The Big Mistake With Business Architecture

There’s a big mistake often made with business architecture — a very big mistake, yet a very subtle mistake. As you might expect, there are a number of mistakes one might make with business architecture, but there’s a particularly big and common one that multiplies its effect through all the others.

The mistake is this: To position business architecture as a new layer on top of your existing processes and structures for EA domains such as application architecture, information architecture, and infrastructure architecture.

Here’s the issue: The traditional way many organizations have pursued EA, it should have been called “enterprise technical architecture” — ETA. The central focus has been on the likes of technical standards and reference architectures for application implementation — i.e., on the technology — and not on the enterprise itself. In a phrase, ETA is “technology-centered,” leading us to odd behaviors like assuming it’s only natural that business users, product data, customer data, and the rest will be fractured and split across multiple applications. We put applications at the center and make the business gyrate and adapt around our siloed and broken applications.

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Choosing A Contact Center Outsourcer Is Hard; Evaluate Candidates Over 8 Dimensions

Outsourcing contact center operations helps organizations deliver better customer service. In Forrester’s recent survey of 304 North American and European network and telecommunications decision-makers, we found that nearly 20% have already outsourced some or all of their contact center seats or are very interested in doing so. Choosing to outsource should not be based on cost considerations alone. Select an outsourcer carefully. Outsourcers need to provide an environment that delivers quality customer service in a cost-effective manner. When looking for providers, evaluate their capability to:

  • Onboard new customers. Outsourcers should be able to communicate a well-defined process and timeline for onboarding a new customer and articulate the commitments that both the outsourcer and the customer need to meet for a successful onboarding process. The outsourcer should also be able to guarantee phased service-level agreements (SLAs) for the length of the onboarding process.
  • Report key metrics. Comprehensive reporting should accompany all engagements and should be available for review at any time. Identify the types of operational reports that you will have access to. Evaluate the ability to customize reports.
  • Adhere to quality standards. Make sure that outsourcers comply with quality standards such as Six Sigma and the Customer Operation Performance Center (COPC) that provide guidelines for managing operations and that ensure consistency for delivering services.
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Understanding Cloud's Multitenancy

Forrester’s James Staten and I collaborated on this research.

True cloud services all use some mode of multitenancy — the ability for multiple customers (tenants) to share the same applications and/or compute resources. It is through multitenant architectures that cloud services achieve high cost efficiencies and can deliver low costs. Multitenant architectures must balance these cost benefits with the need for individual tenants to secure their data and applications. Forrester finds that few application development and delivery (AD&D) pros understand how multitenant architectures balance sharing with security, and many have other concerns as well. This research clarifies the picture and guides good decisions about cloud services.

Our definition: Multitenancy defines IT architectures that let multiple customers (tenants) share the same applications and/or compute resources with security, reliability, and consistent performance.

Our research yielded three major findings about multitenant architectures. These are:

  1. Multitenant architectures must strike a balance between sharing and security. To deliver cost savings and scalability, a multitenant architecture must be able to manage dynamic resource consumption by its tenants without violating their security. These two goals ultimately conflict with one another, since shared resources and individual security rarely go hand in hand.
  2. Two common multitenant architecture models have arisen. Dedicated resource models stake boundaries within shared infrastructure, defining the resources a tenant can access, allowing for tangible and secure walls but lower flexibility. Metadata map models chart protected pathways to shared resources, allowing for increased flexibility, but they ultimately may feel less secure.
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Agile Development Makes Business Technology Come True; It Embodies Business Value In Software

There is no doubt that Agile growth in the market is significant, and the growing daily number of inquiries I’ve been getting on Agile from end user organizations in 2012 gives me the impression that many are moving from tactical to strategic adoption. Why’s that? Many reasons, and you can read about them in our focused research on Agile transformation on the Forrester website. But I’d like to summarize the top five reasons from my recent research “Determine The Business And IT Impact Of Agile Development” :

  • Quality was the top — quite astonishing, but both the survey we ran across 205 Agile “professional adopters” and the interviews across some 21 organizations confirmed this. My read is that this is about functional quality.
  • Change was second to quality. We live in an era where innovation strives and organizations are continuously developing new apps and projects. But your business does not necessarily know what it needs or wants upfront. The business really appreciates the due-course changes that Agile development allows, as they enable the business to experiment and try out various options so it can become more confident about what is really right for the organization. Cutting edge cutting edge systems-of-engagement (Mobile, Web-facing, Social-media, etc) require lots of Change in due course.
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Turning Data Into Business Value

Join us at Forrester’s CIO Forum in Las Vegas on May 3 and 4 for “The New Age Of Business Intelligence.”

The amount of data is growing at tremendous speed — inside and outside of companies’ firewalls. Last year we did hit approximately 1 zettabyte (1 trillion gigabytes) of data in the public Web, and the speed by which new data is created continues to accelerate, including unstructured data in the form of text, semistructured data from M2M communication, and structured data in transactional business applications.

