If You're Not Helping Lay The Foundation For A Social Business, You Need To Start Now

TJ Keitt

The movement of information is key to today's global economy. Companies like General Electric send their design concepts to countries like India, allowing developers there to localize products to suit the domestic market. Firms like Intercontinental Hotel Group create customer communities to gather input from customers to fashion new services. Businesses like handheld device manufacturer Psion (recently acquired by Motorola) build social platforms to connect their partners to their customers in order to formulate new solutions. And prospective customers tap into social media like Facebook and Twitter to gather information and express ideas, which we see has the power to alter the course of companies as well as countries. In this environment, a successful company's competitive advantage comes in part from its ability to grow an information advantage -- the ability to share, process, and act upon information more rapidly than the competition.

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Changing end user behaviour undermines traditional carrier business model and forces radical change

Dan Bieler

 

Carriers have lost a great deal of their relevance for end users. People of all shades, individuals, employees, information workers, etc, are looking for solutions that meet their demand, not connectivity per se.

In our view, four trends matter significantly for carriers since they strike at the heart of their customer facing relationships in the shape of changing end-user behaviour:

  • Applications have become the focal point for end-users. Phone or connectivity features are less interesting. The carrier brand is not seen as the destination to turn to for app-demand. Merely 18% of business users would turn to a carrier for apps compared to 49% who go directly to the classic app stores. Carriers ought to get closely involved in HTML5 development as it paves the way for OS-independent Web-based apps, thus potentially limiting the influence of operating systems like iOS or Android over the ecosystem. Carries must strive to accommodate where possible app developers to remain somewhat influential ecosystems players.
  • Users buy devices directly. There is an increasing push by device manufactures (traditional like Samsung and Apple and emerging such as Google, Amazon etc) to sell devices directly to the customer, both business and consumer, and outside the carrier channel. This robs carriers of their main service distribution channel and undermines their potential to monetise value added services.
  • Carrier-selection is becoming more ad-hoc and temporary. The emergence of embedded software SIMs “interrupts” the relationship between user and carrier. End-users will increasingly be able to select carriers after they purchase a device and for certain circumstances like content consumption or for international roaming. As a result price wars for basic connectivity will increase once again.
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Why IBM Bought Kenexa: To Reach A New Business Technology Buyer

Ted Schadler

Here's the Tweet-length version of the analysis:

"3 bullet analysis of Kenexa: 1) IBM needs to sell to biz tech buyers. 2) IBM bought an HR app suite - good. 3) Is salesforce.com next?"

Okay, so let's tease that apart a little bit.

  1. I think IBM buying Kenexa, with 2011 revenues of $291M in non-GAAP revenue, and 8,900 customers, is a good thing. A quick look at the 2011 10-K reveals that of the $291M in non-GAAP revenue, $212M or 73% of it is subscription revenue related to its human capital management software and outsourcing services. And it sells that software to an HR executive, a customer that IBM does not currently have.
  2. The HR business executive is increasingly responsible for the technology to improve workforce productivity in addition to hiring, training, and compensation management. Systems of engagement that "empower people to take action in their moments of need" are the future of software-based productivity improvements. We've automated the heck out of transaction and highly regular processes. Now we need to automate the ad hoc processes that limit human, hence business, productivity.
  3. IBM has its eyes firmly fixed on improving workforce productivity through systems of engagement, including social business software. And that's where IBM's Social Business goals intersect with Kenexa's business model: Sell software and services to a business executive, then help that executive improve workforce productivity through the smart application of analytics, social connections, search, information capture, activity alerts, and real-time communications - the software anchors of social business.
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Do Banks Really Need To "Own" Mobile Banking?

Australian Banks have often been at the forefront of global banking trends, or at the very least, fast followers that learn quickly from the mistakes of others. In Australia, mobile banking has quickly become a "war" amongst the majors with a range of different banking services and approaches - from basic access to transactional histories, transfers, payments, integrated retail services, and even near-field-communications-based micro-payments systems.

But how much of the mobile banking channel do banks really need to own? Most banks no longer own or operate their own ATM networks. They control the flow of transactions through that channel, but they generally have little to no interest in owning the assets or operating ATM cash management processes. Mobile banking is a complex and costly business to be in. With the advent of Internet banking, it quickly became clear that the cost of delivering online banking services through the internet was rarely, if ever, a more cost-effective channel than the bank-owned and operated PC-based products (remember the dedicated dial-up modems!). But in theory it should have been. All of the cost modeling showed that it should be cheaper. Yet banks have continued to invest more and more in building out, maintaining, operating - and particularly securing - their Internet banking channels.

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Infosys Wins $126 Million Deal From India Post

Manish Bahl

 

Infosys recently won a financial services systems integration deal from the Department of Post in the Ministry of Communications and IT of India worth INR 700 crore (US$126 million). In 2010, India’s Cabinet Committee on Economic Affairs approved India Post’s “IT modernization” project, which was divided into eight separate contracts worth a total of $337 million. With this deal, Infosys has won one of these eight contracts.

According to the terms of the contract, Infosys will commission both hardware and software – Intellectual Property (Finacle Core Banking and McCamish Insurance products) over India Post’s approximately 25,000 departmental offices over a period of 24 months. The contract, which is valid for seven years, includes managed services, application support, and infrastructure operations. More details about the deal can be found here.

