IT For Sustainability Will Drive The Next Wave Of Corporate Evolution

Chris Mines

Will IT Firms Drive the Sustainable Wave of Corporate Evolution?

Environmental concerns like climate change have not yet become the primary driver for businesses to define, implement, and execute a dedicated sustainability strategy. Rather, sustainability initiatives are driven today by cost and efficiency opportunities.

However, many companies are realizing that sustainability is increasingly important to advance their brand and competitive differentiation, respond to rising customer and regulatory pressures, attract new generations of talent, and enter or even create new markets. While the growth side of sustainability seems to be generally recognized, it is much more complex to measure and, hence, to manage, than the cost side.

Thus, we see widely varying approaches to corporate sustainability, and many companies are still reluctant to pursue sustainability at all.

A recent Accenture study of 766 CEOs, conducted in cooperation with the UN Global Compact, found that brand, trust, and reputation is the most frequently-cited driver for pursuing sustainability, followed by potential revenue growth/cost reduction, and personal motivation. Interestingly, CEOs rank pressures from governments/regulatory and investors/shareholders at the low end of their motivation scale (see Figure 1 below).

 

 

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In Sustainability, Britannia Rules

Chris Mines

Three Reasons Why the UK is Leading the Charge of IT for Green

I was in London last week, delivering the opening keynote at the Green IT Expo conference. I had previously spoken at this event back in 2008, and it was nice to see a bigger crowd of perhaps 400-500 delegates, a lively hall full of vendor exhibitors, and a larger and plusher venue (the Queen Elizabeth II Conference Centre in the shadow of Big Ben). In my estimation, the U.K. continues to be the country at the leading edge of innovation and implementation of IT for Sustainability. Why there? At least three factors:

1. Public awareness of climate change. Unlike here at home, there is little debate in the U.K. about the reality of climate change and the need for urgent action to monitor and reduce carbon emissions to slow its effects.

2. Government mandates for carbon reporting and reduction (the Carbon Reduction Commitment or CRC). The public awareness is reflected in governmental policy. Despite the reporting and reduction requirements of the CRC being pushed out in time, the U.K. still has the most teeth of any country or region in its mandate for companies to monitor, report, and reduce (or pay taxes on) their carbon emissions.

3. Leading companies' efforts to improve their sustainability posture. Whether it's Astra-Zeneca in pharma, Tesco and Marks & Spencer in retailing, BA in transportation, or the U.K. Ministry of Defence in the public sector, leading U.K. institutions are making the commitments and investments to transform their business processes in a more sustainable direction.

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At Last, After A Long Courtship, They’re Engaged! (Ariba and Quadrem, That Is)

Duncan Jones

No, I’m not wasting Forrester’s blog space for yet more coverage of the royal engagement. I think Ariba’s proposed acquisition of Quadrem, that it announced today, is much more interesting. http://ht.ly/3bPei

Royal souvenir plate

Forrester has been predicting, and advocating, consolidation in the procure-to-pay market for a while:

“Once consolidation starts, the natural imperative of scale in the technology business will transform the market into one in which a few large, successful, interoperating networks enable buyers to reach all their suppliers, however small or physically remote.” Enterprises Should Push Supplier Networks To Deliver Interoperability, July 2009.

While I’m unqualified to comment on whose investors do better from the $150m purchase price for a company with about $50m revenue, I do believe the merger is good news for both sets of customers and suppliers. Firstly, Ariba reinforces its place as one of the four or five large supplier networks that will eventually dominate the market. Its customers now get access to a wider stable of suppliers. Quadrem originated as a marketplace for mining companies, so it is particularly strong in MRO categories and in natural-resource-rich regions such as Africa and Latin America where Ariba is under-represented.

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Oracle Releases Solaris 11 — Game Changer Or Place Keeper?

Richard Fichera

Oracle recently announced the availability of Solaris 11 Express, the first iteration of its Solaris 11 product cycle. The feature set of this release is along the lines promised by Oracle at their August analyst event this year, including:

  • Scalability enhancements to set it up for future systems with higher core counts and requirements to schedule large numbers of threads.
  • Improvements to zFS, Oracle’s highly scalable file system.
  • Reduction of boot times to the range of 10 seconds — a truly impressive accomplishment.
  • Optimizations to support Oracle Exadata and Exalogic integrated solutions. While some of these changes may be very specific to Oracle’s stack, most of them are almost certain to improve any application that requires some combination of high thread counts, large memory and low-latency communications with either 10G Ethernet or Infiniband.
  • Improvements in availability due to reductions on the number of reboot scenarios, improvements in patching and improved error recovery. This is hard to measure, but Oracle claims they are close to an OS which does not need to come down for normal maintenance, a goal of all of the major UNIX vendors and long a signature of mainframe environments.
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Juniper: Reading The Writing On The Wall

Andre Kindness

Like the polar ice caps, the traditional edge of the network — supporting desktops, printers, APs, VoIP phones — is eroding and giving way to a virtual edge. With the thawing of IT spending, growth and availability of physical edge ports isn’t keeping up with devices connecting to the network; 802.11 and cellular will be the future of most connections for smartphones, notebooks, tablets, HVAC controls, point of sale, etc.

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How Should EA Be Funded – And What Impact Does That Have On EA Value?

