Emerging Markets Report Optimism And IT Budget Increases

Jennifer Belissent, Ph.D.

Last week, Forrester released results from our “Global IT Budgets, Priorities, And Emerging Technology Tracking Survey.” Highlights of the survey are reported in Chris Mines’ recent blog, the title of which gives you the gist of our findings: The Overall IT Budget Environment Has Turned Positive.

GlobalForrSights2010_IndustryOutlook.PNGHowever, there were some very interesting differences across some of the geographies we surveyed.  Respondents in emerging markets tend to be more optimistic than their counterparts in more mature markets. When asked about the outlook for their industry, 51% of respondents in Latin America thought that 2010 would be a very good or somewhat good year, followed by 36% in Emerging Asia (China and India) and Russia, with North America and Western Europe lagging behind with only 31% and 25%, respectively. Big difference in outlook between Western Europe and Latin America! On a more positive note all around, these numbers were much more positive than the outlook of respondents in last year’s survey.  In 2009, only 8% of respondents in NA and WE expected a good year – really not very optimistic about their industry outlooks. Emerging Asia (without Russia) was 15%, and Latin America was 21%. 

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The Overall IT Budget Environment Has Turned Positive

Chris Mines

Forrester’s newest survey of the IT spending environment has encouraging news that underpins our forecasts of a rebound in industry fortunes after the nasty recession of 2008-09. The good news for tech vendors is that IT budgets and purchasing plans are starting to reflect an improving economy. Last week, Forrester released results from our “Global IT Budgets, Priorities, And Emerging Technology Tracking Survey.” Among the top-level results: just over 40% of the 2,800 IT decision makers surveyed expect to increase their organization’s overall IT spending in 2010, up from just 12% in 2009; another 33% expect to hold their spending steady. So the overall IT budget environment has turned positive.

Respondents identified the top business priorities supported by IT investments as: 1) grow company revenue, and 2) reduce operating costs. No surprises there. But we were intrigued to see that “Drive new market offerings or business practices” ranked number 4, indicating that respondents are looking to IT to support and enable new product innovation.

We also see an uptick in spending on offshore IT services in 2010 vs. 2009, across ALL geographies.  Survey results also show that more than half of respondents have either implemented or are planning to implement SaaS, illustrating the tech industry’s continuing shift toward new purchasing models based on operating rather than capital expenditures.  

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Empowered Customers Need Empowered Employees Need Empowered IT

Ted Schadler

Groundswell technology comes to consumers first. At home, we get social, mobile, video, and cloud services pitched to us 24x7. Facebook, Android, iPad, Foursquare, Google, YouTube, Office Web Apps, Twitter. The list is endless and growing every single day. Empowering technologies like these will always come to consumers first. Why? Because it's a wide-open market. A single developer can build an application that changes the world from their broadband-connected bedroom.

All this technology puts tremendous power directly into the hands of your customers. Your customers often have more information than your sales team — or medical staff — does. They can also whack your brand from their smartphone, with video even, while waiting impatiently in line. They can get a recommendation from someone in their business network while listening to your pitch. Customers are empowered by information and connections. You'd better make sure you give customers better information than they can get elsewhere.

The only way to do that is to empower your employees to directly engage the needs and expectations of empowered customers. Only empowered employees can solve the problems of empowered customers.

Fortunately, your employees are not standing still. People are problem solvers. Left alone, your innovative employees (we call them HEROes — highly empowered and resourceful operatives) are building new solutions using these same groundswell technologies — and many others besides — to solve customer problems.

In fact, 37% of US information workers — employees that use computers for work — use do-it-yourself technology to get work done. Personal mobile devices. Unsanctioned Web sites like Skype or Google Docs or LinkedIn or Smartsheet.com. Unsanctioned software downloaded to a work computer.

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Ten Tips From The Enterprise 2.0 Conference

Nigel Fenwick

This year’s Boston Enterprise 2.0 Conference highlighted good examples of how companies are tapping into social technologies to empower their employees. For example, Mitre Corporation showed how they have successfully developed a collaboration community using open source technology. The platform they developed enables them to deliver secure access to ideas, discussions and content for employees and guests. Meanwhile, CSC showed how they have driven greater collaboration across 49,000 of their employees in just 18 months, with a strategy focused on connect, communicate and collaborate. (Those of us in the audience even witnessed the in-field promotion of Claire Flanagan, CSC senior manager for knowledge management and enterprise social collaboration, to director – congratulations Claire!)

Among a number of great speakers, JP Rangaswami, CTO & chief scientist at BT Design, opened the conference with a powerful speech that was supported by an innovative approach to real-time animation of content – alas, while the speech was good, the visuals were distracting for many in the room. JP suggested that the age of the locked-down desktop is coming to an end, “enterprises must design for loss of control.” Re-iterating a refrain from George Colony, who suggests “bits want to be free,” JP advised, “if you don’t want it shared, don’t put it on a computer.”

