The CIO, CMO, And Digital Leadership

Nigel Fenwick

digital business demands a healthy CMO CIO partnershipThe 2014 CMO/CIO Survey in conjunction with Forbes offers an opportunity for your voice to be heard in our research.

Read more

Not “Smart” But Efficient: Schneider Electric Helps Cities Achieve Realistic Goals

Jennifer Belissent, Ph.D.

My sister used to tell me that I wasn’t smart I was just organized.  I’m not here to argue (anymore) but I have never forgotten her claim. In fact, it’s true for more than just me.  It’s really what is at the heart of smart cities. It’s not about what you know but what you can do with it. The industry has been pushing “smart” on cities for a half a decade.  But the most successful stories about cities cutting their cost of operations and improving the lives of their citizens are about being better organized or more efficient. 

At the Schneider Electric Influencer Summit in Boston this week, Schneider execs and customers focused their smart city story on just that – getting more efficient. We all have heard the numbers: cities take up only 2% of the world’s surface but they consume 75% of the world’s energy and account for 80% of the world’s carbon emissions.  As the Schneider CMO cited, “If left unchecked, our appetite for energy will grow 50% by 2040.” And there is significant room for greater efficiency. The sweet spot for Schneider in this Next Age of Change is in helping cities control their public energy consumption.  While their vision  – and “marketecture stack”  – extends into water and other domains, they plan to establish their footprint with energy efficiency.  Phew! That’s a refreshing change from vendors who want to do it all.

Read more

Observations From IFA 2014

Dan Bieler

I recently visited the oldest and largest global consumer electronics trade fair, Internationale Funkausstellung (IFA), which took place in Berlin. IFA highlighted that the technology sector retains its appeal. On IFA‘s 90th anniversary, about a quarter of a million visitors attended, and orders for products worth about €4 billion were placed at the event. IFA’s floor space was sold out, despite a 3% expansion.

Electronics companies from around the globe showcased a wide spectrum of connected devices ranging from the smart stove to the latest smartphones and computerized wristwatches — just a few days ahead of Apple announcing its latest gadgets. Although IFA primarily focuses on consumer products and services, many themes are of increasing relevance for CIOs. Leading CIOs recognize that consumer electronics have an impact on their business and that:

  • Consumer electronics offer a new customer engagement channel. Traditional businesses are facing opportunities to use the emerging possibilities for closer customer engagement that consumer electronics in combination with social media channels offer. For instance, smart TVs allow media companies to communicate in real-time with their customers while they watching or listening to the “product.” However, this requires a dramatic rethinking of marketing and sales techniques — something most of the traditional companies are struggling with. This underlines the need to view the “consumer electronics” opportunity as part of the wider digital transformation process.
Read more

Government CIOs And CMOs Unite! Governments Must Embrace The "Marketing" Function

Jennifer Belissent, Ph.D.

Here at Forrester we are busy planning our upcoming Forum For CIOs And CMOs.  With a theme of “Building A Customer-Obsessed Enterprise” the event explores the partnership between marketing and technology leaders. But what about our government clients?  The role of marketing is associated with the private sector. Companies employ marketers to identify their target markets and the opportunities for providing goods and services to them. Public-sector organizations don't typically have the luxury of  choosing their target market or their products and services. Or at least that’s what most organizations think. But even if that is the case, it doesn't mean that these organizations shouldn't get to know their "customers" and understand how best to meet their needs. While the service might be prescribed by legislation or regulation, public organizations can influence the customer experience, and the rising focus on citizen engagement mandates they do so.

Read more

Five Insights From Digital Business Leaders In Asia Pacific

Dane Anderson

I had the good fortune of moderating a panel on the state of digital business at the Chief Digital Officer Global Forum in Singapore yesterday morning. The event showcased a who’s who of digital business leadership in the region, including my panelists Veena Ramesh of Johnson & Johnson, Jerry Blanton of Citi, and Veronique Meffert of Great Eastern Life.

The event paralleled many of the themes my colleague Clement Teo highlighted in his recent report on the State of Digital Business in Asia Pacific. Five key themes that I believe provide important insights on the pulse of digital business regionally:

  • Organizational issues are the greatest hurdle. There was not a single dissenting voice on the fact that organizational challenges represent the biggest impediment to digital business progress. The greatest organizational challenges are functional silos, business unit resistance, a lack of clear guidance from the CEO, rigid backward-looking mindsets, and a shortage of the skills needed to drive change. One approach — shared by Rahul Welde of Unilever — is to drive “digital experimentation funds” and “foundries” to drive co-creation innovation.
  • Media command centers are becoming critical marketing assets. Both representatives from Unilever and Philips spoke of the critical role that media command centers now play in their marketing campaigns. In the case of Philips, I was surprised to learn that its social media command center in Singapore employs 200 people — and that it is planning for expansion!
Read more

Look Beyond Traditional Service Providers For Your Digital Transformation Journey

Fred Giron

In a recent report on next-generation services, I give several examples of how tech services firms are reinventing their operating models and value propositions to provide a new path to digital transformation to their clients. Interestingly, many such initiatives are coming either from very large service providers like Accenture or from small specialists like VMob, Bluefin Solutions, or Point of Origin. Small service providers’ next-gen service value proposition is starting to catch the interest of large clients too. A few weeks ago, VMob announced a major deal with McDonald’s in Japan wherein the company will leverage the VMob solution for its 3,200 restaurants in Japan.

