The Forrester Wave: CRM Suites For Large Organizations, Q1 2015

Kate Leggett

The CRM market serving the large enterprise is mature. A great amount of consolidation has happened in the last five years. For example, Oracle, focused on providing consistent end-to-end customer experiences across touchpoints, has acquired a great number of point solutions to round out its customer experience portfolio. SAP, like Oracle, aims to provide consistent end-to-end customer experiences via its breadth of products and has also made a few key acquisitions. Similarly, Salesforce has made a series of moves to round out the Service Cloud. It has used this same tactic to broaden its CRM footprint with the notable acquisition of ExactTarget for business-to-company (B2C) marketing automation (2013).

The large CRM vendors increasingly offer broader and deeper capabilities which bloat their footprint and increase their complexity with features that many users can't leverage. At the same time, new point solution vendors are popping up at an unprecedented rate and are delivering modern interfaces and mobile-first strategies that address specific business problems such as sales performance management, lead to revenue management, and digital customer experience.

The breadth and depth of CRM capabilities available from vendor solutions makes it increasingly challenging to be confident of your technology choice. In the Forrester Wave: CRM Suites For Large Organizations, Q1 2015, we pinpoint the strengths of leading vendors that offer solutions suitable for large and very large CRM teams. Here are some of our key findings:

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What We Talk About When We Talk About Microsoft Azure In China

Charlie Dai

Have you seen the movie Birdman — the one that just won the Best Picture and Best Director Oscars? It’s about a middle-aged man who was once a popular movie star but has been criticized throughout his career and how he finally achieved a breakthrough performance and found great success in a Broadway production of the play What We Talk About When We Talk About Love.

The story of Microsoft Azure is similar. Microsoft was hugely popular in the age of the PC but has sailed into troubled waters in the cloud era. But now — a year after Azure’s commercial launch in China — CIOs and EA professionals must understand how and where Azure might impact their existing MSFT technology investments to achieve business transformation. Azure is one of the leading forces driving cloud adoption in China. We attribute this to the progress that Microsoft has made by:

  • Expanding product offerings.Microsoft Azure now has local products in four key categories: compute, network, data, and application. Beyond basic components like virtual machines, websites, storage, and content delivery networks, Azure also has advanced features that are important for Chinese customers to address their unique challenges, including mobile services for the rapid development of mobile apps to accommodate the massive shift to mobile; a service bus for integration to eliminate information silos in the cloud; and HDInsight for big data capabilities to gain the customer insights necessary to compete with digital disruption from local Internet companies.
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Lexmark Acquires Kofax- Becomes A Major Force To Help Companies Digitize Operational Processes

Craig Le Clair

This latest Lexmark move is harder to assess than previous major acquisitions. Give  the Perceptive acquisition an  A, Brainware  a B -,  and Pallas maybe a  C+. The Kofax merger, on the other hand, has two legitimate views and lets start with the positive. Kofax has indeed assembled a range of complimentary components that fit well with Lexmark's market ambition. The key asset of interest is the TotalAgility (KTA) platform and its related components. These enhance Lexmark's process platform that was based on the Pallas, too low a market share and Perceptive’s document-focused workflow. KTA, by contrast,  has a true case platform and is well integrated with the industry-leading capture platform. Kofax has never had been in the ECM space. They are now with one of the strongest. And the list goes on. Brainware will boost forms processing for Kofax' invoice processing customers. The AltoSoft BI tool adds analytics strength that Lexmark did not have. Data integration is improved with Kapow. A top E-Signature product (Softpro) and a growing CCM platform from AiA are all good pickups. These last two fit well with Lexmark’s transitioning MPS business.

The drawback here is that Kofax’s go to market positioning and execution is nowhere near complete, and needs entrepreneurial energy and execution to get there. Perhaps Lexmark can help - but Kofax will now be part of a larger company that has transition issues of its own. Perhaps more importantly, Lexmark may find itself devoting significant investment dollars to purchase a legacy document capture business that has moderate long term value. We estimate around $200m of Kofax’ current business derives from this market with revenue in this area more likely to decline then accelerate. Lexmark would then find itself devoting a lot of management attention to minimizing the impact of that decline.

