Finovate Europe 2012: Innovation In Digital Financial Services

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Benjamin Ensor

A number of people asked me to repeat my blog post from last year with my impressions from Finovate, so I thought I would.

For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.

I was lucky enough to go along to the show in London today. Unlike last year, when four or five themes dominated the day, this year’s exhibitors were more diverse. Among them were:

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Apple Schools Textbook Publishers In Education Innovation

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Sarah Rotman Epps

 At Apple’s event today in New York, Apple unveiled iBooks2, a new version of its iBooks software that is tailored to interactive textbooks, and iBooks Author, an app that makes it free and simple to create interactive textbooks for the iPad.

There are already thousands of digital textbooks available on the iPad, as well as on other devices like PCs and Barnes & Noble’s Nook Tablet. But as my colleague Annie Corbett and I have written, e-textbooks are a transitional product, accounting for only 2.8% of the $8 billion US higher education textbook market in 2010, according to the National Association of College Stores. The vast majority of digital textbooks are not very innovative; they’re essentially print replicas with digital extensions like highlighting, search, and annotation. The iPad — which now outsells Macs in schools, according to Apple — is capable of much more than what has previously been produced, and Apple hasn’t been satisfied with the status quo. Today, Apple demonstrated iBooks2, a new textbook experience for the iPad; these new textbooks can be created using iBooks Author. iBooks2 will solve two product strategy problems for publishers:

  • Production cost. Companies like Inkling are doing quite well helping publishers take their education apps to the next level. The problem is that publishers’ content creation and production processes are still optimized for print, not digital, so working with Inkling is expensive (in terms of publishers’ labor, not necessarily Inkling’s fees). So most publishers opt to create a small number of new apps and settle for digital replicas or “enhanced eBooks” of everything else.
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Christmas 2011: The First Mass Customized Holiday Season

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JP Gownder

Ah, Black Friday: What would the post-Thanksgiving shopping bonanza be without a visit to the local mall? This year, I was keen to perform some gumshoe research on a theme I've been talking about all year long: mass customization, a product strategy that's ready for prime time across multiple industries.

A trip to the Natick Mall (yes, "Mall," no longer "Collection," New Englanders) reveals that mass customization isn't just the future; it's the present. In fact, it's hiding in plain sight. Build-a-Bear Workshop, Hallmark, Lego, and LensCrafters are all stores in the Natick Mall that offer significant customization for consumer products. Burberry is the latest Natick Mall vendor to offer mass customization; I am quoted in Time magazine this week (here, but subscription required to view the link; page 82 in the December 5 paper edition) discussing how luxury clothing and customization fit together well. As I've written before, one of the benefits of employing mass customization is that it empowers consumers to create products that express their personalities -- a particularly relevant feature for clothing and apparel products.

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Nordstrom Innovation Lab: The Lean Start-Up Within The eBusiness Giant

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Steven Noble

In April, I published research about the importance of innovation in eBusiness, and how eBusiness professionals can prioritize the many opportunities that lay before them.

To harness these innovation opportunities more effectively, eBusiness leaders must learn how to prototype more quickly, so they can more quickly and cheaply learn what works, and what needs further rapid adaption.

No video showcases these concepts more effectively than this one, from Nordstam Innovation Labs, which I found on Eric Ries' Startup Lessons Learned blog. Enjoy.

Executive Q&A with Sona Chawla, President e-Commerce, Walgreens

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Andrew Stockwell

I'm thrilled that Sona Chawla will be a keynote speaker at Forrester's Consumer Forum in just over three weeks! As the President of e-Commerce, Sona oversees operations and leads the team responsible for building the sales, service and customer experience of Walgreens.com and drugstore.com (acquired in June 2011). This includes driving store traffic through the Web, growing online profitability, and the development of new product and service offerings via emerging digital touchpoints such as mobile.

Earlier today, Sona provided me with a sneak peek of her upcoming presentation for our forum "110 Years Of Agility: Continuing Our Evolution To Meet Customer Demands" and all I can say is that it's not to be missed! I don't want to reveal too much and spoil it, but Sona will touch on the dynamic forces at play within healthcare and retail that are driving Walgreens' digital transformation, the framework they are utilizing to enable that transformation, and finally what Walgreens sees for the future. And of course throughout the discussion Sona will have key lessons learned and advice for firms across industries going through similar transformations.

I do however want to share with you Sona's responses to some questions we asked her in advance of the event. Her thoughts demonstrate the growing importance (and let's not forget the financial benefits) of serving customers across touchpoints with innovative, digital products and services.

