Posts Tagged ‘disruptive technology’

Research Summary: Economic Trends Exacerbate Digital Business Disruption And Digital Transformation (The Futurist Framework Part 3)

Constellation Applies A Futurist Framework To Guide 2014 Outlook and Beyond

Constellation’s research team uses a tried and true futurist framework that looks at the political, economic, societal, technological, environmental and legislative (PESTEL) shifts ahead (see Figure 1). The PESTEL model is used to synthesize the major trends and provides guidance on how Constellation approaches its seven key business themes over the next 2 to 3 years in:

  1. Consumerization of Technology and the New C-Suite
  2. Data to Decisions
  3. Digital Marketing Transformation
  4. Future of Work
  5. Matrix Commerce
  6. Next-Generation Customer Experience
  7. Technology Optimization and Innovation

The strategic assumptions from Constellation’s 2014 PESTEL framework form the basis for the business theme-led research.  Over the next 36 months, research from each business theme will factor these trends into the overall research agenda.  The goal in 2014 is to help clients not only navigate, but also dominate digital disruption.

In part 1, the focus was on the technological trends.

In part 2, the focus is on societal trends.

Download the report snapshot

See the February 27, 2014 webinar

Figure 1. PESTEL Approach Provides a Futurist Framework For Business Themes and Planning


Economic Trends Exacerbate Digital Business Disruption

Still reeling from the impact of the global financial crisis of 2008, Western economies have printed their way out of shock by providing short-term liquidity. Of grave concern, inflation appears around the corner as high debt loads stunt growth. Meanwhile, China and the resource-rich regions such as Africa, the Middle East, Canada and Australia continue their export-led and infrastructure-fueled economic growth. Brazil, Russia, India and China (the BRICs) as well as South Africa continue to grow their economies through direct foreign investment while Malaysia, Indonesia, Nigeria and Turkey (the MINTs) emerge onto the global economic scene. Five economic trends shape the prioritization of investments in digital disruption (see Figure 2):

Figure 2. Economic Trends Exacerbate Digital Business Disruption More…

Event Report: #AdobeSummit Celebrates Digital Marketing From Creative To Commerce

Market Leaders And Fast Followers Celebrate Over A Decade Of Digital Marketing Vision

In 2004, Omniture founder Josh James, an avid skier, held the first Summit atop the Snowbird Ski Resort for 270 early adopters and converted.  Fast forward eleven years to 2014, an estimated 5600+ customers, partners, influencers, and prospects gathered at the Salt Palace in Salt Lake City, Utah, March 25th to March 28th, 2014, in search of reinvention in digital marketing (see Figure 1).  Since that time, Adobe Summit has emerged as a must attend event for those looking at the entire digital experience from creative to commerce.  Despite the size, this year’s event remained equally intimate.  At almost every venue, restaurant, or session, attendees remarked on how easy it was to meet people and discover, connect, and engage on the future of digital marketing.

Figure 1. Adobe CEO, Shantanu Narayen Opening The General Session on the Need for Reinvention In Marketing

Source: Adobe

Adobe Summit 2014 Announcements Focus On Needs Versus Wants

New product enhancements, a new release, and a few key partnerships highlight advancements in Marketing Cloud which includes a number of organically developed products and acquisitions of Omniture, Day Software, Efficient Frontier, and Neolane.  Today, the Adobe Marketing Cloud includes Adobe Social, Adobe Analytics, Adobe Target, Adobe Experience Manager, Adobe Media Optimizer, and Adobe Campaign (see Figure 2).  This year’s announcements reflect a need to improve integration among the acquisitions and deliver core needs versus nice to have capabilities.  Main announcements from this year’s summit include:

Figure 2. The Six Components Of The Adobe Marketing Cloud

Source: Adobe

  • Adobe Marketing Cloud Core Services Improve Suite Value.  Adobe announced new cores services for Marketing Cloud.  These services include a key master marketing profile, shared assets, marketing mix planning, identity, contextual activation, tag management, integration, and collaboration.

