Failure Is Not An Option

Failure or success, which do you choose?As regular readers of my blog will know, I’ve been talking about moving beyond alignment for a number of years now. The fact is, too many CIOs have been able to get by on the basis of managing the technology black box — and CEOs and CFOs have been complicit in allowing these same CIOs the freedom to do what they want within tightly controlled budgets, not wanting to sully their hands with “all that technology stuff.” But those days are rapidly coming to an end. The technology genie is out of the bottle; today’s business-unit leaders are more dependent on technology than ever before, and they are also much more tech-savvy. CIOs can no longer hide behind the technology black box — it’s time to change the IT game forever. It’s time for IT to drive business results and connect all technology investments to business outcomes.

Today’s new CEOs are looking to CIOs and IT to make a direct impact on business goals from investments in technology. While every business must make technology investments to sustain operations, IT must move beyond simply keeping the lights on and connect the dots between effective growth strategies and new technology investments. This requires a different set of technology and business skills: different people, process, and technology in the IT organization. In fact, the organization is so different we now call it the business technology organization, or BT. The distinction between IT and BT is subtle but important. BT represents the fusion of the IT organization into the rest of the business. In a BT organization, the lines between IT and business units are blurred. What is important is a focus on the roles needed for effective business technology strategy execution. What’s not important are reporting lines.

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Microsoft Turns The Battleship In Pirate-Infested Waters

For a long time Microsoft ruled the knowledge worker part of the IT seas with impunity. They have fended off attacks from the expected folks like IBM and Oracle rather handily. Then the consumerization wave hit. Turns out the danger came not from a frontal assault from another battleship, but from a huge array of small pirates. Knowledge worker eyeballs that always belonged to Microsoft strayed to Evernote, Dropbox, Box, Jive, Yammer, Google Apps, Confluence, you name it. Even IBM donned an eye patch and went pirate with Connections. A few leaks were found in the Microsoft battleship. Nothing too alarming if you follow the revenue and profit growth numbers from the Office group, but Microsoft has always thrived on paranoia. And for a paranoid company, this is very key moment in time.

Today Microsoft announced the biggest release of Office ever. Every product with an Office brand, Word, Excel, PowerPoint, Outlook, Exchange, Lync, SharePoint and on and on, will be updated with this new release. The strategy is in stark contrast to that of the competition. The pending acquisition of Yammer notwithstanding, the strategy is vintage Microsoft. Generate deeper and deeper integration between multiple products, marginalize competing products down to the level of core product features and bundle, bundle, bundle. 

The consumer trends that Microsoft is reacting to are well known at this point: mobile, social and cloud. Here are some of the highlights that IT needs to pay attention to:

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Telefonica Digital: Only A First Step Towards Transforming The Telco Business Model

I recently attended an event in London where Telefonica shed more light on its Digital division. Digital is the central division driving innovation at Telefonica group and was formed in September 2011. However, Telefonica, despite the creation of Digital, still is somewhat in the old telco mold of inside-out innovation.

Digitization is undoubtedly a major theme affecting both society and the economy, bringing huge implications for communication, collaboration, consumption, and production. The big focus areas for Digital are e-health, digital content distribution, security, cloud, M2M, OTT comms, financial services, and advertising. In this respect, Digital is the right answer. My main observations from the event are:

  • Digital’s product development process is not end-user-focused enough. Digital does not seem to involve the actual end users as much as other solution providers, like for instance Colt (http://goo.gl/oBCO0). What was missing during most presentations was a better demand-analysis of its customer base. Digitization has big implications for company cultures, modes of operation, and ways of life. Businesses require significant assistance in preparing for these challenges such as change management. Digital did not explain how it plans to address these either through internal capabilities or through partnerships with business consulting firms like Deloitte. This means that Telefonica risks developing solutions that do not meet demand. Moreover, detailed customer case studies were not discussed, although Digital did present its portfolio development approach.
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E-Signature Market Continues To Gain Business And Investor Attention

DocuSign, the best-known software-as-a-service (SaaS) brand for electronic signature, just received 47.5M in additional investor funding. According to execs, this will help accelerate growth internationally and include a UK-based data center as well as further internationalization on the signing capability. When signing documents in China, it is more than just a nice feature to have native signing and sending instructions.

The injection will also help build out more industry solutions and take on more of the complete transaction — something that will be required for long-term success for the e-signature market. As part of the investment, Kleiner Perkins' Mary Meeker will join the DocuSign board. Formerly of Morgan Stanley, Mary is well versed in mobile, Internet, and cloud-based markets, and may help cultivate partnerships with emerging lighter file-sharing and cloud-based content solutions — a natural trajectory for e-signature platforms to jump on their steep adoption curves. On the heels of Adobe's acquisition of EchoSign, this shows acceleration of the e-signature market and is consistent with adoption Forrester is seeing driven by mobile and customer engagement trends.

How To Navigate Microsoft's Licensing Of BYOD Scenarios

Microsoft is gradually improving the way it allows for Bring Your Own Device (BYOD) and other scenarios in which many employees use Microsoft on multiple devices. We’re getting growing numbers of questions from Forrester clients about this topic, and while Microsoft is making its approach fairer in some areas, it's also making it more complicated. One problem is that different Microsoft product teams continue to invent new ways to handle BYOD that are OK for their product but are inconsistent with how other product teams handle the same situation. Sourcing professionals need to understand all the different rules, so that they can work with IT colleagues to create a BYOD strategy that balances technical requirements and licensing cost, to take advantage of the available flexibility while avoiding the potential pitfalls. For example, Microsoft has announced cheaper, better BYOD support for the Windows client OS, but you might face significant extra costs for Microsoft Office if you enable it for BYOD unless you take care to avoid them.

