The End of Advertising, The Beginning of Relationships

James McQuivey

Today my colleagues and I publish a bombshell of a report. Titled, "The End of Advertising As We Know It," the report at first glance fits nicely into the current backlash against major publishers and ad networks, including Google and Facebook. Led by P&G Chief Brand Officer, Marc Pritchard, major advertisers like GE and JP Morgan Chase have been reexamining their digital display advertising spend and threatening to cut significant dollars out as they pressure companies like Google and Facebook to provide more transparency and ultimately more standardization into their ad reporting. It all adds up, as we show in an infographic excerpted here, to what feels like a revolt.

All of this is good, necessary, and moving in the right direction for the health of the digital advertising economy. You have to have confidence in what you're buying and right now advertisers don't, for very good reasons. But that is not why we're declaring 2017 the year in which advertising as we know it comes to an end. Something bigger than that is happening. Or should be, if it's not, and that's why we wrote the report. What are we trying to make happen? It's less about the mechanics of advertising and more about a shift consumers are about to go through. Put simply, the end of advertising is coming because interruptions are coming to an end. As I say in the report:

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Are You On An Agile+DevOps Journey? Don’t Miss Out On Continuous Testing Services!

Diego Lo Giudice

It happens often in conversations with clients that I realize they have disjointed initiatives going on to support their digital transformation. The most dangerous parallel initiatives are those where, on one side, they are changing their development teams to become more Agile, but a separate initiative in the same enterprise exists where their Operations folks are running a development and operations (DevOps) transformation. The first thing I recommend to those clients is to unify or tightly connect those programs with an underlining common lean strategy. But I don’t want to dig in here about Agile+DevOps and how overused and abused the term “DevOps” is. I will just recommend to you some reports we’ve published explaining how “Agile” and “DevOps” are two sides of the same coin (see, for example, “Faster Software Delivery Will Accelerate Digital Transformation”).  The Modern Application Delivery playbook I’ve co-authored for years is all about what it means to adopt Agile+DevOps. Check that out too.

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Reflections On Huawei’s Analyst Summit 2017 — Past, Present, And Future

Dan Bieler

In April 2017, Huawei hosted its annual Analyst Summit in Shenzhen, China. Huawei’s financial year 2016 was remarkable as the group grew revenues by 32% to US$ 75 billion, making Huawei the largest global network solutions vendor by revenues, way ahead of its traditional competitors Cisco, Nokia, and Ericsson. This calls for some reflections about Huawei’s journey, its past achievements, and its current focus areas. This will help us to understand where Huawei might be heading in the future.

I have been following Huawei for over 10 years. Over this short timeframe, I have seen Huawei grow into the largest global telco network infrastructure vendor, becoming a leading global smartphone manufacturer, migrating from a low-cost hardware manufacturer toward an innovative product developer, ramping up its service capabilities, moving into delivering products and services to the enterprise segment, and pushing into software development.

These achievements underline that Huawei has achieved an awful lot since rising from its humble beginnings as a producer of phone switches in Shenzhen in 1987. For years, its core competitors have underestimated the capabilities and determination of Huawei to succeed. At the Huawei Analyst Summit 2017, I picked up three key focus areas for Huawei in 2017:

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Not too late to catch Digital Transformation Forum, 2017

Stephen Powers

The moment of truth for your digital re-invention has arrived. Digital technology has rendered your legacy systems obsolete, and has liberated your customers to adopt - and abandon - your offerings at a moment’s notice. You already know it’s time to change. You need to transform your firm to meet your customers’ expectations and ensure flexibility for the future. For hungry companies, the idea of "digital transformation" is an opportunity to expose new business opportunities, evolve operations, and grow.

Next week in Chicago, on May 9-10, Digital Transformation Forum 2017 will help you lay out the next steps in your digital strategy. It will feature sessions where leaders from companies such as Allstate, Bloomingdale’s, Gap, GE Oil & Gas, Expedia, Nespresso, Visa, and AIG will tell stories of how they helped their firms digitally transform and what they learned. In addition, Forrester analysts will present sessions on how you can:

  • See the big picture. Martin Gill will frame Digital Transformation as an enterprise-wide initiative – and one that can’t wait.
  • Engage your customers on any platform. Julie Ask will show how amorphous channels will house your firms’ digital customer interactions in the future and help you plan to add value and win customers through better experiences.
  • Mature your AI strategy from novelty to strategic advantage. Rob Koplowitz will introduce Forrester’s framework for developing the next generation of human/machine interactions.
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Fix Your Marketing Measurement Mess: Key Takeaways And What You Can Do

Tina Moffett

A few weeks ago, my colleague Jim Nail and I conducted a “Fix Your Measurement Mess” workshop at the 2017 Consumer Marketing Forum in New York. Our workshop became a great conversation starter for participants to understand and take inventory of their challenges and to recognize priority metrics for their own businesses.

The 4-hour measurement workshop was a hands-on session to deconstruct marketers’ current measurement approach, prioritize and classify metrics, unearth what makes a valuable metric, and identify the triggers marketers need to start, stop, or continue monitoring as they become more measurement savvy. We discussed current measurement maturity across channels, metrics adoption, and baseline capabilities for measurement success. Here are a few things we learned:

  • Marketers are more confident in their metrics. Our workshop participants know the metrics that help them determine campaign success, customer intention, and customer preference. For example, participants thoughtfully conducted deep analysis of understanding how awareness metrics drove customers to the consideration phases. They also discussed the importance of mapping the distance between a metric and a sale to quantify the real value of their metrics.
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Bimodal IT Is Past Its Due Date: Providing Speed And Innovation Need To Top The CIO's Agenda

Tim Sheedy

Many CIOs have embraced bimodal IT as a way to create relevance for the technology organization in the age of the customer. With marketing, CX, and other teams increasingly building their own development teams or turning to outside agencies for their technology needs, CIOs have recognized that they need to help drive fast change, not be a source of friction. They also need to be a source of innovation for the business. Many CIOs took a shortcut to this end and created a “fast” IT function that sat parallel to the “slow” IT function — and hence bimodal IT was born.

