Posts Tagged ‘next gen enterprise’

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

More…

News Analysis: KANA Enters MidMarket With Trinicom Acquisition

Acquisition Brings A Proven Multi-Channel Cloud Based Service Offering To The Growing Mid-market

Sunnyvale, CA based KANA announced on April 24, 2012 it’s acquisition of Netherlands based Trinicom, a multichannel, customer contact software provider serving over 200 companies in the BeNeLux market.   Trinicom’s flagship T5 all-in solutions addresses multichannel customer service through email response management, web self-service, call management, live chat, “letter, fax, and desk contact”, chat bot, and knowledge base.   The acquisition marks KANA’s entry and commitment to:

  • Addressing the under served mid-market. Trinicom brings enterprise class customer service and engagement tools to mid-sized businesses.  KANA states in its press release that “mid-sized organizations in both public and private sectors are increasingly seeking enabling technology to support emerging customer experience needs and to build, enhance, and extend relationships with customers.”  Why? Mid-market companies seek enterprise class solutions that don’t require the enterprise levels of staffing, support, and infrastructure.  Trinicom brings the expertise in sales, marketing, and support for the mid-market to the traditionally enterprise focused KANA management team.

    Point of View (POV):
    Trinicom suite of products for key service industries succeeds given its mid-market focus.  In general, these organizations have 20 to 200 customer service professionals.   Referenceable and successful customers come from banking, education, internet, insurers, non-profit, publishing and media, retail & eCommerce, telecom, travel & transport, and utilities (see Figure 1).  In fact, Trinicom delivers an end to end offering across social, web, and agent desktops.  Past clients expressed general satisfaction with go live times less than three months and on average within six to eight weeks.  Most clients praise the rich configuration tools which allow clients easy adaptation without expensive customization.
  • Gaining a SaaS based deployment option. KANA today offers on-premises and hosted deployment models for its enterprise customers. Trinicom brings its SaaS based technology and Cloud business model to KANA’s existing deployment options.  Trinicom’s SaaS operations in Northern Europe complement Kana’s global data center reach.

    Point of View (POV):
    KANA’s lack of a SaaS offering has led to some loss in deals as the market shifts to SaaS as the defacto standard.   The good news – the Trinicom acquisition gives KANA customers and prospects more choice in immediate deployment options. Subsequently, KANA gains a SaaS foundation for future offerings in both the mid-market and enterprise.
  • Expanding customer and revenue base. KANA currently serves 600 commercial and 250 public sector organizations. Trinicom adds key global capabilities and European market expertise.  For instance, Trinicom will expand KANA’s presence in the local public sector market in EMEA.

    Point of View (POV):
    The acquisition expands KANA’s customer and revenue base into the growing and profitable mid-market.  KANA gains an immediate opportunity to service the mid-market and effectively compete with eGain, Eptica, Moxie, and Parature.  More importantly, Trinicom opens up a lucrative mid-market public sector opportunity.

Figure 1. Trinicom Spans A Range Of  Service Verticals In The Mid-Market

More…

News Analysis: Tidemark Gains $24M in Series C Funding, Redpoint Ventures Leads Round

Big Data, Cloud Based Performance Apps, Drive Interest In Additional Investment

Redwood City, California based Tidemark announced that it raised $24 M in Series C funding from Redpoint Ventures, Greylock Partners, Andreessen Horowitz, and Dave Duffield.  Key points include:

  • Redpoint Ventures leads the round and Geoff Yang joins the board. To date Tidemark has raised $35M with $6.3M in its Series A and approximately $5M in its Series B.  Tidemark will add Geoff Yang, a founding partner of Redpoint Ventures to the company’s board of directors.

