For Australian IT Shops, 2014 Is About Customer Obsession

Tim Sheedy

I regularly hear CIOs and IT suppliers discussing the “four pillars” of cloud, social, mobile, and big data as if they’re an end in themselves, creating plenty of buzz around all four. But really, they’re just a means to an end: Cloud, social, mobile, and big data are the tools we use to reach the ultimate goal of providing a great customer experience. Most CIOs in Australia do understand that digital disruption and customer obsession are the factors that are changing their world, and that the only way to succeed is to embrace this change.

We recently published our predictions for CIOs in Asia Pacific in 2014 (see blog post here). Our entire analyst team in region was involved in the process — all submitting their thoughts and feedback. Here are some of our thoughts about Australia in 2014:

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Where Is IBM’s Sweet Spot In Asia Pacific?

Tim Sheedy
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.
 
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Telstra Analyst Event 2013: Many Rivers To Cross

Clement Teo

Telstra hosted its annual analyst event in Sydney on October 23 and 24. In his keynote address, CEO David Thodey compared Telstra’s customer advocacy journey to a triathlon that the firm has just begun, which we believe it a fitting analogy for Telstra’s progress on the path it has set for itself. The company is clearly in the race and making progress, but still has many miles to go.

While the company shared a broad spectrum of initiatives, our main observations are that Telstra:

  • Has made clear progress since our check-in last year, but its transformation remains a work in progress. Telstra is no different than other incumbent telcos working to transform beyond traditional — and declining — sources of revenue. Its dominant position in Australia is secure, but its prospects in new market categories inside and outside of Australia are less certain. We do not believe that Telstra is particularly innovative compared with service providers in the US or Europe, but we do believe that it has a viable transformation strategy and is making progress. Its progress in the Australian media and entertainment industry, including its Foxtel investments, is impressive — it has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
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It's Time Digital Banking Teams Took Games Seriously

Benjamin Ensor

Rachel RoizenThis is a guest post from Rachel Roizen, a researcher serving eBusiness & Channel Strategy professionals.

Gamification, which Forrester defines as the insertion of game dynamics and mechanics into non-game activities to drive a desired behavior, has rightfully been a hot topic of debate in many roles and many industries. We’ve blogged about it here, and written reports on success stories ranging from Club Psych on the USA Network to the use of games in education

The banking industry has been using some features of gaming for years, such as by offering redeemable points based on credit card purchases, but some remain wary of combining games with finances. Forrester’s view is that game mechanics can be used to draw in new and existing digitally connected customers. Digital teams at financial firms that have begun experimenting with gamification are seeing positive results, including increases to online engagement, online banking use, product sales, and social influence. Here are four leading firms that are betting on gamification and implementing it in innovative ways:

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Does ITSM Still Have Relevance In The Empowered BT Era?

Tim Sheedy

In August this year I am heading down to our nation’s capital to take part in the annual itSMF Australia event – LEADit. I have taken part in this event to a greater or lesser extent over the past few years across Australia – Sydney, Perth, the Gold Coast and now Canberra. As an analyst who broadly covers the Service Management space (as well as a previously ITIL qualified practitioner), this event is the mecca for those interested in service management in Australia.

Year after year at this event, I see a fair amount of change in the content and focus, but little change in the thinking, and little real movement in the implementation or improvement of the processes – a recent survey between itSMF-USA and Forrester displays the current maturity levels of processes in organisations:

Here we are – years (decades?) after the first ITIL books were written, and demand management is STILL immature. Even financial management has barely shifted in maturity over the past few years. Why is this the case?

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Kaching Lowers The Barriers To Mobile Payment Adoption

Benjamin Ensor

Kaching iconTen years ago, Forrester published some research with the slightly awkward title of ‘New Payment Systems’ Survival Guide’. One of our findings was that many successful new payment systems have some kind of ‘must-have’ transaction that encourages customers to go through the hassle of learning how to use a new system in the first place. Good examples of ‘must-have’ transactions include eBay’s auctions for PayPal, travel to work for Transport for London’s Oyster, and online shopping for iDeal.

Ever since, I’ve been seeking the ‘must-have’ transaction that will spark consumer adoption of mobile payments in developed economies. But what if there isn’t one? (And, after 10 years, it’s probably time to admit that there isn’t). The answer is to focus relentlessly on both lowering the barriers to mobile payment by making it as easy as possible for customers to use a new system and to increase the benefits by maximizing the number of ways and places customers can use a system.

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To Drive IT Spending, Target The Business!

Fred Giron

Last week, Forrester hosted a breakfast roundtable in Sydney for approximately 20 tech vendors seeking to capitalize on current IT spending trends in Australia and New Zealand. With expected IT spending growth of nearly 4% in 2013, the A/NZ market is still going strong. However, this good health hides major shifts, including the increased role that business decision-makers (BDMs) are taking in direct IT purchasing in areas like staff, products, and services. As a matter of fact, Forrester expects the percentage of IT budgets that IT directly owns or controls to decrease by 2% to 5% between 2012 and 2014 in most A/NZ organizations.

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Five Key Areas Will Dominate Enterprise Mobility Investments In Asia Pacific In 2013

Katyayan Gupta

Across Asia Pacific (AP), expanding mobility support for employees, customers, and/or business partners will be the top strategic telecom priority for enterprises in 2013, surpassing other telecom priorities like performing network management and consolidating operations equipment, rationalizing/consolidating telecom/communications service providers, and moving communications applications to the cloud.

While enterprises will invest in a range of mobility products and services, there are five key areas in particular which will attract the most investment in 2013. Vendors need to focus on the solutions and engagement models that meet customers’ needs in these five areas and target the industries and countries where the demand will be greatest:

  • Business consulting services. Specifically for defining a formal enterprise mobility and/or BYOD program strategy, including devices, applications, data access, and provisioning. Moreover, AP organizations will likely need help in drafting compliance and legal policies related to enterprise mobility.
  • Telecom expense management solutions. This is one of the most critical telecom requirements for AP CIOs in 2013. Across the region, 50% to 60% of organizations pay the entire cost of voice and data services for company-supported Android and iOS phones and tablets. For BlackBerry phones, this proportion is nearly 70%.
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How To Encourage Mobile Banking Use

Benjamin Ensor

When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?

  • Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
  • Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
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Asia Pacific Tech Market To Grow By 4% In 2013

Fred Giron

The Asia Pacific (AP) growth engine did not fire on all cylinders in 2012, leading Forrester to revise its IT purchases growth forecasts for the year. While Australia, South Korea, and several ASEAN tech markets are showing continued solid growth, in other markets like China, India, Japan, Malaysia, and Vietnam, political leaders are struggling in the face of growing economic problems. My colleague Andy Bartels and I, with the help of Forrester’s AP analyst team, have recently published our revised IT purchase growth forecasts for 2013. Here are our key expectations by country:

  • 2012’s slowdown in China will be short-lived. Despite a slowdown in 2012, China continues to attract intense vendor interest because of its size and potential for further growth. The expected government stimulus efforts in the country will offset factors such as weak demand from businesses and governments. The slowdown in 2012 (+9%) is therefore likely to be short-lived, with stronger growth resuming in 2013 (+10%).
  • India’s IT growth will remain slower than expected through 2014. 2012 (+7%) was a relatively lackluster year for the tech market in India. Worse than expected economic growth, combined with political gridlock on economic reforms, kept the tech market from reaching its full potential in 2012. While we expect the public sector to drive India’s IT spending growth, the impact will be limited through 2014 due to the parliamentary elections scheduled for that year.
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