Lack Of Vision And Planning Prevent Organizations In Emerging Markets From Technology Leapfrogging

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Fred Giron

When I moved to India about two years ago, I arrived with my own expectations regarding emerging markets. One of them was that the lack of legacy IT applications and infrastructure would make these markets an ideal place for new technologies and delivery models like as-a-service to thrive. In other words, organizations in emerging markets would “leapfrog” to new technologies without going through some of the prior technology investments witnessed in developed markets. Unfortunately, the reality is not that simple.

One of the key takeaways of my recent reports (Australia, China, India Set The Pace For Asian IT Services and The Changing Face Of ASEAN IT Services — to be published in January 2012) is that most of the growth in emerging countries will come from traditional IT services such as ERP implementation, infrastructure deployment, and system integration. Against common belief, emerging services — including cloud and mobility — will represent less than 20% the total annual growth in emerging markets in 2015.

I see several reasons for this:

  • Lack of governance and planning. An IT department’s role is merely one of provider of applications and infrastructure, whose main objective is to react to business needs.
  • Lack of internal skills. Client organizations do not have the adequate skills internally to take on complex transformational projects involving new technologies such as virtualization, business analytics, and mobile enterprise application integration platforms.
  • Lack of IT services culture. Most client organizations in emerging markets leverage external skills to help them with basic tasks such as hardware maintenance and software deployment.
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Growing Momentum Around eCommerce In Brazil

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Zia Daniell Wigder

Back in September, I wrote up a few of my findings from meetings with companies in the eCommerce space in Rio and São Paulo. We’re fielding an increasing number of questions about Brazil, and indeed, while eCommerce in Brazil today is still heavily dominated by local companies, the landscape is starting to include more international players:

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Fake Apple Stores - Is This The Tip Of A Counterfeit Iceberg?

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Martin Gill

Last week a lone blogger broke the news that not one but three fake Apple stores had sprung up in the city of Kunming in China, though it appears the problem is fast becoming a worldwide one for Apple to deal with.

It’s no secret that counterfeit goods are commonplace in China, and there are moves afoot to attempt to tackle this issue, at least online. However, this is a very different beast. There has been an explosion of commentary in the press about these fake stores, mostly focusing on the fact that they exist, and mostly failing to draw any comment for Apple.

Action has been taken. According to China Daily, “A local authority had previously said that two of the stores were suspended for not having business licenses. But the local industrial and commercial bureau confirmed to the Shanghai Morning Post on Tuesday that one of them had in fact obtained a license on June 22 and thus could stay open.”

The general tone of the various reports is that the stores are selling genuine Apple products bought wholesale through genuine channels, and that the only reason they would be closed down is because they didn’t follow local laws to obtain a retail license. Not because of any IPR infringement. This will be an interesting story to watch play out -- because if that turns out to be true, it sets a gloomy precedent for other retailers who may be suffering the same challenge.

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Understanding How To Deploy Chat Internationally Offers Insight About Multi-Language Considerations At Home

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Diane Clarkson

Many eBusiness professionals -- inspired by the business results they have seen at home with chat including call deflection, increased conversion, and enhanced customer satisfaction -- are expanding chat into their international Web sites.

While the elements of a successful chat transcend borders, the components to a successful international deployment can be complex. eBusiness professionals must consider their international markets, their international readiness, and what localization will be required to be successful. To assist in meeting these challenges, we published a document today called, "Taking Chat International: Paving The Way To Success Through Effective Localization."

One of the more complex challenges is managing translation. Some of the key questions include:

  • Should you hire native speakers or translate during chat sessions? Hiring native speakers is ideal, but not always practical. Alternatives include training chat reps to identify variations in spelling, grammar or vocabulary between different audiences or using translation technology.
  • What will be needed from technology to support multi-language agents? Key considerations include what it will mean to business processes when an agent supports chat sessions coming in from different languages, the impact if agents will need to search for answers in one language and push answers to consumers in another, and the impact of multiple languages on your maintaining an accurate knowledge base.
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Forrester Publishes Its First Online Retail Forecast For Brazil And Mexico

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Zia Daniell Wigder

Over the past year, we’ve worked together with the forecast team at Forrester to help eBusiness professionals understand the size of different online retail markets around the globe. Last year we published our first look at the online retail markets in some of the major markets in Asia-Pacific — this year, we’ve just published our first forecast for two of the largest online retail markets in Latin America, Brazil and Mexico. Some findings from the report include:

  • Brazil is — and will remain — the powerhouse in the region. With more than 40% of the online users in the region and a steadily growing economy, it’s not surprising that Brazil’s eCommerce market will outpace all others by a wide margin. Brazil’s projected 2011 sales of almost $10B put it behind other major online retail markets like France and South Korea but ahead of smaller ones such as the Netherlands and Italy.
  • Mexico’s online retail market is small today — but growing by a CAGR of almost 20%. With less than half of the online users of Brazil and limited online spending, Mexico’s online retail market remains a small fraction of the size of Brazil’s. Average online spending per buyer will not increase significantly over the next five years, but the sheer number of online buyers will.
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Your Social Media Programs Are Global - Whether You Want Them To Be Or Not

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Nate Elliott

The Groundswell is now global. Social media has entered the mainstream in every single market Forrester regularly surveys — and in most of those markets, social media use is at 75% or higher. Australian, Japanese and Italian online users all show stronger adoption of social media than Americans do – and Chinese, Dutch and Swedish users have nearly pulled level with the Americans. And in 2010 Facebook reported that more than 70% of its active users were outside the US, while Twitter said more than 60% of its accounts come from outside the US.

