Posts Tagged ‘#techoptimization’

Monday’s Musings: Trends In The Top Software Insider Posts of 2012 (#softwareinsider)

Thank You For Your Support

SoftwareInsider.org generated almost 10 million page views in 2012 (see Figure 1).  This does not include syndication through Constellation Research, Forbes (discontinued in 2012), Enterprise Irregulars, Computerworld UK, and other great media partners.

Figure 1.  Software Insider Achieved 9.8M Page Views for 2012

Classic Posts Address The Key Fundamentals In The Disruptive Technology Shift

Four posts have made the all time favorite list and address the 5 consumer technology forces that influence enterprise software.

  1. Monday’s Musings: How The Five Consumer Tech Macro Pillars Influence Enterprise Software Innovation
  2. Research Report: The 18 Use Cases of Social CRM and The New Rules of Relationship Management
  3. Tuesday’s Tip: Understanding the Many Flavors of Cloud Computing
  4. Best Practices: Five Simple Rules for Social Business

2012 Top 40 Reflects A Broader Shift To Business Outcomes And Technology Adoption

Analyst Relations and the World of Influence - The top blog post of 2013 discussed the future of the industry analyst versus legacy analyst firms.

Consumerization of Technology and The New C-Suite – The impact of technology on the C-suite has never been greater.  As business strategy relies more on technology, CMOs, CFOs, and other line of business heads can expect to work more closely with the CIOs and CTOs.

More…

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…

Tuesday’s Tip: Act Now To Leave The Door Open For SAP Third Party Maintenance Options

The Real Deadline To Consider Third Party SAP Maintenance Is September 30th

In conversations with hundreds of SAP customers, many have not realized that they must act now in the next 30 to 45 days if they want to move off of SAP customer specific maintenance from extended maintenance for older products. Despite the support window ending in March 2013 for extended maintenance, SAP is requiring organizations to serve notice by September 30th, 2012 (see Figure 1). Key products impacted by this deadline include:

  • SAP ERP 2004 (ECC 5.0)
  • SAP NetWeaver 7.0
  • SAP CRM 6.0
  • SAP SCM 5.1
  • SAP SRM 6.0
  • SAP SRM 5.0
  • SAP CRM 5.0
  • SAP SCM 5.0
  • SAP Netweaver 2004
  • SAP SRM 4.0
  • SAP SCM 4.1
  • SAP R/3 Enterprise (4.7)
  • SAP R/3 4.6C

In past experiences, SAP has taken a hard line on the notification date and customers need to immediately take action should they wish to have the maximum support options available to them.

To be clear, those on SAP’s Business Suite 7 have a longer maintenance support window (see Figure 2.) Those products will be supported with mainstream maintenance until 2020.

Figure 1. SAP Maintenance Strategy and Support Time Lines For Older Releases (2010) Revised With 2012 Version

Figure 2. SAP Business Suite 7 Innovation Road Map Provides Longer Maintenance Until 2020

Customer Specific Maintenance Comes With Many Disadvantages

More…

News Analysis: IFS Acquires Metrix To Boost Mobility And Service Management

Mobility and Scheduling Play A Key Role In IFS Service Management Strategy

On May 23rd, IFS acquired Metrix, a service management and mobility vendor headquartered in Waukesha, Wisconsin.  IFS adds 90 customers with Metrix.  Key highlights of the acquisition include:

  • Expansion into new markets. Metrix Service Management provides a field service management and depot repair solution for high volume service industry segments.  Metrix succeeds in key industries such as Asset & Capital Equipment, Telco, High-Tech & Medical, and Defense.  Key brands among the 90 new customers include Ericsson, Motorola, Xerox, DHL and ITT to IFS’ portfolio.  Other key offerings include service contact center, service scheduling, contract management, warranty management, and service project management.

