Do You Need An IT Execution Plan For Social Business Strategy?

Nigel Fenwick

Social technology is coming into every organization whether IT wants it or not. The adoption of social technologies to support business and customer needs has been fastest outside of IT — often with IT playing catch-up and struggling to provide value. CIOs are at a crossroads where they can either choose to lead IT toward social business maturity or sit back and watch as the rest of the organization pushes ahead, leaving IT in social business obscurity. The choice is easy, but the execution is difficult. A new report — Social Business Strategy: An IT Execution Plan — suggests CIOs should assess the organization’s current social maturity and implement a plan that positions IT to successfully support a social business strategy.

Organizations are broadly categorized as social laggards, internally mature, externally mature or enterprise mature. The approach recommended for CIOs differs based on the maturity level. For example, CIOs in organizations with strong internal maturity should focus on developing a partnership with marketing in order to extend the use of social strategy out to customers and business partners.

Understand your social maturity

While very few organizations are already at the enterprise maturity level, CIOs in these organizations can take an active role in developing social business strategy by supporting the creation of a social business council and dedicating staff to support social strategy.

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Russian Cities Will Get Smarter... By Law.

Jennifer Belissent, Ph.D.

Russian IT decision-makers are optimistic about their prospects for the next 12 months, according to Forrester’s Global Budgets And Priorities Tracker Survey, Q4 2010 – and, surprisingly, much more so than those in other countries -- 67% reported that their prospects are good versus only 52% in the US and 35% in the UK.  On my recent trip to Moscow to deliver the keynote speech at Cloud Russia 2012, I looked for that optimism, and the root sources of it.  There are certain obvious sources.  The price of oil is high, and Russia is an oil exporter.  The 2014 Winter Olympics are bringing significant investment to the region.  But most importantly the political dialogue is focused on innovation and technology.  That, in Russia, counts for a lot. 

Given my own research agenda, I investigated the interest in public sector technology adoption and “smart city” initiatives.  The answers were mixed.  As elsewhere vendors are pushing solutions to improve transportation, energy efficiency and municipal administration.  But many of those technology vendors did not share the optimism of the IT decision-makers for their own prospects in Russia. They did not see Russian cities as highly motivated, or incented, to get smart. 

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Running Pamplona: ICT Drives City Initiatives (Not The Bulls)

Jennifer Belissent, Ph.D.

Twenty three years ago I arrived with a backpack and my best friend.  Last week I went back.  The city was as welcoming this time as it was the last, although the circumstances of my visit – and certainly my accommodations – were vastly different. 

Pamplona is a city of about 200,000 inhabitants in Navarra, in the North of Spain.  It is best known for the running of the bulls or, as it is known locally, the Festival of San Fermin, which many of us were first introduced to in Ernest Hemingway's The Sun Also Rises.

The bulls were not what brought me to the region this time (although they were the principal reason for my first visit).  Last week I participated in e-NATECH, a tech industry forum organized by ATANA, an association of local ICT companies in Navarra.  From what I saw in both the audience and across the city, Pamplona is clearly a front-runner in terms of ICT (and bulls as I recall from my first visit).

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What Can CIOs Learn From Marketing?

Nigel Fenwick

Play House at Forrester Marketing Forum 2011This week I was the lone IT analyst attending Forrester's Marketing Forum (Twitter #fmf11). Although I was there because much of my research overlaps with my colleagues covering marketing roles, I can't help feeling CIOs are missing out by not attending this event.

For many years I have believed that a successful CIO must understand marketing -- especially if he/she ever aspires to the CEO or COO role. Although today's marketing professional is more dependent upon technology than ever before, marketing is too often the part of the business least understood by IT.

With awareness comes understanding: which is why I think it is essential for IT professionals, and especially CIOs, to attend conferences like the Marketing Forum. These events help develop a much greater understanding of the challenges faced by the marketing professionals in your organization -- and will no doubt stimulate many new ideas about how IT can help.

Here's just a sampling of some of the thinking heard at the Marketing Forum this week in San Francisco:

We heard from Practice Leader David Cooperstein that CMOs are suffering a crisis of confidence: most feel they don't have enough budget, executive support, or marketing technology to meet the new digital challenge. (The CIO message: your CMO shares your pain.)

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How IBM And HP Are Strengthening Their IT-For-Sustainability Offers

Chris Mines
How IBM and HP are Strengthening Their IT-for-Sustainability Offers
 
Over the past few weeks, computing giants HP and IBM have made significant new thrusts into the market for sustainability software and services. At first look, both companies are strengthening their commitment to "IT for sustainability (ITfS)" -- the use of information technology to help their customers meet their sustainability goals.

Both are prominently featuring "energy" in their messaging in keeping with the current customer focus on that side of the consumption/emissions coupling. And both are emphasizing a combination of software products and consulting services, the two segments of the market that we at Forrester have been tracking for some time now, as regular readers of this blog know by now.

But under the surface there are more differences than similarities in the approach that these two suppliers are taking to ITfS; differences that illuminate divergent strategies, philosophies, and experiences between them. Let's take a closer look.

HP is going broad; IBM is narrowing its focus. With its initial "Energy and Sustainability Management Services" entry, HP is leveraging its data center design and implementation expertise into buildings and other assets across the enterprise. It is stressing a holistic, top-down approach, starting with assessment workshops and other methods to help customers get their arms around the size and shape of the energy/carbon/resource issues.

