DevOps Has Reached “Escape Velocity”, CIO’s Need To Get Onboard!

Robert Stroud

In an era where velocity and agility are driving technology management organizations over simple cost reduction, every business must constantly evolve to drive business differentiation. Leveraging practices such as Lean and Agile, smaller changes, automated pipelines and product centric teams, DevOps is transitioning from unicorns and small projects to company-wide initiatives. Companies such as WalmartING and JetBlue to name a few are leveraging DevOps to drive their business transformations and are reaping the benefits or accelerated velocity across the organization. DevOps is a powerful approach available to the CIO to drive velocity and agility, supporting the innovation required to drive business transformation.

 

Unlocking the value requires cultural change

To unlock the promise of DevOps, CIOs must lead and support a cultural change within their technology management organization. As any leader knows, changing institutionalized behavior is the toughest of all management challenges and CIOs are understandably skeptical of new trends.  Despite this, CIOs must recognize when a trend becomes an imperative for survival. DevOps has become this imperative, and CIOs must engender a culture of collaboration and learning and enable their people with the right tools to drive holistic life-cycle automation.  

 

Lean processes are critical to success

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Why You Are Getting Disrupted

Brian  Hopkins

The overriding theme of every disruption story I’ve ever heard is that firms thought they had more time than they did. So, I’ve been pondering the why. We can see disruption happening all around us, but why is it so difficult to get out in front of it?

Then I slogged my way through Ray Kurzweil’s Law Of Accelerating Returns and it hit me. Digital disruption is about the clash between exponential change and our brain’s wanting things to be linear. Here is what I mean:

  • The law of accelerating returns says that evolutionary systems, like information technology, produce exponential changes. This happens because one generation of technology builds on and accelerates the returns of past generations. Think of how the Internet led to cloud, accelerating mobile apps, which build on broadband wireless, etc.
  • Accelerating returns produce exponential curves in a system’s fundamental measures. This is what Ray proved mathematically in his law. In information technology that means the measures of power and speed tend to double at consistent intervals, while costs are cut in half. Think Moore’s law.
  • The law of accelerating returns implies that Moore’s law is not the exception, it's the rule. So, we should expect many Moore’s laws, and if fact, that is what we have seen — look up Gilder’s Law, Metcalf’s Law, Kryder’s Law, etc.
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Bimodal IT Is Past Its Due Date: Providing Speed And Innovation Need To Top The CIO's Agenda

Tim Sheedy

Many CIOs have embraced bimodal IT as a way to create relevance for the technology organization in the age of the customer. With marketing, CX, and other teams increasingly building their own development teams or turning to outside agencies for their technology needs, CIOs have recognized that they need to help drive fast change, not be a source of friction. They also need to be a source of innovation for the business. Many CIOs took a shortcut to this end and created a “fast” IT function that sat parallel to the “slow” IT function — and hence bimodal IT was born.

However, most CIOs now recognize that all of the technology team and function needs to be fast. Yes, some systems change less often than others, but all change needs to be fast. There is no longer an appetite for long, drawn-out, technology-led changes. There is no longer a place for slow IT. Testing can’t delay launches; security can’t add months to a project; perfect can’t get in the way of fast. CIOs are taking steps to create a tech function that moves at the speed of the customer and helps drive innovation for customers, partners, and employees. They are starting to create a true business technology function. Here’s what leading CIOs are doing to drive this change and move away from bimodal IT:

  • They are creating a vision of the new empowered customer future and selling this to their team, the board, and the rest of the business to get buy-in for the changes they are making across their team.
  • They are transforming the culture, skills, technology, and metrics of the technology team. Start with the vision and inspire the team to change, or start with the metrics and drag them along with you — either way, these changes are essential.
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Amazon Go Ushers In A New Era In Retail Technology

Nigel Fenwick

Amazon's new Amazon Go store ushers in a new era in brick and mortar grocery and convenience shopping. In the early 80's, electronic point of sale (POS) dramatically changed the checkout experience in grocery stores, speeding up checkout lines. Today, a checkout without POS is unthinkable unless it's a farm stand on the side of the road … and even here we're likely to see Square hooked up to a smartphone. But even with POS, the checkout has always been the big time waster in any grocery shopping experience. Until this week.

