CIOs Will Lead The Digital Change – Or Be Usurped – In 2015

Pascal Matzke
Rapidly evolving customer expectations continue to drive changes across all facets of business. Consumers and business customers increasingly expect real-time access to status, service, and product information. Rapidly changing consumer expectations ripple throughout the supply chain, shortening product cycles and requiring more agile manufacturing capabilities.
 
Forrester believes that 2015 will serve as an inflection point where companies that successfully harness digital technology to advantageously serve customers will create clear competitive separation from those that do not. CEOs will shift more investment funds to creating digitally connected products and solutions. Products like connected cars, connected running shoes, or connected aircraft turbines are creating new value propositions that tie these products closer to the customer engagement life cycle and help create new business models. Data as a product or service will create new revenue and customer value streams. For example, sensor-embedded tractors already generate data that power John Deere’s FarmSight service. And as industrial players like General Electric, Philips, Robert Bosch, and ABB learn to act more like software companies by creating value through software, their underlying business models will change rapidly. 
 
As businesses pursue digital transformation, their CIOs will reset their priorities accordingly. Together with my colleagues Bobby Cameron, Nigel Fenwick, and Jennifer Belissent, we brought together the top predictions for CIOs in 2015. In particular, we predict that CIOs will:  
Read more

Don’t Wait For Governments To Pave The Way For Digital Business

Dan Bieler

Digital transformation will fundamentally affect all aspects of business and society, which makes it a key theme not only for business leaders and CIOs but also for governments. Over the past few years, several governments across Europe, as well as the European Union (EU) itself, have each developed their own respective initiative to address the opportunities and challenges that come with digital.

However, from the CIO’s perspective, these digital agendas often fail to meet the requirements that businesses encounter as part of their digital transformation projects. While the digital agendas emphasize infrastructure and regulatory initiatives such as broadband coverage and Net neutrality, CIOs and their business partners would also benefit also from a focus on “soft issues,” such as promoting an interdisciplinary approach in university education and driving digital innovation across industry sectors. We believe that:

  • Governments recognize the digital transformation of businesses and society . . . Governments across Europe, as well as the European Commission of the EU, have recognized the importance of digital transformation to their constituencies and citizens. Various digital agendas have been developed and rolled out over the past few years with great fanfare. But in the end, most digital agendas remain high-level discussion papers.
  • . . . but governments underestimate the magnitude of digital transformation. Most digital agendas lack any real insights about broader business requirements for being successful in the digital economy — let alone any technological insights. Digitization is treated like one of many initiatives rather than the overarching theme for business and society.
Read more

Exploring The Data Economy Opportunity: Some Do's and Don'ts

Jennifer Belissent, Ph.D.

An inquiry call from a digital strategy agency advising a client of theirs on data commercialization generated a lively discussion on strategies for taking data to market.  With few best practices out there, the emerging opportunity just might feel like space exploration – going boldly where no man has gone before.  The question is increasingly common. "We know we have data that would be of use to others but how do we know?  And, which use cases should we pursue?" In It's Time To Take Your Data To Market published earlier this fall, my colleagues and I provided some guideance on identifying and commercializing that "Picasso in the attic."  But the ideas around how to go-to-market continue to evolve. 

In answer to the inquiry questions asked the other day, my advice was pretty simple: Don’t try to anticipate all possible uses of the data.  Get started by making selected data sets available for people to play with, see what it can do, and talk about it to spread the word.  However, there are some specific use cases that can kick-start the process. 

Look to your existing customers.

The grass is not always greener, and your existing clients might just provide some fertile ground.  A couple thoughts on ways your existing customers could use new data sources:

Read more

How To Transform Your Technology Infrastructure: Our New Playbook Is Your Guide

Dave Bartoletti
I want to join Glenn O'Donnell in introducing The Infrastructure Transformation Playbook. The entire I&O team has been working on research for this playbook in the last year, and we think it should be your starting point as you plan your infrastructure priorities for 2015.
 
Cloud and the digital business imperatives you face in 2015 are the external forces driving this transformation. What it means for your internal organization is now's the time to get serious about service design and service delivery. As Glenn, the research director guiding this playbook, says:
 
"Your future lies not in managing pockets of infrastructure, but in how you assemble the many options into the services your customers needs. Our profession has been locally brilliant, but globally stupid. We’re now helping you become globally brilliant. We call this service design, a much broader design philosophy rooted in systems thinking. The new approach packages technology into a finished “product” that is much more relevant and useful than any of the parts alone."
 
Read more

Customer Obsession Set To Disrupt BPM Market In 2015

Clay Richardson

In 2014, the top priorities for business process management (BPM) initiatives focused on extending mission critical business processes to support the mobile workforce and redesigning business processes to deliver exceptional customer experiences. During 2014, Forrester also noticed a growing appetite to move business critical processes into the cloud using BPM platform-as-a-service solutions. And, although customer sentiment for BPM was mixed to negative in 2014, software vendors reported respectable double-digit revenue growth for BPM solutions. Sounds like it’s time to pop the bubbly and celebrate, right?

Not quite yet. In 2015, BPM will fight to expand its relevance in the front office and will need to shed serious weight to better align with age of the customer imperatives that prioritize speed-to-market over analysis and complexity – traditional hallmarks of the BPM discipline and software solutions.  Together, with my colleague Craig Le Clair, we expect 2015 to be a tipping point for the BPM market.  In 2015, customer-obsession – the relentless focus on winning, retaining, and serving customers – will disrupt and reshape the entire ecosystem for BPM:
 

Read more

The Problem With "Technical Debt" And Other Agile Terms ...

