Optimizing Software Development Sourcing To Drive More Customer Value

Diego Lo Giudice

The past few years haven’t been kind to software developers. Having the equivalent of a US master’s in computer science and having spent the first 20+ years of my professional life developing mission-critical software products and applications, I have had a hard time adjusting to the idea that developing software applications is a cost to avoid or a waste of time for many CIOs and application development leaders. It seems to me that we have been giving more emphasis to contracts, legal issues, SLAs, and governance concerns but forgetting about how IT can really make a difference – through software development. 

Nevertheless, outsourcing kept increasing, and packaged apps exploded onto the scene, and software developers “outplaced” from enterprises. People started to believe they could get more value and good-quality software cheaper…but could they really?

With BT, digitalization, and customer centricity exploding, today is the perfect moment for application development leaders to review their application development sourcing strategy and align it to their BT strategy.

Why? Many reasons, including:

  1. Software is the most important enabling technology for business innovation.
  2. Clients use software every day. It’s become part of their life, and they enjoy the experience. Better software makes a better experience.
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May Force.com Not Be With You

Mike Gualtieri

Lack Of Infrastructure Portability Is A Showstopper For Me

Salesforce.com bills Force.com as "The leading cloud platform for business apps." It is definitely not for me, though. The showstopper: infrastructure portability. If I develop an application using the Apex programming language, I can only run in the Force.com "cloud" infrastructure.

Don't Lock Me In

Q: What is worse than being locked-in to a particular operating system?

A: Being locked-in to hardware!

In The Era Of Cloud Computing, Infrastructure Portability (IP) Is A Key Requirement For Application Developers

Unless there is a compelling reason to justify hardware lock-in, make sure you choose a cloud development platform that offers infrastructure portability; otherwise, your app will be like a one-cable-television-company town.

Bottom line: Your intellectual property (IP) should have infrastructure portability (IP).

Is Social Software Relevant To Information Workers?

TJ Keitt

I'm not saying anything shocking when I say enterprise social software, has been a hot topic over the last five years. The set of technologies designed to flatten corporations have spawned dedicated blogs, press, and conferences. And our surveys of content and collaboration professionals show businesses are embracing these technologies: 42% of firms are making new investments in Enterprise 2.0 software, and 46% are investing in team workspaces (on which social technologies often ride into the enterprise). So, obviously we're over the hump and well into this new social era of business, right? Well...not so fast.

I'll go out on a limb here and say that businesses are not more social - at least, not in the broad-based fashion people envisioned when we first started talking about Enterprise 2.0 in the heady days of the mid-2000s. How could it be? According to our recent survey of 4,985 US information workers, 28% of the workforce uses a social technology. While you may be thinking to yourself this is a good start, allow me a moment to point out some key differences between Enterprise 2.0 users and the rest of the workforce:

  • They're your highest paid employees. Over half of this group earns more than $60k a year, compared to just 36% of non-users.
  • They're the most educated members of the workforce. Sixty-five percent of this group has completed at least a 4 year college degree compared to 55% of the rest of the workforce.
  • They're the leaders in your office. It's not surprising to see 49% of this group are managers are executives given management's enthusiasm about social technologies. Just 31% of non-users are in similar positions.
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Forrester's First-Ever Application Development Forum

Mike Gualtieri

Johnny Depp is coming to Boston. So too are application development professionals like you. Depp will make a movie about Paul Revere's legendary midnight ride 236 years ago to warn the revolutionaries that the British were coming. Application development pros will arrive in Boston on September 22, 2011, to attend Forrester's first-ever Application Development & Delivery Forum.

Boston is a great city of revolutionary ideas and rich history. This is the inspiration for the conference we have put together for you. Our goal is simple: Provide a fantastic two-day event for application development pros to:

  • Hear from leaders who have successfully transformed app development to deliver more customer value more quickly.
  • Learn from expert analysts about the latest best practices and technologies to speed transformation.
  • Share new ideas with peers.
  • Become more valuable to their organization.
  • Help their organization become world class at application development and delivery.
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The Pit Of Despair Called Seat 54F, The MacBook Air, And Why People Are Bringing Them To Work

David Johnson

Most I&O professionals travel far less than the road warriors they serve, which means they could be missing an important personal connection with new forms of client computing. After years of lugging boat anchor-class laptops around and a broken shoulder from a skiing accident, I gave in last month and bought a new MacBook Air (yup, 13", i7, 4GB, 256GB SSD), and then spent the next month's worth of weekends getting it to work for my job. Here's why I did it, and why people in your firm are doing it too:

"Veev been vaiting for you," the Frau at the front of the 747 hissed as I stepped through the door with a sweat stain on my shirt roughly the shape of Alaska. Those of you who fly frequently on Star Alliance carriers may have noticed that Lufthansa is the only one that doesn't seem to care who you think you are on any other airline. I could be George Clooney (see "Up in the Air") with 10 million miles and a gold card from the chief pilot, and I'd still have to sit in a center seat -- 54F -- in the last row. No matter, it's where I always get to meet fun people like Ginny -- the wisecracking 101 year old grandmother from Wyoming, and Jim -- the head of desktop infrastructure for a large retail chain, who later became a customer.

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HP's Reinvention Around Software And Services Will Be A Tough Transition

John McCarthy

HP's big announcement yesterday that it was “exploring strategic alternatives for its PC and mobile businesses mobile devices discontinuing, exploring options for WebOS” to focus on software and services is a bold but extremely treacherous move. While the comparisons to IBM have been bandied about on the Web all day, in Forrester’s mind this is a very different time than when IBM began that shift almost 20 years ago. The market today is very different, making it much harder for HP to execute the pivot.

