You May Not Need A CDO - But Wouldn’t You Want To Improve Your Odds Of Success

Jennifer Belissent, Ph.D.

Gene Leganza and I just published a report on the role of the Chief Data Officer that we’re hearing so much about these days – Top Performers Appoint Chief Data Officers.  To introduce the report, we sat down with our press team at Forrester to talk about the findings, and the implications for our clients.

Forrester PR: There's a ton of fantastic data in the report around the CDO. If you had to call out the most surprising finding, what would top your list?

Gene:  No question it's the high correlation between high-performing companies and those with CDOs. Jennifer and I both feel that strong data capabilities are critical for organizations today and that the data agenda is quite complex and in need of strong leadership. That all means that it's quite logical to expect a correlation between strong data leadership and company performance - but given the relative newness of the CDO role it was surprising to see firm performance so closely linked to the role.

Of course, you can't infer cause and effect from correlation – the data could mean that execs in high-performing companies think having a CDO role is a good idea as much as it could mean CDOs are materially contributing to high performance. Either way that single statistic should make one take a serious look at the role in organizations without clear data leadership. 

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Turn CMO-CIO Collaboration into Digital Action at Forrester’s Asia Pacific Summits

Dane Anderson

September winds bring the spring to Sydney, the official end of the monsoon to Mumbai, more of the same to equator-bound Singapore and Forrester’s CMO-CIO Summits to all three! We are looking forward to bringing together the region’s digital business leaders in Singapore on September 2, Sydney on September 16 and Mumbai on September 22. Themed “Build Your Customer-Obsessed Enterprise”, Forrester’s 2015 Summits will focus on how to strengthen the vitally important CMO-CIO partnership to build a customer-obsessed digital business. 

Our agenda will focus on the specific roles and responsibilities of CMOs and CIOs on the digital journey and the collaboration points between them. We will explore how CMOs can drive digital customer experience (DCX) and how CIOs can support their progress by driving digital operational excellence (DOX). Instead of frothy appeals that explain the importance of the CMO-CIO partnership, we will provide specific steps that will enable a roadmap to better teamwork.

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The Future Of Telcos Remains Precarious

Dan Bieler

The old telco business model is breaking up. Telcos are at a crossroads, with one path leading to becoming pure utilities, another to transforming into important members of digital ecosystems, and a third to their complete demise.

Telcos have had years to prepare for this situation, but few have used their time effectively. At this stage, I see few reasons to be optimistic about the prospects for most telcos to recover the ground they’ve lost to other players in the emerging digital ecosystems because:

  • Consumers care more about apps and devices than connectivity than ever.One main impact of the onslaught on telcos by over-the-top providers like Facebook and handset manufacturers like Apple has been to push telco brands to the back of the consumer’s mind. Consumers care more about which handset and apps they use than which connectivity provider they have. Telco brands just don’t rock as they used to years ago.
  • Business leaders do not see telcos as the first choice to provide ICT services.Data from Forrester’s Global Business Technographics® Networks And Telecommunications Survey 2015 shows that business and IT users trust systems integrators and independent solution specialists more than telcos with a wide spectrum of voice, data, and managed services. One of the reasons is that business and IT users feel that telcos don’t understand their specific business requirements sufficiently.
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Covering Cloud Computing From Europe For Forrester’s CIO Role

Paul Miller

Hello from the newest analyst serving Forrester Research’s CIO role. My name is Paul Miller, and I joined Forrester at the beginning of August. I am attached to Forrester’s London office, but it’s already clear that I’ll be working with clients across many time zones.

As my Analyst bio describes, my primary focus is on cloud computing, with a particular interest in the way that cloud-based approaches enable (or even require) organizations to embrace digital transformation of themselves and their customer relationships. Before joining Forrester, I spent six years as an independent analyst and consultant. My work spanned cloud computing and big data and I am sure that this broader portfolio of interests will continue into my Forrester research, particularly where I can explore the demonstrable value that these approaches bring to those who embrace them.

I am still working on the best way to capture and explain my research coverage, talking with many of my new colleagues, and learning about potential synergies between what they already do and what I could or should be doing. I know that the first document to appear with my name on it will be a CIO-friendly look at OpenStack, as the genesis of this new Brief lies in a report that I had to write as part of Forrester’s recruitment process. I have a long (long, long) list of further reports I am keen to get started on, and these should begin to appear online as upcoming titles in the very near future. I shall also be blogging here, and look forward to using this as a way to get shorter thoughts and perspectives online relatively quickly. I’ve been regularly blogging for work since early 2004, although too many of the blogs I used to write for are now only preserved in the vaults of Brewster Kahle’s wonderful Internet Archive.

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Orange Must Intensify Its Transformation

Dan Bieler

Orange hosted its analyst event in Paris in July 2015, detailing its Essentials 2020 strategy for business customers. Central to Orange’s Essentials 2020 strategy is:

  • Pushing its customer experience capabilities. Orange shared its ambition to make its entire organization listen to its customers more effectively. In our opinion, Orange is one of the more CIO-focused telcos. One of Orange’s key goals is to support the CIO in regaining control over technology projects that have been lost to line-of-business (LOB) managers, who launch technology projects outside the CIO’s remit. Importantly, Orange also told us that it is working increasingly with LOB managers.
  • Driving the cultural transformation of Orange itself. Orange must become braver to disrupt itself. This includes bringing in new perspectives and experiences from outside, including other sectors. There are some encouraging signs that this is beginning to happen. For instance, Orange Business Services recruited its deputy CEO, Laurent Paillassot, from the financial services sector and put the American Diana Einterz in charge of its French Major Accounts.
  • Enhancing its digital solutions. Orange recognizes the greater role of software and data in its customers’ and its own business models. At the event, Orange demonstrated a number of interesting digital solutions in the Internet-of-Things (IoT), mobile, and healthcare spaces, which equal those of its leading telco peers.
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Coming Of Age, Not Mid-Life Crisis: Cities Are Ready...

