Building B2B Markets: One Entrepreneur at a Time

Jennifer Belissent, Ph.D.

Last December I wrote about Building B2B Technology Markets, looking at how to penetrate a market with almost none of the traditional characteristics of a mature technology market? As technology vendors increasingly look to emerging markets as a significant opportunity and source of growth, this question becomes more pressing.  The report explored some of the elements of Cisco’s Country Transformation initiatives in order to identify steps in the process of building market infrastructure:

For example, the report looked at partnering with governments to encourage market-friendly policies and investment in the necessary technology infrastructure to support market development and overall economic growth.  And, from a sales perspective, trade associations provided an alternative channel to reach small and medium businesses in markets where distributors and resellers weren't available.  

But, another element critical to successful market development is the ecosystem of partners developing solutions specific to the particular market, or even just contributing local innovation for new approaches to broader global issues.   Building B2B Technology Markets discussed finding local organizations to act as partners in the market, and even investing in educational initiatives, but missed the next step of how to help create these new local ecosystem partners. 

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TCS Continues To Build Its Innovation Capabilities

Christopher Andrews

During a recent set of interviews with IT service providers on how they help their client’s innovate, I had the opportunity to speak with K Ananth Krishnan, CTO at Tata Consultancy Services (TCS).  Ananth described to me what I consider to be one most progressive innovation programs I encountered during these interviews – it was consistent with TCS’s capabilities, holistic in scope, and has the potential to be a important part of the company’s long-term evolution.

A few key findings from my discussion with Ananth:

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Oracle Puts Another Notch In Its Industry Apps Acquisition Stick

Paul Hamerman

Today, Oracle announced yet another acquisition - this one of Phase Forward, a clinical research suite that helps life sciences companies manage their R&D process. Oracle paid $685 million in cash for this acquisition. While my research role focus does not encompass life sciences software specifically, Oracle's overall apps strategy is definitely of interest to me. My thoughts about this deal are as follows:

  • Oracle continues to aggressively acquire industry-specific applications to complement its core ERP solutions (e.g., EBS, PeopleSoft, J.D. Edwards, and the yet-to-be-released Fusion Applications). Industry apps enable Oracle to achieve deeper relevance with specific types of businesses, and sell them additional products, including middleware, integration accelerators, BI, databases, core ERP applications, and now even computer hardware.
  • The Phase Forward clinical trials software puts Oracle into the mix in large pharma accounts, where SAP tends to have the lion's share of the wallet for applications.
  • Healthcare overall is a massive market opportunity for which Oracle has only scratched the surface. Oracle only recently established a Health Sciences Global Business Unit, and more acquisitions can be expected in and around the healthcare ecosystem. Healthcare provider solutions may fit into this build-out at some point.

Your thoughts on Oracle's apps strategy and portfolio? Feel free to comment here.

The Definition of Complexity Is A Complex Matter

Jost Hoppermann

Recently, I discussed complexity with a banker working on measuring and managing complexity in a North American bank. His approach is very interesting: He found a way to operationalize complexity measurement and thus to provide concrete data to manage it. While I’m not in a position to disclose any more details, we also talked about the nature of complexity. In absence of any other definition of complexity, I offered a draft definition which I have assembled over time based on a number of “official” definitions. Complexity is the condition of:

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Is Risk Based Testing Part of Your Test Planning?

Margo Visitacion

Recently, I’ve been getting more inquiries around risk based testing.   In addition to agile test methods and test estimation, test teams turning their eyes to risk based testing is just another positive step in integrating quality through out the SDLC.  Yes, I still see QA engineers as having to put their evangelist hats on to educate their developer brothers and sisters that quality is more than just testing (don’t get me wrong, consistent unit and integration testing is a beautiful thing), however, any time that business and technology partners can think about impact and dependencies in their approach to a solid, workable application elevates quality to the next level. 

Keep asking those questions about risk based testing – and make sure that you’re covering all of the angles.  Make sure that you’re covering:

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Upside-down is right-side up for Telefónica: Latin America shows growth and opportunity

Jennifer Belissent, Ph.D.

The word for “crisis” in Chinese apparently comes from two roots meaning “risk” and “opportunity” – there is both a downside, and the potential for an upside.  That’s how César Alierta, Telefónica Chairman and CEO, began the opening keynote of their 2010 Leadership Conference in Miami (where I spent several days last week).  For Telefónica, that definition has played out with the global economic crisis.  While results in Spain have been their downside, Latin America has been the opportunity.  Telefónica has a presence in 15 countries in Latin America (and 42 countries worldwide), with offerings in mobile and fixed telephony and in IT services.  Not all offerings are available in all markets but in many countries Telefónica has leveraged a strong position in one offering to expand into the others becoming the first integrated operator in the region. 

