In August this year I am heading down to our nation’s capital to take part in the annual itSMF Australia event – LEADit. I have taken part in this event to a greater or lesser extent over the past few years across Australia – Sydney, Perth, the Gold Coast and now Canberra. As an analyst who broadly covers the Service Management space (as well as a previously ITIL qualified practitioner), this event is the mecca for those interested in service management in Australia.
Year after year at this event, I see a fair amount of change in the content and focus, but little change in the thinking, and little real movement in the implementation or improvement of the processes – a recent survey between itSMF-USA and Forrester displays the current maturity levels of processes in organisations:
Here we are – years (decades?) after the first ITIL books were written, and demand management is STILL immature. Even financial management has barely shifted in maturity over the past few years. Why is this the case?
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:
A year and a half ago I broke up with Blackberry and started dating iPhone. It was a clean but cruel breakup: AT&T cancelled my T-Mobile contract on my behalf, the equivalent of getting dumped by your girlfriend’s new boyfriend.
This year I’ve been cheating on my laptop with my iPad. But it’s an on-again, off-again relationship. While I tell my iPad it’s the only one, I keep going back to my laptop. When I travel, my iPad is with me meeting clients. Meanwhile my laptop is in the hotel room surfing the online menu for a turkey club.
The iPad beats my laptop on size, weight, connectivity, and battery life. It also improves the human element when I’m having a face-to-face conversation but need to take notes. These are all critically important to me when I'm out of the office visiting clients or at an event.
But my laptop wins when I need to perform other important activities. For example, the larger screen really helps to write and edit research reports (John Rakowski, you’ll have your edits soon!). Or when I need to approve expenses behind the VPN or access files on my hard drive that I haven’t stored in Google Drive (yes, Forrester sanctioned).
Now that I've had a few months of compare both devices, I come back to outcomes . . .
I just saw something that makes a point I covered in a technology trends briefing for a client yesterday. After getting my Sun-dried Ethiopia Harrar (a $3.45 “clover-brewed,” ridiculously priced guilty pleasure – nice marketing job, Starbucks!), I noticed a young woman sitting behind me with her 5x7 notebook out, busily scribbling while bent over a large smartphone. Hmmm, I thought, let’s see what she’s doing. So I made pest of myself by asking a few questions. Here is some of the Q&A (her replies are abbreviated; she was actually quite helpful and not as curt):
Q: Are you a student or is what you are doing for work? A: No, I’m actually working.
Q: So do you have a PC? A: I do, but it’s a bulky 17” laptop that I got when I was a student, and I can do what I need on this.
Q: Is that company-issued phone, or is it yours? A: It’s mine.
Q: Does your company help by paying for any of the service? A: No, I pay it all myself.
Q: Are you doing an official assignment? A: No, nobody told me to do this. I am ...
Q: Do you even have your PC with you? A: No, I didn’t bring it.
The shift towards the empowered consumer and employee is no more obvious than in Asia - particularly in Singapore, where a recent Google study showed that smartphone penetration is a whopping 62% (compared to 31% in the US). In fact, of the 11 countries in Asia surveyed, four of them (Singapore, Australia - 37%, Hong Kong - 35%, Urban China - 35%) had higher smartphone penetration rates than the US (and amongst 18-29 year olds, 84% of Singaporeans had smartphones, compared to 47% in the US!). With many of the more populous countries having young populations (average age: Philippines - 22.9, China - 35.5, India - 26.2, Indonesia - 28.2 - see World Factbook), the gen Y factor is driving employees to question whether the current way of working makes the most sense.
With so many young, mobile and connected employees, it is no surprise that CIOs across the region regularly complain about the company staff self-deploying devices, applications and services from the web or from app stores. The attitude of many IT shops is to shut it down - interestingly, the whole concept of "empowered employees" is quite "taboo" in some countries across the Asia Pacific region. A CIO recently told me that "smartphones and social media have come five years too soon" - referring to the fact he is planning to retire in five years, and that these technology-centric services are proving to be quite a headache for his IT department!
About five months ago, I “broke up” with T-Mobile in favor of AT&T. I was a T-Mobile customer for six years on a very competitive service plan. But none of that mattered; I wanted an iPhone, and T-Mobile couldn’t give it to me. It was a clean but cruel breakup: AT&T cancelled my T-Mobile contract on my behalf, the equivalent of getting dumped by your girlfriend’s new boyfriend.
I bring this up because it reminds me of the saying: “If we don’t take care of our customers, someone else will.” This is particularly important to remember in “The Age Of The Customer” where technology-led disruption is eroding traditional competitive barriers across all industries. Empowered buyers have information at their fingertips to check a price, read a product review, or ask for advice from a friend right from the screen of their smartphone.