The simple fact is that if your company has a social media program, that program is global — whether you want it to be or not. And this isn’t just a nuisance or a language issue. Failing to recognize the global nature of your social programs means you might be telling foreign users about products that aren’t available in their countries (for instance, Toyota UK reached more than 100 million people with a fantastic blogger outreach program for its iQ model; but it turns out that more than 95% of those people live in countries where the iQ isn’t for sale). Or you may be advertising discounts and promotions to which many users don’t have access (for instance, while Amazon’s Facebook page promoted a special price of $89 for the Kindle last November, a Kindle cost almost twice as much in the UK — and wasn’t available at all in most other markets). If you work in a regulated industry like financial services or pharmaceuticals, you risk running afoul of government regulators.

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Sputnik Moments Drive Education Investment: Good News for Tech Vendors

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Jennifer Belissent, Ph.D.

“Winning the Future” was the theme of the recent US State of the Union address.  With the global economy and new education performance rankings as our “sputnik moment,” the president urged Congress to invest in the future – and in education.  As put it in the speech,

Maintaining our leadership in research and technology is crucial to America’s success.  But if we want to win the future -– if we want innovation to produce jobs in America and not overseas -– then we also have to win the race to educate our kids.

So what exactly was the sputnik moment, or one of them?  In the recently released OECD Program for International Student Assessment (PISA) rankings, the US didn’t do so well.  US students were average performers in reading (rank 14 in OECD) and science (rank 17) but well the below the OECD average in mathematics (rank 25).  The new top fliers in the PISA study are: Shanghai, Korea, Hong Kong, Singapore, Finland, Canada, Japan and New Zealand.

According to the OECD report,

Education is the single most critical investment to raise the long-run growth potential of countries. In the global economy, the performance of education systems is the yardstick for success, particularly in light of the fundamental technological and demographic challenges that are re-shaping our economies.

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Global Marketing Is Messy, And Organizations Must Adapt

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Steven Noble

When Unilever launched its "Dirt Is Good" campaign, the company probably imagined parents like myself breathing a sigh of relief as we learned to love our children's mess. However, the tagline has a double meaning. To my mind, "Dirt Is Good" perfectly summarises the chaos that is global marketing — mess that can be as puzzling as a finger painting, and just as satisfying.

With the "Dirt Is Good" tagline, Unilever actually supported four different brands of laundry detergent: Persil, Skip, Via and Omo. To complicate matters further, these brands occupied different positions in different markets. Take Omo, for example: it's a premium brand in Brazil; a second tier brand in Australia, France, and South Africa; and no longer sold in Britain, Ireland, or New Zealand, where Unilever promotes Persil as its premium brand instead. Compare this to Marketing MBA Fantasy Land, where the perfect tagline falls out of the brand architecture, which aligns with the product offer and the product's corresponding position in the market.

Global marketing is one big mess, and the CMOs who win will be those who Create An Adaptive Global Organization, to borrow a phrase from my latest report. In other words, CMOs must create a global marketing team that uses data and customer insight to learn, adapt, and grow in real time, anywhere in the world.

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Where in the world?

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Jennifer Belissent, Ph.D.

Calling all tech industry marketing and strategy professionals!  We need some help with our current research on market opportunity assessement. 

"Where in the world are you?  And, how'd you get there?"

Strategists in the tech industry face a continuous stream of critical decisions in today’s complex global market. One of those is “where in the world?”  One the one hand, globalization expands the options available, making it “easier” to enter new markets.  However, those decisions aren’t always themselves easy.  To better understand how strategists are undertaking the tasks of identifying, evaluating and prioritizing technology market opportunities in new geographies, we have launched a short survey.  The survey questions include background on market presence and intended entry, data sources and factors that influence these decisions, stakeholders' involvement, and the process itself. This is where we need your help. If you are part of a team or team leader for strategic planning in global markets, we’re interested in your input.  The data gathered will be used for an upcoming report – Where in the World? Tech vendor strategists weigh opportunities (and risks) of expansion (working title). The report will also use public data and research interviews (where we'd also like your help).

Click here to take the survey

The survey should take no more than 15 minutes and participants who complete the survey will receive a complimentary copy of the completed report. Terms and conditions (the fine print): As always, we keep your individual responses confidential. 

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Examples of cloud migration delays due to global data privacy concerns

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Jennifer Belissent, Ph.D.

[Co-authored by Zachary Reiss-Davis]

On March 30, 2010, Yale University placed a migration to Google Apps for its email services on hold over privacy and security concerns, especially regarding a lack of transparency about in what country its data would be stored in.

Michael Fisher, a computer science professor involved in the decision, said that “People were mainly interested in technical questions like the mechanics of moving, wondering ‘Could we do it?’ ,but nobody asked the question of ‘Should we do it?’” and went on to say that the migration would “also makes the data subject to the vagaries of foreign laws and governments, and “that Google was not willing to provide ITS with a list of countries to which the University’s data could be sent, but only a list of about 15 countries to which the data would not be sent.”

This closely aligns with our January report, “As IaaS Cloud Adoption Goes Global, Tech Vendors Must Address Local Concerns” which examined security and privacy issues involved in moving data to the cloud, especially when it’s no longer clear what country your data will reside in. In this report, we offered that IaaS  providers should give “guidance on where data is located and location guarantees if necessary. Rather than merely claiming that data is in the cloud, tech vendors must be prepared to identify the location of data and provide location guarantees (at a premium) if required.” 

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