In addition to the eHealth initiatives mentioned in my previous blog, I wanted to call out another T-city program that struck close to home for me — the “tumor conference program.” The idea is simple, but the impact is enormous. The program’s official objective is to “make possible the interdisciplinary exchange of experiences between doctors, therapists, and cancer specialists, and to support the process flow of a tumor conference by using a modern communications solution.” But for many patients, the objective is more than “process flow,” it is about universal access to healthcare and access to specialists in the fields they need — in this case, access to the cancer specialists that are affiliated with research centers and university hospitals. These conferences are vital to extending access beyond just the big cities to the smaller towns and rural areas. And we’re not talking about Africa or India — we’re talking about Europe, and developed countries on other continents.
Several weeks ago I toured Friedrichshafen, Deutsche Telekom’s T-City — a smart city demonstration project launched in 2006 to test the use of ICT across a real city with real people. The project began with a competition in which the cities themselves proposed a concept for how they’d use ICT and work with Deutsche Telekom (DT); 52 cities competed, 10 were short-listed, and Friedrichshafen was ultimately chosen.
Friedrichshafen is a relatively small city of 59,000 — not one of the megacities that have garnered so much attention from large technology vendors and the media. It is also not a greenfield city with a clean slate; it has an industrial history, with the Zeppelin Museum holding a place of prominence on the shore of Lake Constance.
The T-city project began with the installation of fiber to the curb and upgraded 3G mobile technology. This networking backbone powered more than 30 projects, from health and assisted living to education to home networking to smart grid. Some were simple citizen services applications — like the Flinc ride-sharing application or a kindergarten registration application — while others were more extensive infrastructure projects.
Yes, that’s right — I’m suggesting CIOs should stop working on IT strategy. The days of developing a technology strategy that aligns to business strategy need to be behind us. Today’s CIOs must focus on business strategy.
Let’s face it: Does sound business strategy even exist today without technology? Most CEOs would likely agree that, unless you are running a lemonade stand, any successful business strategy must have solid technology at its core. The challenge for today’s CEOs is that, while planning business strategy in isolation from technology is sub-optimal, it remains the most common way business leaders develop strategy. And while there have been many great books about strategy, the specific challenges facing the CIO are largely absent.
That’s why Forrester has researched the ways in which companies develop technology strategy and also why we have developed the Business Technology Strategic Planning (BTSP) Framework. Our new BTSP framework distills Forrester’s current research into an easy-to-follow guide that has at its heart the understanding that there should be no IT strategy, just business strategy with a technology component, or BT strategy.
Now you might think we’re crazy — after all, many firms, including Forrester, earn substantial revenue from advising CIOs on IT strategy. But as I see it, IT strategic plans belong in a museum.
I had an interesting conversation with a Forrester client in response to an inquiry about the definition of “time to value” for technology solutions. When I received the question, I thought, “That’s easy!” While there is no “GAAP” definition of time to value, I was ready to say that it would be one of two things:
1- The time from project start to the start of business benefit accrual. So, if a project took 12 months to implement, and then three months for the business to adapt to it, the time until business benefits began to accrue would be 15 months.
2- The time from project start to the date at which cumulative business benefits exceeded the cumulative costs. In other words, the time until the “payback” of the investment.
However, in trolling around to make sure that I hadn’t missed anything, I stumbled upon a potential third definition (and I wish I could point back to the source). One commentator on the Web suggested something a bit different – and something that has a great deal of merit as we rely more and more on technology to drive business gains. In his definition, time to value represented the time until the business targets for the solution were achieved. So, rather than looking at the start of benefits, or the date we’re no longer cash-negative, we are now looking at the time until the full desired benefits are achieved. So this becomes:
3- Time to value is the time from project initiation until the projection of total business benefits is achieved.
This change in perspective has a number of implications:
Apple has already announced that it’s got 100 million signups for its personal cloud service, iCloud, and repeated that today. Now Apple supports movies — in addition to TV shows and music — in iCloud. Apple added PhotoStream to iCloud support in Apple TV, including the previous black Apple TV, with the new Apple TV software update. With the new iOS iPhoto app, I believe Apple will use iCloud to sync albums and the new journal information that displays weather information from the date a photo was taken — although full support will probably require an update or new version of iPhoto on the Mac.
Apple’s vision of personal cloud deeply integrates across Apple products and a wide range of personal and purchased content, including books and iTunes U-class materials. It’ll be interesting to see if the company opens up any API access. My hunch is that Apple will create tools and an app store for iCloud to interact with the personal content in the service rather than do large-scale API access.
As my colleague Sarah Rotman Epps so aptly observes: the third generation of iPad is a gut renovation masquerading as incremental innovation. The new iPad looks basically the same but now carries a snappy 4G radio and a much more powerful graphics processor than its predecessor. The big hardware advance lies in the components, particularly in the graphics processor to handle the high-fidelity Retina display and rapid-response touchscreen control. How will an iPad with much better graphics and a faster network connection affect the enterprise?