    Point of View (POV):
    Redpoint Ventures has had a great history with investments in enterprise software and cloud computing.  Success stories include Concur, Documentum, Fanfare, FileNet, Heroku, Metreo, Polycom, Responsys, Sybase, and Zimbra.  More importantly, current board of director Phil Wilmington, the former CEO of OutlookSoft and co-CEO of PeopleSoft, has been named Executive Chairman of the company.
  • Funding will enable Tidemark to expand both sales efforts and expand initial EPM use cases. Today Tidemark offers a suite of EPM applications that include metrics management; strategic, financial, and operational planning, budgeting, and forecasting; and profitability modeling.  With additional funding, Tidemark plans to build out its enterprise sales force and target the growing market for business intelligence systems that address both big data and real-time data driven decision management.

    Point of View (POV):
    Tidemark’s solution provides forward looking analysis and real-time performance management.  While the first set of use cases address the cloud based enterprise performance management market, the core software provides a key foundation in bringing applications away from transactional systems and into a new world of engagement and experience systems.  Key features include parallelized in memory analytics, native cloud data integration, native HTML 5 interface, mobile first UI, and real-time collaboration.

The Bottom Line For Customers: Tidemark Brings Real-Time Data Driven Decisions To The Cloud

The rise of big data, aging BI systems, and the need for cloud based approaches lead many organizations to rethink their business intelligence (BI) and business analytics strategies.  As BI continues to evolve from fragmented and historical reporting to pervasive, predictive, and real-time decision support, an organization’s success increasingly depends on the support for an expanding information matrix.  Tidemark represents the next class of solutions that can address the big data challenge in the cloud, while delivering real-time and actionalbe solutions that are easy for line of business users to consume in a social, mobile, and collaborative fashion.  Consequently, organizations such as Acosta and US Sugar are already moving in this direction.

The Bottom Line For Technology Vendors: Expect Investors To Increase Funding For Enterprise Class Solutions

The buzz and rage over the past three years has focused on consumer plays in the valley.  However, activity in the past six months suggest that investors are making the shift to enterprise focused start-ups.  Why? With 1 out of every 1000 consumer plays making a successful exit, the pivot to enterprise appears to be a safer and less crowded bet.  Investors and enterprise class technology companies can expect 2012 to be an exciting year of mergers, acquisitions, investments, and IPO’s.

Your POV.

Are you ready for next gen analytical apps? If you are an existing EPM user, what will make you make the switch? Are your current applications cutting it?  Got a question?  Add your comments to the blog or reach me via email: R (at) ConstellationRG (dot) com or R (at) SoftwareInsider (dot) com.

Related Research:

Reprints

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact sales (at) ConstellationRG (dot) com.

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy, see the full client list on the Constellation Research website.

Copyright © 2012 R Wang and Insider Associates, LLC All rights reserved.

Product Review: Google+, Consumerization of IT, and Crossing The Chasm For Enterprise Social Business

Timing of Google+ Bodes Well For Enterprise Users And Google

Lately, one could say Google’s been a bit absent from the social business party.  The premature launch of Google Wave exposed a canvas looking for a masterpiece painting.  Failing fast and learning from the Google Wave lesson, Google’s latest offering, Google+ shows promise in bringing similar disruptive technology concepts to market, yet packaged in easier to adopt metaphors such as activity streams, walls, hangouts, and circles (see Figure 1).

As part of Google’s aspirations to deliver enterprise offerings, it’s flagship Google Apps continues to gain traction in enterprises despite a market position that places the product between a very strong pro-sumer play and an almost enterprise app.  The good news – a constant stream of incremental changes shows an evolution to an enterprise class offering built from a strong consumer bent.  As of this posting, Google Apps isn’t integrated with G+, but Google’s enterprise ambitions have been strengthened with the new offering.

