China's Tech Market Will Reach $136 Billion In 2015

Frank Liu

Slower economic growth will become China’s “new normal.” To combat this, the Chinese government is launching a series of initiatives to drive tech market growth in 2015, including economic stimuli across industries, starting an Internet Plus project, and creating new free-trade zones. My latest report, China Tech Market Outlook: 2015, provides the drivers behind Forrester’s forecast that China’s tech market will reach $136 billion in 2015 — representing year-over-year growth of 9% in US dollars. What’s more, China’s share of total Asia Pacific tech spending is still growing; it increased to 25% in 2014 and will rise further to 27% in 2015.

Key tech market trends in China in 2015 include:

  • Purchases of computer equipment will remain the largest segment of China’s tech spending. The massive increase in the number of mobile consumers in recent months has led to an explosion in demand for digital content and personal cloud services. Online content and platform providers are investing heavily in cloud infrastructure to efficiently respond to this rising demand.
  • Communications equipment spending growth will be flat.The country’s three major telcos all started building nationwide 4G base stations in 2014. This momentum will continue in 2015, even though the growth in volume will be offset by the falling prices of communications hardware as technologies and markets mature.
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Google's Mobile-Friendly Search Will Bury Your Mobile-Unfriendly Sites

Ted Schadler

Customer are mobile first. Is your website? Are all your webpages?

Google did something important for your customers today: it changed its ranking algorithm for searches on smartphones. If Google deems your web page mobile-unfriendly, then it will be devalued in the search rankings. Your page will be buried.

My colleagues Mark Grannan, Jennifer Wise, Deanna Laufer, Peter Sheldon, and I capture the problem and how to fix it in a new Forrester report: Don't let this good crisis go to waste -- use it to convince your company to make the mobile mind shift and invest in mobile-friendly experiences. I summarize the report here.

 

1. The digital world is web.

With 177 million active websites in the world and enterprises reporting 268 websites (with sometimes 10s of thousands of webpages), this amounts to 10s of billions of webpages that are either mobile-friendly or not. This is not a small problem. It's a problem with global scale and complexity.

Source: Netcraft.com

 

2. Customers are mobile.

Our data is irrefutable: 2/3rds of the global online population uses smartphones. And 86% of US smartphone owners use Google to find websites.

Base: 1,680 US online smartphone owners (18+)

Source: Forrester's Consumer Technographics Behavioral Study, Q1, 2015

 

3. Most enterprise webpages are designed for PCs only.

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Go Play In The Innovation Sandbox

Tyler Shields


RSAC INNOVATION SANDBOX FINALISTS SPUR INGENUITY IN SECURITY: CISOs SHOULD LOOK TO FINALISTS FOR FUTURE DIRECTION AND INVESTMENT

On Monday April 20, 2015 the biggest security event in the USA, the RSA Conference, kicks off with the ever popular Innovation Sandbox event. This event brings in hundreds of submissions from security startup companies around the world all hoping to make the top 10 finalist list, and eventually be declared the winner. The Innovation Sandbox has been running for the last ten years resulting in a great quantity of security startup data to analyze along with some very notable winning companies.

Previous sandbox winners include SourceFireImpervaAlertEnterprise and most recently Red Owl Analytics. Many security companies have been declared finalists, fared well with additional funding, and found reasonable financial success, specifically acquisition. The graph to the left shows the acquisition trends for Innovation Sandbox finalists since 2009. Security start up success is on the rise and the Innovation Sandbox is there to build on that success.

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Measure and improve contact center agent experience in order to improve customer experience

Ian Jacobs

Contact center agents have a huge impact on customer experience. Unhappy contact center agents equal unhappy customers. It's that simple. Contact center agents who feel disengaged, unhappy with their job or their lot in life, or are simply having a bad day can make a customer's contact center experience seem like root canal surgery. Given that, measuring how happy and engaged agents are and then improving the agent experience should be a priority for any company focused on driving improved customer experiences.

We’ve written before about the new breed of contact center agents and what types of tools they need to succeed at their job. Technology, however, represents just a piece of the puzzle. Firstly, not all contact center tools drive positive agent experience. For example, tools too focused on making the agent experience efficient risk allowing agents to just breeze through tasks and disengage their mind — and their judgment — from the processes of serving customers. Secondly, while tools are important, they are not the only issues that influence the agent experience.

Of course, improvement begins with measurement and benchmarking. Our research shows that, to date:

  • Agent surveys have not provided contact center pros the insight into agent experience they need. Using HR-style surveys turns up the usual array of woes: bad bosses, bad coworkers, or bad coffee. Contact center pros cannot tackle these issues, even though they may be important to the overall work environment. On the other hand, targeting surveys to technology issues provides actionable insights on how to improve the contact center experience.
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Is Your Business Ready For A Digital Acceleration Team?

Nigel Fenwick

Empowering a central team to set digital strategy, provide common platforms, and provide specialist resources can help business units develop their digital maturity by embracing a set of common standards while still tailoring their customer experience to their specific market needs. Yet many central teams run into difficulty. They fail to clearly communicate their purpose and remit, they struggle to navigate the realities of corporate politics, and they forget to demonstrate their successes through clear metrics. CIOs looking to accelerate their firm's digital journey by building a digital acceleration team should first assess their organization's readiness and appetite (see Figure).

