Thoughts On Innovation Management From FEI 2010

Christopher Andrews

I just had the chance to attend the "Front End of Innovation" (FEI) conference at the World Trade Center in Boston May 3-5. This event is sponsored by variety of innovation management suppliers, and included some great speakers like James Surowiecki (author of "The Wisdom of Crowds") and Sophie Vanderbroek (President of Xerox Innovation Group). Though I was only able to attend two of the three days at this event, I was able to leave with a solid impression on the innovation management marketplace.

A few of my notes from this event:

  • There is a unique innovation marketplace. With the sheer diversity of innovation discussions taking place at this event, I found it interesting to question whether the there is such thing as a common innovation management marketplace. I think there is. Everyone I spoke to at this event was either trying to unlock innovation potential within their own organization, or was trying to help their clients unlock their own innovation potential. In this regard, the marketplace for innovation is quite different with the boarder market of social collaboration tools and technologies -which I do not think has the same mission.
  • The market is broader than many realize. Despite the common objectives, the companies in this "market" bring a wide variety of different capabilities to the table. For example, at this event, I interacted with:
    • Companies like Spigit, Imaginatik, Idea8, and Kindling who have software tools focusing on idea management (but each with unique strengths)
    • NineSigma and Innocentive who are leveraging their "open innovation" heritage to bring new business models and a distinct offerings to clients
    • Innosight, which brings more management consulting offerings and thought leadership to lead its strategy consulting engagements
    • Seek, Futurethink, and Maddock Douglas which do not focus nearly as much on technology, but instead on methodologies, thought leadership, and workshops that can help clients clarify innovation objectives.
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Transform Business Processes Through Business Analytics

Boris Evelson

co-authored by Clay Richardson, James Kobielus, Craig Le Clair

Boris, Clay, Jim, and Craig get together in this podcast to talk about their upcoming Forrester IT Forum presentation.


CMS Pockets Of The Truth Or CMDB Unified Ambiguity?

Glenn O'Donnell

I've had many discussions with clients and others about CMDB (configuration management database), not surprising as I am coauthor of a book called The CMDB Imperative. These discussions almost always come back to questions about how this thing called a CMDB looks. How is it built? What tool(s) do I use? Which "database" is best? There are many more.

My first response is usually, "I hate the term CMDB, so let's try to kill it off in favor of the ITIL v3 notion of a CMS." If you pursue a CMS (configuration management system) as opposed to a CMDB, a few things become evident:

  • The CMS implies a distributed (federated) model consisting of many management data repositories (MDRs). Each of these MDRs hold data relevant to the scope of coverage for the tool that encompasses that MDR (e.g., a network discovery tool is a network domain MDR and an application dependency mapping tool is the key MDR for the application domain).
  • While a CMDB can certainly be formed in a similar federated fashion, the term "CMDB" has become tainted by the implication that it is a database. The natural assumption here is that this database is one big monolith that holds every detail being tracked. This is unwieldy at best and almost always destructive.
  • The CMS has a more complex structure, but because it enables a divide-and-conquer approach to the overall system, it is a more pragmatic approach. You can bite off each piece and gradually build out your CMS. A "big bang" is not needed and certainly not recommended.
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“If You’re Not Getting Shot At, You’re Not Doing Your Job."

Duncan Jones

Source: Maggie Gyllenhaal, as Rachel Dawes in The Dark Knight, © Warner Brothers, 2008

Recently two large software companies separately complained that I was biased against them in the other one’s favour, which was sufficiently ironic to amuse my British sense of humour. “Biased” is one of the worst accusations you can throw at an analyst, because we strive to be scrupulously fair, and ensure that what we write and say is balanced, and evidence-based. So it started me thinking about fairness, and prejudice versus analysis.

I hear a lot of horror stories from clients about outrageous treatment by software sales reps, so one might think that software marketing execs would be shame-faced and contrite. But, actually, they love their companies and believe that analysts are merely stoking up resentment that wouldn’t exist without us, or that it’s the other guys giving their industry a bad name. “You only hear from the minority of unhappy customers,” they say. “Clients don’t ring you up when they are delighted with us.” This is true, but I speak with hundreds of clients every year, so I think I’d have found more evidence of a silent majority of delighted buyers, if it existed. The problem is that the good corporate intentions don't always translate into sales' behavior, when it's a question of spiff or rif.

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Einstein And Social Media

Nigel Fenwick

Albert EinsteinEven though there's plenty of evidence showing the positive impact many companies are getting from leveraging a social media strategy, there are still companies rigidly refusing to develop a social media strategy. This reminds me of the early days of the Internet: there were those companies looking to embrace the Internet and develop a new kind of "e-business," and the rest, steadfastly refusing to believe the Internet would transform their business. Even as Amazon defined a new online shopping channel in retail it was amazing to see how many large retailers were slow to establish an online presence.

Back in 2000 I wrote a report urging online retailers to embrace “community” as one of three core elements of their customer strategy. Companies such as REI, which already had an online community in 2000, have learned from their experience and are surging ahead into new social media.

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Not Many Palms In Emerging Markets

Jennifer Belissent, Ph.D.

