In my recently published report (SVM's New Stakeholder: Product Development) I argued that product development will become a crucial new stakeholder for sourcing and vendor management (SVM) professionals in the next few years. And we're already seeing some interesting indications that this is starting to happen. For example, I recently came across this job description: Manager, Product Development & Sourcing.
Look at some of the elements of the job description for this sourcing professional:
Manages the development process.
Partners with the design team.
Improves processes and increases efficiencies by partnering with design, merchant, color, and technical design teams.
The team and I have been testing a hypothesis for the past year while meeting with business and IT leaders in large enterprises, agencies, and smaller firms, and I'd like your input. My working hypothesis is this:
In this age of digital disruption and a society empowered by software-fueled technology, firms that can cultivate competencies in software development and delivery will establish competitive advantage, as they will be better equipped to meet and exceed the engagement and experience needs of their customers, employees, and constituencies.
In a separate blog post ("What A Romney Presidency Would Mean For the US Tech Market Outlook"), I analyze what I think would be the likely impact on the US tech market if Mitt Romney is elected President in November. In this post, I provide a similar analysis of the US tech market should Barack Obama be re-elected. As with my analysis of a Romney election, I start with the premise that elections only slightly move the needle on the general course and direction of tech market growth, at most shifting growth rates up or down one- to two-percentage points.
In that blog post, I pointed out that there are only minor differences between the Republican and Democratic platforms in terms of policies directly impacting the tech industry, and almost no differences in policy areas not addressed in the platforms, such as tech investment tax incentives. That means that the biggest impact of an Obama election on the tech sector will come from what that would mean in terms of tech demand – that is, how the economy would grow under an Obama Administration, and how government spending on tech might change.
Like the Republican platform, the Democratic platform is vague or ambiguous on many critical details of economic policy, especially in explaining how it would address federal budget deficits and entitlements spending. As the incumbent, Obama does have a track record, which we can use to make some predictions about his administration’s likely policies if he is re-elected. Here are the key tenets:
· Support for additional fiscal and monetary stimulus to boost economic growth.
With the US presidential election race entering the two-month sprint to election day, I think it is useful to speculate on what a Romney administration would mean for the US tech market (in another blog post, I analyze how a second Obama Administration would affect the tech market -- see "What An Obama Reelection Would Mean For the US Tech Market Outlook.")
To start, we should remember that US elections don’t have much of an effect on tech spending and purchases. Businesses and governments make tech buying decisions based on their own needs and funding resources, which elections affect only around the margins. I don’t expect this election to diverge from this historic pattern. Still, marginal tech decisions can mean the difference between a tech market that grows by 3% to 4% or one that grows at rates of 5% to 6%.
Arguably, mobile is currently the hottest trend driving both business and technology strategies for executives. If you need any additional evidence, just look at all of the enterprise buzz Apple has generated with the iPhone 5 launch. Unfortunately, today’s business and technology leaders continue to respond to the mobile opportunity with the wrong answers. Business leaders respond to mobile with, “Let’s build a really slick mobile app, put it up on iTunes and we’re done!” Technologists respond to mobile with, “We need a strong BYOD policy and to put device management tools in place!” Both of these responses completely overlook the fact that underlying legacy applications and business processes need optimizing for the mobile experience.
We run into examples of this “lipstick on a pig” approach to mobile all the time. In fact, I ran into a perfect example of this recently when I needed to order a pizza for my family after a very hectic Saturday afternoon. When I picked up my mobile phone to call the pizza delivery place, a light bulb went off over my head. Instead of dialing the pizza delivery company and waiting on hold for 15 minutes, why not download its mobile app in two minutes and order my pizza within another two minutes. I figured I could shave off ten minutes of wait time by simply downloading the pizza delivery company’s mobile app.
There is truth to the meme, “data is the new oil.” Data is the lifeblood of today's digital businesses, and for economic and even political gain, highly skilled cybercriminals are determined to steal it. Meanwhile, customers around the globe have become highly sensitive to how organizations track, use, and store their personal data, and it's very difficult for security pros to stay one step ahead of changing privacy laws and demands. Plus, as data volumes explode, it's becoming a herculean task to protect sensitive data and prevent privacy infringements (today we talk in petabytes, not terabytes).