Figure 1.  Logging Into Google+

Convergence And Shift To A P2P World Enables GooglePlus To Go After Both Consumers And Enterprises

Google+ launch comes at an exciting time of convergence among the mega trends for the decade: social business, mobile enterprise, cloud computing, and unified communications.  The five pillars of Consumerization of IT (CoIT) fall in Google’s favor as consumer users rapidly seek to bring these innovations into their enterprises.  Subsequently, Google+ already takes advantage of Google’s assets to:

  • Unify the communications channels. Enterprises spend millions trying to get their fragmented communications systems to work, let alone integrate.  Google+ takes chats, emails, tweets, voice, mobile, and video and rolls it all up neatly into one offering.  More importantly, it works off of one login and its integrated.  Key video features such as Hangouts allow for impromptu video con calls without the hassle of most other video conferencing systems.
  • Provide an initial alternative to Facebook for the enterprise offerings. Procurement managers and line of business buyers face Cloud/SaaS best of breed hell as a flurry of purpose built solutions attack the enterprise IT landscape.  Should Google stream line convergent offerings for the enterprise, it will be poised to dethrone many incumbents.  Google can only succeed if they can match functional parity over the next 12 to 18 months.  Keep in mind, the long-term goal goes beyond Facebook for the enterprise.
  • Aggregate the user’s social sphere. Facing near term social networking overload, enterprise users can’t possibly fathom another social networking service.  Aggregation by a major player makes sense from a market position and user convenience. Google’s initial list allows users to notate key services in their profiles through connected accounts from Facebook, Yahoo!, Flickr, LinkedIn, Quaora, Twitter, Yelp, Hotmail, and Plaxo (see Figure 2). A quick look into the codes shows that these connection services potentially can support a Microsoft Outlook email, an SAP feed, or Salesforce.com Chatter stream and may potentially support direct integrations in future road maps.

Figure 2.  Google+ Delivers Social Sphere Aggregation With Ease

Adding Connections on GooglePlus

More…

Monday’s Musings: Real Time Versus Right Time And The Dawn Of Engagement Apps

Different Flavors Of Real-Time Result In Significant Implications.

Many pundits, research insight folks, bloggers, and hand wavers keep talking about the need for real time in social business, analytics, mobile, and other disruptive technologies.  Given the volume of data, bandwidth constraints, and magnitude of business processes to be supported, is the notion of real time even possible?  It’s been the holy grail of many technology suppliers to state they are delivering information or reacting in “real-time”.

While researching the issue, I rediscovered a classic post from event processing researcher Dr. Opher Etzion, from IBM Labs Haifa.  The central thesis from this 2007 classic post is that real-time is quite valuable in the context of “the damage caused when missing a deadline”.  When you look at that from a business value perspective, his approach leads to four types of real-time (see Figure 1):

  1. Soft real-time: there is a sense to react after the deadline, but the utility decreases (maybe fast) and at some point gets to zero – no use to do it at that point, but no damage.
  2. Firm real-time: The utility go immediately to zero when the deadline is missed – no use to do it after the deadline, but no damage.
  3. Hard essential: Missing the deadline – the utility function goes to a constant negative value; there is a constant penalty.
  4. Hard critical: Missing the deadline – the utility function goes immediately to “minus infinity”, means: a catastrophe will happen.

Figure 1. Four Types Of Real-Time And their Implications Of Missing A Deadline

Source: Dr. Opher Etzion

 

The Shift From Real-Time To Right-Time Prioritizes Events By Business Value

A deeper examination of the four types shows that business value can easily be quantified in the hard essential and hard critical types as these result in penalties and disasters when real-time is not achieved.  In the case of firm real-time, the lack of timely response results in a wasted and non-valiant effort.

Consequently, organizations must prioritize business processes for real-time by business value achieved and potentially lost.  Essentially, this prioritization results in the notion of right time delivery of information. Moreover, right time increases in value as a concept when gauged against reactiveness versus proaactiveness.

As we break down business processes by interactions, an emerging class of applications move beyond transactions.  In fact, these applications must quickly determine right time actions at the point of engagement that follow 4 distinct types (see Figure 2):

  1. Proactive value added anticipation: the heart of engagement applications, anticipation allows for proactive response.  Examples include offers, suggestions, actions based on context drivers.  Context drivers could include location, presence, time, proximity, relationships, previous purchase behaviour, etc..
  2. Mission critical reactions: where most “real-time” use cases tend to fit, this type addresses deadlines, commitments, and regulations.  Examples include response times, regulatory requirements, alerts, threshold triggers, and service level agreements.
  3. Nice things to do: reminders with minimal impact but provide proactive engagement.   Examples include status updates, background information suggestions, and non-critical notifications.
  4. Timeless responses: where useless information resides in an abyss.  Examples include log reports, short action items, nice to know information from activity streams.