According to José Maria Pallete, CEO of Telefónica Latinoamérica, Latin America represents 65-70% of their total customer base, 40% of revenues and about 40% of the operating income. In the enterprise space (as opposed to consumer services), 37% of Telefónica revenue comes from Latin America.  That corporate segment (including public sector) marked double digit growth in Latin America in 2009, with its biggest markets in Brazil and Mexico. 

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Business Capabilities Are The Strongest Foundation For Tech Strategy

Randy Heffner

In developing a technology strategy for your organization, what will be your basis for deciding which technologies to pursue, when to pursue them, and how to implement them? In other words, what will be the foundation for your technology architecture and strategy? In considering this question, I assume we agree that technology strategy should directly support improvement of business outcomes, both now and over the long haul. To provide for the long haul, your technology architecture and strategy must be crafted to support a continuous stream of business change, both small incremental steps and large radical shifts.

Your strategy could begin with a list of hot technologies — perhaps even ones that business colleagues are clamoring for — but how would you know which of them would lead to the most important improvements in business outcomes? You could begin with your top executives’ current business plans and strategies — which would clearly address today’s priorities for improving outcomes — but over the long haul, business plans change, sometimes dramatically, making them an unstable foundation for technology strategy.

Since the goal of technology strategy is to improve business outcomes, let’s refine the question with that as our focus: What basis for technology architecture and strategy:

(a) Aligns best with the ways that business leaders conceive, plan, execute, and measure improvements to business outcomes,

(b) Provides the best structure for building technology implementations that align with and facilitate the ways that businesses change both now and over the long haul, and

(c) Best guides the prioritization, planning, architecture, design, and usage of technology within business improvement projects?

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The Fed CIO Looks To The Cloud - Should You?

Nigel Fenwick

Federal CIO Vivek Kundra’s recent presentation to the Brookings Institution outlined how the US administration is moving to a “Cloud-first” approach to consolidating the US government technology infrastructure. Since the US government is the largest buyer of information technology in the world, spending over $76 billion supporting over 10,000 systems, we can be sure that a Cloud-first policy will have a major impact on technology vendors and the services they offer - not only to the US government but to all IT buyers.

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With 4.0, Apple Is Listening To Enterprise Concerns

Ted Schadler

Apple yesterday announced OS 4.0, it's latest iPhone and iPad operating system. This release confirms what we believed last year: that Apple is actually listening to what enterprise IT needs from iPhones. Let's review the history:

  • July 2007. Apple launches iPhone with OS 1.0 as a consumer device without anything that companies require.
  • July 2008. Apple releases iPhone 3G with OS 2.0 and introduces Exchange support, including remote wipe, but little else that companies need. Even so, some firms allowed their employees to bring their own iPhones and get email support.
  • July 2009. Apple releases iPhone 3GS with OS 3.0 and hardware encryption and enough policy-based control to give IT professionals the ability to more comfortably support the devices, particularly in non-regulated industries. The big remaining gaps in 3.0 from our 100+ conversations with IT pros? The inability to distribute applications wirelessly, to push software and policy updates to the device, and to manage iPhones or iPads in the same way that BlackBerry Enterprise Server (or Server Express, the $0-cost version) does.
  • July 2010. Apple will release OS 4.0 that includes wireless app distribution, better data encryption, more APIs for device management, and a significicant number of enterprise features that are outlined below. For other details, check out these Forrester posts on consumer functions and on mobile advertising.
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The Tech Recovery of 2010 Is Underway

Andrew Bartels

As I predicted in January 2010 (see January 11, 2010, "US and Global IT Market Outlook: Q4 2009"), a tech recovery has started in the US and around the world.  In my updated IT market forecast (see April 8, 2010, "US and Global IT Market Outlook: Q1 2010"), I point out that IT market indicators from Q4 2009 showed an end to declines, setting the stage for stronger growth in 2010.  Since IT market trends are playing out as I expected, I have made only modest changes to my 2010 IT market forecasts.  I now expect the US IT market to grow by 8.4%, a bit higher than my earlier forecast, because of better-than-expected performance in communications equipment.  My forecast for the global IT market in US dollars is a bit lower at 7.7%, with the unexpected strength in the US dollar (due to the weaker Euro after the Greek debt crisis) dampening dollar-denominated growth.  I continue to see computer equipment and software as the strongest product categories in 2010, with PCs, peripherals, and storage equipment leading the computer category and operating system software and applications setting the pace for software. Communications equipment purchases are looking up, especially for enterprise and SMB buying.  IT services will lag a bit, with systems integration project work waiting for licensed software purchases to rise. 

In this report, I provide our first look at 2010 IT purchases on an industry basis in the US.  Confirming past research, the largest US industry market for tech products and services is the professional services industry ($103 billion), followed by financial services ($81 billion), and government ($71 billion).  In terms of 2010 growth prospects, US manufacturers, financial services firms, utilities, and health care will see the strongest growth in 2010. 

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