CPG companies are a great example of what Business Agility really means in “The Age of the Customer”. They produce tissues, disinfecting wipes and cold remedies are finding new ways to predict and chase outbreaks around the country.
Forrester is putting significant effort into Business Agility – what it is, how it relates to the success of companies within industries, and what foundations business agility is built on. Our recent study of agility and performance found that high-performing companies were building agility into their core business. (see recent Agility PerformanceReport)
No where does this seem more true than CPG industry. CPG has been innovating in - Market Responsiveness - one of forrester's 10 dimensions of business agility. This means simply understanding what’s going on in your market and shifting strategies and resources to respond. In the CPG context, it means to figure out when people are getting sick and ramp up marketing, and then reduce expenditure when people are well.
This morning Citrix announced the acquisition application mobilization vendor Framehawk for an undisclosed sum as the battle for high performance for corporate Windows apps on mobile devices rages on. Here’s my take:
It's a good acquisition for Citrix and in turn for I&O pros for 3 reasons:
Some of Framehawk's technology will be additive to Citrix's enterprise portfolio. Specifically, Framehawk's framebuffering protocol - called Lightweight Framebuffer Protocol, or LFP - is designed for mobile carrier networks like 4G/LTE where there is often highly variable latency, loss, and jitter. Citrix will add it to their arsenal alongside HDX to improve the end user experience of server-hosted Windows applications on mobile devices for XenDeskop App Edition and XenDesktop.
It will be a boon for DaaS providers' customer experience. Citrix is in the business of building a Desktops-as-a-Service (DaaS) platforms for service providers. One of the barriers to the success of DaaS in the enterprise, and a potential source of value for service providers, is the user experience on mobile devices over mobile networks. Another player to watch the remote desktop/app protocol space for mobile networks is RapidScale.
It's a competitive take-out play as well. Delivering Windows apps from the datacenter to both corporate and employee-owned desktops, laptops and mobile devices is what Citrix does - it's their place in the technology universe. Framehawk's technology approach, while expensive, has some advantages. Citrix was probably starting to see them in more deals as competition.
Last month, GovLabs, a research organization at New York University released a beta version of its Open Data 500 project. The study set out to profile US companies that use open data to generate new business and develop new products and services. Not all of the companies identified have been profiled but the list of 500 provides a wide range of both existing companies and start-ups that benefit from the use of open data.
While the start-ups are interesting illustrations of innovation and economic value-creation, the presence of big, existing companies illustrates how data transforms business.
Insurance companies such as AllState and Allianz no longer only insure people and property.
On January 6, Microsoft announced their intentions to purchase Paraturefor a reported $100M. This event is a good thing all around. Net, net, it plugs some holes in the MS Dynamics CRM product, and gives Parature, a 13 year old company, a viable exit strategy.
Microsoft Dynamics is a strong CRM product for customer service. Forrester considers it a leader in our most recent CRM Suites Customer Service solution wave. Microsoft Dynamics is also doing well. At their recent analyst event, they communicated the following statistics: 12% revenue growth in FY13; Dynamics AX and CRM growing by double digits worldwide and 30% in the Americas and Asia; and CRM Online growing by 80% in FY13, with two out of every three new customers opting for cloud. Microsoft Dynamics has 359,000 customers and 5 million users, while Microsoft Dynamics CRM has 40,000 customers and 3.5 million users. Read more about this event here.
Today's news of Verint'sintent to acquire KANA ushers a new wave of consolidation in the greater customer service space. Today’s customer service technology ecosystem is complex and comprised of a great number of vendors that provide overlapping and competing capabilities. I’ve previously blogged about what these critical software components are. In a nutshell, the core capabilities needed for customer service include:
Routing and queuing: providing the ability to route and queue an inquiry – whether voice, digital (ex. email, chat), or social to an agent or a group of agents
Agent desktop/case management: Allowing cases to be created, workflowed, and resolved.
Workforce management and optimization: Allowing agent interactions with customers to be monitored for quality; allowing agent scheduling, forecasting, performance management, coaching, learning etc.
