Data Digest: Internet of Things Success Requires a Close Partnership Between IT and Business

Marc Jacobson

Survey data from Forrester Research indicates that Internet of Things (IoT) solutions may finally be ready for ‘prime time.’ Business Decision Makers (BDMs) report that IoT has become a top business priority and they are assessing solution feasibility and, in some cases, already investing. IoT will be driven by the business side of the house, but a close collaboration between business and technology management stakeholders is a prerequisite for success. Forrester believes that IoT will ultimately serve as a driving force for the Business Tehcnology (BT) Agenda by changing processes, skills, and the mindset of technology management organizations. 

Forrester Business Technographics® runs a series of annual surveys with business and technology decision-makers measuring technology adoption plans, drivers, barriers and buyer behaviors. Let’s take a closer look at how adoption plans for IoT have evolved over the past year.

Compared with 2014, BDMs surveyed in 2015 were more than twice as likely to report they would begin IoT investment within the next 12 months, 50% more likely to report they were currently implementing or piloting IoT and dramatically less likely to be unfamiliar with IoT adoption plans or report they were not familiar with the technology. In 2015, 49% of BDMs reported that the expansion of IoT initiatives was a “high” or “critical” organizational priority over the coming 12 months.

 

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China Unicom Monetizes Customer Behavior Data

Gene Cao

China Unicom demonstrated its big data analytics platform, including customer analytics, during the Shanghai World Mobile Congress last week. Huawei is helping China Unicom’s Shanghai affiliate build a big data analytics platform that can collect and analyze customer demographics and operational and behavioral data. For instance, it can estimate a consumer’s monthly income based on annual mobile fees, know whether she is walking or driving, and what routes she regularly takes. Such data is unique and even more comprehensive than that generated by Internet service giants like Baidu, Alibaba, or Tencent. China Unicom will begin to leverage this data analytics platform to monetize data in several ways:

 

  • Retain customers. China Unicom can predict which high-value customers may be thinking of dropping its services and target marketing based on the customers’ context to retain them. For instance, the system can automatically send a targeted offering when a customer passes by a China Unicom office. In 2014, the telco performed A/B testing among 200,000 Unicom subscribers in Shanghai who were thinking of changing telecom service providers. This helped China Unicom retain RMB 10 million in revenue from those users receiving targeted marketing offerings from the system.
  • Enhance public security. China Unicom uses the platform to help the Shanghai city government to monitor people’s location in the city in real time. The system provides a real-time heat map and automatically sends an alert when it discovers that too many people are crowded into one area. This can help the government avoid accidents such as the one that occurred in the Waitan district of Shanghai last year.
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When Sourcing Enterprise Marketing Capabilities, Start by Understanding Customer Expectations

Michael Barnes

 

To successfully grow in Asia Pacific (AP), you must excel at understanding customers’ needs, wants, and behaviors and have the capabilities necessary to transform this insight into improved customer engagement. But that’s true everywhere. What sets the AP region apart are the continued vast differences between markets. Appreciating these market differences, and the impact they have on customers’ expectations, is critical when sourcing enterprise marketing capabilities.    

In my recent report, entitled “Consider Regional Factors When Evaluating Enterprise Marketing Software Suites”, I highlight key regional trends affecting marketing priorities and the likely impact on organizations’ marketing technology requirements, including:

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Today's Forecast: Partly Cloudy With A Chance Of Hybrid Deployment

Rusty Warner

I’m a big fan of the cloud – and not because I live in the United Kingdom, which actually gets a lot more sunshine than people think. Seriously, I like the cloud because of the opportunities it brings for enterprise marketing technology deployment. Note that I said “opportunities,” as in potential; although Forrester’s research shows SaaS is the leading factor driving system replacements and net new investments in business applications, there is still work to do where marketing technology is concerned.