    Point of View (POV):
    Metrix’s products allows customers to automate mobile field service, streamline repair processes, improve customer service, and increase service profitability.  While, IFS pioneered service management for many areas including asset intensive industries, the Metrix acquisition opens up the profitable North American market.  Deployment modes in SaaS will allow IFS to quickly cross-sell to existing customers and bring in new prospects.  Along with a robust field service management solution, Metrix delivers a solid reverse logistics solution that encompasses service repair, returns management, warranty management, and service parts logistics. IFS could benefit from this in-house capability to expand current offerings.
  • Advancing into mobile apps. The Metrix solution provides a broad solution across the enterprise (see Figure 1).  Agents gain mobile reporting tools, assess customer satisfaction with in the field customer surveys, and optimize receiving and shipping management tasks.  Other mobile use cases include the ability to verify customer history and product warranties, track serialized part inventories and repair stock, and enjoy one-click customer calling and emailing.  The solution currently supports Windows and Android.  Metrix Mobile contains a development framework and a set of off-line applications for field service and maintenance that support Android, Microsoft Windows Mobile, Windows 7 and Windows 8.

    Point of View (POV):
    Metrix improves IFS’ capability in delivering both on-line and importantly off-line solutions.  Should IFS complete integration of Metrix to IFS applications, customers will gain the benefits of an integrated mobile application.  Lack of native iPhone support should not immediately impact the market, due to the lack of ruggedized devices on Apple. Long term, the lack of offline, store and forward capabilities for  iOS support creates a huge hole in the portfolio as iOS penetration increases across the enterprise at a geometric growth rate.  IFS does provide full online support of the iPad in the full suite of IFS applications.
  • Delivery of integrated scheduling with field service. Integration with 360 Scheduling delivers advanced resource optimization.  Metrix already had a partnership with 360 Scheduling.

    Point of View (POV):
    Integration with 360 Scheduling allows IFS and Metrix to take advantage of their proven algorithms that go beyond the legacy batch scheduling, business rule, optimization approaches.  Integration with Metrix enables customers to address planned and unplanned demand forecasting, skills gaps, location optimization, resource optimization, and profitability.

Figure 1. The Broad Range Of Mobile Scenarios Supported By IFS Applications More…

News Analysis: Spinnaker Expands JD Edwards Support With Versytec Acquisition

Versytec Acquisition Addresses Growing Demand For JD Edwards Support


Denver, Colorado based Spinnaker Management announced on March 6th, 2012 its acquisition of competitor Versytec.  For those who remember their third party maintenance (3PM) history, Versytec was among the first firms to announce third-party maintenance services within a year after PeopleSoft acquired JD Edwards in July 18, 2003.  Constellation estimates that Nashua, New Hampshire based Versytec had between 35 to 40 active 3PM customers.

Third-party maintenance describes support and maintenance offerings delivered by non-OEM providers. These vendors can provide a range of options from basic break/fix to bug fixes, performance optimization, tax and regulatory updates, and customization support. Keep in mind, 3PM does not provide access to upgrades and future versions of the OEM’s product. One big driver is the lower cost of delivery, as much as half the cost of the original vendor’s pricing.  Today most customers pay in maintenance and support the equivalent of a new license every 5 years without achieving the value.  For an average JD Edwards customer that upgrades every 15 years, that’s three times the cost of the original license cost.  In the latest Constellation research report, third party maintenance is one of many strategies to free up millions for customers to fund innovation.

The Spinnaker-Versytec deal is important for a few reasons:

  • Many JD Edwards customers seek alternatives to Oracle’s pricey maintenance fees. Software ownership costs continue to escalate as vendors accelerate their efforts to capture support and maintenance revenues.  From inquiries, surveys, and conversations on the ground, many Oracle JD Edwards World and EnterpriseOne ERP customers seek options to buy-time as they consider whether they upgrade or migrate from their current version.  Why?  Most JD Edwards customers run stable environments and do not gain any value from the Oracle one-size fits all 22% support policy.  Most customers seek phone support and tax and regulatory updates.
  • The market needs more options and choices in the third party maintenance market. Many OEM vendors have gone to the extreme to eliminate third-party options for their customers.  This anti-competitive behavior takes away choice for the customer. A bulked up Spinnaker creates a viable organization that has the critical mass to compete with Oracle.   The combined entity provides third party support services to an estimated 100 160 JD Edwards customers across the globe.
  • Spinnaker Support offers a different approach to third party maintenance. Spinnaker couples its third party maintenance options with consulting services providing a one-stop shop for JD Edwards customers.  Spinnaker also differentiates in its download methodology of customer entitled IP from Oracle.  Spinnaker provides customers with a checklist of what to download prior to migration off Oracle support.

