To paraphrase a now-marginalized US political figure: “How you’all doing?”
Every year, Forrester’s Enterprise Architecture team looks at how enterprise architecture, as a practice and a function within business, is doing. We look at everything from how firms organize their EA programs, to where they are getting their support from, what roles exist within the EA team, completeness of architecture and the degree of standardization, expected technology change, and priorities and challenges. We ask the same questions year over year to discern any trends.
On December 9, we’ll be presenting the results of the 2011 State of Enterprise Architecture survey, compiling the inputs from 543 firms across North America, Europe, and Asia/PAC. (Note: this teleconference is for Forrester clients. A separate teleconference will be offered for non-client respondents to this survey.) A wide variety of industries are represented: financial services, manufacturing, retail, business services, and public sector. A few highlights:
The structure of firms’ EA functions continues to shift – with both centralized and completely decentralized increasing.
Architecture staffing continues its growth. The business architect role is one factor driving this growth.
Awareness and support by the broader business and IT organization continue to climb – both by the CIO, other IT functions, and by line of business management.
Drivers for EA show a significant shift – with “improving business agility” rising to the top.
As 2011 begins to wind down, we can look back on the progress made over the last 11 months with a lot of pride. The market stepped significantly forward with big gains in adoption by leaders Amazon Web Services (AWS) and Rackspace, significant growth in the use of clouds for big data, training, test and development, the creation of landmark new services, and the dawning of the App-Internet era. Cloud technologies matured nearly across the board as did transparency, security, and best practice use and adoption. But there’s much more growth ahead as the cloud is no longer a toddler but has entered the awkward teenage years. And much as found in human development, the cloud is now beginning to fight for its own identity, independence, and place in society. The next few years will be a painful period of rebellion, defiance, exploration, experimentation, and undoubtedly explosive creativity. While many of us would prefer our kids go from the cute pre-teen period straight to adulthood, we don’t become who we are without surviving the teenage years. For infrastructure & operations professionals, charged with
Ah, Black Friday: What would the post-Thanksgiving shopping bonanza be without a visit to the local mall? This year, I was keen to perform some gumshoe research on a theme I've been talking about all year long: mass customization, a product strategy that's ready for prime time across multiple industries.
A trip to the Natick Mall (yes, "Mall," no longer "Collection," New Englanders) reveals that mass customization isn't just the future; it's the present. In fact, it's hiding in plain sight. Build-a-Bear Workshop, Hallmark, Lego, and LensCrafters are all stores in the Natick Mall that offer significant customization for consumer products. Burberry is the latest Natick Mall vendor to offer mass customization; I am quoted in Time magazine this week (here, but subscription required to view the link; page 82 in the December 5 paper edition) discussing how luxury clothing and customization fit together well. As I've written before, one of the benefits of employing mass customization is that it empowers consumers to create products that express their personalities -- a particularly relevant feature for clothing and apparel products.
Cloud – people can’t agree on exactly what it is, but everyone can agree that they want some piece of it. I have not talked to a single client who isn’t doing something proactively to pursue cloud in some form or fashion. This cloud-obsession was really evident in our 2011 technology tweet jam as well, which is why this year’s business technology and technology trends reports cover cloud extensively. Our research further supports this – for example, 29% of infrastructure and operations executives surveyed stated that building a private cloud was a critical priority for 2011, while 28% plan to use public offerings, and these numbers are rising every year.
So what should EAs think about cloud? My suggestion is that you think about how your current IT strategy supports taking advantage of what cloud is offering (and what it’s not). Here are our cloud-related technology trends along with some food for thought:
The next phase of IT industrialization begins. This trend points out how unprepared our current IT delivery model is for the coming pace of technology change, which is why cloud is appealing. It offers potentially faster ways to acquire technology services. Ask yourself – is my firm’s current IT model and strategy good enough to meet technology demands of the future?
Sorry but I’m “frustrated of Peterborough” (but not directly at IT for once). Having just come off a half an hour call with two “major credit card provider” customer service staff, I’m frustrated to within an inch of screaming at someone. In some ways this blog is my outlet (but there is interesting stuff eventually).
You might think I'm overreacting, however, when one’s time is so limited these days, it is difficult to rise above the fact that I wasted 20 of the 30 minutes most likely because the “major credit card provider” has off-shored its customer support to save money (please note that the off-shoring is an assumption on my part based on my interactions).
But what has this to do with IT?
Hopefully you didn’t need to ask this question … I had an issue with a credit card service; many have issues with corporate IT services. We all call up, we all expect a quick resolution, and many expect to be treated in a customer, rather than supplier, focused manner.
Oddly enough, I spoke about this exact point at the itSMFUK London Regional yesterday … from an IT service management perspective (well specifically a service/help desk perspective). That we are now too focused on the mechanics of things (tool and process, AND scripts) and that, in some ways by virtue of this, we have “dumbed-down” the IT service desk.
This is not intended as an insult to service desk people, they have a difficult job: a job where they day in, day out, deal with the fallout from IT failures and the potentially unhappy customers. In an environment where there is very little “good news” or praise.
The day before Thanksgiving is a good point to pause and give thanks for the recent news in the tech market, before we give thanks for our personal blessings with our families and friends tomorrow. So, amidst the glum news about the ongoing European debt crisis that is grinding growth to a standstill, the failure of the congressional supercommittee to make any progress on US budget deficits or stimulus, and the crashing stock markets, here are some things that tech vendors can be thankful for.
