Posts Tagged ‘future’

Monday’s Musings: Understand The Four Organizational Personas Of Disruptive Tech Adoption

Pace of Innovation Exceeds Ability To Consume

Rapid innovation, flexible deployment options, and easy consumption models create favorable conditions for the proliferation of disruptive technology.  In fact, convergence in the five pillars of enterprise disruption (i.e. social, mobile, cloud, big data, and unified communications), has led to new innovations and opportunities to apply disruptive technologies to new business models.  New business models abound at the intersection of cloud and big data, social and mobile, social and unified communications, and cloud and mobile.

Unfortunately, most organizations are awash with discovering, evaluating, and consuming disruptive technologies.  Despite IT budgets going down from 3 to 5% year over year, technology spending is up 18 to 20%.  Why?  Amidst constrained budgets, resources, and time limits, executives are willing to invest in disruptive technology to improve business outcomes.  Consequently, successful adoption is the key challenge in consuming this torrent of innovation.  This rapid pace of change and inability to consume innovation detract organizations from the realization of business value.

Organizations Fall Into Four Personas Of  Disruptive Technology Adoption

A common truism in the industry is “Culture trumps technology”.  As organizations apply methodologies such as Constellation’s DEEPR Framework in improving adoption, leaders must first determine which of the four personas best fits their organization’s appetite for consuming and innovating with disruptive technologies.

The personas of disruptive technology adoption assess organizational culture in two key axes (see Figure 1).  The first is how incremental or transformational an organization looks at applying disruptive technology to business models.  The second assesses how proactive or reactive an organization is in carrying out new initiatives.  Based on these dimensions, the four personas include:

  1. Market leaders. Market leaders prefer to drive transformational innovation.  They look at technologies as enablers in disrupting business models.  They see competitive differentiation in delivering outcomes to customers. Market leaders accept failure as part of the innovation process.  They fail fast and move on.
  2. Fast followers. Fast followers prefer to react to the success of market leaders and their experiments.  When they sense success, they tend to jump in.  Fast followers do not like to fail and rapidly apply lessons learned from market leaders into their road maps.  Fast followers tend to deliver scale in the markets as a counter balance to arriving later in the market.
  3. Cautious adopters. Cautious adopters proactively deliver incremental innovation.  They tend to take a more measured approach and spend more time studying how they can improve an existing success than creating a transformational change.  Cautious adopters often come from regulated industries where security and safety are paramount objectives.
  4. Laggards. Laggards tend to procrastinate on applying innovations to their business models.  They prefer not be bothered by trends and will only react when the trends have moved beyond mainstream.  They see value in waiting as prices will drop over time as success rates increase over time.  Laggards enjoy waiting.

During the interviews and discussions with the 2012 Constellation SuperNova award participants, key questions emerged in the decision process on whether to adopt or pass on a disruptive technologies.  These questions aligned well with the four personas of disruptive technology adoption.

Figure 1.  Organizations Should Understand Which Persona Of Disruptive Tech Adoption Describes Them Best

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Press Release: Constellation Research Adds Futurist Venessa Miemis To The Team

New York, New York, United States – October 12th, 2011
11:31 am (GMT – 5:00) Eastern Time

Constellation Research Inc, a next generation research analyst and advisory firm helping clients achieve business value from emerging and disruptive technologies, announced today that Venessa Miemis joined as a Senior Analyst and Resident Futurist in September.  Venessa will serve as Constellation’s first resident Futurist.  Her coverage will focus on the digital identity space researching core topics such as The Future of Trust, The Future of Money, and Reputation and Ethics on the Social Web.

Miemis brings a wealth of experiences as a social technologies researcher and artist, exploring the edges of communication, co-creation, and commerce in a network society.  Venessa brings structure and understanding to how social technologies and networked culture are transforming business, commerce, and collaboration.  She often synthesizes insights and analysis into video-based communications along with insightful blogs and reports.  One of her well known projects is The Future Of Money project, which provided a visionary point of view for the banking industry and was presented to over 200 global heads of banks at the SIBOS Conference in October 2010.

Venessa blogs at Forbes in addition to her own widely-followed blog, Emergent by Design.  Her cutting edge points of view have been featured in leading media outlets such as CNN, Fast Company and The Huffington Post.  Miemis’ current projects include work on the Future of Facebook, social currency, open collaboration, and p2p finance.  She currently serves as the Chief Community Officer for Contact, an innovation festival about peer-to-peer technology and networked culture.  Venessa is also a board member of the Acceleration Studies Foundation and serves in an advisory role for a number of tech startups and social change initiatives.

Venessa graduated from Miami University with a BA in Psychology.  She has a Master’s in Media Studies from the New School with a concentration in online engagement, collaboration, and trust-building.

“We’re moving towards a business landscape that’s becoming more human – where trust, reputation, and the context of relationships really matter. Technology is leaping forward, and we’re finding more robust ways to understand our desires and motivations, to make decisions, and to create value. I look forward to working with companies to navigate and define this next wave that comes after “social.” – Venessa Miemis

Venessa’s coverage area will include:

  • Digital identity
  • Identity from a consumer perspective touching on public sector, healthcare, and banking/finance/commerce
  • Virtual goods
  • Virtual currencies
  • Vendor relationship management and personal data stores
  • Social media marketing, branding/communications, and community building.