The Bottom Line: Users Must Advocate for Third-Party Maintenance Rights Across the Technology Stack

More…

Research Summary: Best Practices – Three Simple Software Maintenance Strategies That Can Save You Millions

Forward And Commentary

Software ownership costs continue to escalate as vendors accelerate their efforts to capture support and maintenance revenues. Some vendors have gone to the extreme to eliminate third-party options for their customers. This best practices report examines three strategies to free up unnecessary costs to fund innovation and new projects.

A. Introduction

On average, IT budgets are down from 1-5 percent year-over-year, yet software support and maintenance costs continue to escalate ahead of inflation. Hence, continued pressure on IT budgets and a growing need for innovation projects have top business and technology leaders reexamining their software support and maintenance contracts for cost efficiencies.

Based on experience from over 1500 software contract negotiations, Constellation suggests three approaches to reduce the cost of software support and maintenance. Key strategies include third-party maintenance, shelfware reductions and unbundling maintenance contracts as part of every organization’s tech optimization strategy. Successful implementation can lead to savings from 10-25 percent of the IT budget, freeing up cash to fund innovation initiatives.

B. Research FindingsWhy Every Organization Should Consider Third-Party Maintenance, Shelfware Reductions and Unbundling Maintenance Contracts

Most organizations suffocate from the high and hidden cost of support and maintenance. On average, Constellation’s surveys reveal global IT budgets trending down from 1-5 percent year-over-year since 2008. Consumerization of IT, rapidly changing business models, and aging infrastructure have exposed the high cost of software support and maintenance. Because most organizations allocate from 60-85 percent of their budget to keeping the lights on, very little of the budget is left to spend on new projects (see Figure 1).

Organizations can unlock millions by considering third-party maintenance (3PM), reducing shelfware, and keeping support and maintenance contracts unbundled. Each strategy on its own creates opportunities to drive cost savings. All three strategies combined, provide a roadmap for funding innovation.

  1. Third-party maintenance (3PM) delivers the most immediate cost savings and opportunity for innovation. Third-party maintenance describes support and maintenance offerings delivered by non-OEM providers. These vendors can provide a range of options from basic break/fix to bug fixes, performance optimization, tax and regulatory updates, and customization support. Keep in mind, 3PM does not provide access to upgrades and future versions of the OEM’s product. One big driver is the lower cost of delivery, as much as half the cost of the original vendor’s pricing.  The report shows a survey of 268 respondents and why organizations choose 3PM and who the key vendors are.
  2. Reduction of shelfware remains a key pillar in legacy optimization strategies.  Shelfware (i.e. purchased software, not deployed, but incurring annual maintenance fees) is one of the biggest drains on operational expenses for enterprises. The simple definition of shelfware is software you buy and don’t use. For example, an organization that buys 1000 licenses of Vendor X’s latest ERP software and uses 905 licenses, becomes the proud owner of 95 licenses not being utilized. That’s 95 licenses of shelfware because the user will pay support and maintenance on the license whether or not they use the software or not.  The report details 4 successful and proven approaches.
  3. Unbundling maintenance contracts prevents future vendor mischief. About a decade back, vendors would offer support and maintenance as two separate line items on their contracts. Support would run about 5-10 percent of the license fee and so would maintenance. Keep in mind, average support and maintenance fees were under 15 percent back then. Unfortunately, many users have expressed a growing and concerning trend with support and maintenance contracts. Vendors concerns about support and maintenance contract retentions have led to new initiatives to consolidate contracts. At first glance, this may appear to be proactive and beneficial to customers, but the report details three rationales vendors provide and three strategies how to avoid bundling.

Figure 1. Visualizing the High Costs of Support And Maintenance

(Right-click to see full image)

More…

Research Summary: Best Practices: Consolidated CRM Deployments Drive Paths to Modernization And Social CRM (SCRM)

Forward And Commentary

As with any maturing product category, CRM applications have evolved over time from point applications to best of breed solutions to end-to-end suites. This report examines some common styles of modernization as CRM emerges from the systems of transaction era to the systems of engagement era and beyond.