Let’s look at what this deal means to Infosys and to India Post:

Infosys Gets More Business — But Also Some Risk

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Orange Business Services Underlines Its Global Capabilities At Its 2012 Analyst Event

Dan Bieler

Dan Bieler, Bryan Wang, Pascal Matzke, Jennifer Belissent

ORANGE held its annual analyst day in Paris recently. There were no major announcements, but we made several observations:

  • ORANGE is one of the few carriers with true delivery capabilities. Its global footprint is a real advantage vis-a-vis carrier competitors, in particular in Africa and Asia. Vale, the Brazilian metals and mining corporation, presented a customer case study in which Vale emphasized the importance of ORANGE’s global network infrastructure for its decision to go with ORANGE as UCC and network provider. Its global reach positions ORANGE well to address the opportunity in emerging markets, both for Western MNCs going into emerging markets and also to address intra-regional business in Africa and Asia. Another customer case study with the Chinese online retailer 360buy, focusing on a contact center solution, demonstrated ORANGE’s ability to win against local competitors in Asia.
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Asia Pacific CIOs Learn Similar Lessons on the Path to Business Technology

Dane Anderson

 

Forrester’s Asia Pacific team is working at a fast and furious pace preparing for our CIO Summits in Singapore, Sydney and New Delhi throughout September.  As the content champion for the event, I have been working with about a dozen regional CIO speakers to prepare presentations on their journeys from IT to Business Technology, which is the focus of our summits.

Our distinguished line-up of CIO speakers provides an insightful cross-section of the countries, cultures and industries they span.  As they all embark on their respective BT journeys, it has become clear that they must each chart their own course and sequence activities in a way that makes sense for their unique circumstances.  Nevertheless, across these varied landscapes I have identified three key themes that are critical to the BT journeys regional CIOs will be forced to make:

  • Taking Care of the Basics: Although innovation and the power of BT are alluring, the BT journey starts with some basic plumbing.  All of our CIO speakers have emphasized that their BT journeys wouldn’t have taken the first step without first ensuring they were doing the basic things well.  They cannot convince the CEO that they deserve a seat at the table of business strategy without showing they know how to handle the basics first. In our Singapore Summit, Krishnan Narayanan, Managing Director and Head of IT at UBS will share his experience and provide recommendations for setting a solid foundation to enable the BT transition.
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Open Data Isn’t Just For Mega Cities: The City Of Palo Alto Proves That

Jennifer Belissent, Ph.D.

Many of the marque open data programs are in the big cities. Think New York City and its NY Big Apps Contests, or Chicago or London or Barcelona or Rio de Janeiro. But smaller cities are also sitting on public data. They receive requests for information from their constituents, and their constituents expect new applications and services. Not to mention the fact that cities of all sizes are responding to pressure for greater openness and transparency. These are a few of the reasons why the City of Palo Alto recently launched its open data community site. According to Jonathan Reichtenthal, the CIO of Palo Alto, “It is more common that information is public than not.” And, therefore, why not make it easier for citizens to access? 

Palo Alto – with a population of about 65,000, located between San Francisco and San Jose, California, and known as the home of Stanford University and the “birthplace of the Silicon Valley” – was a prosperous, tech-savvy city. But from an IT perspective, the city administration had been working in the past… until about eight months ago when a new CIO came on board. Jonathan Reichtenthal is the “first cabinet-level CIO” of Palo Alto. IT had historically been an administrative division housed with legal, HR, and finance. When the previous head of IT retired, the city manager decided to elevate the status of IT and drive more strategic use of technology within the organization. One of the first initiatives launched by Reichtenthal was open data. 

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Online Collaboration Tools Address A New Set Of Business Challenges, But Are They Ready For Your Business?

TJ Keitt

Today, we published our first Forrester Wave™ on the cloud strategies of online collaboration software vendors, evaluating how eight vendors -- Box, Cisco Systems, Citrix Online, Google, IBM, Microsoft, salesforce.com, and Yammer -- are constructing collaboration services. Unlike a traditional Forrester Wave, this assessment was designed to look at how these vendors are addressing the lingering questions many IT leaders have about online collaboration technology:

  • Is it ready for the prime-time enterprise spotlight?
  • Will it keep me secure and compliant?
  • Does it fit into my business environment?
  • Is the vendor in the online business for the long haul?
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Big Data Meets Cloud

Holger Kisker

Cloud Services Offer New Opportunities For Big Data Solutions

What’s better than writing about one hot topic? Well, writing about two hot topics in one blog post — and here you go:

The State Of BI In The Cloud

Over the past few years, BI business intelligence (BI) was the overlooked stepchild of cloud solutions and market adoption. Sure, some BI software-as-a-service (SaaS) vendors have been pretty successful in this space, but it was success in a niche compared with the four main SaaS applications: customer relationship management (CRM), collaboration, human capital management (HCM), and eProcurement. While those four applications each reached cloud adoption of 25% and more in North America and Western Europe, BI was leading the field of second-tier SaaS solutions used by 17% of all companies in our Forrester Software Survey, Q4 2011. Considering that the main challenges of cloud computing are data security and integration efforts (yes, the story of simply swiping your credit card to get a full operational cloud solution in place is a fairy tale), 17% cloud adoption is actually not bad at all; BI is all about data integration, data analysis, and security. With BI there is of course the flexibility to choose which data a company considers to run in a cloud deployment and what data sources to integrate — a choice that is very limited when implementing, e.g., a CRM or eProcurement cloud solution.

“38% of all companies are planning a BI SaaS project before the end of 2013.”

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