In our recently completed Q3 2013 Global State Of Enterprise Architecture Online Survey, big data for real-time analytics moved from the No. 3 most revolutionary technology to the No. 2 position, according to the 116 enterprise architects who participated. This reflects the importance firms now place on turning vast amounts of data into immediate insight. And this trend is extremely important to telecommunication industry communication service providers (CSPs), who are sitting on a gold mine of data about what subscribers are doing on their mobile devices.
Let’s break this down a bit more -- according to the United Nations, there are about 2 billion mobile broadband subscriptions globally (that’s about 28% of the world’s 7.1 billion people). That’s a huge number of perpetually connected people, using bunches of apps for both work and personal. This is part of what we call the mobile mind shift, and it’s not about smartphones and tablets; rather, it’s about the changing expectations that pervasive mobile computing and broadband wireless have. According to a recent report, "The Mobile Mind Shift Index," we estimate 21% of the adult online US population now expects that any information is available on any appropriate device, in context, at their moment of need (see Josh Bernoff’s May 2013 blog Introducing The Mobile Mindshift Index). And this number is going to grow significantly over the next few years.
I remember my first day at high school. Yikes it was scary. The older kids were BIG! The teachers were BIG (the phys ed teacher was even a little mean), the school was BIG . . . Everything felt so BIG! But as the year ticked by, l became familiar and comfortable with my classmates, teachers, and the school -- the place shrunk to a more comforting size.
Today marketers feel about data as I did about my first day at big school -- it’s BIG. There is lots of it, and it’s coming at them from many directions and in many forms. But data does not feel so big and daunting to the marketer who recognizes their customers buried in the fog of big data. The fact is, customer recognition is the key for marketers to make sense of big data; and it is at the heart of all effective marketing activities. I write about this in my most recent report: “Customer Recognition: The CI Keystone.”
So what is customer recognition?
Recognition associates interactions with individuals or segments across time and interactions. The strength of recognition is gauged on its ability to associate interactions to anything from individuals to a broad segment; and to persist those associations across different touchpoints over time.
Keys are needed for recognition at touchpoints. There are many types of keys, ranging from IP addresses, to cookie-based TPIKs, to phone numbers and customer account numbers. At Forrester we call them touchpoint interaction keys (TPIKs)
Many CIOs, technical architects as infrastructure and operations (I&O) professionals in Chinese companies are struggling with the pressures of all kinds of business and IT initiatives as well as daily maintenance of system applications. At the same time they are trying to figure out what should be right approach for the company to adapt technology waves like cloud, enterprise mobility, etc., to survive in highly competitive market landscape. Among all the puzzles for the solution of strategic growth, Operating System (OS) migration might seem to have the lowest priority: business application enhancements deliver explicit business value, but it’s hard to justify changing operating systems when they work today. OS is the most fundamental infrastructure software that all other systems depend on, so the complexity and uncertainty of migrations is daunting. As a result, IT organizations in China usually tend to live with the existing OS as much as possible.
Take Microsoft Windows for example. Windows XP and Windows Server 2003 have been widely used on client side and server side. Very few companies have put Windows migration on its IT evolution roadmap. However, I believe the time is now for IT professionals in Chinese companies to seriously consider putting Windows upgrade into IT road map for the next 6 months for a couple of key reasons.
Windows XP and pirated OS won’t be viable much longer to support your business.
Ending support. Extended support, which includes security patches, ends April 8, 2014. Beyond that point, we could expect that more malwares or security attacks toward Windows XP would occur.
Big data noise has reached the point where most are reaching for the ear plugs. And with any good hype bubble, the naysayers are now grabbing attention with contrarian positions. For example, The New York Times expressed doubt about the economic viability of big data in "Is Big Data an Economic Big Dud?" This post grabbed a lot of attention, but, like many others I read, it fundamentally misses the point of what big data is all about and why it's important. The article compares the productivity boom associated with the first wave of the Internet to the lack of growth experienced since the inception of "big data"; it implies that big data’s expected economic impact may not happen. Furthermore, the article implies that big data is something that firms will do or implement. Thinking about big data this way or differentiating between data sets as big, medium, or small is dangerous. It leads to chasing rabbits down holes.
I had the opportunity to speak and participate in a panel on data governance as it pertained to big data. My presentation was based on recently completed research sponsored by IBM to understand, what does data governance look like by firms embarking/executing on big data? The overarching theme was that data governance is about protect and serve. Manage security and privacy while delivering trusted data.