Six years ago, "The Ultimate Grocery Shopping App" described a future in which the grocery shopping experience was radically different from what existed in 2010. This week, Amazon has brought part of that vision to life by opening its first Amazon Go brick and mortar convenience store for Amazon employees in Seattle. A convenience store with no checkout lines … with no checkout.

Gone are the POS systems. Welcome to the era of automatic checkout. Amazon has used new technologies like image recognition and machine learning to go beyond at least some of the experience predicted back in 2010. Instead of shoppers having to scan items into their shopping cart, Amazon uses this advanced technology to track what shoppers pick up and add to their cart and what they put back on the shelf. No scanning, no checkout … just walk out and pay.

Why will this take off? Becuase it gives shoppers back significant time savings and it gives retailers potentially enormous costs savings.

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Predictions 2017: The Year Of Action

Cliff Condon

Your business model is under attack. And it’s not by your competitors. It’s under attack from your customers. Three years ago, Forrester identified a major shift in the market, ushering in the age of the customer. Power has shifted away from companies and towards digitally savvy, technology-empowered customers. They now decide winners and losers: Our Empowered Customer Segmentation shows that more than a third all US online adults want new and engaging digital experiences. They will switch companies to find these experiences. In this environment, being customer-obsessed can be your only competitive strategy.   

In Forrester’s 2017 Prediction Reports, we are tracking firms’ progress on their customer-obsessed journeys. In our annual collection of predictions, we look at business strategy, leadership, customer experience, and technology dynamics to examine progress and predict the key events, changes, and trends that will occur in 2017.

Here are three key findings from our 16 predictions reports:

  • The next wave of Customer Experience will have a profound impact on firms’ P&L: The shift to a customer-led market represents an immediate and prolonged threat to company survival. Our research shows a clear correlation between the quality of customer experiences and revenue growth; it also affirms that emotion is a core driver of customer loyalty and spending. The next wave of CX will connect these dots, blending analytics, technology, and design to evoke emotions to drive affinity and directly impact revenue.
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The AT&T Merger With Time Warner Opens A New Chapter For The Telco Industry

Dan Bieler

With Laura Koetzle

On October 22, 2016, AT&T announced its intention to acquire Time Warner for an equity value of $85.4 billion. The deal is essentially about the combination of quality content and content distribution, as it transforms AT&T into a content producer and owner — rather than just a distributor of content. Many telecom regulators restrict revenue growth opportunities for telcos in highly regulated telco markets. As a result, telcos are increasingly looking outside their markets for growth opportunities. This deal is evidence of this trend.

Telco CIOs Must Become More Strategic To Prepare For The Content Opportunity

The AT&T-Time Warner deal deserves special attention by telco CIOs. The deal needs to be seen against a challenging backdrop for the telco industry, where revenue growth from traditional revenue sources is hard to come by. Yes, AT&T already operates the largest US pay-TV business through its ownership of DirecTV. The Time Warner deal — should it materialize — would enable AT&T to offer its own premium entertainment programming to its pay-TV, mobile phone, and internet customers. AT&T’s intention to acquire Time Warner opens a new chapter for telcos, because the combination of quality content and content distribution potentially helps telcos to:

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What To Do When A CIO Pushes Back On Your Agile BI Platform?

Boris Evelson
 
CIO pushback is part of a typical growing pain of all business intelligence (BI) startups. It means your land and expand strategy is working. Once you start expanding beyond a single department CIOs will notice. As a general rule, the earlier the CIO is brought on board, the better. CIOs who feel left out are likely to raise more objections than those who are involved in the early stages. A number of BI vendors that started out with a strategy of purposely avoiding the CIO found over time that they had to change their strategies - ultimately, there’s no way round the CIO. Forrester has also noticed that the more a vendor gets the reputation of “going round” the CIO, the greater the resistance is from CIOs once they do get involved. 
 
