IBM To Acquire Algorithmics... GRC And Financial Risk Management Get A Little Closer

Chris McClean

Today IBM announced plans to acquire the Fitch Group’s Algorithmics, a heavy-hitter in financial risk management software and services market, for $387 million.

 Here are my initial thoughts about today’s announcement:

  • IBM is making a (relatively safe) bet that operational and financial risk functions will continue to comes together. Regulatory pressures from Basel III, Dodd-Frank, and Solvency II, as well as the competitive realities of the global market, are pushing for banks and insurance companies to have more comprehensive oversight of exposure across all domains of risk. In fact, analytics should be a top priority of any compliance program. It will be some time before IBM (or any other vendor) can deliver a single platform to manage operational, credit, market, liquidity, etc. in one place; however, the addition of Algo’s subject matter expertise and even basic integration of data for a single source of reporting offers customers attractive benefits.
  • IBM still faces heavy competition in financial services for both operational risk with its OpenPages product and financial risk with its new Algo offerings... however. there are very few significant competitors that have strength in both. IBM’s announcement today was a strong move against these other few, most notably Oracle and SAS.
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3 (New) Predictions For The Future Of Carbon And Energy Management Software

Chris Mines
Eighteen months ago, I wrote a market overview report, "The Advent of Enterprise Carbon and Energy Management Systems." Returning from vacation last week, I was sifting through the recent news from suppliers in this nascent market, and thought it would be an opportune time to revisit the principal predictions I made in that report. It's actually something that we in the industry analyst world do not do often enough -- take a look back at our predictions and see how events have or have not conformed with our forecast.

So here goes:

  • Prediction No. 1: IT is the buyer of ECEM systems. "During the next few years [I wrote in December 2009] we believe that enterprise IT organization will emerge with the clear ownership role [for] ECEM systems. IT will bring its expertise in data analysis, data integrity, network connectivity, and overall systems architecture to bear on the corporate sustainability challenge. The faster that data sources for ECEM become more instrumented, more granular, [and] more real-time … the faster IT will move to the center of ECEM system evaluation, implementation, and operation."
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Plea For Sanity. Ban The *-As-A-Service Moniker

Mike Gualtieri

Guilty! You will find SaaS, IaaS, and PaaS terms in my past research documents and blogs posts. But I have decided to stop using the *-as-a-service moniker because it is a redundant pleonasm like horseless carriage, wireless phone, and absolutely necessary - meaningless because it is excruciatingly redundant.

 Does “as-a-service” merely mean that “it”:

  • Resides in the cloud?
  • Is pay-per-use?

Stop the insanity.

Join me in pledging to eliminate-as-a-service (EaaS) the *-as-a-service term. Darn. There I go again.

Avoid The 70% Failure Rate Of Change Management Initiatives

Claire Schooley

You read that number right: seventy percent, a dramatically high rate of failure. It could happen to you unless you take into account that any business process change is strongly related to personal change — that means your people — and this is often the component that gets shortchanged. Organizations fail to realize the impact of change on the employees it will affect and do not plan and execute carefully enough to address the people issues through all phases of business process change management. Today’s business environment is constantly changing as companies work to stay competitive. But change only happens when workers change their thinking, beliefs, and behaviors. This is hard and requires constant effort from employees and executives.

Change management methodologies abound. Look carefully at ADKAR from Prosci and John Kotter’s The 8-Step Process for Leading Change; read Crucial Conversations by Patterson et al. They are rich in change theory and suggestions. Choose one methodology or components of many methodologies. What’s critical is that you do not miss any of the following six principles:

 

The change manager (managing the people change) and the project manager (managing the technology change) must plan together; they work in parallel but have constant interaction to make sure the initiative is moving ahead on both fronts.

To make your change management efforts work, follow these best practices:

  • Get project sponsorship from a leader who understands people change management.
  • Make sure you have the change management resources and a budget.
  • Communicate constantly with employees by engaging them in discussions and keeping them informed.
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Update Your Application Development Sourcing Strategy To Drive Innovation And Differentiation

Mobilize Your Content & Collaboration Applications

Ted Schadler

A quick reality check: our content & collaboration systems have been with us since we first put PCs on desktops. Today, these systems are pervasive in our workflow, our work lives, and our work cultures. Need proof? Here are some data from our recent survey of 4,985 US information workers:

  • 91% of information workers use email. Email's still the most ubiquitous and important collaboration tool, but hardly the only one that people use.
  • 58% of information workers uses their employee intranet portal. This vital resource is in the flow of daily work, particularly among Sales people and in the enterprise.
  • 40% of information workers spend an hour or more per day creating documents. We spend huge amounts of time capturing knowledge and process in documents.
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Big Data, Brewer, And A Couple Of Webinars

Brian  Hopkins

Whenever I think about big data, I can't help but think of beer – I have Dr. Eric Brewer to thank for that. Let me explain.

