In this playbook, we do not predict the future of technology but we try to understand how, in the age of the customer, I&O must transform to support businesses by accelerating the speed of service delivery, enabling capacity when and where needed and improving customers and employee experience.
All industries mature towards commoditization and abstraction of the underlying technology because knowledge and expertise are cumulative. Our industry will follow an identical trajectory that will result in ubiquitous and easier to implement, manage and change technology.
I was reviewing this Forrester brief from May 2015 to realize that it's still terribly current in light of the recent presidential blast on net neutrality. It expresses a point of view missing from the public debate and Twitter rants in my view. It raises the bar on what consumers should expect, vendors should invest in, and governments should manage.
Original title: Debate Internet Regulation On Market Principles: Transparency, Choice, And Freedom
Published on May 15, 2014
The debate over broadband regulation — why there should or shouldn't be fast lanes and slow lanes on the Internet — has spurred outrage from nongovernmental organizations like MoveOn.org; energized the entrepreneurial juggernaut; triggered the frantic lobbying of major broadband providers like AT&T, Verizon, and Comcast; and wound up in federal court to take down a Federal Communications Commission (FCC) regulation. On May 15, 2014, the FCC proposes to allow content providers like Netflix and Google to do deals with broadband providers like Comcast and Verizon to ensure a quality service experience for consumers. Let the response be rational and not virulent. The worst outcome would be to hastily create or reject a policy based on old thinking. Managing the Internet for all requires new policy thinking. Forrester understands and respects the positions of the players in the debate, but in service of our CIO and CMO customers, we believe that it's time to reframe the debate on the basic principles of markets: transparency, choice, and freedom.
A VITAL INTERNET MUST REFLECT MARKET NEEDS, NOT REGULATORY HISTORY
Rapidly evolving customer expectations continue to drive changes across all facets of business. Consumers and business customers increasingly expect real-time access to status, service, and product information. Rapidly changing consumer expectations ripple throughout the supply chain, shortening product cycles and requiring more agile manufacturing capabilities.
Forrester believes that 2015 will serve as an inflection point where companies that successfully harness digital technology to advantageously serve customers will create clear competitive separation from those that do not. CEOs will shift more investment funds to creating digitally connected products and solutions. Products like connected cars, connected running shoes, or connected aircraft turbines are creating new value propositions that tie these products closer to the customer engagement lifecycle and help create new business models. Data as a product or service will create new revenue and customer value streams. For example, sensor-embedded tractors already generate data that power John Deeres’ FarmSight service. And as industrial players like General Electric, Philips, Robert Bosch and ABB learn to act more like software companies by creating value through software, their underlying business models will change rapidly.
As businesses pursue digital transformation, their CIOs will reset their priorities accordingly. Together with my colleagues Bobby Cameron, Nigel Fenwick and Jennifer Belissent we brought together the top predictions for CIOs in 2015. In particular, we predict that CIOs will:
Digital transformation will fundamentally affect all aspects of business and society, which makes it a key theme not only for business leaders and CIOs but also for governments. Over the past few years, several governments across Europe, as well as the European Union (EU) itself, have each developed their own respective initiative to address the opportunities and challenges that come with digital.
However, from the CIO’s perspective, these digital agendas often fail to meet the requirements that businesses encounter as part of their digital transformation projects. While the digital agendas emphasize infrastructure and regulatory initiatives such as broadband coverage and Net neutrality, CIOs and their business partners would also benefit also from a focus on “soft issues,” such as promoting an interdisciplinary approach in university education and driving digital innovation across industry sectors. We believe that:
Governments recognize the digital transformation of businesses and society . . . Governments across Europe, as well as the European Commission of the EU, have recognized the importance of digital transformation to their constituencies and citizens. Various digital agendas have been developed and rolled out over the past few years with great fanfare. But in the end, most digital agendas remain high-level discussion papers.
. . . but governments underestimate the magnitude of digital transformation. Most digital agendas lack any real insights about broader business requirements for being successful in the digital economy — let alone any technological insights. Digitization is treated like one of many initiatives rather than the overarching theme for business and society.
An inquiry call from a digital strategy agency advising a client of theirs on data commercialization generated a lively discussion on strategies for taking data to market. With few best practices out there, the emerging opportunity just might feel like space exploration – going boldly where no man has gone before. The question is increasingly common. "We know we have data that would be of use to others but how do we know? And, which use cases should we pursue?" In It's Time To Take Your Data To Market published earlier this fall, my colleagues and I provided some guideance on identifying and commercializing that "Picasso in the attic." But the ideas around how to go-to-market continue to evolve.
In answer to the inquiry questions asked the other day, my advice was pretty simple: Don’t try to anticipate all possible uses of the data. Get started by making selected data sets available for people to play with, see what it can do, and talk about it to spread the word. However, there are some specific use cases that can kick-start the process.
Look to your existing customers.
The grass is not always greener, and your existing clients might just provide some fertile ground. A couple thoughts on ways your existing customers could use new data sources:
Cloud and the digital business imperatives you face in 2015 are the external forces driving this transformation. What it means for your internal organization is now's the time to get serious about service design and service delivery. As Glenn, the research director guiding this playbook, says:
"Your future lies not in managing pockets of infrastructure, but in how you assemble the many options into the services your customers needs. Our profession has been locally brilliant, but globally stupid. We’re now helping you become globally brilliant. We call this service design, a much broader design philosophy rooted in systems thinking. The new approach packages technology into a finished “product” that is much more relevant and useful than any of the parts alone."
In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?
Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions. Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market. In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
I have a love/hate relationship with "technical debt". Having covered apps modernization, rationalization, and portfolio management at Forrester for more than a decade, I have a keen appreciation for the concept of technical debt - in all its permutations.
So I love the term for the sentiment it expresses about the need for change:
As we have modernized applications over the past 4 decades, we have "kicked the can" down the road far too many times - opting for expediant change over "refactoring to make it right"
Within any mature single app, technical debt spawned by years of compromise can accumulate to daunting levels
The debt eventually reaches the point of becoming a self-fulfilling prophecy - today's debt is too big to tackle, so we kick it down the road and watch it grow out of control
Across the entire apps portfolio, the accrued debt cripples firms by gobbling up huge percentages of the available business technology (BT) spend
As we rush to build out customer facing and mobile apps to address the age of the customer, the technical debt within the systems of record act like an anchor on change velocity - at both the app AND portfolio levels
And I hate the term because well-intentioned techies wield it like a bludgeon to pound business leaders with an urgency to act. But imagine for a moment how it sounds to business leaders, how they react to the term:
"If it's technical, then its your problem Mr App Dev leader, not mine - I'm a business leader"
"This debt you want to hand me ... YOU created it, YOU made technology decisions - it's your problem, don't try to hand me a bill to clean up YOUR mess"
When it comes to your Technology Management service catalog, are you lost in arguments on what to call certain categories of services? What are your service families and what is the next level of service elements? What are the definitions of the service elements? These questions are just the tip of the iceberg of current projects within I&O organizations in defining the rich and complex world of a technology management service catalogs. I&O teams are struggling to architect foundational service catalogs which will support the standardization and optimization efforts of their service offerings.
With that challenge in mind, Forrester created a I&O Technology Management Service Taxonomy - a collection of many service elements, organized by 13 service families. The research consists of a detailed spreadsheet based tool with a variety of service families, service taxonomies and definitions. The next steps are to understand the business services and capabilities which are enabled through these technology management services. Some business services and capabilities are similar from one vertical to another. Our next endeavor is to capture these services as well.