    Point of view (POV):
    The core marketing services are much needed to bring not only the acquisitions together, but also future partner integrations.  The Master Marketing Profile allows marketers to aggregate profiles information from multiple sources.  Shared assets put the power of the Adobe Creative Suite to work allowing marketers to create once use everywhere.  Marketing mix planning enables marketers to tie together attribution, analytics, media planning and execution to analytics and campaign activation.  The new identity capabilities are a good start, but much more will be required to support commerce apps entering a digital business world where trust is the new currency and transparency must balance privacy.

Event Report: The Storify From #AdobeSummit

Market Leaders And Fast Followers Celebrate A Decade Of Digital Marketing Vision

In 2004, Omniture founder Josh James, an avid skier, held the first Summit atop the Snowbird Ski Resort for 270 early adopters and converted.  Fast forward eleven years to 2014, an estimated 7000 customers, partners, influencers, and prospects gathered at the Salt Palace in Salt Lake City, Utah March 25th to March 28th, 2014 in search of reinvention in digital marketing (see Figure 1).  Since that time, Adobe Summit has emerged as a must attend event for those looking at the entire digital experience from creative to commerce.  Despite the size, this year’s event remained equally intimate.  At almost every venue, restaurant, or session, attendees remarked on how easy it was to meet people and discover, connect, and engage on the future of digital marketing.

Enclosed is the Storify of Tweets from #AdobeSummit:

Figure 1. Storify from #AdobeSummit


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Research Report: Digital ARTISANs – The Seven Building Blocks Behind Building A Digital Business DNA

Shift to Digital Businesses Requires A Transformation Of Leadership And Organizational DNA

The discussion about digital business often goes deep into the five pillars of digital technologies.  In fact, the convergence of these pillars have spawned the latest and trendiest iterations of technology from enabling the sharing economy to 3D printers to wearables that drive sensor and analytical ecosystems.  As organizations contemplate how these broad based digital business trends will disrupt existing business models, leaders can apply Constellation’s Futurist Framework [Download the report snapshot] and consider dimensions from the political, economic, societal, technological, environmental, and legislative (PESTEL) angles.  However, even after much planning, astute CXO’s from market leading and fast follower organizations quickly realize that technology and process alone is not enough to transform their organization’s DNA inside the organization.

It’s Still The People, Stupid!

Despite robots potentially taking over by 2020 (snark), people still play a key role in the success of digital business transformation.  In the shift from selling products and services to promising outcomes and experiences, information flows faster.  Every node and person in the digital network must react more quickly, yet also needs to be more intelligent.  Success comes faster but so does failure.  Thus, both the seduction of massive success and the fear of facing massive failure provides a great catalyst to design, influence, infuse, or transplant the proper digital DNA.

The DNA Of Digital Artisans Blend The Intelligence Of Quant Jocks With The Co Innovation Skills Of The Creative Class

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Research Summary: Five Societal Shifts Showcase The Digital Divide Ahead (The Futurist Framework Part 2)

Constellation Applies A Futurist Framework To Guide 2014 Outlook and Beyond

Constellation’s research team uses a tried and true futurist framework that looks at the political, economic, societal, technological, environmental and legislative (PESTEL) shifts ahead (see Figure 1). The PESTEL model is used to synthesize the major trends and provides guidance on how Constellation approaches its seven key business themes over the next 2 to 3 years in:

  1. Consumerization of Technology and the New C-Suite
  2. Data to Decisions
  3. Digital Marketing Transformation
  4. Future of Work
  5. Matrix Commerce
  6. Next-Generation Customer Experience
  7. Technology Optimization and Innovation

The strategic assumptions from Constellation’s 2014 PESTEL framework form the basis for the business theme-led research.  Over the next 36 months, research from each business theme will factor these trends into the overall research agenda.  The goal in 2014 is to help clients not only navigate, but also dominate digital disruption.

In part 1, the focus was on the technological trends.

In part 2, the focus is on societal.