I've been doing a lot of big data inquiries and advisory consulting recently. For the most part, folks are just trying to figure out what it is. As I said in a previous post, the name is a misnomer – it is not just about big volume. In my upcoming report for CIOs, Expand Your Digital Horizon With Big Data, Boris Evelson and I present a definition of big data:

Big data: techniques and technologies that make handling data at extreme scale economical.

You may be less than impressed with the overly simplistic definition, but there is more than meets the eye. In the figure, Boris and I illustrate the four V's of extreme scale:

The point of this graphic is that if you just have high volume or velocity, then big data may not be appropriate. As characteristics accumulate, however, big data becomes attractive by way of cost. The two main drivers are volume and velocity, while variety and variability shift the curve. In other words, extreme scale is more economical, and more economical means more people do it, leading to more solutions, etc.

So what does this have to do with beer? I've given my four V's spiel to lots of people, but a few aren't satisfied, so I've been resorting to the CAP Theorem, which Dr. Brewer presented at conference back in 2000. I'll let you read the link for the details, but the theorem (proven by MIT) goes something like this:

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Conquering The Technology/Marketing Divide

Sharyn Leaver

Forget Brad and Angelina (or "Brangelina" for those that are more plugged in to pop culture than I), the new "it" couple is the CIO and CMO. Why? In the digital world we live in today, which Forrester defines as the Age of the Customer, empowered buyers demand a new level of customer obsession. That means firms must deliver marketing and technology solutions that have visible impact on the customer. CIOs and CMOs are best positioned to deliver because they have a broad, end-to-end purview of their businesses and they understand how to innovate. But, CIOs and CMOs also often come with conflicting expectations and priorities that can sabotoge well-intentioned collaboration efforts.

Charles Rutstein, Forrester's COO, recently sat down with my CMO Practice Leader peer David Cooperstein and me to discuss the role that CIOs and CMOs play in this customer-obsessed new world. See what we had to say here:

 

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Forrester Technographics Data Points To Increased Communication Channel Usage With Inconsistent Satisfaction Ratings

Kate Leggett

The most recent data cuts from Forrester’s North American Technographics® Customer Experience Online Survey, Q4 2010 of how more than 3,400 consumers interacted with customer service organizations in the last 12 months highlight some interesting trends:

  • For the first time, web self-service topped the phone channel as the communication channel most widely used by customers to interact with customer service organizations.
  • Consumers use the phone channel 50% of the time. However, other channels are more widely used than the voice channel: 58% of the time, consumers search for an answer on the Web; 61% of the time they send an email to customer service; and 66% of the time they search a company’s FAQ.
  • Social channels are used for customer service, but numbers are very low (1% of customers used Twitter, but 6% of customers used forums).
  • Live-assist communication channels (phone, chat, cobrowse) have much higher satisfaction ratings than asynchronous electronic channels (email, web self-service). Satisfaction ratings are:  phone (74%), chat (69%), cobrowse (78%), email (54%), and web self-service (47%).
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It's Not About Apple vs. Microsoft, Or Apple vs. Google. It's About Freedom.

David Johnson

We are learning once again that what people want most is to be free
John Quincy Adams (sixth President of the US) said: "Who but shall learn that freedom is the prize…and on the oppressor's head to break the chain." Glorious change. Monumental change. Empowerment and Freedom. I submit humbly but with absolute conviction to all of you that we are in the midst of revolution in personal computing - the extent of which we will only fully comprehend once it's over, and established vendors and IT leaders alike are scattered on the side of the road.

It's not about Microsoft vs. Apple or Google vs. Apple. It's about freedom. Freedom from control. Freedom from establishments. Freedom of identity. Freedom from IT departments too understaffed and ill-equipped to help. Freedom from layers of management agents and miscellaneous junk that sap minutes to hours of productive time from our lives every day. The price of compliance and security you say? Hogwash.

End user experience is at an all-time low
The end user experience has deteriorated to the point that we sit and wait while the hourglass spins, as IT's remote bots take inventory, or install software updates while we're frantically trying to get our slides together for a customer meeting. The mindless bots scan for threats and lock the cursor while we're trying to write an e-mail, and we get embarrassing pop-up reminders while we're presenting to rooms full of people to make sure we know to update Adobe Acrobat. We're as mad as hell, and we're not going to take it any more! Who gave someone the right to assume that what their tool needs to do at any given moment is more important than the work we have to get done?

High performers are being hanged for taking matters into their own hands

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