The next-generation services report highlights the key tenets of these new digital transformation offerings. In this customer-controlled, digital world, successful tech services companies will bridge the gap between technology and business outcomes for their clients. In other words, it is not just about implementing a new technology solution anymore. It is about helping clients harvest the power of digital technologies and achieve specific business outcomes like growing revenues, reducing operating costs, or mitigating risks. This is where next-generation service providers like VMob, Bluefin, and Point of Origin get it. As leaders in the new services world, their approach is fundamentally different from the traditional tech service providers, as they:

Read more

Agility Must Be At The Core Of Your Customer Experience Ecosystem

TJ Keitt

This past June, my colleague Rick Parrish alerted customer experience (CX) professionals to a dire problem: Their networks of customers, partners and employees that affect customer experiences are fundamentally broken. Rick’s diagnosis reveals numerous organizational, cultural, and and partnership issues across businesses’ sprawling CX ecosystems. I admit it — this description makes the challenge of fixing these problems sound daunting. So where do you start?

The problems Rick identified in CX ecosystems seem to be the result of ossified organizations, cultures, and business relationships. This means CX leaders must drive new levels of responsiveness and creativity into their ecosystems. And the way you drive these attributes into your ecosystems is to seize on the concept of business agility. My colleague Craig Le Clair outlined 10 dimensions of business agility that provide the market, organizational, and process frameworks necessary to embrace market and operational changes as a matter of routine. This is merely setting the strategy, though; executing it requires a marriage between the business and technology strategies.

Read more

Digitize Your Business Today Or Prepare To Become Obsolete

Clement Teo

In a previous blog entry, I argued that everyone needs to digitize their business, but not every business knows what to do. Transforming into a digital businesses, especially if you’re a traditional enterprise, is hard work. However, we believe that Asia Pacific is already primed for digital disruption.

In my report, The State Of Digital Business In Asia Pacific In 2014, we found that, while the highest-profile digital business pioneers are headquartered in North America, market demand in Asia Pacific is more conducive to long-term digital disruption. Asia Pacific has five times as many Internet users and smartphone subscribers as the US and almost as much online retail spending as the US and Europe combined. You just need to look at regional powerhouses like Alibaba.com and Commonwealth Bank of Australia and their multibillion-dollar businesses to grasp the rewards of digital business success in Asia Pacific.

However, knowing what these firms have accomplished is insufficient; knowing how to get there is more critical. You should:

Read more

Creating A Software Engineering Group Becomes Key To Closing The Experience Gaps

John McCarthy

In our recent report Closing The Experience Gaps, Ted Schadler and I talked about two key elements to meeting customers’ rising expectations: creating an architecture for cross-channel experience delivery and developing a philosophy and culture of business agility. Given it builds on many of the concepts that we outlined in the Software Must Enhance Your Brand, I wanted to highlight the key aspects of the second element: developing a philosophy and culture of business agility.

Closing the experience gaps — performance, convenience, personalization, and trust — requires a different mindset. The shift in customer expectations, fueled by an increasing rate of technology change, means that firms need to act more like a cloud-based ISV, not a traditional IT shop. This requires an agile process and continuous development from small teams spanning business, design, and technology competencies. Part of this makeover includes improving technical and design competencies. Companies like GE and Wal-Mart have dramatically upskilled their technology teams.

At the core of this new mindset are five cultural, process, and skill imperatives:

  • Align business and technology executives. Successful customer experience transformation efforts at Delta Air Lines and The Home Depot have at their core an accommodation between the CEO, business executives, and the CIO.
  • Embrace an agile, sense-and-respond continuous delivery process. Great customer experiences today are table stakes tomorrow. To continuously improve experiences, companies must work differently, in small agile teams that span business, design, and technology — what we call IDEA teams.
Read more

Digital Disruption And The Electronic Medical Record

Skip Snow

For those of us who write and think about the future of healthcare, the story of rapid and systemic change rocking the healthcare system is a recurrent theme. We usually point to the regulatory environment as the source of change. Laws like the Affordable Care Act and the HITECH Act are such glaring disruptive forces, but what empowers these regulations to succeed? Perhaps the deepest cause of change affecting healthcare, and the most disruptive force, is the digitalization of our clinical records. As we continue to switch to electronic charts, this force of  the vast data being collected becomes increasingly obvious. One-fifth of the world’s data is purported to be administrative and clinical medical records. Recording medical observations, lab results, diagnoses, and the orders that care professionals make in binary form is a game-changer.

Workflows are dramatically altered because caregivers spend so much of their time using the system to record clinical facts and must balance these record-keeping responsibilities with the more traditional bedside skills. They have access to more facts more easily than before, which allows them to make better judgments. The increasing ability of caregivers to see what their colleagues are doing, or have done, across institutional boundaries is allowing for better coordination of care. The use of clinical data for research into what works and what is efficient is becoming pervasive. This research is conducted by combining records from several institutions and having the quality committees of individual institutions look at the history of care within their institutions to enhance the ways in which they create the institutional standards of care. The data represents a vast resource of evidence that allows great innovation.

Read more