Digital Disruption To The Ultimate - I Should Have Taken The Michael Connelly Novel

Craig Le Clair

Vacation is a good time to read things that you can never get to while working. My list is quite long but I  scanned it  and took a copy of “The ZERO Marginal Cost Society” by Jeremy Rifkin to the beach. Now Forrester has a lot of focus on digital disruption, helping enterprises avoid being disrupted by new digitally based business models. We write about business agility, how to drive better customer experiences through mobile, social, and cloud. But we pretty much stop at what disruption means to an enterprise, as these are our clients.  

Jeremy Rifkin takes the digital disruption concept to its ultimate end state, and projects the effect on the entire economic system. He paints a somewhat murky but thought provoking picture of where this all leads.  The basic idea?  Digital alternatives, fueled by the Internet of things, big data, the sharing economy, 3D printing, AI and analytics, will drive the marginal cost of producing a product or service to near 0 and this disrupts the entire capitalist system. Established companies can't generate profit, emerging companies can only maintain temporary advantage, and people don’t have “real jobs” anymore. They ride the wave that he calls “the democratization of innovation” that works outside of traditional business and government.

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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.
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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.
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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.

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.
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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.

How Will The Data Economy Impact Enterprise Architects?

Gene Leganza
No self-respecting EA professional would enter into planning discussions with business or tech management execs without a solid grasp of the technologies available to the enterprise, right? But what about the data available to the enterprise? Given the shift towards data-driven decision-making and the clear advantages from advanced analytics capabilities, architecture professionals should be coming to the planning table with not only an understanding of enterprise data, but a working knowledge of the available third-party data that could have significant impact on your approach to customer engagement or your B2B partner strategy.
 
 
Data discussions can't be simply about internal information flow, master data, and business glossaries any more. Enterprise architects, business architects, and information architects working with business execs on tech-enabled strategies need to bring third-party data know-how to their brainstorming and planning discussions. As the data economy is still in its relatively early stages and, more to the point, as organizational responsibilities for sourcing, managing, and governing third-party data are still in their formative states, it behooves architects to take the lead in understanding the data economy in some detail. By doing so, architects can help their organizations find innovative approaches to data and analytics that have direct business impact by improving the customer experience, making your partner ecosystem more effective, or finding new revenue from data-driven products.
 
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Lexmark To Buy Readsoft - Consolidation Continues In Capture And Content Management Market

Craig Le Clair

Lexmark’s acquisition of Readsoft is part of a continued effort at Lexmark to balance mature and stable printer HW revenues with faster  growing software and services businesses.  This acquisition is one of many in the last two years, and is consistent with consolidation in the mature capture and content market.  And it works for me.

Readsoft provides more software depth in Europe then Lexmark has, and is stronger than Lexmark in financial process automation (purchase –to-pay and order-to cash although mostly the former) with strong integration with SAP and other ERP vendors. Perceptive Software, the core technology within  Lexmark’s software division, is  more content then transaction oriented, a strength that  Readsoft adds.  

There is also synergy across analytics.  For example, Brainware, acquired by Lexmark, is very strong in analytics for forms processing – one of these being invoices.  This should add smarts to ReadSofts front end. 

As always, success is determined by how integration talks place over time and whether an integrated platform can emerge with minimal customer disruption.  It would be good to see acquisiions in the services area to more quickly balance revenue with the tradition business. 

Federal Government Releases Health Care Provider Reference Architecture

Skip Snow

On April 3rd 2014, the federal mandate to publish an IT Risk framework for Healthcare IT was fulfilled with the publication of the "FDASIA Health IT Report: Proposed Strategy and Recommendations for a Risk Based Framework."

As per the FDA press release "the diverse and rapidly developing industry of health information technology requires a thoughtful, flexible approach,” said HHS Secretary Kathleen Sebelius. “This proposed strategy is designed to promote innovation and provide technology to consumers and health care providers while maintaining patient safety. Innovative health IT products present tremendous potential benefits, including: greater prevention of medical errors; reductions in unnecessary tests; increased patient engagement; and faster identifications of and response to public health threats and emergencies. However, if health IT products are not designed, implemented or maintained properly, they can pose varying degrees of risk to the patients who use them. The safety of health IT relies not only on how a product is designed and developed, but on how it is customized, implemented, integrated and used" 

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