Lessons From A CIO Forum Conversation On Employee Engagement

TJ Keitt

Yesterday afternoon, I moderated a panel on the role the IT department can play in the business's employee engagement efforts. Any follower of this blog knows that this is a topic I've talked about a lot lately (see previous posts here and here) because hiring, developing and retaining talented and productive employees is critical in the Age of the Customer. The panelists were Ed Flahive, Vice President Global Learning & Development at State Street, Mike Peterson, CIO and Vice President at CHG Healthcare Services, and Ray Velez, Chief Technology Officer at Razorfish. As you've probably observed, this was an eclectic group, representing human resources, IT and client delivery groups respectively. Well, that was on purpose. This topic requires perspectives from both business leaders and technologists. Having had 24 hours to think about that discussion, I thought I would share a few a-ha's I had from my conversation with these gentlemen:

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2013 Huawei Global Analyst Summit: welding together networks, devices and services

Dan Bieler

 

Dane Anderson, Dan Bieler, Charlie Kun Dai, Chris Mines, Nupur Singh Andley, Tirthankar Sen, Christopher Voce, Bryan Wang

 

Huawei is one of the most intriguing companies in the ICT industry, but its overall strategy remains largely unchanged: imitating established products and services, then adjusting and enhancing them, and making them available at an attractive price point. But to be fair: Huawei is pushing more and more innovative products.

In 2012, Huawei’s annual revenue growth slowed down to 8% to CNY 220 billion (about US$ 35 billion). During the same period, its EBIT margin remained flat at 9%, despite the changing revenue composition due to the growth of its consumer and enterprise business. Unlike last year’s event which was dominated by the announcement to push into the enterprise space, this year’s Global Analyst Summit in Shenzhen saw little ground breaking news. It was more of a progress report:

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Business Leaders Spending On Technology Because It’s Too Important To Let I.T. Go It Alone

John McCarthy

In Forrester’s latest report, “Tracking The Renegade Technology Buyer,” we uncover the motivations and technology spending priorities of over 1,000 North American and European business executives. The data from the Forrsights Business Decision-Makers Survey was collected in Q4, 2012.  Of the 891 respondents that had a budget over US$1 million, 824 spent their own money on hardware, software, telecom or services. Twenty-four percent of the 891 spent over 21% of their budget on technology, accounting for over $US 31 billion in expenditures. Senior management and sales and marketing were the top spending business functions and financial services/insurance and telecom/utilities lead the pack from a vertical perspective.

So why are business leaders carving out part of their own budgets for technology? It’s contrary to what you think. The high business spenders are not doing it because it is faster or cheaper than central IT – they are doing it because they see technology as too important to their success not to be involved. In parallel, senior management is more relaxed in dealing with the technology – 33% of the high spenders say there technology IQ has increased and they are more comfortable working with IT. Another 20% say that their use of consumer technology has changed their expectations of how technology should be used. The consumerization of IT is not just about younger Gen Y staff wanting to bring their own Macs and iPhones to the office; just as or more importantly, it’s also changing the way senior managers drive business and technology strategy.

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US Tech Market Will Grow By 6.2% In 2013 And 6.8% In 2014, As Improving Consumer Spending And Housing Offset Government Cutbacks

Andrew Bartels

No one would claim that the US tech market is booming.  With Europe still mired in recession and debt problems, US economic growth looking soft, and business and consumer worries about the US government raising tax rates and cutting Federal spending, it is not surprising that businesses and governments are being cautious in their purchases of technology goods and services.  But we think the fear is overblown.  Forrester's forecast for the US tech market in 2013 and 2014 -- published today as "US Tech Market Outlook For 2013 And 2014: Better Times Ahead" -- projects a 6.2% rise in 2013 and a 6.8% growth in 2014 in US business and government purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing.  Adding in slow growing telecommunications services pulls growth down to 5.7% in 2013 and 6.1% in 2014. That may not be a boom, but it is certainly not a bust.

While CIOs are cautious in their tech buying -- and in the case of the Federal government, actually cutting back -- that caution has and will show up mostly in reduced spending on computer and communications equipment (with the exception of tablets).  CIOs will be most aggressive in software, especially for SaaS apps, analytics, and mobile apps. IT outsourcing will see good growth in 2013 as the result of 2012 selection decisions, while IT consulting and systems integration will come on strong in 2014.  Business and government purchases of telecommunications services will continue to grow at a slower rate than the overall tech market.  

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Winning The Customer Experience Game

Nigel Fenwick

We all hear and read stories of terrible customer experiences; like me, you probably have had your own share of bad experiences. And social media has made it possible for these bad experiences to be shared instantly with millions of people. But in our journey through life, we also experience service that exceeds our expectations. And as we read reviews online, we're more likely to see a mixture of both good and bad experiences. For example, I recently posted a glowing review for a B&B in Bethel, ME, even though a few things about my stay would have typically caused me to deduct points. My five-star review was extremely positive because the proprietor had blown away my expectations on service, delivering an experience way beyond any I've had in a five-star hotel.

But excelling at the personal touch in a small-town B&B is far easier than doing it at scale in a multibillion-dollar business. Yet there are companies that consistently deliver great customer experiences. (My colleagues even wrote a book on them). They aren't perfect all the time, but, on average, they are better than their competitors. At Forrester, we identify these companies through our annual Customer Experience Index (CXi) research. Toward the top of the 2013 index, we find companies like Marshalls, Courtyard by Marriott, USAA, TD Bank, Southwest Airlines, Vanguard, Home Depot, Kohl's, Fidelity Investments, and FedEx.

