Government reforms will not positively affect IT spending until 2014. Forrester estimates that India’s IT purchases will grow by 9.5% in local currency in 2013. The Indian government is taking steps to reform initiatives and stimulate the economy in the wake of faltering economic growth caused by inflation as well as corruption, political gridlock, and lack of business investment. However, Forrester expects corporate spending to remain cautious ahead of parliamentary elections scheduled for 2014.
Increasing customer expectations will drive software spending. 94% of the Indian organizations surveyed in our Forrsights Budgets and Priorities Survey, Q2 2012 cited the need to improve their product and services capabilities to meet increasing customer expectations as their top business priority. We therefore expect increased investments in CRM, customer communications management (email marketing software, SMS communication software, etc.), and business process management tool solutions.
A number of Forrester analysts from the Asia Pacific region attended the recent SAP analyst event in Singapore. Meetings with SAP global and regional executives and a large number of detailed breakout sessions over the 1½-day event all clearly indicate that SAP is continuing to try and reposition itself as a true generalized application platform player.
At the core of (almost all) initiatives is the HANA in-memory database technology. Whatever the problem, HANA will solve it (said with tongue planted very firmly in cheek). While the technology clearly has immediate performance benefits, particularly for existing SAP clients, net-new customers will likely need to compare the value of SAP’s offerings with others much more seriously.
I needed to order a tool from Amazon.com recently, and I was greeted with a “New Year, New You” panel linking me to whole host of exercise equipment targeted to my lifestyle. Same old New Year’s resolution song-n-dance, right? Well, the idea of self-improvement in 2013 got me thinking: We keep telling the SVM world that they need to stay relevant in a Business Technology world, so we’re now showcasing specific self-improvement tools to help you feel empowered stepping into 2013. In our recent “SVM Activities, Roles, And Skills Are Evolving” report, we have outlined the root rationale for SVM’s evolution and our prescription on how to move forward:
Roles are becoming more complex. As technology spending habits change, and spending ripples outward from IT to the business, classic SVM roles (e.g., sourcing; contracts; vendor management) are broadening and deepening to include skills related to strategy, governance, and business value (see top column labels).
These roles require new skill sets and certifications. In order to fill out these new roles, SVM managers should encourage staff to grow their skill set with training and certifications in emerging categories including innovation, diversity, eco-friendly/green, globalization, and strategy (see left-hand row labels). There are a host of organizations and authoring bodies that can help you demonstrate credibility in SVM emerging impact areas.
Back in the day when “network” meant “telephone,” AT&T either directly or indirectly controlled virtually the whole thing. Bell Laboratories served as the R&D arm of the organization, developing the equipment that Western Electric would produce for AT&T. In addition to the very practical work in things like insulators for cables (which are a big deal when the cable is running under the Atlantic Ocean), there was a small group who conducted the basic work that led to discoveries such as the transistor, practical lasers, charge coupled devices (CCDs), and information theory. Bell Labs built the first communication satellites – Telstar.
While it could be argued that AT&T did not reap all of the benefits possible from its inventions, the way that Bell Labs operated presents some useful lessons for organizations looking to improve their innovative capabilities:
For the last four years, Forrester has run a longitudinal study on the “state of EA” — tracking the changes in focus, priorities, etc., since 2008. Our clients use it to get a sense of whether their progress and plans for EA is on par with their peers.
Based on the year-over-year comparison of the data in the upcoming “State of EA: 2013” document, as well as some anecdotal evidence I’m seeing in client interactions, I’ve got five predictions about what I expect to see happen with EA practices this year:
They’re going to kill off the usual EA metrics. They’ll do it even though technically they’re not supposed to (and they may not realize they’re even doing it). Our data shows that standard EA metrics (maturity, perception, value, etc.) are less and less likely to actually be used, even though they’re an extremely popular topic of conversation. A recent experience of mine confirmed that even when trapped in a room for a few hours, not even industry peers can agree on a set of common metrics. Powerful metrics are too company- and initiative-specific to standardize. And in the end, the usual metrics might become irrelevant because . . .
The Forrester team of Asia Pacific (AP) analysts has just published its 2013 IT industry predictions. Below is a sneak peek at some key regional trends I wanted to highlight.
2013 will be a transformative year for IT adoption in AP, as multiple IT trends converge to drive industry disruptions and help spur renewed growth in IT spending. Forrester expects IT spending in AP to rebound in 2013, with regionwide growth of 4% — rising to 8% when the large but slow-growing Japan market is excluded. While India IT spending growth will remain sluggish, the 2012 economic slowdown in China will be short-lived as government stimulus policies take effect in 2013. The Australia, New Zealand, and ASEAN markets will all remain resilient, with Vietnam, Indonesia, and the Philippines leading the way in IT spending growth.
Below are some other key predictions shaping the Asia Pacific IT industry in 2013:
End user computing strategies will be limited to mobile device management (MDM). AP organizations are feeling the pressure to deliver applications and services across multiple devices, including traditional desktops/laptops, smartphones, and tablets. But lack of skills will hinder bring-your-own-technology (BYOT) policies, which will remain limited to MDM, including basic device control and security/identity management.
Before we get too far along into 2013, I’d like to take a moment to reflect back on the events of 2012. Thanks to our friends at CyberFactors*, this is what we saw:
1,468 (publicly reported) incidents. This includes everything from stolen laptops to external hacks to third party partners mishandling data to employees accidentally disclosing data via email.
274,129,444 (known) records compromised. In the 608 cases where there was a record count reported, this was the total count.
Types of data lost/compromised
Personally identifiable information (PII) was compromised in 53% of cases. This also includes credit card or bank account information, as well as medical or health insurance information.
Company confidential information (CCI) was compromised in 4% of cases. This includes things like proprietary intellectual property (IP), compensation data, business plans, corporate financial data, and information subject to a non-disclosure agreement with a third party. These types of incidents may not always be publicly reported, assuming that organizations are even aware that it has occurred or is happening. IP is a valuable asset, and must be protected.
Governmental information was compromised in 42% of cases. This includes things like address, voting data, driver’s license numbers, state or Federal tax IDs, Social Security numbers, and passport information.
Over the past 20 years, I’ve been involved in many process initiatives, working closely with business and IT execs. And I’ve seen some efforts work while others go south. But it’s only this year that I so clearly understood why some organizations zoom ahead in process transformation while others stumble, go in circles, or abandon the chase. My own big “ah-ha” moment came at a big business process excellence event in 2012, when I looked across an audience of 500-600 process practitioners and realized there were very, very few CIOs, IT leaders, or even technologists in attendance. Then I remembered some past technology events when my references to process technologies, techniques, or methodologies drew blank stares. Why was that? It was because few process experts were in the room! That made me start wondering — what’s wrong with this picture?
More and more senior execs are embarking on business process transformation. These new changes are catalyzed by many things: new business models made imperative by a new market leader, new threats or opportunities because of rapid changes in technology, a much more customer-centric business strategy, aggressive global expansion plans, or something else. As a result, many organizations are working to become process-driven by 2020.