A couple of weeks ago, we asked you to submit your questions for Stephen Gillett, EVP, CIO, and GM, Digital Ventures, Starbucks. Stephen will be giving a keynote address on how to elevate the role of the traditional CIO to that of a digital business leader next week at Forrester’s IT Forum. Thank you for your questions – they didn’t disappoint. Without further ado, here are the top questions we received, along with Stephen’s answers:
The rise and rise of cloud has been dominating the headlines for the past few years, and for CIOs, it has become a more serious priority only recently. People like cloud computing. Well - at least they like the concept of cloud computing. It is fast to implement, affordable, and scales to business requirements easily. On closer inspection, cloud poses many challenges for organizations. For CIOs there are the considerable challenges around how you restructure your IT department and IT services to cope with the new demands that cloud computing will place on your business - and often these demands come from the business, as they start to get the idea that they can get so many more business cases over the line for new capabilities, products and/or services, as they realize that cloud computing lowers the costs and hastens the time to value.
So, your organization needs to get social. We all get the benefits. More interactions among more knowledge workers with more frictionless access to more content equals a perfect environment for something new and great to happen. "Peanut butter, have you met chocolate? Oh, you work in separate parts of the organization and haven't had the pleasure yet? Well, you two are a match made in heaven. And, the vast majority of the organization agrees."
Flip comments aside, companies are considering making big bets on enterprise social technologies. For many organizations, particularly in North America and Western Europe, knowledge workers are the last real opportunity for competitive differentiation. Social technologies offer the promise of magnifying that differentiation and potentially in dramatic fashion. The question is how do you drive the cultural and organizational change that come with Enterprise 2.0 as quickly and efficiently as possible. At the end of the day, how do you go about setting up the best environment to drive those incredibly valuable serendipitous interactions?
Andrew McAfee, the father of Enterprise 2.0, recently blogged that the way to get to critical mass most quickly is to drop the pilot and go straight to enterprise deployment. While the conversation that followed was somewhat contentious (including some interesting discussion on a panel I was on at the Gilbane Conference yesterday) Andy's main contention is not up for debate. Social networks thrive on scale and critical mass. The more quickly and broadly that the social network evolves, the greater the chance it has to thrive and ultimately produce those accidental and potentially magical interactions.
I get this request almost on a weekly basis: "Boris, my BI vendor is offering me the following discount, is it a good deal or not?" The first question is what are you comparing it to? It reminds me of an old joke: Q. How much is 5 times 5. A. Depends on whether you're buying or selling. Many of the vendors do not publish or reveal list prices, or even if they do, they are revealed only under NDA to each client, so good luck comparing what the vendor told you and what they told another client. So what ARE you comparing it to?
Another problem, IMHO, is that many of the vendors muddy the waters with CPU based prices, clock speed based prices, etc. Yes, CPU, server, core based prices make sense if you are growing and want to lock in a good deal now, before you grow and expand. But in the end, you, the buyer, still need to figure out how much the software costs you per seat, per user. So with both of these challenges in mind I looked through my 20+ years of notes on BI contracts and per seat license costs and came up with the following. Notice, an interesting X-factor (obviously, I fixed the numbers a bit to have it look nicely like that):
BI output consumer, no interactivity $300
BI output consumer, with light (sort, filter, rank) interactivity $600 (or 2x)
BI output consumer with heavy interactivity (interactive dashboards, search, etc.) $1,200 (or 4x)
One of my favorite research coverage areas is the evolving world of open source software. I like it because innovation is the watchword for the space – evolving technology, evolving business models, and evolving developer culture are fascinating to watch (if you don’t have the opportunity to write code yourself, watching other bright people figure out the best ways to do it is the next best thing). One of my favorite descriptions of the space from the early days of free software is Eric Raymond’s The Cathedral and the Bazaar. If you’ve never read it, I highly recommend doing so.
For the past year or so, I’ve been thinking more and more about the evolution of the Cathedral/Bazaar model, and its eventual end state. If we stick with the commercial analogies through time, we move past guilds and exchanges, and we find ourselves at today’s commercial masterpiece – the shopping mall. In the shopping mall, the landlords provides common conveniences like plumbing, heating, and free parking, and tenets hawk their wares. Small startups might rent pushcarts in the center atriums, while anchor stores like Macy’s and Sears get big hunks of display space at the ends of the mall.
I think we’re beginning to see the development of the Mall as an alternative to the Cathedral/Bazaar model. The Eclipse Foundation is a good example of mixed source development, with anchor stores like IBM and Oracle. Now after spending time at Google I/O this week I think it’s pretty clear we have another mall forming – “The Mall of Google.”
