Visionary Chinese Banks Show How Customer-Oriented Architectures Support Innovation

Charlie Dai

Five of the top 10 companies in the latest Forbes Global 2000 company list (published in May) are from China, and four of them are commercial banks. If you think this is only due to China’s massive consumer base, and that you can easily apply your global innovation strategy to the Chinese market, you’re almost certainly wrong. Enterprise architecture (EA) professionals at companies doing business in China should take a look at what the country’s banking and financial services industry (BFSI) is doing to enable customer-centric innovation.

I recently published two reports focusing on China’s BFSI. In these reports, I analyzed the Chinese banking landscape and the business challenges banks face, described a systematic approach to innovation that EA pros should consider when planning their transformations, and shed light on how they use both mainstream and emerging technologies to unleash the power of innovation around products, operations, and the organization. Some of the key takeaways:

  • Chinese banks suffer from their own customer experience issues. As a longtime monopoly, China’s BFSI has suffered from inefficiency, quality problems, and an uncompetitive ROI — and thus can no longer meet the high bar for customer satisfaction in the age of the customer. EA pros must find innovative ways to resolve these issues.
  • Internet companies and regulatory changes are challenging BFSI players. Visionary Internet companies like Alibaba and Tencent have launched financial services products, including innovative products like Yuebao, that are disrupting China’s BFSI with higher profits, lower barriers to entry, and better flexibility. The government is also making regulatory changes that will open up the market and intensify competition.
Read more

Are Data Governance Tools Ready for Data Governance?

Michele Goetz

An IT mindset has dominated the way organizations view and manage their data.  Even as issues of quality and consistency raise their ugly head, the solution has often been to turn to the tool and approach data governance in a project oriented manner.  Sustainability has been a challenge, relegated often to IT managing and updating data management tools (MDM, data quality, metadata management, information lifecycle management, and security).  Forrester research has shown that less than 15% of organizations have business lead data governance that is linked to business initiatives, objectives and outcomes.  But, this is changing.  More and more organizations are looking toward data governance as a strategic enterprise competence as they adopt a data driven culture.

This shift from project to strategic program requires more than basic workflow, collaboration, and data profiling capabilities to institutionalize data governance policies and rules.  The conversation can't start with data management technology (MDM, data quality, information lifecycle management, security, and metadata management) that will apply the policies and rules.  It has to begin with what is the organization trying to achieve with their data; this is a strategy discussion and process.  The implication - governing data requires a rethink of your operating model.  New roles, responsibilities, and processes emerge. 

Read more

Can You Afford To Ignore The Artificial Intelligence Wave?

Michele Goetz

Recent news of a a computer program that passed the Turing Test is a great achievement for artificial intelligence (AI).  Pulling down the barrier between human and machine has been a decades long holy grail pursuit.  Right now, it is a novelty.  In the near future, the implications are immense.

Which brings us to why should you care.

Earlier this week the House majority leader, Eric Cantor, suffered an enormous defeat in Virginia's Republican primary by Tea Party candidate David Brat.  No one predicted this - the polls were wrong, by a long shot.  Frank Luntz, a Republican pollster and communication advisor, offered up his opinion on what was missing in a New York Times Op-Ed piece - lack of face-to-face discussions and interviews with voters.  He asserts that while data collection was limited to discrete survey questions, what it lacked was context.  Information such as voter mood, perceptions, motives, and overall mind set were missing. Even if you collected quantitative data across a variety of sources, you don't get to these prescient indicators.  

The new wave of AI (the next 2 - 5 years) makes capturing this insight possible and at scale.  Marketing organizations are already using such capabilities to test advertising messages and positioning in focus group settings.  But, if you took this a step further and allowed pollsters to ingest full discussions in person or through transcripts in research interviews, street polls, social media, news discussions and interviews, and other sources where citizen points of view manifest directly and indirectly to voting, that rich content translates into more accurate and insightful information.

Read more

Docker Will Disrupt Virtualization And Drive Cloud Adoption

Charlie Dai

On June 9, Docker.com announced that it will release version 1.0 of Docker, an open source platform that could automate the deployment of various types of applications as lightweight, portable, self-sufficient containers and run them virtually on any infrastructure. This announcement indicates that the platform is ready for commercial use, including lightweight, portable runtime support and packaging via Docker Engine and cloud services for application sharing and process automation via Docker Hub.

We talked to some early adopters of Docker, including global ISVs and local solution providers. We believe that Docker-based solutions will disrupt the server virtualization market segment and further drive the adoption of cloud because of their:

  • Technology advantages. Today’s componentized applications often rely on other components, applications, or services. For instance, your Ruby on Rails applications might rely on MongoDB as a persistence layer while using nginx as a web server. Each component might also have its own set of dependencies, which could conflict with each other. Docker can easily package the necessary dependencies and separate them within their own containers.
Read more

The Most Agile Banks

Craig Le Clair

Banks are burdened with sizable infrastructure, struggle to service traditional and emerging channels, are severely boxed in by increasing compliance demands, and are not particularly nimble — also due to overly seasoned business applications. At the same time, the banking industry is ripe for digital disruption, as banks’ traditional strengths of size and breadth aren’t sufficient to ward off a mix of alternate financial service digital disruptors such as Google, new digital banks, emerging payment networks, and traditional institutions like Wal-Mart entering this market.