Forrester just published its “India Tech Market Outlook: 2014” report; here’s a summary. We expect the Indian economy to start recovering from the tough situation it faced in 2013. It will start picking up (albeit at a slower rate) in 2014 thanks to good monsoons, an uptick in exports due to the weakening of the rupee, and huge infrastructure projects in public transportation, housing, agriculture, and farming that we expect to take off once a new central government is in place. As a result, we’ve marginally increased our 2014 forecast from 7.4% to 8% in local currency. But the biggest threat to India’s economic outlook is political instability after the national elections, which could have a long-term economic impact.
The three most important highlights from the report:
Customer obsession will take center stage for technology spending. The increasing demands of digital customers are redefining business. Recent Forrsights data indicates that Indian CIOs’ top business priority is to address the rising expectations of customers and improve customer satisfaction; 87% consider it a high or critical priority. Business leaders want to leverage technology to better engage digitally enabled constituents, fundamentally shifting how firms interact with customers.
Las Vegas – Hello from the Consumer Electronics Show (CES) 2014, an industry gathering point for technology vendors, retailers, partners, media, and industry analysts. Like many, I’m here to meet with the innovators, witness demonstrations, and assess the state of the technology industry in 2014 (and beyond).
As they were at last year’s conference, wearables will be a very hot topic at CES 2014. But in the fast-moving world of technology, a year is a long time. In 2014, wearables will graduate to their 2.0 state. To understand this 2.0 iteration, Forrester released two new reports that clients can read and download. The first is an overarching view of the enterprise aspect of wearable technology, The Enterprise Wearables Journey. The second focuses on wearable health, Building A Fitter Business With Wearable Technology. Let me offer a sneak peak into why Wearables 2.0 is a critical topic.
In November 2013, we published a report laying out what will be the key points of differentiation between Google Apps and Microsoft Office 365 by 2016. At the core of this report is a simple message: The value of these cloud collaboration suites isn't inexpensive email; their value is in their role as an interaction point for your business ecosystem. And at the center of each of these interactions is content of some sort -- contracts, marketing collateral, product specifications, customer records, and more. As more of this content lands in Google Drive and SkyDrive Pro, the market will reward the vendor that makes it easiest for information workers to author content, share it with others, manage its use and distribution, and be aware of any changes to this content. We call this combination of capabilities content services.
When I interviewed clients for a recent telecom sourcing best practices report, I heard a recurring refrain: “We need to drive down costs.” Both CIOs and sourcing and vendor management (SVM) professionals measure the health of their department with the amount of annual cost savings they can achieve. While this is a laudable metric, over time it can skew SVM pros’ perspectives and cause them to miss an opportunity to provide value to the business in the form of a vital “always-on” service.
SVM pros should:
Accept that cost savings are limited and short-term. Telecommunications is highly regulated in Asia Pacific; local competition is limited and governments own significant stakes in incumbent telcos. While cost savings can be had, they will diminish over the lifespan of a contract. SVM pros must understand how to work with lines of business and suppliers to create more value for the organization.
Focus instead on always-on service availability. Firms must focus on the fundamentals: ensuring that their communications services push toward always-on service availability. Getting the right price for services is important, but SVM pros in Asia Pacific must align business needs to service sourcing and ensure that the service delivers the expected value in terms of availability and quality.
Engender trust with providers with long-term commitments. View service providers as long-term partners; this will take the uncertainty out of the relationship and engender trust. One company was happy to lock in a five-year rental with an equipment supplier, eliminating a source of business risk in a volatile Asian economy. Focusing on long-term contracts gives providers the impetus to serve you well.
The way we deploy software is changing. Our research and others shows that enterprises are moving away from on-premise apps. and moving to private and public cloud offerings. But here is the basic question that is seldom asked. When a company deploys to the cloud does that boost revenue and returns to stockholders? Are high performing companies separating from low performers by their knowledge of and use of cloud technologies? Our recent Business Agility study says clearly that they are not.
Let me give some context for this statement. Forrester is putting significant effort into Business Agility – what it is, how it relates to the success of companies within industries, and what foundations business agility is built on. We’ve identified the three types of agility that companies must develop -- Market, Organizational, and Process agility – and evaluate ten separate dimensions that make them up. We found out which of the ten dimensions were the most important, defined as driving growth in revenue and profit (see the Agility Performancereport).
And here’s the point. Infrastructure Elasticity – which is our agility dimension for all things cloud, accounted for almost no difference in enterprise performance. Enterprises aggressively embracing cloud solutions did not perform better than their peers. In fact in some industries, they performed worse.