The Digital Bolt-On Conundrum

Nigel Fenwick
What’s the difference between a digital bolt-on and transformative digital disruption?
 
In the two years I’ve been on the road talking with executives around the world about digital business and delivering keynotes on digital transformation, I’ve been most frequently asked about bolt-on vs. transformation; what’s the difference? 
 
A digital bolt-on is a digital project that is added to the existing business model that might improve the customer experience in a small way, but doesn’t fundamentally change how value is created for, and/or delivered to, the customer. For example, when a company updates a website and provides customers an electronic ordering platform, they are not changing the existing business model; they are simply providing an alternative channel through which the customer can buy products. The value proposition remains the same: buy and experience our product and you’ll gain value from the experience. Digital (in this case an online sales channel) has been bolted to the existing business model in much the same way a teenager bolts a spoiler onto an old car to make it "go faster".
 
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Gainsight's Pulse Conference Underlines The Importance Of Customer Success In A Subscription Economy

Kate Leggett

I attended Gainsight’s Pusle conference on customer success, held in San Francisco, on May 12 and 13. This conference, which focused on the economic value of customer success, actionable customer success best practices and insight from customer success practitioners, drew over 2000 attendees across 20 countries. This was more than double the size of last year's conference. The speaker list read like a who’s who in the world of young B2B SaaS companies: Apttus, Box, Zuora, Yelp, Satmetrix, MindTouch, Zendesk, Influitive, InsideSales, Docusign, Atlassian amongst others, as well as more established companies such as SAP,  ATT, Salesforce, LinkedIn, Workday. It also drew a long list of VC luminaries including Roger Lee from Battery Ventures, Jason Lemkin from Storm Ventures and SaaStr, Tomasz Tunguz from Redpoint Ventures and Ajay Agrawal from Bain Capital Ventures,. 

So why the interest in customer success? 

  1. Our world has moved to a subscription economy. Categories like media and entertainment and telecommunications have fully embraced this model. Other industries like  publishing, computer storage, healthcare, are moving in this direction. This shift is most notable in B2B software.  
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Take Investment Protection Off Your List Of Evaluation Criteria

Andre Kindness

Historically I have not been a big fan of Interop for a variety of reasons. However Greg Ferro, George Stefanick, Ivan Pepelnjak, and Harvard Business Review IT Director Ken Griffin — to name a few — changed the breakout sessions experience for me. During Greg’s data center network session, he said something that was priceless. He was giving some guidance around refresh cycles and told the audience to not worry about investment protection. It was so refreshing to hear it. I wasn’t the only one nodding my head: Investment protection is hogwash.

Greg made the case that moving to a 3-year replacement cycle changes a customer’s buying and design criteria. Right now, customers have to guess what is going to happen over an 8- to 10-year cycle; this long term guess creates the desire to protect that amount of spending with “investment protection” features. By considering flexibility, growth, and scalability of the network over that period, customers lean towards chassis switches with ports, which can cost 5 to 10 times as much as a pair of 1RU switches with the same type of ports. By selecting chassis switches, Greg says customers have doubled or tripled their project cost.

However on a 3-year replacement cycle, customers can choose right-sized equipment (which is probably a 1RU switch), do less maintenance, and gain faster access to new features. In addition, the risk could be lower.  For example if bad decision was made, a company is only stuck with selection for 3 years. Or, the company can choose to replace the network earlier and take smaller hit on capital expense line than if the compay bought chassis switches.

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Get your customer service ready for the digital-first generation

Ian Jacobs

This is a guest post by Danielle Geoffroy, Research Associate on the AD&D team who helps with our customer service and unified communications research.

Do you hear that swooshing sound of a tweet being sent in the middle of a Google Hangout? It’s faint, but strong, and it means they’re coming.  Generation Y—a generation raised entirely in a technology-driven world.  This new breed of consumers demands more from companies and government agencies, with particularly high expectations for friction-free customer experiences. They’re prepared with knowledge of your company, and your top competitors. In fact, they often have more information about you and your products than your own employees.

This new generation should matter to you, because by 2018, the millennials will surpass the spending power of baby boomers. Remember: there is a dollar value to every positive and negative Yelp review, tweet, and Facebook status they target at you. With so much information at consumer’s fingertips, there is some give with the take. People don’t want to retain all of the information they receive on a daily basis. Striking a balance between the knowledge of your customers, and the methods deployed by your customer support agents, will lead to an enjoyable service experience, and keep you far away from the dreaded viral video of a support request gone wrong.

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Seeing is believing for financial services firms as they increasingly embrace video as a sales and service channel

Art Schoeller

When we think of obstacles financial services firms need to overcome in order to win, retain, and serve customers, one of the largest ones that come to mind is trust and transparency.  For financial services firms these attributes are key to boosting deeper customer engagement with wealth management clients and grow share of wallet in retail banking.

Those that have successfully done this in the past need to adapt to the mindset and needs of the modern digital customer.   In our recent report, we explore the effectiveness of using varying video channels to not only pull customers in, but build the relationship of the financial partner. “Hey, we’re in this together” is what we all want to hear from the person holding our money, right?