Over the past three months, I've been heads down working on our upcoming "Forrester Wave™ For Human-Centric BPM Suites, Q3 2010" report. I've also been on the road over the past five weeks attending and presenting at different BPM vendor conferences - gotta love Vegas! I must admit I have barely had time to keep tabs on my different BPM tribes - blog sites, Twitter conversations, and LinkedIn discussions. I've been checking in here and there around different camp fires and adding a little spark occasionally when something interesting caught my eye.
But today, I ran across a simmering debate around social BPM on different blog sites, here and here. Seems like this is fast becoming the hottest topic in BPM. Guess I shouldn't be surprised since I helped drive the conversation around social BPM over the last year. It's very good to see the conversation evolve and also good to see different perspectives on how social can help improve all aspects of BPM initiatives.
Earlier this month I delivered a presentation on social BPM at IBM's Impact 2010 event. This presentation provided the most up to date perspective on how we see customers using and applying social techniques and methodologies to BPM initiatives. During the session, we framed social BPM in the following way:
As someone who has been covering cloud computing since the dawn of Amazon’s Elastic Compute Cloud (EC2) I’m constantly in education mode about what is and isn’t cloud computing. To borrow an analogy from my Forrester colleague Ted Schadler’s keynote at last year’s IT Forum, the challenge is a lot like helping blind men discern an elephant through just the parts of the animal they can reach. One feels the trunk and declares it a cylindrical, yet hairy and warm snake. The other calls it a strong, tough and deeply rooted tree upon feeling its hind leg. Each examiner brings their own experience and context to the challenge as well as their own judgments, then leaps to the conclusion that best fits their desires.
Here I sit finally getting a chance to reflect on my 30 hours in Saudi Arabia. Yes, just a little more than one day. But one day was enough to change any preconception that I might have had, and spark my interest to learn more. My “day” started with the VIP treatment through passport control – which I must say was much appreciated. The airport in Riyadh is certainly not Dubai International – far from it. But if there were any disappointment at the inauspicious first impression, it stopped there. Although to set the stage, I was invited to Saudi Arabia by IBM to participate in an analyst event showcasing “Smarter Cities” initiatives in the Kingdom. So admittedly, I was only presented the “smart” side of Riyadh. I am eager to see more.
Today, Google announced Google App Engine for Business, and integration with VMware’s SpringSource offerings. On Monday, we got a preview of the news from David Glazer, Engineering Director at Google, and Jerry Chen, Senior Director Cloud Services at VMware.
For tech industry strategists, this is another step in the development of cloud platform-as-a-service (PaaS). Java Spring developers now have a full platform-as-a-service host offering in Google App Engine for Business, the previously announced VMforce offering from salesforce.com, plus the options of running their own platform and OS stacks on premise or in virtual machines at service providers supporting vCloud Express, such as Terremark.
What’s next? IBM and Oracle have yet to put up full Java PaaS offerings, so I expect that to show up sometime soon – feels late already for them to put up some kind of early developer version. And SAP is also likely to create their own PaaS offering. But it’s not clear if any of them will put the same emphasis on portability and flexible, rich Web-facing apps that Google and VMware are.
So Google aims to expand into enterprise support – but will need more than the planned SQL support, SSL, and SLAs they are adding this year. They'll also need to figure out how to fully integrate into corporate networks, the way that CloudSwitch aims to do.
My friend and highly respected colleague, Wayne Eckerson from TDWI, posted a great article called “Purple BI People”. In the article he described some of the best practices for business and IT alignment, and cross-functional skills sets needed for successful and effective BI professionals. Wayne, I loved the blue cow analogy, you know that I always think in metaphors, analogies, similies and associations. But, while I completely agree with Wayne in his near term assessment, best practices and recommendations, I would like to suggest another long term point of view.
Can business and IT ever align on BI? Can business ever be satisfied with IT for delivering successful and effective BI applications? Is there such a thing as BT (Business Technology, the phrase that Forrester coined and promotes) in BI?
I used to think we could deliver on that promise. Not so sure it’s that straightforward now. Just look at some of the hopelessly diametrically opposing business and IT priorities. I hear the following complaints from my clients day in and day out:
Business is all about revenue generation. While IT can support that, much more often cost cutting is IT's highest priority.
Business wants solutions now. Not tomorrow. IT needs to go through due diligence of testing and approving BI applications. Right now, on demand does not sit well with IT.
Business wants to react to constantly changing BI requirements. IT has to plan.
Business sometimes is willing to do something “quick and dirty” – even at the expense of potentially jeopardizing accuracy and adherence, compliance with standards. IT is all about compliance and sticking with standards.