More…

Product Review: Inside SAP’s Line-of-Business OnDemand Strategy

SAP’s Sales OnDemand Strategy Reveals A Longer Term Product And Cloud Strategy

In an exclusive briefing on February 24th with SAP’s Executive Vice President of Line Of Business Applications, John Wookey, he provided fresh insight into the new product design and Cloud philosophy at SAP.  This pre-CeBit announcement coincided with the SAP Analyst Day in Boston.  A few take-aways from the briefing reveal:

  • An investment in design thinking behind future Line-of-Business products. With consumer technologies entering the enterprise at a blistering pace, it’s become obvious that today’s enterprise apps only support a small percentage of the work people must accomplish on a daily basis.  SAP’s Line Of Business apps team starts with a design thinking approach.  The initial objectives leverage SAP’s rich history of process excellence, focus on people empowerment, and align with business objectives to achieve a clear purpose.etc.

    Point of View (POV):
    The software industry has taken note in how Design Schools around the world solve problems in user experience and adoption.  SAP’s design thinking process reflects the classical 7 phases of define, research, ideation, prototype, objectives, implement, and learn.  Pairing a design thinking approach and agile development methodologies has led to an understanding of what tasks people need to get done and how to quickly create iterations.   The result – more intuitive user experiences and new product releases every 6 months.  More time is spent on upfront design not engineering.  If successful, Co-CEO Jim Hagemann Snabe will have shown how his focus on agile will pay off across the development organizations.

  • Solutions such as Sales On Demand (Sales OD) that empower people to be effective. From the beginning, the product begins with collaboration through the use of activity streams (i.e. Facebook, Twitter like user experience).  Team collaboration is enhanced with access to key content, analytics, and even competitor information (see Figure 1).  Design points focus on delivering the right content, to the right people, at the right time, on the right form factor.  Analytics provide self-service reports (see Figure 2).  Sales effectiveness concepts build around the 4Cs (i.e. the right context, right contacts, right content, and the right contract).

    POV:
    Sales Force Automation (SFA) solutions in the past failed to address the needs of the Sales Professional and the customer.  As with most customer relationship management solutions, they covered the “M” in CRM and ignored the customer (C) and the relationship (R). SAP’s Sales On Demand product is different as it addresses the key issues in helping sales professional receive relevant information and collaborate with their networks in an intuitive manner.  Users will be surprised that this is an SAP application. Despite only delivering 20% of the full SAP CRM suite Sales application capability, the 20% provided delivers 80% of the key capabilities to support sales person effectiveness.

Figure 1.  Activity Streams (Feeds) Deliver A Intuitive And Collaborative User Experience

(Source: SAP)

More…

Research Report: Constellation’s Research Outlook For 2011

Organizations Seek Measurable Results In Disruptive Tech, Next Gen Business, And Legacy Optimization Projects For 2011

Credits: Hugh MacLeod

Enterprise leaders seek pragmatic, creative, and disruptive solutions that achieve both profitability and market differentiation.  Cutting through the hype and buzz of the latest consumer tech innovations and disruptive technologies, Constellation Research expects business value to reemerge as the common operating principle that resonates among leading marketing, technology, operations, human resource, and finance executives.  As a result, Constellation expects organizations to face three main challenges: (see Figure 1.):

