Cisco Takes Next Step To Becoming A Partner For The CIO's BT Agenda

Dan Bieler

Cisco's declared intention to further invest in key priority areas in its portfolio, such as security, IoT, collaboration, next generation data center and cloud, did not come as a great surprise to Forrester.

Last year, we evaluated Cisco’s efforts to transform itself  from a network business to a global provider of business technology (BT) -- the technology, systems, and processes to win, serve, and retain customers -- and a strategic partner to CIOs and CTOs. Cisco launched several programs to change its operational set-up, its business culture, its compensation incentives, and also its skillsets.  

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Bosch Software Innovation Offers Lessons For Digital Transformation

Dan Bieler

Traditional manufacturing businesses must rework the structure and culture of their organization to address rapidly changing client expectations. Bosch is a fascinating example of how a traditional manufacturing firm can successfully transition into a leading digital business. Our discussions with Bosch highlight that:

  • The shift from selling products to outcomes-as-a-service requires business model change. In order to sell business outcomes, Bosch combines business process expertise with technical know-how and an outside-in approach.
  • Digital transformation depends on successful cultural transformation. Bosch’s digital transformation is based on a fundamental cultural transformation that takes every Bosch employee and customer along.
  • Bosch’s software engineering division acts as a catalyst for digital transformation. Bosch believes in a central coordinating role for its software engineering division as part of the digital transformation process.
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Verizon’s Acquisition Of Fleetmatics Group Boosts IoT Momentum In The Telco Space

Dan Bieler

Verizon’s acquisition of Fleetmatics Group isn’t the first deal that involves a telco pushing into new internet-of-things (IoT) territory in the vehicle management space. In 2015, Orange acquired fleet management provider Ocean to strengthen its vehicle fleet management activities.

However, at $2.4 billion, the Fleetmatics deal is much bigger than most telcos have been willing to contemplate to date, underlining Verizon's commitment to the IoT space. But this deal won’t transform Verizon’s enterprise revenue composition overnight. While it will help improve Verizon's position in terms of IoT revenues, Fleetmatics had revenues of $285 million in 2015 – compared to Verizon’s $132 billion.

The price it is prepared to pay for Fleetmatics shows that Verizon expects to see impressive long-term benefits from the deal. Forrester expects that Verizon will ultimately extend Fleetmatics’ business model beyond global fleet and mobile workforce management solutions to more general tracking and tracing solutions for nonpowered objects like skips, agricultural equipment, machinery, and other connected assets.

Verizon has its work cut out: The acquisition is the easy part. But successful integration will be much harder, as this deal is about supporting customers with their business processes rather than just selling them new products.

Look Who's Running IT Now!

Brian Baker

As CIO Executive Partners at Forrester, we meet technology leaders in almost every industry sector. One theme is clear: The typical career path, leading to CIO has changed.

No patience for CIOs to learn new tricks.
Companies are now looking to leadership from non-traditional CIO career path sources. Over the past few years, we've noticed an increase in line-of-business leaders being appointed CIO. Within the past 12 to 18 months we've also seen Digital channel / eCommerce experts, being appointed the overall CIO.

Why are Executives turning to new sources for their CIOs?
For a few decades now, tech leaders have been focused on running a stable, secure, predictable and efficient technology platform. Everyone expects you to get the "table stakes" right. That is no longer enough to keep your position in the company secure.

Back in November 2015, Forrester Analysts Nigel Fenwick and Pascal Matzke summarized the perspectives of the CIO research practice in a Predictions 2016 report: "The New Breed of CIO." In the report they claim that in 2016, CEOs will expect CIOs to grow out of being mere custodians of technology and to actively wield tech to drive revenue instead. They go on to state that, "Effective CIOs will spread outside-in thinking, agile delivery and a sense-and-respond culture to deliver digital success."

Not only is this prediction today's reality, CEOs are making quick assessments as to whether or not they have the right team to achieve results. If they perceive they don't, they are looking to new sources for their Tech Leadership.

The new CIO career path.

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Valuable services lurk behind confused marketing of 'managed cloud'

Paul Miller

(Confusing messages. Image by Wikimedia Commons user 'Melburnian')

Again and again, we hear examples of companies struggling as they try to realise the benefits of moving to cloud. They know what they want to achieve as a business, they know that cloud can help, but they cannot translate that understanding into the way they specify, procure, and run the technology.

There are plenty of organisations willing to help, offering everything from design and migration services through to management of infrastructure and applications on an ongoing basis. Even in the public cloud world, it's easy to find companies eager to take your money, and then start and stop workloads on your behalf.

But, as the blurb for my latest report states,

"Cloud computing changes the way that applications are designed, built, and run. It is often part of a broader organizational change, as enterprises move to embrace digital opportunities. Providers of managed cloud solutions need to recognize this shift: They must do more than simply run a customer’s computers. But CIOs seeking a trusted partner to assume this broader role find that too many managed cloud offerings fail to rise above basic management of infrastructure."

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Brexit Vote Means Weaker UK And European Tech Market In 2016 And 2017

Andrew Bartels

As soon as the news of the Brexit vote in the UK came out, the Forrester team began revising our UK and European tech market forecast to take into account the economic implications and uncertainties of the voters’decision that the UK should leave the EU. Based on this revised analysis, we predict the UK tech market will grow by just 1% (pounds sterling) in 2016 with zero growth in 2017, compared with our prior forecast of 5% in both years.

Europe as a whole, will post no growth in 2016 (euros), and just 1% growth in 2017  two percentage points slower than our earlier forecast. With the plummeting pound and enervated euro, European tech market measured in US dollars will be similarly weak with 0.2% growth in 2016 and 1.1% in 2017.