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Thoughts On The Enterprise 2.0 Conference

TJ Keitt

In the wake of the Celtics' fourth-quarter collapse that gave Kobe Bryant his fifth ring, I am endeavoring to find positive things to focus on instead of post-game analysis, which brings me to the Enterprise 2.0 Conference. This was my second year attending the event (which is conveniently located 10 minutes from my house), and I must say that my takeaway this year is more positive than my impressions after last year's show. I appreciated the optimism exhibitors and attendees have about the market and the passion they show for the topic - which led to some lively debates. But during my three days at the event, the things that really caught my attention were:

 

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Help Us Benchmark “Social Maturity”

TJ Keitt

We recently embarked on a Forrester-wide research project to benchmark the use of social technologies across enterprise organizations. Why is this important? Well, as you may know, we cover social technologies from a wide range of perspectives – from roles in marketing to IT to technology professionals. We find that each of these roles differ in their general “social maturity” and that most companies are experiencing pockets of success, but few, if any, are successfully implementing it across the board. In fact, full maturity in this space could take years, but there are clear differences in how some ahead-of-the-curve companies are using social technologies for business results. In fact, at this point it has been clearly established by many people (including us many times over) that social technologies are transformative tools that are changing the way companies do business. So we’re not talking as much about the opportunity social presents, but rather we are trying to determine the current reality of practitioners. It’s also clear that many companies have made tremendous strides in planning and organizing for the use of social technologies. However, the one question we consistently get is: “Where is my organization compared to others in the use of social media?”  We want to benchmark these companies to see if we can answer questions like:

 

  • How do you define “social maturity,” and why is it important to get there?
  • Which companies are ahead of the curve in implementing social technologies for both external use (i.e., for customers/consumers) and/or internal use (i.e., for employees/partners)?
  • What have been the biggest drivers of success?
  • What are the biggest challenges?
  • What steps do most organizations need to take, and why?
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How Socially Mature Is Your Organization?

Nigel Fenwick

We recently embarked on a Forrester-wide research project to benchmark the use of social technologies across enterprise organizations. Why is this important? Well, as you may know, we cover social technologies from a wide range of perspectives — from roles in marketing to IT to technology professionals. We find each of these roles differs in its general “social maturity” and that most companies are experiencing pockets of success, but few, if any, are successfully implementing it across the board. In fact, full maturity in this space could take years, but there are clear differences in how some ahead-of-the-curve companies are using social technologies for business results. In fact, at this point it has been clearly established by many people (including us many times over) that social technologies as transformative tools that are changing the way companies do business. So we’re not talking as much about the opportunity social presents, but rather we are trying to determine the current reality of practitioners. It’s also clear that many companies have made tremendous strides in planning and organizing for the use of social technologies. However, the one question we consistently get is: “where is my organization compared to others in the use of social media?”  We want to benchmark these companies to see if we can answer questions like:

  • How do you define “social maturity” and why is it important to get there?
  • Which companies are ahead of the curve in implementing social technologies for both external use (i.e., for customers/consumers) and/or internal use (i.e., for employees/partners)?
  • What have been the biggest drivers of success?
  • What are the biggest challenges?
  • What steps do most organizations need to take and why?

Here’s how you can help:

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Autonomy, Mastery & Purpose: Motivation For Your IT Staff

Nigel Fenwick

A recent email got my attention. It highlighted a blog post on the MIT Technology Review website about a video from RSA Animate (copied below) illustrating a lecture by Dan Pink (@danielpink on Twitter): "The Surprising Truth About What Motivates Us," based on his book of the same name.

What got my attention? We need to stop rewarding with a carrot and threatening with a stick. The video highlights multiple research findings that suggest knowledge workers are more motivated by autonomy, mastery and purpose than by financial reward. Pink suggests that financial incentives may actually have a detrimental impact on performance under certain circumstances.  (The research suggests money is a motivator for purely mechanical tasks but as soon as some level of cognitive processing is required to complete the task, money is secondary to other factors.)

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Does Your Organization Have A Great Internal/External Social Community?

Nigel Fenwick

Each year we conduct a search for the best examples of social media/social communities as part of our search for winners of the prestigious Forrester Groundswell Awards. This year we have added a new category of award aimed at internal communities designed to help management with innovation and/or collaboration across the organization — communities that empower employees.

In the fall I’ll be helping my colleague, Ted Schadler — co-author of the upcoming book Empowered — to judge the winners of the management category. So if you have a social community or social media success story please consider nominating your firm for one or more categories in this year’s awards.

Find out how to submit your nomination through the Forrester Groundswell blog here.

If you are a vendor and helping a client implement a social community you may nominate your client with their permission.

Good luck!

Do All Business Applications Need To Be Social?

TJ Keitt

Next week, vendors from across the social computing landscape will converge on Boston for TechWeb’s Enterprise 2.0, a business Web 2.0 conference and trade show. In advance of this event – which I will be attending – I thought I’d discuss a topic that has started to emerge in my research of social software: the proliferation of social components in business applications. More specifically, I want to address a question a client recently raised: is having a social layer going to be necessary for businesses to adopt business applications going forward?

Over the last few years, we have seen software vendors position social tools as part of software suites such as collaboration platforms (e.g. SharePoint 2010, Lotus Connections), project management packages (e.g. ThoughtWorks Mingle),  BPM tools (e.g. ARISalign) and CRM systems (e.g. Salesforce Chatter). This is the natural reaction to what seems to be heavy business interest in these technologies: 65% of firms deploy at least one Web 2.0 tool. However, the marketing and selling of these tools is predicated on two myths:

  • Myth #1: Information workers are clamoring for these social tools. I have sat in on many vendor briefings where a company representative tells me employees demand Facebook-like or Twitter-like tools to do their jobs. Not true. When we ask information workers about their use of social networks, wikis, discussion forums, blogs, and microblogs for work, only a small group actually uses them; social networking tools, the best-adopted technology, is used by only 12% of information workers. When we ask non-users their desire in using each of these tools, small portions express interest; the most sought-after technology, discussion forums, only piques the interest of 15% of information workers.
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