Download the report snapshot

See the February 27, 2014 webinar

Figure 1. PESTEL Approach Provides a Futurist Framework For Business Themes and Planning

Societal (S) Shifts Showcase the Digital Divide Ahead

Generational shifts by age and by digital proficiency will show up in force in 2014. A generation of millennials no longer seeks the same objectives as previous generations.  Lack of upward mobility and opportunity sow the seeds for societal disruption.  Furthermore, a fear of government intrusion along with a need for government programs creates a bipolar view on the role of government.  Hence, organizations must adapt to an ever-changing array of future business models based on dynamic demographic and psycho-graphic preferences.  The following five broad societal movements shape how individuals behave and play a strong role in influencing business model adoption (see Figure 2):

Figure 2.  Societal Shifts Showcase the Digital Divide Ahead


  1. Access trumps ownership in a sharing economy. From car sharing in the late 1990s, to vacation rentals to collaborative financing, the sharing economy has been inching its way into the forefront of the consumer’s mind.  Since, thought leaders such as Rachel Botsman, Lisa Gansky and Anne-Sophie Novel, have been chronicling the forces, underlying trends and players behind the movement.  Key success factors in this new business model require the identification of underutilized assets, optimization of value through time slicing of access, trading on the goodwill and generosity of others and building a reputation economy.  A sharing economy model is not for every industry, yet this trend may affect how products and services companies shift their offerings and business models in the next three to five years.
  2. Five generations of customers and workers driven by digital proficiency, not age. When discussing the future of work, most people  immediately jump to the discussion of millennials, Generation Y, Generation X, Baby Boomers, post war, etc.  However, under a shift to digital business, the generations are defined differently.  This segmentation describes how proficient people are with digital technologies and digital culture.  The five generations include digital natives, digital immigrants, digital voyeurs, digital holdouts and the digital disengaged.
  3. More…

Research Summary: Next Generation CIOs Aspire To Focus More On Innovation And The Chief Digital Officer Role

Executive Summary

Constellation shares with its clients the fourth annual groundbreaking survey of CIOs later this week.  The 2014 survey interviews respondents about their priorities by CIO persona.  Constellation identified infrastructure, integration, intelligence, and innnovaiton as the four personas of the next gen CIO in 2011.

Survey results show that while CIO’s prefer to spend more time on innovation projects, most CIOs must spend their time battling the reduction of cost in IT delivery.  In the shift towards dominating digital disruption, CIOs can only move as fast as their organization’s DNA will allow while driving transformation. Using Constellation’s organizational DNA framework, CIOs can understand how much change they can expect their organization to consume and gauge their ability to impact the thought process and culture.  An excerpt of some of the findings can be found below:

A. CIOs Must Battle Keeping The Lights On Despite A Desire To Focus On Innovation

In Constellation’s recent CIO survey of 119 respondents, over 44% expressed that reducing the cost of IT delivery remained the number one priority (see Figure 2).  However when asked what should be the number one priority almost 44% expressed that bringing innovation to the business was the number one requirement (see Figure 3).

Figure 1. CIOs Still Prioritize Reducing IT Costs

Figure 2.  Bringing Innovation to the Business Is Top Of Mind On The CIO Agenda

B. CIOs Must Overcome Three Barriers To Bringing Innovation To The Business

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Research Summary: Sneak Peaks From Constellation’s Futurist Framework And 2014 Outlook On Digital Disruption

Accelerated Pace of Change Creates the Perfect Storm for Dominating Digital Disruption

The 2014 trends are out. The big predictions have been made.  Yet what does it all mean as most organizations anticipate another unpredictable year?  Since 2000, 52 percent of the companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist (Figure 1).  The pace of change has increased, competition has intensified and business models have been disrupted.  The only certainty is that change will accelerate.

Figure 1. Digital Disruption Has Demolished 52% of the Fortune 500 Since 2000


In fact, the digitalization of business is a key factor in this accelerated pace of change.  Information flows faster.  Most parties enjoy greater transparency, yet the digital divide makes transparency patchy.  Every node reacts more quickly.  The speed of execution as a differentiator has resulted in agility in delivering disrupting business models. Market leaders shift from selling products and services to promising outcomes and experiences.