“Legacy analyst firms continue to fail their clients because they have chosen not to invest in talent and push the envelope.  We value Venessa’s cutting edge points of view and track record in tackling new research topics.  Her work on the Future of Money represents the future of research “, noted R “Ray” Wang, Principal Analyst and CEO.

Please join us in welcoming Venessa to the Constellation Research Family and the Business Analytics team!  Venessa joins Adrian Bowles and Barry Wilderman in expanding Constellation’s presence in the New York metro area!

COORDINATES

Twitter: @venessamiemis
Linked In: http://www.linkedin.com/in/venessamiemis
Geographical Location: Beacon, New York, United States
Email
: venessa (at) ConstellationRG (dot) com.

About Constellation Research, Inc.*
Constellation Research is a leading research analyst and advisory firm guiding organizations and their leaders through the hype and buzz of the latest disruptive technologies.  Constellation takes a holistic approach in achieving business value for board members, marketing, technology, operations, human resource, and finance executives.

The firm’s analysts deliver pragmatic, creative, and impactful research focused on business value, profitability, and market differentiation.  Research analysts bring real world experience, independence, and objectivity to our clients.  Most analysts bring over 2 decades of hands-on experience in working with senior leaders in enterprise organizations.

Constellation serves the needs of buyers and end users who seek insight, guidance, and advice in dealing with a dizzying array of disruptive business models and technologies.  The firm provide the bridge between legacy optimization and future innovation.  Constellation also advises sellers from both the buyer‚s point of view and how to deliver value to their customers.

Constellation builds partnerships with its clients.  The client and their organization’s success is Constellation’s only mission.

Insight. Inspiration. Impact.

*Constellation Research, Constellation SuperNova Awards and the Constellation Research logo are trademarks of Constellation Research, Inc. All other products and services listed herein are trademarks of their respective companies.

Press Contacts:

Contact the Media and Influencers relations team at press@ConstellationRG.com for interviews with analysts.

Sales Contacts:

Contact our sales team

Kieran Barr

Email: Kieran (at) ConstellationRG (dot) com
Office:
+1.206.409.5009
Twitter: @
kierobar

David Stanley
Email:David (at) ConstellationRG (dot) com .
Office: +1.719.357.7826
Twitter: @kiwigate

Tuesday’s Tip: Call Vendors On Their Bluff About “Rev-Rec” And Software Maintenance Contracts

Vendor Sales Reps Keep Using An Age Old Excuse Out Of Habit

Many organizations start their Q4 software maintenance renewals process in September.  This has led to a flurry of emails and phone calls about revenue recognition (a.k.a. “rev-rec”) rules for software maintenance contracts.   Apparently, both customers and vendor sales reps suffer from mass confusion on this issue.  The result – a conservative but inaccurate stance from sales reps who use pat answer number 1 and tell existing customers that they can’t discount their software maintenance because of rev-rec rules.  For good measure, they usually throw out all the real official sounding terms around AICPA Statement of Position (SOP) No. 97-2 and VSOE.  To customers, this reminds them of technical gobbleydegook and they glaze over this issue about software revenue recognition in despair.

However what’s true for how rev-rec works for license fees does not apply in most cases for software maintenance and support because:

  • Maintenance and support fees are adjunct or known as separate from license fees. Maintenance contracts may be based on license fee costs but these fees should be recognized as a separate stream of revenue.  More granular accounting will be required when licenses are bundled with one or more years of pre-paid maintenance, but the vendor should be able to carve out a value for this.
  • Post contract customer support (PCS) or what we call maintenance and support is ratable. Maintenance fees are recognized over the life of a contract.  For example, if you got a 1 year contract, then that’s all you impact, not the entire license basis as some vendor sales reps would have you believe.

The Bottom Line – Call The Bluff And Ask The Sales Rep To Show You How SOP-72 Is Applied*

Countering false claims on rev-rec will provide a key weapon in reducing maintenance fees in contract negotiations.  Challenge the vendor to explain their rationale.  When successful, clients can then ask the vendor to base maintenance fees on a reduced total account value without jeopardizing the vendor’s insistence to hold to a maintenance fee percentage.

Your POV.

Have you encountered the rev-rec song and dance?  How have you pushed back on this issue?  Did you find any success with this technique?  Need some guidance?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com.

*standard disclaimers apply.  always check with your legal counsel and procurement experts before taking any action.

Trends: What Are The Emerging Technologies And The Future Of Business?

Thanks to the 799 registrants and 458 attendees who participated in today’s webinar on The Future of Business.  There’s so much to cover across leadership, innovation, customer, and enterprise as we enter a more social, connected business world.   The key thing we learned today was just how interested everyone is about these converging trends that shape the future of business.  To succeed, we’ll have to move beyond interest and towards action.  For those who missed out, here are today’s slides:

The Future Of Business by Altimeter Group

View more presentations from Charlene Li.

Your POV

Keep the dialogue going.  Check out the #futurebiz tweets.  What do you see are the key trends?   When do you think we’ll get there? Post your comment here or reach me direct at r at altimetergroup dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang. All rights reserved.