The slowing of UK and European tech market growth results from multiple uncertainties created by the Brexit vote coming on top of what was already a weak and shaky European economy. As a result:

  • The UK economy, which had been outperforming most of the Eurozone countries, will take a hit. The Belgian, Dutch, French, German, Italian, and Swiss economies, which are growing by 1-1/2% or less, are vulnerable to declines, with Italy especially exposed due to a looming banking crisis.
  • Greece and Portugal are struggling once again, with threats of renewed recessions leading to declines in tech spending.
  • The only countries with decent economic growth and above average tech market growth are Ireland and Spain in the Eurozone, and Sweden, Poland, and other Central European countries outside it.
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Forrester’s CX Marketing Forum 2016 In Shanghai: Fuse CX, Brand, And Marketing To Create Your Competitive Advantage

Travis Wu

Following last year’s highly successful Summit for Marketing Leaders in Shanghai, I’m excited to take on the role as the forum host for Forrester’s upcoming Customer Experience (CX) Marketing Shanghai 2016 Forum, taking place just seven weeks from now on September 1 at the JW Marriott Shanghai.

The line between CX, brand, and marketing disciplines has blurred as empowered customers now have more knowledge, more power, and more leverage than ever over companies, services, and products. This year’s Forum focuses on fusing CX, brand, and marketing, which is the first step to becoming customer-obsessed, to build the foundation for driving continuous business success in the age of the customer. We are here to help you answer these questions:

How do companies thrive in this dynamic environment?

How can I combine CX, brand, and marketing to create a core competitive advantage for my company?

How do I show the real value of CX to the rest of my organization, including senior executives?

Our CX Marketing Shanghai 2016 Forum brings together the best minds of marketing and CX from both Forrester and leading companies in different industries to discuss forward-looking trends and share best practices. Come attend this one-day forum to:

  • Understand how CX, brand, and marketing drive business growth
  • Learn best practices from CX and marketing leaders in different industries
  • Deepen your understanding of your rapidly evolving digital customers
  • Know how to boost marketing outcomes through digital technologies and advanced data analytics
  • See how design thinking and digital technologies can improve CX quality and increase your customer loyalty.
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After Brexit, it's business as usual for most of Europe's public cloud workloads

Paul Miller

The flags of the European Union and the United Kingdom

(source: Wikimedia Commons)

Two weeks on, the result of the UK referendum on membership of the European Union (EU) continues to reverberate around the world. Forrester provided advice for clients needing to understand the business implications. Looking at the specific impact on public cloud deployments in Europe introduces a number of additional points. These are best considered in three separate contexts:

  • that of companies wishing to serve customers in the UK
  • that of companies wishing to serve customers in the remaining 27 EU member states (the EU27)
  • that of companies wishing to serve customers in the EU27 from a base in the UK.
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Big Data Vendors See The Internet Of Things (IoT) Opportunity, Pivot Tech And Message To Compete

Paul Miller

Picture of a stream flowing over boulders.

(Source: http://www.publicdomainpictures.net/pictures/90000/velka/waterfall-stream-over-boulders.jpg)

Open source big data technologies like Hadoop have done much to begin the transformation of analytics. We're moving from expensive and specialist analytics teams towards an environment in which processes, workflows, and decision-making throughout an organisation can - in theory at least - become usefully data-driven. Established providers of analytics, BI and data warehouse technologies liberally sprinkle Hadoop, Spark and other cool project names throughout their products, delivering real advantages and real cost-savings, as well as grabbing some of the Hadoop glow for themselves. Startups, often closely associated with shepherding one of the newer open source projects, also compete for mindshare and custom.

And the opportunity is big. Hortonworks, for example, has described the global big data market as a $50 billion opportunity. But that pales into insignificance next to what Hortonworks (again) describes as a $1.7 trillion opportunity. Other companies and analysts have their own numbers, which do differ, but the step-change is clear and significant. Hadoop, and the vendors gravitating to that community, mostly address 'data at rest'; data that has already been collected from some process or interaction or query. The bigger opportunity relates to 'data in motion,' and to the internet of things that will be responsible for generating so much of this.

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Digital Transformation - Part 2: Culture And Organization

Dan Bieler

The most digitally aware managers are realizing that cultural and organizational transformation will dominate their agenda for years to come. Emerging business models will not function based on old organizational structures, traditional innovation approaches, and outdated management techniques.

In the late 1990s, many traditional businesses mentally leapfrogged by adding a “dotcom” to their name. Those old enough to remember those days, know that many businesses failed miserably in their efforts and still have not fully adjusted to IP realities.

Today we see a similar trend, with every business claiming to be a "digital" business. To me, this is a clear sign that we have crossed the zenith of digital hype. This period is a risky one. Just as the once mighty telcos were blown out of the water by the much more agile and flexible social media and big data players in the 2000s, I believe a majority of traditional businesses will succumb to the forces of successful digital businesses. Declarations of digital intentions, the creation of chief digital officers, or the allocation of digital budgets alone will not translate into digital success.

Most grand digital visions and strategic ambitions that have become the staple diet of corporate presentations mostly fall short of concrete plans for management innovation. It is not conceivable how traditional management techniques can deliver on promises of ongoing and inside-out-driven innovation as well as responding instantaneously to fast-changing customer demand. The creation of a work environment that stimulates employees’ self-initiative and creativity as well as passion for one's work must be the central building block for an agile, flexible, and experimental digital business.

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