What’s A Facebook “Like” Worth?

Facebook LikeIt seems everyone’s obsessed with Facebook’s IPO right now. And while CMOs are beginning to understand the possibilities of Facebook, and other social technologies, to connect and engage with customers, many CIOs remain unclear on the value of Facebook.

A question many business executives ask is this: “What’s the value of having someone like your page?”

On its own, maybe not much. But the true potential lies in the ability to collect insights about the people who like brands, products or services – be it your own or someone else’s.

For example, the chart below shows the percentage of consumers by age group who have “liked” Pepsi or Coca-Cola. These data suggest Coca-Cola is significantly more popular with 17-28 year olds than Pepsi, while Pepsi appears more popular with the 36-70 crowd. I pulled these data points directly from the Facebook likes of each of the brand pages using a free consumer tool from MicroStrategy called Wisdom. Using this tool I can even tell that Coca-Cola fans are likely to also enjoy the odd Oreo cookie and bag of Pringles.

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How I Turned My iPad2 Into A MacBook … Well Almost!

As my regular readers know, I try to provide something thought-provoking for most of my blog posts. But every so often something comes along that makes me go “wow, I really need to share this.” This is one of those times.

Like many analysts here at Forrester, I have an iPad (my own, not the company’s) which I often use for work — especially when travelling (which we do a lot). And like many people, I’ve grown used to the tactile feel of a real keyboard — so every now and then I’d yearn for a real keyboard to use with my iPad.

Apple Wireless KeyboardBeing an Apple fan, I first bought the Apple Bluetooth keyboard. While this is a good keyboard, it has a couple of major flaws for my use. Firstly, it doesn’t actually hold the iPad, so you have to position your iPad somewhere you can see it while typing. For this reason you can’t easily use it anywhere there isn’t a good flat surface near you on which to stand your iPad. And secondly, it’s not very convenient to travel with as it’s so long — who wants to walk around with a sleek iPad and a huge keyboard? I needed something more compact.

Then while building my Amazon wish list for the holidays I came across a nifty little keyboard that seemed too good to be true. On Amazon it’s called an "Apple iPad 2 Aluminum Bluetooth Keyboard Case Cover Stand" supplied by MiniSuit. I couldn’t resist adding it to my wish list.

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Does BT Need A New Report Card?

It's time to re-think the report card used by CIOs to report on BT performance – tomorrow’s BT CIOs must look beyond the traditional IT Balanced Scorecard (BSC). 

I realize this is sacred ground for many people in IT (and some of my colleagues here at Forrester), so let me explain myself before I receive a barrage of complaints. The philosophy behind Business Technology (BT) recognizes technology as integral to every facet of every organization – as such, IT is very much an integral part of the business; we can no longer talk about “business” and “IT” as if referring to two distinct things. I’m suggesting that in the age of BT, we need a new scorecard that better reflects the impact of BT on the business.

A great deal has been written and published on the Balanced Scorecard, including many great pieces of research  by my colleague Craig Symons, such as his recent report "The IT Balanced Scorecard: Customer/Partner Metrics Revisited." I'm not suggesting we throw this out by any means – CIOs absolutely need to use a balanced scorecard to run an efficient and effective BT operation (see fig 1).

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How To Get Beyond Alignment

 

It’s the perennial issue for many CIOs and often the No. 1 challenge for new CIOs: “How do I align IT with the business?” And while this is perhaps the most important challenge for IT groups struggling with a bad reputation across the business, it’s certainly not the most important challenge for IT groups with a solid track record of success. For these teams, the challenge is how to move beyond alignment.

In the report Beyond Alignment: BT Strategic Planning, I highlight how critical it is for IT to help formulate business strategy. The research suggests that how a firm develops and manages business strategy is pivotal to the question of how IT can move beyond alignment. Unfortunately, there are a number of challenges with this:

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Isn't It Time To Move Beyond Alignment?

It's strange, but some things about the CIO role change very little from year to year -- and one of the most consistent priorities for CIOs has always been achieving better "alignment" with “the business.” But should this really be a top priority?

I can’t help it, I really dislike the term “alignment” -- it suggests to me that CIOs are trying to bring together two separate and distinct things: “the business” and “IT.” But the really successful CIOs already know this specific language sets everyone up to perceive IT as something apart from the business. And we all know that every business has technology woven intricately throughout -- to suggest technology is not a vital part of business success is simply wrong. So instead of talking about aligning IT with the rest of the business, we need to focus on ensuring the business is using technology to achieve defined goals and deliver business results.

