Now that the media hype of 2013 has settled . . . somewhat, 2014 will be a pivotal year in which we see small, tangible steps towards reality. Below are a few trends and commentary on what we’re seeing in the market:
1. Ecosystem components begin to marry. Investments, acquisitions, partnerships, and new developments will focus around unifying printers, software, and services for seamless 3D printing experiences. For example, Adobe recently announced direct integration with MakerBot and Shapeways to close the gap between 3D modeling tools and what printers need to physically produce objects. Other major software vendors like Autodesk will play an evangelist role in bringing ecosystem players together to enable interoperability across proprietary platforms.
2. New startups stretch our imaginations of business model disruption. 3D printing is a catalyst for rethinking inefficient analog processes. Startup SOLS aims to disrupt the entire orthotics value chain with an end-to-end digital service for custom shoe insoles. Customers scan a 3D model of their feet, input data on weight, lifestyle, and activity patterns, and send to print.
According to recent Business Technographics data, half of US enterprise technology management professionals report that there is 1.) no way to gain a single view of status and availability across their portfolio of cloud services, 2.) that they don’t have a clear way to assess the risk of using a third-party public as-a-service offering, and/or 3.) that they have no way to manage how providers handle their data.
An interesting debate is ensuing regarding how to best protect cloud data, given the market landscape. So far two modalities are emerging:
·A. Inserting in-line encryption between the enterprise and the SaaS provider that encrypts and/or tokenizes all data before it goes to the cloud to ensure safety interoperating within public cloud systems.
·B. The human-firewall model, in which IT closely monitors activity with context/content analytics and anomaly detection tools.
The truth lies somewhere between the two. By carefully applying Forrester’s data security and control framework, clients should incrementally encrypt data deemed sensitive to compliance or regulation, such as credit card and Social Security numbers, and closely monitor all activity across users and cloud applications.
The next generation of product development will require wholesale change to the types of skills companies need. As my colleague James Staten recently wrote, an earthquake in Silicon Valley is turning every company into a software vendor. It is this notion, that every company becomes an ISV, that will profoundly change the nature of business, and in particular product development:
Software, and customers interaction with that software, now defines companies and their brands.
Developing software-enabled products requires sophisticated technology and architectural design skills. This presents tremendous challenges — even more so for companies for whom technology is not in their DNA.
Companies must look in the mirror and evaluate if they currently have the skills and expertise to navigate this new environment. In this new world where customers interact with you through software, do you have the skills to develop products and services which will create intense and enjoyable customer experiences?
In my February 2014 report: Left–Shift Technology Monitoring For Success In The Age Of The Customer I explore what the near future will bring for technology monitoring approaches and solutions. Today, for the typical I&O organization, successful technology or service delivery monitoring focuses on two main areas. Firstly, availability, so ensuring the technology underpinning business services is up and available when needed and secondly, performance, so making sure that technology utilized (applications and associated workloads) is fast enough for the business service it supports.
There is a major problem with this approach though. As the famous author Harper Lee stated “We know all men are not created equal” and the same can be said about your customers and employees – they are not all equal and the rapid pace of consumer technology innovation in areas such as mobile means that they will utilize technology in different ways to support productivity or to engage with your enterprise as a customer. Our relationship with technology is changing rapidly. It is becoming more intimate and personal, meaning that datacenter centric monitoring approaches that focus on availability and performance alone, while still essential, are only the beginning of what is required for a holistic technology monitoring strategy.
So you need some work done that you’ve never had done before or you need to buy something you’ve never bought before. What should you pay? That can be a tough question. What seems reasonable? Sometimes we set arbitrary rules. It’s OK if it’s under $50 or under $100. But that’s just a reassurance that you’re not getting ripped off too badly. Certainly the best way to avoid that outcome is to know how much that service or thing is worth, or at least know what others have paid for the same thing.
Fortunately now, in the age of the customer, that’s easier to find out. Price information for most consumer goods is easier to come by, making the buying process more efficient. But what about governments? We’ve all heard about the $600 toilet seat or the $400 hammer. Stories of government spending excess and mismanagement abound. Some are urban legends or misrepresentations. Others have legs — such as the recent reports of Boeing overcharging the US Army. While these incidents are likely not things of the past, open data initiatives have made significant progress in exposing spending data and improving transparency. Citizens can visit sites such as USAspending.gov for US federal government spending or "Where Does My Money Go?" for details on UK national government spending, and most large cities publish spending as well.
Macro trends in technology and shifting customer behavior are giving rise to the connected business — which is not defined by technology but is rather a new style of doing business. CIOs will be responsible for introducing technology solutions that help break down silos, boost cross-team collaboration, drive the end-to-end customer experience, and engage more deeply with customers. In order to succeed, CIOs must go beyond technology enablement and support organizational and cultural transformation.
With Jeroen Tas, one of the most renowned technology visionaries in Europe, as its CIO, Philips made a number of strategic decisions to transform itself into a connected business. Forrester believes that CIOs should familiarize themselves with Philips’ strategic, operational, and cultural transformation and learn from it, as Philips offers CIOs valuable lessons in planning the transition to a connected business:
Philips embraces digital propositions at the expense of standalone products. Philips maps out customer journeys and ensures that its products turn into plug-ins for broader digital propositions. The firm connects all of its propositions through data, communities, and collaboration, allowing it to understand who the customers are and how they use products. Philips decides how it needs to develop its portfolio based on these customer journey maps, opening up new business models.
Interdisciplinary teams help open up new revenue streams. The old model — all marketing people sitting together, all IT people sitting together, all supply-chain people sitting together — is outdated. Interdisciplinary teams force people to speak each other’s language. At Philips, interdisciplinary teams have also resulted in much higher job satisfaction.
Asia Pacific firms are gradually beginning to understand how important big data is for responding to rising customer expectations and becoming customer-obsessed to gain a competitive edge in the age of the customer. Data from our Forrsights Budgets And Priorities Survey, Q4 2013 shows that 40% of organizations across Asia Pacific expect to increase their spending on big data solutions in 2014.
In addition to traditional structured data (from ERP and other core transactional systems), organizations are increasing seeking insight from unstructured data originating in both internal (IM, email) and external (social networks, sensors) sources to enhance the business value of data. But these initiatives pose a significant challenge to security and risk professionals:
Protecting sensitive data from fraudsters. Today’s fraudsters are active both inside and outside of firms, working to steal business-critical data. Inadequately secured and poorly controlled big data environments can potentially make the job of these malicious actors easier by reducing the number of systems or entry points that they must compromise in order to steal the data they need.For example, the personal data of 20 million South Koreans (40% of the country’s population) was stolen by a contract worker at the Korea Credit Bureau.
Ahead of the publication of my full report in mid-April, I wanted to follow on from my recent blog post and expand on the topic of cloud adoption in the Asia Pacific (AP) banking sector. Despite some views to the contrary, all AP banks will ultimately leverage cloud-based services and capabilities; most already do. The real challenge is mapping workloads, processes, and data to the various flavors of cloud approaches — in other words, it’s still a portfolio management exercise.
Legacy application architectures and inflexible software licensing practices will certainly influence, and potentially hinder, cloud adoption. But while banking regulations will continue to heavily influence cloud strategies, they don’t forbid them. Senior technology and business decision-makers in the AP banking sector should therefore consider the following: