Several weeks ago, Saugatuck published our topline, summary data report on current and planned adoption of, use of, and planning for Cloud and Digital Business. In that report, we stated that a combination of factors suggested the following:
- Digital Business tends to be very limited in scope right now, and
- Understanding of “Digital Business” has some way to go.
We’ve just published a Strategic Perspective research note for our CRS subscription research clients that looks at more data from our 2014 Cloud/Digital Business survey to help analyze and understand the situation. Our conclusion: while there is significant room for concept development, definition, and understanding, the strategic realities of Digital Business do in fact seem well understood by most user enterprises – but strategic readiness is lacking. One clue is in the data regarding strategic obstacles to Digital Business success, as summarized in Figure 1.
Figure 1: Strategic Digital Business Obstacles, 2014 Continue reading
What is Happening?
Data from Saugatuck’s latest global survey on Cloud and Digital Business adoption and use indicates tremendous activity worldwide, with the most activity, and the most reported success, among firms in the Asia-Pacific (AsiaPac) region. This suggests many things to our analysts, chiefly that (1) Digital Business certainly is “real” on a global basis, and (2) firms in the AsiaPac region continue to outpace North American and European firms in terms of Cloud and Digital Business planning, adoption, use, and reported success. It appears that firms in the AsiaPac region may have a leg up on the rest of the world in future Digital Business success.
What the data shows us right now is that, on average, about one quarter of North American and European firms report having 50 percent or more of their business IT portfolio in Cloud today. Meanwhile, nearly half of AsiaPac firms in our survey report having 50 percent or more of their business IT portfolio in Cloud. Figure 1 presents that data, along with Cloud portfolio expectations regionally through 2018.
Figure 1: Where is the Most IT in Cloud Through 2018?
Source: Saugatuck Technology Inc., 2014 global survey; n = 208
This data jibes with the long-standing, relatively aggressive approach to AsiaPac SaaS and Cloud adoption first reported by Saugatuck in 2010, and updated in June of 2013 828MKT, Cloud IT in AsiaPac: Pedal to the Metal and Passing the West, 20Dec2010; 1230MKT, Different Growth from Different Ground: Blossoming of the Asian Cloud, 21June2013). Continue reading
Many of our regular Lens360 and weekly Research Alert readers are aware of Saugatuck’s CRS subscription research service; excerpts from our premium research appear regularly in our Lens360 blog, and slices or summations of premium Saugatuck research reports also appear in both media. All of these have garnered terrific interest, including comments and questions that help to guide our ongoing research, and we thank you for that.
Research clients, CRS subscribers, blog readers, and other interested parties have suggested that regular updates and reviews of recently-published work would be helpful in determining how and where Saugatuck can best assist them, as well as providing a window into the breadth and depth of our research library and activity.
Beginning here, we will provide a regular summation of some of the top Saugatuck research pieces published in the past three months or so, and offer a peek ahead at what’s in store for the next few months as well.
- Active Saugatuck premium CRS clients can access any of the listed research articles by signing in to the website, or by clicking on any of the links below and signing in.
- While only a small portion of our premium research is for sale a la carte, non-CRS clients can purchase select individual selections by clicking on the links and following instructions for purchase. For a full listing of select premium research available for sale a la carte, click here.
- Anyone with any questions about our CRS offering or specific research topics, programs, or pieces can call us at +1.203.454.3900, or by emailing Chris MacGregor at Chris.MacGregor@saugatucktechnology.com.
THIS QUARTER’S SELECT PREMIUM RESEARCH INCLUDES THE FOLLOWING:
5 Questions Every CISO Should Ask About Digital Business
Lead Author: Jim Hurley, Published: 30July2014, Doc Number: 1412STR
CRS Clients: Click here to access. Non-CRS Clients: Click here to purchase.
The transformative power of Digital Business may be as simple as using web applications to automate online purchases, or as disruptive as information Continue reading
The term “Digital Marketing” was first used in the 1990s to describe marketing practices on the Internet. It has since gone out of favor in the US, supplanted by “Internet Marketing” and “Social Media”. However, as we move into the era of Digital Business, this term is developing in importance. Digital Marketing is actually leading the charge to Digital Business. It is the generally the most evolved process in using digital components such as mobility, Cloud, and Analytics; but it is also reliant upon digital content, it’s delivery, and its management. On top of this, of course, Digital Marketing is viewed as essential, can be implemented in innumerable ways, and can have a demonstrable and immediate impact upon the business.
In the latest Saugatuck global survey, we looked at key aspects of Digital Business, and found that companies viewed Digital Marketing as extremely important but not nearly as likely to be implemented. This Achievement Gap demonstrates how rapidly this area has developed. The ability to use a growing variety of digital marketing strategies and integrate them with existing technology and practices has not caught up with the perceived need. There are talent issues, both in technology and in marketing; there are technology and infrastructure issues; and there are many pieces to the Digital Marketing puzzle which have not yet been actualized. Continue reading
By now everybody knows that Amazon has launched Local Register, a direct competitor to Square and PayPal Here at much lower rates. Instead of flooding the market with free readers that nobody uses, Amazon asks business users to pay $10 up front, which eventually will be refunded through use, as Amazon will offset the first $10 of processing fees. How much lower are the processing fees? Dramatically (See Figure 1 – How Does Amazon Compare?).
The rate for Local Register is a full percentage point below Square, although it is necessary to sign up by October 31, 2014 to lock in the special rate through December 31, 2015. The rate will go up to 2.5% beginning January 1, 2016. Rates apply to all major credit and debit cards. And there are no additional fees for chargebacks or refunds.
Amazon claims that Local Register is compatible with Apple devices running iOS 7.0 and above and has been fully tested on the Galaxy S3, S4, S5, and Fire tablets. It may work on other Android devices, but it has not been fully tested. Apparently, Local Register does not work with the Amazon Fire smartphone.
Mobile commerce is a fast growing segment in the Cloud. The synergy of mobility and Cloud is a natural source of innovation and the mobile commerce segment has Continue reading
In a recently published Strategic Perspective, Saugatuck offers pragmatic guidance on evaluation, planning and execution of a Cloud adoption. Specific guidance, termed The Right Stuff, is grouped into four sections. Each section contains detailed elements that should be used as a foundation for a thorough assessment and plan to avoid potentially costly missteps. The four sections of The Right Stuff are:
- The Right Questions. In this group we offer a basic list of questions that IT management should ask for every project that may include adoption of a Cloud offering.
- The Right Workload. Here we offer some elements to consider when evaluating a specific workload for potential operation in a Cloud offering
- The Right Infrastructure. Here we offer some elements to consider when evaluating infrastructure alternatives for any specific workload.
- The Right Path. Every company, every workload, every project is unique and requires a unique plan for evaluation and implementation
The rapid global expansion and integration of Cloud for business advantage has helped to catalyze a global shift toward Digital Business – a core theme for this year’s Cloud Business Summit, and the focus of the 2014 Beacon Awards for business excellence.
“Digital Business” is defined by Saugatuck as follows:
A digital business integrates digital technologies, assets, and capabilities with business development, management, and operations, to create and adapt offerings and experiences that generate revenue and competitive advantage.
- Saugatuck Technology Inc., 2014
2013 Beacon Award Winners – Click Here for Details
To make this happen, significant and ongoing IT and business investment and innovation need to occur, along with significant changes in culture, organization, operations and management outside of IT, including procurement, training, security, ecosystems, and provider management. Simply adding digital technologies to existing operations does not create a digital business.
Beginning in 2014, the Beacon Awards will recognize user enterprises that have not only made measurable progress toward becoming Digital Businesses, but which also have helped to shape the future of their company, their markets, and Continue reading
What is Happening?
Cloud, Mobile, Social, and Analytics are increasingly mainstream among IT providers and users. Over the last 4 to 5 years, IT organizations have been changing dramatically from being focused on traditional data processing (e.g., sequential updates, availability, and maintenance) into organizations expected to solve business problems, embrace new technology rapidly, and ensure that the investment in IT capabilities yields a competitive advantage.
Businesses are not content to simply use today’s IT to build traditional systems faster and cheaper, nor are they content to let each technology exist in its own silo. CIOs now recognize that the true value of IT doesn’t lie solely in traditional approaches. Rather, IT is the fuel for a digital arms race as companies work to modernize existing offerings to include digital components, and to deliver new digital-first offerings to explore and enter new markets.
Many companies are pushing forward in the digital arms race and striving to achieve that “nirvana” we have described as Digital Business (1373MKT, What is Digital Business Anyway?, 30May2014). While few companies can realistically call themselves Digital Businesses, there are also few companies today that aren’t running pilot programs, betas, or delivering initial products with strong digital components. Continue reading
To effectively manage customers across the stages of the lifecycle in Digital Business, a number of tools, or “knobs and dials,” can be used, including, but not limited to:
- Social Media
- SEM / SEO
- Mobile Apps
- Web Storefronts
For the sake of illustration, we will discuss these particular “knobs and dials” and how they can be used to create, manage and retain customers across the stages of the lifecycle. Inbound Marketing, in particular, draws the customer to the digital brand by the use of content and the related tools of social media, email, and search engine marketing. This is in stark contrast to the push-oriented marketing that originated in earlier eras and features direct mail, radio and TV ads, sales flyers and infomercials. In Digital Business, Customer Experience (CX) begins with qualified prospects who have opted-in to receive relevant content in exchange for their credentials and demographic information. Inbound Marketing, also called “permission marketing,” builds trust between the marketer and prospective customers by ensuring the permission exists to engage further.
Leading platforms for overall Inbound Marketing include Hubspot, Marketo, Eloqua (Oracle), Silverpop (IBM), and ExactTarget (Salesforce). Continue reading
I am pleased to announce some of the details surrounding our fourth annual Cloud Business Summit, which will be held November 12, 2014 at The Yale Club in New York City.
Our conference theme this year is “Innovation, Opportunity, Risk and Reward,” with the event focusing on the journey that large enterprise CIOs, CTOs, and senior marketing and finance executives are on as they optimize their Cloud investments, and begin to remake their companies as Digital Businesses. For a short overview of the event, go to: http://cloudbusinesssummit.com/about-the-event.html.
We’ve moved the Summit to a new venue this year. The Yale Club of New York has a spectacular Grand Ballroom that we will be using, along with its elegant Rooftop Dining Room. Both will provide an optimal setting for the peer-level learning and interaction that are hallmarks of our events, fostering an intimate, C-level setting.
Our program / agenda is coming together nicely, with our keynotes and panels offering unique first-person experiences, insights, and best practices Continue reading