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Digitally empowered customers are forcing firms to redefine their engagement model to survive in the age of the customer. Data from Forrester’s Forrsights Budgets And Priorities Survey, Q4 2013, indicates that Indian CIOs’ top business priority is to address the rising expectations of customers and improve customer satisfaction; 87% of them told us that it is a high or critical priority.
Indian business leaders’ attitudes are changing; increasingly, they view IT as a means to better engage digitally enabled constituents, and this is fueling a fundamental shift in the way firms interact with customers. Business leaders expect their CIOs to contribute to business growth by winning and retaining customers. But targeting the customer experience requires IT organizations to radically shift focus. CIOs must alter governance processes, job descriptions, IT performance metrics, and even the culture of the technology management organization.
Forrester recently published Technology Management In The Age Of The Customer, which highlights how empowered customers are disrupting every industry and CIOs need to adapt tech management to these rapid changes. To meet this objective, CIOs must broaden their tech management priorities and carry two agendas:
Managing infrastructure management and internal operations, which we call “IT.”
Infrastruture & operations professionals should start following trends in the wearable computing market in earnest. While it's easy to deride wearables as riding a wave of hype -- and most categories of wearables enjoy more publicity than sales at this point -- wearables aren't just a consumer or bring-your-own-device (BYOD) trend. Numerous vendors have taken a serious approach to developing and launching products for the enterprise wearable market, and some of these devices offer comapanies a real opportunity to generate business value.
I've just posted my new ComputerWorld column with an analysis of these trends. Please read the entire article here.
J. P. Gownder is a Vice President and Principal Analyst at Forrester Research. Follow him on Twitter at @jgownder.
As we move to what Forrester calls ‘The Age Of The Customer,’ enterprises will need to reinvent themselves to systematically understand and serve increasingly powerful customers, we are seeing a notable shift in what the business expects from IT. IT requirements are increasingly being influenced by the business leader who wants technology to not just enable efficiencies but to also provide an edge over competition by helping to develop things like new marketing and sales channels, and applications that provide greater insights on buyer behavior and what influences them.
By 2020, we anticipate that evolving customer expectations will open up tremendous opportunities for businesses, but at the same time, they will evolve so rapidly that businesses that are unable to keep pace will face the threat of extinction. Therefore, the need of the hour is for speed. Getting software products and services to market quickly, cutting product development costs, while continuing to maintain high standards for flexibility, nimbleness, and time-to-market – this is leading to a tremendous increase in interest around Agile development.
Many organizations have already adopted Agile to some extent within their organizations. According to Forrester’s Forrsights Developer Survey Q1, 2013, 19% of developers stated they use Agile (Kanban, Scrum, TDD, XP). However, most of these initiatives are primarily in-house – Forrester’s Agile Survey Q3 2013 showed that the majority of organizations continue to use Agile more widely in-house, than with systems integrators.
SAP is betting that its future lies in the cloud. While the company still books just 5% of its global revenue from cloud services, SAP is putting the cloud at the center of its growth strategy, unveiling new business models and initiatives aimed at increasing the cloud consumption of its applications. To facilitate this, SAP is making it easier for clients and partners to embrace the cloud. For example, its cloud extension policy allows customers to reallocate existing license seats to a cloud subscription. Clients can unlock the stored value of unused licences and put it to work, giving end users access to meaningful applications in the cloud.
What It Means
SAP has a number of cloud services on offer, and the changes the company is making to pursue its high-growth strategy in Asia will not only transform SAP’s business model, it will also change how its partners do business. Client organizations in Asia will also have to adapt and:
Although Brazil’s IT sector has frequently been compared as an up and coming challenger for India’s share of the offshore pie, Brazilian vendors are keener to position themselves as potential local partners rather than as nearshore alternatives. The reasoning is simple - with tremendous opportunity for growth existing locally, there is less motivation to pursue growth in untested and unknown markets. According to statistics provided by Brasscom, the domestic market for ICT is pegged around $123 billion in 2012 with a growth rate of about 10% year-on-year[i]. Moreover, the vendors lack serious muscle in terms of scale, and factors like limited availability of resources and an inability to differentiate on cost adds to this reluctance to compete with Indian offshorers.
Brazilian vendors differentiate on expertise in local market
The raison d'être of the Brazilian IT sector is quite different from that of India and is heavily focused on providing solutions and services to the huge domestic market that exists both within the country and in the rest of Latin America (Latam). Some key features of Brazilian vendors are:
Strong focus on local business’ needs. Most of the businesses in Brazil fall in the small and medium enterprise (SME) category and require a high level of customization of solutions and services to meet requirements, especially around local language interfaces and support. Most Brazilian vendors are very flexible and accommodative of these small clients’ needs for customization and for individually tailored pricing and delivery models.
The classic work of Chinese historical fiction “Romance Of Three Kingdoms” describes the history of China after the Han dynasty. This work focuses on three power blocks that fought against each other in an attempt to be the dominant kingdom. After my discussions with many users and vendors at the OpenStack Summit 2013, I see an analogy between these three kingdoms and the evolution of the IaaS market in China as I described it in my report “PaaS Market Dynamics In China, 2012 To 2017” early this year.
