TechnoPolitics Podcast: Hey CIO, Here Is Your Hybrid Cloud Wake-Up Call

Mike Gualtieri

James Staten, Forrester TechnoPoliticsHybrid clouds are especially subject to the law of unintended consequences, says Forrester’s cloud expert James Staten. Many IT organizations don’t even acknowledge that they have a hybrid cloud. The reality: If enterprises are using public cloud software-as-a-service (SaaS) and/or deploying any custom applications in the public cloud, then by definition they have a hybrid cloud, because it almost always connects to the back end.

In this episode of TechnoPolitics, James implores CIOs and IT professionals to get serious about hybrid cloud now to avoid spaghetti clouds in the future.

Podcast: Here Is Your Hybrid Cloud Wake-Up Call

Click here to download the MP3 file of this episode.

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Sourcing Capabilities: What Big Business Can Learn From Startups

Nigel Fenwick

It's been clear for years now that small business startups don't build massive IT departments and big operations teams. Instead they focus on the capabilities which truly differentiate them in the marketplace - their strategic capabilities. They hire experts in these capabilities as employees and continue to improve their differentiation. At the same time, they look to source their more generic business capabilities from business partners and technology service providers.

We are going to see a seismic shift in big business in the coming years: there will be an increasing appetite to source generic capabilities from vendors and business partners; at the same time CEOs will focus increasingly scarce human capital resources on improving their strategic capabilities - the capabilities which give them a competitive edge.

While digital technology will remain at the heart of these strategic capabilities - leveraging cloud, big data analytics, mobile and social - the majority of technology services will be sourced from partners and vendors. The company's own technology resources will become more and more intensely focused on developing unique systems of engagement around strategic capabilities.

Chasing KPIs That Matter

Nigel Fenwick

Is there a fundamental problem in today’s IT? I believe there is, and it’s this: IT decision-makers are too often focused on the wrong things.

In a recent study, Forrester examined the top priorities, topics, and terms from a variety of data sources for both business decision-makers and technology decision-makers. What we found was a very clear — and to my mind, troubling — distinction between these two groups.

Business decision-makers focus on topics like growing revenue, improving customer satisfaction, and hiring, developing, and retaining the best talent. By contrast, IT decision-makers focus on topics like improving project delivery performance, improving budget performance, and cutting IT costs.

The fact that IT decision-makers have so little focus on business outcomes is one of the main reasons IT is seen as disconnected from the rest of the business.

The only way for CEOs and CIOs to fix this is to begin to measure IT professionals more in terms of business-outcomes and less on project delivery and system uptime. In other words, we need to measure IT professionals using the same KPIs we use to measure leaders across the rest of the business. This means we must begin measuring IT’s impact on things like the change in customer satisfaction (that’s the company’s customer satisfaction and not IT’s internal “customers” as some groups like to refer to other employees in the company), or the increase in sales, or the ability to attract and retain top talent.

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2013: The Year Of Digital Business

Nigel Fenwick
While Social Business continued to evolve in 2012, 2013 will see the emergence of digital business as a new strategic theme for many firms. What's driving this shift and what does it mean for CIOs, CEOs, and chief digital officers?
 
The Communications Evolution
 
Communications continue to evolve. Consider how humans have transformed communications over the centuries: signal fires; semaphore; Morse code; the telegraph; the telephone; telex; fax; email; SMS; Facebook; and Twitter. I have no doubt that this evolution will continue in 2013 and beyond. Perhaps beyond 2013 we will eventually achieve the ability to communicate our thoughts directly — whether we’ll want to is a different question. As people the world over learn to use new social networking tools, they drop older tools that are no longer useful to them. Regardless of where you are in your personal communications evolution, the undeniable truth is that over the past decade we have significantly changed how people communicate; we are no longer dependent upon email. But social tools and 24/7 mobile access have not removed the complexity or decreased the volume of information we must process. Time remains our most precious resource and we’ll always seek ways to use it more effectively — but social tools are not necessarily the silver bullet we might think. In 2013 we need to rethink business processes to take this new communications paradigm into account.
 
The Social Business Evolution
 
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How Much Time Do You Spend On Business Innovation?

Chip Gliedman

That’s one of the questions we’re asking in our survey of business innovation practices, organizations, and technology use.

For the last few weeks, Forrester has been fielding a survey on innovation (as well as IT organization and IT governance). Do you want to find out how you stack up in areas such as:

- Innovation teams, processes, and funding models?

- Challenges to successful business innovation?

- Use of technology to support business innovation?

You can take this and the other surveys at: https://forrester.qualtrics.com/SE/?SID=SV_56Y0hU6NNIJKwfO (specify "Innovation" up front to go to that part of the survey).

Benchmark data from the survey will feed into our Sustained Business Innovation Playbook. We're aiming to publish the results in December or January. If you're not a client, enter your email at the end of the survey, and we'll share the results with you.

. . . and thanks in advance for sharing your experiences.

Chip Gliedman

Seeking The Elusive Zone Of Disruption

Nigel Fenwick

As I analyzed examples of digital disruption I’ll be highlighting at the upcoming CIO Forum — “Leading Digital Disruption” — I was struck by the way in which every example could be tied to a shift in customer experience along two dimensions: pleasure and time.

Along the pleasure dimension, disruptive technologies significantly increase the pleasure (or reduce the frustration) derived from the customer experience. For example the iPad significantly increased my pleasure in browsing the web and engaging with brands I like through tailored apps.

