I have talked a lot about Big Data on this blog. It is a technology that is now becoming normal and accepted in the enterprise, largely because of two factors:
1. The Internet of Things (IoT) means that every electronic device is becoming connected. Even light bulbs can now be assigned an IP address so you can connect them to a home control system. All these connected items generate vast amounts of data…
2. Consumer behaviour and their relationship to brands has been entirely reversed in the past five years, from brands offering a way to get in touch to consumers defining exactly how they want to review or criticise products. Now brands need to seek out comment and to engage wherever the customers are located.
There are many more factors, but I believe that these two broad changes are responsible for creating enormous amounts of data – amounts that seemed unfeasible a decade ago.
The industry analysts support this view. Ovum recently announced their own research, which indicates that from now until 2019 they predict that the Big Data market will grow 50% each year. Compounded annually this means that by 2019, the market for Big Data software and expertise will be six times bigger than it is now.
Six times. That’s a lot of market growth. The Ovum Big Data Practice Leader, and co-author of the report, Tom Pringle, said: “The experimental era of big data is coming to an end, organizations are formalizing their use of big data technology to realize the business value they expect to find.”
The important factor to note here is that Ovum is suggesting that the time for experimenting with Big Data is over. Many companies have tried it, toyed with open source software and systems, and experimented with the insights they can gain from Big Data analysis, but it is now proven that many companies need these insights.
The time has come to call in the experts.
Think about the consumer technology that you regularly use today. You probably have a smart phone, maybe a Kindle or other e-reader, maybe an Apple Watch or similar device that can access information from your phone. Maybe your car can hook up to your phone to offer in-car information. Maybe you have an Amazon Echo at home so you can access the Internet just by speaking?
All these consumer devices are available today and are accepted as normal. Most consumers expect to have a device that gives them 24/7 access to all the services and information that the Internet can offer.
So why isn’t enterprise technology like this? Many companies still issue phones that are not even smart and laptops that are too heavy to really be portable. The concepts of cloud computing and app store flexibility remain conceptual in many organisations. Why?
The obvious answer is that consumers have far less to invest than large companies. When purchasing technology, a CIO needs to set the agenda for several years. If things change during that time it can be difficult to shift direction or to keep up with the change. Individuals don’t face this problem.
This has led to the popularity of Bring-Your-Own-Device (BYOD) policies in many companies, where employees are offering cash to use their own equipment instead of what the company can supply.
But a small change in the strategic mindset can also have a major benefit to the enterprise. Commissioning new software solutions as apps, rather than desktop tools can encourage the workforce to be mobile. This can even encourage companies to create entirely new solutions for customers.
An app developed by IBA for use by a bank in South Africa allows bank employees to sign up new customers on the move. They can photograph the customer using their phone and capture details which are then shared with the central system of the bank – no forms, no waiting for an appointment. The new customers, the mobile bank employees, and the bank executives all benefit from the app approach.
It used to be that enterprise technology was years ahead of what people had at home, but now the reverse is true. It’s time for more company executives to take inspiration from the tools they use everyday – how can we use mobile devices and other common personal technology to create better business solutions for our customers?
In my last blog I mentioned that Big Data has progressed far beyond just being a business buzzword. There are entire industries being shaken to their core because a leading player finds a way to analyse their customers better than their rivals. Far from being a management trend, this is a strategy that will fundamentally change many industries.
But have you ever stopped to appreciate just how much data we are creating today?
Some excellent analysis in Business Insider recently explored this question. The problem is that people and companies are just creating so much data – it is increasing at an exponential rate. At the present rate we are doubling the amount of digital data that exists every two years.
But even though we are creating and storing these enormous amounts of data, only 0.5% of it is being analysed. There is so much data out there that companies, governments, and individuals feel swamped, unable to gain insights from it.
The Business Insider article features a comment that cuts to the heart of the Big Data issue: “You have to start with a question and not with the data,” says Andreas Weigend, former Chief Scientist of Amazon, now director of the Social Data Lab and lecturer at UC Berkeley.
Businesses need to start thinking about the insights they could get from their customers, to ask more ‘what-if’ questions. There are solutions out there in the data, but it is impossible to analyse every byte of data.
A typical analogy for the average person might be the difference between email and Twitter. You check every email, even if it is only long enough to decide that it should be deleted. However, you only check Twitter messages that are arriving as you are looking at the news stream, or you use intelligent filters and analysis to ensure that interesting messages are made visible.
Businesses need to start thinking of their Big Data strategy in the same way. How can insights be drawn out from the data they already have?
Big Data is still just a buzzword for many people. Magazines and newspapers that do not cater strictly to a business audience continually need to explain what they mean when talking about the subject and the strong association with technology means that even some business leaders are still unaware of the true benefits.
But as with all technology projects and ideas, if they can be associated with actions that can improve a business, make it more efficient, deliver services faster, or create new products before competitors, then the leaders can see the advantage.
