Meet The Mobile Mind Shift In Forrester's Podcast Series

Ted Schadler
A mobile moment occurs whenever someone reaches for their smartphone or tablet. And happens anytime they have an itch to scratch. And it's happening more frequently than ever as your customers and your employees are undergoing a mobile mind shift -- "the expectation that I can immediately get what I want in my personal context on my mobile device."
 
If it's your customer that's having a mobile moment, then you want to be there, don't you?
 
At Forrester, we've been spending a lot of time analyzing how mobile devices change the way companies engage their customers and employees. Across every role we serve, we're probing on what makes mobile different from PCs, different from Web, and different from traditional channels. My colleague Julie Ask and I spent some time recently with Tom Pohlmann, Forrester's Chief Marketing & Strategy Officer, to talk the mobile mind shift and what to do about it. You can hear that conversation in its entirety (episode 1) or in topic-sized chunks (episodes 2, 3, and 4) below.
 
 
Episode 1
Title: Embrace The Mobile Mind Shift
Description:  When it comes to mobile, most companies are simply doing “old things in new ways.” Mobile’s great promise is provide new value where organizations will internalize mobile to do “new things in new ways.” 
 
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Introducing a New Program for CIOs at the World's Largest Firms

Sharyn Leaver

As the Practice Leader for the CIO role at Forrester, I have talked at length with many of our CIO clients about how they’d like to engage with Forrester - particularly when it comes to our Forrester Leadership Board community. Our current CIO Group is a robust community and I wanted to learn more.

A pattern quickly emerged - our CIO clients with 250+ FTEs want to interact with Forrester differently: their needs are focused on developing their team, and they want different deliverables than our core CIO Group.

Therefore, we designed a new program for these CIOs with more than 250 FTEs: The CIO Executive Program.

Offered exclusively to CIOs at the biggest global companies of $5b+, The CIO Executive Program addresses the unique challenges and opportunities faced by technology leaders at the world’s largest firms: a need to support and develop the leaders on their team, no time to read research or talk to analysts themselves, a desire to bounce ideas off of and be challenged by true peers, and a need to benchmark their IT organization against others.  

If you are interested in learning more about this program, to find out if you qualify, or would like to recommend someone for this exclusive program, please email us at flb@forrester.com.

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Nokia Solutions and Services after Nokia

Dan Bieler

As many market observers had expected for sometime, Nokia closed the chapter on what can only be described as a dramatic climb-down for what once was the world’s leading mobile player. Nokia agreed to sell its Devices & Services business to Microsoft for 5.4 billion euros. What does this mean for Nokia Solutions and Services (NSN), formerly Nokia Siemens Networks? I have several observations:

  • I expect that more change for both Nokia and NSN lies ahead. Nobody can accuse Nokia of shying away from fundamental transformations: from pulp producer, to electronic component supplier, to mobile phone company, to now what resembles a holding company looking after a network infrastructure business (NSN), a cloud-based mapping service (HERE), and a patents and a licensing operation (Advanced Technologies). I see no synergies between these operations. Hence, a breakup of Nokia followed by an initial public offering of NSN could be one possibility. At the Mobile World Congress 2013, NSN presented itself in a manner what - to me - looked like dressing up for an IPO: a lean and mean provider of mobile broadband network solutions.
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The Battle To Serve Your Digital Self

Frank Gillett

Forrester’s surveys show that individuals all over the world are using personal cloud technologies to store their personal and work stuff — files, contacts, photos, music, and videos — in online services. In the US, 77% of online adults use one or more of these services, while in Europe 61% do so. As a result, there’s now a new Internet gold rush to help you build your “digital self” — to help you access, manage, and benefit from your digital information using any smartphone, tablet, PC, or web browser.

Once your digital self is stored in online services, it becomes possible for providers to serve you with not only automated storage but also advice. These providers do things like automatically uploading your digital photos, synchronizing your contacts everywhere, and automatically assembling your expense report from photos, scans, or emails of receipts. Or even advising you on the right financial strategy or workout times based on your spending logs and work calendar.

The companies offering these services are a mix of leading startups, big tech companies, and new players.

For example, Phil Libin created Evernote to help you remember everything easily after he grew frustrated at fiddling with files to organize information from work and home. Now Evernote has 45 million accounts and a new deal to serve Telefonica’s wireless customers worldwide. When you enter new notes, Evernote suggests related notes from your notebooks and those of coworkers you’re linked to.

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Microsoft Buys Nokia Devices As A Major Building Block Of Its Devices+Services Strategy

Ted Schadler

Microsoft acquired Nokia's devices business for $7.2 billion (which is only 27% of Microsoft's 2013 earnings and just 9% of its cash and short-term investments). Microsoft bought the devices and some of the services along with the services of former Microsoft Office leader Stephen Elop, who will run Microsoft's Devices business. By all accounts, Stephen was a much-admired Microsoft executive when he left to run Nokia in 2010.

I'll leave telecom industry analysis of the deal in the worthy hands of my colleagues Thomas Husson and Charles Golvin. I'll leave journalistic speculation to the media. I'll leave personality analysis to the pop psychologists. But as a software+devices+services industry analyst, I'll share my analysis of how this acquisition changes Microsoft's position in the mobile mind shift.