But what about all the so-called “marketing clouds” on the market? Surely, they offer cloud-based solutions, right? Cloud-based, yes; exclusively in the cloud, no. Of the eight modules in the Adobe Marketing Cloud, Adobe Campaign and Adobe Experience Manager remain largely hosted or on-premise solutions today. Within the Oracle Marketing Cloud, loyalty and marketing resource management (MRM) modules offer on-premise deployment options. Last week, IBM announced the IBM Marketing Cloud – based on the Silverpop acquisition, with IBM Campaign (formerly Unica) retaining a “marketing software” description. Even the majority of Salesforce Marketing Cloud customers employ a hybrid model for customer data management.

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The Real-Time Interaction Management Space Is Dizzyingly Fragmented

Rusty Warner

Back in February, I published a brief on Demystifying Real-Time Interaction Management, where I reviewed evolving requirements for building a contextual marketing engine, capable of engaging empowered customers across real-time channels. These requirements include: customer recognition, contextual understanding, decision arbitration, offer orchestration, and measurement and optimization. 

As promised then, I have been researching the RTIM space, and you can now read my latest report Market Overview: Real-Time Interaction Management, published last week. In this market overview, I look at four distinct – yet all critical – approaches to RTIM:

1.      Enterprise marketing technologies address all five RTIM requirements, though offerings vary widely by vendors who focus on enterprise marketing software suites (EMSS), cross-channel campaign management (CCCM), marketing automation, business process management (BPM), customer relationship management (CRM, and loyalty programs.

2.      Advanced analytics is a prerequisite for successful RTIM execution, addressing all requirements except offer orchestration.  The broad analytics spectrum includes customer profiles, predictive models, and digital intelligence for web analytics, tag management, and identity management.

3.      Digital marketing solutions address personalization for websites and social media channels, and include advertising technologies such as data management platform (DMP) and demand-side platform functionality for paid media targeting and re-targeting.

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Financial Institutions Can Create New Customer Value With Huawei’s FusionInsight Analytics Platform

Gene Cao

I attended Huawei’s 2015 global analyst summit in Shenzhen last week and studied its latest strategy for big data innovation. In a change from its previous big data offerings around storage, Huawei has reorganized the data analytics department and focused on infrastructure software that enables big data applications from ISV partners. Mr. Zhu, General Manager of Huawei FusionInsight, talked about FusionInsight, which financial institutions like ICBC and China Merchants Bank use to enhance customer analytics capabilities like customer recognition, segmentation, and marketing automation. Basically, Huawei FusionInsight is a data analytics platform with two major components: 1) a distributed open “database” platform that includes Hadoop, Sparc, and Storm and 2) “middleware” with open APIs to enable multisource data management and analytics.

Chinese financial institutions have a huge amount of legacy transactional data as well as in-motion online and mobile banking data, but they are unable to deal with all of it. With the previous systems of record, financial institutions couldn’t analyze all of this structured and semi-structured data in a unified “data pool.” To solve this problem, they are using Huawei FusionInsight to consolidate multisource data and enable more efficient customer and marketing analytics. Huawei FusionInsight is creating new value in the customer journey for a leading Chinese commercial bank by allowing it to:

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Need Better Customer Insights To Fuel Your Digital Strategy? Start By Working On Your Communication Skills

Michael Barnes

 

Retaining and delighting empowered customers requires continuous, technology-enabled innovation and improved customer insight (CI). The logic is simple in theory, but that doesn’t make it any easier to implement in practice.

In my recent report, entitled “Applying Customer Insight To Your Digital Strategy”, I highlight the top lessons learned from organizations in Asia Pacific (AP) that are successfully leveraging CI to fuel digital initiatives. It all starts by ensuring that data-driven decision-making is central to the digital strategy. With that in mind, I want to use this blog post to focus on two key lessons from the report:

 

Lesson One: Establish A Clear Mandate To Invest In Customer Analytics

Successful companies serve empowered customers in the way they want to be served, not the way the company wants to serve them. When building a mandate you should:

■  Expect natural tensions between various business stakeholders to arise. To secure buy-in from senior business decision-makers, start by illustrating the clear link between digital capabilities and data as a source of improved customer understanding. Identify measurable objectives and then link them to three to four scenarios that highlight where the biggest opportunities and risks exist. Continue to justify data-related investments by restating these scenarios at regular intervals.

