The battle over customer versus internal business processes requirements and priorities has been fought — and the internal processes lost. Game over. Customers are now empowered with mobile devices and ubiquitous cloud-based all-but-unlimited access to information about products, services, and prices. Customer stickiness is extremely difficult to achieve as customers demand instant gratification of their ever changing needs, tastes, and requirements, while switching vendors is just a matter of clicking a few keys on a mobile phone. Forrester calls this phenomenon the age of the customer. The age of the customer elevates business and technology priorities to achieve:
Business agility. Forrester consistently finds one common thread running through the profile of successful organizations — the ability to manage change. In the age of the customer, business agility often equals the ability to adopt, react, and succeed in the midst of an unending fountain of customer driven requirements. Forrester sees agile organizations making decisions differently by embracing a new, more grass-roots-based management approach. Employees down in the trenches, in individual business units, are the ones who are in close touch with customer problems, market shifts, and process inefficiencies. These workers are often in the best position to understand challenges and opportunities and to make decisions to improve the business. It is only when responses to change come from within, from these highly aware and empowered employees, that enterprises become agile, competitive, and successful.
“Business Intelligence in the cloud? You’ve got to be joking!” That’s the response I got when I recently asked a client whether they’d considered availing themselves of a software-as-a-service (SaaS) solution to meet a particular BI need. Well, I wasn’t joking. There are many scenarios when it makes sense to turn to the cloud for a BI solution, and increasing numbers of organizations are indeed doing so. Indications are also that companies are taking a pragmatic approach to cloud BI, headlines to the contrary notwithstanding. Forrester has found that:
· Less than one third of organizations have no plans for cloud BI. When we asked respondents in our Forrsights Software Survey Q4 2013 whether they were using SaaS BI in the cloud, or were intending to do so, not even one third declared that they had no plans. Of the rest, 34% were already using cloud BI, and 31% had cloud in their BI plans for the next two years. But it’s not a case of either/or: the majority of those who’ve either already adopted cloud BI or are intending to do so are using the SaaS system to complement their existing BI and analytics capabilities. Still, it’s worth noting that 12% of survey respondents had already replaced most or all or their existing BI systems with SaaS, and a further 16% were intending to do so.
Many of us have spent the past 10 years focusing on business intelligence solutions in order to help our businesses make better fact-based decisions. In fact, BI has been among CIOs’ top 10 priorities for more than a decade. These solutions have, for the most part, been successful — and we continue to improve our BI capabilities as the demand for fact-based decision-making goes deeper, wider, and further into the business.
This whole time, we’ve also been aware of the significant amount of unstructured data that resides within our business, and the fact that we struggle to use it to make better decisions. To begin to get value from this data, we have made our organizations more collaborative and implemented tools and platforms to support that collaboration — with varying degrees of success.
The fact remains that there’s a huge amount of unstructured information and data that we do not get value from. However, a growing number of solutions are beginning to mine elements of this data: product information, software code, legal case files, medical literature, messaging data, and other unstructured business data.
I’ve recently been working with TrustSphere, which is a messaging intelligence provider. TrustSphere has an interesting solution that mines your messaging data to get real insights and information from the mountains of emails and messages that bounce into, out of, and around your organization every day. This is an interesting concept, and TrustSphere has developed a number of use cases for its solution. I’ll be presenting at a webinar hosted by TrustSphere on February 25— feel free to register here.
Business decision-makers in Asia Pacific (AP) are increasingly aware of the importance of business intelligence (BI) and broader analytics to business strategy and execution. However, lack of internal expertise remains a significant barrier to BI project success.
To succeed in the region, BI service providers must provide guidance on how to translate data access into actual insight and information into business value. This requires a strong understanding of local cultures, business practices, regulatory frameworks, and market dynamics. When evaluating providers, understand how their capabilities are likely to evolve across five categories:
People. To minimize project risks, understand who will be the on-site business and technical leads on BI projects and how many successful implementations this staff has led in a similar industry and similar technical environment within the region.
