Insights-Driven Business Are Stealing Your Customers

Brian  Hopkins

Is your business digital? Like Domino’s Pizza, do you realize that you are not a product or service business, rather you are a software and data business that provides products or services? Do you exploit all of your customers' data to know them inside-out? Are customers flocking to you because you are driving every engagement with insight about them? If the answer to any of these questions is not a resounding, “Yes!”, then you are losing revenue and shareholder value.

In Forrester’s new report, The Insight Driven Business, my colleagues Ted Schadler, James McCormick and I identify a type of business that ignores the "data driven" hype. Instead, insights-driven businesses focus on implementing insights - that is actionable knowledge in the context of a process or decision - in the software that drives every aspect of their business. This is a big shift from most firms that fret over big data and technology. Instead insights-driven businesses focus on turning insights into action. The big data and technology pieces come along naturally as a consequence.

To gauge the economic impact of insights-driven businesses, Forrester built a revenue model that conservatively forecasts insights-driven businesses will earn about $400 billion in 2016; however, by 2020 they will be making over $1.2 trillion a year due to an astonishing compound annual growth rate between 27% and 40%. Given that global growth is less than 4%, how will they pull this off? Plain and simple, they’ll do this by understanding customers more deeply and using that insight to steal them from their competition. 

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Microsoft Stream Hopes To Shake Up EVP Market

Nick Barber

Microsoft Stream, the company’s enterprise video platform (EVP) bolted onto Office 365 could shake up the EVP market, but don’t jump in head first just yet.

 
 

Video used to be the domain of media and broadcasters, but now enterprises from healthcare to financial services have reason to be doing video. They can use video to connect internal employees and external prospects with the CEO during a live event. Or maybe HR needs to establish a centralized training channel.  

 

It makes sense for Microsoft to move into this market more robustly. It already has tens of millions of users on its Office 365 email and productivity suite so video is a logical step.

 

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Cybersecurity Takes Center Stage In US Presidential Election

Stephanie Balaouras
Last week, WikiLeaks posted a treasure trove of internal emails from the Democratic National Committee (DNC). The leaked emails demonstrated a clear bias within the DNC against Bernie Sanders and for Hillary Clinton, when the organization claimed to be neutral. The incident:
 
  • Confirms two of our 2016 cybersecurity predictions:
    • In 2015, we predicted that cybersecurity would become a major issue in the 2016 US presidential election. Not only have candidates discussed cybersecurity issues such as encryption throughout the debates, with the DNC email leak, cybersecurity itself is taking center stage in the election and influencing events. It is worth noting that hacking during election season is not purely a US-related issue. The entire voter registration database of the Philippines, which included fingerprint data, was hacked this spring.
    • We also predicted that an executive would need to step down due to a cybersecurity breach. As the result of the embarrassing emails, the DNC chairwoman, Debbie Wasserman Schultz, has announced her resignation at the end of the DNC convention.
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Look Who's Running IT Now!

Brian Baker

As CIO Executive Partners at Forrester, we meet technology leaders in almost every industry sector. One theme is clear: The typical career path, leading to CIO has changed.

No patience for CIOs to learn new tricks.
Companies are now looking to leadership from non-traditional CIO career path sources. Over the past few years, we"ve noticed an increase in line-of-business leaders being appointed CIO. Within the past 12 to 18 months we"ve also seen Digital channel / eCommerce experts, being appointed the overall CIO.

Why are Executives turning to new sources for their CIOs?
For a few decades now, tech leaders have been focused on running a stable, secure, predictable and efficient technology platform. Everyone expects you to get the "table stakes" right. That is no longer enough to keep your position in the company secure.

Back in November 2015, Forrester Analysts Nigel Fenwick and Pascal Matzke summarized the perspectives of the CIO research practice in a Predictions 2016 report: "The New Breed of CIO." In the report they claim that in 2016, CEOs will expect CIOs to grow out of being mere custodians of technology and to actively wield tech to drive revenue instead. They go on to state that, "Effective CIOs will spread outside-in thinking, agile delivery and a sense-and-respond culture to deliver digital success."

Not only is this prediction today"s reality, CEOs are making quick assessments as to whether or not they have the right team to achieve results. If they perceive they don"t, they are looking to new sources for their Tech Leadership.

The new CIO career path.

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Forrester's 2016 ECM Panel Survey Is Open - Call for Participation

Cheryl McKinnon

Forrester's survey for ECM decision-makers is open, and we're looking for your participation! Take this opportunity to provide your perspectives on the key vendors, the challenges, and the opportunities you see in this technology market. This survey is intended for ECM decision-makers or influencers in end user organizations. This is not for ECM vendors or systems integrators . . . but vendors and consultants — we would love it if you could share this survey invitation with your customers. The survey will remain open until end of day Monday August 1, 2016.

The survey will take approx 15-20 minutes to complete.