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Analyst Spotlight Podcast With Merritt Maxim

Stephanie Balaouras
This month’s S&R Analyst Spotlight Podcast features a slight change to our usual program: we have a guest host! Chris McClean, our San Francisco-based Research Director, interviewed the newest addition to our analyst team, Merritt Maxim. Merritt’s coverage areas include identity and access management, access governance, federation, authentication, and role design and management. In our podcast, Maxim tells us about his career before Forrester, his planned coverage area and his current must-read book on security. 
 
These Analyst Spotlights are all included in S&R’s First Look newsletters. Email srfl@forrester.com to be added to the list!
 
To download the mp3 version of the podcast, click here.
 

Merritt Maxim Image

 

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Samsung Commits To The Business Segment At CeBIT 2015 With IoT Solutions

Dan Bieler

Samsung launched its business offerings at CeBIT 2015. Samsung Business is a new brand and combines Samsung’s Knox for security and enterprise mobility management, Smart Signage, and printing. Samsung Business offers industry-specific solutions for retail, education, hospitality, transportation, healthcare, and financial services.

In retail, Samsung offers digital mirror and video wall devices. School Solution integrates its mobile devices with interactive learning tools. Its Smart Hotel Solution offers premium in-room experience and information bulletin touchscreens. The Preventive Mobile Cardiac Rehabilitation solution enables real-time monitoring of chronic conditions. For financial services, Samsung provides secure document handling and printing services. And its transportation solution provides real-time information and analysis of data. My main takeaways:

  • Samsung Business is a good first step toward catering to businesses. Samsung has enormous potential to leverage its existing consumer device expertise and experiences, especially in the B2B2C space. Samsung is right to opt for an open and collaborative Internet of Things (IoT) ecosystem to overcome the challenges of platform compatibility, data analysis, and security. Samsung has a long track record in focusing on user experience. This should help it deliver high-quality and intuitive-to-use business solutions.
  • Samsung’s sector solutions are still rather basic. At this stage, Samsung is right to focus on a handful of offerings that it is familiar with and can deliver with high quality. However, Samsung will need to drill down deeper into business processes and business models to become successful in the emerging world of IoT longer term.
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Beyond Show-Me-The-Money: Tech Jobs Require More Than Tax Incentives

Jennifer Belissent, Ph.D.

 

A Mission of MercyEconomic development means different things to different people. It depends on their context.  In my early work as a Peace Corps volunteer in Africa development meant bringing running water to villages.  My town was the new recipient of a public water system from the Danish Aid Agency.

But broadly speaking, economic development initiatives are efforts to attract investment to a region.  For most places, it’s not about running water but about creating jobs.  And, some of the best jobs out there – in demand and high paying – are in technology or in software development more specifically.  Software is the future.  And, many cities, states and countries want to get in on the act.  Yes, many of the software development jobs will go to product development shops but they need to hire from somewhere and government leadersare hoping to bring those jobs to their constituents.

A classic strategy for attracting investment to a region is to provide tax incentives.   We’ll give you a break on your corporate taxes for a period of time if you bring your new headquarters or factory or research facility to our region.  A quick search reveals many such programs. Apparently Texas is “wide open for business” and is willing to provide tax abatements and local incentives. 

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How Data Can Enable Business Disruption: Traditional Retailers Must Take Note Of The Sharing Economy

Dan Bieler

Recently, I talked with the CEO and founder of reBuy about the shifting dynamics in the retail sector as a result of digitalization. The use of data has evolved to the point where data has become the enterprise’s most critical business asset in the age of the customer. The business model of reBuy reCommerce — the leading German marketplace for secondhand goods — can help CIOs understand how the intelligent use of data can significantly disrupt a market such as retail.