Jennifer Belissent, Ph.D.

Smart cities are a myth.  But cities are now finally ready to invest in new technology.  No, I don’t find those two sentences contradictory. Yes, I do finally feel like the hype of smart cities is fading.  And, yes, I do think the promise still holds much potential for cities. But boy have I tired of hearing smart, smart, smart, smart, smart (somehow 5 times sounded right to me, or should I say sounded “smart”). 

Back in 2010 I wrote a lengthy report on the smart city opportunity for vendors. At the time my research was focused on vendors, and as the vendors were all worked up about smart cities it made sense to put some structure around the opportunity.  What were the primary market drivers?  What issues were cities currently facing or expecting to face in the future?  Anyone who has attended a talk on smart cities knows the drill ad naseam:  population explosion, urbanization, startling impact on city services (transportation, waste and water management, public safety, health, education etc.)  And, I’m just as guilty.  The slide at the right was from my first webinar on smart cities in 2010.

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Smart Home Activities Will Align With Existing Markets, Rather Than Create A New One

Frank Gillett

Consumers are implementing connected home activities one gadget at a time - Forrester surveys show that about 13% of US online adults use one or more smart home device. But unlike mobile, where a brand new technology established a new category, smart home products will transform existing home markets, such as insurance, energy, health, water, and food, rather than create a new one.

Sure, Apple and Google will battle to be the dominant app interface and software platform – but they won’t be controlling or taking over those markets. Instead, individual companies will soon be experimenting with how to promote and even subsidize smart home products to create interactive relationships with their customers that simply weren’t possible before. Liberty Mutual and American Family just started subsidizing Nest Protect smoke detectors in return for monthly confirmation that the homeowner is keeping them on and connected to Wi-Fi. Similarly, grocers and food brands such as Nestlé and Unilever will begin promoting smart devices, like the Drop baking scale, and recipe filled apps to encourage shoppers to keep coming back.

Emerging smart home devices will perform 13 activities that can be organized into two domains: crucial background activities that automate everyday tasks like environmental comfort, home access, and home safety, or fun and helpful foreground activities that sustain engagement, such as entertainment activities, cooking and health management, and monitoring family members. Clients can see more details and many examples in our report, The Smart Home Finally Blossoms

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Data Digest: Partner With Business Leaders To Lead The Business Technology Transformation

Tyler McDaniel

For CIOs, finding a clear path forward in the Business Technology (BT) Agenda can seem daunting, as you work to balance critical operational requirements with new initiatives designed to help your organization win, serve, and retain customers.  But there are trailblazers in your organization.  Forrester continues to see spending on technology spread and move out of the CIO’s organization and into the business. In North America companies of more than 250 employees, 70% of technology spending is either business led or heavily influenced by business. That part is not new, but it is increasing.

Specifically 50% of business managers, directors, and vice presidents are increasing their departmental budgets on technology products and services over the next 12 months.1  In fact, 16% of these business leaders are increasing their spend by more than 10%.2 This isn’t shadow IT in action; it’s the new way of doing business. Within your own organization a minority, but important, population of business leaders are aggressively investing in technology products and services to achieve three essential business goals. Over the next 12 months, the 16% of North American business leaders dramatically increasing their spending are focused on:

  • Improving customer experience – 86% of these leaders rate this as a High or Critical priority
  • Improving products or services – 83% of these leaders rate this as a High or Critical priority
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Beyond Light: Smart Lighting Illuminates More Than Streets

Jennifer Belissent, Ph.D.

Gone are the days when the only signal a streetlight sent out was that it was time to go home on a summer evening.  Many kids grew up with that rule.  My mom had a cowbell, which was infinitely more embarrassing but likely more effective in calling us home. But times have changed. We now text our kids to get them home for dinner.  And, street lights themselves would no longer deign to serve just that purpose. 

Streetlights these days do provide light (and do that much more efficiently), but they just might be your source of Wi-Fi or of information on the weather, air quality, traffic, and parking availability, or might be the city’s source of information on you.  They will also be a platform for new services that leverage all of the data the new light poles collect through their embedded sensors, or also a source of electricity to power digital signs through solar-energy. These new and improved streetlights are becoming increasingly popular as they demonstrate a clear cost-savings over their predecessors and promise the potential for revenue generation through new applications and services.  That is a win-win for cities, citizens and the ecosystem of potential application and service providers out there. 

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Data Today Keeps The Doctor Away

Jennifer Belissent, Ph.D.

In scanning through my O’Reilly Data Newsletter today, I noticed A Healthy Dose of Data, an MIT Sloan case study on the data and analytics culture at Intermountain, a healthcare network that runs 22 hospitals and 185 clinics.  The study is definitely worth the read.  It reviews the history of data use at Intermountain, which began way before the “big data” craze of recent years.  In fact, it was back in the 1950s that one of the Intermountain cardiologists, Homer Warner, began to explore clinical data to understand why some heart patients experienced better outcomes than others.  He went on to become known as the “father of medical informatics – the use of computer programs to analyze patient data to determine treatment protocols,” and with colleagues designed and launched their first decision-support tool. 

The case study goes on to describe how Intermountain has cultivated a strong data and analytics culture. Over time – Rome was not built in a day, as they say – they established data maturity across the organization by investing in the capacity (new tools and technologies), developing the competencies (new skills and processes) and finally spreading the culture (awareness, understanding and best practices) of data and analytics. Their analytical approach brought results – fewer surgical infections, more effective use of antibiotics, less time in intensive care etc – contributing to lower costs, better medical outcomes, and overall patient satisfaction.

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