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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Forrester’s CX Marketing Forum 2016 In Shanghai: Fuse CX, Brand, And Marketing To Create Your Competitive Advantage

Travis Wu

Following last year’s highly successful Summit for Marketing Leaders in Shanghai, I’m excited to take on the role as the forum host for Forrester’s upcoming Customer Experience (CX) Marketing Shanghai 2016 Forum, taking place just seven weeks from now on September 1 at the JW Marriott Shanghai.

The line between CX, brand, and marketing disciplines has blurred as empowered customers now have more knowledge, more power, and more leverage than ever over companies, services, and products. This year’s Forum focuses on fusing CX, brand, and marketing, which is the first step to becoming customer-obsessed, to build the foundation for driving continuous business success in the age of the customer. We are here to help you answer these questions:

How do companies thrive in this dynamic environment?

How can I combine CX, brand, and marketing to create a core competitive advantage for my company?

How do I show the real value of CX to the rest of my organization, including senior executives?

Our CX Marketing Shanghai 2016 Forum brings together the best minds of marketing and CX from both Forrester and leading companies in different industries to discuss forward-looking trends and share best practices. Come attend this one-day forum to:

  • Understand how CX, brand, and marketing drive business growth
  • Learn best practices from CX and marketing leaders in different industries
  • Deepen your understanding of your rapidly evolving digital customers
  • Know how to boost marketing outcomes through digital technologies and advanced data analytics
  • See how design thinking and digital technologies can improve CX quality and increase your customer loyalty.
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The Democratization Of Customer Service Forces Vendor Consolidation

Kate Leggett

Today, customers expect easy, effective customer service which build positive emotional connections.  And they expect this type of service from all companies that they do business with – companies that are both big and small.  

Companies use complex software from different vendors to support customer service operations. They use:

  1. Queuing and routing technologies. They capture the customer inquiry, which can be via voice, digital, or social channels, and route and queue the inquiry to the right agent pool.
  2. CRM customer service technologies. They enable customer service agents to create and work the incoming service request.
  3. Workforce optimization technologies. They record agent interactions with customers, evaluate the quality of these interactions, recommend targeted training based on quality scores, manage agent schedules, forecast future schedules and more.
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Microsoft’s Big Bang: Everything CRM and ERP On One Platform

John Bruno

This week Microsoft announced a new offering (available in the Fall): Microsoft Dynamics 365. Sound familiar? It should. Office 365, Microsoft Dynamics CRM, and Microsoft Dynamics AX all come to mind, and this was not done by mistake. Microsoft is bringing together the capabilities from these products, their intelligence tools, and third party or internally-built apps from its newly launched AppSource. Microsoft will use Dynamics 365 to provide disaggregated applications that serve the functional needs formerly delivered through CRM and ERP suites (e.g. sales, service, marketing, operations, etc.) atop is a common application platform and data model.

So what is Microsoft looking to achieve with these changes? Well, business doesn’t end with a customer interaction, and delivering superior customer experiences doesn’t end at the front office. Front office and back office apps need to talk to one another to make sure companies are able to win, serve, and retain customers. Microsoft aims to: 

  • Give employees access to the right data and tools to perform their jobs. By utilizing a common data model, Dynamics 365 will show a consolidated view of the customer, inclusive of transactional data. This consolidated view delivered in the context of business apps will provide marketing, sales, and service professionals the appropriate context and functionality to serve their customers.
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Banks Have A Variety Of Islamic Banking Platforms To Choose From

Jost Hoppermann

The World Bank explains Islamic finance as “equity-based, asset-backed, ethical, sustainable, environmentally and socially responsible finance.” In previous Forrester research, we have described many of the core principles of Islamic banking: limitations on interest, certain contractual considerations, and the prevention of gambling — which limits many of the speculative aspects of financial services. These principles make the Islamic Banking sector worthy of consideration in itself; and the tools and technologies that support Islamic banking are important for any financial services firm operating in geographies with large Islamic populations. However, the market is relevant for other key reasons:

  • Islamic banking is of a significant size and continues to grow. For example, Islamic commercial banking hold totals assets of about US$1.1 trillion and has captured a 15% to 20% market share of total commercial banking in countries where Islamic banking exists (according to Hamdan Bin Mohammed Smart University in the UAE). Recent estimates predict growth rates of about 9% for the finance market and 10% for commercial banking — rates beyond the growth of many conventional banks (according to the Dubai Islamic Economic Development Centre andThomson Reuters).
     
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After Brexit, it's business as usual for most of Europe's public cloud workloads

Paul Miller

The flags of the European Union and the United Kingdom

(source: Wikimedia Commons)

Two weeks on, the result of the UK referendum on membership of the European Union (EU) continues to reverberate around the world. Forrester provided advice for clients needing to understand the business implications. Looking at the specific impact on public cloud deployments in Europe introduces a number of additional points. These are best considered in three separate contexts:

  • that of companies wishing to serve customers in the UK
  • that of companies wishing to serve customers in the remaining 27 EU member states (the EU27)
  • that of companies wishing to serve customers in the EU27 from a base in the UK.
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Big Data Vendors See The Internet Of Things (IoT) Opportunity, Pivot Tech And Message To Compete

Paul Miller

Picture of a stream flowing over boulders.