There is of course also the situation where the business side doesn’t want the CIO involved, sometimes for very good reason. That notwithstanding, if there’s a dependency on the CIO when it comes to sign-off, Forrester would strongly recommend encouraging the business to bring him/her to the table. 
 
The two key aspects to bear in mind in this context are:
 
  • CIOs look for transparency. Have architecture diagrams to hand out, be prepared to explain your solution in as much technical detail as required, and have answers ready regarding the enterprise IT capabilities listed below.  
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CIOs: Life In The Fast Lane

Sharyn Leaver

The pace of business – heck, the pace of life, gets faster and faster. Faster processing, faster delivery, faster innovation – and faster adoption and abandonment of that innovation -- is the reality we all live in today.

Leaders run fast businesses to win and to stay apace or in front of dynamic customers and disruptive competitive forces. They can’t out-slow the competition. Speed is the only option.

I had the pleasure of participating in a webinar panel to discuss what it means to work at one speed (fast) versus at two speeds as bimodal IT advocates. We discussed why businesses are forced to go fast, the reality and downside of a bimodal IT strategy, and the strategies and approaches to winning based on speed. Here is a quick view of the ground we covered.

Why fast?

The first part of our discussion focused on the factors that are making companies operate at fast speeds. Broadly, it comes down to three factors:

  • Hyper-adoption and hyper-abandonment: Customers are willing to rapidly try, use, and then possibly discard content, apps, and services in a world of seemingly infinite choices and extremely low cost to entry and exit. This dynamic fundamentally changes – speeds up – what it means to “have” a customer.   
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Your Business Technology Strategy: Go Fast Or Go Home

Sharyn Leaver

CEOs and their leadership teams are at a crossroads as technology underpins virtually all customers' expectations and unlocks new sources of customer value. The choice is rather straightforward: invest heavily in business technology (BT) to win, serve, and retain customers, or flounder under the weight of legacy IT.

The choice is obvious, isn't it? We know and have proven that a better customer experience correlates with higher revenue growth. And what firm can claim immunity from the pressure of increasingly powerful customers wielding unbelievable technology power?

This is no time to hedge. Strategies like bimodal IT that advocate for silos and two operating speeds may appeal to risk-averse leaders, but bimodal won't get the job done. In fact, it works directly against the key operating principles of customer-obsessed firms in B2B and B2C industries like General Electric, Netflix, and USAA. These firms and other leaders use the customer as the central design point for their business technology strategy and strive to be:

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Predictions 2016: Welcome To The Digital Savvy, Customer Obsessed CIO

Nigel Fenwick

It’s that time of year! The time when every prognosticator comes up with their predictions for the next year. And this year my colleague Pascal and I took the lead in developing our 2016 predictions for the CIO role.

Rather than call out banal and obvious trends I wanted to make a stronger call on the CIO role in particular. In part this is because so many people gleefully post blogs predicting the demise of the CIO. And in part simply because it sometimes feels like I see the role of the CIO differently to many; as first and foremost a business leader.

So will 2016 be the end of the CIO role as we know it?

“No" is my simple answer. In 2016 the Age Of The Customer will further accelerate the role of technology in creating new sources of customer value to drive revenue. As a result we’ll see more and more CEOs expecting their CIOs to help lead their firm toward a clear digital future.

CEOs realize that, increasingly, future growth is tied to their ability to continuously deliver new digital services that create value for customers – across both B2C and B2B business environments. But failure to meet evolving customer expectations will result in losing customers and ultimately lower revenue growth. Without a technology team focused on building the digital platforms of tomorrow, companies cannot hope to keep up with their evolving customer expectations. 2016 will be a pivotal year for CIOs and CEOs – one that will see a significant change in leadership thinking when it comes to a company’s technology capabilities and digital assets.

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