Results

Apple to Introduce Business Chat for Customer Service and Commerce

Apple to Introduce Business Chat for Customer Service and Commerce

Constellation Insights

Apple is set to take another turn toward the enterprise—and into competition with the likes of Facebook and Twitter—with an upcoming service called Business Chat. While Apple is set to formally unveil Business Chat during the Worldwide Developer Conference on Friday, a page on its website provides some basic details:

Business Chat is a powerful new way for businesses to connect with customers directly from within Messages. Using Business Chat, your customers can get answers to questions, resolve issues and complete transactions on their iPhone, iPad, and Apple Watch. Customers can find your business and start conversations from Safari, Maps, Spotlight, and Siri.

Apple has said there are more than 1 billion active iOS devices in the world, giving iMessage a broad footprint. But iMessage isn't as widely used as Facebook Messenger and WhatsApp, both of which report more than 1 billion unique users. That's in part due to the fact that there are more than 2 billion active Android devices, and also because unlike Messenger and WhatsApp, iMessage runs only on iOS. Moreover, many Apple users have more than one iOS device, which shrinks the overall pool.

Still, iOS devices users are notoriously loyal to the brand, and therefore iMessage presents an ideal additional way for businesses to reach customers.

"The key is providing in-context experiences," says Constellation Research VP and principal analyst Alan Lepofsky. "People don’t want to leave what they are doing."

Constellation estimates that mobile messaging will reach 1.9 billion users worldwide this year and grow nine to 12 percent per year through 2020. 

Chatbot customer support has already become popular within Facebook Messenger, Twitter, WhatsApp and WeChat in Asia, says Constellation Research VP and principal analyst Cindy Zhou. "These mobile messaging platforms have the majority of the business chat market share," Zhou says. "Apple iMessage has an opportunity to compete in this space with its native app." 

The chatbot support trend is spreading fast. Other companies such as the Dutch airline KLM, rolled out chatbot support on Facebook messenger last year to provide customers booking confirmations, boarding passes, and seat change services.

Moreover, Apple plans to integrate Business Chat with Apple Pay. That ties into the trend toward messaging commerce, where customers can go from service requests to completing transactions in a single chat session, Zhou says. (Read a summary of Zhou's in-depth report, "A CMO’s Guide to Mobile Marketing Opportunities in 2017 and 2018.")

Business Chat is listed as being in developer preview, but presumably will become generally available as part of the launch of iOS 11 later this year. 
 
What remains to be seen is how many important enterprise features Apple will provide for Business Chat out of the gate, such as integrations with popular CRM, e-commerce and help desk applications. Without these, Business Chat will be little more than another communication silo. It's also not clear how much Business Chat will rely on chatbots, versus serving as a communication channel to live customer service representatives. Hopefully, those questions and others will be answered during Apple's presentation on Friday.

24/7 Access to Constellation Insights
Subscribe today for unrestricted access to expert analyst views on breaking news.
 
 
Marketing Transformation Next-Generation Customer Experience Chief Customer Officer Chief Marketing Officer Chief Digital Officer

If You Can Only Try

If You Can Only Try

1
 

Living, as we do, in a time of rapid change. Of transformation and uncertainty. It can be difficult to see what our long term future holds.

You can see it in the words we use to describe our lives. These words are flat. Uninspired. Transactional. We have entire governments swept to power on the back of the laziest of phrases and political slogans masquerading as thought-through policy agendas.

But we have not arrived in this desolate landscape randomly. It is the end-result of a thousand micro choices that consolidate our misery.

It is as if we have abdicated our personal responsibility for imagination in favour of a strange wariness of close fears. Today, in Australia, it was announced that we now hold the record for economic growth without a recession. We have experienced 26 years without interruption to our prosperity. Twenty six years without a downturn.

We have a generation of people who have known only growth. There have been few labour strikes. Precious few public protests. This perceived prosperity has dulled our senses to our own personal agency. The storytellers who ignite our hearts and passions no longer tread the public boards of our most important debates – they pop up in our Facebook news feeds, talking at TED or singing on “Insert Your Country Here’s” Got Talent.

