How To Define And Track The Right Sales Metrics

As result of “big data” mania, there is an explosion of interest in business intelligence solutions and advanced analytics techniques. In particular, organizations of all sizes want to sharpen their ability to track the health of customer relationship management (CRM) business processes. A common question that I get from my clients is: "What are the best sales metrics that we should track, and how do we do it?"

Recently, my colleague Boris Evelson and I responded to an inquiry on this topic. Our answer is summarized below.

Question:

"How do we set up BI dashboards for a sales-focused company? We currently have Cognos, IBI, and various cubes around a 6 (+) year old Teradata warehouse. We are upgrading our Teradata to its latest technology and have purchased IBI's BI suite to use in conjunction. Our focus is on sales -- How did other organizations start out? We would like to know what works best for different roles from the CEO down to an inside sales rep?"

Answer:

We believe the answer to your question relies in adopting best practices around analytical sales performance management. You should take a top-down approach that has five steps:

1.     First, define the overall sales strategy.

2.     Then, identify goals and objectives that you need to achieve in order to make your sales strategy successful.

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Infosys Wins $126 Million Deal From India Post

 

Infosys recently won a financial services systems integration deal from the Department of Post in the Ministry of Communications and IT of India worth INR 700 crore (US$126 million). In 2010, India’s Cabinet Committee on Economic Affairs approved India Post’s “IT modernization” project, which was divided into eight separate contracts worth a total of $337 million. With this deal, Infosys has won one of these eight contracts.

According to the terms of the contract, Infosys will commission both hardware and software – Intellectual Property (Finacle Core Banking and McCamish Insurance products) over India Post’s approximately 25,000 departmental offices over a period of 24 months. The contract, which is valid for seven years, includes managed services, application support, and infrastructure operations. More details about the deal can be found here.

Let’s look at what this deal means to Infosys and to India Post:

Infosys Gets More Business — But Also Some Risk

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Learn How To Be Service-Driven By Watching The Clouds: Case Study Preview

I’ve been speaking to more and more clients lately who are not just saving money with cloud computing — they’re using the principles of the cloud to completely transform how they source, build, and deliver all IT services. Savvy I&O leaders should look beyond the per-hour savings promised by the cloud to the core tenets of cloud computing itself. How do the public clouds do it? Why can’t you?

Well, you can. You can transform your IT operating model from that of widget-provider to a true service-oriented business partner. Forrester writes extensively about how to make the IT to BT (business technology) transition. I recently spoke at length with the IT management team at Commonwealth Bank of Australia (CBA) about their multi-year IT transformation to what they call “everything-as-a-service.” I was put in touch with them by one of their primary suppliers, cloud service management and automation vendor ServiceMesh.

We’ll be publishing a complete case study soon, but I wanted to share some of the basics here because they outline a strategy anyone can achieve, regardless of your current level of cloud maturity. The bank started by establishing six core tenets to be enforced across all I&O services moving forward, whether hosted internally or externally. These guiding principles neatly summarize the core value dimensions of cloud computing itself:

  • Pay as you go. Business customers only pay for products and services actually used, on a metered, charge-back basis, under flexible service agreements, as opposed to fixed-term contracts.
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Cloud Computing By The Numbers: Understanding The True Cost Of Cloud Services

With VMworld in full swing this week and Microsoft’s cloud-centered Windows Server 2012 launching soon after, your options for technology to build and deploy enterprise clouds is about to expand significantly. Meanwhile, Amazon continues to drop prices faster than your local Wal-Mart, introduce new cloud compute and storage services almost monthly, and has already gobbled up a trillion objects in S3. Is it time to start moving your workloads to the cloud?

Forrsights surveys show that companies are indeed moving to the cloud, primarily for speed and lower costs — but are the savings really there? The answer might not be obvious. Are you heavily virtualized already? Have you moved up the virtualization value chain beyond server consolidation to using virtual machines for better disaster recovery, less downtime, automated configuration management, and the like? Do you have a virtual-first policy and actively share resources across business units? If you run a mature virtual environment today, your internal infrastructure costs might already be competitive with the cloud.

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Delivering A Unified Digital Experience

Every day our clients flood us with inquiries on what to do about mobile and social software and smartphone and tablet adoption—not just as it pertains to their customers but to their employees too. Many firms seem to be scrambling to develop their mobile application strategy, spinning up new teams or working with outside agencies in a rush to introduce their own “killer app” or deploy some mobile capability on their CRM platforms. Smartphones and tablets are just the beginning of an explosion of digital touchpoints we will use to engage with each other, commercial enterprises, and public sector institutions. Gaming platforms, smart TVs, goggles, “magical mirrors”—there’s no end in sight.

 
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What Does R Integration Really Mean For BI Platforms?

I just received yet another call from a reporter asking me to comment on yet another BI vendor announcing R integration. All leading BI vendors are embedding/integrating with R these days, so I was not sure what was really new in the announcement. I guess the real question is the level of integration. For example:

  • Since R is a scripting language, does a BI vendor provide point-and-click GUI to generate R code?
  • Can R routines leverage and take advantage of all of the BI metadata (data structures, definitions, etc.) without having to redefine it again just for R?
  • How easily can the output from R calculations (scores, rankings) be embedded in the BI reports and dashboards? Do the new scores just become automagically available for BI reports, or does somebody need to add them to BI data stores and metadata?
  • Can the BI vendor import/export R models based on PMML?
  • Is it a general R integration, or are there prebuilt vertical (industry specific) or domain (finance, HR, supply chain, risk, etc) metrics as part of a solution?
  • What server are R models executed in? Reporting server? Database server? Their own server?
  • Then there's the whole business of model design, management, and execution, which is usually the realm of advanced analytics platforms. How much of these capabilities does the BI vendor provide?