Three ways financial firms are finding customer success through video:

1.       Instant access to a human. One of the realities with serving the modern consumer is that they will want immediate access to you, and sometimes a quick balance check is not going to cut it.  Consider deploying a video chat solution for your high net worth customers.

2.       Assure them of your knowledge and understanding of the market. Your customers don’t know what they don’t know, that is why they are turning to you.  A best practice video on choosing the right home insurance policy creates the empathy people crave, much more than a text filled webpage.

3.       Brand videos.  Financial firms know our cousin’s husbands name.  Showing us what you are about, what your values and promises are, create a valuable but often lost connection with the customer.

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Enterprise Mobile Application Technologies TechRadar

Pamela Heiligenthal

I am launching an upcoming TechRadar methodology report that will look at the technologies that enable enterprises to deploy, monitor and manage mobile applications and company-owned devices, as well best practices to help refine our research.

I've identified eight technologies in this space:

  • Beta Distribution Tools
  • Enterprise Application Stores
  • Enterprise Mobile Management
  • Image Management and Configuration
  • Mobile Application Management
  • Mobile Application Performance Management
  • Mobile Device Management
  • Mobile Operations Management

Ultimately, we hope to accurately predict the long-term viability and business value of each technology over the next 5-10 years.

Your level of insight would be invaluable for me to complete this research. If you are interested in participating, feel free to leave a comment below or send an email to pheiligenthal@forrester.com and I will send you the details.

In appreciation for your time, we will provide you with a courtesy copy of the final report. Credit for your company’s participation will also be attributed unless you wish to remain anonymous.

Are Passwords Dead? Take the Forrester Password Usage & Trends Survey!

Merritt Maxim

To paraphrase the great humorist Mark Twain, rumors of the death of passwords have been greatly exaggerated. While people lament the challenges and problems posed by passwords, they remain a core authentication and security technology.

My colleague Andras Cser and I have been fielding so many client inquiries around passwords that we are undertaking a quantitative, anonymous survey from end user organizations to gauge their current password policies and usage. This online survey asks about your organization’s current password policies and challenge as well as the future role of passwords in your organization. We also are using the survey to gain perspectives on the future of passwords and how other technologies might replace passwords completely.

The survey is completely confidential, but participants who provide contact details will receive a complimentary copy of the report when it’s published later this year.

You can access the survey here:

http://forr.com/PWTrends2015

We look forward to your responses!

Here Come The Insights Ecosystem (s)

Ted Schadler

In doing research on why big data is not enough and customer insights teams are disconnected from business operations, Brian Hopkins and I came across three hugely important things happening:

  1. Firms are adopting systems of insight -- insights teams with business, data, and developer skills using an insights-to-execution process and taking advantage of a new insights architecture. This is what our new big idea report is about.
  2. Service providers are building insights practices with reusable technology, reusable insights models (including some with cognitive capabilities), and reusable engagement models for an industry or business function. Deloitte Digital and now IBM specialize in this, but many other service providers are recrafting their analytics practices to jump in.
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Forrester’s Security & Risk Analyst Spotlight – Martin Whitworth

Stephanie Balaouras
Once a month, my co-research director and partner in crime, Chris McClean, and I will use our blog to highlight one of the 26 people who collaborate to deliver our team’s research and services and always make Chris and I look really, really good. Each “Analyst Spotlight” includes an informational podcast and an offbeat interview with the analyst. This month’s Analyst Spotlight features our newest analyst, Martin Whitworth. Based in London and bringing experience as a CISO and Head of Security across several industries, Martin will cover the most pressing issues keeping CISOs reaching for another bourbon on the rocks, including security strategy, maturity, skills and staffing, business alignment, and everyone’s favorite pastime, reporting to the board. 
 
Martin Whitworth Image Prior to joining Forrester, Martin served as CISO and senior security leader for a number of blue chip organizations, including Coventry Building Society, Steria Group, UK Payments Council, British Energy/EDF Nuclear Generation, and GMAC. In these roles, he developed and executed a variety of security strategies and programs, and he has extensive experience successfully engaging business and board-level stakeholders. He also has considerable experience as a trusted advisor to security leader peers in the public and private sectors internationally, as well as advising standards and regulatory bodies.
 
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Huawei Defends Its Pole Position In The Race Of Network Solutions Providers In Europe

Dan Bieler

Several Forrester analysts attended Huawei’s 12th global analyst summit in Shenzhen recently. This post will focus on the perspective of European CIOs; in our view, they should take note of Huawei due to the firm’s growing strength in the European enterprise segment. For Forrester’s global perspective on the event, please refer to our upcoming report. For European CIOs, the main takeaways of the analyst summit are that Huawei is:

  • Strengthening its financial performance. Huawei’s enterprise divisions — which the firm just announced in 2011 — impresses with its strong growth rates. Huawei grew its enterprise activities by 27% to $3.1 billion in 2014; two-thirds of that growth came from outside China, with Europe accounting for the largest share of that. Huawei’s goal is to grow its enterprise business to $10 billion by 2019. Outside of China — which still accounts for 38% of Huawei’s revenues — EMEA will continue to play a critical role for Huawei, as it accounts for 35% of revenues. In EMEA, Huawei reported revenue growth of 20%.
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