Google Ends Wave: What Lessons Collaboration Tech Product Managers And Marketers Can Learn

TJ Keitt

Yesterday (August 5), Google announced that it was ceasing attempts to make Google Wave a viable standalone product. Considering the fanfare that the product received in the run-up to its general release (announced at Google I/O in May), it was no surprise the story burned across the blogosphere and the press. In following some of the Twitter traffic, what I found interesting was some of the low-level chuckling I saw from some competing vendors in the collaboration software space. Why? Well, before I get into that, let me make a couple of stipulations:

  1. Google has a history of less-than-stellar product launches. In tossing Google Wave on the scrap heap (and parceling out some of its components as open-source software), the brainchild of Lars and Jens Rasmussen joins a growing number of failed products. Some of this can be attributed to mistakes that Google has made time and again in marketing and product design (my colleague Tom Grant pointed out some of this with Google Buzz). But you also have to factor in that because Google has such a high profile, every time a product under performs it draws a lot of attention, making each failure seem large. But this does not seem to slow the search engine giant's innovation engine, which brings me to my second point.
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Evaluate Your HERO Project -- Find The Gotchas, Share Results, Build Support

Ted Schadler

Yesterday we launched our Empowered microsite. On this site you can find lots of resources about our new book, including the blog, where to buy the book in bulk, how Forrester can help your empowered strategies, and a new HERO Project Effort-Value Evaluation tool.

First, some background. When Josh & I first began investigating HEROes (highly empowered and resourceful operatives, basically folks like you who make a difference using new technology), we knew that we needed a way to assess the effort that your projects required. And then we realized that you were tackling new technology solutions because you saw the value they could provide. So we needed to help you assess the value and the effort.

Thus was born the HERO Project Effort-Value Evaluation tool that we introduce in chapter 2. This tool includes five value questions and five effort questions that categorize your project into one of four classes and provides you some high-level guidance on what to watch out for. The online version of the tool also creates a nice email format with the results of your evaluation, which you can easily share with colleagues to get them involved in the project.

I think your best use of the tool is to sanity check your thinking on the project, get insight into the questions you need to answer before getting started, and get others on board with your project goals. If you're in business, it's a way to get IT involved. If you're in IT, it's a way to help your business colleagues scope a project and get your help with it.

We can also help you assess the project and provide additional insight into where you should dig deeper.

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The US Q2 2010 GDP Report: Good News For Tech, Not So Good For Employment

Andrew Bartels

While taking in the latest US GDP report and its implications for the tech markets, I have been struck by a pattern of US business putting its money into technology instead of people. Part of the increased tech investment is replacement of old servers and PCs, but most investment has been in technologies to cut costs and improve efficiency. These purchases have been good news for the US tech market, which (as I predicted) is growing strongly. However, it is not so good for the overall economy. The lift to US economic growth from business IT investment is a positive, but the corporate reluctance to hire new employees is making consumers reluctant to spend. Moreover, much of the business investment in computer equipment is flowing overseas in the form of imports of these products, which is also hurting US GDP growth. So, the strong outlook for the tech market is paradoxically contributing to a less robust outlook for the US economy.

The US Department of Commerce released its preliminary report on US Gross Domestic Product in Q2 2010 last Friday, July 31, 2010, and today posted more detailed numbers on business investment in computer equipment and communications equipment. In addition to providing Q2 2010 data, there also were revisions in data for business investment in computer equipment, communications equipment, and software for 2007 to Q1 2010. So, let’s look at what the latest data is saying about the state of the US tech market.

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Unscrew Your Light Bulb!

Nigel Fenwick

Unscrew Your LightbulbRollin Ford has one of the toughest CIO jobs on the planet. He leads a global IT team in one of the world’s largest companies by revenue and employees, a company that has earned a reputation for leadership in supply chain that has allowed it to dominate its markets. Yet Wal-Mart is constantly under pressure to maintain its leadership position. In the US, Target has become a fierce competitor, while in the UK, Tesco may have overtaken Wal-Mart in supply-chain leadership, with Tesco's move into the US watched closely by Wal-Mart.