  • Navigating disruptive technologies. Innovative leaders must quickly assess which disruptive technologies show promise for their organizations.  The link back to business strategy will drive what to adopt, when to adopt, why to adopt, and how to adopt.  Expect leading organizations to reinvest in research budgets and internal processes that inform, disseminate, and prepare their organizations for an increasing pace in technology adoption.
  • Designing next generation business models. Disruptive technologies on their own will not provide the market leading advantages required for success. Leaders must identify where these technologies can create differentiation through new business models, grow new profit pools via new experiences, and deliver market efficiencies that save money and time.  Organizations will also have to learn how to fail fast, and move on to the next set of emerging ideas.
  • Funding innovation through legacy optimization. Leaders can expect budgets to remain from flat to incremental growth in 2011. As a result, much of the disruptive technology and next generation business models must be funded through optimizing existing investments. Leaders not only must reduce the cost of existing investments, but also, leverage existing infrastructure to achieve the greatest amount of business value.

More…

Research Summary: Software Insider’s Top 25 Posts For 2010

Themes In 2010 Reflected The Buy Side Demand For Both Optimization and Innovation

Technology buyers in 2010 focused most of their priorities on finding cost savings through legacy optimization, navigating a flurry of disruptive technologies, and designing/experimenting with new business model innovations.  Consequently, the top 25 posts for 2010 reflected these 3 major themes:

Legacy Optimization

Disruptive Technology

Business Innovation

More…

Research Report: 2011 Cloud Computing Predictions For Vendors And Solution Providers

This blog was jointly posted by @Chirag_Mehta (Independent Blogger On Cloud Computing) and @rwang0 (Principal Analyst and CEO, Constellation Research, Inc.)

Part 1 was featured on Forbes: 2011 Cloud Computing Predictions For CIO’s And Business Technology Leaders

As Cloud Leaders Widen The Gap, Legacy Vendors Attempt A Fast Follow
Cloud computing leaders have innovated with rapid development cycles, true elasticity, pay as you go pricing models, try before buy marketing, and growing developer ecosystems.  Once dismissed as a minor blip and nuisance to the legacy incumbents, those vendors who scoffed cloud leaders now must quickly catch up across each of the four layers of cloud computing (i.e. consumption, creation, orchestration, and infrastructure) or face peril in both revenues and mindshare (see Figure 1).  2010 saw an about face from most vendors dipping their toe into the inevitable.    As vendors lay on the full marketing push behind cloud in 2011, customers can expect that:

Figure 1. The Four Layers Of Cloud Computing

General Trends

  • Leading cloud incumbents will diversify into adjacencies. The incumbents, mainly through acquisitions, will diversify into adjacencies as part of an effort to expand their cloud portfolio. This will result into blurry boundaries between the cloud, storage virtualization, data centers, and network virtualization.  Cloud vendors will seek tighter partnerships across the 4 layers of cloud computing as a benefit to customers.  One side benefit – partnerships serve as a pre-cursor to mergers and as a defensive position against legacy on-premises mega vendors playing catch up.
  • Cloud vendors will focus on the global cloud. The cloud vendors who initially started with the North America and followed the European market, will now likely to expand in Asia and Latin America.  Some regions such as Brazil, Poland, China, Japan, and India will spawn regional cloud providers. The result – accelerated cloud adoption in those countries, who resisted to use a non-local cloud provider.  Cloud will prove to be popular in countries where software piracy has proven to be an issue.
  • Legacy vendors without true Cloud architectures will continue to cloud wash with marketing FUD. Vendors who lack the key elements of cloud computing will continue to confuse the market with co-opted messages on private cloud, multi-instance, virtualization, and point to point integration until they have acquired or built the optimal cloud technologies.  Expect more old wine (and vinegar, not balsamic but the real sour kind, in some cases) in new bottles: The legacy vendors will re-define what cloud means based on what they can package based on their existing efforts without re-thinking the end-to-end architecture and product portfolio from grounds-up.
  • Tech vendors will make the shift to Information Brokers. SaaS and Cloud deployments provide companies with hidden value and software companies with new revenues streams.  Data will become more valuable than the software code. Three future profit pools willl include benchmarking, trending, and prediction.  The market impact – new service based sub-categories such as data-as-service and analysis-as-a-service will drive information brokering and future BPO models.