US economy is still growing. The revised real GDP growth rate for Q3 2011 was 2%, down from the preliminary report of 2.5% (Gross Domestic Product, 3rd Quarter 2011 [second estimate]). That's not much growth, but at least it is growth. And the report on "Personal Income and Outlays: October 2011" released this morning showed a 0.4% increase in October from September (5% at an annualized rate), with consumer spending up by 0.1% (1% annualized). So, the fourth quarter began with some good momentum for consumer spending.
The US tech market is still growing — better than the government data indicates. The Bureau of Economic Analysis data on business investment in information technology was revised downward from the preliminary release, with total IT investment growing by just 3.3%. However, computer equipment grew by 10.6% and software by 6%, with software doing even better if we make adjustments to exclude the "own account" software that is created by firms for their own use. The bad news was that communications equipment investment declined by 13.2%.
Following a successful event in Miami, I am now looking forward to Forrester’s Sourcing & Vendor Management (SVM) Forum EMEA in the UK next week (Herts, Nov 30-Dec 1). An invaluable component of our forums are always the industry expert presentations, and so I’m excited to be joined on stage on day one by Maureen McKinney, Director, Strategic Partner Management, Nike. Maureen will be speaking about how to drive more value from vendor relationships and deliver real value to the business. Ian Dalby, Director Of ICT, UK Ministry Of Justice, will address how different IT and SVM organizations are responding to SVM’s challenges related to connecting demand and supply capabilities within an organization. On day two, Olivier Lefaivre, Head of IT Sourcing and Vendor Management, AXA Group Information Systems, will explain how IT Sourcing and Vendor Management accelerated business transformation at AXA. Our second industry speaker on day two is Jim Nanton, Senior Vice President & CIO, Hanesbrands.
In preparation for the EMEA Forum, I spoke to Jim who, in his role of SVP/CIO at global apparel company Hanesbrands, is faced with a unique set of challenges, risks, and opportunities involved in deploying managed and contract services across multiple countries and cultures. Jim told me about how he believes that vendor management is a core competence in a "plan, build, run" organizational structure, and underlines the importance of selecting the right partners and the practices for managing effective relationships.
T-Systems’ Analyst Summit 2011 in Frankfurt was dominated by updates on the progress the company made regarding its restructuring projects. As a result of these efforts, T-Systems has created the basis to become a more efficient and agile ICT services provider going forward. Still, in our view, the period between mid-2010 to mid-2011 was a lost year for T-Systems — despite the obvious progress T-Systems made in addressing its past challenges.
In some respects, T-Systems had become a victim of its own success in 2009 and 2010. T-Systems was clearly overwhelmed by its multibillion deals (with clients including Linde, BP, Shell, E.ON, MAN, Continental, etc). Delivery capacities were stretched to the limit, manifesting in serious transition and transformation challenges. T-Systems was forced to allocate more capacities to big deals, thus depressing margins to just over 2% in Q3 2011 (see chart below). T-Systems still aims to reach the peer-group average EBIT margin.
Source: company reports
About a year ago, T-Systems began to restructure its entire operations in a mammoth project, effectively redrawing the entire organisational structure and reshuffling the top management team, except for the CEO and CFO. The Analyst Summit provided some insights that these efforts are beginning to bear fruit:
We know that customers don’t choose to interact with you on a single communication channel from start to finish. They interact with you on whatever the most suitable channel for them at that point in time is — which could be via their mobile device, a chat session, a phone call, email, or web self-service from their iPad. This agile behavior is not limited to customer service; it extends to everything that we do, from buying to receiving marketing offers to getting service. Saying this another way, customers don’t make a distinction between a sales transaction and 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. This point is very well illustrated in fellow Forrester analyst Brian Walker's report “Welcome To The Age Of Agile Commerce.”
More than that, customers expect personalized service targeted to their situation at hand. Customers expect you to know who they are, what products and services they have purchased, what issues they have had, over what channels they have used to contact you in the past, and what offers they have been presented with and either accepted or rejected. In addition, they would like to know whether you have read and responded to the feedback that they have given you.
Special thanks to Art Schoeller, TJ Keitt, Henry Dewing, and Ted Schadler for their input
I went to Cisco's Collaboration Summit last week to hear the latest from the various product teams and some of their marquee customers. Much of the story remains the same: Cisco continues to dominate in video and web conferencing; it is taking strong steps in the right direction but still has a lot of work ahead to deliver a cohesive collaboration platform with the likes of Microsoft, IBM, and Google:
Video continues to be a key differentiator. Cisco is expanding its foothold in video at different ends of the market. Highlights from the conference include Telepresence Conductor, a component that optimizes the video traffic in large enterprises with multiple MCUs; and Callway, a hosted service for SMBs that don't want to invest in dedicated infrastructure. The most interesting development to me is the redesigned Jabber client, Cisco's push to compete with Lync. SVP for Telepresence OJ Winge described it to me as a combination of the best technologies from Cisco's applications for IM (Jabber), video (Movi), and voice. The recently released Jabber SDK also allows developers to enable Jabber IM, presence, voice, web conferencing -- and in the future, video -- in web applications like Gmail or SAP.