Fortunately, our technical capabilities to collect, store, analyze, and distribute data have also been growing at a tremendous speed. Reports that used to run for many hours now complete within seconds using new solutions like SAP’s HANA or other tailored appliances. Suddenly, a whole new world of data has become available to the CIO and his business peers, and the question is no longer if companies should expand their data/information management footprint and capabilities but rather how and where to start with. Forrester’s recent Strategic Planning Forrsights For CIOs data shows that 42% of all companies are planning an information/data project in 2012, more than for any other application segment — including collaboration tools, CRM, or ERP.

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Software Is Your Business - Forrsights Survey Data To Help Bust "No Software" And "Software Development's Not Important" Myths

Just over 3 months ago, I made note of three things I'd tell your CIO, all of which focused on your need to build a software development competency to help your firm thrive in this age of software-fueled, consumer-led disruption. Since then, we've heard from a number of clients stating that they're having a tough time convincing their executives, from COOs and CFOs through to CIOs, that they need to stop looking at software and app development as a commodity. 

Vendors you work with aren't helping. System integrators and consultancies continue to tell your CFO and CEO to outsource your software development work to them, that they can deliver more quickly, and more cheaply, than you can. Software application vendors build their marketing around needing no customization, even "no software." This helps fuel the perception and myths many executives hold that software development, especially app dev, is a commodity.

Recent research published by Phil Murphy and survey data we recently collected in our Forrsights Software Survey, Q4 2011 can help you bust those perceptions and myths and help you show your executives the importance of software development. 

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Don't Outsource Your Customer Service Operations To Cut Costs

Outsourcing contact center operations helps organizations deliver better customer service. In Forrester’s recent survey of 304 North American and European network and telecommunications decision-makers, we found that nearly 20% have already outsourced some or all of their contact center seats or are very interested in doing so. Outsourcing doesn’t have to be an all-or-nothing proposition — organizations can leverage outsourcers to fill language gaps or react quickly to seasonal volume changes. Organizations can also choose to outsource only a subset of non-mission-critical customer service processes.

In all cases, outsourcing is major decision which carries a significant amount of management overhead, and should not be pursued solely as a cost-control strategy. Look to outsource if you want to:

  • Improve the quality of services delivered. Leading outsourcers adhere to strict quality measures that allow them to support customers more consistently and use tools and techniques that promote cost-effective and reliable standards.
  • Focus on core business activities. Using the expertise of an outsourcer whose primary business is managing contact centers allows you to focus on core business activities that strengthen your value proposition.
  • Deliver a consistent customer experience. Many companies use processes that are inefficient and don’t deliver the same customer experience across the voice, electronic (e.g., email, chat, SMS), and social (e.g., Facebook, Twitter) customer interaction channels. Outsourcers can help standardize this experience.
  • Scale capacity up and down. Organizations can’t always predict the volume of interactions they anticipate over time. Outsourcers allow you to quickly ramp up or contract enabling you to deliver service in line with your  target service levels.
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Marketers: Have You Defined Your Technology Roadmap?

In a recent report, my colleague Robert Brosnan correctly spotlights that marketers require ever more technology to capture, integrate, analyze, and apply customer data to marketing programs. Indeed, the technology portfolio that marketing leaders must understand and manage is exploding. Marketers typically have a portfolio of technology assets to support marketing planning, marketing asset management, campaign management, segmentation, and predicative modeling. And most marketers work with online marketing tools for email, mobile, social, and web analytics.

Rob recommends that marketers establish an enterprisewide marketing technology office (MTO) to ease and take advantage of technology development. The office, working through a chief marketing technology strategist, sets marketing technology strategy, makes the business case for embedding new technology within marketing programs, and manages technology-related partnerships. The marketing technology strategy should summarize the road map for how you plan to employ the technologies necessary to understand and engage more deeply with your target customers.

Forrester defines the marketing technology road map as:

A plan that matches short-term and long-term marketing goals with specific technology solutions to help meet those goals.

So how do you formulate the marketing technology strategy and road map?

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Don't Let CRM Pitfalls Trip You Up

My Twitter feed is going wild with #social, #mobile, #CX, and #bigdata hype. But Forrester clients want practical advice for today, in addition to spotting changes on the horizon.

One of the most common questions I get is: “What are the CRM pitfalls I need to watch out for?” I surveyed nearly 150 companies to find out the problems they faced with their CRM initiatives. Here is what you need to pay attention to:

  • Crafting a customer relationship management strategy. Eighteen percent of the problems at the companies I surveyed pertain to CRM strategy. Within the CRM strategy category, specific pitfalls identified include: inadequate deployment methodologies (40%), poorly defined business requirements (25%), and not achieving organizational alignment on objectives (18%).

“Reaching a consensus between IT’s objectives and those of the business unit was a problem.” (Marketing manager, manufacturing company)

“Internal disagreements on how to implement were the cause of our problems.” (Senior director, customer support, media, entertainment, and leisure company)

  • Rearchitecting critical customer-facing processes. CRM processes consist of the work practices associated with major customer-facing business functions within an organization. Twenty-seven percent of the problems reported center on difficulties with business process management. Within the business process category, specific pitfalls to watch out for include: technical/integration difficulties in supporting company processes (48%), poor business process design (31%), and the need to customize solutions to fit unique organizational requirements (21%).
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