Why Do We Let Software Sales Reps Behave Like Tourist Souvenir Hawkers?

Duncan Jones

I’ve just had a negotiation lesson from Number-one-Daughter, who has been studying in China for a year. I’ve just returned from beautiful, vibrant Beijing  (北京) where my wife and I met her, to see the city and to help her get her luggage home (which explains the 6 pairs of ladies’ shoes in my suitcase and makeup in my carry-on — at least, that’s my story and I’m sticking to it).

Chinese souvenir stall

Author and wife on the Great Wall of China

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US Q2 2011 GDP Report Is Bad News For The US Tech Sector, But With Some Silver Linings

Andrew Bartels

The US Department of Commerce released preliminary Q2 2011 GDP data this morning (National Income and Product Accounts -- Gross Domestic Product: Second Quarter 2011 (Advance Estimate); Revised Estimates: 2003 through First Quarter 2011), and there was not much good news in the numbers.  First, US real GDP growth came in at a weaker than expected 1.3% (see Table 1).  Equally bad, prior quarters' growth was revised downward -- Q1 2011 down to 0.4% from 1.9% earlier, and Q4 2010 down to 2.3% from 3.1% earlier.  Given the negative impact of the deadlock on raising the US Federal debt ceiling -- even if a default is avoided at the last minute -- it is hard to see US real GDP growing faster than 2% in Q3 and Q4 2011, and very possibly not much more than 1.5%.

Table 1, US Real GDP Growth Rates, Before and After July 29, 2011 revisions

 

Real GDP, annualized growth rate from prior quarter

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

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BI Vendors Have To Eat Their Own Dog Food

Boris Evelson

Would you trust a car salesman who’s not driving the type of car he’s trying to sell you? Would you trust a nutritionist or a dietitian who’s not in a good shape? Probably not. There are two things that I suggest we all ask of BI vendors. Ask if they:

  • Use their own BI tools to run their company. Next time you interview a BI vendor, ask for a proof that their own CxOs and all other strategic and tactical decision-makers are using their own tools. I know of some cases where they don’t. How can a vendor convince you to buy its solutions if it hasn’t convinced its own people?
  • Adhere to the same best practices they suggest you implement using their tools/solutions. Transparency is one of them. One of the top use cases for enterprise BI is transparency: full visibility into companies processes, people, policies, rules, and transactions.
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Standalone Knowledge Management Is Dead With Oracle's Announcement To Acquire InQuira

Kate Leggett

Its exciting news to see Oracle announce its intention to acquire InQuira. We have been waiting for this news for a long time. The reasons are multifold:

  • Today’s contact center ecosystem is complex, and comprised of multiple vendors who provide the critical software components. Read my blog post on what these critical software components are. Customers are looking for a simpler technology ecosystem to manage from both a systems perspective and a contractual perspective.
  • Suite solutions, available from unified communications (UC), CRM, and workforce optimization (WFO) vendors, are evolving and include comprehensive feature sets. These vendors have either built these capabilities out or acquired them via M&A activity. And we expect more M&A to happen.
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Forrester Will Lower Its Tech Market Forecast By One-To-Two Percentage Points, Depending On Federal Debt Ceiling Outcome

Andrew Bartels

On Tuesday, we were ready to publish our mid-2011 global IT market forecast.  It projected 7.4% growth in the US IT market in 2011, and 10.4% in 2012.  Global growth in US dollars was forecast at 10.6% in 2011 and 7.6% in 2012, with the dollar rebounding in 2012 from its weakness in 2011;  measured in local currencies to eliminate currency fluctuations, growth was projected to be 7.8% in 2011 and 9.1% in 2012.  Our definition of the IT market included business and government purchases of computer and communications equipment, software, and IT consulting and outsourcing services -- it did not include their purchases of telecommunications services, which are declining in the US and growing slowly globally.

Our forecast did recognize three threats to economic growth, and thus three risks to our forecast: 1) a failure to reach a sensible resolution to raise the US debt ceiling and start on a path to lower budget deficits; 2) a failure of European governments to reach a sensible resolution to the Greek debt crisis that lowered the Greek debt burden and reduced the risk of a broader debt crisis that included Italy and Spain; and 3) overreaction by China and India to rising inflation that reduced their growth. 

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Is Marketing The Biggest Opportunity For IT Since The Internet?

Nigel Fenwick

In today’s fast-paced global economy, examples of how empowered customers and citizens use social technology to influence everything from brands to governments are all around us. The Arab Spring clearly shows the ability of technology to empower people. In this new digital age, marketing teams must react at the speed of the market: Product development life cycles that used to last many years are compressed into months or weeks; customer service expectations have moved from same-day response to instant response; public relations snafus must be handled in minutes rather than days; marketing campaigns are adjusted in real time based on instant feedback from social media. In this new era, mastering customer data becomes the key to success and, in my opinion, represents the biggest opportunity for IT to impact business results since the dawn of the Internet.

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How Are You Reacting When New, Disruptive Products Come Out?