Did I get that right? Any other features/capabilities that really distinguish one BI/R integration from another? Really interested in hearing your comments.

Consolidation Of The Chinese IT Services Market: The Race To Delivery Maturity

Gene Cao, Frederic Giron, Michael Barnes

On August 10, rival IT outsourcers hiSoft and VanceInfo announced their intention to merge. The resulting entity will comprise a much bigger organization, with more than 20,000 employees mainly located in China, making it one of the largest IT services vendors in the country. In another recent example of market consolidation, BeyondSoft announced on August 18 that it would acquire six Chinese and Japanese subsidiaries of Achievo, a US-based offshore IT services provider.

Over the next 18 months, we believe that IT services vendors in China will face increasing price and margin pressure driven by rapidly increasing local labor costs. The days of relying on low labor costs to drive business in the US, Europe, and Japan are numbered. Chinese IT services vendors are being forced to evolve from a cost-based to a business value-based approach. As a result, we expect the Chinese IT services market to consolidate over the next 18 to 24 months as vendors seek ways to improve their organizational and operational maturity.

The challenges hiSoft and VanceInfo will face after the merger are indicative of broader market pressures, including:

  • An increased capacity to better compete in large deals. As separate entities, hiSoft and VanceInfo both faced significant challenges when bidding on large-scale outsourcing projects with a total contract value of more than $50 million. With this merger, we expect the newly formed organization to gain better access to these deals as they become more visible to MNCs. However, the new company will still be small by Indian offshore standards.
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Orange Business Services Underlines Its Global Capabilities At Its 2012 Analyst Event

Dan Bieler, Bryan Wang, Pascal Matzke, Jennifer Belissent

ORANGE held its annual analyst day in Paris recently. There were no major announcements, but we made several observations:

  • ORANGE is one of the few carriers with true delivery capabilities. Its global footprint is a real advantage vis-a-vis carrier competitors, in particular in Africa and Asia. Vale, the Brazilian metals and mining corporation, presented a customer case study in which Vale emphasized the importance of ORANGE’s global network infrastructure for its decision to go with ORANGE as UCC and network provider. Its global reach positions ORANGE well to address the opportunity in emerging markets, both for Western MNCs going into emerging markets and also to address intra-regional business in Africa and Asia. Another customer case study with the Chinese online retailer 360buy, focusing on a contact center solution, demonstrated ORANGE’s ability to win against local competitors in Asia.
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Asia Pacific CIOs Learn Similar Lessons on the Path to Business Technology

 

Forrester’s Asia Pacific team is working at a fast and furious pace preparing for our CIO Summits in Singapore, Sydney and New Delhi throughout September.  As the content champion for the event, I have been working with about a dozen regional CIO speakers to prepare presentations on their journeys from IT to Business Technology, which is the focus of our summits.

Our distinguished line-up of CIO speakers provides an insightful cross-section of the countries, cultures and industries they span.  As they all embark on their respective BT journeys, it has become clear that they must each chart their own course and sequence activities in a way that makes sense for their unique circumstances.  Nevertheless, across these varied landscapes I have identified three key themes that are critical to the BT journeys regional CIOs will be forced to make:

  • Taking Care of the Basics: Although innovation and the power of BT are alluring, the BT journey starts with some basic plumbing.  All of our CIO speakers have emphasized that their BT journeys wouldn’t have taken the first step without first ensuring they were doing the basic things well.  They cannot convince the CEO that they deserve a seat at the table of business strategy without showing they know how to handle the basics first. In our Singapore Summit, Krishnan Narayanan, Managing Director and Head of IT at UBS will share his experience and provide recommendations for setting a solid foundation to enable the BT transition.
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The 4 P's Of Customer Service

We all know the 4 P’s of marketing – product, price, placement, promotion – that dictate the success of your marketing initiative. But, what about customer service? To me, 4 different P’s apply, which are:

  • Pain – Or more specifically, lack of pain. Customers want effortless service from the touchpoint (web, tablet, in person, etc.) and communication channel of their choice (ex. voice, chat, email, social). They want to receive an accurate, relevant, and complete answer to their question upon first contact with a company. They want to be able to start a conversation on one touchpoint or channel and continue it on another without having to repeat themselves. Forrester data backs this up: 66% of customers say that valuing their time is the most important thing a company can do to provide good service. 45% of US online adults will abandon their online purchase if they can't find a quick answer to their question.
  • Personalization – Customers don’t want a “one size fits all” service experience. They want the interaction to be tailored to the products and services that they have purchased, to their specific customer tier, to their past interaction history, and to their specific issue at hand.
  • Productivity – Customer service organizations must pragmatically walk the balance between customer satisfaction and cost. A customer service experience has to be reliable and efficient. This is a service experience that gets positive customer satisfaction ratings and that can also be delivered at a cost that makes sense to the business.
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