Telefonica Digital: Only A First Step Towards Transforming The Telco Business Model

Dan Bieler

I recently attended an event in London where Telefonica shed more light on its Digital division. Digital is the central division driving innovation at Telefonica group and was formed in September 2011. However, Telefonica, despite the creation of Digital, still is somewhat in the old telco mold of inside-out innovation.

Digitization is undoubtedly a major theme affecting both society and the economy, bringing huge implications for communication, collaboration, consumption, and production. The big focus areas for Digital are e-health, digital content distribution, security, cloud, M2M, OTT comms, financial services, and advertising. In this respect, Digital is the right answer. My main observations from the event are:

  • Digital’s product development process is not end-user-focused enough. Digital does not seem to involve the actual end users as much as other solution providers, like for instance Colt (http://goo.gl/oBCO0). What was missing during most presentations was a better demand-analysis of its customer base. Digitization has big implications for company cultures, modes of operation, and ways of life. Businesses require significant assistance in preparing for these challenges such as change management. Digital did not explain how it plans to address these either through internal capabilities or through partnerships with business consulting firms like Deloitte. This means that Telefonica risks developing solutions that do not meet demand. Moreover, detailed customer case studies were not discussed, although Digital did present its portfolio development approach.
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Workforce Technology Assessment Is Really Workforce Behavioral Science . . .

Ted Schadler

Richard H. Thaler, professor of economics and occasional writer for The New York Times, wrote on Sunday about how he and other behavioral scientists are helping the UK government use behavioral data to form better policies. See their "Test, Adapt, Learn: Developing Public Policy with Randomised Controlled Trials"  paper for more details.

Thaler has created and cites two principles that help policy makers create good policies that work for normal people:

  • "If you want to encourage some activity, make it easy."
  • "You can't make evidence-based policy decisions without evidence."
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Announcing The Sixth Annual Forrester Groundswell Awards

Ted Schadler

 

Colleague Nate Elliott has gloriously announced Forrester's sixth annual Groundswell Awards. I've cut and pasted his announcement below. (Thanks, Nate!)

We want to recognize your good work in employee mobile, innovation, and collaboration or social projects. You'll find them in the Business to Employee (B2E) category. We're also very interested in the best B2C and B2B scenarios. CIOs care about all three, of course.

Submit your entry here by September 5th. We'll be making the announcements at our Digital Disruption Forum For CIOs And CMOs in October.

Good luck!

++++++++++++++++++++++++

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Pitney Bowes Reinvents To Become A Company For Today And Tomorrow

Tim Sheedy

I recently spent a few days in Connecticut, USA, with Pitney Bowes. So why, you ask, is a CIO advisor who spends most of his time talking about the future of business technology in Asia Pacific spending time with a company that makes machines that stamp mail? That is a good question, and one I hope to answer while at the same time showing where I believe Pitney Bowes can help in your organisation.

So Pitney Bowes stamps mail. Yes — but they see it differently. They see that they enable communications with customers. Interesting. But mail is declining — right? Yes, it is, and Pitney Bowes has made many acquisitions to position itself as the leader in the digital mail space. And they have gone from just providing the communications capability to working across the entire customer lifecycle. Acquisitions of Portrait Software, MapInfo, Group 1 Software and many of the other firms they have acquired in the last 10 years have given them the ability to do:

-       Customer profiling and segmentation
-       Data preparation and composition
-       Multi-channel customer output
-       Customer response management
-       Response analysis

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Can Dell Be Your Strategic Vendor In Asia Pacific?

Tim Sheedy

I recently had the chance to spend some quality time with Dell in Singapore at their event for Forrester analysts in the Asia Pacific region. As Dell is a company traditionally known for its hardware products, I had low expectations – to date, few of my CIO clients would consider Dell a “strategic” supplier.

However, I was pleasantly surprised – Dell is reinventing itself from a PC and server supplier into an IT solutions provider. The benefits of the acquisition of Perot Systems and various software assets in North America and around the globe are starting to pay dividends in Asia Pacific.

As a late entrant into many of the newer markets they play in, they have the rare advantage of being able to do things differently – both from a solution and a pricing standpoint. From data centre transformation through legacy migration and application modernisation, to networking solutions, Dell is attempting to be disruptive player in the market – simplifying processes that were typically human-centric, and automating capabilities to reduce the overall burden of owning and running infrastructure.

Their strategy is to stay close to what they know – much of their capability is linked directly to infrastructure – but their open, modular, and somewhat vendor agnostic approach is in direct opposition to the “vendor lock-in” solutions that many of the other major vendors push.

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Governments Need Basic Technology Tools (And, Are Receptive To Them)

Jennifer Belissent, Ph.D.

I had an interesting follow-up conversation last week with Dmitry Chikhachev of Runa Capital. I asked what he was seeing in smart cities and civic innovation among Russian startups in these areas. Dmitry’s response supported my own observations that governments need to focus on the basics. 

What kinds of innovation are you seeing in the public sector in Russia? 