But this can change. The story is the trick. And if we do want to reclaim our sense of the future, then there’s much to learn from the careful crafting that goes into the stories of digital media’s emerging heroes. Just watch this clip from America’s Got Talent. Think about the one clear message. See how you are drawn in to this story. Understand how and why you respond to what you see and what you hear. And see how the foreground, backstory and framing create the conditions for you to take the story into your heart.

Then think about what you can do to change your sense of what is possible. You only need try.

Marketing Transformation Chief Marketing Officer

Introducing Digital Adoption Platforms

Introducing Digital Adoption Platforms

Introducing Digital Adoption Platforms

> Click here to purchase and download the report <

The portfolio of business software, websites and mobile applications employees use to get their jobs done is growing rapidly. With each tool having a different look and feel, different features and different processes, learning how to effectively use all these tools quickly becomes a big challenge. If these hurdles are not overcome, adoption of the tools suffers, support costs go up, and the value of the tools goes down. On the external side, prospects and customers face similar challenges when navigating the wide variety of websites and social media applications required to engage with their favourite brands. This type of friction reduces customer loyalty, hurts sales and creates a bad reputation for the brand.

To solve these challenges, a new category of software is emerging that can be integrated into applications and websites to help guide people from right within the context of the task they are trying to perform. Constellation Research refers to this category as Digital Adoption Platforms (DAPs) and organizations of all sizes are using this new type of software to coach people toward more successful adoption of applications and websites.

This report, which is part of Constellation Research’s Future of Work research theme, defines the business need for Digital Adoption Platforms, discusses their benefits and provides example use cases.

TABLE OF CONTENTS
- Executive Summary 
- Four User Experience Issues That Impede Software Adoption 
- Trends Contributing To The Emergence Of Digital Adoption Platforms 
- Digital Adoption Platforms: Modernizing Legacy Help Systems 
- Categorizing The Maturity Of Digital Adoption Platforms 
- Getting Started: Focus On Core Use Cases 
- Conclusion

> Click here to purchase and download the report <

 

Chief Customer Officer Chief Executive Officer Chief People Officer Chief Information Officer Chief Marketing Officer Chief Digital Officer

'Subscription Economy' Player Zuora Gears Up for Its Next 10 Years with Zuora Central

'Subscription Economy' Player Zuora Gears Up for Its Next 10 Years with Zuora Central

Constellation Insights

Zuora has taken the wraps off Zuora Central, a cloud-based hub for coordinating order-to-cash operations across an enterprise's systems. It's the result of a top-secret project that's been in the works for two years, and it will define the next 10 years of the company, CEO Tien Tzuo said during a keynote at the company's Subscribed conference this week.

Zuora sells a series of SaaS applications for businesses that run on a subscription model. The company sees the "subscription economy," which has already enjoyed robust growth over the past decade, as set to explode thanks to changing consumer expectations about how they want to buy, as well as trends such as the IoT (Internet of things), which is allowing enterprises to create new types of subscription service and product offerings with the use of connected devices and data analytics.

Central uses a microservices architecture and sits between a company's CRM and ERP systems—of which there can be many indeed due to acquisitions, divisional requirements, runaway procurement practices and other types of technical debt. The clutter makes it difficult for companies to make pricing and packaging changes, for example, without a lot of manual labor addressing each system. It's the kind of problem that stifles any company looking to become a dynamic, subscription-based business, Tzuo said.

In hub-and-spoke fashion, Central connects to all these systems by leveraging order-to-cash engines decoupled from Zuora's applications. The engines target subscription orders, subscription accounting, subscription metrics, a central pricing engine and a global payments engine.

Central will serve as Zuora's core central platform and a target for continued investment, while its six products will continue to work and be sold independently, Tzuo said. Customers who buy Central will be able to integrate it with third-party applications, such as a CPQ (configure, price, quote) system that provides specialized features not available in Zuora's offering.

Analysis: Zuora Central Is the Natural Evolution 

It's notable that with Central, Zuora is making no attempt to usurp the likes of Oracle, Salesforce or Salesforce from customer environments. Rather, the strategy is to accept the messy reality of enterprise IT environments and present Central as the solution for companies looking to subscription offerings for growth. 

