China’s Cybersecurity Law Challenges Foreign Companies To Accelerate Their Digital Transformation

On November 7, China’s top legislature adopted a cybersecurity law to safeguard the sovereignty on cyberspace, national security, and the rights of citizens. The law has seven chapters that define specific regulations in various areas, such as network operational security (including key IT infrastructure), network information security, monitoring, alerting, and emergency situation handling as well as related legal responsibilities.

Some critics, especially those in Europe and the United States, continue to read too much into the negative impact of this legislation. I believe that it’s the reasonable move for the Chinese government to make in order to balance national security, citizen privacy, and economic openness. Foreign players in the Chinese market must revisit their local strategy and accelerate their digital transformation if they don’t want to miss the increasing needs and new opportunities regarding security and privacy:

  • The cybersecurity law has substantial advantages that benefit cybercitizens. For example, for the first time, the Chinese government requires that vendors providing cyberproducts and cyberservices must make clarifications to users and attain their approvals before they collect personal information. The new law also regulates that if companies leak or illegally sell personal information to third parties, they must bear legal responsibilities accordingly. These regulations mark a critical milestone in China’s journey toward personal privacy protection, and they are also important for consumers in the world’s largest market to protect themselves against internet fraud and spam messages.
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Boost Digital Business With The Internet Of Things

The rise of mobile networks, improved wireless tech, and rapid sensor innovation over the past 10 years has enabled companies to use internet-connected sensors and actuators to improve business operations and transform products. The ever-increasing number of connected devices is opening up new business models and new opportunities for both tech vendors and end users; as a result, IoT is becoming an essential cornerstone of the business technology agenda. Enterprise architecture professionals must define a holistic IoT software architecture to navigate through the complex technology landscape.

I’ve recently published two reports focusing on how to architect the IoT software stack. These reports analyze the heat maps and trends around IoT adoption in China and introduce Forrester’s IoT technology stack reference architecture. They also show EA pros how to achieve strategic business outcomes and unleash the power of digital business by analyzing the IoT practices of visionary Chinese firms. Some of the key takeaways:

  • Successful IoT initiatives yield substantial business value. Outstanding IoT initiatives achieves strategic outcomes, such as competitive differentiation, customer experience enhancement, and asset performance optimization. Chinese companies have successfully launched IoT initiatives to establish their digital business in various industries, including energy, automotive, logistics, and manufacturing.
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Forrester Predictions: Ten Key Developments In Cloud Computing Shape The Industry In 2017

I’m pleased to announce that Forrester’s cloud computing predictions for 2017 published this morning!

Check out Predictions 2017: Customer-Obsessed Enterprises Launch Cloud’s Second Decade. Our cloud team has gathered 10 key developments in cloud computing that will shape this industry in 2017 — and what you should do about them today.

Cloud computing has been the most exciting and disruptive force in the tech market in the last decade, and it will continue to disrupt traditional computing models at least through 2020. Starting in 2017, large enterprises will move to cloud in a big way, and that will supercharge the market. We predict that the influx of enterprise dollars will push the global public cloud market to $236 billion in 2020, up from $146 billion in 2017.

Cloud platforms from the global megacloud providers like Amazon Web Services, Microsoft, IBM, Google, Salesforce, Oracle, CenturyLink, and SAP will set the pace, accelerating adoption of private cloud and hosted private cloud as well. In 2017, you need to:

  • Get your private cloud and SaaS strategy in shape in 2017 — start now!
  • Educate yourself about exciting developments in hyperconverged infrastructure, security, networking, and containers.
  • Take a fresh look at your regional and industry-specific cloud providers — specialization is afoot.
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How British Gas Transformed Customer Engagement And Won Our 2015 EA Award

Customers’ perception of a company depends on their experiences with the organization at every point of contact. Companies can try to change how customers view a brand in a number of ways, such as a new mobile app or an improved complaint-handling process. However, to really improve customer perception, every interaction at every touchpoint must answer questions, suggest new services, and deepen the relationship. Many firms fail to tap into business opportunities that their front-line employees encounter because their processes and technology are antiquated. 

Enterprise architecture (EA) programs can lead the effort to address these limitations and deliver benefits to customers. British Gas, one of the winners of the 2015 Forrester/InfoWorld EA Awards, is a firm that seized its opportunity. My recent report, Enterprise Architects Transform Customer Engagement, analyzes the key practices enterprise architects at British Gas made to serve as brand ambassadors and to improve customer satisfaction levels and highlights key lessons for EA leaders. These practices include:

  • APIs, cloud, and big data technologies power the new engagement platform. To build an engagement platform that delivers customer insights to front-line engineers, the British Gas EA team developed a platform architecture that uses APIs and cloud and big data technologies to support a new engagement platform and the applications on top of it. The API mechanism simplifies digital connections to business applications; cloud infrastructure provides robustness and agility for business operations; big data technology arms field engineers with customer insights; and policies and multitenancy ensure flexibility and security.
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Architect Process Agility With BPM Platforms For Digital Business

Some CIOs and enterprise architecture (EA) pros believe that business process management (BPM) is on the opposite side of agility — but they don’t realize that BPM technology itself is also evolving. Agility-oriented BPM platforms are the foundation of a digital business. I’ve recently published a report that discusses the four key areas that EA pros must focus on to accelerate digital transformation with BPM. Some of the key takeaways:

