Lenovo recently announced record results for the third quarter of the 2013/14 fiscal year: the first time that the firm has exceeded US$10 billion in revenue in a single quarter. Lenovo has continued to prioritize maintaining or increasing its share of the PC market — the majority of its business. This strategy has paid off: Lenovo’s PC business (laptops plus desktops) grew by 8% year on year — in stark contrast to its slumping rivals. Lenovo can attribute its success to a strategy that sacrifices profit to keep prices competitive, maintains a direct local sales team, and retains channel partners after acquisitions.
Forrester believes that the mobile mind shift is one of four key market imperatives that enterprises can use to win in the age of customer. Lenovo has gotten a good start on this journey with its effort to enhance its mobile-related capabilities. Although the coming Motorola deal may have a negative impact on Lenovo’s performance over the next three to five quarters, the firm believes that mobile can change its business — and not just its digital business. In the next two to three years, Lenovo’s key strategy will be to provide customers with mobile devices and related infrastructure that will address their mobile mind shift. In particular:
Readers of this blog and of my syndicated reports know that I’ve spent a great deal of time lately researching and analyzing the market for wearable devices and the emerging wearables ecosystem. I’m excited to announce that I’ll be co-presenting a talk at SXSWwith Jen Quinlan (Twitter: @QuirkyInsider) about a specific sub-segment of the wearables market – how wearable devices, in concert with the Internet of Things, can help people overcome various sorts of disabilities.
Jen conceived of this talk, and was kind enough to invite me to collaborate with her. And I was thrilled, particularly when I heard about the topic she had proposed. Why? I’m interested – and hope you will be too – because:
Indian firms have become cognizant of the fact that they have entered the age of the customer — an era in which they must systematically understand and serve increasingly powerful customers. These firms are leveraging mobility to empower their employees to win, serve, and retain customers. For example, the Tab Banking initiative by ICICI Bank uses tablets to enable sales representatives to visit customers to give them the convenience of opening bank accounts without leaving their home or office. However, since consumer mobile technologies have entered the enterprise, the management of mobile device platforms has become more complex; enterprises have started realizing that security controls should be around the apps and the data and not the device. In India, mobile application management (MAM) has leapfrogged other strategic telecom and mobility priorities in 2014 (see the figure).
The importance of supporting a workforce that wants (and has come to expect) to work anywhere, anytime, and on any device has necessitated a paradigm shift in security and risk (S&R) mitigation approaches and techniques. S&R professionals must therefore implement a security program that centers on mobile applications. This is because:
Driving home from the Boston Logan airport in the winter can be an adventure. Fortunately, local governments have set up a means for reporting one of the perils — potholes. I know this because an overhead digital sign told me the number to call if I saw one. I appreciate the opportunity to help out, but the inefficiencies in this system make me cringe! If I see a pothole, I have to remember where it was until I have a chance to write it down. I also have to remember the nearest cross-street or landmark to help crews identify the proper location. And if I come across a second pothole before writing down all the first information? No chance I remember either. Does anyone remember playing the telephone game as kids? This is the modern version.
Many of our clients call with a similar challenge — how do we modernize manual processes for a digital/mobile world? With that in mind, how are many solving this today?
Create a mobile app. Mobile first! Everything is mobile these days, so let's jump on that train! While this is a good start, it’s important to understand the context of the user. There’s a good chance they’re using the GPS app on their phone to find the optimal way home. To use a new app, I have to go to the app list, find the new “Report Pothole” app, wait for it to initialize, and then report the incident. By then I’m no longer at the physical location and thus haven’t solved much of the manual problem. Solving this requires a better first step…
Many of you will be in the midst of a contract negotiation or maintenance renewal with BMC and/or CA at the moment, because both software vendors do a large proportion of their license deals in the January to March quarter as it’s their financial year ends on March 31. It’s a sourcing cliché that software companies give their best discounts at their financial year end, but just because you are making a purchase in month 12 doesn’t mean that you are getting a good deal. Through client interactions, I see a lot of software deals and I am often surprised by the gulf between the latest deal on the table and what I would consider to be a market best deal – one that sets the relationship up for mutual success, balancing price, flexibility and risk.
Buying software from powerful providers such as BMC and CA is very different from buying hardware, services and non-IT categories. Unfortunately, many sourcing professionals seem to think that they’ll look weak if they engage external expert help to coach them during a negotiation, but it isn’t a question of just buying additional haggling advice (although that can sometimes help), it’s really a question of buying deep, current market knowledge. Unless you have that, you risk:
Organizations in Asia Pacific (AP) have become cognizant of the fact that they have entered the age of the customer — an era in which they must systematically understand and serve increasingly powerful customers. In the past two years, most AP firms have primarily focused on using mobile apps to connect their organizations with internal employees. However, in the age of the customer, this trend will reverse. Results from Forrester’s Forrsights Budgets and Priorities Survey, Q4 2013 show that 44% of AP technology decision-makers will prioritize building a mobile strategy for customers or partners, while only 39% will prioritize it for employees. Firms in Australia, Indonesia, India, and China will lead the region.
