Data Management Platforms Go Mainstream

Jennifer Adams

The holy grail of digital advertising is accurately determining who to target, when to target them, and what products to highlight. Data management platforms (DMPs) facilitate smarter media buying by unifying data from multiple sources to allow more accurate and detailed audience segmentation. In our recently published Ad Technology (Data Management Platforms) Forecast, 2016 To 2021 (US), we take a more in-depth look at the market. We examine demand for DMPs that support the programmatic advertising ecosystem, including platforms from vendors such as Adobe, Google, IgnitionOne, Krux, Lotame, Neustar, Oracle, and Wunderman (KBM Group). We conclude that:

DMPs have hit a tipping point, driving continued robust growth. While the US DMP market is relatively small at $500 million, we expect to see robust 43% annual growth over  the 2015 to 2021 period. We believe DMPs reached a tipping point in the past year or two as both marketers and publishers became increasingly aware of their benefits. CMOs are focusing on improving their marketing and advertising ROI, and DMPs demonstrate tangible value by clearly organizing data into taxonomies, identifying intent to purchase, and yielding higher conversion rates.

Read more

Innovation Management Solutions Push Innovation That Creates Both Change And Value

Dan Bieler

Source: The Forrester Wave™: Innovation Management Solutions, Q2 2016

Innovation that only creates change is just that — change. When we asked firms about their major business objectives, 37% claim that product and service innovation is central to their business transformation.

But old-style innovation will be very tough to maintain. To exploit business value from digital technologies, innovation managers need to increasingly think in open ecosystems, open standards, open platforms, and open source software. Digital innovation equals service innovation, which in turn requires a willingness to experiment and engage in minimal-viable-product thinking, because:

  • As customers’ demand changes more quickly, innovation cycles must get shorter. Fast software innovation will “eat” slow hardware innovation given the ever greater role that software plays for today’s business value creation. An innovation management solution supports decision sessions and real-time voting and collaboration to quickly validate or gauge the interest of organizational priorities in short sessions. Organizations need to be willing to fail fast, be able to work iteratively on product and service improvements, run idea experiments based on soft-launches, and get feedback on innovation efforts via external feedback loops quickly.
Read more

Pega Buys OpenSpan: Watch Out - RPA Vendor Landscape Is About To Change

Craig Le Clair

Enterprises, in their quest to reduce labor costs, are applying RPA technologies. Yet they do not have a well-defined set of principles and best practices, including how to position RPA with other process tools and initatives. Today it may have become a bit more clear. Pega is the first tech provider, and only BPM market particpant of substance, to purchase an RPA provider (OpenSpan). The combination brings robotics, analytics, and case management together - and that makes sense. Think of Pega's process/rules capibility firing off a set of RPA scripts.

RPA in many respects is an alternative, some would say the polar opposite of Pega's current business model that feasts on the transformitive "big IT spend" for BPM, case management, automation, and customer service projects. RPA does not require invasive integration. It is a quick hit for automation, a “low touch” approach for process improvement for brittle legacy systems. The bottom line. Enterprises that employ labor on a large scale for process work can gain efficiencies by just automating repetitive human tasks for the “as is” process.

OpenSpan is nice pick-up for Pega that will help with back-office BPM work, but more so with contact center environments where the agent requires human and machine multitasking that often spans multiple windows and web applications, few of which are integrated with each other. Cumbersome process flows, rekeying of data, and lack of integration add up to lengthy call times, reduced accuracy, and an overall increase in customer frustration. Pega/OpenSpan will give Jacada and NICE a run for their money, and the future integration with Pega's analytics tracks where the RPA space is heading.

Read more

Oculus’ Botched Launch Harms The VR Ecosystem

JP Gownder

April 12, 2016: The day Oculus updated its Rift shipment timeframe for customers. As has been widely reported, Oculus customers face widespread months-long delays in the deliveries of their virtual reality headset purchases. To add a personal anecdote, I ordered within the first 5 minutes of the pre-launch window (once the web site started working, which it didn’t at first), and my Rift shipment has been delayed from March 30th to “between May 9 and 19th,” assuming Oculus actually succeeds in meeting its new dates.