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Crowdsourcing Uses For Google's Forthcoming FTTH Networks

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Doug Williams

As you might recall, Google is building Fiber-To-The-Home (FTTH) networks in Kansas City, MO and at Stanford University. Google claims it will offer 1 Gbps broadband at a price consistent with services offered by other broadband providers. (The service is currently offered at $49/month to a handful of customers in Palo Alto.) But what will consumers actually do with such a fat pipe? Most assume that question can't be answered until the service is launched.

But Kansas City-based Think Big Partners is impatient. The early-stage business incubator has launched a crowdsourcing contest of sorts to identify apps or services that have the potential to advantage of all that bandwidth. The Gigabit Challenge will award a total of $200,000 in cash and services to the top ideas, with $100,000 going to the winner. Entries must be submitted between October 3 and October 31; a round of 25 finalists will be announced in mid-November; follow-up business plans are to be submitted by mid-December; and the winners will be announced in mid- to late-January 2012 -- right about the time when the Google network should be up and running.

This is another example of the creative use of crowdsourcing, which provides benefits all around:

  • Bright, creative people are incentivized to think twice about the use cases for a 1 Gbps broadband connection -- even those who are not directly linked to this market;
  • Developers who have already crafted ideas on how to leverage this asset have a chance at some early capital and promotional opportunities that could get them up and running quicker;
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IT Services Industrialization 2.0

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Fred Giron

Mobility, cloud, and smart computing will drive tremendous growth and significant changes in the IT industry over the next few years. My fellow analysts have brilliantly covered these topics in the past few months.

I would like to build on these views and focus more specifically on the productivity race that the IT services industry and its clients have been in during the past 10 years or so. While IT services vendors have managed to improve their output levels in order to protect margins in a market of severely eroding price points, I believe they will rapidly reach a plateau if they continue to use traditional methods. Instead, the most successful IT services firms of tomorrow will increasingly leverage disruptive methods in order to fulfill the client expectations to always “do more with less.”

Ever since the Internet bubble burst a decade ago, clients have pushed their providers to find ways to provide them with continued price decreases for similar or greater output levels. This was achieved thanks to two main levers to decrease the amount of resources required to run IT systems by end user firms:

  • Fewer resources: Optimizing the utilization of resources in order to reduce their consumption. For example, most projects around asset management, infrastructure standardization, consolidation, and virtualization yield the most evident returns as sources of productivity improvement. This is the case in particular in developed countries where companies need to cope with multi-layered legacy technologies that render IT systems as complex and expensive to maintain.
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Conquering The Marketing/Technology Divide

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David Cooperstein

The competitive challenge that companies face today is driven by new issues that transcend classic distribution, brand, and product challenges. In the world we live in today, which Forrester defines as the Age of the Customer, firms need to look at how they deliver marketing and technology solutions that have visible impact on the customer.

Just the other day I was reminded of that when, sitting with a client, he described their competitive threat as coming from software products. That would be normal were it a tech company, but this was an airline! Yes, an airline that required technology and marketing to come together to define a customer experience that would differentiate them beyond seat configuration and route system. This highlighted to me the challenge that many companies face in this new era of disruption (for another view of how to think about this product challenge, see my colleague James McQuivey's recent report "Innovating the Adjacent Possible").

Charles Rutstein, Forrester's COO, sat down with my CIO Practice Leader peer Sharyn Leaver and me to discuss the role that CIOs and CMOs play in this customer-obsessed new world. See what we had to say here:

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What Signal Does The Google-Motorola Marriage Send To Product Strategists?

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Carlton Doty

It’s a couple of days after Google announced its intentions to jump headfirst into the hardware business. By now everyone — including my colleagues Charles Golvin and John McCarthy — have expressed their thoughts about what this means for Apple, Microsoft, RIM, and all of the Android-based smartphone manufacturers. This is not another one of those blog posts.

What I really want to highlight is something more profound, and more relevant to all of you out there who might classify your day job as “product strategy.” To you, the Google/Moto deal is just one signal — however faint — coming through the static noise of today’s M&As, IPOs, and new product launches. But if you tune in and listen carefully, two things become crystal clear:

  • The lines between entire industries are blurring. Google — and some of the other firms I mentioned above — are just high profile examples of companies that are diversifying their product portfolio, and the very industries in which they play. There are several instances of this over the past "digital decade." What's different now is the increased frequency of the occurrences.
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