Earlier this year, Ford sat on a CIO panel discussing IT’s role in innovation. His thoughts on innovation also touched on strategy and alignment. He suggested that innovation starts with the customer, then leads into a business strategy, and then it gets enabled by technology. However, he acknowledges, “there are very few secrets out there.” Ford suggests that the only competitive advantage over time is the speed at which your organization can implement and leverage innovative ideas: “Your organization has to embrace change and new technologies, and that becomes your model. It’s about getting from A to B and doing it quicker than everybody else.”

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How Well Do You Understand Your Business And IT Strategy?

Nigel Fenwick

Whether you are a CEO, CIO, IT employee, or working outside of IT, you have some level of understanding of your organization’s strategy. At least that’s what I believe. But how much do you understand? To find out we’re conducting research across the enterprise to see how well employees understand business strategy and whether they have any idea about the IT strategy or even the IT architecture strategy.

As a reader of this blog, I know you are an innovative thinker and business-savvy — I’m hoping you will please take five minutes now or later today to help out our research by taking part in this survey, no matter where you work or what your role is. Even if you cannot take the survey, you can still help by sharing a link to this post (http://bit.ly/cioblog29) with friends, colleagues, and associates who you think may be interested in the results.

 The survey examines a number of aspects of business and IT strategy, such as:

  • How well defined and understood is the business & IT strategy?
  • How well understood are the measures of strategy success?
  • What time horizons are most common for strategic planning?
  • Frequency of planning updates
  • The perception of IT (from inside IT and from outside IT)
  • The maturity of enterprise architecture planning
  • Social technology strategy

I'll be writing future blog posts here based upon the data we gather as well as sending participants a summary of the results. 

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Why CEOs Should Stop Limiting IT Budgets

Nigel Fenwick

CEOs should stop limiting IT budgetsAs CEOs put IT budgets under pressure year after year, CIOs and their teams focus on balancing money spent on running the business (RTB) versus money spent on growing the business (GTB). By decreasing the percentage of their budget spent on maintenance and ongoing operations (RTB), they aim to have a greater share of their budget to spend on projects that grow the business. In the best IT organizations, the ratio can sometimes approach 50:50 — however, a more typical ratio is 70% RTB and 30% GTB.

Unfortunately, such practices suggest an incremental budget cycle — one that looks at the prior year’s spend to determine the next year’s budget. While this may be appropriate for the RTB portion of the IT budget, it is far from ideal for the GTB portion. Incremental budgeting for GTB results in enormous tradeoffs being made as part of the IT governance process, with steering committees making decisions on which projects can be funded based upon the IT and business strategy. Anyone from outside of IT who has worked through IT governance committees understands just how challenging that process can be. And the ultimate result of such tradeoffs is that sometimes valuable projects go unfunded or shadow-IT projects spring up to avoid the process altogether.

How CEOs Can Get More Value From IT

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A Tale Of Three Software Vendors: Microsoft Up, IBM Lagging, SAP In Between In Q2 2010

Andrew Bartels

To paraphrase Charles Dickens, Q2 2010 seemed like the best of times or the worst of times for the big software vendors.  For Microsoft, it was the best of times; for IBM, it was (comparatively) the worst of times; and for SAP it was in between.  IBM on June 19, 2010, reported total revenue growth of just 2% in the fiscal quarter ending June 30, 2010, with its software unit also reporting 2% growth (6%, excluding the revenues of its divested product lifecycle management group from Q2 2009).  Those growth rates were down from 5% growth for IBM overall in Q1 2010, and 11% for the software group.  In comparison, Microsoft on June 22, 2010, reported 22% growth in its revenues, with Windows revenues up 44%, Server and Tools revenues up 14%, and Microsoft Business Division (Office and Dynamics) up 15%.  And SAP on June 27, 2010, posted 12% growth in its revenues in euros, 5% growth on a constant currency basis, and 5% growth when its revenues were converted into dollars.