Zuora was able to convince three extremely high-profile customers to take the keynote stage during Subscribed: General Electric, Caterpillar and Ford. While it wasn't clear whether they are initial Central customers (their appearances came before Tzuo's big reveal of the platform), that seemed to be the implication.

GE has been selling its IoT software platform Predix on a subscription basis, while Caterpillar's CAT Connect initiative offers digital value-added services across its construction, mining, energy and transportation businesses. Ford, meanwhile, has developed the Fordpass mobile app as part of a bid to develop deeper, ongoing customer relationships. Ford's longer-term vision sees subscription models playing a role in car ownership as well as other modes of transport. All in all, it was a solid set of references for Zuora to get onstage. 

Zuora has spent the past roughly 10 years building out its application set through organic development and acquisitions (the most recent being Leeyo, maker of revenue recognition software). Central's two-year gestation period shows good foresight on the part of Zuora's leadership. Today, the GEs of the world are placing big bets on subscription business models and as they scale, a unified platform will be what they require.

Moreover, Zuora's technology is mature, as the company will make its 100th overall release this year. What to watch now is for how well Zuora Central, version one, delivers on usability and time-to-value. The last thing its target customers need is another data-integration hairball. 

24/7 Access to Constellation Insights
Subscribe today for unrestricted access to expert analyst views on breaking news.

 

Marketing Transformation Matrix Commerce Next-Generation Customer Experience Tech Optimization Chief Information Officer Chief Marketing Officer Chief Procurement Officer Chief Supply Chain Officer Chief Digital Officer Chief Revenue Officer

Digital Market; Defining Your Enterprise Value Proposition

Digital Market; Defining Your Enterprise Value Proposition

To exist at all, let alone prosper any Enterprise has to create something of tangible value in the form of a proposition that will match buyers’ requirements. Digital Markets, by definition, are based on new value propositions, mostly around services more than products, a point exploited by new entrants. Recent events have shown how these circumstances are forcing existing enterprises into competitive re-evaluation of their value proposition, and Go To Market strategy.

The maturity of many current Markets has lead to relative low levels of Product innovation, and a stronger focus on finding competitive advantage through automating key processes and cost reduction strategies using IT. Increasingly non-core activities, which are non-differentiating, are being outsourced, a trend often started by IT**(see footnote), but now including Business functions such as Invoicing. The goal is to focus management time, and investment, on the critical business activities to create and sell the Products with maximized competitive differentiation.

The impact of the Internet and the Web, have forced Enterprises to develop and extend their traditional sales and marketing activities to meet changes in the expectations of customers, culture, and market places. Though these may have seemed to be major changes, or even transformations, in almost all cases they are extension of the existing core value proposition and products.

The Digital Economy creates entirely new Market places with new value proposition that result in a transformation to creating value and re-occurring revenues from Services as opposed to the one time invoice of a product. Enterprises must redefine what is the value to be created and from this what are the core activities that must work in an optimized chain of activities.

It used to be popular for Business Schools to refer to the ‘Golden Thread’ to define the coherent chain of critical activities spanning the Enterprise to create unique Business propositions/values. As an example in the case of General Motors the common activity description ‘GM makes cars’ misses defining General Motors Golden Thread. The reality is that GM competes by using its expertise in locating market niches, then designing and marketing a specific car model to compete for the selected customers; see diagram. The manufacturing of cars is carried out by an ecosystem of suppliers, or partners, providing their own specialized expertise to particular elements.

Obviously GM’s Golden Thread has, as for most other established Enterprises, been tied to selling a Product as the outcome. The same technique can be applied to define the activities that are critical to creating a Digital Markets Services outcome. GM has recognizes this and is working to develop new Golden Threads for the entirely different market around Services of the Digital Economy.

