Leading-edge executives at organizations drive growth, innovate, and disrupt industries through emerging technologies: social, mobile, cloud, analytics, sensors, GIS and others. 85% of executives in a recent survey shared that “the need to drive innovation and growth” would have a moderate or high impact on IT services spending. But, today’s technology buyers face a fragmented, fast-moving landscape of niche technology and services providers in newer spaces (social, mobile, cloud) as well as new offerings from their largest global partners.
Often the leading- and bleeding-edge disruption comes from business stakeholders, rather than IT or sourcing executives; sourcing executives struggle to keep up with the fast pace of change that business demands. Our research shows that this fragmented, divisional, silo approach to buying (often under the radar screen) can create risk and go against enterprise IT strategy decisions.
To help their organizations navigate through these emerging options, we have identified three key principles of IT sourcing strategy:
Change the rules for working with vendors and partners. To thrive in the world of digital disruption and to enable sourcing of emerging technologies and services that drive digital disruption, sourcing strategists must create new rules for working with technology partners. They must increase the emphasis on innovation and differentiation and treat partners who excel in these dimensions differently from other tiered suppliers.
Mobile BI and cloud BI are among the top trends that we track in the industry. Our upcoming Enterprise BI Platforms Wave™ will dedicate a significant portion of vendor evaluation on these two capabilities. These capabilities are far from yes/no checkmarks. Just asking vague questions like “Can you deliver your BI functionality on mobile devices?” and “Is your BI platform available in the cloud as software-as-a-service?” will lead to incomplete vendor answers, which in turn may lead you to make the wrong vendor selections. Instead, we plan to evaluate these two critical BI platform capabilities along the following parameters:
Animations. Does the product support animations? For example, if a particular dimension, such as time, has hundreds or thousands of values (as in daily values over multiple years), manually clicking through every day is not practical. Launching an automated, animated scroll up and down such a dimension is a more practical approach.
In light of my expectations (http://goo.gl/ZIU9d), Mobile World Congress contained few real surprises this year. This is not to say that MWC was boring: It provided valuable insights into the state of the mobile market from an enterprise perspective:
No single theme dominated. However, it felt as if everybody was talking about some combination of cloud, mobility, and big data. Many providers and vendors added the theme of customer experience to the mix and seasoned it with many acronyms. Unfortunately, in most cases this was not enough to trigger real excitement. The lack of a single new hot trend indicates that the mobile industry is maturing. Mobility has arrived center stage.
Most vendors are addressing consumerization only in the context of BYOD. In my view, BYOD is only one aspect of consumerization. I believe we will see the broader impact of consumerization in the near future. Consumers increasingly expect to work in a manner reflecting communication methods that are familiar in the context of friends and family. Also, consumers are increasingly asking to work when and where they want. Although some companies, including Yahoo (good luck!), are reintroducing the traditional concept of "the team works in the office," the overall trend is toward a more fragmented and consumerized working environment. In turn, this offers potential for mobile workplace solutions.
With just over a billion people around the world having a smartphone in 2012, and the next billion smartphone adopters joining in within the next five years, smartphones have reached a tipping point. Malcolm Gladwell defines the tipping point as “the moment of critical mass, the threshold, the boiling point” within a sociological ecosystem. A technology hits critical mass when one-fifth of the population adopts it. For smartphones, developed economies witnessed this phenomenon in 2011.
North America and Europe top the global smartphone penetration rates, at 47% and 35%, respectively. However, they are outpaced in terms of the sheer number of users by the Asia Pacific region. In fact, China alone already has more smartphone users than any other country in the world. And our forecast shows that Asia Pacific is also the fastest-growing region for smartphone adoption, projected to increase by approximately 20% per year.
In the Forrester Research World Smartphone Forecast 2012 To 2017 (Global), we investigate the size, speed, operating system (OS) dominance, and user demographics of the competitors in the world’s smartphone showdown. Younger and wealthier adults are the early adopters of smartphones, but there will be a gradual progression toward adoption by lower-income and older adults as smartphones become cheaper and the offerings of basic phones become more limited.
Forrester’s recent research shows that, while Asia Pacific lags developed regions like North America and Europe in terms of smartphone penetration, the growth of smartphones will be highest in APAC between 2012 and 2017. As indicated in our recently published report, Forrester Research World Smartphone Adoption Forecast, 2012 To 2017 (Global), by end of 2013, Forrester estimates that smartphone penetration in North America will be 57%, followed by Europe with 42% and APAC with 21%. But in terms of the compound annual growth rate during the same period, smartphone penetration in APAC will grow by 20%, followed by Europe with 11% and North America with 10%.
The sharp increase in the number of smartphone users will greatly affect both the consumer and enterprise landscapes. Building on Forrester’s deep research on the Asia Pacific mobility opportunity, we will be holding a series of complimentary quarterly webinars to help our clients make sense of this rapidly changing landscape and position for success. Starting in March and covering the consumer and enterprise mobility markets, the webinars will bring together Forrester analysts from around the world to present a global and Asia Pacific perspective.
On March 5, 2013, I will present a mobile trends and summary webinar with my colleagues Thomas Husson and George Lawrie. This session will cover our key findings from this year’s Mobile World Congress in Barcelona, share our view of key 2013 mobile trends, and share best practices for building a successful business case for mobile initiatives. You can register for the webinar here.