  • Modern BPM is critical for digital business. Process agility is critical to giving businesses the agility that powers digital business. BPM adoption is gaining momentum in China; EA pros must drive the use of modernized BPM platforms and methods to accelerate digital transformation. 49% of budget decision-makers in China from both the technology and business sides will increase their spending on enterprise process applications, which is higher than their global peers.
  • An outside-in approach is key to digital transformation. EA pros must understand key BPM platform capabilities and unique local demands. For the Chinese market, this means data-intensive user interfaces with integration and security needs, complex organizational hierarchies and ad hoc decision-making approval processes, and a unique social environment for cross-region collaboration. EA pros should then use these requirements to align the architecture for agility-oriented process platforms. Forrester has introduced a reference architecture for agility-oriented process platforms that consists of four layers: enablement, foundation, engagement, and management.
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US Government: Huawei Should Be Your Digital Business Partner, Not Your Enemy

Huawei Technologies started out nearly 30 years ago as a small private company with 14 employees and 140,000 yuan in capital. By 2015, its total revenue exceeded $60 billion. Huawei is already a global company, but its globalization journey has been a difficult one since the very beginning. Despite its continuous business growth in other regions, Huawei has faced critical censorship in the US since Day One — and last week the US government put Huawei under the microscope yet again.

National security is important, but using “national security” as an excuse for allowing unfair competition will only harm customers. It’s time for the governments of both countries to trust each other more. I’ve recently published a report focusing on Huawei’s continuous progress toward becoming a key enabler of digital transformation in the telco and enterprise spaces. Some of the key takeaways:

  • Huawei has holistic strategies for digital transformation. Huawei’s broad vision of digital strategy — which focuses on cloud enablement and readiness, partner enablement, and open source co-creation — has helped the firm sustain strong business growth in the telco and enterprise markets. For example, its partnerships with T-Systems on the Open Telekom Cloud in Germany and with Telefónica on public cloud in the Americas have helped carriers in local markets give cloud users on-demand, all-online, self-service experiences.
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Architect Your Predictive Analytics Capability To Unleash The Power Of Digital Business

Predictive analytics has become the key to helping businesses — especially those in the highly dynamic Chinese market — create differentiated, individualized customer experiences and make better decisions. Enterprise architecture professionals must take a customer-oriented approach to developing their predictive analytics strategy and architecture.

I’ve recently published two reports focusing on how to architect predictive analytics capability. These reports analyze the trends around predictive analytics adoption in China and discuss four key areas that EA pros must focus on to accelerate digital transformation. They also show EA pros how to unleash the power of digital business by analyzing the predictive analytics practices of visionary Chinese firms. Some of the key takeaways:

  • Predictive analytics must cover the full customer life cycle and leverage business insights. Organizations require predictable insights into customer behaviors and business operations. Youmust implement predictive analytics solutions and deliver value to customers throughout their life cycle to differentiate your customer experience and sustain business growth.You should also realize the importance of business stakeholders and define effective mechanisms for translating their business knowledge into predictive algorithm inputs to optimize predictive models faster and generate deeper customer insights.
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Managing The Complexity Of Hybrid Cloud: Learn From Leading Chinese Firms

Cloud is becoming the new norm for enterprises. More and more companies across the globe are using a combination of two or more private, hosted, or public cloud services – applying different technology stacks to different business scenarios. Hybrid cloud management is now an important priority that enterprise architecture (EA) professionals should consider to support their organizations on the journey toward becoming a digital business.

I’ve recently published two reports focusing on how to manage the complexity of hybrid cloud. These reports analyze the key dimensions to consider for hybrid cloud management and present four steps to help move your firm further along the path to hybrid maturity. To unleash the power of digital business, analyze the strategic hybrid cloud management practices of visionary Chinese firms on their digital transformation journey. Some of the key takeaways:

  • Align hybrid cloud management capabilities with your level of maturity . Hybrid cloud maturity is a journey of digital transformationcovering four steps: initial acceptance, strategic adoption, hybrid operationalization, and hybrid autonomy; maturity is measured by familiarity with, experience with, and knowledge of how to operate cloud. EA pros should build their management capabilities step by step, aiming to unify and automate cloud managed services by understanding technical dependencies and business priorities.
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Engaging Customers In The World's Largest Mobile Market

Consumers and businesses around the globe have entered the mobile era, and technology management leaders are shifting their organizations’ business applications toward mobile. In order to effectively make this shift, mobile teams must change their practices to simultaneously improve agility and ensure a good customer experience. This is even more critical in China — a market with unique business scenarios, technology landscapes, and competitive environments.

I’ve recently published two reports focusing on using the mobile IDEA cycle for customer engagement, including part one and part two. In these reports, I assess the current state of mobile application development planning in China and highlight four key areas that enterprise architecture (EA) professionals should focus on in each stage, namely “Identify”, “Design”, “Engineer” and “Analyze”, to enable the success of the mobile IDEA cycle. I also provide examples of how to unleash the power of digital business by analyzing the strategic mobile practices of visionary Chinese firms and highlighting how they use systems of engagement. Some of the key takeaways:

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Red Hat Takes The Lead In Enterprise-Class Container Solutions — For Now

Red Hat held its 2015 summit last week in Boston. One of the most important announcements was the general availability of version 3 of OpenShift. After my discussion with Jim Whitehurst, president and CEO of Red Hat, as well as other executives, partners and, clients, I believe that Red Hat has made a strategic move and is taking the lead in enterprise-class container solutions for hybrid cloud enablement. This is because:

  • Red Hat has an early-mover advantage in platform refactoring.OpenShift and Cloud Foundry, two major open source PaaS platforms, both started refactoring with container technology last year. The developers of Cloud Foundry are still working hard to complete the platform’s framework after implementing Diego, the rewrite of its runtime. But OpenShift has already completed its commercial release, with two major replacements around containers: It replaced Gears, its original homegrown container model, with Docker and replaced Broker, its old orchestration engine, with Kubernetes.
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