Nexus of Forces Social, Mobile Cloud and Information - Is the Basis of the Technology Platform of the Future

A Nexus of converging forces -- social, mobile, cloud and information -- is building upon and transforming user behavior while creating new business opportunities, according to Gartner, Inc.

Although these forces are innovative and disruptive on their own, together they are revolutionizing business and society, disrupting old business models and creating new leaders. As such, the Nexus of Forces is the basis of the technology platform of the future.

Not that long ago, people's most sophisticated computing experience was at work, and computing was limited at home. Now, in most cases, the opposite is true. The consumerization of IT is a result of the availability of excellent devices, interfaces and applications with minimal learning curves. As a result of using these well-designed devices, people have become more sophisticated users of technology, and the individual has been empowered. People expect access to similar functionality across all their roles and make fewer distinctions between work and non-work activities.

Social is one of the most compelling examples of how consumerization drives enterprise IT practices. It includes personal activities of sharing comments, links and recommendations with friends. Consumer vendors have been quick to see the influence of friends sharing recommendations on what to buy.

Social technologies both drive and depend on the other three Nexus forces:

• Social provides an important need for mobility: Accessing social networks is one of the primary uses of mobile devices and social interactions have much more value when they are possible wherever the user is located.
• Social depends on cloud for scale and access: Social networks benefit from scale, the kind of scale that is really only practical through cloud deployment.
• Social feeds and depends on deep analysis: Social interactions provide a rich source of information about connections, preferences and intentions. As social networks get larger, participants need better tools to be able to manage the growing number of interactions, which drives the need for deeper social analytics.

Mobile computing is forcing the biggest change to the way people live since the automobile. Mass adoption forces new infrastructure, it spawns new businesses, and it threatens the status quo.

However, mobile does not stand alone as an isolated phenomenon. People will interact with multiple screens working in concert. Sensor data will transparently enhance the experience, integrating the virtual and physical worlds contextually. The information gathered in this immersive world will have tremendous value and, ultimately, the lasting relationship will be between a user and a cloud-based ecosystem.

Cloud computing represents the glue for all the forces of the Nexus. It is the model for delivery of whatever computing resources are needed and for activities that grow out of such delivery. Without cloud computing, social interactions would have no place to happen at scale, mobile access would fail to be able to connect to a wide variety of data and functions, and information still would be stuck inside internal systems.

The model of cloud computing is what Gartner calls a "global-class" phenomenon because it focuses on outcomes connected across the globe rather than technologies and outcomes centered on an internal enterprise strategy. In a global-class computing world, everything shifts to the culture of the consumer and the externalized view of computing.

Information is not stored anywhere in particular. Rather, it is stored everywhere. For years, technologists have discussed the ubiquity of information without realizing how to take full advantage of it. That time is here now. Social, mobile and cloud make information accessible, shareable and consumable by anyone, anywhere, at any time. Knowing how to capture the power of the ubiquity of information and utilize the smaller subsets applicable to a company, a product and customers, at a specific point in time, will be critical to new opportunities and for avoiding risks.

More information on social media and CRM can be found at www.CRMindustry.com

Adoption of Online CRM Soars in One Year Overtaking Traditional In-house Systems for the First Time Ever

New research from Really Simple Systems reveals high confidence in online CRM, web CRM and small business CRM systems as over half of those surveyed see better value than in-house equivalents. With confidence in cloud solutions increasing substantially, of those surveyed, 56% are using an online CRM, web CRM and small business CRM system, compared to 45% this time last year. Furthermore, only 15% of respondents admitted to still having some reservations on the adoption of online CRM, web CRM and small business CRM; a vast improvement on the 23% in last year's survey.

From a sample of 685 respondents, the majority from small and medium-sized organizations with less than 50 employees, over half revealed that they believe online CRM, web CRM and small business CRM solutions offer better value than in-house equivalents (up on last year's 44% to 50.1%). Furthermore, confidence in online CRM, web CRM and small business CRM solutions overall has increased substantially, with 72% of respondents claiming to have more confidence generally that a year ago and 80% saying they thought online CRM, web CRM and small business CRM solutions required less IT support.

