skype have dominant consumerization brands. Microsoft does not. Until now. And as a bonus, Google doesn't get to buy Skype. And more importantly, neither does Cisco.