To succeed in the Age of the Customer, business and IT leaders that that support “front-office” business processes cannot afford failed technology initiatives. CRM technology projects can be costly, affect many employees within the organization, and can suffer from a lack of vendor support.
To understand the types and prevalence of the pitfalls that you need to navigate, I recently did a survey of CRM practioners. Working in partnership with CustomerThink, Forrester collected opinions from over 500 individuals who had been involved in a CRM technology project as a business professional in Sales, Marketing, Customer Service, or IT within the last 36 months. Respondents evaluated 88 project risk factors, in four categories: strategy (business goals and objectives); process (procedures and business rules); technology (applications and infrastructure); and, people (organizational structure, skills and incentives).
I will report our findings in more detail in up-coming blogs, but here are some initial insights.
To achieve CRM technology deployment success requires a balanced approach. Focus on all four fundamental success factors:
■ Process. Nearly half (44%) agreed their CRM projects faced problems grounded in: poor or insufficient definition of business requirements; inadequate business process designs; and, the need to customize solutions to fit unique organizational requirements.
■ People. More than two-fifths (42%) agreed that their problems were "people" issues: such as slow user adoption; inadequate attention paid to change management and training; and, difficulties in aligning the organizational culture with new ways of working.
The US Bureau of Economic Analysis released its preliminary report on second quarter 2013 US GDP, along with both major revisions to US economic data over the past 50 years, and minor revisions to the data on US business investment in information technology goods and services. Here are my key takeaways from the report, and its implications for the US tech market.
US real GDP growth in Q2 2013 came in better than expected. The 1.7% growth at an annual rate from Q1 2013 was in line with our projection of 1.9%, but better than what many economists had been forecasting. Growth rates in Q4 2012 and Q1 2013 were revised down to 0.1% and 1.1%, respectively, from the earlier 0.4% and 2.5%. These revisions indicate that the end of the payroll tax reductions, the higher tax rates for high-income people, and the Federal budget cuts from sequester did take a toll on economic growth, with government consumption declining in Q4 2012, Q1 2013, and Q2 2013, and business investment in factories and offices falling in Q1 2013. But consumer spending has been solid, with growth of 1.8% in Q2 2013, 2.3% in Q1 2013, and 1.7% in Q2 2013. Business investment in equipment, which softened to just 1.6% growth in Q1 2013, improved to 6.8% growth in Q2 2013. And housing continues to be a growth engine for the US economy, with double digit growth rates in residential investment in the past four quarters, and improving home prices boosting consumer confidence and spending.
Kofax continues its acquisition rampage with a cash purchase of Kapow. I came across Kofax a few years ago while doing the research for "Take A Process View Of Content Integration." Apparently Kofax has taken the "process view." The idea behind that piece was that enterprises had so many diverse content stores that they needed to view conversion and migration of unstructured content as an internal competency.
But while content integration can reduce infrastructure costs and license fees, the real value is from improving business processes by linking content to business process management (BPM) and dynamic case management systems to reduce cycle time and improve compliance, customer support, and decision-making. These projects can be complex, difficult, and challenging, but Kofax correctly sees this as a large opportunity. I do as well.
Another Kapow capability is to scrape websites and create consolidated views. For example,customer service reps often switch between apps in a clumsy and inefficient manner while the customer is on hold. In some cases, ECI software should grab the needed content behind the scenes and present it in a unified way. Kapow Technologies' content integration solution works like a robot to extract, transform, and load content from Web-based apps to consolidated views. I interviewed one large telecommunications company that used Kapow's robot for customer service business processes to eliminate task switching and repetitive tasks. According to the company:
It should come as no surprise that regulators and organizations alike struggle to set and enforce guidelines for social media activity. It’s not just that the rise of social media is rapidly transforming the way we interact with people, customers, and brands; but also how many ways this transformation is happening.
The core issue is that social media alters the way we as individuals share who we are, merging our roles as people, professionals, and consumers. As we share more of ourselves on a growing number of social networks, questions quickly surface:
How frequently and on what social networks should we post?
When should we present ourselves in our professional role versus sharing our personal opinions?
Is it okay to be social media friends with co-workers, clients, or your boss?
These are complicated matters for individuals, and absolute conundrums for organizations concerned with how employees behave and interact with others in, and outside of, the workplace. Their questions are even more complicated:
Can organizations dictate how their employees use social media?