It’s that time of the year: the pilgrimage to the Mobile Mecca, Mobile World Congress (MWC), in Barcelona. This is my 10th pilgrimage in a row and, needless to say, the event has changed tremendously over the past few years – from 3GSM in Cannes to the new venue in Barcelona this year. While CTIA is still very US-centric and CES is still a lot about TVs, MWC is really the only global mobile event with a strong presence of operators and handset manufacturers from all over the world. Every year the show becomes not only more global, but also more open to new categories of players — such as advertisers and developers — willing to make the most of mobile technologies, and more open to connected devices that go far beyond the traditional definition of a mobile phone. Markets are colliding and mobile innovation is at the center of these upheavals. MWC used to be a telecom show focusing mainly on mobile technologies, but the event is now bringing together people from every industry.
In the light of today’s first announcements, here is my take on how to put in perspective the announcements to be made at MWC 2013 in the coming days:
As an analyst who focuses on the future of communications and the implications for business, I will travel to Mobile World Congress (MWC) with several expectations:
There will be a greater focus on business solutions, not just hardware and software exhibits. OK, in many respects, this is probably more of a hope of mine than an expectation. MWC visitors will still encounter hall after hall of software and hardware. Still, I expect many exhibitors, including device players like Samsung, to show a growing awareness by focusing more on actual end user business needs, including a vertical perspective.
Consumerization as a focus area is just heating up. The information workforce is fragmenting. Information workers will increasingly expect to work in a flexible framework. Forrester’s research highlights significant differences in communication and collaboration behavior between age groups. Social media — the communication channel of choice for those now entering the workforce — brings big challenges for businesses in the areas of procurement, compliance, human resources, and IT. However, I expect these themes to be addressed mostly superficially at MWC.
The merger of big data, mobility, and cloud computing is recognised as a large business opportunity. Mobility by itself only scratches the surface of the opportunities in areas like customer interaction, go-to-market dynamics, charging, and product development, which are emerging in combination with big data and cloud computing. I expect providers like SAP to touch on several aspects of this trend. The momentum is supported by the trend toward software-defined networking.
Thanks to the good work of my colleagues Eve Maler and Jeffrey Hammond, we have a new Forrester Wave on API Management Platforms, including evaluations of Layer 7, Mashery, WSO2, Intel, IBM, Vordel, and 3Scale. I won't spill the beans on the leaders, but I will share some of their analysis with my own interpretation to explain why you must care. First, let's define API management platforms as:
Middleware that developers use to publish and configure interfaces and that applications use at runtime to connect to the data services they need.
Here's why API management platforms matter:
As you build mobile apps for customers, partners, and employees, you need apps that perform well over the last wireless mile. And that means you need a great, RESTful API that provides design-time and runtime access to data services hosted by your on-premises applications. Think of it as "cloud-connect" technology that lets the data inside your datacenter get out and back (securely) to the mobile app that needs it. As mobile apps get more and more transactional, the need for API management platforms will become even more critical.
You are just getting going on the number, breadth, and complexity of the data service APIs you will need to build and operate. As mobile apps get interesting, with transactions, integrated applications, and more and better content and collaboration, you will need solutions that handle all those integration points. Think of it this way: RESTful interfaces give you the means, but now you need a system to handle the sheer number of APIs you are and will be building.
Mobile apps have the thorny problem of needing to work spectacularly and safely on any device over the last wireless mile. Systems integrators, interactive agencies, software vendors, and your own infrastructure and application development teams will pitch you endlessly on technology to handle these problems. Some of these technology solutions will be great. But others carry traps for the unwary. In our new report, we call out 7 pitfalls and describe 7 mobile-first alternatives that are better.
One big trap lurking in most firms’ mobile strategy is using MDM to indiscriminately lock down devices. The temptation to replicate the BlackBerry era will backfire. Remember that RIM’s controls is partly what spurred employees and executives to defect to iPhones. If you lock mobile devices down too tightly, you will be pummeled for putting a theoretical concern for information security ahead of usability and the practical reality of a productive mobile workforce. If people can’t immediately get what they need, they’ll leave the phone in their pocket.
Figure 1: 7 Pitfalls To Avoid
Print out this list of pitfalls and their alternatives and tape it your monitor. Or blow it up and post it in your mobile center of excellence. Here are two pitfalls for everybody to avoid:
Is it me or my expectations? My mobile travel applications have only improved over the past 12 months (and I mean this sincerely), but my disappointment has never been so acute. Why? My expectations have never been higher. I access information more frequently (see Ted Schadler's and John McCarthy's Engagement report -- they quantify this), and I expect more accuracy. In the absence of tethering my computer or tablet to to my mobile-phone-turned-hotspot (difficult on the move), I turn to my mobile phone for services. "Immediacy" is what makes mobile so valuable. If I can't get real-time, accurate information on the go, then how useful are the mobile services?
11. (an extra) When I use the mobile app to add the boarding pass to Passbook, why does only one of two boarding passes go there when I have a connecting flight?
10. I uploaded an update to the loyalty program from the hotel chain. It deleted all of my account information. Awesome. Really guys?
9. I searched the mobile app, mobile web, and full web for a way to recover my account number - not possible in my 10 minutes of searching. Only possible to get password.
8. I called customer service (hotel brand) while sitting on the plane to get my account number. They asked me to state my password out loud (while on the crowded plane). I gave them the password, and they told me it was incorrect. They proceeded to ask for all of my additional security information (e.g., mother's maiden name). "We have these rules in place to protect your privacy and ensure the security of your account." I'm thinking, "My hotel frequent stay account??? It's easier to get my user name and password from my bank!!" Terrible user experience.