Following the adage "a picture is worth a thousand words" we produced this infographic to support my keynote speech at the Technology Management Forum in Orlando (and the CMO CIO CX breakfast in Sydney). If you'd like to see the keynote, I'll be delivering it again at the London Technology Management Forum in June. Feel free to tweet and share the unedited graphic. (Click image to download a higher res PDF; also free to share unedited).
In the Cisco Collaboration Connection event for Asia Pacific early this week, I had the opportunity to try newly designed Cisco collaboration products, as well has have in-depth discussions with senior executives from Cisco. And I was also able to observe the response from the partners and customers I met from across APAC, including China, India, Singapore and Indonesia, and exchange my thoughts with them as well. I feel that the DNA of Cisco is changing, from technology-centric toward customer experience focused, starting with the collaboration business. Here is evidence beyond slogans on their Power Point slides.
Design. When people talk about the design of Cisco’s collaboration products, usually it would be with words like high-tech, standardized or professional, but seldom about fashionable design, beauty, simplicity, or ease of use – attributes typically used to describe the leading consumer electronic appliances from Apple or Samsung. Now, with the latest product announcements, it’s totally different, and Cisco has won several Red Dot industrial design awards in 2014.
The business press has come alive over the past few weeks as companies as diverse as Delta, Facebook, and Tesla have publicly declared that they want to own software development for key applications. What should catch your attention about these announcements is the types of software these firms want to control. Delta is acquiring the software IP and data associated with an application that affects 180 of its customer and flight operations systems. Facebook is building proprietary software to simplify interactions between its sales teams and the advertisers posting ads on the social networking site. And Tesla has developed its own enterprise resource management (ERP) and commerce platform that links the manufacturing history of a vehicle with important sales and customer support systems. Tesla's CIO Jay Vijayan, in describing his organization's system, sums up the sentiment behind many of these business decisions: "It helps the company move really fast."
Yesterday, Institutional Shareholder Services (ISS), a third-party advisor to Target Corp. investors, recommended ousting Target’s Audit Committee because they failed to do appropriate risk management, resulting in a breach of customer data. According to Twin Cities Business Magazine, ISS stated that “… in light of the company’s significant exposure to customer credit card information and online retailing, these committees should have been aware of, and more closely monitoring, the possibility of theft of sensitive information, especially since it involves shoppers and the communities in which the company operates, as well as the overall impact on brand reputation and brand value.” This suggests a fundamental lack of understanding of both the nature of the breach and who should be held responsible for the outcome.
First, let's understand what really happened here: Target updated their point of sale (POS) systems before the holiday season. There was a known vulnerability in those POS systems that let credit card data travel between the POS system and the register before it was encrypted and sent off to the clearinghouse for approval. Target’s technology team was warned of the vulnerability and DECIDED that the risk was worth accepting – not the board, not the auditors; it was the people involved in the project who accepted the risk of losing 70 million records. When departments accept that level of risk, they in essence, end the conversation. The audit committee and board of directors would be none the wiser. When was the last time you notified your board about how you were disposing of hard drives?
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Following some work for a client in oil field services around the most appropriate ERP solution, I’ve had some questions about the impact of IFRS on accounting for exploration and evaluation (E&E). In a nutshell, IFRS offers some opportunities for energy firms or joint ventures to capitalize E&E costs that they might have expensed under previous local or US GAAP policies.
Accounting policy analysts will doubtless tell you that, in terms of record-to-report processes, you’ve got to be sure to work out how to match each expense element to commercially viable reserves on a field-by-field basis. Unmatched costs have to be expensed. This can be quite challenging, especially for infrastructure or services shared across fields. The challenge is particularly acute when exploration is undertaken as a joint venture or where firms trade exploration blocks.
Forrester undertook some work for a European hydrocarbon firm that was involved in numerous joint ventures and which had a high level of activity in trading exploration blocks. We leveraged this research and found that meeting the firm’s business needs required the CIO to be involved early on in preparing for M&A activity.
Last month I attended Huawei’s annual Global Analyst Summit, for the requisite several days of mass presentations, executive meetings and tours that typically constitute such an event. Underneath my veneer of blasé cynicism, I was actually quite intrigued, since I really knew very little about Huawei. And what I did know was tainted by popular and persistent negatives – they were the ones who supposedly copied Cisco’s IP to get into the network business, and, until we got better acquainted with our own Federal Government’s little shenanigans, Huawei was the big bad boogie man who was going to spy on us with every piece of network equipment they installed.
Reality was quite a bit different. Ancient disputes about IP aside, I found a $40B technology powerhouse who is probably the least-known and understood company of its size in the world, and one which appears poised to pose major challenges to incumbents in several areas, including mainstream enterprise IT.
So you don’t know Huawei
First, some basics. Huawei’s 2013 revenue was $39.5 Billion, which puts it right up there with some much better-known names such as Lenovo, Oracle, Dell and Cisco.
Big data is undergoing big change, but most companies are missing it or just grasping at the edges. My colleague Fatemeh Khatibloo and I have just completed an exhaustive study of the big data phenomenon. We found a familiar pattern: business confusion in the face of stern warnings about the dangers of big data and vendor-sponsored papers extolling its benefits. Here’s what we found hidden beneath the buzz:
As data explodes, so do old ways of doing business.
Everywhere we look, we find businesses using more diverse, messier, and larger data sets to stay competitive in the age of the customer — like the consumer goods firm that allocated marketing dollars based on flu trend predictions and the oil and gas companies that used weather data to predict iceberg flows and extend their drilling season. Savvy businesses find ways to turn more data into a competitive advantage. If your firm doesn’t get this, it won’t be pretty — starting in the not too distant future.
Technology managers and architects can’t afford to sit back and think that their Hadoop project will deliver everything the business needs. Nor can you afford to think that big data isn’t for you because you don’t have that much data. Why? Because “big data” is really the practices and technologies that close the gap between the available data and the ability to turn that data into business insight — insight that your firm needs to survive and thrive in the age of the customer. Four things to understand:
Customers crave contextual and personal experiences on their mobile devices. Companies are looking to the reams of location and behavior data spun off mobile device to deliver them. Meanwhile, executives long for the insights lurking just below the surface of the new data they collect on customers and prospects to improve services and chart the best business strategy.
In most companies, mobile engagement, customer analytics, innovation, and business strategy happen in silos and often half-heartedly. But disruptors like Uber, TripIt, Netflix, Flipboard, and Starbucks deliver great and personalized mobile and digital experiences -- and optimize outcomes -- with insights derived from all the data they can gather.
We believe these disrupters deliver great mobile experiences by building what my colleague Brian Hopkins has termed a “system of insight” that goes far beyond traditional analytics or big data approaches to gather, analyze, and operationalize all the data to deliver great mobile moments. These companies are different – they take a systematic approach to linking mobile data to big data analytics technology, staff, and operations. This lets them take advantage of mobile data to improve customer experiences and their business.
Brian and I believe that these firms are building systems of insight by:
Gathering and mining mobile and location data to continually find and harness new customer insights.
Embedding predictive analytics engines into their engagement platforms to deliver contextual and personalized mobile and digital experiences based on each individual’s unique score and context.
Recent survey data from Forrester reveals that external third-party data is rapidly rising in importance to organizations. Such third-party data sets are rising in importance partially because they provide opportunities to take advantage of the explosion in data sources — for example, from data generated by the proliferation of mobile and other sensor-enabled devices. External data provides real value — not just in traditional use cases such as improving market intelligence data, but increasingly in improving customer experiences, such as EA Sports piping real-time weather data into its game venues to create more realistic gaming experiences.
Our recently published report, “Navigating The New Data Market Landscape,” explores how this explosion in data sources has given rise to a new market for data and data services — what will make up the foundation of the emerging data economy. The report aims to arm both technology management as well as business professionals with the knowledge to guide new data strategies, in particular with the possibility to incorporate external data into business intelligence and decision-making.