While my personal Rift delay is merely an annoyance, the botched launch has real repercussions for the VR ecosystem. Oculus’ delay:

  • Hurts developers of games and apps. The diversity and depth of the VR developer ecosystem is impressive. While many developers focus on games – logically enough, since that’s a key early adopter demographic – others offer applications ranging from clinical treatments for PTSD to collaboration in virtual spaces. The common denominator? None of these developers are making money if there are no headsets available. And while many apps can be ported to other platforms, Oculus has been the centerpiece of many developers’ high-end VR efforts.
  • Hurts media startups and innovations. Media, too, sees a potential loss. While some media companies go the route of the New York Times and focus on Google Cardboard phone-based VR, others are counting on developing truly immersive experiences that simulate presence. Studio Jaunt VR has an Oculus app that, again, won’t be addressable until customers receive their Rifts.
Read more

CIOs must operate at the speed of the customer

Fred Giron

Digital transformation is about reinventing the business model of your company. It’s an end-to-end transformation that moves at only one speed: the speed of the customer. Back-end systems are not immune from these pressures, somehow shielded from change as customer-facing systems and processes innovate quickly to keep up with fast-changing customer behaviors.

Forrester believes that the pursuit of two-speed IT (aka bimodal IT) is a trap for CIOs. My colleague John McCarthy recently published a report that explains why CIOs need a single, bolder business technology (BT) strategy to accelerate innovation and simplification, not a two-class system that adds more silos of complexity (Forrester clients can have access to the report here).

At a recent CIO event organized in Singapore with our partner Odgers Berndtson, we shared the results of this research and related case studies. The audience was in agreement with this call, best illustrated by two examples that were shared during the discussion:

  • Two-speed operations break the best unified customer experience intent. The head of digital for a life insurance provider mentioned how his team did a great job creating a digital only policy purchasing capability enabling customers to purchase a life policy within 15 minutes online. Unfortunately, it then takes about 2 months for the operational teams to come back to the customer with the actual policy due to slow back-end systems moving at yesteryear speeds. Once the complete engagement has been executed, most clients are lost.
Read more

Bots: The Next Big Thing In Mobile? Not So Fast.

Michael Facemire

Everyone is buzzing this week about bots with Facebook/Messenger’s anticipated launch of bots on its messenger platform. What is a bot you ask? A bot is a chat-based interface that helps consumers complete tasks -- ordering take-out food, chatting with their doctors, or checking the score of a big sports game. Many believe that this next step -- bots in conversation with consumers -- is imminent. We agree, but not so fast.

There are a few trends playing in favor of bots becoming the next big user interface:

  1. Apps put a huge burden on consumers. The app ecosystem forces consumers to orchestrate getting the content and services that they need -- sometimes in a single app, most times through a composition of many. And this doesn’t even address individual app quality -- too many of them are simply awful. We're forced through processes translated from online that make no sense on the go or on our mobile phones.
  2. Bots foster natural communication. Having a bot is like having an assistant. You can chat with the bot, ask the bot to do things for you -- like order take-out or get a new lipstick. They are a natural extension of how we communicate and use our mobile phones.
  3. Consumers spend 84% of their time in only five apps each month. Chances are that one or two of those are social media, instant messaging,etc., as a handful of mobile giants like Facebook, Google and Apple in the US own a disproportionate number of customers mobile moments, measured both by time and data. Consumers are asking for a better experience.
Read more

Envision 2016: Microsoft Pushes Beyond IT

Nigel Fenwick
Where was HololensThis week in New Orleans, Microsoft launched it's first conference aimed squarely at business leaders as the company looks to move beyond the department of the CIO. Envision 2016 replaces Microsoft's previous Convergence conference and comes on the heels of "Build2016" the previous week.
 