Some Forrester data from our workforce surveys and forecasts to set the stage:
Around 60,000 global movers and shakers of all things mobile once again descended upon Barcelona to attend the leading annual mobility event, the Mobile World Congress (MWC). This year’s main themes centered on metadata analytics, the customer experience, and over-the top business models:
The big data opportunity fueled the fantasies of almost all MWC attendees. In the case of telcos, data analytics is seen as the driver for improving the customer experience and developing new markets. Telcos talked a lot about the opportunities of analysing user behavior and turning user data into the new operator currency. The context- and location-aware nature of mobile solutions makes the big data opportunity particularly attractive. However, despite the talk, there were practically no case studies of operators that have succeeded in monetizing data on a large scale. Progress regarding data monetization is slowed down by a lack of clear business models, but also by an OSS/BSS infrastructure that does not support real-time or near real-time analytics. Moreover, privacy concerns also act as a drag on the uptake of data analytics. Equipment vendors such as Nokia Siemens Networks, meanwhile, showcased their customer experience management and analytics solutions for telcos. The solution combines analytics and the actions that operators must take to correct or improve the end user experience, such as a level one call handler pushing the correct settings to a phone or a marketing manager setting up a marketing campaign.
In 1996, a would-be MIT entrepreneur pitched me on this idea: “What if we could package up huge files like engineering drawings and email them to people instead of FedExing them?” I listened politely, but it all seemed a little futuristic to me at a time when even email wasn’t ubiquitous.
Of course, this is exactly the business YouSendIt launched in 2003. The nine-year-old company does this quite simply by using email to send the message and YouSendIt to carry the payload — the gigantic file that you can’t attach to the message directly. The company now has 23 million subscribers; according to Wikipedia, 500,000 of them pay for the privilege.
Today the company announced Workstream by YouSendIt, a set of business enhancements to its evolving set of file services. The goal, in the words of CMO Tony Nemelka, is to give enterprises “systems that extend their line of sight beyond central storage and beyond the firewall.” I found three notable things about this offering:
Integration with Outlook and SharePoint with plugins to make it easy to send and retrieve files. While this may not be unique, the integration is quite intuitive. In the experience of David Michel, CIO for Atlanta-based law firm Burr & Forman, giving employees tools they recognize makes it easier for them to use them. Further, it’s integrated into their common workflows such as eDiscovery.
Enterprise administration tools for user and group management. This is what IT needs in order to provide a business-ready alternative to consumer-focused Dropbox. It’s what drew Michel to the offering. Now, this is not lockbox-type security or administration that you could get from a virtual deal room product from IntraLinks, but it’s enough for email-level security and administration.
CeBIT 2012 kicks off tomorrow — and believe it or not, it’s still the world’s biggest IT show, attracting 339,000 visitors last year and very likely even more this year.
Cloud computing is all over the fair this year (again), but some vendors have managed to move beyond cloud infrastructure and are starting to combine the ease of use, standardization, and opex-based consumption with business software. I had the chance to talk to some vendors last week about their upcoming announcements. Forrester analyst Holger Kisker has already pointed it out in his 10 Cloud Predictions For 2012:
The Wild West of cloud procurement is over! More enterprises and SMBs than ever are discovering a formal strategy to purchase cloud services in 2012. The easiest consolidated way to do this is an app store or cloud marketplace.
This week I participated in a small group discussion with business and IT leaders who are focused on innovation. It was an interesting discussion that touched on these topics:
The scope of innovation. Yes, innovation is on everyone’s minds, in business publications and is the hot topic du jour. However, what exactly is innovation? What is the scope of innovation? Is it at the product or customer experience level, the business model level, the business process level, or at the departmental level? When talking about innovation, it’s critical to identify what level within the organization or the addressable market you are focused on and the scope of your desired innovation. That helps determine the sponsors and participants, the skill sets required, the change management approach, the timeline, and many other critical components of the engagement.
Sustainability. One of the biggest problems in innovation is sustainability — maintaining momentum over time. Often a senior executive comes in, shakes things up, gets people to buy into innovation, and then moves on in a couple of years. If leaders up and down the organization haven’t fully embraced the innovation efforts as their own, the effort gets orphaned and dies when the executive champion and thought leader leaves.
The industry sector. Most participants in the discussion felt that innovation almost always happens at the industry level — that industry expertise trumps technology expertise when coming up with strategic, game-changing ideas. They also thought that cross-training innovation leaders in IT if they are industry experts (and vice versa) is crucial. This means that CIOs may face a high hurdle when trying to get the business technology organization plugged into innovation initiatives.