Business agility will be their most fundamental strength and competitive weapon. But how do leading banks today compare on agility? We surveyed 30 banks and determined that high performers excelled in market agility dimensions. We then ranked US banks using customer experience and product expansion scores. This report is due out this month so stay tuned.

PIM: MDM on Business Terms

Michele Goetz

Along with Peter Sheldon in our eBusiness and Channel Strategy role, we just released the Forrester's Wave on Product Information Management.  I'm really exited about this report for two reasons:

  1. Clients now have a report that helps them make more informed choices about selecting a PIM solutions.  PIM is not always a well understood  master data solution option for Enterprise Architects.  Questions arise about, do I need PIM or MDM or do both?  Aren't PIM and Product MDM the same? How does this fit in my architecture? This report takes away the confusion, answers these questions. It gives insight into how vendors satisfy PIM demands, differentiate from MDM and operate in hybrid scenarios.
  2. The first Forrester Wave collaboration across the Business Technology and Marketing and Strategy groups.  In the age of the customer, tighter collaboration between business decision makers and technology management professionals is critical.  This wave addresses both perspectives providing the business requirements for marketing and product professionals while also addressing the technical questions that are important when selecting tools.  Yes, business and technology management can work together, be on the same page, and produce great results!
Read more

MDM: Highly recommended, still misunderstood

Michele Goetz

Master data management is a hot topic.  And, this is at times surprising to me because the noise of big data is deafening.  Big data is certainly sexier.  MDM is like mom nagging to clean up the room - necessary, but a total buzz kill.

Here is some of the anecdotal evidence that is raising my eyebrows:

  • Our Forrester Wave for MDM was at the top of most read reports during Q1.  
  • MDM inquiries from clients keep me very busy.  
  • Vendors see MDM as a key growth area in their portfolios.
  • Consultancies are consistently pointing to client gaps in data governance and data architectures that point toward a master data problem.  
Read more

Cisco Is Transforming Its DNA Toward Customer Experience

Charlie Dai

In the Cisco Collaboration Connection event for Asia Pacific early this week, I had the opportunity to try newly designed Cisco collaboration products, as well has have in-depth discussions with senior executives from Cisco.  And  I was also able to observe the response from the partners and customers I met from across APAC, including China, India, Singapore and Indonesia, and exchange my thoughts with them as well. I feel that the DNA of Cisco is changing, from technology-centric toward customer experience focused, starting with the collaboration business. Here is evidence beyond slogans on their Power Point slides.

  • Design. When people talk about the design of Cisco’s collaboration products, usually it would be with words like high-tech, standardized or professional, but seldom about fashionable design, beauty, simplicity, or ease of use – attributes  typically used to describe the leading consumer electronic appliances from Apple or Samsung. Now, with the latest product announcements, it’s totally different, and Cisco has won several Red Dot industrial design awards in 2014.
Read more

Survey is Open - Call for Participation - 2014 ECM and Archiving Trends

Cheryl McKinnon

Forrester's 2014 online survey for Enterprise Content Management (ECM) and Content Archiving is open! Take this opportunity to provide your perspectives on the vendors, the challenges, and the opportunities you are see in these technology markets.

Why is your input important? Forrester uses this data to:

  • Keep our Content Management Playbook fresh and relevant. Clients who are embarking on a new or updated content initiative rely on these interconnected reports to understand the landscape, market direction and build out the business cases, continuous improvement techniques and org charts to succeed.
  • Track the trends and emerging use cases for ECM and archiving. We see growth-oriented enterprises using both data and content to support customer acquisition and retentention strategies, innovation programs and develop operational excellence. How are these new requirements being met?
  • Educate clients and non-clients alike via research, blog posts, webinars and industry presentations. This survey data helps us validate and verify where ECM and archiving markets are evolving, and help you make better investment decisions.

Please take this survey if you are a practitioner inside private or public sector, and make or influence decisions around ECM and/or archiving platforms. Survey participants will be provided with the survey results summary slide deck, if desired.

Vendors and consultants - we encourage you to circulate this survey to your clients and prospects!

Forrester thanks you for your participation!  Link: https://forrester.co1.qualtrics.com/SE/?SID=SV_3TS5F96nDBMaH0V

Business Agility Starts With Your People: Keynote At Forrester London Forum

Craig Le Clair

The ability to sense and execute on change are essential qualities of a digital business in today’s marketplace.

Don’t believe me? Consider this: 70% of the companies that were on the Global 500 list a mere 10 years ago have now vanished – unable to adapt. In those 10 years we’ve seen digital disruption change the business landscape. We’ve watched the Internet become pervasive, embraced cloud-based applications that update multiple times a year, acquired mobile devices that connect everywhere in the neighborhood and around the globe, and embraced information workers who use their own tools to do corporate work on their own time.

We recently surveyed 300 global businesses to dig deeply into how prepared – in the sense of being agile – they are for types of events and business changes that the new digital age will bring. And, our findings were not surprising. High performing organizations are flattening to deal with rapid change. They are using knowledge creation and dissemination to drive decisions lower in the organization, and redefining  the role of the CEO. Organizational agility, characterized by high awareness and execution in knowledge dissemination, change management and digital psychology agility dimensions, drives significant performance for enterprises.  

My keynote session at our Forum for Technology Management Leaders in London (June 12-13) on the topic will highlight organizations that have made market, organizational, and process changes based on digital strategies to become more agile, more productive, and grow revenues. I hope to see you there.