As a guest of Microsoft, I had two reasons to attend Envision: First, to hear from CEO Satya Nadella and other Microsoft executives; I wanted to better understand their business strategy going forward, specifically as it relates to enterprise customers. Secondly, I had the opportunity to provide feedback to Microsoft leaders on its enterprise marketing strategy.
 
It was no doubt clear to attendees that Microsoft wants a relationship with enterprise customers beyond the office of the CIO. Based on Satya's opening keynote, there is a recognition that Microsoft must become a more strategic business partner, helping today's CIO clients work alongside their line-of-business peers to deliver on the promise of digital business. 
 
Read more

Businesses Need To Prepare For New Digital Realities

Dan Bieler

Photo: Bergmann

At Mobile World Congress 2016, GE outlined some fundamental insights about the digital transformation efforts of industrial businesses. William Ruh, CEO for GE Digital, a US$6 billion business of General Electric, shared valuable insights about the digital transformation process that industrial businesses need to tackle.

Businesses must focus on those activities that they can transform into digital business models. Not every industrial activity can become a digital business, but it will be impossible to succeed in digital transformation by developing a digital business and an industrial business and then operating them side by side indefinitely. GE sold 40% of its business activities because it felt that it could not transform them into digital businesses. For those industrial activities that can become digital businesses, executives need to be aware that:

  • Every industrial worker has to develop digital DNA. Industrial workers and mechanical engineers have to be comfortable interacting with digital systems. At GE, mechanical engineers have to design a locomotive in such a way that they can place a local data center inside it. Every industrial worker will have to have analytics skills, whether that’s the ability to create sensible and reliable data sets or to analyze and interpret these data sets.
Read more

Digitizing The Car: Why Auto-Makers Are On The Wrong Track

Nigel Fenwick

Autocross

I’m a bit of a car nut. I love driving cars. So does my wife. We both autocross one of our cars most weekends in the New England summers (FYI AutoX is a great way to hone your driving skills and be a safer driver). We love our cars and I’m pretty passionate about the whole driving experience.

As a car junkie, I love the fact that automakers are bringing digital experiences to their cars, but I can’t help thinking they are going about it all backwards – or as we say at Forrester, from the inside out.

In my post from CES this year, I noted that every single automaker seems hell-bent on making the car the center of their customer’s digital world. No doubt manufacturers hear the siren call of customer data; imagining all that they could do with such rich information. But it’s inside-out because, even for car-lovers like me, the car is not the center of my digital universe and I doubt it ever will be. Why? Because my car doesn’t go with me wherever I go. But you know what does? My phone.

Read more

Why High Performance People Need High Performance Technology

David Johnson

My colleagues and I have spent the last four years studying the links between technology, human performance at work, customer experience, and the financial performance of companies. One fascinating insight we’ve learned is that what separates the highest performing people in their work from others is their ability to reliably focus their attention, bringing more of their cognitive resources to bear on their work each day than their colleagues do. It’s not easy in our distraction-rich, techno-charged world.

There’s plenty of research that proves that happy employees are more productive, but Drs. Teresa Amabile and Steven J. Kramer made an important discovery in 2010 that turns conventional wisdom about where happiness at work comes from, upside down. The most powerful source of happiness at work isn’t money, free food or recognition, but rather getting things done; making progress every day toward work that we know is important. The more conducive our work environment is to staying focused, and the better we are at suppressing the sources of distraction within ourselves to get our most important work done, the happier we will be at work. And, the effect is even stronger for work that requires creativity and problem solving skills.

Unfortunately in our workforce technology research, technology distraction isn't on the list of things leaders are concerned about. It should be, because the most pernicious sources of distraction employees face are the ones that lie beyond their control - the distractions that originate from the technologies their employers require them to use, when there are no alternatives.

Read more