Wearable Technology Is Breaking The Retail Distribution Model

Tim Sheedy

Smart technology is becoming mainstream very quickly. Not a day goes by without hearing about some new piece of smart technology that can help you get fitter or smarter or improve your life in some other way. In the past week alone, I’ve heard about devices that can improve your tennis swing, improve your posture, sense your presence, and generate energy from walking — not to mention the new smart watches, handheld 3D printers that can draw bones, smart breathalyzers, and, of course (!) smart wigs!

These devices are starting to find their way into the hands of consumers, but much of the retail channel has yet to catch up. Smart locks, smart wearables, and smart fitness devices are all generally being sold through the traditional online and offline channels for electronics and devices; sports stores, clothing retailers, and home hardware stores have been slow on the uptake. In the US, we have already seen some electronics retailers (such as Best Buy) significantly expand their “smart wearables” section from a small pod to an entire aisle or even a dedicated corner or section of the store. At the same time, many sports stores have not even started carrying the latest fitness tracking devices — something that should be in their sweet spot.

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5 Steps to transform IT from Order-taker To Business Partner: Part 2

Nigel Fenwick

Way back in September, I promised a series of blogs addressing this subject. I had high hopes of delivering a post a week for five weeks on the topic. Needless to say . . . life interjected!

So here, a little later than planned, is the second post in the series.

Step 1 - Change where you work 

If I had a thousand bucks for each time I’ve heard someone in technology management say “IT and the business,” I’d have retired long ago. And it’s not just something we hear in technology circles either. The plain truth is technology professionals have been using isolationist language for decades. I say isolationist because any time we refer to "IT and the business” as if they were two different entities, we are creating an artificial divide. As a department of the business, IT is very much part of “the business.”
 
When technology leaders create this divide between the technology group and the rest of the business, it separates their actions from the purpose of the business. Technology professionals start to see themselves as some sort of technology service provider to the business. But the truth is that the technology team should be integral to delivering value to the customer. If “the business” wanted a technology service provider, the leadership team would outsource IT. Unfortunately, one consequence of managing IT like a vendor is that it becomes much easier for the leadership team to make that outsourcing decision.
 
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CIO Crisis Alert: India Will Lead Asia Pacific IT Salary Increases In 2014

Manish Bahl

With a weakening economy, skyrocketing food prices, and an attrition rate of around 14%, Indian CIOs’ biggest worry is increasing the salaries of their IT staff. Data from Forrester’s Forrsights Budgets And Priorities Survey, Q4 2013, indicates that 71% of Indian CIOs will increase their spending on IT staff salaries and benefits in 2014 — tops in the Asia Pacific region (figure below).

                                                    

In return for the increase in staff salaries, Indian CIOs will face two challenges:

  • Increased pressure from CEOs to contribute to the company’s top line. By 2016, 70% of Indian CIOs will report to CEOs. As the boundary between IT and business blurs further, CEOs will get more directly involved in business-led technology discussions as a means to differentiate their organization and drive business growth. They’ll look for new technology capabilities to respond to customer needs better, faster, and cheaper — and won’t be satisfied with an IT organization that merely keeps the lights on.
  • The need to retool their IT teams. All too often, IT lacks business-oriented communication skills and team members rarely or never share business knowledge with each other. IT staff continue to be order-takers. The biggest challenge for CIOs today is how to make their technical people more business-savvy; this problem will only get more difficult as pressure from the business increases.
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Chief Digital Officer: Fad or Future?

Nigel Fenwick

Over the past nine months I've been interviewing chief digital officers and senior digital leaders across a variety of industries to gain insight into the emerging role of digital leadership. My colleague Martin Gill and I wanted to discover why firms hire chief digital officers and what they are responsible for — more importantly I was looking to discover what CEOs should be doing to set up their businesses for success in a digital world.

The initial findings from this research are published in "Chief Digital Officer: Fad or Future" (fee for non-clients).
 
One aspect of the research I'd like to highlight here is the need to think of digital as more than simply a bolt-on to your business. To create a digital business able to compete in the age of the customer, we need to think of building out a digital business ecosystem. I know what you're thinking — "not another ecosystem" — and yes, it's a very overused term, especially by consultants and analysts. But I simply can't think of a better term to describe the interconnected and codependent relationships needed in a fully digitized business (see diagram).
Firms need to develop a digital ecosystem
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Indian CIOs Must Prepare To Take Advantage Of Global Technology M&A Trends

Manish Bahl

Over the past 12 months, we have witnessed the acquisition of 28 software or software-as-a-service (SaaS) firms globally, compared with only 13 IT services or BPO firms (see the figure below). The Forrsights Budgets and Priorities Survey, Q4 2012 indicated that 67% of business decision-makers in India planned to increase their department’s spending on SaaS and other as-a-service offerings in 2013 through the IT organization. Anticipating the market’s growing shift to the cloud, large enterprise software players like Oracle and SAP are acquiring SaaS-based products and solutions (Taleo, Ariba, SuccessFactors, etc.) to help them shift their business model to meet the growing market preference for SaaS subscription software over traditional licensed software products.