And on the time dimension, disruptive technologies save customers significant amounts of time; time being the most precious commodity in the world. My iPad allows me to do many things much faster than I could before because it is easy-to-use and contains many apps which connect my lifestyle together.

So I began to explore how CIOs might use this understanding to help shape the analysis of prospective disruptive strategies. What I came up with is the customer experience zone of disruption (or CxZOD for short — see illustration).

In the zone of disruption, the impact on pleasure and/or time is so great as to cause a disruptive force in the marketplace. When coupled with an assessment of potential market impact, this becomes an easy-to-understand visual model for comparing potential disruptive initiatives.

In my session at the forum, I’ll be exploring this model and showing how to use it to better understand existing technologies, such as mobile apps, and their potential to become disruptive.

What disruptive digital technologies would you place in the CxZOD? Post your comments below or Tweet #CXZOD

Key Takeaways From Forrester’s India CIO Summit

Manish Bahl

Forrester held its first CIO Summit in New Delhi, India on September 26, 2012. The theme of the event was “From IT To Business Technology (BT) And Beyond.” There were more than 100 attendees, and it was truly a memorable experience interacting with everyone. By the end of the day, I had received encouraging responses from attendees, as many CIOs expressed their willingness to work with Forrester. They found that no other research firm focuses on understanding how changing customer expectations affect what the business needs from them or helps them make better decisions to become successful and influential leaders. We had a great mix of analyst and CIO presentations, and the panel discussion on “Taking Your First Business Technology Steps” with our guest CIO speakers was complete bliss.

The key takeaways from the summit:

·         IT/business alignment doesn’t necessarily equate to success. The consumerization of IT and fast-changing business dynamics make it challenging for CIOs to continue to align their IT organizations with the business. The reality in today’s world is that IT must become an integral part of the business and CIOs need to develop their IT strategy in conjunction with business leaders.

·         Disrupt or be ready to get disrupted. According to Forrester’sForrsights Budgets and Priorities Tracker Survey, Q2 2012,customer expectations are the top concern among business decision-makers in Asia Pacific. Today, customers are redefining differentiation for organizations in the age of the customer and are setting the stage for rapid digital disruption.

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It Doesn't Matter Where EA Lives — So Let's Stop Arguing About It

Brian  Hopkins

George Colony, our CEO, just released a post on his blog about enterprise architecture, aptly enough named “Enterprise Architects For Dummies (CEOs).” I retweeted the post to my followers and received a flood of responses, most of which were violently disagreeing with George’s assertion that EA works for the CIO. I think this is a pointless argument, but underscores a very important change that most are missing.

Here’s what I mean:

  • The objection to putting EA under the CIO is based on an old-school notion.That notion is that CIOs are chief technology infrastructure managers. Our data shows that the role of CIO is changing, fueled by cloud and other as-a-service technology. CTOs or VPs of IT are increasingly taking on the job we used to think of as the CIO, while progressive CIOs are evolving to something else. Locating EA under the CTO is a bad idea, we all agree.
  • Every business is a digital business.If you don’t believe me, I’ll send you a pile of research. There is no such thing as a non-information-centric business anymore — or at least there won’t be for very long, because they are going out of business. Forrester has been using the term “business technology” (BT) for a while to indicate that there is no room for having separate business and IT — it simply won’t work much longer. Even in the most paper, analog verticals, we can give you example after example; check out Monsanto’s IFS (they are a seed company!).
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Cloud Computing By The Numbers: Understanding The True Cost Of Cloud Services

Dave Bartoletti

With VMworld in full swing this week and Microsoft’s cloud-centered Windows Server 2012 launching soon after, your options for technology to build and deploy enterprise clouds is about to expand significantly. Meanwhile, Amazon continues to drop prices faster than your local Wal-Mart, introduce new cloud compute and storage services almost monthly, and has already gobbled up a trillion objects in S3. Is it time to start moving your workloads to the cloud?

Forrsights surveys show that companies are indeed moving to the cloud, primarily for speed and lower costs — but are the savings really there? The answer might not be obvious. Are you heavily virtualized already? Have you moved up the virtualization value chain beyond server consolidation to using virtual machines for better disaster recovery, less downtime, automated configuration management, and the like? Do you have a virtual-first policy and actively share resources across business units? If you run a mature virtual environment today, your internal infrastructure costs might already be competitive with the cloud.

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Indian CIOs Are At A Business Technology Crossroads

Manish Bahl

 

Indian CIOs are at the risk of losing business credibility if they do not improve their understanding of business technology (BT). This is the key finding from the latest report that John Brand and I just published. For this report, we surveyed 130 companies in India, using Forrester’s BT Leadership Maturity Model as a baseline for gauging the BT maturity and readiness of Indian organizations. Our survey revealed a surprising level of consistency and positivity about BT among Indian firms, regardless of organization size, type or industry.

This was especially surprising given that BT is a relatively new concept in emerging markets. When we asked CIOs at Indian organizations to define BT in their own words, the responses displayed an overwhelmingly enthusiastic and optimistic view of BT; the most common theme centered on the value of BT as a general principle. However, many topics that were widely cited in self-assessments from CIOs in more mature markets like North America, Europe, and Australia/New Zealand were all but ignored by Indian CIOs, including time-to-value, market differentiation, communication, and governance.  As Indian CIOs have not long been exposed to the general concepts of BT, Forrester believes that inflated self-rankings are mainly attributed to a lack of understanding of just how comprehensive BT is.

The report helps answer key questions such as:

·         Why are Indian CIOs remarkably consistent in their BT views and attitudes? And is this really just due to a common tendency to inflate their own BT maturity?

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