The Business Case For Digital Transformation

Photo: Rebecca Minkoff

Digital transformation investments are ultimately about business survival through disruption. Such investments have a direct impact on customer expectations and go beyond the traditional ROI. The business case for such disruptive investments is the focus of the report, Build Your Digital Transformation Business Case Around The Customer And Revenue Growth. The scope for disruption spans the entire customer life cycle, affecting everything from the supply chain to after-sales support. The key takeaways from this report:

  • Disruptive transformation must be viewed as a strategic investment. The real value of digital transformation investments relates to long-term revenue growth, not short-term technology ROI. Bolt-on digital projects do not change the fundamental value relationship that you have with your customer. To maximize the impact of digital investments, business and technology leaders must learn to value such investments through the eyes of the company’s customers.
  • A classic ROI calculation is neither always feasible nor desirable for digital investments. Digital transformation changes business processes and models. ROI works for single digital initiatives, but not for shifts in business models. Digital investments aimed at disruptive change across the enterprise challenge traditional ROI calculations. Attributing benefits like customer satisfaction, group productivity, and group revenues — let alone business survival — to a single digital investment is impossible because so much of the impact of digital transformation is cumulative.
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Expectations And Suggestions For Mobile World Congress 2017 Visitors — From An Enterprise Angle

Photo: Bergman Group

Between February 27 and March 2, 2017, Mobile World Congress (MWC) will once again take place in Barcelona. Last year, over 100,000 attendees visited the event in search of new insights about “everything mobile.” This year’s MWC theme is "The Next Element" and aims to underline how elemental mobile has become in our everyday lives. I would go further, as I believe that mobility is increasingly treated as a key enabler of the wider digital transformation process. From an enterprise perspective, I expect that during MWC 2017:

  • Process-mobilization debates will gradually replace technology discussions. I expect a little less hype around the features and functions of shiny mobile devices and network components this year. I hope that there will be more of a debate about how mobility can enhance business processes and change business models. Events like Web Summit host more advanced debates about the impact of smart devices on accelerating the business platform economy. MWC 2017 visitors should look for relevant case studies from the likes of GE Digital that underline how these business platforms can support positive business outcomes.
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The Future Of B2B Mobile Enterprise Services

Business-to-business (B2B) ecosystems facilitate the continuous exchange of information and collaboration. B2B ecosystems will play a central role for all businesses because they form the basis for redefining approaches toward innovation, knowledge management, supply-chain optimization, product development, sales, and marketing.

While the ultimate focus of these ecosystems is to create customer value, their more immediate effect is to drive operational agility in service of customers. Mobility will be a central enabler for these B2B digital ecosystems. Why?

  • Mobility is evolving beyond enterprise mobility management. Mobility shifts the way B2B ecosystems service their customers, support their partners, and affect competition. As a first step, technology teams need to move beyond enterprise mobility management (EMM). This comprises device, app, and content management, as well as telecom expenses, policy management, and security management. EMM relies on using several mobile apps in parallel without any functional integration between them.
  • Enterprise mobility experiences will significantly improve. Today, despite all the excitement concerning automation and machine learning, smart mobile devices still rely on direct user instructions. Business customers and employees have to move in and out of dedicated mobile apps to obtain support for specific business processes like procurement, product information, or sales analytics. These enterprise mobile apps rarely take into account the conditions that particular enterprise users find themselves in.
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Web Summit Stakes Its Claim As One Of The Most Important Global Tech Events

Photo: Paddy Cosgrave, CEO and co-founder of Web Summit

Recently, Web Summit took place in Lisbon. “Web-what”? Web Summit is indeed a relative newcomer on the event scene, but you should take notice. At its core, Web Summit is all about connecting larger enterprises and investors to smaller tech companies. On a human level, Web Summit’s goal is to bring together youngish and enthusiastic technology entrepreneurs with experienced investors and leading managers of technology vendors. The result is a fresh and dynamic exchange of ideas and opinions as well as the mutual mentoring of the involved participants.

Web Summit started only in 2009 with a few dozen bloggers, journalists, and technologists in a hotel on the outskirts of Dublin. Web Summit’s rise to become one of the most important global technology conferences is remarkable. In 2016, the event already attracted 53,000 visitors from 166 countries and 15,000 companies, with 65% of visitors being senior managers, including 7,000 CEOs.

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VMware Is Evolving As A Powerful Provider Of Cloud-Based Offerings

With Lauren Nelson

We recently attended VMworld 2016 Europe in Barcelona. The event, which attracted about 10,000 visitors, has established itself as an important destination for anyone with an interest in virtualization-related topics. In many respects, the event was over-shadowed by the VMware-AWS partnership. However, the event also provided us with several additional impressions. We felt that there were several encouraging signs pointing to how VMware is progressing as a business within Dell Technologies, in particular, VMware is:

  • Developing its ecosystem of partners. The event was a good example how large VMware’s ecosystem has grown over the years. Most major systems integrators, IT firms, software houses, and telcos were present. In discussions with management, it was obvious that VMware fully understands the need to partner with a wide range of providers to address the business requirements that enterprise customers have. We expect VMware to further strengthen its ecosystem activities.
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Blockchain’s Potential For IoT Solutions

“IoT is not a feasible concept without a solution that allows for the direct interaction between machines and devices. Blockchain is a technology that can help to unlock this piece of the puzzle.”