Market leaders and fast followers want to know what trends will affect customer demand. How will these trends affect hiring decisions?  Are there new and emerging technologies that will power disruptive business models?  What factors will help organizations dominate digital disruption?  How does one stay safe in a world of digital exhaust?  What networks matter?  Who are my competitors, collaborators and co-innovators? How does one make sense of the disparate and often contradictory trends pointed out by experts, pundits and analysts?

Constellation Applies A Futurist Framework To Guide 2014 Outlook and Beyond

Constellation’s research team uses a tried and true futurist framework that looks at the political, economic, societal, technological, environmental and legislative (PESTEL) shifts ahead (see Figure 2). The PESTEL model is used to synthesize the major trends and provides guidance on how Constellation approaches its seven key business themes over the next 2 to 3 years in:

  1. Consumerization of Technology and the New C-Suite
  2. Data to Decisions
  3. Digital Marketing Transformation
  4. Future of Work
  5. Matrix Commerce
  6. Next-Generation Customer Experience
  7. Technology Optimization and Innovation

The strategic assumptions from Constellation’s 2014 PESTEL framework form the basis for the business theme-led research.  Over the next 36 months, research from each business theme will factor these trends into the overall research agenda.  The goal in 2014 is to help clients not only navigate, but also dominate digital disruption.

Download the report snapshot

Register for the Webinar February 27, 2014

More…

Trends: [VIDEO] The Digital Business Disruption Ahead Preview – NASSCOM India Leadership Forum (#NASSCOM_ILF)

A 10-Minute Preview Video Interview Of The Digital Business Disruption Ahead From The #NASSCOM_ILF Team

On January 17th, 2014, the NASSCOM team interviewed Constellation Research about the digital disruption ahead.  The short 10 minute video covers key topics including:

  • Convergence of the five pillars of digital business drive the current digital disruption. The end of social, mobile, analytics, cloud, and UC (i.e. SMAC) as you know it.
  • The new ecosystems of digital business bring new opportunities. From GE’s industrial internet to mass personalization at scale, to augmented humanity, Constellation sees a new future beyond the traditional software ecosystems.
  • Everyone vs Amazon is becoming a reality. Insights on why everyone is competing with Amazon not only in retail, but also in the cloud, physical distribution, and media.
  • Mergers and acquisitions in software signal a maturing industry category. Large enterprise software companies no longer innovate fast enough and have to purchase startups for IP and growth.
  • Mobile first and cloud first drive key success factors. Constellation sees the need to move to mobile first in order to innovate and move at the speed of digital business change.
  • Service providers must focus on a higher stack. IT services firms traditionally deliver operations, maintenance, and transfer.  However the value add and higher margins are in design and build.
  • Preview of the Constellation Futurist Framework. Using a PESTEL model, Constellation provides a sneak peak in some of the big 2014 futurist trends.

VIDEO: The Digital Business Disruption Previw

Source: NASSCOM

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The Bottom Line: The Shift To Digital Business Disruption Will Forever Transform The Service Provider Landscape

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News Analysis: VMware Signals Commitment To Mobility With $1.54B Intent To Acquire Airwatch

Mobile Management Consolidation Continues And VMware Accelerates Mobile Efforts

On January 22nd, 2014, VMware (NYSE: VMW) announced the intent to acquire Atlanta, GA based Airwatch for $1.54B.  More than just an acquisition of a leading enterprise mobile management (EMM) vendor, the acquisition represents a cornerstone for VMware’s mobile strategy for end user computing.  Should the deal close, co-founder Alan Dabbiere will report to VMware CEO Pat Gelsinger.  AirWatch will continue to be led by CEO John Marshall and included in VMware’s end-user computing group, led by General Manager, Sanjay Poonen.  Upon completion of the acquisition, the market impact is significant because:

  • AirWatch users breath a sigh of relief amidst rapid market consolidation and uncertainty. AirWatch is a leading enterprise mobile management (EMM) vendor with over 10,000 customers and 1600 employees. The company has received $200M+ in Series A funding, delivered a global presence with 10 global offices and 16 languages, and achieved over a 90% customer retention rate.  AirWatch brings a rich ecosystem of device manufacturers, feature set partners, resellers, mobile operators, and managed services providers.  Despite these successes, the EMM space faces rapid consolidation and AirWatch is a constant candidate for acquisition.