GM vision has two publically declared interlocking strategic initiatives to create high business value Services for consumption through the Digital Economy. The investment in Lyft and Driverless cars is to create new ways of providing transportation, whilst AtYourService aims to build long term relationships with ‘drivers’ to provide all their personal, individual transportation needs. Both are ‘pay by use’ subscription Services, and nether looks to sell a car as a product. Every major ‘car’ company has similar initiatives as the Industry Sector faces up to the disruptive pattern of change driven by several factors.

At the heart of this transformation is a rethink and redesign of the Golden Threads that GM must build and connect to deliver these exciting visions. The technologies that enable and deliver these Golden Threads are themselves part of the Digital Market and Services economy; namely CAAST, Clouds, Apps, AI, Services and Things. The new management generation looks to a hybrid skill base of technology and business in order to create its competitive success.

The acquisition by Samsung, known for its entertainment products, of in car entertainment specialist Harmon is a further example of a repositioning from Products to Services. Samsung Digital Services strategy focuses on providing the consumer with the Service of continuous ubiquitous personal entertainment whether in the home of on the move. Whilst Samsung may not be a direct competitor to the automotive companies it is an example of realignment within traditional market sectors introducing new competitors for a slice of the transformed Digital Services market.

The graphic below Publically published by VentureScanner.com shows the extent to which new startups are aiming to take some part of the revenues from the new connected car, or transportation market. The sheer numbers of new innovative value propositions will drive the market transformation as consumers find, and take up, new value choices.

For an established enterprise/brand to continue to its dominance into the new Digital Services Economy it has to move to completely new value proposition that offers a different experience through Services than their current product based offering. Existing customers and experiences should provide the foundation, but it will be the use of innovative technology in a new Golden Thread that is the underlying success factor.

Competitive success lies, as in the past transformations, in Business Process Re-engineering the enterprise to deliver the value proposition. Unlike the internal Back Office process revolution of ERP based client-server technologies, this time it is an external Market place driven revolution built on new technologies that will redesign the Enterprise Business model

 

** Footnote; The recent example of British Airways Globally visible three day outage of all passenger systems due to an IT failure is a reminder that outsourcing does not remove the requirement for a Board to understand, and retain competencies in core business operational areas.

New C-Suite Innovation & Product-led Growth Tech Optimization Future of Work AI ML Machine Learning LLMs Agentic AI Generative AI Analytics Automation B2B B2C CX EX Employee Experience HR HCM business Marketing SaaS PaaS IaaS Supply Chain Growth Cloud Digital Transformation Disruptive Technology eCommerce Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP Leadership finance Customer Service Content Management Collaboration M&A Enterprise Service Chief Information Officer Chief Technology Officer Chief Digital Officer Chief Data Officer Chief Analytics Officer Chief Information Security Officer Chief Executive Officer Chief Operating Officer

Microsoft Build: How Developers Can Redefine Productivity

Microsoft Build: How Developers Can Redefine Productivity

At Microsoft Build, their annual developer conference, they emphasized the opportunity that the Microsoft platform (Office 365, Azure, Windows 10, etc.) provides for developers to help redefine personal productivity and team collaboration for hundreds of millions of people.

Here is a quick summary of the key topic areas:

Here is a video where I provide my thoughts, feedback and analysis of the key items from Microsoft Build.
00:00 - 01:30: Introduction
01:30 - 09:14: Microsoft Teams
09:14 - 10:27: Microsoft Graph
10:27 - 13:48: Artificial Intelligence, Microsoft Cognitive Services
13:48 - 15:19: OneDrive Files on Demand
15:19 - 18:21: Mixed Reality, VR/AR, Hololens
18:21 - 19:42: Windows Story Remix
19:42 - 21:45: Intelligent Meetings
21:45 - 24:52: Recap/Conclusion (and Project Emma)

 

4 Clever Digital Safety and Privacy Quotes

4 Clever Digital Safety and Privacy Quotes

Constellation Executive Network Thought Leadership

Steve Wilson, Constellation Research VP & Principal Analyst, covers digital safety and privacy and is chockful of knowledge about blockchain, security, and more. He's also a quick wit as you'll be able to tell from him quotes. His guidance on blockchain is among our most popular content for our readers. 