Alex Cullen

Recently I participated in a roundtable discussion by members of Forrester’s EA Council on “Getting Strategic In A Tactical World.” Members talked through the challenge of maintaining a strategic focus when the IT (or business) organization was very tactical and of getting the enterprise architecture function to have the right balance of tactical and strategic activities. “Strategic/Tactical Focus” is one of the dimensions of the Archetypes of EA that Forrester has written about, including in this blog, and the balance between tactical and strategic is a key factor in how the larger organization views EA’s relevance as well as the support it provides to EA. 

One of the participants, who headed a team of more than 50 architects, asked the others, “How is your department funded – as overhead operations or as part of the project investment budget?” The person who asked this question said that his organization is more than 70% funded out of the project budget. Others responded with a range of 100% operations to 100% project-based. The comments around these different funding mixes were very interesting (all comments paraphrased):

“It’s easier to justify the size of my team if the funding is tied to the amount of project investments we are making.”

“Investment funding levels are too variable – two years ago we cut way back, now we’ve ramped way up. If my team size was a factor of investment funding, we wouldn’t be prepared for the amount of investment we are making now.”

“EA funding as part of ongoing operations budget makes us look like overhead. I don’t want architecture to look like some sort of overhead.”

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Cloud Predictions For 2011: Gains From Early Experiences Come Alive

James Staten

The second half of 2010 has laid a foundation in the infrastructure-as-a-service (IaaS) market that looks to make 2011 a landmark year. Moves by a variety of players may just turn this into a vibrant, steady market rather than today’s Amazon Web Services and a distant race for second. VMware vCloud Director finally shipped after much delay — a break from VMware’s rather steady on-time execution prior — and will power both ISP public clouds and enterprise private efforts in 2011. VMops changed its name and landed a passel of service providers; we’ll see if they live up to be the “.com” in Cloud.comOpenStack came out of the gate with strong ISV support and small ISP momentum; 2011 may prove a make-or-break year for the open source upstart. And nearly every enter

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Clear Messaging And Execution Strategy With Microsoft Dynamics CRM 2011

Kate Leggett

Microsoft was kind enough to invite me to Microsoft's Dynamics Fall Analyst Event — a two-day event packed with product, strategy, customer, and partner information. The focus was clearly on Microsoft Dynamics CRM 2011. This product and the go-to-market strategy are clear and focused. Here are my thoughts:

  • The Dynamics CRM 2011 product is good. Today, Microsoft Dynamics CRM is used by 23,000 customers, 1.4 million end users in 80 countries and 40+ languages. That in itself is impressive. However, Microsoft wants to do better. It has focused on the user experience and UI in the 2011 product in hopes of driving increased adoption. Dynamics CRM 2011 is deeply integrated with Outlook, Office Communicator, SharePoint, Office 365, and Bing. It can be easily personalized. A business user, without the help of IT, can set up a dashboard. It has rich reporting analytics. It works on mobile devices, including the iPhone. Microsoft realizes that this product still has limitations, especially around Web self-service customer service capabilities. Its near-term plans are to address this, as well as adding capabilities around support for the phone channel and for social customer service. However, right now, these holes offer a chance for specialty customer service vendors to make inroads.
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Lies, Damned Lies, And Statistics . . . And Benchmarks

Richard Fichera

I have been working on a research document, to be published this quarter, on the impact of 8-socket x86 servers based on Intel’s new Xeon 7500 CPU. In a nutshell, these systems have the performance of the best-of-breed RISC/UNIX systems of three years ago, at a substantially better price, and their overall performance improvement trajectory has been steeper than competing technologies for the past decade.

This is probably not shocking news and is not the subject of this current post, although I would encourage you to read it when it is finally published. During the course of researching this document I spent time trying to prove or disprove my thesis that x86 system performance solidly overlapped that of RISC/UNIX with available benchmark results. The process highlighted for me the limitations of using standardized benchmarks for performance comparisons. There are now so many benchmarks available that system vendors are only performing each benchmark on selected subsets of their product lines, if at all. Additionally, most benchmarks suffer from several common flaws:

  • They are results from high-end configurations, in many cases far beyond the norm for any normal use cases, but results cannot be interpolated to smaller, more realistic configurations.
  • They are often the result of teams of very smart experts tuning the system configurations, application and system software parameters for optimal results. For a large benchmark such as SAP or TPC, it is probably reasonable to assume that there are over 1,000 variables involved in the tuning effort. This makes the results very much like EPA mileage figures — the consumer is guaranteed not to exceed these numbers.
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"Smart" Is Here To Stay: Smart City Tweet Jam Summary

Jennifer Belissent, Ph.D.

Forrester’s Smart City Tweet Jam was a great success.  On Tuesday morning/afternoon/evening, smart city followers around the globe participated in an hour of intense tweeting on smart cities.  We touched on a range of issues from the definitions of a “city” and a “smart city” and the evolution toward the goal of becoming smart to the challenges city leaders face and the business models that enable adoption of technology-based solutions.  We ended with a contrarian view that “smart cities” might just be a fade. But that was quickly refuted with reminders of the growing challenges faced by cities and the imperative of facing these challenges in a sustainable manner. 

One hour, 62 Twitterers, and 389 tweets later we were exhausted – at least I was.  But we were pleased to have aired and shared our opinions about the challenges, the potential solutions to those challenges, and the paths and business models that will make those solutions possible in the short-run, and hopefully sustainable in the longer term.  Below are some excerpts from the conversation.  But there were many interesting points of view and contributions to the discussion. I've included here a visual representation of the key words and topics discussed during the Tweet Jam, created using ManyEyes.  For the more stats and the full transcript, check out #smartcityjam.  

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