Matthew Spoke, CEO, Nuco

Blockchain technology and the IoT both are currently catching the imagination of many interested stakeholders — for good reasons. For IoT to come into its own in the long run, devices sooner or later will have to communicate directly between each other. More than that, they must also be able to initiate further action without waiting for external instructions.

Blockchain can potentially add many benefits to IoT scenarios. Both — IoT and blockchain — are based on decentralized, distributed approaches; in combination, they potentially offer huge benefits from operational efficiencies to revenue generation. While these benefits will not emerge overnight, business and technology leaders need to acquaint themselves now with the possibilities as well as the challenges of blockchain technology in the IoT context, because:

  • Conceptually, blockchain technology is a good match for IoT scenarios. IoT applications are by definition distributed and call for devices to interact directly with each other rather than via existing centralized models.
  • Blockchain has the potential for improved IoT features, cost-efficiency, and compliance. Blockchain is not an end in itself, but forms the basis for applications, including potentially smart contracts, which support specific IoT processes.
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The AT&T Merger With Time Warner Opens A New Chapter For The Telco Industry

With Laura Koetzle

On October 22, 2016, AT&T announced its intention to acquire Time Warner for an equity value of $85.4 billion. The deal is essentially about the combination of quality content and content distribution, as it transforms AT&T into a content producer and owner — rather than just a distributor of content. Many telecom regulators restrict revenue growth opportunities for telcos in highly regulated telco markets. As a result, telcos are increasingly looking outside their markets for growth opportunities. This deal is evidence of this trend.

Telco CIOs Must Become More Strategic To Prepare For The Content Opportunity

The AT&T-Time Warner deal deserves special attention by telco CIOs. The deal needs to be seen against a challenging backdrop for the telco industry, where revenue growth from traditional revenue sources is hard to come by. Yes, AT&T already operates the largest US pay-TV business through its ownership of DirecTV. The Time Warner deal — should it materialize — would enable AT&T to offer its own premium entertainment programming to its pay-TV, mobile phone, and internet customers. AT&T’s intention to acquire Time Warner opens a new chapter for telcos, because the combination of quality content and content distribution potentially helps telcos to:

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Brexit Makes Customer-Focused Innovation Imperative

Photo: Cover of Panorama magazine Italia

While uncertainty continues, focusing on innovation is your best chance of success. British Prime Minister Theresa May has repeatedly said, "Brexit means Brexit." This statement ensures that every business operating in the UK will experience an uncertain and volatile market environment for some time. In our conversations with CIOs and chief technology officers (CTOs) since the Brexit vote, Forrester has retained its view that only if companies retain a focus on customers will they ensure growth and innovation, especially in times of uncertainty. All CIOs and CTOs at businesses operating in the UK should:

  • Make the business case that innovation can help their firms deal with uncertainty. Top management will be distracted by many short- term tactical considerations relating to Brexit. Make the case that innovation will move you closer to your customers and help to deal with underlying uncertainty.
  • Partner with their risk managers. Developing innovations that rely on customer and machine data will expose businesses to regulatory and compliance risks. Plan your business technology and innovation strategies with the risk manager on your side.

The report Brexit Makes Customer-Focused Innovation Imperative summarizes Forrester’s recent discussions and outlines how companies can best drive their innovation in the wake of Brexit.

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Nokia “Connects” Network Services To Customer Experience

Nokia’s services division recently hosted an analyst event where it elaborated on the interlinkage between network services and network infrastructure. Of course, network services matter to businesses and telcos because they help technology managers to better manage infrastructure complexity and to modernize network infrastructure with the goal of making networks faster and more reliable. However, there are more fundamental implications:

  • Network services add value to products and open new business areas. Customers want features and services that are relevant to them in the immediate context of their needs and desires. As more products become connected, network services will play a critical role in developing and enhancing such features. Moreover, network services play a central role in driving augmented and virtual-reality solutions in outdoor conditions, such as those already used in manufacturing by Caterpillar or in construction by BAM Group.
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Bosch And SAP Agree A Strategic Internet Of Things (IoT) Partnership To Facilitate Data Orchestration

I recently attended an event at which Bosch and SAP announced a major partnership to more closely align their respective cloud and software expertise around the industrial internet of things. This partnership underlines the fact that SAP and Bosch are prepared to significantly transform their respective business models to generate new value for their customers. The SAP and Bosch partnership focuses on two main items:

  • SAP will add SAP Hana database to Bosch IoT Cloud. Bosch customers will be able to access SAP Hana in the Bosch IoT Cloud with the goal of processing large quantities of data in near-real time. This makes it easier for Bosch’s customers to run analytics of IoT sensor data in the SAP Hana environment.
  • Bosch will make its IoT microservices available to SAP on SAP Hana Cloud Platform. This move will facilitate the safe connection of different devices and components, including vehicles, manufacturing machinery, and smart tools, with open platforms. Customers will benefit from a broad range of emerging services to support their business processes.
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