Digital Business Ecosystems Rewrite The Rules Of Business

Dan Bieler

Customers use digital experiences to help satisfy their needs every day. Digital tools expand our experiences and change our lives at home and at work. Digital is now intertwined into the fabric of our lives at work and at home. We expect digital tools to add value to us no matter what we’re doing. Some 89% of executives believe digital will disrupt their business in the next twelve months.

To keep up with the rapidly evolving digital expectations of customers, businesses must not just develop a digital strategy but also become a digital business. This means more than building a few bolt-on mobile apps. It’s a fundamental rethink of your business model within a dynamic digital ecosystem that impacts every aspect of your business.  

Transforming into a digital business is complex enough. But the rapid evolution of digital products and services makes it even more challenging for business leaders to navigate the landscape of digital business. Slow innovation cycles jeopardize the survival of traditional firms, and winning businesses will move toward an ecosystem business model. Digital businesses need to embrace digital ecosystems that support the continuous exchange of information and data to create value.

To master digital business, business leaders must minimize the complexity of digital ecosystems and learn to create value within such ecosystems. Digital ecosystems drive faster innovation, more efficient production, and more agile go-to-market activities, because:

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The Digital Transformation Playbook

Nigel Fenwick

As regular followers of my blog know, I’ve been covering digital business transformation since 2012 - before “digital” became the be-all and end-all term of technology marketers. (Have you noticed how every tech vendor is now an expert in digital business?). At the end of 2012 I penned a post predicting 2013 would be the year of digital business. And since then I’ve focused much of my research on the interconnections between digital business, customer experience, marketing and technology.

I’m happy to announce that we’ve now published a playbook on digital business transformation for the C-Suite - specifically for CIOs, but useful for all executives, including CMOs. The first few reports in the playbook are already live on our website, with the remainder coming on stream in the next few months. This playbook complements the earlier e-business digital playbook we published a couple of years ago.

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Hadoop, Spark, and the emerging big data landscape

Paul Miller

Not very long ago, it would have been almost inconceivable to consider a new large-scale data analysis project in which the open source Apache Hadoop did not play a pivotal role.

Every Hadoop blog post needs a picture of an elephant. (Source: Paul Miller)

Then, as so often happens, the gushing enthusiasm became more nuanced. Hadoop, some began (wrongly) to mutter, was "just about MapReduce." Hadoop, others (not always correctly) suggested, was "slow."

Then newer tools came along. Hadoop, a growing cacophony (innacurately) trumpeted, was "not as good as Spark."

But, in the real world, Hadoop continues to be great at what it's good at. It's just not good at everything people tried throwing in its direction. We really shouldn't be surprised by this. And yet, it seems, so many of us are.

For CIOs asked to drive new programmes of work in which big data plays a part (and few are not), the competing claims in this space are both unhelpful and confusing. Hadoop and Spark are not, despite some suggestions, directly equivalent. In many cases, asking "Hadoop or Spark" is simply the wrong question.

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Expectations For Mobile World Congress 2016

Dan Bieler

The last year has flown by: In just a few weeks the Mobile World Congress (MWC) is on again. So what can we expect from the leading global get-together of mobile-heads this year? In my view there will be:

  • Less hype concerning mobile device launches. The leading smartphone and tablet providers will announce or showcase new models of established product lines, including more wearables and watches, like Samsung’s Galaxy S7, Sony’s Xperia Z6, LG’s G5, Huawei’s P9, HTC’s One M10, and Microsoft’s Surface Phone as well as newcomers like the Nextbit Robin or the OnePlus 2 Mini. Yet, I expect more of an evolution than a revolution. Blackberry might provide more insights into its future as device manufacturer beyond the Priv. Both Apple and Google will announce their upcoming devices at their own respective events, not at MWC. I am interested to see which way the pendulum is swinging: device commoditization or real new innovation. I expect the former.
  • Increasingly intertwined messaging of big data and IoT vendors. Big data will play an important part in most IoT solutions. Ultimately, IoT is not really about things but rather about data. Mobile-connected objects create scale and various channels for sensor data that flows back and forth. I will listen to how the messaging for front-end, customer-facing and back-end operational activities are emerging among IoT vendors like Nokia, Telstra, GE, Ericsson, and Salesforce but also among firms like ABB and John Deere. I expect AI and machine-learning to play a growing role for big data and IoT initiatives.
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Welcome To The Age Of Innovation - Perspectives On CES 2016

Nigel Fenwick

Presenting and hosting a panel on digital transformation at this year's CES gave me the opportunity to wander the 2 million square feet of exhibit space and assimilate some of the changes coming our way:

Welcome To The Age Of Invention. For me, the most exciting aspect of CES is the sheer volume of innovative, inventive startups that are tapping into the power of sensor-enabled technology to create new products and services. Many of these companies are funded through crowdfunding platforms like Kickstartergofundme and indiegogo. The pace of innovation will accelerate as high-school kids use their fertile imaginations to tap into the technology that’s now second nature to them.

The Internet Of Things Will Fuel Rapid Digital Transformation. Based on the sheer volume of internet connected devices coming on the market this year, we’re going to see an explosion in the Internet Of Things (IoT). Everything – from wearables that track everything from your health and fitness to the temperature of a newborn child, and in-home appliances that interconnect to create a home environment tailored to your preferences – everything is now designed with sensors that collect data that's used to deliver better customer outcomes. Or at least that’s the promise. Sensors can and will improve our lives – giving us more data and insight about our environment and allowing us to tailor experiences to be more finely tuned to our personal desires. The data provided by the sensors in the Internet Of Things is the fuel for further digital transformation.