In order to compete and win in the age of the customer, organizations cannot be simply “customer-centric” anymore — they must become “customer-obsessed.” To do so, firms must embrace the mobile mindshift and build mobile systems of engagement. This can be done by leveraging social, cloud, and predictive analytics to deliver context-rich mobile applications and smart products that help users decide and act immediately in their moments of need. Such systems will focus on people and their immediate needs in context rather than processes, as is the case with traditional systems of record.
Building mobile systems of engagements is even more critical for firms in AP, because:
Our global clients are increasingly inquiring about the capabilities of their preferred service providers in ASEAN and Indonesia in particular. I recently spent some time in Indonesia and met leading local and global service providers there. The key takeaways from these meetings? Not surprisingly, the strengths and weaknesses of IT service providers in Indonesia differ by industry, domain, and service line. As a result, clients need to be careful and orient their vendor selection process toward the right set of service providers. Depending on the requirements, the right provider might be based in Indonesia — and it might not. More specifically, sourcing professionals should realize that:
MNCs looking for traditional infrastructure services can rely on a good availability of skills. Most MNCs setting up shop in Indonesia are looking to replicate the enterprise architecture defined at their headquarters in the US, Europe, or Japan. The presence of local and foreign SIs in Indonesia with solid infrastructure skill sets across major technologies means that they won't face too many challenges finding the right partner at the right price point.
The findings presented in an article by German magazine Computerwoche published on Feb 11, 2014, are a forceful reminder that messages about excessive data capture via mobile apps seem to have gone unheeded so far. As reported, tests by TÜV Trust IT established that “almost one in two mobile apps suck up data unnecessarily”.
What’s “unnecessary” of course depends on your viewpoint: it may seem unnecessary to me if my mobile email app captures my location; the provider of the app, on the other hand, could be capturing the information to provide me with a better service and/or to make money from selling such data to a third party. The trouble is that I don’t know, and I don’t have a choice if I want to use the app. From a consumer perspective, this is not a satisfactory situation; I’d even go as far as calling it unacceptable. Not that it matters what I feel; but privacy advocates and regulators are increasingly taking notice. Unless app providers take voluntary measures, they may see their data capture habits curtailed by regulation to a greater degree than would otherwise be the case.
Let’s step back a moment and consider why so many mobile apps capture more data than is strictly speaking necessary for the functioning of the app:
Forrester began surveying global banking platform deals in 2005. For 2013, we evaluated about 1,600 banking platform deals submitted by 29 vendors and located in about 130 countries. Shortly, we will publish the final results of this evaluation. Today, I want to offer some initial trends:
Counted deal numbers are the second highest ever. The number of counted new named deals is the second level we have yet recorded. The number of new-named deals shrunk; extended business deals increased and the banking platform market grew.
The banking platform market shifted gears again. Top 10 vendors still represented the vast majority of new named deals that we counted, but fewer vendors than in 2012 enjoyed more than ten percent of all counted deals.
Banks' total assets indicate three vendor categories. One group of vendors won very small banks only and another group’s projects reached up to medium sized-banks. Only six vendors’ clients touch the total assets range of tier 1 banks (and go beyond it).
All the details will be available with a series of forthcoming reports focusing on the success of the participating vendors, the regional success perspective, as well as delivered functionality. If you do not want to wait: I will share some of the results during a Forrester Teleconference on February 27 As always, let me know your thoughts: jhoppermann (at) forrester.com.
We are now less than two weeks away from our annual sojourn to the RSA security conference. RSAC is a great time for learning, meeting and making friends. (Please hold cynical remarks; RSAC is what you make of it.) As the date grows near and my excitement grows, I am preparing my mind and patience for the ubiquitous silver bullet marketing that is predestined to appear.
One of these silver bullets will be the term "actionable intelligence." You will be surrounded by actionable intelligence. You will bask in the glory of actionable intelligence. In fact, the Moscone expo floor will have so much actionable intelligence per capita you will leave the conference feeling like the threat landscape challenge has been solved. Achievement unlocked, check that off the list. Woot!
Well not so fast. I frequently talk to vendors that espouse the greatness of their actionable intelligence. Whenever I hear the term actionable intelligence I want to introduce them to Terry Tate, Office Linebacker. Terry Tate first appeared in a 2003 Reebok Super Bowl commercial.