A. Introduction

With the average CRM deployment nearing the end of their useful life, over 85 percent of line of business executives and CIOs intend to upgrade their CRM systems in the next 24 months.  Why? Customer expectations and a slew of innovative solutions have changed the delivery of customer centricity. Key factors include the need to adopt disruptive technologies, complete the customer view, and achieve business value.

Constellation’s latest survey of over 200 CRM decision makers highlights a trend to consolidate the CRM core as organizations chart four paths to CRM modernization.  The four paths – stay with status quo, move to shiny new CRM, consolidate and augment, and modernize and surround with best-of-breed – represent pragmatic approaches to achieve customer centricity.

Regardless of approach, Constellation recommends that executives approach CRM modernization with a lens that accounts for including tangibles, intangibles and contingencies in the calculations of business value. Using the Constellation Business Value Framework, organizations can quickly compare the four paths of CRM modernization and determine the most appropriate path.

B. Research FindingsBest Practices Indicate That a Consolidated Core Is the First Step to Modernization

Among 203 respondents, the majority (85.7 percent) intends to make significant efforts to modernize their CRM efforts in the next 24 months (see Figure 1.). The four paths to modernization include:

  1. Stay with status quo (14.3 percent). Organizations may choose to continue business as usual. The catalysts for change include major events such as new business models, merger and acquisition, or regulatory requirements. Status quo includes keeping the system as is. Most organizations in this category have either really good adoption or overbought and barely take advantage of existing capabilities. Backers of the status quo scenario find little business value justification and line of business support in making any changes. Many line of business executives and CIOs gain peace of mind knowing that their CRM landscape remains consolidated on one or two platforms and can deliver the power of an integrated core.
  2. Move to shiny new CRM (21.2 percent). Organizations may choose to stay with their existing vendor to avoid any mass changes in training, adoption and implementation costs. Another popular option will be to do a full out rip and replace. The financial wonks will weigh the cost of a reimplementation against the cost of doing nothing – status quo and making an upgrade with an existing vendor. CIO-led organizations will want the power of an integrated core and minimize point solutions.
  3. Consolidate CRM and augment with best-of-breed (37.9 percent). Organizations may choose to consolidate their CRM environment and surround with best-of-breed applications. SaaS applications and CRM point solutions now play a key role in enabling extensibility to CRM customers. Augmentation with third-party solutions with an integrated core not only ensures that business users gain critical functionality, but also provides users with leverage in future contract negotiations. With CMOs and line of business executives in the front office taking back IT budgets, expect CIOs to argue for consolidation of the core as a call for sanity in overall IT strategy.
  4. Upgrade CRM and surround with best-of-breed (26.6 percent). CRM deployments typically run a five to seven-year life cycle. With the last big set of implementations in the 2004 to 2005 era, almost 50 percent of organizations plan an upgrade. Many line of business executives want to upgrade their core CRM system and then modernize their integrated core by adding best-of-breed apps on top of CRM. This option resonates best with line-of-business-led organizations and those with rapidly changing business models and dynamic businesses.

Figure 1.  Get To SCRM By Taking The Four Paths To CRM Optimization

More…

Press Release: Constellation Research Appoints Sachin Gosavi As VP of India

Constellation Research Inc, an award winning, specialty research and advisory firm that serves business leaders who seek to unleash the power of emerging and disruptive technologies, today announced the appointment of Sachin Gosavi as Vice President (India). Sachin brings over 12 years of experience in marketing and strategy in India, and will focus on serving the growing demand for technology research services of large Indian firms and technology vendors.

Releasing the announcement, R “Ray” Wang, Principal Analyst and CEO, Constellation Research, Inc., said, “It’s great to have someone like Sachin on board in India. His proven track record in technology research business along with strong ‘C’ suite networking abilities will be valuable to our growth. In addition, his deep understanding of the independent technology research space will be help drive business value for our clients in India.”

Commenting on his appointment, Sachin Gosavi said, “Constellation Research has established itself as the true model of disruptive technology research, so am quite excited to join them. Most Constellation analysts bring over 2 decades of hands-on experience in working with senior leaders in enterprise organizations, and am looking forward to working with such stalwarts.”