In terms of social marketing, 67% of those surveyed use social marketing, with LinkedIn the most popular tool (81%) and 34% believing that they saw a positive ROI from using social marketing. Worryingly however, 59% of businesses claim to be unable to measure any ROI from their social marketing efforts.

The survey also confirmed that 61% of businesses are using in-house ERP/Accounting solutions (down from 69% in 2011) with 53% of those questioned saying they would be confident in switching to a cloud solution - aside from online CRM, web CRM and small business CRM - when the time comes - a figure 5% up on last year's 48%.

More information on CRM can be found at www.CRMindustry.com.

IDC Study Reveals Emerging Social Media Trends Across Vertical Markets

IDC announced the availability of a new study, 2012 U.S. Social Media Trends by Vertical, that highlights the adoption of social media as an emerging technology across six major vertical markets including banking, government, healthcare, manufacturing, retail, and utilities. Part of IDC's annual vertical view survey, the unique study found that similar to Internet adoption in the 1990’s, B2C companies - especially retailers - are driving social media adoption while B2B companies lag behind. The report also found that social media is enabling organizations to increase productivity and improve knowledge sharing as they leverage social networks to share best practices and identify appropriate resources.
Additional key findings include:

-- Increasing awareness of product and services is the top social media investment driver

-- Respondents cited managing and tracking all posted content as the top challenge to social media

-- Social networking accounts for half of the social media budget

-- Marketing is the biggest user of social media and is driving the purchasing decision of these technologies

The study also found that when comparing social media investment to other emerging technology areas, retailers more than any other industry are making strong investments. Successful retailers are integrating their mobile, analytic and social media strategies into one cohesive business approach. Social media touch points such as Facebook, Twitter, and Groupon are enabling these organizations to analyze customer behavior and in turn deliver personalized offers direct to a consumer’s mobile device.

Across all verticals, the research found that moderating conversations about products and services was not a high priority. IDC notes that companies are not taking full advantage of the communications aspect of social media and are using it more as one way method of communication – gathering feedback or pushing brand messaging to a wide audience – rather than collaborative communication as the medium was intended.

More information on CRM and social media can be found at www.CRMindustry.com

Survey - Key Risks Not Being Continually Monitored; Social Media Plays Increasing Role

A new Deloitte and Forbes Insights survey reveals that fewer than 25 percent of executives report that their organizations continuously monitor risk. While the majority of respondents anticipated that the global economic environment will remain the greatest source of risk through 2015, more than one in four (27 percent), predicted that risks posed by social media would play an increasingly important role.

Forty-one percent of respondents said that they saw the global economic environment as the most important source of risk over the next three years, and nearly one-third put government spending and budget into that category. Regulatory changes were of concern to 30 percent of respondents and both social media and financial risk were seen as a concern by 27 percent. The top areas of concern regarding increased volatility over the next three years included financial risk (66 percent of respondents), followed by strategic risk (63 percent) and operational risk (58 percent).

More than 50 percent of executives believe that regulatory, technological and geopolitical risk will increase in volatility, and 55 percent of executives surveyed reported that their organizations will revamp their risk approach within the next 12 months; roughly nine in 10 (91 percent) reported that they plan to reorganize their approach to risk management in some form or other over the next three years.

When asked how they planned to accomplish this, the majority (52 percent) said that they would elevate the profile of risk management throughout their organizations. Other areas viewed as key included reorganizing risk management processes (39 percent), additional training for staff (37 percent), incorporating new technology (31 percent) and integrating risk into strategic planning (28 percent).

Despite advances in risk-related technologies as well as concern about unstable risks, the survey found that automation tools and tools used for continuously monitoring risk are underutilized. Most monitoring is done periodically, on a monthly, quarterly, biannual or annual basis.

Additional Survey Findings:

-- Risk viewed as C-suite issue. Risk management has become a C-suite issue. Twenty-six percent of those surveyed said that the main responsibility for overall risk management belongs to the chief executive officer, with 23 percent assigning this responsibility to the chief financial officer or treasurer. Interestingly, the chief risk officer or head of risk came in third place, with 19 percent.