    Point of View (POV):
    Citrix’s acquisition of Zenprise foreshadowed the EMM market consolidation and the acquisition of MaaS360 (Fiberlink) by IBM in November 2013 created some concern for existing customers and prospects about AirWatch’s long term fate.  In addition, a price war in 2013 stalled a planned IPO process for AirWatch.  Many customers and prospects feared that AirWatch would remain the last EMM vendor standing.  Given the proposed management structure and VMware’s history of mergers and acquisition, AirWatch users should feel confident that the technology and team are in good hands and that VMware intends to invest and grow the business.
  • VMware gains a mobility foundation and moves from feature set to end point management. AirWatch’s EMM offerings cover a broad set of device and enterprise features.  Device features include MDM, MAM, MCM, MEM, SSO, OS Container, Enterprise Workspaces, App Wrapping/SDK, API Framework, and Device usage.  Enterprise features include API, PKI, DLP, NAC, Directory Services, Content Repositories, Event Management, SIEM, Business Workflow and Systems Management.  Other key areas include Platform Integration, Process Automation, Workflow Templates, and a Privacy Framework. More…

News Analysis: New #IBMWatson Business Group Heralds The Commercialization Of Cognitive Computing. Ready For Augmented Humanity?

IBM Launches New Business Group In New York’s Silicon Alley

On January 9th, 2014, on top of 4 World Trade Place, IBM CEO Ginni Rommety and long time veteran, but newly minted, IBM Watson Group Senior Vice President Michael Rhodin, announced IBM’s commitment to putting an entire business unit around Watson (see Figure 1).  The arrival of Watson represents a culmination of artificial intelligence, natural language processing, dynamic learning, and hypothesis generation to take vast quantities of data to make better decisions.  The IBM Watson business unit is the tech giant’s multi-year $1 billion initiative to deliver cloud based cognitive computing products for industries such as healthcare, retail, financial services, advertising, travel, and hospitality.

Figure 1. IBM Watson Group’s, Senior VP Mike Rhodin With A Warm Welcome

Source: IBM

Three key insights emerge from the launch:

  • IBM is committed to creating a brand new category and ecosystem. Focused on cognitive computing, over 2000 professionals form the newest business unit at IBM headquartered in New York City’s Silicon Alley.  The Watson ecosystem launched on November 14th, 2013 has over 750 applicants and $100M in equity investment (see Figure 2).  The ecosystem includes the Watson Developer Cloud, Watson Content Store, and the Watson Talent Hub.  In addition, the new business group is headed by IBM veteran Mike Rhodin.  Mike is a senior and well rounded executive who led the software solutions group which included the Business Analytics, Smarter Cities, Smarter Commerce, and Social Business product lines.

    Point of View (POV):
    The ability to self learn enables continuously reprogramming.  Cognitive computing is more than a new category.  These advancements represents a new class of technology to enable human and machine guided decisions.  IBM’s commitment can be seen by the level of executive and the management team chosen to grow a brand new class of software, services, and apps.  Constellation believes that the IBM Watson team has put forth a wide range of innovative ecosystem partnerships across a diverse set of industries.  In fact, the client solutions center and design lab are key to clients experiencing how Watson can create disruptive business models and transform an industry.  Moreover, the establishment of a business incubator is key to attracting crucial talent, technology, and ecosystem to spark new ventures.