The services business, especially the outsourcing segment, has stalled out. There is no better example than HP’s own services business, which has shown negative growth over the last two fiscal years. It is becoming increasingly clear that IT shops think that pursuing a cloud strategy public or private is the way to keep control and not have to outsource.

The software business may be on the same brink of fundamental change as mobile and as a service combine to change the pricing, delivery model, and focus of innovation. There is also a fundamental shift away from spending on the traditional systems of record like ERP to systems of engagement with customers, partners, and the business decision-maker. The $10 billion Autonomy Corp deal is targeted at the analytics element that will underpin many of these systems of engagement. The analytics space is getting increasingly crowded as IBM, Accenture, and Deloitte seem to acquire an analytics software firm on a weekly basis.

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This Week's Economic And Tech News Points To A Tech Downturn in Europe, Slower But Still Positive Growth In US, And Boom In Asia

Andrew Bartels

Picking through economic news this week (French and German growth numbers; financial market turmoil; scattered US indicators) and the vendor announcements from Dell, HP, Lenovo, NetApp, and Salesforce.com, four trends emerge:

  1. European economies are headed for a recession, and European tech market is already in decline. Eurostat (The European Union statistical agency) announced on Tuesday, August 16, that real GDP in the 17 euro area countries and the 27 European countries both grew by just 0.2% in the second quarter of 2011 from the first quarter. Annualizing these growth rates to make them comparable with US GDP growth rates, the numbers were 0.8%. France's real GDP showed no growth, while Germany's real growth was o.4% on an annualized basis. These were sharp slowdowns from France's growth of 3.6% in Q1 and Germany's growth of 5.3%. With worries growing about a financial crisis hitting European banks as a result of potential losses on their holdings of Greek, Portuguese, Irish, Italian, and Spanish bonds, ongoing government austerity programs in these countries as well as the UK, and feeble EU efforts to deal with the problems, there is a high probability that Europe will slip into recession in Q3 and Q4 2011.
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The Emergence Of CXM Solutions, And Why The Term “WCM” Lives On

Stephen Powers

There has been a great deal of talk over the past few years about what acronym will replace WCM (web content management). Web experience management? Web site management? Web engagement management? Web experience optimization? The list goes on and on.

Certainly, the evolution of the WCM term makes sense on paper, since traditional content management functionality now only makes up a portion of the products that WCM vendors now offer. WCM vendors are also in the content delivery/engagement business, and are even dipping their toes into web intelligence. However, Forrester clients still overwhelmingly ask about “WCM” and that term isn’t going away any time soon.

But even without changing the acronym, it is time to start thinking about WCM beyond just managing content or siloed websites or experiences. Instead, we need to think of how WCM will interact and integrate with other solutions – like search, recommendations, eCommerce, and analytics – in the customer experience management (CXM) ecosystem in order to enable businesses to manage experiences across customer touchpoints.

How are we handling this convergence at Forrester? Several of us who cover various CXM products – like Brian Walker (commerce), Bill Band (CRM), Joe Stanhope (web analytics), and myself (WCM) – teamed up to outline what our vision of CXM looks like, including process-based tools, delivery platforms, and customer intelligence. We've created two versions of the report: one written for Content & Collaboration professionals and one for eBusiness & Channel Strategy professionals.

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A Reflection Of What I Learned At Cisco Live: Growing Up Isn't Easy

Andre Kindness

Even though CiscoLive was a month ago, I’m getting a lot of inquiry calls from clients asking me what I thought and what does Cisco’s megalaunch mean to them. I feel Cisco’s emerging out of their teenage years of taking things for granted and is getting down to business. But is it too late? I don’t think so, but Cisco has a lot of work ahead of them to win the hearts and minds of infrastructure and operations personnel. On some strong indicators that positive change is in action, I&O managers can hang their hats on Cisco in three areas:

  • Vision. If there is one attribute that customers can bank on, Cisco always delivers a vision and helps provide a road map for enterprises on what networking professionals should expect to see their networks support. In general, their visions provide a guide light on value beyond the sea of commodity issues: price, features, and speed.
  • Operations. Cisco’s drive toward consolidating its own operations and dissolving technology silos into services is in alignment with what enterprises need to do and where technology solutions must evolve. Cisco is blending teams into five areas: 1) core routing/switching innovation and optimization; 2) collaboration solutions ; 3) virtualization (including data center and cloud) technologies; 4) video as a primary communication medium and IT task; and 5) architecture — defining and delivering IT architecture for businesses and service providers. I&O managers can expect to see much more integrated and simplified solutions. This should help enterprises reduce the overhead associated with long deployment times and expensive services built on complicated solutions.
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Mastering Customer Data: The Next EA Opportunity – And Challenge

Alex Cullen

Several recent Forrester reports home in on what we call “The Age Of The Customer” in which firms must seek to become customer-obsessed to build differentiation and loyalty. Those firms that embrace this will ramp up investment in four priority areas: 1) real-time customer intelligence; 2) customer experience and customer service; 3) sales channels that deliver customer intelligence; and 4) useful content and interactive marketing. All these needs are technology-infused – wholly dependent on technology and in categories where technology is evolving rapidly. Underlying these investments is the need to master the flow of data about customers: capturing/collecting data about them, analyzing it, distributing to those points of engagement, and, finally, integrating the insights into the customer experience. 

Companies can’t succeed at doing this without a close partnership between the business areas leading the charge and IT. The rate of change of your customers, markets, business opportunities, and technology is simply too fast. Forrester is exploring this theme in our first CIO/CMO joint forum

The reality, though, is companies flounder at this marketing-IT partnership. They flounder because of:

  • More ideas than capacity. A plethora of desired initiatives are constantly being surfaced – beyond the limits of available budget and with no mechanism to sort them into an achievable plan that IT can deliver on.   
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