Unfortunately, for many companies, IT appears to be in the software development business -- responding to “orders” from “internal customers” and busily delivering applications. CIOs need to ask: “what business are we in?” For most CIOs, the answer will undoubtedly NOT be the technology business. For these CIOs, the most precious skill IT can bring to the organization is business knowledge and process understanding coupled with technology know-how. By helping identify how technology can change the business dynamics and move the organization more efficiently toward its objectives, IT becomes the foundation for competitive advantage. In other words, IT needs to be in the business of helping shape business strategy.  

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Netflix Revises Strategy ..... Again!

Netflix has come to its senses and revised its strategy in favor of the customer. After a recently announced decision to split out its DVD business from its streaming business, Netflix received a barrage of criticism from customers -- including my last blog post, where I questioned the wisdom of this strategy. Today, CEO Reed Hastings announced a 180-degree about turn -- well done Mr. Hastings. While it would surely have been wiser to have made a better strategic decision in the first place, changing course in face of customer criticism at least shows Netflix is still willing to put its customers first.

This turn of events highlights the difficulty of getting strategic planning right. While abstract analysis of strategic options may point to an optimal choice for any set of circumstances, any strategic analysis which ignores customer impact is fatally flawed. As my colleague Luca Paderni and I pointed out in our recent keynote at the Forrester CIO-CMO Forum, companies must become customer obsessed. Indeed, we highlighted Netflix as an example of a company that had succeeded in large part because it was customer obsessed and had mastered the customer data flow in a way that increased customer value.

There is a lesson here for us all ... success in the future will go to those companies willing to become customer obsessed and put the customer ahead of Wall Street.

Netflix: Can A Company Really Be This Inept And Succeed?

NetflixIf you thought Netflix handled its earlier price increase badly, just wait till you hear the complaints about its latest move. In a letter to subscribers sent today, Reed Hastings, Netflix Co-Founder and CEO, opens with:

“It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes.” – Hmm, perhaps a little bit of an understatement! (Read the full text at the end of this post.)

So members like me might be lulled into the false impression that this letter was going to be an apology in an attempt to smooth things over. Boy, was I wrong. Instead Hastings goes on to say the following (my paraphrasing, not his):

  • Because you are such a good customer, renting both DVDs and streaming, we’re going to degrade your service.
  • We know you like the fact that you can easily move movies between your online queue and your instant queue, which is why we’re going to stop you from doing that.
  • We know you liked the fact that a movie in your DVD queue is added to your instant queue automatically when it becomes available for instant viewing – so we’re going to stop allowing that.
  • We recognize that our website, with its easy-to-use features is one of the reasons you use our service, so we decided to give you twice the benefit by breaking it into two websites and asking you to use the two sites instead of one.
  • We won’t be increasing our prices as a result of reducing your service levels – we already did that.
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Define Your Social Ecosystem

One of the many interesting topics of discussion we get into in our Social Business Strategy workshops is around the social ecosystem. This is the name I have given the collection of business capabilities potentially enhanced by one or more social technologies.

First let me define social technologies. Note I’m using the word “technology” quite deliberately in place of the more common term “social media” because social media is too often associated with consumer-facing technology as deployed in support of marketing. In defining the entire social ecosystem I prefer the more generic “technology”. I define social technology as “any technology that enables one-to-many communications in a public forum (or semi-public if behind a security firewall)”.

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Are You Ready To Master The Customer Data Flow?

If you read my last research report and previous blog post, you’ll know that I’m working with Luca Paderni on a series of research reports examining the IT and marketing relationship. In particular, we’re examining what IT and marketing are doing to master the customer data flow (see Figure 1).

 IT and marketing must collaborate to master the customer data flow

At the upcoming CIO and CMO forum, Luca and I will be presenting a keynote examining the readiness of IT and marketing teams in today’s organizations to master the customer data flow. The really cool thing is that you can help shape the outcome by participating in a very short survey we are conducting in conjunction with Forbes. The survey asks a number of questions around the interaction between IT and marketing and can be answered by either IT or marketing professionals.

Don’t put it off, please take the survey now,  share this post, and receive a complimentary copy of the summary results.

If you are a CIO or CMO of a $1 billion+ organization, please also consider participating in our ongoing research by contacting our research associate Lauren Blackburn at +1 617.613.6500.

Is Marketing The Biggest Opportunity For IT Since The Internet?

In today’s fast-paced global economy, examples of how empowered customers and citizens use social technology to influence everything from brands to governments are all around us. The Arab Spring clearly shows the ability of technology to empower people. In this new digital age, marketing teams must react at the speed of the market: Product development life cycles that used to last many years are compressed into months or weeks; customer service expectations have moved from same-day response to instant response; public relations snafus must be handled in minutes rather than days; marketing campaigns are adjusted in real time based on instant feedback from social media. In this new era, mastering customer data becomes the key to success and, in my opinion, represents the biggest opportunity for IT to impact business results since the dawn of the Internet.

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