-- Automated risk management systems and processes. Dashboard reporting for senior stakeholders, data analysis and self-assessment are most often a mix of manual and automated processes. Twenty-eight percent of respondents said that their companies were in the process of automating their risk reporting.

-- Budgeting for risk expected to remain stable. Respondents indicated that strategic risk and technology risk were the two areas where budgets will increase the most. Around 50 percent of respondents said they expect minimal change to risk management budgets across the board. Fewer than 15 percent of respondents across all risk areas said risk budgets would decrease over the next three years.

More information on CRM and social media can be found at www.CRMindustry.com

Survey Reveals Marketers Face Tech Dilemma in Reaching the Connected Consumer

IBM's new survey of the marketing industry finds that chief marketing officers (CMO) and chief information officers (CIO) must join forces in order to connect with today's consumer across new channels including mobile devices and social networks.  Fully 60 percent of marketers point to their lack of alignment with the company's IT department as the biggest obstacle to reaching today's consumers. 

One key new finding of the survey shows that with mobile marketing working well, marketers are now preparing to go beyond coupons and deliver mobile advertising that reaches customers on their smart phone and tablets. According to the study, 34 percent of respondents stated that in less than 12 months they intend to deliver mobile ads, the highest rate of new marketing tactic adoption in the five-year history of the study. Overall, 46 percent of respondents are currently using mobile web sites followed by 45 percent mobile applications, up from 40 percent and 44 percent respectively since last year.

While the mobile channel is thriving, marketers lack this same clear consensus on how to best utilize social media which will result in ongoing experimentation with these channels. For example, when looking toward the remainder of the year, 26 percent intend to launch applications on 3rd party social network sites, 24 percent plan to incorporate user-generated content into their social media efforts and 23 percent are looking to launch social media ads or share links in email and web offers.

IBM's "State of Marketing 2012" surveyed more than 350 marketing professionals across a wide range of industries and geographies. In the study, 51 percent of respondents who identified their companies as high-performing indicated they have good relationships between marketing and IT, 10 percent higher than other companies. This figure validates the importance of the marketing and IT alliance which gives top performers greater responsibilities for the products and services, price, place and promotion (the 4Ps), and communication across the purchasing cycle. As a result, marketers from these higher performing companies are nearly three times more likely to be pro-active leaders in driving their organization's customer experience across all channels.

Additional results from the survey include:

Marketing and IT Lack Integration:

While 48 percent of respondents believe that improved technology infrastructure or software will enable them to do more, nearly 60 percent indicated that lack of IT alignment and integration are significant barriers to the adoption of technology. This void further reinforces the notion that CMOs and CIOs must forge stronger, more aligned relationships that put the business in a position to succeed.

Marketing and IT Lack Unified Vision:

While 71 percent believe integration across owned, earned and paid channels is important, only 29 percent are effectively integrating these different channels. When asked why, 59 percent said that existing systems are too disparate to integrate these channels. This is most evident in areas such as mobile and social where only 21 percent and 22 percent of respondents run these tactics as part of integrated campaigns with the remainder conducting them in silos, discretely and on an ad hoc basis, a practice which inhibits their ability to deliver effective cross-channel campaigns.

Marketers State Social and Mobile are Biggest Challenges Moving Forward

While new social media and mobile devices are vital, 41 percent stated that keeping pace with the growth of these channels and device choices will be their biggest challenge over the next three to five years. This finding follows IBM's 2011 CMO study where 65 percent of CMOs stated that they are under prepared for the growth of social and online channels such as Facebook and Twitter and new device choices including smart phones and tablets.

Marketers Ignore Social Media Insights:

While marketers continue to experiment with social media channels, 51 percent are not using this data to inform decisions about marketing offers and messages. This may represent a missed opportunity for marketers looking to best meet the needs of today's customer.

Marketers Fail to Turn Data into Action

When asked how they are using online visitor data, 65 percent of respondents are doing the basics, reporting and analyzing their data. Despite that number, only one third are using this data to target one-to-one offers or messages in digital channels and less than 20 percent are using this online data to make one-to-one offers in traditional channels.

More information on Customer Relationship Management can be found at www.CRMindustry.com

Enterprise Social Software Market Shows Significant Gains and Is Quickly Becoming the Main Way to Connect Employees, Data, and Systems

New International Data Corporation (IDC) research shows that enterprise social software adoption has accelerated significantly, finding use cases across almost all industry verticals as it continues to become a critical decision support and worker productivity tool. Many companies are now looking to build and implement an overall social business strategy and the most appropriate enterprise grade social tools will be a critical component of that strategy.

According to IDC, companies are turning to social software in increasing numbers as they look for ways to increase collaboration, improve both business and individual worker productivity, and efficiently manage a growing deluge of content and information. Compartmentalized and specific collaboration is still required by many organizations and traditional collaborative applications providing closed loop and B2B communications will retain their existence in organizations alongside more open social solutions.

IDC's research found that almost all vendors in the market had double-digit growth for 2010–2011, with the top 2 vendors, IBM and Jive, delivering greater than 70% year-over-year growth – almost double the market average. The fastest-growing vendor in the top 20 was Yammer, with a year-over-year growth rate of 132.3%.

More information on CRM and Enterprise Social Software can be found at www.CRMindustry.com

Study: Collaboration and Transparency Key to Providing the Edge Midmarket CEOs Need to Drive Innovation

A new IBM global study of midmarket Chief Executive Officers (CEOs) indicates that nearly twice as many midmarket CEOs see creating a more collaborative work environment with a higher level of openness and transparency as a top priority compared to the findings from the IBM CEO study conducted in 2010.  

A total of 45 percent of midmarket CEOs see the need to create a more open business environment, a close to 50 percent jump from two years ago.

Additionally, nearly 70 percent of midmarket CEOs aim to partner extensively with other companies as external relationships will play a more critical role to CEOs’ overall business strategies; 64 percent of midmarket CEOs are focused on creating a more collaborative environment to engage employees with a new way of making faster and better decisions in an increasingly changing business environment; and 71 percent are focused on improving their understanding of individual customer needs.

CEOs also discussed the whirlwind of “social” change they’re witnessing. Facebook, Renren, Twitter, Weibo, Foursquare and other social media upstarts have changed the way products and services are marketed to consumers. Despite the surge in social media adoption around the world, only 15 percent of midmarket CEOs are using social media platforms to connect with the individual consumer today. Three to five years from now, that number is poised to spike to 50 percent. 

Market dynamics and technological advances continue to force more organizational change, significantly impacting how midmarket businesses engage with customers and employees and drive innovation. Midmarket CEOs are now looking to technology not only to make them more efficient but also to enable increased collaboration and create relationships – essential connections to fuel creativity.  

Rising complexity and escalating competition have also made partnering a core innovation strategy for many organizations. As midmarket businesses become more geographically diverse and interact with other organizations, the importance of sustaining a collaborative business culture will only continue to grow. Those that are perceived to be collaborative often find it easier to partner with other successful companies. In fact, about 50 percent of midmarket CEOs see partnering or collaborating as a way to stay on the path of innovation.  

In addition, given the market pressures to operate with greater openness and transparency, CEOs are looking for employees who will thrive in this kind of atmosphere. CEOs are increasingly focused on finding top talent with the ability to constantly reinvent themselves. These employees are comfortable with change; they learn as they go, often from others’ experiences. CEOs regard interpersonal skills of collaboration (72 percent), communication (68 percent), creativity (58 percent) and flexibility (66 percent) as key drivers of employee success to operate in a more complex, interconnected environment.

Organizations are under intense pressure to respond to not only how customers want products and services delivered, but also when and where. Businesses can profit from unique insights they discover about customers. In fact, 65 percent of midmarket CEOs identify customer insights as the most critical investment area. 

Finally, mobility is also elevating customer expectations and creating new challenges for CEOs.  Midmarket clients have a tremendous opportunity to create value out of immediacy to be ready with relevant services and information in the context of the moment. As mobile commerce is expected to reach $31 billion by 2016, companies will need to take advantage of location based services and new forms of commerce in which mobile is integrated into a consumer's multichannel experiences, tailored to the individual, to stay competitive.

More information on Customer Relationship Management (CRM) can be found at www.CRMindustry.com