JP Gownder

We talk to product strategists in a wide variety of industries. Regardless of the vertical industry of their companies, they tell us that the release of new, disruptive products -- like Apple's iPad -- changes their relationships with their customers. Oftentimes, nearly overnight.

Whether their product comes in the form of “bits” (content, like media, software, or games) or “atoms” (physical products, like shoes, consumer packaged goods, or hardware), consumer product strategists must navigate a world filled with a dizzying array of new devices (like mobile phones, tablet computers, connected TVs, game consoles, eBook readers, and of course PCs). We call this proliferation of devices the Splinternet, a world in which consumers access the digital world across a diverse and growing number of hardware and platforms. And product strategists have to react by developing new apps, by crafting digital product experiences, and by rethinking their product marketing.

Delivering digital products across the Splinternet isn’t easy: It requires understanding -- and acting upon -- an ever-changing landscape of consumer preferences and behaviors. It also requires reapportioning scarce resources -- for example, from web development to iPad or Android development. Yet product strategists who fail to contend with newly disruptive devices (like the iPad or Xbox Kinect) will find themselves in danger of being left behind -- no matter what industry they’re in.

We'd like to invite product strategists to take our super-quick, two-minute survey to help us better understand how you are reacting to disruptions caused by the Splinternet: 

UPDATED: THE SURVEY IS NOW CLOSED

Thank you!

Agile Business Intelligence Solution Centers Are More Than Just Competency Centers

Boris Evelson

By Boris Evelson and Rob Karel

Our latest BI solution center (BISC, which in our definition is more than a BICC/BI COE) report is now live on the Forrester website. Here’s a brief summary.

Forrester firmly believes that tried and true best practices for enterprise software development and support just don’t work for business intelligence (BI). Earlier-generation BI support centers — organized along the same lines as support centers for all other enterprise software — fall short when it comes to taking BI’s peculiarities into account. These unique BI requirements include less reliance on the traditional software development life cycle (SDLC) and project planning and more emphasis on reacting to the constant change of business requirements. Forrester recommends structuring your BISC along somewhat different lines than traditional technical support organizations.

Earlier-generation BI support organizations are less than effective because they often

  • Put IT in charge
  • Remain IT-centric
  • Continue to be mostly project-based
  • Focus too much on functional reporting capabilities but ignore the data
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Verint + Vovici: Another Example Of Market Consolidation In The Contact Center Space

Kate Leggett

Contact centers for customer service are a nightmare in terms of the complexity of the technologies. At a high level, to serve your customers, you need to:

  1. Capture the inquiry, which can come in over the phone, electronically via email, chat, or SMS, and over social channels, like Twitter, Facebook, or an interaction escalated from a discussion forum.
  2. Route the inquiry to the right customer agent pool to address it.
  3. Create a case for the inquiry that contains its details and associate it with the customer record.
  4. Find the answer to the inquiry; this can involve digging through different information sources like knowledge bases, billing systems, and ordering databases.
  5. Communicate the answer to the inquiry to the customer.
  6. Append case notes to the case summarizing its resolution, and close the case.

You want to make sure that your agents deliver answers in a consistent way and to make it easy for your customers to find answers themselves. To do this, you need to invest in:

  • A knowledge base for your agents. You also need to then expose a subset of the content to your customers via a web self-service portal.
  • A discussion forum where your customers can share information and escalate issues to a customer service agent.
  • Some type of process guidance to lead agents through complicated scripts so that they deliver service in a reproducible way.

You also need to understand what expectations your customer base has regarding your service offering by:

  • Surveying your customers
  • Listening to their sentiments on social media sites
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Recent Benchmarks Reinforce Scalability Of x86 Servers

Richard Fichera

Over the past months server vendors have been announcing benchmark results for systems incorporating Intel’s high-end x86 CPU, the E7, with HP trumping all existing benchmarks with their recently announced numbers (although, as noted in x86 Servers Hit The High Notes, the results are clustered within a few percent each other). HP recently announced new performance numbers for their ProLiant DL980, their high-end 8-socket x86 server using the newest Intel E7 processors. With up to 10 cores, these new processors can bring up to 80 cores to bear on large problems such as database, ERP and other enterprise applications.

The performance results on the SAP SD 2-Tier benchmark, for example, at 25160 SD users, show a performance improvement of 35% over the previous high-water mark of 18635. The results seem to scale almost exactly with the product of core count x clock speed, indicating that both the system hardware and the supporting OS, in this case Windows Server 2008, are not at their scalability limits. This gives us confidence that subsequent spins of the CPU will in turn yield further performance increases before hitting system of OS limitations. Results from other benchmarks show similar patterns as well.

Key takeaways for I&O professionals include:

  • Expect to see at least 25% to 35% throughput improvements in many workloads with systems based on the latest the high-performance PCUs from Intel. In situations where data center space and cooling resources are constrained this can be a significant boost for a same-footprint upgrade of a high-end system.
  • For Unix to Linux migrations, target platform scalability continues become less of an issue.