  • First, this acquisition is a clear stepping stone in Microsoft's transition from a software company to a software-led multiproduct company. Apple pioneered the model of vertical integration in devices: device+software+services. Google quickly mastered it. Microsoft has now proven that it is willing and able to make the tough decisions to make a vertically integrated product a cornerstone of its business model.
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It's Harvest Time For Vodafone In The US

Dan Bieler

Alas: It has finally happened. Vodafone has sold its 45% stake in Verizon Wireless to Verizon for $130 billion in a part cash ($58.9 billion) and part equity deal. The deal values the 45% stake at 9.4 times EBITDA. Markets had been speculating about this deal for years, so why has it taken place now? Arguably, the decision was made easier by Verizon’s share price, which is at a decade high, as well the the potential for rising interest rates. From Vodafone’s perspective, our main observations are that:

  • The deal is strategic for Vodafone and financial for Verizon. While the deal is a strategic transaction for Vodafone – it has decided to exit the US market – it is a financial transaction for Verizon: It already controlled Verizon Wireless through its 55% stake in the business. But after Vodafone’s exit, Verizon can keep the cash and no longer needs to pay out a dividend to Vodafone. It can instead use this retained dividend cash flow for capital expenditures and other investments to help boost its position in an increasingly competitive US wireless market (e.g., Softbank + Sprint; T-Mobile + MetroPCS).
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Welcome to the Connected World

Chris Mines

The world is becoming more and more connected, whether we look at consumer products like thermostats, commercial assets like a fleet of trucks, or infrastructure systems as extensive as electricity grids or cities. By understanding the broad landscape of the connected world, business and technology leaders can ready their firm for the implications — positive and negative — of asset control, business model change, and deeper data-driven customer engagement.

In Forrester’s upcoming report, “Mapping The Connected World,” we map the broad landscape of the emerging connected world, assessing the attractiveness and readiness of different industries and use cases. This report draws from and synthesizes related research around smart products, the connected car, and smart cities, while setting the stage for upcoming reports like the connected home and embedded systems. Our focus is on analyzing the business impacts of increasing connectivity between physical devices and infrastructures, and digital computing and analytic systems.

The Connected World

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Steve Ballmer Steps Down: My Take On The Forces In Play

Ted Schadler

I don't know Steve Ballmer. I've only met him once. (I've met with Bill Gates more often than that.) But let's face it, he had tremendous impact as a leader. And it's now a good time for him to step aside.

When Steve took over from Bill as CEO of Microsoft in 2000, the company's revenues were $21B and the business was led by desktop software. Under Steve's guidance, Microsoft made massive inroads into enterprise server software and tools while investing but not really winning in consumer services and certainly not in mobile devices. And in recent years, Steve listened to lieutenants like Ray Ozzie and Bob Muglia to turn the Redmond juggernaut towards cloud computing, mobile devices, and software+services.

At the same time, the world has moved faster than Microsoft's licensed software business model could respond. Apple, Google, and Amazon have become enterprise suppliers. Salesforce.com and Amazon are accelerating the shift to cloud computing. Dropbox has grown from zero to 175 million users in five years. So even as Microsoft's revenue more than tripled to $73B in 2012, things didn't feel good.

I think it's a good decision for Steve to step down and pass control to someone else, probably an outsider. Microsoft will then face its IBM or GE moment: Keep the company together or break it apart? Lou Gerstner kept IBM together and that decision had paid off handsomely. Then again, IBM relentlessly focused on a single enterprise market, shedding its PC and other low-margin businesses.

So what's next for Microsoft? I see three forces colliding to drive that decision:

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Q&A with Paul Cobban, Managing Director, COO, Technology and Operations, DBS Bank

Dane Anderson

In advance of Forrester's Summit for CIOs in Singapore on August 30, I had an opportunity to speak with Paul Cobban about his successful transformations at DBS Bank over the past few years. Based in Singapore, Paul oversees business transformation, operational excellence, customer experience, IT project office, procurement, real eastate, operational risk and business continuity management.  I've had a sneak peak at his event presentation and it is excellent.  Paul is a progressive CIO at the forefront of BT innovation and business engagement with a lot of valuable insight to share. 

1. What do you think IT departments are doing right and wrong these days?

In banking the IT departments have had to change enormously in recent years.  On top of the usual relentless advances in technology, security challenges have escalated, the war for talent has accelerated and regulation continues to evolve with the challenges. I believe that IT departments have had to adapt well to these changes. 

However, in most companies there is a lack of a truly customer centric design. Although there is some hype in the industry around service-oriented architecture (SOA), I believe that until budgets are allocated around customer processes rather than by functional units, systems will continue to be designed as applications for the department users rather than with the customer in mind. In addition, most companies fail to take usability seriously and have little concept of cross touchpoint consistency.

2. How do you measure ROI for IT? 

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Mobile Engagement Providers Are A New $32.4 Billion Market By 2018

Ted Schadler
My colleague and friend John McCarthy and I have just published a new report on the emergence of a new category of vendors we call “mobile engagement providers” that help firms build excellent mobile experiences. I’ll unpack the report in a series of posts over the next few weeks. You can also read a lengthy post in the Wall Street Journal highlighting the report and Forrester clients can read the full report.
 
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Building and delivering great mobile experiences will be the beating heart of your customer engagement strategy for the next 10 years. The challenge of making a simple, intuitive app that fronts a complex system of engagement will stretch the abilities and swamp the resources of most firms. For help, firms increasingly turn to vendors that possess a connected portfolio of engagement competencies and management skills. 
 
The result will be a new market for mobile engagement providers that will grow to $32.4 billion by 2018 (see the Figure 1). No vendor can do all of this today, but suppliers from six categories — digital agencies, management consultancies, mobile specialists, product development specialists, systems integrators, and telcos — are chasing the prize. The payoff for vendors that make this investment will be to earn a seat at your table as a long-term partner in your engagement success.
 
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