Every day, vendors introduce a new product that claims to be the silver bullet to data security challenges. Consider that DLP remains one of the most popular search terms by security pros on Forrester.com. In the case of data security, there is no silver bullet. There is no way to solve the problem without a process framework that outlines how you go about discovering, classifying, analyzing, and then ultimately defending data. Forrester has created a framework to help security pros protect data – we call it the Data Security And Control Framework. If you take a framework approach, you will:
Quick review: iPhone launches in 2007. CIOs don't care. I perk up. 2008. Apple launches App Store and Exchange ActiveSync support. CIOs start to wake up. Kraft's Dave Dietrich uses iPhone to revitalize Kraft's technology culture. As a software developer, my spidey senses start tingling. 2009-10. Apple adds hardware encryption, hooks to device management suppliers like MobileIron and Good Technology and Boxtone, a hundred million customers, and oh yeah, CEOs start bringing Christmas iPads to work and asking for email support. 2011. Apple App Store really picks up steam. (Android does, too.) iPad at work reaches 67% of the installed base according to our global information worker survey of 10,000 of your employees. iPhone gets slimmer, and Apple sells more of them than ever.
Now it's 2012. Apple sells over half a billion iOS devices since 2007. Apple is the major go-to smartphone for CIOs coming off a BlackBerry addiction. Apple is the dominant supplier of business tablets. Microsoft introduces v8 of its Windows Phone OS (not so many of them sold yet) and announces a tablet. And as colleague Thomas Husson points out, Google lights up 1.3 million Android devices a day. And Apple launches iPhone 5 running iOS 6.
So what does this announcement mean for CIOs? I'd say, CIOs need to tune into popular culture and divine what's happening in the consumer market. Because whither goeth the consumer market goeth the business market. You heard it here. Here's what iPhone5 means for the enterprise:
· Firstly, there was still a good focus on sourcing and procurement in the Empower event-within-an-event. IBM has preserved Empower’s best quality (and that of Ariba Live and Zycus Horizon, btw), which is that there is always lots of trends and best practices content, and not too much product plugging. Most of the event was aimed at marketing, selling, and servicing, but there was plenty for sourcing attendees too. For example, there were keynotes from the CPOs of AB InBev, Conoco Philips, and IBM itself about their priorities and how they are addressing them.
· IBM leaders, including Craig Hayman, General Manager Industry Solutions, gave a clear and credible vision of Smarter Commerce. Hayman portrayed his Buy, Market, Sell, and Service quadrants as discrete offerings sharing common principles and technology, rather than an engineered stack that only works properly if you buy it all — best-of-breed complements to ERP, not a rival suite.
To the surprise of no one, Apple today announced its new iPhone 5. Given that the iPhone 5 is unlikely to solve the European debt crisis or bring peace to the Middle East, it won’t be surprising if we hear a resounding "meh" from Apple's critics, with them dinging the company for a paucity of innovation. Indeed, competitors like HTC and Nokia have already offered some of the features that Apple highlighted today, such as those for imaging. But Apple still outpaces the competition when it comes to the entire package — the new iPhone unites significant improvements in industrial design, imaging, audio, and connectivity, along with the wealth of new capabilities that iOS6 enables. Apple will sell a boatload of iPhones — especially now that both Verizon Wireless and Sprint will have an iPhone (the 8 GB iPhone 4) for consumers' favorite price: free.
But make no mistake, this is not about the iPhone 5 versus the Samsung Galaxy S III or the iPad versus the Kindle Fire HD; this is about customers' attachment to the larger ecosystems that those devices inhabit. Amazon, Apple, Google, and Microsoft all aim to translate customers' investments — of money, information, personalization, and social connections — into a gravitational field of loyalty so powerful that few customers will ever attain escape velocity. This market is still taking shape, but the iPhone 5 will markedly increase Apple's pull, already the strongest out there.
I hate looking at my AT&T Wireless bill each month, because it tallies up all my unused rollover minutes. Sure, it might be nice to know I have them just in case I decide to have a marathon long-distance conversation, but realistically, it's a reminder that I am overspending on talk time. Even worse is when it reminds me of the expiration date for those minutes. They are basically throwing my inefficiencies in my face. Thanks, AT&T. :(