However, most CIOs now recognize that all of the technology team and function needs to be fast. Yes, some systems change less often than others, but all change needs to be fast. There is no longer an appetite for long, drawn-out, technology-led changes. There is no longer a place for slow IT. Testing can’t delay launches; security can’t add months to a project; perfect can’t get in the way of fast. CIOs are taking steps to create a tech function that moves at the speed of the customer and helps drive innovation for customers, partners, and employees. They are starting to create a true business technology function. Here’s what leading CIOs are doing to drive this change and move away from bimodal IT:

  • They are creating a vision of the new empowered customer future and selling this to their team, the board, and the rest of the business to get buy-in for the changes they are making across their team.
  • They are transforming the culture, skills, technology, and metrics of the technology team. Start with the vision and inspire the team to change, or start with the metrics and drag them along with you — either way, these changes are essential.
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Alphabet's Earnings Emphasize A Skewed Value On Monopolies

Shar VanBoskirk

I was speaking with my colleague Fatemeh Khatibloo about the strong Q1 2017 earnings that Alphabet just announced this week (I mean Alphabet the parent company of Google here, not the soup or anything to do with Letter People).  Alphabet revenues are up 29%, due largely to growth in mobile search and video ad sales. And she made a profound observation: that today the success mindset isn't about thriving in a market with a set of worthy competitors.  It is about domination so extreme that you and you alone dictate market trends and there simply is no platform for innovative upstarts.

James Wang of ARK Funding Administration agrees.  He says, Alphabet's Q1 earnings underscore "a macro theme we are seeing in the internet space, which is that the bigger players are getting bigger and the smaller players are treading water or shrinking."

I don't like this.  I don't like this one bit because I'm always a fan of the underdog.  But also because it seems way too risky to tie so much market health to a small number of firms.  And because it creates a socialogical mis-perception of how much is enough.  I'll let you economists out there weigh in here; I'm interested.

And I will simply say that I don't expect Alphabet's advertising growth to continue in a similar habit because:

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Forrester Methodology To Select Business Intelligence Implementation Service Providers

Boris Evelson

Business Intelligence (BI) pros continue to look for outside professional services. Forty-nine percent of decision makers say their firms are already engaging and/or expanding their engagements with outside data and analytic service providers, and another 22% plan to do so in the next 12 months. There are two main reasons for this sustained trend:

  • The breadth and depth of BI deployments cannot be internally replicated at scale. Delivering widely adopted and effective BI solutions is not easy. It requires rigor in methodology, discipline in execution, the right resources, and the application of numerous best practices. No internal enterprise tech organization can claim this wealth of expertise and experience; this only comes after delivering thousands of successful and unsuccessful BI projects — which we believe is solely the realm of management consultants and systems integrators. These partners have collectively accumulated such experience over many years and thousands of clients and projects.
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Is Email Marketing As Good As It Is Ever Going To Get?

Shar VanBoskirk

Many of you may know that at the beginning of March my colleague Rebecca McAdams who had been leading Forrester's email marketing research for the previous 18 months moved into an Advisor position with Forrester's customer experience leadership board.  With this change, I'm proud to reclaim email marketing as my very own.  Some of you may be thinking, "This feels a little back to the future..."  You are right!  I've been studying email since 1999 (yikes!).  And am looking forward to continuing our great research agenda on the workhorse of the digital marketer's toolkit. 

Rebecca launched some "future of email" research before her move.  As I go through the notes from the smart conversations she had trying to find the answer to: What is next for email marketing?  This question pops into my mind instead: Has email marketing already come as far as it can?  What I learned from the research is that:

Marketers already know what best practices will make email marketing better, they just don't apply them.

Because doing so:

  • Costs more.  Making email better, through analytics, improved segmentation, dynamic content or offer optimization drives up email CPMs (from basically free to not quite free).
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Security Challenges Drive Growth For IAM Solutions

Jennifer Adams

The world is changing fast, and bring-your-own-device (BYOD) and telecommuting are increasingly becoming the norm, not the exception. This increasingly mobile and flexible workforce creates new security challenges as more and different types of devices are being used in multiple locations. Security and risk professionals must ensure that only the right people get access to the right information at the right time and for the right reasons. Identity and access management (IAM) tools help evaluate who has authorized access to which resources and why.

In our recently published Forrester Data: World Identity And Access Management Software Forecast, 2016 To 2021 (Global), Forrester predicts that the IAM software market will grow to $13.3 billion by 2021, from $7.7 billion in 2016, implying an 11.5% CAGR.

While IAM has traditionally focused on access for employees and business partners, we actually expect customer identity access management (CIAM) to be one of the fastest growing IAM niches. CIAM requires a delicate balance between security measures that are strong enough but don’t detract from the customer experience. As a bonus, data collected by CIAM tools can help with customer retention and drive profitability. As companies learn to leverage this data, we expect 19.5% annual CIAM software growth over the next five years.

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