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Engaged Employees Expect IT Leaders To Understand Their Needs

TJ Keitt

My colleague Simon Yates and I have spent a good bit of time recently discussing the role of IT in creating engaging experiences for employees. We've proposed that IT leaders concern themselves with helping business leaders convert that engagement into productive actions that achieve positive business outcomes, like good customer experiences and employees advocating for the company. But what does this mean for IT leaders in practice? Well, let's look at a group of employees who are currently creating the types of outcomes businesses seek: those willing to advocate for their business as a place to work and as a place to do business. According to our Forrsights Workforce Employee Survey, Q4 2012, around two-thirds of this group feel IT understands and meets their needs (see figure below).

These positive attitudes toward the IT department's performance stand in stark contrast to the views of employees who aren't achieving these outcomes. For example, while 65% of employee advocates are satisfied with the service they receive from the IT department, just 27% of employees not fully advocating for the company share a similar opinion. So what creates this chasm in opinion? We find clues when we look at some of the attitudes employee advocates have about what their organizations allow them to do:

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Can Twitter be used for community discussion? Nestivity believes it can.

Nigel Fenwick

For many, Twitter is a great way to find out what’s happening in the world but not the first place they would turn to drive a meaningful discussion with a group of colleagues or customers. Nestivity hopes to change this by creating a tool which allows Twitter users (and that includes companies) to drive meaningful discussions through Twitter.

The site officially launched today, and it’s free for Twitter users to sign up. The company offers a freemium pay model by charging customers for adding multiple community moderators — provided you only have one moderator, it remains free (for now).

Naturally I’m trying it out and you can help figure out how it works by joining in on the conversation I’ve just set up in my very own “nest”:

What’s the role of IT in creating great customer experiences? Check out the discussion and add your POV and help drive the discussion and you could see your POV included in the new research to be published at the upcoming CIO Forum in May.

And “Chief Digital Officer: real or imagined?” — add your POV to this discussion to contribute toward the research I’m doing on this to be published at our CMO/CIO Forum in the fall.

Can Twitter support vibrant discussions? Does Nestivity add to the ability to make Twitter a useful engagement environment? Share your thoughts on this post here.

Next post: Winning The Customer Experience Game

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Enough Already With The "Death Of The PC Era" Garbage

Ted Schadler

(updated 10:10 ET 4/11/2013 for clarity)

The Death Of The PC Era. Pah.

As my friend John McCarthy is fond of saying, "that does not qualify as analysis." PCs, like cars and shoes and dishwashers, are here to stay. However, it is true that PC shipment numbers will decline or be stagnant as people fill out their multi-device toolkits. And some markets may never see the personal computer dominate as it has done in the industrial nations. But few people will abandon their computers altogether.

Let's start with some data and facts:

  • Two thirds of US consumers go online from 2 or more devices, including multiple computers in many cases.
  • 53% of global information workers use 3 or more devices for work. Computers (often two of them) are front and center in this statistic.
  • Computers wear out. Just as cars and shoes and dishwashers do. Intel & Microsoft brilliantly played a planned obsolescence game for decades: Bigger software needed bigger chips, which ran bigger software. Intel & Microsoft made billions. People got better tools. But even without this planned obsolescence, computers get tired.
  • People want the best tool for the job. Typing a blog, running a spreadsheet model, creating a presentation, closing the books, surfing the Internet are all (still) easier on a computer than a tablet, LapPhablet, smartphone, or TV. (Though checking for rain showers with Dark Skies or playing Words with Friends is better on a mobile device.)
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Colt revamps its channel approach – have they missed a trick?

Dan Bieler

This week, Colt launched its Ceano cloud services for SMBs with a particular focus on the reseller channel that actually services these businesses. As this announcement combines the business strategy of a telco provider with an innovative channel strategy, Forrester analysts Dan Bieler and Peter O’Neill have again combined (as in their previous blog on Cisco) to discuss their impressions:

Dan. Ceano is impressive in that it constitutes a true end-to-end platform, ranging from the network solutions provider to the channel partners and service enhancers, to the CIO of corporate clients, and all the way to employees – i.e., the actual users of Colts’ services. The main area of improvement of Ceano versus the previous customer engagement relates to the presentation of Colt’s portfolio.

Peter. Well, I had already called out their impressive channel strategy a few months ago, and this announcement continues that story. Leveraging the technologies from the ThinkGrid acquisition, Colt partners are now easily able to orchestrate, provision, and manage the Colt cloud services for their clients – and the system supports the partner’s own business processes from quotation to billing.

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Do info workers prefer iPads or Windows 8 tablets? Let's ask them! And other interesting questions...

Frank Gillett

For our Forrsights Workforce survey, Forrester annually surveys information workers.* I’m leading final preparation of our Forrsights Workforce survey focused on end user hardware and aimed at five major markets – the US, Canada, the UK, France, and Germany. By end user hardware, we primarily mean PC/Macs, tablets, and smartphones, but we may also focus a bit on peripherals. And we hope to mirror some of the questions from the Forrsights IT Hardware survey, which we develop after this one, so that we can compare results from this information worker survey to what IT buyers report in their survey. Analyst Heidi Shey is working on the other half of the survey, which will focus on security issues.

Below are the hypotheses and topics we plan to explore in the survey. Please give them a quick read, then post or email feedback by Friday, April 12 (Tuesday, April 16 at the very latest). If you are a Forrester client and would like to see a survey draft, please email your account rep and me.

These are statements of ideas we are planning to test in the survey questions, which are designed to confirm or disprove the idea. But we probably can’t fit all of these, so please help us prioritize – especially if you are a Forrsights Workforce client!

Info workers:

Multi-device use

  • Have multiple devices used for work, including many that are personally chosen and/or owned; they spend significant money on devices used regularly for work; and they expect to continue doing so.
  • Often blend work and personal tasks on the same device, despite employer policies to the contrary.
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