Why is your input important? Forrester uses this data to:

  • Keep our Enterprise Content Management Playbook fresh and relevant. Clients who are embarking on a new or updated content initiative rely on these interconnected reports to understand the landscape and market direction and build out the business cases, continuous improvement plans, and the org charts to succeed.
  • Track the trends and emerging use cases for ECM — for both business and transactional content services. Where are investments being made? How is cloud shaping your road map? What are the top challenges facing your programs today?
  • Educate clients and nonclients alike via research, blog posts, webinars, and industry presentations. This survey data helps us validate and verify where ECM markets are evolving and aid you in making better investment decisions.
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Unilever Buys Dollar Shave Club To Become Digital Direct

Ted Schadler

Unilever is the latest in a long string of enterprise giants to acquire digital. It acquired the digital-native startup, Dollar Shave Club, for $1 billion. I've been telling the Dollar Shave story lately as a way to describe the disruption possible when a company uses digital technology to establish a direct relationship with a customer. Dollar Shave Club is in its customers' daily shower and conscienciousness. It's a digital disruptor, not because it has a revolutionary product. It's because it has a revolutionary relationship.

What should you take away from this Dollar Shave Club deal?

  • Digital disruption starts with a direct customer relationship. Sure, sometimes digital is about new products and services. But it's always about a direct relationship with customers. That's what's so scary to traditional industries with their indirect distribution models. Unilever has sold through distribution for time and memorial. It doesn't know its customers except through the lens of research and somes times purchased sales data. No longer. Now it can know its customers as Under Armour is starting to.
  • Digital strategy is about bridging the gap between your core capabilities and what customers want. For large firms, you don't need to reinvent your core capabilities to become digital. You instead need to recognize that digital is the way customers want to buy, engage, and get service, so you must give them the tools they expect. Dollar Shave Club sells razors. It just sells them conveniently at a great price. That puts digital within reach of every company.

There will be a lot more digital direct deals like this. Direct customer relationships are one vector of our digital future.

Valuable services lurk behind confused marketing of 'managed cloud'

Paul Miller

(Confusing messages. Image by Wikimedia Commons user 'Melburnian')

Again and again, we hear examples of companies struggling as they try to realise the benefits of moving to cloud. They know what they want to achieve as a business, they know that cloud can help, but they cannot translate that understanding into the way they specify, procure, and run the technology.

There are plenty of organisations willing to help, offering everything from design and migration services through to management of infrastructure and applications on an ongoing basis. Even in the public cloud world, it's easy to find companies eager to take your money, and then start and stop workloads on your behalf.

But, as the blurb for my latest report states,

"Cloud computing changes the way that applications are designed, built, and run. It is often part of a broader organizational change, as enterprises move to embrace digital opportunities. Providers of managed cloud solutions need to recognize this shift: They must do more than simply run a customer’s computers. But CIOs seeking a trusted partner to assume this broader role find that too many managed cloud offerings fail to rise above basic management of infrastructure."

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Win Hearts and Minds With Livestreaming

Nick Barber

Over the next few weeks US voters will focus on Hillary Clinton, Donald Trump, and their running mates at the Republican and Democratic National Conventions. Their messages will carry well beyond traditional TV with the help of livestreaming. The Republican National Convention in Cleveland will provide a 360 livestream. This will be one of the first high profile events streamed in 360 degrees. Twitter announced a deal with CBS to livestream the conventions whenever they are in session.

 

Image: Facebook Live has a map of every current live broadcast globally.

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Responsive Web Design Is Not Mobile First

Ted Schadler

My colleague and coauthor Julie Ask and I are watching with dismay as company after company shrinks its desktop website down to a small screen using responsive web design (RWD) techniques so it fits on – but isn’t optimized for – smartphones.

Companies have delightedly embraced responsive web design as the one-size-fits-all solution to mobile, tablet, and desktop sites. In a recent survey of digital business professionals, we found that 93% are using, piloting, or planning to pilot responsive web design.

That sounds great on paper. After all, RWD is a very practical approach to developing websites that render on any device. But when mobile tasks diverge from desktop tasks as they often do in commerce, the one-size-fits-all approach taken by most responsive retrofits will fail to delight or even satisfy customers on smartphones or desktops.

People do different things on their smartphones than on their desktops or tablets (see figure). To delight and serve your customers in their mobile moments of need, you need to give them exactly what they need to move forward in their immediate context. So if you can't reach all customers with an app – AND YOU WON’T! – you will need to deliver an app-like mobile web experience.

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Brexit Vote Means Weaker UK And European Tech Market In 2016 And 2017

Andrew Bartels

As soon as the news of the Brexit vote in the UK came out, the Forrester team began revising our UK and European tech market forecast to take into account the economic implications and uncertainties of the voters’decision that the UK should leave the EU. Based on this revised analysis, we predict the UK tech market will grow by just 1% (pounds sterling) in 2016 with zero growth in 2017, compared with our prior forecast of 5% in both years.

Europe as a whole, will post no growth in 2016 (euros), and just 1% growth in 2017  two percentage points slower than our earlier forecast. With the plummeting pound and enervated euro, European tech market measured in US dollars will be similarly weak with 0.2% growth in 2016 and 1.1% in 2017.

The slowing of UK and European tech market growth results from multiple uncertainties created by the Brexit vote coming on top of what was already a weak and shaky European economy. As a result:

  • The UK economy, which had been outperforming most of the Eurozone countries, will take a hit. The Belgian, Dutch, French, German, Italian, and Swiss economies, which are growing by 1-1/2% or less, are vulnerable to declines, with Italy especially exposed due to a looming banking crisis.
  • Greece and Portugal are struggling once again, with threats of renewed recessions leading to declines in tech spending.
  • The only countries with decent economic growth and above average tech market growth are Ireland and Spain in the Eurozone, and Sweden, Poland, and other Central European countries outside it.
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