Of course the fundamental problem is that per-device licensing is an obsolete model, so Microsoft should really enable BYOD by allowing per-user licensing, at least for Enterprise Agreements. However, since that isn’t going to happen anytime soon, sourcing professionals need to be able to navigate the per-device rules. Here’s as simple an overview as I can create:

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KANA To Acquire Sword — Gets Serious About Dynamic Case Management Market

KANA Software is acquiring Sword Ciboodle — a Scottish case management and BPM company and a strong performer in Forrester's 2011 Wave™ on dynamic case management. The Ciboodle platform has a strong presence in the service request area of case management and scored particularly well in the application development, automation, and event management criteria. It also proved you can build best-in-class software while headquartered in a Scottish castle.

The acquisition makes a lot of sense. Both companies circle around the customer service area — with KANA focusing on the self-service channel with advanced email and knowledge strategies that leverage the social channel, and Voice of the Customer text analytics. All with the goal to reduce service costs by having customers help themselves — without going crazy in the process. But KANA had very little in contact centers themselves. Sword plugs this gap with over 50 customers in contact centers that use BPM and case management to provide a process layer on top of systems — where green screens are not uncommon. But Sword had virtually nothing for the email and self-service channels.

Together the acquisition will free up KANA's R&D. Instead of beefing up core BPM and case engines, and internal enterprise social capabilities, it can now focus on mobile apps and enhancing overall outside in "listening" capabilities. Geographically the acquisition helps as well. KANA was 70 percent North American, but with the addition of Euro-centric Sword is now closer to a 50/50 split between North America and Europe, the Middle East, and Africa (EMEA).

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SingTel Launches PowerON Compute In Hong Kong — A Sign Of Things To Come

On July 11, 2012, SingTel launched its PowerON Compute cloud service in Hong Kong. While certainly interesting on its own, I believe this announcement is particularly noteworthy as a harbinger of things to come.

Some key points to consider:

  • As a hybrid offering, PowerON Compute is a dynamic infrastructure services solution hosted in SingTel’s data centers in Singapore, Australia, and now Hong Kong. The computing resources (e.g., CPU, memory, storage) can be accessed either via a public Internet connection or a private secured network.
  • This announcement confirms the findings of my February 2012 report, “Sizing the Cloud Markets in Asia Pacific”: that market demand for cloud-based computing resources in Asia Pacific (AP) will rapidly shift from infrastructure-as-a-service (IaaS) to dynamic infrastructure services.
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Our Forrester Wave™: How The Top 18 CRM Suite Customer Service Vendors Stack Up

During the past five years, the customer service capabilities of CRM suite solutions have matured as vendors have focused on solidifying the foundational building blocks of customer support capabilities. Vendors have folded new technologies such as social computing, business process management, decisioning, business intelligence, and mobility into their solutions to allow organizations to offer more-personalized customer service experiences. This maturation makes it, in a way, increasingly challenging to be confident of your technology choice. In The Forrester Wave™: CRM Suite Customer Service Solutions, Q3 2012, we pinpoint the strengths of 18 leading vendors. Here are some of our key findings:

  • Oracle Siebel CRM, salesforce.com, SAP CRM, and Microsoft battle for the lead. Although Oracle Seibel CRM and SAP CRM are better suited for large customer service deployments that demand high levels of customization and integration and salesforce.com and Microsoft Dynamics CRM offer faster deployment times with a greater ease of use, you have to dig deep to find differences in their core customer service capabilities.
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Getting A Service Catalog: So Much More Than Buying A Tool!

I’ve been meaning to write about service catalog for a year now but I’ve just not had the bandwidth. It’s a common subject for Forrester client inquiries, mainly for my colleague Eveline Oehrlich who has several formal service catalog management outputs scheduled for 2012. Undertaking a recent service catalog webinar with ServiceNow, however, made me realize that I had already created the content for a quick service catalog blog. Hopefully it’s a blog that will help many learn from the service catalog mistakes of others.

What’s the big issue with service catalogs?

Service catalogs (or more importantly service catalog management) really hit the mainstream with ITIL v3 (introduced in June 2007) based on real world use of early service catalogs. So they are nothing new. However, many organizations struggle to start (and finish) service catalog initiatives AND to realize the anticipated benefits. The answer for many lies in that last sentence – they need more than “service catalog initiatives.”

As an aside, I often ask attendees of my presentations: “who has a service catalog?”, “who is planning a service catalog?”, and “who feels they have realized the anticipated benefits from deploying a service catalog?” While the answers to the first two questions can vary, the answer to the third is pretty consistent – organizations are consistently failing to realize the expected benefits from their service catalog initiatives.

So what goes wrong?

In my experience there are four key issues

  1. It’s often seen as a technology project … “let’s buy a service catalog tool” rather than introducing service catalog management and enabling technology.
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Workforce Technology Assessment Is Really Workforce Behavioral Science . . .

Richard H. Thaler, professor of economics and occasional writer for The New York Times, wrote on Sunday about how he and other behavioral scientists are helping the UK government use behavioral data to form better policies. See their "Test, Adapt, Learn: Developing Public Policy with Randomised Controlled Trials"  paper for more details.

Thaler has created and cites two principles that help policy makers create good policies that work for normal people:

  • "If you want to encourage some activity, make it easy."
  • "You can't make evidence-based policy decisions without evidence."
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