 

CIOs in India must capitalize on this gradual global shift in M&A — away from pure IT services and toward cloud-based services — in order to fundamentally shift the way IT is delivered in their organizations. CIOs should adopt a three-pronged strategy to gain full advantage of global technology M&A trends:

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5 Steps to transform IT from order-taker to business partner

Nigel Fenwick

Let's face it, IT often suffers from a bad reputation. And in many cases it's well deserved. Over the years many IT leaders attempted to change IT's reputation by empowering other departments to dictate what IT should be doing — and in the process they became order-takers. And the portfolio of projects from well-meaning business leaders mushroomed. To cope with the overwhelming demand, IT established rigorous process around governance, forming committees with the power to determine what IT works on. And almost inevitably, many of these committees are bogged down by politics — meaning IT is not always working on the right things — and at the same time slowing down the whole pace of change. No wonder then that many people across the business spectrum view their own IT group as a slow, unresponsive impediment to getting things done. 

But CIOs the world over are actively engaged with their leadership teams in changing IT's reputation. The goal for these CIOs is to shift IT from order-taker to business-partner, helping shape future business strategy and using technology to increase the value their organization brings to the end customers of the business.
 
This transition is not easy. Nor is it guaranteed to work. Sometimes an IT organization's employees are simply unwilling or unable to embrace the change. Sometimes the reputation of IT is so sullied that nothing short of a cold-reboot will work (organizations going down this route will start by outsourcing all of IT, then they gradually hire back key skills needed to derive more effective business outcomes).
 
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Big Data Is On The Rise In India’s Midmarket — But Without Clear Business Outcomes

Manish Bahl

As part of the research for my upcoming report on midmarket IT budgets in India, we collected responses on big data adoption trends and maturity levels from 430 midmarket businesses (those with 400 to 2,500 employees) in the country. Our research shows that around 35% of Indian midmarket firms plan to invest in big data technologies and solutions in the coming one to two years, but we also found that many of them focus on reducing costs (30%) or optimizing asset utilization (25%) as the business outcomes expected. Moreover, only 8% of midmarket CIOs who plan to invest in big data have a projected or proven ROI for their big data investments — showing that many Indian organizations are getting caught up in big data hype.

India’s weakening economic conditions have put tremendous pressure on businesses to be more competitive and drive growth. As competition in the midmarket increases, business leaders will expect new IT capabilities to respond to customer needs better, faster, and cheaper. The pressure is now firmly on CIOs to deliver clear business outcomes on their big data investments. Our survey and my discussions with Indian CIOs have led me to the following recommendations for midmarket CIOs investing in big data:

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Q&A with Paul Cobban, Managing Director, COO, Technology and Operations, DBS Bank

Dane Anderson

In advance of Forrester's Summit for CIOs in Singapore on August 30, I had an opportunity to speak with Paul Cobban about his successful transformations at DBS Bank over the past few years. Based in Singapore, Paul oversees business transformation, operational excellence, customer experience, IT project office, procurement, real eastate, operational risk and business continuity management.  I've had a sneak peak at his event presentation and it is excellent.  Paul is a progressive CIO at the forefront of BT innovation and business engagement with a lot of valuable insight to share. 

1. What do you think IT departments are doing right and wrong these days?

In banking the IT departments have had to change enormously in recent years.  On top of the usual relentless advances in technology, security challenges have escalated, the war for talent has accelerated and regulation continues to evolve with the challenges. I believe that IT departments have had to adapt well to these changes. 

However, in most companies there is a lack of a truly customer centric design. Although there is some hype in the industry around service-oriented architecture (SOA), I believe that until budgets are allocated around customer processes rather than by functional units, systems will continue to be designed as applications for the department users rather than with the customer in mind. In addition, most companies fail to take usability seriously and have little concept of cross touchpoint consistency.

2. How do you measure ROI for IT? 

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Microsoft Launches Office On The iPhone - Welcome To The Next Stage Of Employee Empowerment

Tim Sheedy
UPDATED 26th June 2013  As you may be aware Microsoft has finally introduced its Office Suite for the iPhone (launched in the US on Friday 14th June, and now available in much of the rest of the world according to my sources). This is great news — it has been one of the real holes in the iOS application store and in high demand in many businesses we speak to (although will be MUCH more valuable when it's available as a native iPad app). Over the next week or so it is likely that many of your senior executives will read this news — as it has already made the consumer press. Soon they'll be knocking down your door asking how to get access to it.
 
However, the licensing model that Microsoft has chosen is one to encourage the uptake of the Office 365 Suite. ONLY those users with a MS Office 365 license will be able to activate the apps on their iPhone. This may mean a significant licensing impact for you. If, like many companies, you have not yet made the move to Office 365, your company’s employees will not be able to use the Office apps on their iPhone. There is a big risk here that you will see employees activate the license themselves and charge it back through the traditional expenses channel. And if senior management are doing it, it is hard for them to say no to the more junior ranks.
 
I reached out to Duncan Jones, one of our resident sourcing pros and Microsoft licensing experts to get his analysis of the situation. Here are his thoughts:
 
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70% of Indian CIOs Will Report Into CEOs By 2016

Manish Bahl

I recently analyzed 60 companies in India to understand the CIO reporting structure and the key projects that these organizations are focused on. Some interesting findings from this exercise:

  • Currently, 40% of Indian CIOs or top IT executives report to CEOs or the senior-most person (president, managing director, etc.) in their organization. Among the other 60%, most report to CFOs (35%), followed by COOs, group CIOs, and chief sales officers.
  • CIOs who report to CEOs tend to have a 30% higher IT budget than CIOs who report to CFOs, COOs, or group CIOs.
  • Projects led by CIOs not reporting directly to the CEO focus primarily on reducing IT costs and aligning IT to the business; these projects are typically measured in terms of cost savings.
  • Projects led by CIOs reporting directly to the CEO are more likely to focus on customer acquisition and retention and measured more in terms of business outcomes for the organization.
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