Yet, when you look at data governance and what it means to the data practice, not the technology, protect and serve is also a credo. In business terms it represents:
Protect the reputation and mitigate risk associated with inappropriate use or dirty data.
Serve information needs of the business to have information fast and stay agile to market conditions.
Business intelligence (BI) is an evergreen that simply refuses to give up and get commoditized. Even though very few vendors try to differentiate these days on commodity features like point and click, drag and drop, report grouping, ranking, and sorting filtering (for those that still do: Get with the program!), there are still plenty of innovative and differentiated features to master. We categorize these capabilities under the aegis of Forrester agile BI; they include:
Making BI more automated: suggestive BI, automatic information discovery, contextual BI, integrated and full BI life cycle, BI on BI.
Making BI more pervasive: embedding BI within applications and processes, within the information workplace, and collaborative, self-service, mobile, and cloud-based BI.
Making BI more unified: unifying structured data and unstructured content, batch and streaming BI, historical and predictive, and handling complex nonrelational data structures.
Developers And Their Business Counterparts Are Caught In A Trap
They swim in game-changing new technologies that can access more than a billion hyperconnected customers, but they struggle to design and develop applications that delight customers and dazzle shareholders with annuity-like streams of revenue. The challenge isn’t application development; app developers can ingest and use new technologies as fast as they come. The challenge is that developers are stuck in a design paradigm that reduces app design to making functionality and content decisions based on a few defined customer personas or segments.
Personas Are Sorely Insufficient
How could there be anything wrong with this conventional design paradigm? Functionality? Check. Content? Check. Customer personas? Ah — herein lies the problem. These aggregate representations of your customers can prove valuable when designing apps and are supposedly the state of the art when it comes to customer experience and app design, but personas are blind to the needs of the individual user. Personas were fine in 1999 and maybe even in 2009 — but no longer, because we live in a world of 7 billion “me”s. Customers increasingly expect and deserve to a have a personal relationship with the hundreds of brands in their lives. Companies that increasingly ratchet up individual experience will succeed. Those that don’t will increasingly become strangers to their customers.
We recently met with Huawei executives during the launch of its latest product in China, the S12700 switch. The product, which ships in limited quantity in Q1 2014 is designed for managing campus networks, and acts as a core and aggregation switch in the heart of campus networks. While wired/wireless convergence, policy control and management come as standard features, the draw is the Ethernet Network Processor (ENP). The ENP competes against merchant silicon in competitive switch products, and Huawei claims to be able to deliver new programmable services in six months, compared to one to three years for competitive application-specific integrated circuit (ASIC) chips. This helps IT managers respond quicker to the needs of campus network users, especially in the age of BYOD, Big Data, and cloud computing.
While it is a commendable product in its own right, Huawei will need to position its value more strategically against IT managers that have technology inertia, especially in ‘Cisco-heavy’ networks:
Tying the value of the switch to existing and future enterprise campus needs. In the age of cloud computing, big data, mobility, and social networking, IT managers need to solve network challenges like insufficient service processing capability and slow service responses. Huawei says the new switch is able to provide agile services and respond flexibly to changes in service requirements, on demand. For example, the switch has access control built in for wired/wireless access management. This is a good start. Enterprises will need to understand how the switch plays a central role in a campus network, and Huawei should continue to reinforce its agile network architecture’s storyline.
Big data gurus have said that data quality isn’t important for big data. Good enough is good enough. However, business stakeholders still complain about poor data quality. In fact, when Forrester surveyed customer intelligence professionals, the ability to integrate data and manage data quality are the top two factors holding customer intelligence back.
So, do big data gurus have it wrong? Sort of . . .
I had the chance to attend and present at a marketing event put on by MITX last week in Boston that focused on data science for marketing and customer experience. I recommend all data and big data professionals do this. Here is why. How marketers and agencies talk about big data and data science is different than how IT talks about it. This isn’t just a language barrier, it’s a philosophy barrier. Let’s look at this closer:
Data is totals. When IT talks about data, it’s talking of the physical elements stored in systems. When marketing talks about data, it’s referring to the totals and calculation outputs from analysis.
Quality is completeness. At the MITX event, Panera Bread was asked, how do they understand customers that pay cash? This lack of data didn’t hinder analysis. Panera looked at customers in their loyalty program and promotions that paid cash to make assumptions about this segment and their behavior. Analytics was the data quality tool that completed the customer picture.
Data rules are algorithms. When rules are applied to data, these are more aligned to segmentation and status that would be input into personalized customer interaction. Data rules are not about transformation to marketers.