You Think Changing To Increase Business Agility Is Hard? If IOR Did It, Believe Me: You Can Do It Too

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Diego Lo Giudice

Think of a medieval fortress: It was originally used for a small army, it has walls nine meters thick, and it’s surrounded by buildings hundreds of years old. Upon entering, you are confronted with the concept of eternity.

This fortress is located in the smallest state on earth — though it is also perhaps the best-known state in the world. The business housed within the fortress is what many might classify as a SME but with with complexity of a large enterprise, holy but busy, centralized but truly global — its work spans hundreds of countries with hundreds of currencies and hundreds of languages — and it serves very special and demanding clients.

Have a clue yet of where we are?

Zoom on Italy, then zoom on Rome, then zoom on Vatican City, and you can’t miss the round tower (Torrione Sisto V) where the Vatican Bank, or Istituto per le Opere di Religione (IOR ), is located. You won’t be allowed in if you are not a client, an employee, or part of a religious congregation. Change comes hard to institutions this steeped in tradition. To give you a clue, IOR’s previous managing director spent his entire career at IOR — 60 years — and retired at the age of 80. We all know it’s the soft and cultural aspects of transformation that are the hardest part for any organization.

Nevertheless, IOR has been going through a major change since 2008, working to replace its legacy IT system with a modern BT one. The new BT system brings more flexibility for the business, richer business functionality, and greater integration and development capabilities. Enabling fast change is the key driver for IOR’s IT transformation program from IT into BT.

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Transform Business Processes For Breakthrough Customer Experiences

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William Band

I’ve just finished up several months of research digging into the best practices of how leading organizations aspire to implement outside-in, customer-focused, cross-functional processes that transform the organization and set it on the path toward continuous improvement. At the core of this trend is a desire by these organizations, especially in services industries, to domesticate their “untamed” or “invisible” processes that touch customers.

In talking with nearly 30 organizations, consulting companies, and solution vendors, I found that instead of deploying slow-to-change packaged applications or building difficult-to-change custom solutions, leading organizations are embracing business process methodologies — supported by process-centric IT platforms. They are striving to drive rapid process change, increased business engagement in IT projects, and achieve dramatic improvements in worker productivity.

In my new report, I define more than 30 best practices that organizations can use to support their transition to process-centric customer CRM. Here are few of them:

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The Top Thirteen Customer Management Trends For 2012

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William Band

What are the key trends that CRM trends that business and IT professionals need to pay attention to in setting their plans during 2012? Here are the top trends that I am tracking. My full report that spotlights our latest research and recommendations for how to compete in The Age of the Customer will be published in late January.

1. Customer experience management will move beyond aspiration to strategy. More organizations will move beyond empty goals like becoming “customer-obsessed” to define clear and actionable customer experience strategies. The strategy must meet three tests: 1) It defines the intended experience; 2) it directs employee activities and decision-making; and 3) it guides funding decisions and project prioritization.

2. Brands will embrace the experience ecosystem. Firms will move to break free from their organizational silos, invest in understanding customer moments of truth through journey-mapping, and embrace the concept of the “customer experience ecosystem” — one that considers the influence of every single employee and external partner on every single customer interaction.

3. Experience management will emerge as a management discipline. There is increasing acceptance of the idea that customer experience management can be thought of as a discipline — a set of sound, repeatable practices such as those are defined in Forrester’s Customer Experience Maturity Framework.

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Five Axioms For Application Development In 2012

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Mike Gualtieri

Software Is Not Code; It Creates Experiences

Ultimately, customers don't judge you based on how well you gather business requirements, choose development technologies, manage projects, or march through the development process — they judge you based on how they feel before, during, and after they use your software. This is the digital experience. If you get the customer experience wrong, then nothing else matters. And expectation inflation is sky-high thanks to the Apple-led smartphone revolution. To succeed in the new age of digital experience, application development professionals must collaborate with their business partners and customers to create experiences that customers love. You need a new approach represented by these five axioms:

  1. Software is not code; it creates experience.
  2. Development teams are not coders; they are experience creators.
  3. Technical talent is table stakes; great developers must be design and domain experts.
  4. Process is bankrupt without design; you get what you design, so you had better get the design right.
  5. Software is a creative endeavor, not an industrial process like building automobiles. Structure your methodology to empower your creative talent.

Doable? Definitely. Forrester clients can read the full report to learn how: Digital Experience Strategy: Follow These Three Mega Rules To Beat The Competition In 2012.

What Is The Value Of Agile In Your Organization?