SaaS (Consumption Layer)

  • Everyone will take the SaaS offensive. Every hardware and system integrator seeking higher profit margins will join the Cloud party for the higher margins.  Software is the key to future revenue growth and a cloud offense ensures the highest degree of success and lowest risk factors.  Hardware vendors will continue to acquire key integration, storage, and management assets.  System integrators will begin by betting on a few platforms, eventually realizing they need to own their own stack or face a replay of the past stack wars.
  • On-premise enterprise ISVs will push for a private cloud. The on-premise enterprise ISVs are struggling to keep up with the on-premise license revenue and are not yet ready to move to SaaS because of margin cannibalization fears,lack of   scalable platforms, and a dirth of experience to run a SaaS business from a sales and operation perspectives. These on-premise enterprise software vendors will make a final push for an on-premise cloud that would mimic the behavior of a private cloud. Unfortunately, this will essentially be a packaging exercise to sell more on-premise software.  This flavor of cloud will promise the cloud benefits delivered to a customer’s door such as pre-configured settings, improved lifecycle, and black-box appliance. These are not cloud applications but will be sold and marketed as such.
  • Money and margin will come from verticalized cloud apps. Last mile solutions continue to be a key area of focus.  Those providers with business process expertise gain new channels to monetize vertical knowledge.  Expect an explosion of vertical apps by end of 2011.  More importantly, as the buying power shifts away from the IT towards the lines of businesses, highly verticalized solutions solving specific niche problems will have the greatest opportunities for market success.
  • Many legacy vendors might not make the transition to cloud and will be left behind. Few vendors, especially the legacy public ones, lack the financial where with all and investor stomachs to weather declining profit margins and lower average sales prices.  In addition, most vendors will not have the credibility to to shift and migrate existing users to newer platforms.  Legacy customers will most likely not migrate to new SaaS offerings due to lack of parity in functionality and inability to migrate existing customizations.
  • Social cloud emerges as a key component platform. The mature SaaS vendors that have optimized their “cloud before the cloud” platform, will likely add the social domain on top of their existing solutions to leverage the existing customer base and network effects.  Expect to see some shake-out in the social CRM category. A few existing SCRM vendors will deliver more and more solutions from the cloud and will further invest into their platforms to make it scalable, multi-tenant, and economically viable.  Vendors can expect to see some more VC investment, a possible IPO, and consolidation across all the sales channels.

More…

Trends: 2011 Cloud Computing Predictions For CIO’s And Business Technology Leaders

This blog was jointly posted by Chirag Mehta (Independent Blogger On Cloud Computing) and R “Ray” Wang (Principal Analyst and CEO, Constellation Research, Inc.)

Cloud Adopters Embrace Cloud For Both Innovation and Legacy Optimization

Once thought to be the answer to deployment options for just the SMB market, early cloud adopters proved otherwise.  Stereotypes about industry, size of company, geographies, and roles no longer hold back adoption.  Cloud adoption at all 4 layers of the cloud passed the tipping points in 2010 as a key business and technology strategy (see Figure 1).  For 2011, we can expect users to:

Figure 1. The Four Layers Of Cloud Computing

General Trends Reflect Natural Maturation Of The Cloud Market

  • Replace most new procurement with cloud strategies.  Preference in deployment options and lack of availability of innovative solutions in on-premises options will result in a huge shift for 2011.  Add capex swap out for opex, and most CFO’s will be singing the praises of Cloud along with the business and IT leaders.
  • Start with private clouds as a stepping stone to public clouds.  Conservative CIO’s looking to dip their toes into cloud computing will invest into private cloud while evaluating the public cloud at the same time.
  • Get real about security. Customers will move from “the cloud is not secured” to “how can security be achieved in the cloud?”.  They will start asking real questions about security.  The result — cloud vendors must further showcase various industry-specific compliance approaches.
  • Move to private clouds as a back up to public clouds.  Forecasts in cloud security breaches will call for partly cloudy cloud adoption.  Despite the woes in on-premises security and the march to the cloud, cyber attacks will force companies to mov e from public clouds to private clouds in 2011.  Concern about cyber gangs hacking into commercial and military systems leads to a worldwide trend that temporarily reduces public cloud adoption.  Hybrid models for apps in the public cloud and data in the private cloud emerge as users migrate from on-premises models.  Data integration and security rise to key competencies for 2011.  The bottom line – improved data security reliability will drive overall cloud adoption in the latter half of 2011.  Organizations will keep private clouds for both security and back up.