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Change Management: A Critical Component Of Any New Business Process

Claire Schooley

Think of how often you hear the term change management in relation to a new business process. What’s your reaction? Is it “More of that high level stuff that sounds good, but . . .” or is it “Give me something concrete that I can really use to help my staff understand this new process and feel more comfortable with the change”? Methodologies, frameworks, and best practices abound, yet up to 60% of change management projects fail — and these failures are expensive. Should businesses just accept the fact that changes like the introduction of a new email system, a merger or acquisition, or a larger business transformation project are just going to be tough, and no resources are really effective?

Change management can work, but it’s a hard, continuous, and often frustrating process with no shortcuts. Any change management must have detailed planning, strong executive support, continuous and varied communications, assessments to gauge successful milestones, many training approaches, and reinforcement until the process becomes part of the new culture. The change leader needs deep experience in organizational change management. Whether this person is an external consultant or an inside person with a change management background, in most cases this leader also will need to develop a strong team relationship with the project manager.

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Forrester Projects 8% Growth In US IT Purchases In 2011, And 10% In 2012

Andrew Bartels

Forrester just published our latest forecast for the US market for business and government purchases of information technology (IT) goods and services (April 1, 2011, "US Tech Market Outlook, Q1 2011 -- Building a Springboard For Even Stronger Growth in 2012"), and we have raised our 2011 and 2012 outlooks: we now forecast 8% growth in the US in 2011 (up from our 7.4% forecast in January) and 10.3% in 2012 (compared with a 9.3% forecast earlier).  For the broader ICT market (information and communications technology, adding in telecommunications services), 2011 growth will be 6.8% compared to a 5.1% rise in 2012. 

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Amazon’s Cloud Drive Is The First Step To Being A Personal Cloud Ecosystem Player

Frank Gillett

Today, Amazon announced the Amazon Cloud Drive. I think it is the first salvo in a series of steps that will lead Amazon to compete directly for the primary computing platform for individuals, as an online platform, as a device operating system, and as a maker of branded tablets.

Amazon Cloud Drive logo, with puffy arc behind the words

Much of the attention is going to the Amazon Cloud Player, announced at the same time, which enables customers to stream music stored in Cloud Drive – Forrester’s Mark Mulligan blogged about that for Consumer Product Strategists (Amazon Beats Apple and Google to the Locker Room). But the general purpose design of Cloud Drive, combined with the long-term opportunities for personal cloud services, lead to a really interesting set of possibilities and insights into Amazon’s long-term strategy for Vendor Strategists trying to sort out the technologies and players of next-generation personal computing platforms.

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Q1 2011 Results For Accenture And Oracle Point To Strong 2011 For IT Services And Software

Andrew Bartels

On March 24, 2011, both Accenture and Oracle released better-than-expected financial results for their fiscal quarters ending in February 2011.  In both cases, revenue growth was stronger than expected, with Accenture's revenues up 17% and Oracle's reported revenues up 37%.  Note, though, that Oracle's reported revenues were measured against a period in which it recorded only one month's of Sun Microsystems' revenues following the completion of that acquisition; adjusting the base period to show a more complete picture of the Sun revenues (which we estimate at about $1.8 billion in the three months ending in February 2010, compared with the reported $458 million), Oracle's revenues were 13% higher.  Still, its software and services revenues were up a strong 19%.

Because their fiscal quarters end one month earlier than most other vendors, Accenture and Oracle serve as early indicators of how the IT services and software segments of the tech market do each quarter.  The 27% increase in license revenues for Oracle's database and middleware products and the even stronger 34% growth in its application license revenues are signs of growing demand for software products -- not just SaaS products, but also classic licensed software products.  Purchases of those products typically lead to purchases of systems integration consulting services from IT services vendors like Accenture.  And indeed Accenture reported 20% growth in revenues from consulting services, compared with more modest (but still good) 13% growth in its outsourcing businesses.  So, my expectations that software and IT services will be the leading tech market growth categories in 2011 are supported by these results.    

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Informal Buyers Of IaaS Cloud Computing Are Driving The Market, Not Formal IT Buyers – Vendor Strategists Need Two Strategies

Frank Gillett

Cloud infrastructure-as-a-service (IaaS) is a hot market. Amazon Web Services, now five years old, drives a lot of attention and customer volume, but the vendor strategists at enterprise-facing providers such as IBM, HP, AT&T and Verizon have been building and delivering IaaS offerings. As I’ve studied the market, I’ve heard wildly different types of requirements from buyers and quite a range of offerings from service providers. Yet much of the industry dialogue is about one central idea of what IaaS is – think that’s wrong headed. I found that there were really two buyer types: 1) informal buyers outside of the IT operations/data center manager organizations, such as engineers, scientists, marketing executives, and developers, and 2) formal buyers, the IT operations and data center managers responsible for operating applications and maintaining infrastructure.

With this idea in mind, I set out to test the views of IT infrastructure buyers in the Forrsights Hardware Survey, Q3 2010 and learned that:

  • After 2+ years of cloud hype, only 6% of enterprises IT infrastructure respondents report using IaaS, with another 7% planning to implement by Q3, 2012. After flat adoption from 2008 to 2009, this represents an approximate doubling from 2009, off a very small base.
  • Almost two thirds of IT infrastructure buyers themselves don’t believe they are the primary buyer of cloud IaaS! We asked them which groups in their company are using or most interested in cloud IaaS. Only 36% of IT infrastructure buyers listed themselves, while 7% didn’t know. The rest, 58% said that IT developers, Web site owners, business unit owners of batch compute intensive apps, and other business unit developers were more interested in using IaaS than themselves.
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