This is affecting your IT just as much as your business: As an indicator, Forrester finds that 48% of information workers already buy whatever smartphone they want and use it for work purposes. In the new era, it is easier than ever for empowered employees and App Developers to circumvent traditional IT procurement and provisioning to take advantage of new desktop, mobile, and tablet devices as well as cloud-based software and infrastructure you don’t support. They’re “cheating” on you to get their jobs done better, faster, and cheaper.
To become more desirable to your customer – be it your Application Developers, workforce, or end buyers – IT Infrastructure and Operations leaders must become more customer-obsessed, which I talk about in this video:
We at Forrester have written a lot about the “empowered era” in the past year. We’re talking about the empowerment of customers and employees, the consumerization of technology, and grass-roots-based, tech-enabled innovation. There are lots of great case studies around illustrating these forces and how they can benefit the enterprise, but those success stories are only part of the picture. Behind the scenes, there is disruption and confusion about who’s planning the road ahead regarding the technology in our organizations’ future. It used to be that the CIO made sure that happened by making it the exclusive domain of strategic planners and enterprise architects. But isn’t centralized — and IT-based — tech planning the opposite of empowerment? Wouldn’t sticking with the old approach result in missing out on all this employee innovation that’s supposed to be so powerful? Should the CIO no longer establish the technology the enterprise will use? Does the empowerment era mean the end of tech planning as we know it?
Consider the following scenario: It’s a hot summer day and a prospective customer walks into your store to buy an air conditioner. He evaluates several models and then buys one — but not from you. It turns out your competitor located two miles away is offering the same model at a 20% discount. How did he know this? He scanned the product's bar code using the RedLaser app on his iPhone, which displayed several local retailers with lower prices than yours. If he had been willing to wait three days for shipping, he could have purchased the exact same model while standing in your store from an online retailer at a 30% discount.
This type of technology-fueled disruption is affecting all industries, not just retailers. Since the early 1900s, businesses relied on competitive barriers such as manufacturing strength, distribution power, and information mastery. But this is all changing in the age of the customer, where empowered buyers have information at their fingertips to check a price, read a product review, or ask for advice from a friend right from the screen of their smartphone.
To compete in the age of the customer, your business must become customer-obsessed. As Forrester’s Josh Bernoff (@jbernoff), SVP of Idea Development and author of Groundswelland Empowered, advocates in his latest research: “The only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, delighting, connecting with, and serving customers.”
I'm not going to comment on the $8.5B purchase price, though I'm sure Marc Andreesen's investment company is happy with their return. And I'm not going to comment on the impact on Xbox, Hotmail, and Live.com. And I don't think this has anything to do with Windows Mobile.
But I am going to comment on the impact of the deal on the enterprise, and specifically on content and collaboration professionals responsible for workforce productivity and collaboration. When you strip it down to its essence -- Skype operating as a separate business unit reporting to Steve Ballmer -- here's what you need to know about the Skype deal:
First, Microsoft gets an important consumerization brand. Skype is a powerful consumer brand with a reported 600+ million subscribers. But it's also a "consumerization brand," meaning that it's a valuable brand for people who use Skype to get their jobs done. Consumerization of IT is just people using familiar consumer tools to get work done. It's a force of technology-based innovation as we wrote about in our book, Empowered: Unleash Your Employees, Energize Your Customers, Transform Your Business. Google and Apple and Skype have dominant consumerization brands. Microsoft does not. Until now. And as a bonus, Google doesn't get to buy Skype. And more importantly, neither does Cisco.
Greetings — thanks for taking the time to read my inaugural blog! Let me introduce myself by way of continuing a discussion that I started at Practicing EA and CIO.com on innovation and technology that I think strikes at the heart of our challenges as enterprise architects. It also provides a good context for my future research, which I discuss at the end.
Closing The Innovation Gap
In part 1 of this post, I claim that a gap opened while we were fighting the overly complex, expensive current state and trying to help our business partners innovate with new technology.
The gap – We cannot deliver new technology and innovation quickly or cheaply enough.
Shadow IT Is The Symptom, Not The Cause
The Symptom – We often blame Shadow IT and manual workarounds for increases in complexity, reduction in quality of service, and obscuring true technology costs. These are symptoms of the problem, not the problem itself.
The Cause – Business users know more about what they need and when they need it and are the most motivated to solve their problems now, not once the budget cycle gets around to funding a project. Central IT, where most EAs practice, is a knowledge store for designing enterprise-scale systems but is constrained in its ability to deliver.