In his previous role for a brief timeframe, Sachin was an independent marketing consultant advising technology start-ups. Prior to that, Sachin spent about six years with Forrester Research spearheading it’s marketing function in India. Through innovative methods, he not only helped establish the brand Forrester in India, but also significantly raised the marketing bar for it’s competitors in local markets.

Gosavi earned his Master’s in Economics from the University of Pune, and PGDMM from IMDR, Pune.

At Constellation, Sachin will engage with both (technology) buy side and sell side clients in India. His responsibilities include:

  • Business development in India
  • Establishing partnerships between Indian firms- industry bodies and Constellation’s expert knowledge base
  • Assisting buy side business leaders with insight into the future of work, next gen customer experience, cross channel commerce, big data and analytics, and technology adoption
  • Helping Indian firms accomplish their specific business objectives around enterprise software, ERP, Mobile, BI, SCM, PBS, CRM, Collaboration, Analytics, UC, Gov 2.0 and Social

COORDINATES

Twitter@sachingo
Linked Inhttp://www.linkedin.com/in/sachinvgosavi
Geographical Location: Pune, India
Email: sachin (at) ConstellationRG (dot) com.
Mobile: +91.9822.555.012

Office:
A2/405, Mont-Vert Pristine, Off Aundh Road,
Pune 411020 (India)

Website: http://www.constellationrg.com

ABOUT CONSTELLATION RESEARCH, INC.*
Constellation Research is an award winning, specialty research and advisory firm that serves business leaders who seek to unleash the power of emerging and disruptive technologies.  Our analysts start by understanding the business objective, applying real world experience and insights, and then incorporating disruptive technologies and business models as appropriate.  We cater to board of directors and c-suite executives looking for an edge in business model and technology innovation.  Research outputs always provide an insightful buy-side point of view.

Why Your Mission Is Our Mission

In today’s business environment, the rate of change is not only constant, but also rapidly escalating.  New business models by upstarts disrupt competitors with increasing frequency in all industries and markets.  In just 10 years, even 5 years, or dare say 24 months, many established companies have been left vulnerable, beaten down, and toppled by new upstarts.  Why? Business leaders have been too slow to react to their customers and the changes happening in the societal, technological, environmental, economic, and political fronts.

In business models, products are now excuses to sell services.  Product innovation cycles have shortened from years to months to weeks.  On the work front, five generations in the workforce disagree on where to work, how to work, when to work, and why to work.  Add the current trend of consumerization of IT  to the pace of change and business leaders must strategically determine which new technologies should be considered.

Unfortunately, the legacy research analyst firms and advisory firms continue to fail their clients when faced with these new challenges. Why? Their myopic focus on an IT centric point of view ignores the realities of the market.  In fact, Constellation estimates that the average IT budget is down 5% year over year and at best up 2% among the most innovative companies.  However, tech spending is up on average 18 to 22% at the most innovative firms.  What’s happened? The buying power has shifted and business leaders increasingly take control of how they are applying technologies to their business while whittling down the corporate IT budget for operational efficiencies.

Why Your Success Is Our Objective

We’re business leader and business value focused. Constellation differentiates itself in the market in two ways by:

  1. Focusing on the board room and C-suite point of view. Constellation’s research addresses the needs of boards, CEOs, CFOs, CIOs, CMOs, CHROs, CPOs, CSCOs, and COOs.
  2. Addressing the business problem first.  Research starts by addressing business value and then applying where disruptive and emerging technologies may play a role.

The result – Constellation serves as a coach and advisor to senior business leaders working on tough business problems including:

  • The future of work
  • Next generation customer experience
  • Cross channel commerce across the supply and demand chain
  • Digital marketing transformation
  • New organizational models including People-to People Networks
  • The new C-suite
  • Big data, decision systems, and information management
  • Business value frameworks and metrics for success
  • Energy management and green tech
  • Legacy technology optimization

We look forward to serving you with Insight, Inspiration, and 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 (at) ConstellationRG (dot) com
for interviews with analysts.

Sales Contacts:

Here’s how to reach our sales team:

Alexandre Mesquita
Email:
Alexandre (at) ConstellationRG (dot) com.
Phone: +1.786.564.4246
Twitter@amesquit

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