Technical expertise. Service providers need to demonstrate region-specific knowledge of the technical characteristics of various BI tools, platforms, architectures, and applications. Most companies will not have all of the necessary skills on site, so closely evaluate ease of access to remote staff from the service provider as well.
How is it possible for a local company to defeat global giants like Pepsi, Coca-Cola, and Watsons in your market segment and establish market leadership for more than a decade? The answer is given by Nongfu Spring, a Chinese company in manufacturing and retail industries. In my recent report “Case Study: Technology Innovation Enables Nongfu Spring To Strengthen Market Leadership”, I analyzed the key factors behind their success, and provide related best practice from enterprise architecture perspective. These factors include
Business strategy is enterprise architecture's top priority. EA pros often need to be involved in project-level IT activities to resolve issues and help IT teams put out fires. But it's much more important that architects have a vision, clearly understand the business strategy, and thoroughly consider the appropriate road map that will support it in order to be able to address the root causes of challenges.
Agile infrastructure sets up the foundation for scalable business growth. Infrastructure scalability is the basis of business scalability. Infrastructure experts should consider not only the agility that virtualization and IaaS solutions will provide next-generation infrastructure, but also network-level load balancing among multiple telecom carriers. They should also refine the network topology for enterprise security.
Market conditions are changing quickly; firms need to make the best possible business decisions at the right time and base them on timely, accurate, and relevant information from business intelligence (BI) solutions. The repercussions of not handling BI change well are especially painful and may include lost revenue, lower staff morale and productivity, continued proliferation of shadow IT BI applications, and unwanted employee departures. Ineffective change management often lies in the process of preparing the people affected by change rather than in planning the technology implementation. Firms that fail to prepare employees for enterprise BI change early enough or well enough will be left behind. They need to implement a multifaceted series of activities ranging from management communication about why change is needed to in-depth, role-appropriate employee training.
Why change management is so critical? Most strategic business events, like mergers, are high-risk initiatives involving major changes over two or more years; others, such as restructuring, must be implemented in six months. In the case of BI, some changes might need to happen within a few weeks or even days. All changes will lead to either achieving or failing to achieve a business result. There are seven major categories of business and organizational change:
Business process changes
New technology implementations
Changes to business process outsourcing or IT sourcing
Initial business intelligence (BI) ployment efforts are often difficult to predict and may dwarf the investment you made in BI platform software. The effort and costs associated with professional services, whether you use internal staff or hire contractors, depend not only on the complexity of business requirements like metrics, measures, reports, dashboards, and alerts, but also on the number of data sources you are integrating, the complexity of your data integration processes, and logical and physical data modeling. At the very least Forrester recommends considering the following components and their complexity to estimate development, system integration and deployment effort:
Rowan Curran, Research Associate and TechnoPolitics producer, hosts this episode to ask me (your regular host) about The Pragmatic Definition Of Big Data. Listen (5 mins) to hear the genesis of this new definition of big data and why it is pragmatic and actionable for both business and IT professionals.
Podcast: The Pragmatic Definition Of Big Data Explained (5 mins)
As John Brand and I recently wrote, business intelligence (BI) adoption drivers, technology understanding, and organizational process maturity continue to vary widely across Asia Pacific (AP). But there is one constant in this market: the regularity with which BI appears at or near the top of CIOs’ priority lists.
While the gap between global best practices and regional implementations is closing, social, cultural, economic, and underlying technology trends will continue to affect BI adoption in the region for the foreseeable future:
Social. The adoption of social computing is expanding rapidly across all AP markets, but is particularly strong in growth markets like China, Indonesia, and the Philippines. As in North America and Western Europe, this adoption is already having profound effects on how organizations identify, understand, and engage with customers and other market influencers. But the lack of significant BI investments means that organizations in these growth markets are far more likely to consider issues like sentiment analysis, predictive analytics, and near real-time data access when sourcing initial BI projects.