Digital accelerator checklist

For more on establishing a digital acceleration team, see my latest research: Your Company Needs A Digital Acceleration Team.

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Nokia Takes Over Alcatel-Lucent: Get Ready For A Shift In The Global Network Solutions Vendor Landscape

Dan Bieler

Nokia and Alcatel-Lucent have entered into a memorandum of understanding under which Nokia will make an offer for Alcatel-Lucent in an all-share transaction. The deal values Alcatel-Lucent at €15.6 billion: Alcatel-Lucent shareholders will own 33.5%, with Nokia shareholders owning 66.5%.

Is this a “marriage of desperation” or two network solution vendors coming together to work on a broader vision for an increasingly connected world? The combination of two relatively small network solutions vendors won’t automatically translate into the formation of a new network solutions powerhouse. Most importantly, will the new Nokia truly differ from its main rivals Huawei and Ericsson as an end-to-end carrier network solution provider? Nokia’s competitors will not only face a larger new competitor but also experience the formation of a different one. This deal will mean that:

  • Nokia joins the small club of converged network solutions vendors. Customers expect experiences that support multiple screens and applications; equipment vendors must deliver solutions for the Internet of Things (IoT) and industrial Internet requirements by offering next-generation network technology and services. Nokia can’t cater to this market demand alone.
  • Nokia rejoins the premier league of network solutions providers. The deal means that Nokia’s total pro-forma 2014 revenues will more than double to €25.9 billion. The new Nokia will be the second-largest provider of carrier-grade telecoms networking solutions, with revenues in this segment of €25.0 billion, just behind Ericsson (€25.1 billion) but ahead of Huawei (€23.5 billion). With its newfound size, Nokia will gain access to scale benefits.
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Four Strategy Tips In The Age Of The Customer

Nigel Fenwick

Blog word cloudI just concluded six months of research looking at how firms plan strategy in the age of the customer. Perhaps unsurprisingly, I concluded that companies that fail to adapt to increasingly powerful customers, and disruptive competition, will not simply face near-term disruption — they risk their long-term viability.

I also found evidence of firms making changes in how they plan business strategy. High-performing companies look at strategic planning as a continuous process with a focus on customer value and loyalty.

In my latest report on strategy, I identify new responsibilities for CIOs, CMOs, and business-unit leaders in strategic planning. The report focuses on three ways CIOs and CMOs must step up and serve as a shaper of customer-obsessed business strategy that generates greater loyalty and drives better performance.

To succeed in the future, CIOs need to collaborate effectively with peers across the C-suite, especially the CMO and business-unit leaders, to build strategies and a shared business technology agenda, focused on customer outcomes.

Here are four tips from the research:

1.     It's time to separate strategic planning from the annual budget cycle. Annual strategic plans hold firms back from quickly reacting to fast-evolving markets. While strategies must be funded, continuous test-and-learn approaches will more quickly reveal opportunities and weaknesses.

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RSA Conference 2015 – What We Hope And What We Expect To Hear

Chris McClean

Forrester’s Security and Risk team will have a lot of analysts out once again for this year’s RSA Conference. After all these years (12 for me!) we have to balance our excitement to see old friends and colleagues with our cynicism that says it will be a week of empty buzzwords just slightly updated from those we heard last year.

We expect this to be mostly a fashion show – or what my old friend and colleague Rachel used to call the security industry’s debutante ball. We will hear far too many definitions for words like threat intelligence, platform, and integration; and we won’t hear the phrases case study examples, customer trust, or customer value nearly often enough.

But rather than dwell on our skepticism, here are a few things we’re excited about going into next week:

  • The Innovation Sandbox is always a highlight. Most of our team will come by to see the finalists on Monday, and you should look for our upcoming blog posts, tweets, and a report or two examining some of the vendors that have competed in this annual contest.
  • The expo dress code will be a whole lot classier. I’m personally glad to see RSA’s leadership with the new vendor dress code guidelines this year. (And kudos to our former colleague Chenxi Wang for her role in this change.) Hopefully that means everyone’s more focused on the substance of vendor messaging.
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Oracle Aims To Put “The Customer” At The Core Of The Oracle CX Cloud

Kate Leggett
This is a guest post by Fraser Tibbetts, Researcher on the AD&D team covering sales force automation software.
 
Oracle’s first ever Modern CX Conference in Las Vegas last week, with roughly 3,000 attendees, focused on Oracle’s vision for the CX Cloud suite of products. Instead of the usual focus on technology, executives focused on products that recognize how the customer has more power than ever. This aligns with Forrester's age of the customer research. It is encouraging to hear that same message from Oracle’s CEO, Mark Hurd, and from the Oracle product team leads.
 
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Contact Center And Customer Service Metrics Must Support Broader Company KPIs

Ian Jacobs

OK, it is certainly a cliché and clearly suffers from an incomplete view of the world, but many contact center executives would still nod their heads in agreement with the statement, “You can’t manage what you can’t measure.” Contact centers generate a huge volume of data, and everyone from agents on the floor to CEOs in their corner offices would benefit from being presented with actionable analytics based on that data. However, turning that data consistently into actionable knowledge that is useful to improving performance remains challenging. The key questions for contact center professionals around this data are: 

  • What do you measure?
  • How do you present the data from those measurements?
  • What do you do with those measurements?
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