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Research Report: How The Five Pillars Of Consumer Tech Influence Enterprise Innovation
Posted By R "Ray" Wang On October 4, 2010 @ 06:00 In analytics,Apps Strategy,business analytics,business intelligence,Consumer Tech,Enterprise Software,enterprise strategy,Four S's of Enterprise Class Acceptance,IBM Smart Camp,Information Week,Information Week 500,innovation,Internet of Things,mobile,Monday's Musings,next gen,Next Gen Apps,next gen cio,next gen CIO's,next gen enterprise,next gen IT leaders,next generation,Next generation apps,NextGen,R "Ray" Wang;,Research Report,rwang0,Social Business,social business software,Social CRM,social enterprise,social enterprise apps,social media,Software Insider,SoftwareInsider,Streetline Networks,Unified Communications,vendor strategy,Video | 67 Comments
Most Enterprise Software Vendors Fail To Deliver Innovation
Despite hundreds of billions wasted on failed research and development projects, most market influencers would agree that enterprise software vendors have produced a dearth of innovation over the past decade. Vendors often cite UI re-skins, major functionality additions, integration of acquisitions, technology re-platforms, and weak attempts at faking cloud computing as innovations. In fact, let’s call it what it is. Only a handful of enterprise software vendors have truly innovated. Many enterprise software vendors are fast followers. Most are innovation laggards living off fat maintenance revenue streams. Ask any product strategist where they gain their inspiration and they will all cite advancements in consumer technology; and not peer enterprise competitors.
Innovative Enterprises Push Forward Mostly On Their Own
During this year’s Information Week 500 event , conversations with over 50 leading business technology leaders highlighted the growing gap in innovation. These next gen leaders demonstrated how they were turning to consumer tech advancements to influence their custom development efforts; and/or seeking emerging vendors with innovative offerings.
For example, Bill Martin, the CIO of Royal Caribbean showed how design thinking coupled with real-time analytics and on-board mobility could improve the cruise experience on the largest ship ever built. Shawn Kleim, Director of Development at WetSeal, provided proof points on mobility and social convergence in driving retail sales and eCommerce in the highly competitive teen apparel market. Dave Bent, Senior VP of eBusiness services and CIO of United Stationers, proved how a company could deliver cloud services to partners and create competitive advantage across a value chain.
A number of CIO’s showcased how they were taking advantage of the cloud with SaaS apps and private clouds. Others discussed their efforts to optimize costs using third party maintenance to pay for innovation. The common lessons learned – most did not expect to gain market advantage from their existing and legacy vendors. Innovations came from the consumer tech side and next generation solution providers. Consumer tech advancements influenced business driven technology advancements.
Software And Tech Vendors Rush To Incorporate The Five Pillars Of Consumer Tech
Ten elements  drive key design points for next generation apps. These design points showcase how advancements in consumer tech now permeate the enterprise. Design thinking concepts drive dynamic user experiences, business process focus, and community connectedness. Based on existing research, deep dives into major vendor road maps, and validation with clients, five pillars of consumer tech have emerged as the foundation for future inspiration in the enterprise (see Figure 1):
Figure 1. Five Pillars Of Consumer Tech Will Influence Enterprise Software Throughout The Next Decade
The Bottom Line: Consumer Tech Must Follow The Four Five S’s To Gain Enterprise Class Acceptance In Enterprise and Social Business Software
Consumer tech trends in 2010 will influence enterprise software design throughout the decade. However, these innovations often need to be built to enterprise class standards. Many organizations will continue to build on their own until packaged alternatives become available and enterprise ready. The Four Five S’s of enterprise class acceptance include:
Where do you get your inspiration for innovation? What consumer tech inspirations would you wish to bring into the enterprise. Did we miss any categories? Are you working with an innovative vendor, if so, who? You can post or send on to rwang0 at gmail dot com or r at softwareinsider dot org and we’ll keep your anonymity.
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 Information Week 500 event: http://www.informationweek.com/conference/10fall/speakers.jhtml
 Ten elements: http://blog.softwareinsider.org/2009/08/24/mondays-musings-10-essential-elements-for-the-future-of-social-enterprise-business-solutions/
 IDC: http://www.businesswire.com/news/home/20100907006654/en/Worldwide-Converged-Mobile-Device-Market-Projections-Raised
 activity streams: http://blog.softwareinsider.org/2010/08/30/mondays-musings-why-next-gen-apps-must-improve-existing-activity-streams/
 Social CRM: http://blog.softwareinsider.org/2010/03/05/research-report-the-18-use-cases-of-social-crm-the-new-rules-of-relationship-management/
 VRM: http://blogs.law.harvard.edu/vrm/
 Cloud computing: http://blog.softwareinsider.org/2010/03/22/tuesdays-tip-understanding-the-many-flavors-of-cloud-computing-and-saas/
 Streetline Networks: http://www.streetlinenetworks.com/site/index.php
 IBM SmartCamp contest: http://www-03.ibm.com/press/us/en/pressrelease/32468.wss
 solid MDM strategy: http://blog.softwareinsider.org/2009/08/31/mondays-musings-why-every-social-crm-initiative-needs-an-mdm-backbone/
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