Michele Pelino’s recent blog, “HP’s Acquisition Of Palm Is Not A Match Made In Heaven,” concludes as the title suggests that the success of the acquisition remains a wait-and-see proposition and it, in fact, may not pay off.  As Michele notes,

Forrester’s survey of over 1,000 IT decision makers in North American and European enterprises, only 12% of firms officially support or manage Palm devices. In comparison, 70% of enterprises support BlackBerry smartphones, and 29% support Apple iPhones. Android devices, the newest entrants in the mobile OS wars, have strong momentum and are officially supported by 13% of firms.

Well, that got me wondering how Palm had fared in emerging markets.  We know that device preferences are different globally.  So, I thought, maybe there are some Palm fans outside of North America and Europe.  I checked Forrester’s Global Technology Adoption data from last summer (new survey expected back from the field very soon) in which we surveyed 1,412 IT executives and technology decision-makers across 15 countries.  Here is what I found out about PalmOS support across enterprises in a few of the countries:

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“Noughty” Software Licensing — Is The Obituary Premature?

Duncan Jones

My colleague Andrew Bartels just published this interesting take on SAP’s recent results:

Software License Revenues Roar Back In Q1 2010 -- And Why Licensed Software Will Co-Exist With SaaS Beyond 2010

Liz Herbert and I will be speaking on this theme at Forrester's IT Forum on May 27 in our session: "Noughty" Software Licensing — Is The Obituary Premature? Andrew is absolutely right. In addition to the points he raises, there are other reasons why perpetual licenses aren’t dead yet, such as the financial results they generate. The new models haven’t yet shown they can generate both high levels of re-investment in R&D and high profits for investors. Many SaaS providers have to spend a large share of their income on sales and marketing to retain existing customers and renew subscriptions. That leaves less money left over to fund innovation or fewer profits than their old-model rivals whose entrenched installed bases guarantee high maintenance renewal rates.

But perpetual license vendors mustn’t be complacent. The SaaS model may prove equally remunerative to the license-plus-maintenance alternative when the providers get bigger. Software buyers can encourage the established companies to learn from their SaaS competitors by insisting on some of that commercial model’s advantages in their own contracts, such as low up-front commitment and cost flexibility. 

An Analyst's Day

Holger Kisker

5:30am, the family sleeps and it’s time to prepare – today is Analyst Day in Frankfurt. I’m on the road 2h45min before the event starts (1h20min should be sufficient) but sometimes the traffic is terrible. Last week I missed a flight because the highway was completely closed after an accident and I had to give up after 3h driving for nothing. When the concern of missing an appointment slowly turns into certainty, these are the moments that cost me some of my (remaining) hair.

(Of course) I arrive much too early, but other analysts are already there (probably they don’t sleep at all). Plenty of time to look through my presentation again for some final adjustments and for some small talk with customers that arrived early.

1min before the kick-off, I make the last slide changes and load it to the presentation laptop. Another analyst colleague goes first. I have seen some of the slides a hundred times and look around at the faces of the attendees. For most, it’s the first time they see e.g. our market sizing and forecasting data, and they make hectic notes into their notebooks. They don’t know yet that we will distribute all slides after the event. I’m getting a bit nervous, but I’m used to it. When I'm not nervous any more before a presentation, it’ll get boring for me and the audience, and I should probably do something else.

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To Understand Innovation, Start By Tracking Innovation Stakeholders

Christopher Andrews

In my recent report, “Contracting for Innovation With Service Providers,” I argue that many sourcing and vendor management professionals have difficulty contracting for innovation, because the term “innovation” itself is elusive and subject to interpretation.

In my research, I note that for sourcing professionals to effectively contract for innovation, they need to be able to understand the business objectives of a broad base of internal innovation stakeholders – and consider whether their service providers can align with these objectives.  In the report, I considered the needs of three primary stakeholders – IT, business, and executive-level stakeholders.

But there are far more innovation stakeholders. After writing that report, I decided to review all of Forrester’s inquiries related to innovation over the past year to see if I could identify other innovation stakeholders.  After a review of about 500 detailed client inquiries about innovation, I’ve compiled a list of categories I have seen.

This list of innovation interests is quite diverse (and this is just a preliminary summary!). But the exercise helps us see how innovation is interpreted differently by different parts of the organization.  With this information, we can identify unique innovation objectives and have a much more informed discussion about what innovation is and how it is generated (eventually leading us to conversations about specific topics like structures, metrics, and goals).  

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It's That Time Of The Year

Gene Leganza

Ask people what makes May a noteworthy month, and many folks in the northern hemisphere will wax rhapsodic about its being the peak of springtime. Others might mention Mothers' day.  Ask Forrester's IT analysts and they're pretty sure to immediately blurt out "IT Forum!" IT Forum -- the conference formerly known as GigaWorld -- is our biggest IT conference as it brings together all our IT analysts and about a zillion of our customers in all the IT-based roles for whom we do research. Each major IT role gets a separate track of research -- that's 10 tracks this year. It's essentially a week of non-stop analyst-attendee interaction in various forms. It's intense for both analysts and attendees and easily the most stimulating week on my calendar. At least, on my business calendar (wouldn't want you to think I don't have a life!).

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