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.
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: