Archives for category: cloud computing

The next major battlefront in technology will take place in your living room… and your dining room, kitchen, bathroom, garage…. The major players in both hardware and software – Apple, Microsoft, Google, Samsung, Amazon – are all taking position in the field, getting ready to square off. All of these big guns have already made their way into the home through gaming and entertainment, whether on console platforms or via the mobile device that never leaves your side. This has created a beachhead to give access to the whole home ecosystem, enabling them to drive deeper into the home and providing them with deeper customer insight they can deploy across their entire relationship with the consumer across every kind of device.

The major players in both hardware and software are aiming to gain access to the whole home ecosystem and deepen their relationship with the consumer across every kind of device.Let’s look at some of the recent moves the combatants have made that are changing the game of customer experience:

  • Apple announced HomeKit, a set of tools that will let users easily control home devices (heating and cooling appliances, refrigerators, lights, webcams, security systems and so on) from their iPhone or iPad.
  • Google acquired Nest’s sleek smart thermostat system, and is moving rapidly toward an integrated strategy that will extend its presence across the home ecosystem through Google Wear, Glass and Watch.
  • Samsung just announced the acquisition of home automation start-up SmartThings.
  • Amazon is buying Twitch, an online video platform and community for gamers where people discuss games or watch others as they play.

What is all this activity really about? Context. Individually, products alone provide singular features and offer value within their respective functions, whether that is a thermostat, security, time, or gaming. But combined, the way the parts work together create sources of customer value far beyond their individual use. In a way, these tech companies are trying to avoid themistakes made by the U.S. railroad industry in the mid-20th century. Railroad companies focused on their product (trains) rather than on the context that customers had for them (transportation). As a result, railroads were basically kicked to the curb as people flocked to the cars and highways that still form the main transportation arteries throughout the U.S.

To succeed, companies need the ability to create customer value in a multi-contextual world. Simply put, context is king. The ability to create more and more channels to enter the ecosystem, whether via mobile apps, home sensors, and games, creates a competitive advantage and, as a whole, a frictionless customer experience. Crucially, these services need to be designed with a holistic view, as the value of the ecosystem is both a competitive necessity and an emerging customer expectation of seamless integration. Moreover, you will see that many of these services come at a very low price point as free mobile applications allow companies to create a hub of customer value and, just as important, opportunities for ecosystem end to end value for businesses.

In this battle, there is another front opening as well in terms of whether this will evolve via open standards, such as Bluetooth Low Energy (BLE) – with many services supporting multiple platforms – or be tightly woven to the provider’s ecosystem. Samsung has clearly opted for theopen integration model, while other players are experimenting with both approaches.

How will this affect enterprise customer experience strategies? An ecosystem of various capabilities, seamlessly linked, has the potential to break down both product focused siloes, increase customer value and create greater top line revenues than the disparate parts. Perhaps most important, it could create a competitive barrier, or at least an innovation stop-gap, to keep up with the continuously changing customer technology landscape.

The lines in the sand are taking shape!  Where do you want to be?  Most important, which side is vital for your success?

(Note: this post first appeared on TCS Enterprise Insights)

I attended SugarCon 2010 last week, with the helpful support of Focus. I won’t cover overall conference recaps as they are captured herehere, and here.  Overall, the attention and time investment SugarCRM gave to to the latest trends in Social CRM was great. I will save feedback on that piece as the Salesforce.com $142M Jigsaw acquisition today trumped the news.

Jigsaw CEO Jim Fowler presented last Wednesday on “DaaS is the new SaaS“. The indirect, horizontally integrated sales model has been the norm in the technology industry, but analogs can be applied to many other sectors, such as the dealership model in insurance or automobiles, franchise in retail, or social service delivery in the public sector.

In all these sectors, a key historical issue has been on how best to integrate, segment, and collaborate sales and customer data with business partners and regain control of the end to end customer experience. Its a very complex business issue on its own and has not had an adequate technical approach until recently. The emergence of B2B Platforms, with an assumption of some level of core data model standardization via a Cloud option, has potential to address many of the prior issues. Extremely complex and costly middleware rule customizations, or worse, point to point solutions, were the options pursued earlier with the end result of, usually, zero adoption.

For an example of how that went in the auto sector a decade ago, feel free to lookup the story of Commerce One.

As a second pillar, the exponential growth in Social Networking can address much of the unstructured data at the customer conversation end point, empowering not just Marketing with new tools, but Service and Sales as well. The real pressure is on integrating across all front office functions, not just Marketing. There is a danger in viewing the trend in Social CRM as a Marketing only led, or “Twitter” led initiative, leaving the cross-unit strategy and planning phase behind. This phase is now more important than ever, with any missteps being highly visible (look up the Walmart “fake blogger” story). If left to a single front office function or group, the results will likely be zero ROI or worse, loss of customer trust. There are signs this is already happening.

That perspective was resonated loudly in the conversations last week at SugarCon. More on that later.

It was interesting that the SugarCRM conference was followed with Chirp, the Twitter developer conference in SF. Its very clear that Salesforce is investing heavily in both trends, with Chatter covering the social side, and Jigsaw as one piece of the B2B platform play. But this story is just starting, and is not about a single CRM vendor.

Tough times for Commerce One

Businesses are more likely to invest in private Clouds over the next couple of years than take a leap of faith into public alternatives, but over time a hybrid model will emerge.

http://www.businesscloud9.com/topic/management/private-clouds-set-dominate-until-2012-says-gartner

Larry has a good, valid, and “history book” rant calling it out in terms of the Gartner Hype Cycle.  But its only a marketing exercise? Fun and games between Marc and Larry.  Anyone remember the client server net appliance debate…?

http://www.youtube.com/watch?v=0FacYAI6DY0&feature=player_embedded#t=27


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