Forbes magazine recently documents a few examples that demonstrate some of the advantages. Carnival Cruises needs to plan the best way to serve passengers in much the same way as an airline does. However a cruise is a much longer journey than a flight and across all their ships and passengers, Carnival has 80 million cruise days per year. If they could just earn $1 per day extra from each passenger then that’s an immediate $80m boost to revenue.
That’s an example of how to analyse customer behaviour so products and services can be targeted more effectively. Retailers still do this with loyalty cards, although the idea of a loyalty card has been falling from fashion in recent years – customers are tired of giving away their personal data in return for very small benefits.
But data can also help to save money and improve service too. The Australian telco Telstra uses Big Data analysis on their entire network with predictive analysis so potential faults on lines, and in specific areas, can be identified before they happen. Outage time is reduced, engineers can be moved into position faster, and not only does the company save on maintenance, but the customer is happier too.
Every big business uses data today. Every business has the opportunity to analyse this data in a more effective way. There is always information available if you know how to dig deep into the data you have.
by Irina for IBA Group
Posted on May 26, 2015
The analyst firm Gartner recently published some fascinating data trends in Forbes magazine. They summarised how important Big Data is becoming for business intelligence in three clear trends:
1. By 2020, information will be used to reinvent, digitalize or eliminate 80% of business processes and products from a decade earlier.
2. By 2017, more than 30% of enterprise access to broadly based big data will be via intermediary data broker services, serving context to business decisions.
3. By 2017, more than 20% of customer-facing analytic deployments will provide product tracking information leveraging the IoT.
These trends are exciting because what they point to is how communication is changing between individuals and how this is now affecting the way that companies do business.
Mobile, social, cloud, and shared information are all forces that have really only grown in importance over the past 5-6 years. Many company leaders have not realised how all these factors will change the way that companies do business and how decisions from new products to choosing a partner company will all be data-led.
The Gartner predictions are point at corporate behaviours just 18 months in the future. Have you explored how your own organisation is using data today and if not then can you be sure that your competitors will not be making better business decisions a year from now?
I was recently asked about the classic price vs service argument by a consultant who advises on IT outsourcing. I replied that I am surprised there is still a debate over this. You can compare IT supplier based on the quality of what they do and then compare equally competent suppliers on price, but price is not a primary variable that should be used to compare companies.
After all, if the service delivered does not work then how much have you saved? The price debate reminds me of where IT outsourcing was a decade ago – it was surprising to be asked about this in 2015 when most organisations have a far more mature approach to finding expert partners.
I looked at CIO magazine to see what they considered the key trends in IT outsourcing would be this year. They published a good summary at the beginning of the year and never once mentioned that price would be an important comparison point.
Several of the trends they identified are very important though and I don’t feel that they are being given enough focus in the business and technology media:
1. A focus on outcomes: outcome based pricing has been around for years, but is often focused on BPO outsourcing where specific business processes can be priced. A focus on the outcome rather than process of delivering IT will be how many projects are charged in future.
2. The business ordering direct. The CIO used to manage all information systems, but now the business units are doing far more ordering direct because many solutions can be delivered using apps or the cloud, therefore not impacting on the infrastructure managed by the CIO. This means that suppliers need to develop new relationships and change their sales strategy.
3. Analytics taking over. In areas such as CRM and customer service technology systems data is all that matters now. This approach to data-led decision-making is affecting many business functions including the more creative ones such as sales and marketing.
The IT outsourcing trends are changing and developing as the IT services space develops, but sometimes it seems that the advisors cannot escape some of the old debates.
by Irina for IBA Group
Posted on May 4, 2015
Social networks have evolved rapidly over the past few years. In the last decade tools like Myspace were primarily used for sharing pictures and messages with friends – the social aspect of the network was the primary reason to use it. Facebook took over and sharing cat videos remained an extremely popular pastime.
But now companies are using these same networks to interact with customers. Brands got used to watching out for content on blogs and then the review sites, as well as tweets and Facebook. The past half a decade or so has seen an enormous change in the way that corporate and customer relationships work and it looks like Facebook may be about to define the next wave of change.
The Facebook Messenger app has been around for a few years now. It’s a useful tool for keeping in touch with friends and in many ways removes the need to know the phone number of your friends because messages are all relayed through the Facebook system – even though the app functions entirely separately from the main Facebook app.
A new development called “Business on Messenger” is aimed at making the app a hub for customers and companies. Companies will be able to take orders on Messenger, send out order confirmations, send shipping status updates, track deliveries and customers will be able to directly send questions to sellers.
All this functionality will be offered to companies to use in a flexible way that works best for their business. For the customer these developments are welcome. Facebook is encouraging developers to build new apps around the messenger API so it looks like companies will be able to create a complete customer messaging system using the building blocks Facebook makes available.