Three categories of players are emerging in public cloud market in China, and similar to the Three Kingdoms, these players will fight against each other and collaborate at the same time, accelerating both the adoption and the maturing of cloud solutions in Chinese market.
State of Shu: Amazon Web Services. The king of Shu was the descendant of Han dynasty before the era of the Three Kingdoms; because of his “royal blood,” he had many supporters and followers to fight against the other two kingdoms.
Amazon.com is in a similar situation: It has very good reputation among architects and developers in China. However, Amazon’s promotion activities are lagging. Amazon is trying to expand its cloud territory into Chinese market by building a data center in Beijing and recruiting local personnel. However, its relationship with the government is not as good as Microsoft’s, and Amazon’s ambition to launch AWS in China has been slowed down due to local regulations.
State of Wu: Microsoft Windows Azure and its alliances. The state of Wu is competitive because it has the natural advantage of the Yangtze River, helping it defend against invasion and expand its territory.
What if you wanted an app on your phone or tablet and it wasn't available?
Sounds ludicrous given the million apps available in the app stores. But it's not ludicrous. It's commonplace. The world has 188 million active public Web sites and probably at least that many internal sites. And each one of those sites has (I'm betting) five or maybe 25 different tasks buried in it (each one of which could be an app). Let's do the math real conservative like:
(188 million public Web sites + 188 million internal Web sites) x 5 tasks per Web site = 1.9 billion potential smartphone and tablet apps
And we have 1 million apps today, a ratio of almost 2,000:1. We have a humongous app gap, defined as:
When people want applications on a mobile device but find those apps aren't available.
Entrepreneurs do their best to plug the app gap when established companies can't or won't see the opportunity. That's what's driving apps like Evernote, Dropbox, Flipboard, Uber, RoamBI, TripIt, and Expensify.
At home, the app gap might lead to a disruption in your market. If you're not serving your customer on a mobile device, maybe a digital disrupter will. (Yes, I know many Web designers are busily adapting some of the almost 400 million sites to work great on mobile devices. It hasn't plugged the app gap yet.)
In business, the app gap is challenging because employees are happy to plug the app gap at work themselves. That's why they bring their own apps. Here's what it looks like:
Apple's Siri for iPhone and iPad, Google Now for Android, Samsung S-Voice for its Android phones and tablets, and Microsoft's Xbox/Bing voice command have all played a role in popularizing the use of voice control. Forrester’s workforce survey reveals that 37% of information workers who have smartphones say they use voice command at least occasionally. So voice control is already a mass-market behavior.
But users haven’t truly embraced voice control just yet: Only 3% of information workers say they "use it all the time," while only 1% claim it's their "preferred way to use a phone." When they do use voice control, it’s for short-task computing activities like sending a text, conducting a quick search, or activating maps and navigation. As of today, voice control remains a nice-to-have, an adjunct to “real” computing interfaces.
But in a new Forrester report published today, we argue that voice control itself isn’t the main story. Rather, it’s about the new breed of data-rich intelligence – which we call intelligent agents – that will bring voice control to the masses.
With Dane Anderson, John Brand, Tim Sheedy, Clement Teo, and Bryan Wang
During his keynote at Telstra’s recent annual analyst event in Sydney, the CEO compared Telstra’s customer advocacy strategy to a triathlon that the firm has just begun. We believe this is a fitting analogy for progress communicated at the event. Our main observations are:
Telstra’s transformation remains a work in progress. Telstra is not unique from other incumbent telcos that transform away from traditional — and declining — sources of revenue. Its strong domestic position seems secure for now. But its prospects in new market categories, both inside and outside of Australia, are less certain. Telstra is not particularly innovative compared with telcos in the US or Europe. Yet Telstra benefits from a credible transformation strategy, which it is gradually implementing. For instance, Telstra has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
Telstra ought to use its Net Promoter Score to drive cultural change. Its strategic goal to push for world-class customer advocacy is a key differentiator and convincing. However, we believe Telstra needs to use the NPS also as a driver of internal cultural change. For instance, Telstra should analyse transactional processes of device purchasing from branded retail stores. Moreover, Forrester research indicates that NPS has limits when it comes to explaining the “how” and “why” of customer experience.
Over the past few years, IBM has certainly copped its fair share of criticism in the Asian media, particularly in Australia. Whether this criticism is deserved or not is beside the point. Perception is reality — and it’s led some companies and governments to exclude IBM from project bids and longer-term sourcing deals. On top of this, the firm’s recent earnings in Asia Pacific have disappointed.
But I’ve had the chance to spend some quality time with IBM at analyst events across Asia Pacific over the past 12 months, and it’s clear that the company does some things well — in fact, IBM is sometimes years ahead of the pack. For this reason, I advise clients that it would be detrimental to exclude IBM from a deal that may play to one of these strengths.
IBM’s value lies in the innovation and global best practices it can bring to deals; the capabilities coming out of IBM Labs and the resulting products, services, and capabilities continue to lead the industry. IBM is one of the few IT vendors whose R&D has struck the right balance between shorter-term business returns and longer-term big bets.