The case of reBuy offers interesting insights into how the wider trends of the sharing and collaborative economy affect retail. If you can buy a good-quality used product with a guarantee for half the price, many people will not buy the product new. Many consumers increasingly accept product reuse and see it as an opportunity to obtain cheaper products and reduce their environmental footprint by avoiding the production of items that wouldn’t be used efficiently. The reBuy case study highlights that:

  • Business technology is taking the sharing economy into new realms. The reBuy business model demonstrates that consumers are starting to push the ideas of the sharing economy deep into the retail space. CIOs in all industries must prepare for the implications that this will have for their businesses.
  • Standalone products are at particular risk of sharing dynamics. The example of reBuy shows that businesses that sell plain products will come under even more pressure from shifting shopping behavior, where people are increasingly satisfied with buying used goods. These businesses need to add value to those products that are not available for secondhand purchase.
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Digital Experience Personalization Is Hollow Without Predictive

Rowan Curran

There’s no other way to slice it: competition for digital audiences is brutal. Intolerance for poor performance and disengaging experiences drives customers to competitor’s sites more quickly and more permanently than any time in history. Users increasingly demand digital experiences that personalize to their immediate needs and adapt to the current context, not treat them as a market or demographic segment.

In recently published research, we found that even as expectations soar, enterprises are personalizing with methods that are too unsophisticated, too opaque, or too convoluted to meet the complexity and mutability needed to serve individuals.  Persona-based segmentation is too simplistic to meet current, much less future, customer expectations. Some solutions provide predictive analytics capabilities but are limited to a few algorithms or black-box methods (e.g. neural networks) are not easily adaptable to new data or scenarios. Those that rely heavily on rules have become morasses, some customers needing to manage and maintain hundreds or thousands of rules to guide digital experiences.

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Facebook and HP Show Different Visions for Web-scale

Richard Fichera

Recently we’ve had a chance to look again at two very conflicting views from HP and Facebook on how to do web-scale and cloud computing, both announced at the recent OCP annual event in California.

From HP come its new CloudLine systems, the public face of their joint venture with Foxcon. Early details released by HP show a line of cost-optimized servers descended from a conventional engineering lineage and incorporating selected bits of OCP technology to reduce costs. These are minimalist rack servers designed, after stripping away all the announcement verbiage, to compete with white-box vendors such as Quanta, SuperMicro and a host of others. Available in five models ranging from the minimally-featured CL1100 up through larger nodes designed for high I/O, big data and compute-intensive workloads, these systems will allow large installations to install capacity at costs ranging from 10 – 25% less than the equivalent capacity in their standard ProLiant product line. While the strategic implications of HP having to share IP and market presence with Foxcon are still unclear, it is a measure of HP’s adaptability that they were willing to execute on this arrangement to protect against inroads from emerging competition in the most rapidly growing segment of the server market, and one where they have probably been under immense margin pressure.

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Get Input From The Right Stakeholders When Creating A Business Case For CRM

Kate Leggett

This year, organizations across industries show strong interest in revamping the technologies that they use to engage with customers. Our recent data indicates that over half of enterprise organizations have already implemented a CRM solution — and a high percentage are investing more to upgrade and expand their tool sets in the next few years. But even in this improving economy, senior business leaders are closely scrutinizing the ROI they expect from overhauling customer-facing processes and supporting technologies.

You need to build a business case correctly or risk launching CRM initiatives with a low chance of delivering clear business results. Almost as bad, poor communication of anticipated payback can prevent you from gaining funding for projects that would provide strong benefits.

So, what does a solid business case do for you?

  • It speeds up the project approval process. Clear communication leads to fewer passes through the funding process as everyone understands the goals and benefits of the project.
  • It increases  project success. When everyone knows the reasons, goals, and bounds of an initiative, project success improves. The business case serves as the North Star that keeps the project focused on key business goals and outcomes which are measurable and quantifiable.
  • It takes (some) emotion out of decisions. Decisions that involve a choice among competing platforms of large and powerful technology vendors often turn into emotionally charged battles between opposing camps within the organization. Moving the discussion to one of metrics and numbers minimizes the emotion and returns some level of objectivity back into the process.
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