In some markets the WhatsApp messenger has already become an important tool for brands to talk with customers – and Facebook already owns that app. I fully expect the two messenger services to be blended at some point, with the addition of all these added features that will make this a real hub for customers interacting with companies.
Will companies buy into the service from Facebook? I expect that they will because to build this infrastructure internally is very expensive. The end result is that companies will be able to get a very low cost customer management system, but it will mean that more customers will be tied into using Facebook – whether they want to or not.
by Irina for IBA Group
Posted on April 22, 2015
On April 16, the International Association of Outsourcing Professionals (www.iaop.org) released the second blog article devoted to The Global Outsourcing 100® list. This article recognizes companies for innovation programs.
The Programs for Innovation category of the IAOP’s Global Outsourcing 100 focuses not just on specific examples but on the programs that service providers and advisors have in place to identify and implement innovative solutions.
Today’s customers demand innovation from their providers and the outsourcing industry is looking for new ways to meet this growing demand. IAOP evaluated programs for innovation in The Global Outsourcing 100 for the first time.
IBA Group earned the highest 8 points in this category. The company received a full star recognition and its achievements in innovation were marked as the ‘Highest Rated’. This accomplishment looks especially impressive because the average score for innovation of the participating companies was 3.52.
IBA Group showed in its application that innovation is not a one-shot job for the company. IBA Group set up a Committee for Innovations headed by the IBA Group Chairman and created a company-wide Registry of Innovations. A special procedure on how to apply and approve or reject the ideas was implemented in the IBA intranet and a special venture fund was formed to finance the innovation procedure.
IBA Group implemented many successful initiatives through this procedure, including a mobile version of the IBA’s enterprise content management system and an Automated Fare Collection (AFC) system that earned a European IT & Software Excellence award for IBA Group.
The International Association of Outsourcing Professionals launched a series of blogs devoted to The Global Outsourcing 100® list that recognizes the world’s best outsourcing service providers and advisors. The blog articles are focused on the four judging categories of The Global Outsourcing 100 and on what it takes for companies not only to make the list, but to achieve distinguishing ‘stars’.
“Hip hip hooray…it’s not the New Year but it sure does feel like it around here with the buzz and excitement of IAOP’s 10th edition of The Global Outsourcing 100®!” – This is how IAOP opens its first series of blogs on The Global Outsourcing 100.
Each organization completed a rigorous, opt-in application to compete for inclusion in The Global Outsourcing 100. The achievements were assessed based on the following four distinct areas: Delivery; Programs for Innovation; Corporate Social Responsibility (CSR); and Size & Growth. Those companies that have distinguished themselves receive half or full stars in one or more specific judging category.
IBA Group has been enrolled in the rating, which is actually organized as a contest since 2006. The list has been evolving and the rules have been changing, but IBA and other outsourcing providers keep applying to be among the best 100. It is not only a good chance to receive exposure. It is also an opportunity to see how the company is doing against others and to set targets for improvement.
The first blog article by IAOP is devoted to the Delivery Excellence judging category. The category includes company recognitions, customer references, company certifications, and the number of Certified Outsourcing Professionals on staff.
Delivery Excellence is a strong area for IBA Group. This year, the company received the score 7.25 for delivery excellence of the highest 8 points. It is a distinguishing accomplishment, given that the average score of the participating companies in this category was 5.86. IAOP awarded IBA Group a half star for Delivery Excellence.
Technology is continuously evolving at such a rapid rate – it is impossible to predict with any certainty how it will impact on our lives in coming years. When people make predictions about how technology will evolve, try this exercise. Look back ten years and think of all the technologies you take for granted today: social networks, smart phones, mobile Internet, tablet computing. None of them existed even a decade ago – or were so nascent an elite few were the only users.
Think back a decade more and you will find yourself at the birth of the web. Adverts for major consumer products did not even feature URLs until the late 1990s. Now you see how difficult it is to predict what technologies will be common by 2015.
There will always be winners and losers in the search for new ways to use technology to achieve business success. The downfall of companies such as Nokia, Kodak, and Blackberry illustrate the consequences of not understanding how society is changing and using new technologies.
But one development that is likely to evolve further is technology outsourcing. As the world becomes more complex, it is even more unlikely that companies will retain the right kind of expertise internally. IT services will be outsourced more often because only the IT companies understand the complex technological solutions – rather than some of the drivers we saw a decade ago, such as labour arbitrage.
The globalization of IT is itself becoming more complex anyway. There are still IT service companies all over the world offering their services, but now they don’t always need to directly contract with a customer to provide a specific service. The cloud-based model allows service providers to offer a specific service – storage or computing power – that can be turned on and off as desired. The app store model many people use on their phone can also be used in the enterprise to create an environment where end users on the business front-end (not the IT department) can choose and install technology solutions themselves.
Change is taking place fast in the IT services market and nobody can predict how it will look in ten years, but one thing is for certain, IT experts need to offer a variety of delivery methods because enterprise IT is borrowing many of the ideas that consumers are already familiar with.