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Q&A With Walter Levitt, CMO, Comedy Central

Carlton Doty

HBO Now. Sling TV. CBS All Access. It seems almost every day we learn about a new deal or a new service that will continue to fragment the way consumers watch the content they love.

It’s also just one of the reasons I’m excited to hear from Comedy Central at this year’s Forum for Marketing Leaders - a brand that is actively traversing the fast-paced changes in the TV industry.

Walter Levitt is CMO at Comedy Central, and will join us on stage on Tuesday to discuss the evolution of the ‘multi-channel, multi-platform brand.’ In advance of his session, he sat down with me to talk about the effect of these changes on the Comedy Central brand.

Q. Comedy Central is rooted in a traditional linear cable channel, but (like many of your peers) is actively pursuing a multi-screen, multi-platform strategy. Do you think of Comedy Central as a TV brand, an entertainment brand, a content brand, or something else?

A. Comedy Central is a comedy brand. For our fans, we are their favorite “go to” whenever they are looking for a laugh. We have a strong 24-year history as a TV network, but over the last few years we've evolved our brand to ensure we are meeting the needs of our fans everywhere – and that obviously extends far beyond the linear TV screen.

Q. In building engagement, loyalty and audience, how do you balance the place of the Comedy Central brand vs. the brands of your individual programs, like the Daily Show or Broad City? How do you allocate investment, for example?

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Q&A with Lori Tieszen, SVP & CMO, Stoli Group USA

Carlton Doty

It’s hard to believe it’s been nearly a year since we introduced contextual marketing at our 2014 Forum for Marketing Leaders. At that event, we focused on new approaches to marketing that harness the power of customer context to deliver real-time value in customers’ moments of need. This year’s forum for marketing leaders is right around the corner, and we think it’s going to be our best yet.

The 2015 Forum will dive deep into the next-generation marketing organization, addressing the critical challenges today’s marketers face on the road to customer-obsession. And as this year’s conference host, I couldn’t be more excited about the roster of industry CMOs, marketing leaders, and Forrester analysts we’ll hear from next week.

One such speaker: Lori Tieszen, SVP & CMO at Stoli Group USA. I had a chance to catch up with Lori to hear about Stoli’s brand reboot. Here’s a sneak peak at this journey, which we’ll hear Lori talk about in detail next week.

Q. What was behind the decision to create a standalone company to focus on the Stoli brand in the US?

A. With the last importer, William Grant & Sons, Stoli lost share in the vodka category. When the contract was up, our owner, Mr. Yury Shefler, thought it was more important to market and sell his vodka directly versus through a third party. Third party brands, not owned by the importer, are never as important as their own brands.

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Q&A with Jim Berra, SVP & CMO, Carnival Cruise Lines

Carlton Doty

In the wake of a series of negative and well-publicized events in early 2013, Carnival Cruise Lines has since engineered a strong recovery and ranks as the No. 1 improved US brand in terms of consumer perception over the past year.

At Forrester’s Forum for Marketing Leaders next week, we’ll hear from Jim Berra, SVP & CMO at Carnival Cruise Lines, on how the well-known hospitality brand made this journey. In advance of his session, I sat down with Jim to talk about the evolution of his role at the company, and how he’s traversed the tricky path toward customer-obsession. Here’s a look at our conversation.

Q. How will your role change in the coming 3 to 5 year time period and what is driving this change?

A. It’s always fun to try to crystal ball where marketing will go and I’m 100 percent confident that I won’t get this right, but I’ll give it a shot. I think what will separate marketers has less to do with the role we’ve traditionally played and more to do with the role we are now being asked to play. This centers around how the product and customer experience should evolve, and how the organization will use data and consumer insight to unlock opportunities to innovate.

To do this well, it will require CMOs to collaborate effectively across a wider range of stakeholders, and in some cases, take a few steps outside of our comfort zones. It also requires taking a larger view of the business, and effectively balancing different internal and external perspectives.  

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