 

Figure 1. IBM Showcases The Entire Watson Family and Ecosystem

Source: IBM

  • IBM is putting considerable resources towards the commercialization of products and services. At the unveiling, IBM announced three new cloud-delivered Watson offerings to add to the IBM Watson Engagement Advisor launched on May 21, 2013.  IBM Watson Discovery Advisor uses cognitive intelligence to apply context on vast quantities of unstructured and structured data.  The goal -  identify patterns for research teams to advance their efforts in industries such as pharma, publishing, and education.  IBM Watson Analytics provides capabilities that allow users to verbally ask questions and receive high quality data visualizations and insights.  IBM Watson Explorer provides the toosl to find, extract, and deliver content regardless of format or data source.
    More…

News Analysis: Salesforce 1 Signals Support For Digital Business at #DF13

Salesforce Seeks To Tackle Digital Business At Dreamforce

Over 125,000 virtual and physical registrants descend on San Francisco the week of November 17th for Dreamforce 13, a future of technology meets SXSW event.  One day in advance of the largest enterprise software event of its kind, Salesforce.com announces Salesforce 1 (see Figure 1).  The Salesforce 1 customer platform seeks to address a cadre of emerging digital business requirements that customer centric companies face.

Figure 1. Salesforce 1 Customer Platform Intends to Support The Internet Of Customers

Source: Salesforce.com

SalesForce 1 Reflects Much Needed Refresh Of Existing Platform

The new customer platform includes platform services, platform APIs, and the Apps created from the platform.  Salesforce 1 platform services includes refreshes in Force.com, updates in Heroku, and adds Exact Target Fuel.  As expected, Sales Cloud, Service Cloud, Exact Target Marketing Cloud, and Apps Exchange sit on top of the salesforce1.com platform (see Figure 2).

The key analysis of this release include:

  • Internet of Customers support. Salesforce includes social, mobile, cloud, and connected as the key components for The Internet of Things.  In order to meet the requirements of a third wave of computing that moves from Internet of Things to what Salesforce calls the Internet of Customers, the new platform is designed to support this customer centricity convergence.

    Point of View (POV):
    Constellation sees more than 50B connected devices and at least 150B connected endpoints by 2020.  The opportunity is huge.  While Salesforce.com addresses 3 out of the 5 key components of digital business, the vendor still needs to provide video/unified communications and big data/analytics.  Constellation believes the big data and analytics opportunity is critical to enhancing customer experiences, to benchmarking and brokering data servcies, and to buildoing new business models around big data and analytics.  Customers should encourage Salesforce.com to consider how to enable big data business models in digital business in the next iteration.  Meanwhile, most customers can wait until future releases for video and UC requirements to be met.
  • Next generation apps developer platform. The PaaS layer adds a mobile first orientation that enables a write once and deploy anywhere platform. Developers can now deploy to a range of social, mobile, and connected devices.  The platform services include 10X more API functionality.   Developers can build customer apps, wearable apps, product apps, and salesforce apps.

    More…

Tuesday’s Tip: Understand The Five Generation Of Digital Workers And Customers

Age Is Not The Deciding Factor In Five Generations Of Workers

When discussing the future of work, most folks immediately jump to the discussion of millennials, generation Y, generation X, baby boomers, post war, etc.  However, the shift to digital business finds a different type of five generations.  This segmentation describes how digitally proficient people are with digital technologies and culture. Constellation sees five generations (see Figure 1):

  1. Digital natives – people who grew up with the internet, comfortable in engaging in all digital channels.
  2. Digital immigrants - people who have crossed the chasm to the digital world, forced into engagement in digital channels.
  3. Digital voyeurs – people who recognize the shift to digital, observing from an arms length distance.
  4. Digital holdouts – people who resist the shift to digital, ignoring the impact.
  5. Digital disengaged – people who give up on digital, obsessed with erasing digital exhaust.

Figure 1. Five Generations Of Workers With Different Expectations And Values

Source: R Wang, Insider Associates, LLC. All Rights Reserved.

The Bottom Line: Build Journey Maps For The Five Generations Of Digital Workers

Where you work, when you work, how you work, what you work on, and why you work have been disrupted in this digital world.  These five generations of workers have different people centric values that More…