SaaS (Consumption Layer) Emerges As The Primary Access To Innovation

  • Begin the transition from best of breed purpose built solutions to cloud mega stacks. Customers will still need stacks to be augmented by best of breed purpose built solutions.  As with the early days of ERP and CRM, expect su ite consolidation to occur for SaaS apps vendors.   However, the vendors with both the best PaaS platform and ecosystem will win.  Mature cloud customers will bet on several emerging platforms and apps as well as content driven cloud platforms complemented by strong integration solutions.  Access to deep industry vertical solutions will play a key role in this migration.  The need to quickly innovate will hasten SaaS adoption.
  • Superior user experience and scale won’t be mutually exclusive. The customers, especially the line of businesses (LOBs) will demand superior user experience as well as the scale in the SaaS applications and the tools that they will use. Ease of use will be on top of the list while evaluating a SaaS application and will help the SaaS vendors win a deal against on-premise incumbents whose products may have more features but poor user experience.

More…

Research Report: How The Five Pillars Of Consumer Tech Influence Enterprise Innovation

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

More…

Research Report: Next Gen B2B and B2C E-Commerce Priorities Reflect Macro Level Trends

Recessionary Forces Challenge Organizations To Not Only Right Channel, But Also Personalize

Organizations with e-commerce initiatives face a flurry of competitive forces that challenge existing assumptions put in place a decade ago.  On the operational efficiency front, organizations must battle reduced product margins, shorter product life cycles, greater pricing transparency, and increased friction in multi-channel sales.  From a strategic differentiation point of view, organizations must enhance product offerings with services, improve the customer experience with loyalty top of mind, and tailor personalized experiences that support self-service options and mobility.  In addition, as customers have shifted their buying behaviors, social channels gain importance in how organizations engage their key stakeholders.

E-Commerce Evolves To Meet Next Gen Requirements

Given the landscape, organizations must adjust to less control of their business than the prior decade.  The rules have changed.  Buying behaviors have evolved.  Consequently, organizations must relearn and reengage to revive their e-commerce initiatives.  They should establish trust, not obfuscate through half-truths.  They should focus on influence, not attempt at regaining control.  Consequently, e-commerce must play a key role in the transformation of the customer’s buying experience.  In fact, next generation e-commerce initiatives must address 12 shifts such as (see Figure 1):

  1. Ownership. Governance transitions from a siloed role to part of the overall buying experience.
  2. Approach. Organizations shift from top-down messaging to bottom-up advocacy.
  3. Business requirements. Efforts focus on completing industry vertical specialization.
  4. Marketing style. Initiatives target bolstering brand trust.
  5. Channel management. E-commerce re-integrates back to the overall buying process as a significant entry point to customer lifetime value.
  6. Business process. Functional excellence grows into end to end perfect orders.
  7. Personalization. Improvements in technology enable tailored buying experiences.
  8. Business analytics. Business intelligence moves from basic reporting to real-time decision support.
  9. Social media. Non-existent programs evolve to address one of the greatest trends of the decade.
  10. Product margins. Organizations must evolve to grow profitable revenues.
  11. Product life cycle. Decreasing product life cycles require better inventory management and demand planning.
  12. Deployment options. Multiple options exist and organizations have more opportunities to experiment with try and buy SaaS alternatives.

Figure 1.  E-Commerce Evolves To Meet Next Gen Requirements


More…