We provide weekly thought leadership quotes for anyone interested in non-mainstream, disruptive thinking from our seasoned Constellation analysts. The full archive remains accessible for our Constellation Executive Network members.

DOWNLOAD THESE ANALYST QUOTES

DIGITAL SAFETY & PRIVACY - Steve Wilson |  VP & Principal Analyst | Constellation Research 

"Biometrics don't work like they seem to in the sci fi movies. No security system is 100%."

"Most people are not yet up to speed on blockchain. No one should be shy to ask what blockchain is really all about."

"Computers are like nitroglycerine. They're kind of safe if you're unnaturally careful in the way you handle them."

"The question of whether consumers will pay for privacy protection is vexed."

        

Digital Safety, Privacy & Cybersecurity Innovation & Product-led Growth Future of Work New C-Suite Tech Optimization Data to Decisions Next-Generation Customer Experience Matrix Commerce Leadership AI ML Machine Learning LLMs Agentic AI Generative AI Robotics Analytics Automation Cloud SaaS PaaS IaaS Quantum Computing Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP CCaaS UCaaS Collaboration Enterprise Service developer Metaverse VR Healthcare Supply Chain Security Zero Trust Chief Information Officer Chief Experience Officer Chief Technology Officer Chief Data Officer Chief Digital Officer Chief Analytics Officer Chief AI Officer Chief Information Security Officer Chief Product Officer Chief Financial Officer Chief Operating Officer Chief Executive Officer Chief Privacy Officer

Marketers Should Prepare Now for Google's Ad-Blocker for Chrome

Marketers Should Prepare Now for Google's Ad-Blocker for Chrome

Constellation Insights

Google depends heavily on advertising for its revenue, so the thought of it installing an ad-blocker inside the Chrome web browser might seem counterintuitive at first. But what Google is really out to block—and moreover, prevent from being created in the first place—are advertisements that simply put, are annoying. 

The tool is expected to ship with Chrome starting sometime next year. In the meantime, Google is putting publishers on notice, as the Wall Street Journal reports:

Google has told publishers it will give them at least six months to prepare for a new ad-blocking tool the company is planning to introduce in its Chrome web browser next year, according to people familiar with the company’s plans.

The new setting, which is expected to be switched on by default within the desktop and mobile versions of Chrome, will prevent all ads from appearing on websites that are deemed to provide a bad advertising experience for users.

To help publishers prepare, Google will provide a self-service tool called “Ad Experience Reports,” which will alert them to offending ads on their sites and explain how to fix the issues. The tool will be provided before the Chrome ad blocker goes live, the people familiar with the plans say.

Google has joined up with the industry group Coalition for Better Ads. Other members include Facebook, Unilever, Proctor & Gamble, Thomson Reuters and the World Federation of Advertisers. The CBA has named a dozen desktop and mobile ad types that fail to meet consumer acceptance thresholds it developed through a survey of more than 25,000 users. They include auto-playing video ads with sound; large sticky ads; full-screen scrollover ads; and positial ads with a countdown clock. (A full list with visual examples is available here.)

"It’s far too common that people encounter annoying, intrusive ads on the web--like the kind that blare music unexpectedly, or force you to wait 10 seconds before you can see the content on the page," Google SVP of ads Sridhar Ramaswamy wrote in a blog post this week. "These frustrating experiences can lead some people to block all ads—taking a big toll on the content creators, journalists, web developers and videographers who depend on ads to fund their content creation." 

Ramaswamy didn't go into detail on the ad-blocker—which the Journal says Google is referring to as a "filter"—but said that Chrome will stop showing ads, including ones "owned or served by Google" on websites that don't meet the CBA standards starting early next year.

Analysis: Google Gets Out In Front of A Vexing Problem

Nearly 90 percent of Google's revenue comes from advertising, and that's true whether the ads are annoying or not. At the same time, Google wants to stem the tide of existing ad-blocker tools, which are being used by hundreds of millions of people already, by fostering a better browsing experience through improved ads. 

Google certainly has leverage to influence the marketing and advertising industry, given that Chrome has a 60 percent share of the browser market. All in all, this is a wakeup call for marketers and advertisers, says Constellation Research VP and principal analyst Cindy Zhou.