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Tom Grant

From: Forrester Analysts Tom Grant and Diego Lo Giudice
To: App dev and delivery practitioners, especially ones with Agile experience
Re: It’s time for us to take another look at the value adoption, and we’re inviting you to join our survey

Starting around 2009, Agile moved into the mainstream of software development methodologies with startling speed. Today, Forrester’s data shows approximately 38% of developers have adopted Agile across a wide range of industries. The demand for Agile is so great that it has broken through many potential barriers, including ones such as compliance. As year-to-year growth of Agile adoption continues, it’s clear that a lot of teams are seeing a lot of value in Agile. But what kind of value? In some of our earlier surveys about Agile, it was clear that velocity was only one of several perceived benefits.

For example, Scrum is far and away the most widely adopted flavor of Agile. Scrum focuses on how teams organize themselves and how they organize their work. For teams that have struggled to make accurate estimates or adapt to changes to the backlog, the attraction of Scrum isn’t just velocity.

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"Using Working SW As The Measure Of Progress Is Narcissistic...." How Do You Measure The Value Of Agile Instead?

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Diego Lo Giudice

Hi all,

My colleague and friend Mike Gualtieri wrote a really interesting blog the other day titled "Agile Software Is A Cop-Out; Here's What's Next." While I am not going to discuss the great conclusions and "next practices" of software (SW) development Mike suggests in that blog, I do want to focus on the assumption he makes about using working SW as a measurement of Agile.

I am currently researching that area and investigating how organizations actually measure the value of Agile SW development (business and IT value). And I am finding that, while organizations aim to deliver working SW, they also define value metrics to measure progress and much more:

  • Cycle time (e.g., from concept to production);
  • Business value (from number of times a feature is used by clients to impact on sales revenue, etc.);
  • Productivity metrics (such as burndown velocity, number of features deployed versus estimated); and last but not least
  • Quality metrics (such as defects per sprint/release, etc.).
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Agile Software Is A Cop-Out; Here’s What’s Next

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Mike Gualtieri

Never has a new trend annoyed me as much as Agile. Right from the get-go, the Agile Manifesto revealed the weaknesses and immaturity of the founding principles. The two most disturbing: “Working software is the primary measure of progress” and “Business people and developers must work together daily throughout the project.” These are

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Goodbye Yellow Brick Road?

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George Lawrie

Most Forrester readers certainly understand the importance of empowering their employees to contend with highly informed and increasingly demanding customers. But I’m often asked just how to overcome the process and data integrity challenges of apps or services that empower employees and/or drive continuity of experience for consumers across channels. With the rise of mobile as well as web and call center interactions and with a proliferation of new tools for managing distributed processes and data, most application development and delivery professionals as well as their business process and applications colleagues have to absorb all the arguments before they make decisions that could be critical to their firms’ futures – to say nothing of their own careers.

One pioneer whom I interviewed was immensely proud of his lightning rollout of a guerilla app to support his firm’s front office in advising clients on complex product choices. I asked him about future plans and sheepishly he admitted they would be starting again from scratch because the guerilla app was unable to leverage enterprise services exposing critical data about product offerings. He remarked ruefully that sometimes you do have to follow the IT standards “yellow brick road” rather than just head for the hills, but wouldn’t it be great to have the best of both worlds, with both agile deployment and full advantage taken of enterprise assets and data?

If you need a deeper understanding of the issues and options, then I’d like to invite you to join us at Forrester's Application Development & Delivery Forum, where my colleague Clay Richardson and I will discuss in practical terms how to deliver integrated experiences across multiple touchpoints.

Time For Marketers To Move To Adaptive Planning?

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Luca Paderni

Marketing planning has changed little in the past century. It's essentially a linear process built on the development of rigid 12-month plans built around brand and channel metrics. This approach is coming increasingly under strain as the combined effects of the growth of digital marketing platforms and a volatile economy demand marketing plans that deliver clear business outcomes and can adapt and improve to meet evolving market dynamics.

Over the past 12-18 months, we have come across several marketing organizations that have decided to do something about this situation and look for new ways to improve their approach to marketing planning by adopting some principles borrowed from a relatively new methodology originally conceived for software development efforts: agile development.

From the interviews that we did with marketers that are experimenting with this new approach, several of the key principles of "agile" development looked particularly relevant to innovating their approach to marketing planning:

  • A clear definition of business outcomes and associated business metrics
  • A dedicated cross-functional team
  • A deliberate test-and-learn approach
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Balancing Design And Agility For Customer Success

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Dave West

How many times have you heard the following phrases?

  • “This software bites.”
  •  “Why is software development always delayed?”

Both sentiments describe the need to design and build software that provides a great user experience (UX) and that is delivered in a timely manner. Luckily, there are two communities focused on both of these goals:

  • The user experience gang focuses on designing software the users find useful, usable, and desirable.
  • The Agile camp focuses on delivering working software to expose functionality that users can test.
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