Digital transformation will fundamentally affect all aspects of business and society, which makes it a key theme not only for business leaders and CIOs but also for governments. Over the past few years, several governments across Europe, as well as the European Union (EU) itself, have each developed their own respective initiative to address the opportunities and challenges that come with digital.
However, from the CIO’s perspective, these digital agendas often fail to meet the requirements that businesses encounter as part of their digital transformation projects. While the digital agendas emphasize infrastructure and regulatory initiatives such as broadband coverage and Net neutrality, CIOs and their business partners would also benefit also from a focus on “soft issues,” such as promoting an interdisciplinary approach in university education and driving digital innovation across industry sectors. We believe that:
Governments recognize the digital transformation of businesses and society . . . Governments across Europe, as well as the European Commission of the EU, have recognized the importance of digital transformation to their constituencies and citizens. Various digital agendas have been developed and rolled out over the past few years with great fanfare. But in the end, most digital agendas remain high-level discussion papers.
. . . but governments underestimate the magnitude of digital transformation. Most digital agendas lack any real insights about broader business requirements for being successful in the digital economy — let alone any technological insights. Digitization is treated like one of many initiatives rather than the overarching theme for business and society.
An inquiry call from a digital strategy agency advising a client of theirs on data commercialization generated a lively discussion on strategies for taking data to market. With few best practices out there, the emerging opportunity just might feel like space exploration – going boldly where no man has gone before. The question is increasingly common. "We know we have data that would be of use to others but how do we know? And, which use cases should we pursue?" In It's Time To Take Your Data To Market published earlier this fall, my colleagues and I provided some guideance on identifying and commercializing that "Picasso in the attic." But the ideas around how to go-to-market continue to evolve.
In answer to the inquiry questions asked the other day, my advice was pretty simple: Don’t try to anticipate all possible uses of the data. Get started by making selected data sets available for people to play with, see what it can do, and talk about it to spread the word. However, there are some specific use cases that can kick-start the process.
Look to your existing customers.
The grass is not always greener, and your existing clients might just provide some fertile ground. A couple thoughts on ways your existing customers could use new data sources:
Cloud and the digital business imperatives you face in 2015 are the external forces driving this transformation. What it means for your internal organization is now's the time to get serious about service design and service delivery. As Glenn, the research director guiding this playbook, says:
"Your future lies not in managing pockets of infrastructure, but in how you assemble the many options into the services your customers needs. Our profession has been locally brilliant, but globally stupid. We’re now helping you become globally brilliant. We call this service design, a much broader design philosophy rooted in systems thinking. The new approach packages technology into a finished “product” that is much more relevant and useful than any of the parts alone."
In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?
Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions. Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market. In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
I have a love/hate relationship with "technical debt". Having covered apps modernization, rationalization, and portfolio management at Forrester for more than a decade, I have a keen appreciation for the concept of technical debt - in all its permutations.
So I love the term for the sentiment it expresses about the need for change:
As we have modernized applications over the past 4 decades, we have "kicked the can" down the road far too many times - opting for expediant change over "refactoring to make it right"
Within any mature single app, technical debt spawned by years of compromise can accumulate to daunting levels
The debt eventually reaches the point of becoming a self-fulfilling prophecy - today's debt is too big to tackle, so we kick it down the road and watch it grow out of control
Across the entire apps portfolio, the accrued debt cripples firms by gobbling up huge percentages of the available business technology (BT) spend
As we rush to build out customer facing and mobile apps to address the age of the customer, the technical debt within the systems of record act like an anchor on change velocity - at both the app AND portfolio levels
And I hate the term because well-intentioned techies wield it like a bludgeon to pound business leaders with an urgency to act. But imagine for a moment how it sounds to business leaders, how they react to the term:
"If it's technical, then its your problem Mr App Dev leader, not mine - I'm a business leader"
"This debt you want to hand me ... YOU created it, YOU made technology decisions - it's your problem, don't try to hand me a bill to clean up YOUR mess"
When it comes to your Technology Management service catalog, are you lost in arguments on what to call certain categories of services? What are your service families and what is the next level of service elements? What are the definitions of the service elements? These questions are just the tip of the iceberg of current projects within I&O organizations in defining the rich and complex world of a technology management service catalogs. I&O teams are struggling to architect foundational service catalogs which will support the standardization and optimization efforts of their service offerings.
With that challenge in mind, Forrester created a I&O Technology Management Service Taxonomy - a collection of many service elements, organized by 13 service families. The research consists of a detailed spreadsheet based tool with a variety of service families, service taxonomies and definitions. The next steps are to understand the business services and capabilities which are enabled through these technology management services. Some business services and capabilities are similar from one vertical to another. Our next endeavor is to capture these services as well.
For several years, we have noted a shift in power from companies to customers. Customers call the shots; they can and do transfer their loyalty when they aren't catered to with engaging customer experiences. The age of the customer has reached the banking industry; as in other industries, banks must change the way they do business to move the customer center stage.
Thus, application development and delivery (AD&D) teams must work with their peers across the bank to develop and apply the technology, systems, and processes needed to win, serve, and retain customers, partnering with eBusiness executives leading digital banking initiatives to drive new digital innovations. And this is not just a minority movement: Forrester’s Financial Services Architecture Online Survey 2014 shows that close to 80 percent of financial services firms around the globe work on transforming their application landscape or plan to start doing so within the next two years.
To prepare for this transformation imperative, AD&D pros need to be aware of the key trends for banking applications; the emerging and accelerating architecture trends, products, and services; as well as their to-do lists for 2015, which you can learn more about in Peter Wannemacher's Predictions 2015 report. While some banks aren't yet ready to take full advantage of these trends, Forrester believes that AD&D teams must be aware of, learn from, and prepare for eight trends in 2015. Among them:
Two epic battles have been going on for decades in the world of Business Intelligence and Analytics. Who has the ultimate control of these domains, Business or Technology? And which in the grand scheme of things has a higher priority, customer facing vs. back office analytics? Well, in what Forrester calls the age of the customer (AOC), the results are in. Customer facing priorities trump back office priorities and business users rule. Battle fought and won. Period. End of story.
It should be no surprise to our readers that the top five predictions we picked for BI by triangulating our AOC and Agile BI research with client interactions and survey results are all about empowering business users with tools and applications to be self-sufficient, effective and efficient in their unrelenting quest to win, serve and retain customers.
#1 Managed BI Self-Service Will Continue To Close The Business And Technology Gap. Traditionally, technology management-driven enterprise BI and business user-driven, self-service BI have gone their separate ways, wrestling each other for scalability, a single version of the truth, and reduced operational risk versus agility, flexibility, and faster time-to-market. Forrester predicts that these two camps slowly by surely will learn how to live happily ever after in 2015 by deploying technologies, architectures, and best practices that allow technology management to monitor business-user-generated BI content and selectively productionalize it.