Customers expect digital experiences to accompany the physical products and services they purchase in today’s highly competitive business market. They want these digital platforms to be personal, easy to navigate, and valuable — regardless of how difficult it is to create and maintain such an experience! That’s why companies looking to create a customer- or partner-facing digital platform need a digital platform engineering services (DPES) partner to guide them through these multifaceted projects that often transform a business.
Digital platforms take a range of forms: internet of things (IoT) platforms, digital experience platforms, eCommerce platforms — basically any digital touchpoint that directly interfaces with customers and partners qualifies. What’s similar across this array of digital platforms is the deep technical talent and experience necessary to design, build, and implement them.
We surveyed seven leading DPES vendors and 48 of their customers for The Forrester Wave™: Digital Platform Engineering Services, Q2 2016, available to Forrester clients. The Forrester Wave is an objective methodology to evaluate competing services. The analysis that determines vendors’ placement is based on data gathered from customer interviews and surveys, briefings from vendors, and analyst expertise. For more information on the DPES market, look for my upcoming brief “Software Skills Are Top Of Mind For Digital Platform Engineering Customers” in May 2016 and a webinar on the Forrester Wave report early this summer.
Our bi-yearly Forrester Agile survey suggests that Agile development (or simply "Agile") continues to see consistent, strong adoption. However, the same survey data shows that only a small percentage of firms are outsourcing Agile application development due to a lack of experience with the development sourcing approaches and governance models needed to make it work. Successfully outsourcing Agile development, either fully or partially, involves redefining roles and responsibilities, change management processes, metrics and SLAs, service descriptions, and other contractual elements. Merely using traditional outsourcing language and practices risks jeopardizing the benefits of Agile. There is no single way of doing this right.
Agile and Lean transformations depend to a great extent on cultivating a good sourcing ecosystem. The decisions you make around the partners and providers supporting your transformation and projects will be at the core of a successful strategy. But sourcing strategy needs to go beyond just resource or services providers (read outsourcing) and address a larger ecosystem made of Agile SW development and delivery choices, collaboration and communication capabilities for distributed teams, and teams' physical work spaces, standard equipment, and office layout.
In September, I published a report on how to source your Agile strategy, that describes what the ecosystem looks like and how to navigate it effectively, the document is part of our larger research container on Agile - The Agile and Lean Playbook. The report gives an overview on how large vendors, SIs, and medium to small consulting organizations can (not) help you with your Agile journey but also what you need to do to be successful. Here are some of the takeaways from the research:
What you think about Agile and Lean might not be what your SI thinks. You need to take control of your own destiny with Agile and Lean. Change your application development and delivery sourcing strategy to embed the best talents around the world to help you make it happen. But be careful with the traditional SIs, because Agile is as disruptive to them as it is you, and if they have not been seriously transforming themselves, it will be hard for them to deliver Agile services to you. Some good alternative new fully Agile players exist, including highly specialized external consulting firms. You might want to start testing the ground with these options.
Last December, I published three things I'd tell your CIO. Since then, I've spent time with dozens and dozens of sourcing and vendor management professionals, CIOs, and leaders of application development and delivery, including last week's Paris Forrester Forums. Most days, I share our ongoing research on what impact today's software-fueled, consumer-led digital disruption has on your ability to meet and exceed the expectations of your customers and the employees serving them. For some folks, software and software development remains a commodity. But for many, the need to deliver great software has taken hold of 2013 planning discussions. With July just around the corner, and as you start 2013 planning, focus on what you need to start delivering great software (remember, software is your business), and keep these three things I'd tell you and your CIO in mind: