External data (Open And Other) Transforms Business – And Is Good Business

Jennifer Belissent, Ph.D.

Last month, GovLabs, a research organization at New York University released a beta version of its Open Data 500 project.  The study set out to profile US companies that use open data to generate new business and develop new products and services.  Not all of the companies identified have been profiled but the list of 500 provides a wide range of both existing companies and start-ups that benefit from the use of open data. 

While the start-ups are interesting illustrations of innovation and economic value-creation, the presence of big, existing companies illustrates how data transforms business. 

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India's Tech Market Will Grow 8% In 2014

Manish Bahl

Forrester just published its “India Tech Market Outlook: 2014” report; here’s a summary. We expect the Indian economy to start recovering from the tough situation it faced in 2013. It will start picking up (albeit at a slower rate) in 2014 thanks to good monsoons, an uptick in exports due to the weakening of the rupee, and huge infrastructure projects in public transportation, housing, agriculture, and farming  that we expect to take off once a new central government is in place. As a result, we’ve marginally increased our 2014 forecast from 7.4% to 8% in local currency. But the biggest threat to India’s economic outlook is political instability after the national elections, which could have a long-term economic impact.

The three most important highlights from the report:

  • Customer obsession will take center stage for technology spending. The increasing demands of digital customers are redefining business. Recent Forrsights data indicates that Indian CIOs’ top business priority is to address the rising expectations of customers and improve customer satisfaction; 87% consider it a high or critical priority. Business leaders want to leverage technology to better engage digitally enabled constituents, fundamentally shifting how firms interact with customers.
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Compelling Content Experiences Prove To Be Google And Microsoft's Rich Opportunity In 2014

TJ Keitt

In November 2013, we published a report laying out what will be the key points of differentiation between Google Apps and Microsoft Office 365 by 2016. At the core of this report is a simple message: The value of these cloud collaboration suites isn't inexpensive email; their value is in their role as an interaction point for your business ecosystem. And at the center of each of these interactions is content of some sort -- contracts, marketing collateral, product specifications, customer records, and more. As more of this content lands in Google Drive and SkyDrive Pro, the market will reward the vendor that makes it easiest for information workers to author content, share it with others, manage its use and distribution, and be aware of any changes to this content. We call this combination of capabilities content services.

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A Better Global Tech Market In 2014, With The US Pulling the Freight

Andrew Bartels

Forrester has just published our forecast for the 2014-2015 global tech market (January 2, 2014, “A Better But Still Subpar Global Tech Market In 2014 And 2015”), and we are predicting that business and government purchases of information technologies (IT) will grow by 6.2% in US dollars in 2014, and by 5.5% in exchange-rate-adjusted or local currency terms. (Note that this data includes purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing services, but does not include purchases of telecommunications services.) The US dollar growth rate will be distinctly better than the 1.6% growth in US dollars in 2013, though constant currency growth will be only somewhat better than the 4.3% growth in 2013. Still, the global tech market won’t see strong growth until 2015, and even then the 8.1% US dollar and 6.9% local currency growth rates will be well below the double-digit growth rates of the late 1990s and 2000 era.

Three interconnected and reinforcing themes will define the global tech market this year:

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Wearable Technology Is Breaking The Retail Distribution Model

Tim Sheedy

Smart technology is becoming mainstream very quickly. Not a day goes by without hearing about some new piece of smart technology that can help you get fitter or smarter or improve your life in some other way. In the past week alone, I’ve heard about devices that can improve your tennis swing, improve your posture, sense your presence, and generate energy from walking — not to mention the new smart watches, handheld 3D printers that can draw bones, smart breathalyzers, and, of course (!) smart wigs!

These devices are starting to find their way into the hands of consumers, but much of the retail channel has yet to catch up. Smart locks, smart wearables, and smart fitness devices are all generally being sold through the traditional online and offline channels for electronics and devices; sports stores, clothing retailers, and home hardware stores have been slow on the uptake. In the US, we have already seen some electronics retailers (such as Best Buy) significantly expand their “smart wearables” section from a small pod to an entire aisle or even a dedicated corner or section of the store. At the same time, many sports stores have not even started carrying the latest fitness tracking devices — something that should be in their sweet spot.

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Big Pharma Big Data Trends

Skip Snow

While I don't cover big pharma on its own, I am keenly interested in it and follow it with some passion, having in my career worked for several pharma firms as a consultant.

I have spoken to several pharma folks about data since arriving at Forrester. Some of what I learned was surprising. Some of what I learned reinforced my views coming to this job.

Important leaders are saying that good data management gives companies a key and differentiated competitive advantage. We are hearing this in almost all of our conversations with pharma leaders. It is 100% top-of-mind for big pharma CIOs. http://searchcio.techtarget.com/video/JJ-Pharma-CIO-Healthcare-data-management-will-revolutionize-her-business

But what are the trends, and what are the best practices?

We are hearing from all the pharma stakeholders four stories that are driving the questions that are being asked of the data:

  1. Pharma needs to get away from its focus on molecules and pivot to a holistic view of disease. As per a senior IT manager at a major pharma in a meeting with me last week: "We have to deliver whole solutions, and not just pills." 
  2. Pharma needs to understand prescribing behavior in the formulary and in the physician's office better in order to influence it and thus drive sales. As per a senior marketing manager from a meeting recently: "In the old world, we just sprayed and prayed," meaning that the marketing campaigns aimed at the physician did not discriminate as to who that physician was.
  3. Genomic-based drugs are driving changes though the amounts and types of data that the industry must manage.
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With China Mobile, Apple Finally Cuts To The Core Of The World’s Biggest Phone Market

Frank Gillett

The deal between Apple and China Mobile has been a long time coming, with lots of folks disappointed it didn’t happen in September when the latest iPhones were announced. China Mobile is the world’s largest mobile phone operator, with 760 million subscribers. That’s more than 1 in 7 of all people alive, and, as my friend Charlie has reminded me, more than 6 times the number of the largest US carrier, Verizon Wireless, or 3 times the size of AT&T and Verizon combined. 

Though Bryan Wang in our Beijing office points out that Apple’s iPhone offerings are very expensive by China standards, starting at about $740 unsubsidized, he also reports that there is lots of interest among China Mobile subscribers. With this deal, we’ll finally find out how far Apple can get in China without offering products that match the prices of market leaders Samsung, Lenovo, and Huawei, or innovator Xiaomi. Based on Forrester survey data, we estimate that Apple sold over 16.8 million iPhones in mainland China in the four quarters ending September, 2013. We estimate that Apple will be able to sell 17 million new iPhones to China Mobile users in the first 12 months – that’s on the low side of public estimates we’ve seen ranging from 15 to 30 million. So Apple will boost global iPhone sales – and iPhone revenues – by over 10%.

After waiting so long, why is China Mobile interested in the iPhone? Because they’re concerned about losing their best customers, which are some of China's most valuable ones, to China Telecom and China Unicom. And China Mobile is just launching the first 4G network in China, and Forrester believes it will have at least a 6 month head start before other operators begin adding 4G. The iPhone 5s and 5c give China Mobile showcase products to show off the power of their 4G network.

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On Pubs, Innovation & Office Space

Nigel Fenwick
Holiday season musings: One of the biggest differences between the US and Britain is the great British pub. And recently I’ve been wondering about the connection between the pub and innovation.
 
It seems to me that Britain produces a surprising amount of innovation per capita (no doubt someone can point me to some research on this). Why do so many great innovations come from this small island? 
 
Could it be that the great British pub has something to do with it? It’s clear that a great many innovations are nurtured and developed through the interactions between people. And the pub has always been place for social interaction. For me, one of the facets that distinguishes a great UK pub from an American bar is that it’s relatively easy to sit next to a complete stranger in a pub and strike up a deeply philosophical conversation about something of great import; in a bar, it’s almost impossible to strike up a conversation with anyone you don’t already know unless it’s related to the local sports team. 
 
Assuming my premise is correct that there is some causative effect between the traditional local pub and innovation, what will happen to innovation in Britain with the demise of the local pub. Will we see a reduction in great innovation from the UK?
 
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5 Steps to transform IT from Order-taker To Business Partner: Part 2

Nigel Fenwick

Way back in September, I promised a series of blogs addressing this subject. I had high hopes of delivering a post a week for five weeks on the topic. Needless to say . . . life interjected!

So here, a little later than planned, is the second post in the series.

Step 1 - Change where you work 

If I had a thousand bucks for each time I’ve heard someone in technology management say “IT and the business,” I’d have retired long ago. And it’s not just something we hear in technology circles either. The plain truth is technology professionals have been using isolationist language for decades. I say isolationist because any time we refer to "IT and the business” as if they were two different entities, we are creating an artificial divide. As a department of the business, IT is very much part of “the business.”
 
When technology leaders create this divide between the technology group and the rest of the business, it separates their actions from the purpose of the business. Technology professionals start to see themselves as some sort of technology service provider to the business. But the truth is that the technology team should be integral to delivering value to the customer. If “the business” wanted a technology service provider, the leadership team would outsource IT. Unfortunately, one consequence of managing IT like a vendor is that it becomes much easier for the leadership team to make that outsourcing decision.
 
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Three Proactive Assistance Startups Worth Watching

Michael Yamnitsky

I’ve been experimenting for the past year or so with several proactive assistant apps to guide my day — they remind me to get on conference calls with clients, offer to text participants if I'm running late to an in-person lunch, and keep me in touch with friends and colleagues. Some of these apps also integrate Salesforce, Yammer, and BaseCamp for job-specific context and assistance.

Among the most popular apps, Google Now personalizes recommendations and assistance by applying predictive analytics to data stored in email, contacts, calendar, social, docs, and other types of online services users opt in. Other examples include Tipbit applying predictive analytics to make a more intelligent inbox, and EasilyDo using the notification system to recommend ways to automate common everyday tasks. Expect Labs is tackling this space from the other end of the spectrum, offering an intelligent assistance engine for enterprises to plug into and add proactive features to their own apps. 

Here’s what we think:

•    Vendors will experience burnouts and early customer frustration, much like in voice recognition. In the music industry, it’s said that an artist is only as good as her last hit. We saw that analogy apply to voice recognition when users got frustrated at Siri as soon as she failed once on them. Expect a similar dynamic with all types of predictive apps.

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