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The Internet Of Things Will Drive Customer Relationships, And The Industrial Sector Is Realising The Opportunity

Paul Miller

The Internet of Things, or IoT, finds its way into a lot of conversations these days. CES in Las Vegas last week was awash with internet-connected doo-dahs, including cars, fridges, televisions, and more. Moving away from the home and into the world of business, the IoT furore continues unabated. Instead of connecting cars to Netflix or a teen-tracking insurance company, we connect entire fleets of trucks to warehouses, delivery locations, and driver monitoring systems. Instead of connecting the domestic fridge to Carrefour or Tesco or Walmart in order to automatically order another litre of milk, we connect entire banks of chiller units to stock control systems, backup generators, and municipal environmental health officers. And then we connect the really big things; a locomotive, a jet engine, a mountainside covered in wind turbines, a valley bursting with crops, a city teeming with people.

A picture of wind turbines in Scotland
Wind turbines in Ayrshire. (Source: Paul Miller)

The IoT hype is compelling, pervasive, and full of bold promises and eye-watering valuations. And yet, despite talking about connected cars or smarter cities for decades, the all-encompassing vision remains distant. The reality, mostly, is one in which incompatible standards, immature implementations, and patchy network connectivity ensure that each project or procurement delivers an isolated little bubble of partially connected intelligence. Stitching these together, to deliver meaningful views — and control — across all of the supposedly connected systems within a factory, a company, a power network, a city, or a watershed often remains more hope than dependable reality. 

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Global Tech Market Will Continue To Grow At 4%-5% Rates In 2016 And 2017

Andrew Bartels

Forrester has just published our global tech market report for 2016 and 2017 (see “The Global Tech Market Outlook For 2016 To 2017- The Five Themes That Will Define Tech Spending In The Next Two Years”). For the first time, our January 2016 global forecast includes telecommunication services (voice and data, wireline and wireless), which increases the overall size of the global market for tech purchases by business and government by $625 billion to a total of $2.9 trillion in 2016. However, even the addition of telecomm services cannot pull the global tech market out of the 4%-5% growth track, with growth at 4.5% in 2016 and 4.7% in 2017 when measured in exchange-rate-adjusted US dollars.

The five main themes that define the global tech market over the next two years are:

1.       Moderate overall growth remaining below 5%. The global tech market in constant currency terms will continue to grow modestly throughout 2016 and 2017 at 4.5% and 4.7%, respectively. The strong US dollar will persist in 2016, resulting in lower dollar-denominated growth rates. However, we expect the dollar to lose some steam by 2017, so we project 4.9% growth in US dollar terms.

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Age Of The Customer Drives Investment In Business Intelligence Tools

Jennifer Adams

In the age of the customer, customer-obsessed firms serious about personalizing customer experience invest in business intelligence (BI) and analytics tools.  Companies collect more and more data on their clients today. BI software is increasingly important to extract information from the raw data, revealing insights. Analytics software tools go beyond traditional reporting and analysis to anticipate customer behavior and provide real-time insights.

In our recently published Business Intelligence And Analytics Software Forecast (Global), 2015 to 2020, we take a more in-depth look at the market’s growth potential. We expect the global BI and analytics software market to grow at a 12% CAGR over the 2015 to 2020 period.

The traditional BI market has matured, but still offers a significant growth opportunity. While business intelligence software is not a new product, Forrester projects robust growth for the solution. As we move into the Internet of Things era, an exponential increase in the number of connected devices will drive demand for BI software tools to understand the information. We expect the BI software market to grow at a 9% CAGR over the forecast period.

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ForecastView Meets Business Technology

Jennifer Adams

Welcome to my blog!

I joined Forrester recently as a senior forecast analyst on the ForecastView team focusing on business technology (BT) topics. What is ForecastView you ask? It’s a Forrester product that puts the numbers around our research reports by publishing a five-year quantitative outlook. To learn how our forecasts can help you with your investment decisions, read our ForecastView overview.

Our BT forecast team takes a look at cloud, security, IoT, business intelligence, marketing ad technology, Big Data, and other hot topics in the BT space. We launched our ForecastView BT bundle in 2015. In case you missed it, our three 2015 forecasts examined eCommerce platforms, cloud security, and API management. Some highlights:

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IBM Opens Its Global Watson IoT Headquarters In Munich

Dan Bieler

IBM opened its global Watson Internet of Things (IoT) headquarters in Munich this week. It is hardly unusual for this quintessential global business to open research centers on a global scale. But the decision to move the HQ for one of the most dynamic areas of the digital transformation arena to Munich is noteworthy for several reasons. The move underlines that:

  • IoT has a very strong B2B component. Yes, IoT will play a role in consumer segments such as the connected home. But connectivity limitations and costs, compliance, and security will put many IoT ambitions in the consumer space to rest. The real action will be in the B2B space, where IoT will be elemental to drive activities like predictive maintenance, fleet management, traffic management, supply chain management, and order processing. Forrester expects the market size for B2B eCommerce, of which IoT is a subset, to be about twice that of B2C by 2020.
  • IoT and big data are closely intertwined. The real value of IoT solutions will not come from the hardware components of connected assets but from the data they generate and consume. In order to manage and make sense of the data that connected assets generate, cognitive systems and machine learning will play a fundamental role for the evolution of IoT. “Employing” Watson in the IoT context elevates IBM’s role in the IoT market significantly.
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