Phil Murphy

I have a love/hate relationship with "technical debt". Having covered apps modernization, rationalization, and portfolio management at Forrester for more than a decade, I have a keen appreciation for the concept of technical debt - in all its permutations.

So I love the term for the sentiment it expresses about the need for change:

  • As we have modernized applications over the past 4 decades, we have "kicked the can" down the road far too many times - opting for expediant change over "refactoring to make it right"
  • Within any mature single app, technical debt spawned by years of compromise can accumulate to daunting levels
  • The debt eventually reaches the point of becoming a self-fulfilling prophecy - today's debt is too big to tackle, so we kick it down the road and watch it grow out of control
  • Across the entire apps portfolio, the accrued debt cripples firms by gobbling up huge percentages of the available business technology (BT) spend
  • As we rush to build out customer facing and mobile apps to address the age of the customer, the technical debt within the systems of record act like an anchor on change velocity - at both the app AND portfolio levels

And I hate the term because well-intentioned techies wield it like a bludgeon to pound business leaders with an urgency to act. But imagine for a moment how it sounds to business leaders, how they react to the term:

  • "If it's technical, then its your problem Mr App Dev leader, not mine - I'm a business leader"
  • "This debt you want to hand me ... YOU created it, YOU made technology decisions - it's your problem, don't try to hand me a bill to clean up YOUR mess"
Read more

Ignore Digital Experience Delivery Technologies At Your Own Peril

Stephen Powers
Ignore digital experience delivery platforms in 2015, and you’ll spend all of 2016 playing catch up.
 
Since 2013, no fewer than eight vendors announced enterprise-class solutions vying to offer integrated, business-centric tools to create, deliver, measure, and optimize digital experiences. Just this week, French advertising giant Publicis Groupe acquired Sapient for $3.7 billion, and the second bullet of its press release, announced Publicis.Sapient, a new platform “focused exclusively on digital transformation and the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology.”
 
In our new document, “Predictions 2015: Digital Experience Delivery Platforms Become Flexible Or Lose Momentum,”  we share why we think that 2015 is the year that application development and delivery (AD&D) and digital marketers’ worlds collide – shared platforms, customer data, budgets, and priorities will emerge within B2C and progressive B2B enterprises. Now is the time for progressive digital customer experience technology leadership — from all corners of the organization — to come together to end the patchwork strategies of the past.
 
Read more

Lost in Service Catalog Taxonomy? Forrester’s Technology Management Service Catalog Taxonomy To The Rescue!

Eveline Oehrlich
When it comes to your Technology Management service catalog, are you lost in arguments on what to call certain categories of services? What are your service families and what is the next level of service elements?  What are the definitions of the service elements? These questions are just the tip of the iceberg of current projects within I&O organizations in defining the rich and complex world of a technology management service catalogs. I&O teams are struggling to architect foundational service catalogs which will support the standardization and optimization efforts of their service offerings. 
 
With that challenge in mind, Forrester created a I&O Technology Management Service Taxonomy - a collection of many service elements, organized by 13 service families. The research consists of a detailed spreadsheet based tool with a variety of service families, service taxonomies and definitions.  The next steps are to understand the business services and capabilities which are enabled through these technology management services.  Some business services and capabilities are similar from one vertical to another.  Our next endeavor is to capture these services as well.  
 
We'd like to make this a living and breathing Service Catalog Taxonomy and plan to publish updates soon. Please send all comments and suggestions to eoehrlich@forrester.com and cgallacher@forrester.com.

As OpenStack Stabilizes Big Questions Remain for the Foundation

James Staten

At its Paris summit, the OpenStack community celebrated the 10th release of what has become the leading open source Infrastructure as a Service cloud platform software. What stood out about this latest iteration and the progress of its ever-growing ecosystem of vendors, users and service providers was the lack of excitement that comes with maturity. The Juno release addressed many challenges holding back enterprise adoption to this point and showed signs that 2015 may prove to be the year its use shifts over from mostly test & dev, to mostly production. Forrester clients will find a new Quick Take on OpenStack that analyzes the state of this platform and recommended actions here. In this blog post we look at looming questions facing the OpenStack community that could affect the pace and direction of its innovation. 
 

Read more

Without Transformation, Banks Risk Shifting Down To Low-Speed Banking In 2015

Jost Hoppermann
For several years, we have noted a shift in power from companies to customers. Customers call the shots; they can and do transfer their loyalty when they aren't catered to with engaging customer experiences. The age of the customer has reached the banking industry; as in other industries, banks must change the way they do business to move the customer center stage.
 
Thus, application development and delivery (AD&D) teams must work with their peers across the bank to develop and apply the technology, systems, and processes needed to win, serve, and retain customers, partnering with eBusiness executives leading digital banking initiatives to drive new digital innovations. And this is not just a minority movement: Forrester’s Financial Services Architecture Online Survey 2014 shows that close to 80 percent of financial services firms around the globe work on transforming their application landscape or plan to start doing so within the next two years.
 
To prepare for this transformation imperative, AD&D pros need to be aware of the key trends for banking applications; the emerging and accelerating architecture trends, products, and services; as well as their to-do lists for 2015, which you can learn more about in Peter Wannemacher's Predictions 2015 report. While some banks aren't yet ready to take full advantage of these trends, Forrester believes that AD&D teams must be aware of, learn from, and prepare for eight trends in 2015. Among them:
Read more