Many processes in the public sector are still supported by paperwork. One example is visa applications. To obtain a visa you need an application, on paper. You need copies of supporting documents. In Singapore, paperwork has been eliminated. You upload everything. And, you get a barcode via email to be shown with your passport when entering the country. To do this requires process change within government, which in turn, requires data handling, integration, electronic signature, and personal data protection — a combination of relatively high-tech solutions. 

Within Russia, this kind of change — the shift to paperless government — is happening at the regional government level in Russia. Tatarstan is the most advanced from this point of view. (But on a promising side note, the Minister of Informatics from Tatarstan just got promoted to the federal level.)  Government interaction with Tatarstan is already paperless.  

Who is providing the solutions to support a paperless government? 

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Why BT (Business Technology) Is Like Sex: If It Doesn't Feel Good, You're Doing It Wrong

Technologists love definitions. In fact, technologists particularly like arguing about definitions.

The term "BT" for example, is constantly under debate. Is it IT or BT? What is BT anyway? How is it different? This line of questioning really doesn't help deliver business results. I often equate it to trying to define "happy."

A poor business perception of IT's performance could actually be a strong indicator that IT is being driven more by arguing about definitions than getting stuff done. I've seen these "definitional disagreements" bring many technology supported business projects to their knees, the classic being data warehousing projects or CRM implementations.   

Whether you understand (or like) the term BT or not, the key to achieving better technology integration with business strategy is to avoid discussions about definitions. In fact, the magic answer is in the dictionary definition of happy itself.

hap·py [hap-ee]*

  1. delighted, pleased, or glad, as over a particular thing: to be happy to see a person.
  2. characterized by or indicative of pleasure, contentment, or joy: a happy mood; a happy frame of mind. 
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Impressions From Google Enterprise’s Road Show

Dan Bieler
Recently I attended one of the day-long events in Munich that Google offers as part of its atmosphere on tour road show that visits 24 cities globally in 2012. The event series is aimed at enterprise customers and aims to get them interested in Google’s enterprise solutions, including Google Apps, search, analytics and mapping services, as well as the Chrome Book and Chrome Box devices.

Google Enterprise as a division has been around for some time, but it is only fairly recently that Google started to push the enterprise solutions more actively into the market through marketing initiatives. The cloud-delivery model clearly plays a central role for Google’s enterprise pitch (my colleague Stefan Ried also held a presentation on the potential of cloud computing at the event).

Still, the event itself was a touch light on details and remained pretty high level throughout. Whilst nobody expects Google to communicate a detailed five-year plan, it would have been useful to get more insights into Google’s vision for the enterprise and how it intends to cater to these needs. Thankfully, prior to the official event, Google shared some valuable details of this vision with us. The four main themes that stuck out for us are:

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Smart Product API Extends Product Value, Leads To Smart Connected Landscape

John McCarthy

In our February 13, 2012, “Mobile Is The New Face Of Engagement” report, we talked about the important link between smart products and mobile apps. A key to that link is creating a smart product application programming interface (API) that allows third parties to easily write apps that tap into the data feeds from the connected offerings, extending the value of that product with an “app ecosystem.”

As a precursor to an upcoming report that will lay out the smart connected product landscape and the unique combination of IT and product development skills required to build them, Forrester interviewed Cédric Hutchings, the general manager of Withings, a leader in the connected medical device segment.

The highlights of the discussion with Cédric included:

  • Company vision. The company seeks to improve the value of everyday devices through connectivity and apps.
  • Role of API. An API enables different services that could not be built in-house; it makes it easy for third parties to get data flow and integrate it into app. As a result, Withings has an ecosystem of more than 40 third-party apps that integrate with its Wi-Fi-connected bathroom scale.
  • Cloud value proposition. A personal wellness data dashboard allows consumers to manage health across a range of devices and inputs/apps from Withings and other companies.
  • Smart product skill requirements. These requirements include a mix of user experience, embedded software/product development talent, traditional IT web, database and middleware competencies, and partner management liaison capabilities.
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Categories:

What Business Are You In?

Nigel Fenwick

After wrapping up our CIO Forum in Paris last week, I can definitely say CIOs and IT leaders care about strategy. The theme of this year's conference was "Collaboration To Co-Creation," and we included a number of sessions directed at helping IT leaders step up and influence business strategy.

A highlight of the forum was Peter Hinssen's talk on The New Normal — you can see a sample of Peter delivering an earlier version of his presentation on YouTube (http://youtu.be/s_w04xb4MqM?hd=1). And Peter's talk perfectly framed the strategic themes of the conference.

Through a number of keynote and track sessions, CIOs discussed transforming IT to have an even greater impact on business outcomes. Central to this theme was the exploration of Forrester's new BT Strategic Planning Playbook, including a workshop-style session where CIOs got to exchange experiences on moving their organizations away from being order-takers and toward strategic partners with lines of business.

It's clear from the discussions I had with many of the CIOs attending that IT leaders sense new opportunities to partner in developing effective business strategy and moving toward co-creation. But there are challenges ahead; here are a few I shared in Paris in a short session on co-creation:

Language is important. What we say and how we say it are critical. Even speaking plain English is challenging. For example, in England one might say "put the money in the boot" (probably only likely if you are a bank robber but I like the imagery so bear with me). What we might imagine is something like this

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