(Source: http://www.publicdomainpictures.net/pictures/90000/velka/waterfall-stream-over-boulders.jpg)

Open source big data technologies like Hadoop have done much to begin the transformation of analytics. We're moving from expensive and specialist analytics teams towards an environment in which processes, workflows, and decision-making throughout an organisation can - in theory at least - become usefully data-driven. Established providers of analytics, BI and data warehouse technologies liberally sprinkle Hadoop, Spark and other cool project names throughout their products, delivering real advantages and real cost-savings, as well as grabbing some of the Hadoop glow for themselves. Startups, often closely associated with shepherding one of the newer open source projects, also compete for mindshare and custom.

And the opportunity is big. Hortonworks, for example, has described the global big data market as a $50 billion opportunity. But that pales into insignificance next to what Hortonworks (again) describes as a $1.7 trillion opportunity. Other companies and analysts have their own numbers, which do differ, but the step-change is clear and significant. Hadoop, and the vendors gravitating to that community, mostly address 'data at rest'; data that has already been collected from some process or interaction or query. The bigger opportunity relates to 'data in motion,' and to the internet of things that will be responsible for generating so much of this.

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Digital Transformation - Part 2: Culture And Organization

Dan Bieler

The most digitally aware managers are realizing that cultural and organizational transformation will dominate their agenda for years to come. Emerging business models will not function based on old organizational structures, traditional innovation approaches, and outdated management techniques.

In the late 1990s, many traditional businesses mentally leapfrogged by adding a “dotcom” to their name. Those old enough to remember those days, know that many businesses failed miserably in their efforts and still have not fully adjusted to IP realities.

Today we see a similar trend, with every business claiming to be a "digital" business. To me, this is a clear sign that we have crossed the zenith of digital hype. This period is a risky one. Just as the once mighty telcos were blown out of the water by the much more agile and flexible social media and big data players in the 2000s, I believe a majority of traditional businesses will succumb to the forces of successful digital businesses. Declarations of digital intentions, the creation of chief digital officers, or the allocation of digital budgets alone will not translate into digital success.

Most grand digital visions and strategic ambitions that have become the staple diet of corporate presentations mostly fall short of concrete plans for management innovation. It is not conceivable how traditional management techniques can deliver on promises of ongoing and inside-out-driven innovation as well as responding instantaneously to fast-changing customer demand. The creation of a work environment that stimulates employees’ self-initiative and creativity as well as passion for one's work must be the central building block for an agile, flexible, and experimental digital business.

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Architect Process Agility With BPM Platforms For Digital Business

Charlie Dai

Some CIOs and enterprise architecture (EA) pros believe that business process management (BPM) is on the opposite side of agility — but they don’t realize that BPM technology itself is also evolving. Agility-oriented BPM platforms are the foundation of a digital business. I’ve recently published a report that discusses the four key areas that EA pros must focus on to accelerate digital transformation with BPM. Some of the key takeaways:

  • Modern BPM is critical for digital business. Process agility is critical to giving businesses the agility that powers digital business. BPM adoption is gaining momentum in China; EA pros must drive the use of modernized BPM platforms and methods to accelerate digital transformation. 49% of budget decision-makers in China from both the technology and business sides will increase their spending on enterprise process applications, which is higher than their global peers.
  • An outside-in approach is key to digital transformation. EA pros must understand key BPM platform capabilities and unique local demands. For the Chinese market, this means data-intensive user interfaces with integration and security needs, complex organizational hierarchies and ad hoc decision-making approval processes, and a unique social environment for cross-region collaboration. EA pros should then use these requirements to align the architecture for agility-oriented process platforms. Forrester has introduced a reference architecture for agility-oriented process platforms that consists of four layers: enablement, foundation, engagement, and management.
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Cisco buys Cloud Security Gateway vendor CloudLock for $293M

Andras Cser

Given Symantec's recent acquisiton of BlueCoat (and with it BlueCoat's earlier acquired Elastica and Perspecsys cloud security gateway (CSG) assets), and IBM's organic buildout of its Cloud Security Enforcer CSG solution it comes hardly as a surprise that Cisco today announced its intent to acquire CloudLock for US$293M (in Forrester's estimation this purchase price represents at least 10-15x of CloudLock's current revenues).  Considering that CloudLock's DNA and pedigree  is mainly in cloud data governance and data leak prevention using API based connectivity to SaaS (and lately IaaS) apps without an own gateway solution, Forrester expects that Cisco will do the following with CloudLock:

1) Integrate CloudLock's CSG offering with its own Ironport Secure Web Gateway (SWG) offering for interception of on-prem to cloud traffic,

2) invest in improving machine learning and behavioral analytics (already there in CloudLock's CSG solution),

3) improve data protection and cloud encryption in the solution, 

4) use its distribution channels to penetrate the lucrative and fast-growing (Forrester's estimate: 20%-25% y/y global growth) CSG market,

5) start an acquisition of wave in which other large SWG vendors will follow suit and acquire smaller CSG vendors.