What do these divergent results for revenue growth say about the state of the enterprise software market? 

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Jive Looks To Play With The Big Fish

Nigel Fenwick

This week, Jive Software, a leading player in social technology, announced it has closed $30 million in Series C financing, with Kleiner Perkins Caufield & Byers (KPCB) joining Sequoia Capital as the company’s venture investors.

So what does this mean for CIOs and IT, the custodians of enterprise technology architecture?

It is clear Jive wants to play with the big boys in the enterprise software space. To date, many Jive deployments have not involved IT. This ability to deploy its technology without IT’s involvement has no doubt helped Jive to this point. Of course, having market-leading functionality hasn't hurt. (Jive has featured highly in recent Forrester Wave reports).

At the recent Enterprise 2.0 conference in Boston, I sat down with Jive’s new CEO, Tony Zingale, to explore the company strategy. From our discussion, it was apparent that Jive intends to compete for a big slice of the enterprise collaboration marketplace. Fundamentally, this is the right direction for Jive, but I foresee some big challenges for the company along the way.

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Green IT Adoption Is Driven by Business, Not Environmental, Considerations

Chris Mines

I've been leading Forrester's efforts in sustainable computing and green IT for the past three years, with a particular focus on the role of IT professionals and assets in furthering corporate sustainability initiatives. We work with many clients — both supplier and buyer organizations — to improve the adoption, governance, and communications of their green IT and overall sustainability programs and policies.

One of the centerpieces of Forrester's ongoing research in this area is our survey of IT practitioners at enterprises and SMBs worldwide. We have done the survey twice each year since 2007, and it provides a fascinating window into the motivations, depth, and breadth of corporate commitments to greener IT processes and into IT's role in broader corporate sustainability efforts. I want to share two results from our latest survey (conducted in April 2010) and briefly discuss the implications of those findings. 

 

At first look, the data in Figure 1 (click image for a larger version) is not-so-good news for those of us evangelizing and implementing green IT. Simply put, sustainability and energy efficiency rank low (No. 10 out of 11) on IT's priority list. But let's look a little closer at some of the other priorities our survey respondents identified.

"Improve the efficiency of IT" ranks No. 1. That should be directly related to green characteristics of assets and processes, particularly in terms of energy usage. And look at No. 5 on the list, "Define strategy for risk and compliance." This also directly relates to green IT initiatives for e-waste disposal, carbon reporting, and the like.

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Three American Leaders In Green IT And Building Technology

Chris Mines

Watching the World Cup over the past few weeks gave me a new appreciation for soccer/football/futbol. Imagine passing, catching, shooting a ball with NO HANDS.

The goal that Ghana scored in overtime (sorry, "extra" time) to knock out the USA was, sadly, prettier than anything that Tom Brady or Jerry Rice could do with an American football.

So my national pride took a hit as the US was eliminated — fortunately it got a boost in an unexpected way on a trip to a client's event later that week. I spent the day at Panduit Corp.'s new company headquarters outside of Chicago, speaking to their executives and customers on my favorite topic: the role that IT leaders and IT organizations can play as enablers and catalysts of corporate sustainability initiatives.

In the course of Panduit's headquarters-opening event, I got a chance to visit with three companies with a lot in common: privately-held, headquartered a long way from Silicon Valley or Route 128, and family- or founder-led. Not the usual characteristics of innovative, high-tech firms. And yet all three are at the front edge of technologies being used to make buildings and data centers more efficient and less environmentally impactful:

Lutron of Coopersburg, Pa., founded in 1961 by the inventor of the rotary dimmer switch. A supplier of leading-edge lighting systems for green buildings. The lighting in the building's conference rooms and public areas was calm, cool, and extremely energy-efficient.
 

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