Can they monitor social media conversations or use it to learn more about prospective job applicants?
When does the personal connection allowed by social media tools cross the line from business to personal?
Sometimes getting the data quality right is just hard, if not impossible. Even after implementing data quality tools, acquiring third-party data feeds, and implementing data steward remediation processes, often the business is still not satisfied with the quality of the data. Data is still missing and considered old or irrelevant. For example: Insurance companies want access to construction data to improve catastrophe modeling. Food chains need to incorporate drop-off bays and instructions for outlets in shopping malls and plazas to get food supplies to the prep tables. Global companies need to validate address information in developing countries that have incomplete or fast-changing postal directories for logistics. What it takes to complete the data and improve it has now entered the realm of hands-on processes.
Crowdflower says they have the answer to the data challenges listed above. It has a model of combining a crowdsourcing model and data stewardship platform to manage the last mile in data quality. The crowd is a vast network of people around the globe that are notified of data quality tasks through a data stewardship platform. If they can help with the data quality need within the time period requester, the contributor accepts the task and get to work. The crowd can use all resources and channels available to them to complete tasks such as web searches, visits, and phone inquiries. Quality control is performed to validate crowdsourced data and improvements. If an organization has more data quality tasks, machine learning is applied to analyze and optimize crowd sourcing based on the scores and results of contributors.
Local governments – cities, counties, states – are investing in technology. Why? Well, a number of factors drive local governments to take a smarter approach to their administration and development: limited budgets, increasing citizen demands, competition for investment and jobs etc. Balancing competing demands on a shoestring budget isn't easy. City leaders are looking for ways to sustainably transformation city functions such as transportation, healthcare, public safety, utilities, or governance, and in aggregate the city as a whole. And, they increasingly value technology as a means to such a transformation.
Fortunately, cities do not have to undertake this journey on their own, and they don’t expect to. In fact, according to Forrester’s Forrsights Budgets and Priorities Tracker Survey, local governments are more likely to expect increases in IT technical consulting than other industries (and more than governments as a whole): 38% of local government IT budget decision-makers expected a 5-10% increase in consulting spend and 2% expected an increase of more than 10%. Local governments are turning to the experts to help them figure out what this “smart city” thing means for them.
Tata Communications has emerged from its role as an incumbent Indian service provider to become a globally recognized provider of network connectivity services such as MPLS, Ethernet and IP transit as well as managed hosting in data centers, voice, data, and video.
Tata Communications is starting to measure up to global carriers. I’ve received a number of inquiries on Tata Communications’ regional and global carrier wholesale strategy, as well as its market focus. This increased interest among Forrester clients is a sign that Tata Communications is getting some things right in its carrier business, as the aforementioned global MPLS report makes clear. Its continual network and cable investments are paying off for the service provider.
With the employer mandate delays being the latest setback to U.S. president Obama's push for national healthcare, it's worth looking at how other countries are successfully tackling the same problem. The United Kingdom has had nationalized healthcare for years, and one of the things that makes this effort so successful is its approach to data collaboration — something Forrester calls Adaptive Intelligence.
While the UK hasn't successfully moved into fully electronic health records, it has in place today a health records sharing system that lets its over 27,000 member organizations string together patient care information across providers, hospitals, and ministries, creating a more full and accurate picture of each patient, which results in better care. At the heart of this exchange is a central data sharing system called Spine. It's through Spine that all the National Health Service (NHS) member organizations connect their data sets for integration and analysis. The data-sharing model Spine creates has been integral in the creation of summary care records across providers, an electronic prescription service, and highly detailed patient care quality analysis. As we discussed in the Forrester report "Introducing Adaptive Intelligence," no one company can alone create an accurate picture of its customers or its business without collaborating on the data and analysis with other organizations who have complementary views that flesh out the picture.
I had a conversation recently with one of the top consumer antivirus companies in the world. What came out of this conversation was very intriguing. The conversation presented a vision into how mobility is shaping consumer views on security and how security of the home might be improved.
The vendor and I began by discussing the rapid growth that homes are seeing in the number of Internet-connected devices. An average person today has approximately five consumer devices connected to the Internet in their home, and the number is growing rapidly. For example, my home has the following devices connected today: