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.
BI is no longer a nice-to-have back-office application that counts widgets — it is now used as a key competitive differentiator by all leading organizations. For decades, most of the BI business cases were based on intangible benefits, but these days are over — today 41% of professionals, with knowledge of their firm's business case, base their business case on tangible benefits, like an increased margin or profitability. As a result, BI is front and center of most enterprise agendas, with North American data and analytics technology decision-makers who know their firm's technology budget telling Forrester in 2014 that 15% of their technology management budget will go toward BI-related purchases, initiatives, and projects.
But taking advantage of this trend by deploying a single centralized BI platform is easier said than done at most organizations. Legacy platforms, mergers and acquisitions (M&A), BI embedded into enterprise resource planning (ERP) applications, and organizational silos are just a few reasons why no large organization out there has a single enterprise BI platform. Anecdotal evidence shows that most enterprises have three or more enterprise BI platforms and many more shadow IT BI platforms.
But Avoid Ending Up With A Zoo Of Individual Big Data Solutions
We are beyond the point of struggling over the definition of big data. That doesn’t mean that we've resolved all of the confusion that surrounds the term, but companies today are instead struggling with the question of how to actually get started with big data.
28% of all companies are planning a big data project in 2014.
According to Forrester's Business Technographics™ Global Data And Analytics Survey, 2014, 28% of the more than 1600 responding companies globally are planning a Big Data project this year. More details and how this splits between IT and Business driven projects can be found in our new Forrester Report ‘Reset On Big Data’.
Or join our Forrester Forum For Technology Leaders in London, June 12&13, 2014 to hear and discuss with us directly what Big Data projects your peers are planning, what challenges they are facing and what goals they target to achieve.
Our bi-yearly Forrester Agile survey suggests that Agile development (or simply "Agile") continues to see consistent, strong adoption. However, the same survey data shows that only a small percentage of firms are outsourcing Agile application development due to a lack of experience with the development sourcing approaches and governance models needed to make it work. Successfully outsourcing Agile development, either fully or partially, involves redefining roles and responsibilities, change management processes, metrics and SLAs, service descriptions, and other contractual elements. Merely using traditional outsourcing language and practices risks jeopardizing the benefits of Agile. There is no single way of doing this right.
“Business Intelligence in the cloud? You’ve got to be joking!” That’s the response I got when I recently asked a client whether they’d considered availing themselves of a software-as-a-service (SaaS) solution to meet a particular BI need. Well, I wasn’t joking. There are many scenarios when it makes sense to turn to the cloud for a BI solution, and increasing numbers of organizations are indeed doing so. Indications are also that companies are taking a pragmatic approach to cloud BI, headlines to the contrary notwithstanding. Forrester has found that:
· Less than one third of organizations have no plans for cloud BI. When we asked respondents in our Forrsights Software Survey Q4 2013 whether they were using SaaS BI in the cloud, or were intending to do so, not even one third declared that they had no plans. Of the rest, 34% were already using cloud BI, and 31% had cloud in their BI plans for the next two years. But it’s not a case of either/or: the majority of those who’ve either already adopted cloud BI or are intending to do so are using the SaaS system to complement their existing BI and analytics capabilities. Still, it’s worth noting that 12% of survey respondents had already replaced most or all or their existing BI systems with SaaS, and a further 16% were intending to do so.
I attended the Gainsight Pulse conference in San Francisco on May 14 which is a unique event for customer success managers to network, learn best practices, and understand the value of this role. You could feel the energy of the 900+ conference members, fueled by the fantastic 115 speaker roster featuring luminaries like Malcolm Gladwell, venture capital firms like Battery Ventures, Bain Capital Ventures, and Summit Partners, and companies like Salesforce, Marketo, LinkedIn, Zuora, Brainshark, Bazaarvoice, Evernote, Zendesk, Xactly, Box and many, many more. So, the question is what is customer success, why is it important, and why now?
The subscription economy - where products are purchased as services - has tipped. This is because monthly operational costs are often easier to rationalize than large capital expenditures. Industry segments like media and entertainment have moved to a subscription model. Other industries like publishing, computer storage are moving in this direction. This move to a subscription based delivery model is evident in B2B software, as highlighted in Liz Herbert’s TechRadar analysis of the SaaS market. Some software categories like SFA, eLearning, human capital management are almost exclusively sold via the SaaS delivery model. Others - like collaboration, customer service software and marketing automation software – are heading that way.
Since Tibco acquired Jaspersoft on April 28th, 2014, I keep being asked the question: “Will this deal change the BI and analytics landscape?” (If you missed the announcement, here’s the press release.)
The short answer is: it could. The longer answer goes something like this: Jaspersoft and Tibco Spotfire complement each other nicely; Jaspersoft brings ETL and embedded BI to the table, whereas Spotfire has superior data analysis, discovery, and visualization capabilities. Jaspersoft’s open source business model provides Tibco with a different path to market, and Jaspersoft can benefit from Tibco’s corporate relationships and sales infrastructure. And with its utility-based cloud service, Jaspersoft also adds another option to Spotfire’s SaaS BI offering.
But that’s only the narrow view: once you take into consideration Tibco’s history (the hint’s in the name - “The Information Bus Company”) and the more recent string of acquisitions, a much larger potential story emerges. Starting with Spotfire in 2007, Tibco has assembled a powerful set of capabilities, including (but not limited to) analytics, data management, event processing, and related technologies such as customer loyalty management and mapping. If Tibco manages to leverage all of its assets in a way that provides enterprises with a flexible and agile integrated platform that helps them turn their data into actionable information, it will be a powerful new force that has the potential of changing enterprise BI platforms market.
To get there, Tibco has a number of challenges to address. On a tactical basis, it’s all about making the Jaspersoft acquisition work:
Retaining the talent
Making it easy for clients and prospects to engage with both companies
As I move about the industry talking about APIs (application programming interfaces) and the API economy — which hold important and transformative business opportunities — I’m frequently confronted with disparaging remarks about SOA (service-oriented architecture), as if it’s passé, gone, finito. It’s often in the way of (uninformed) assumptions about SOA. I hear things like, “SOA failed because it was too difficult” or “People do REST APIs now, they don’t do SOA” or other such bunk.
I’ll be the first to extol the importance and benefits of APIs, but the tales of SOA’s failure and demise are simply wrong (I really do like APIs; see this report). I had a powerful reminder of all this while attending IBM’s IMPACT conference this week. First off, I arrived late to one customer’s plain-vanilla “this is our enterprise SOA journey” session only to be refused entry because the room was over capacity. Glancing over the conference program, there were at least eight such sessions representing four continents and at least five vertical industries. I attended five of them and also had lunch with another SOA leader. The stories could all be summarized by the following plot line:
We saw the value in SOA. Whether the need was multichannel customer engagement, faster time-to-market, retiring legacy, getting past complex and costly point-to-point integration, dealing with duplicate applications, or some other business-technology problem, a core team recognized that SOA could make things better.