It's not the first move Google has made lately to provide a smooth browsing experience while balancing its dependence on ad revenue, Zhou says, pointing to the penalty Google started imposing in January on intrusive interstitial mobile ads. 

"For marketers and advertisers, they have time to prepare for the changes, and it is time for them to step up their ad standards," Zhou says. "Users are annoyed with poor site experiences due to the number of intrusive ads that take a long time to load. There is more brand damage that occurs with these types of ads."

However, what remains to be seen is how Google wields the great power it holds over the online advertising world through Chrome. Although the company says its standards for what makes an acceptable ad will be defined by CBA guidelines, it may be difficult for publishers to hold Google's feet to the fire if questions of fairness arise.

24/7 Access to Constellation Insights
Subscribe today for unrestricted access to expert analyst views on breaking news.

 

Marketing Transformation Next-Generation Customer Experience Chief Customer Officer Chief Marketing Officer Chief Digital Officer

Constellation's Business Trends AstroChart for The New C-Suite, Q2 2017

Constellation's Business Trends AstroChart for The New C-Suite, Q2 2017

Introducing the AstroChartâ„¢ of Business Trends for The New C-Suite

Aimed directly at executives, leadership, and key decision makers, Constellation’s brand new AstroChartâ„¢ of Business Trends for The New C-Suite provides an accessible visual guide to the highest order business trends and their journey of adoption in the digital enterprise.  The vertical axis rates adoption from mainstream to early adopters to bleeding edge.  The horizontal axis estimates the impact on an organization’s business model, from incremental to transformational to exponential. A key objective of an AstroChart is to move beyond the hype and constraints of the traditional two-dimensional rating grid.

Curated from hundreds of data points from conversations and interviews with and surveys of CXOs and board members over the last year, Constellation has assembled an actionable and highly-impactful AstroChart of how current business trends in the digital enterprise -- specifically at boardroom and C-Suite level -- are evolving and maturing. As is typical for an AstroChart, these trends will be updated approximately every 180 days and will reflect what’s placed into our Futurist Framework and PESTEL model as well as industry inquiries and our primary research.

The New C-Suite Will Build the Future Organization

As a concept and coverage area for Constellation, The New C-Suite represents a leadership-centered focus on the business and technology issues most impacting the digital enterprise today at the most strategic level. This view is tailored especially for CIOs, CDOs, CMOs, CEO, CHROs and other C-level roles. Consequentely, the topics included on this AstroChart either have a) broad applicability to the majority of organizations in the near-term or are b) more cutting-edge yet our analysis shows will become a major priority soon enough.

In terms of inclusion, the Business Trends AstroChart for the New C-Suite covers strategic business topics that are either deeply affected by the modern digital revolution or are actually being created and/or made by possible by it. CXOs are encouraged to become familiar with and fluent in these topics as they will drive both top-level opportunity and disruption today for most organizations in the vast majority of industries and geographies.

As an aid and planning guide for CXOs, the New C-Suite Business Trends AstroChart will have some occasional overlap with other Constellation AstroCharts, such as the overall Business Trends AstroChart, though the topics themselves may have updated positions, depending on the maturity and impact the trends have at a leadership level. We believe this guide will cut through the noise by outlining what matters to the most senior digital leaders.

Figure 1. Constellation’s AstroChart of Business Trends for The New C-Suite

AstroChart for The New C-Suite Q2 2017: Digital Transformation CXO Topics Guide, Grid, and Quadrant

The Business Trends C-Suite Astrochart Shows Broad Impact of Digital on Today's Rapidly Evolving Enterprise

Analysis of the nine categories in The New C-Suite AstroChart provides guidance and source material for strategic planning of market leading organizations as well as those organizations intending to improve their strategic digital posture or maintain a fast follower position.  The nine categories include:

  1. Bleeding edge – Exponential. Still on the emerging edge for the enterprise, new startups and a few traditional organizations are using rethinking supply and demand in completely new digital terms that will redefine economic models of what's possible for decades.
  2. Bleeding edge – Transformational.  The pervasive reality of digital in everything organizations do, including how they collaborate, communicate, and work is enabling vast new possibilities in how we manage, organize, and operate them. New digital management theories are beginning to emerge, methods to harness change agents at scale have developed, next-gen corporate growth strategy/hacking are now vital enterprise imperatives, and data has become the center of how both strategic and tactical decision making is accomplished.
  3. Bleeding edge – Incremental.  A new view of employee that is much more personal, nurturing, and work/life balanced is starting to be realized. How companies are recombining and realigning through mergers and acquisitions is also being transformed by digital. Smart infrastructure, from smart cities and buildings to autonomous vehicles, are providing a new competitive edge for manufacturing to logistics, to name just two major industries being remade.
  4. Early adopter – Exponential. Digital transformation programs are now top of mind, leading to new life-affirming digital business models that will sustain organizations into the future. Digital ecosystems, enabled by the steadily growing API economy and demonstrated in the world-beating digital value chains of Apple and Amazon, are now the ultimate strategic objective for most organizations today.
  5. Early adopter – Transformational.  The primacy of the digital customer is the reality today and companies are designing their product and service experiences entirely around the customer experience. Digital leadership is evolving with critical roles such as the Chief Digital Officer (though now increasingly a title added to the CIO, for key evolutionary reasons), just as companies begin to use digital to tackle the long-term issue of employee engagement using digital-enabled programs. Industry 4.0 is now a leading strategic blueprint for organizations as well.
  6. Early adopter – Incremental.  Many leading digital enterprise trends are not in the most transformative areas, but are critical for modernization, including being a true unified digital brand experience inside/outside of the organization, dealing with increasingly complex digital regulation and compliance, protecting the privacy of customers, accelerating digital delivery through increased agility, consolidating the silos of tech that have emerged along the way towards enterprise-wide digital transformation, and getting IT to arrive to point of value generation much more quickly than in the past.
  7. Mainstream – Exponential.  While having been conducted through consortia and NGOs for decades, cross-enterprise collaboration at scale has now become a disruptive force, while employing digital networks to share costs and innovation for competitive advantage has begun to be used in many tactical forms as well. Digital leaders must look well beyond the scale of corporate initiatives to achieve their goals now and in the future.
  8. Mainstream – Transformational.  Cultivating the talent of the future, while rethinking staffing and talent sourcing with the growth of the gig economy and related trends has become a major obstacle to fuel the growth of the Fortune 500 and Global 2000. Smart manufacturing is enabling entire robot factories while innnovation management, a staid mainstay of R&D and product development even today in many organizations, is being energized, rethought, outsourced, and co-created in the digital age.
  9. Mainstream – Incremental.  Dealing with cloud vendors and the challenges they bring to the table as they end up sourcing most or nearly all of IT in the future, while coping effectively and repeatable with digital crises are critical topics to get right the first time, even if they're not necessarily transformational issues for The New C-Suite. The Center of Excellence, while still performing as a concept, is reaching the end of it's lifecycle but still has legs, and cybersecurity of course, has become one of the hottest topics in the boardroom, requiring focus and leadership like never before, and now must even become part of your brand.

Plan Your Corporate Strategy With The Constellation’s AstroChart for Business Trends for The New C-Suite

Digital leaders can stay abreast of strategic business trends by adoption rates and business model impact using Constellation’s AstroCharts. Use the AstroChart to develop your overall boardroom strategy and to benchmark your organization’s adoption. Constellation notes the following:

Organizations should take an assessment of their board room priorities and use the AstroChart to determine portfolio management.

  • Market leaders tend to bet 50% of their portfolio on disruptive projects
  • Market leaders tend to bet 30% of their portfolio on bleeding edge projects
  • Fast followers tend to bet 80% of their portfolio on early adopter projects
  • Exponential – bleeding edge bets require a very informed or founder driven board, innovation fund, or startup partners(s)

Become The New C-Suite

Would you like to take advantage of the Constellation’s AstroCharts for The New C-Suite? How have you built out your strategic investment map? Have you prioritized and fully resources your digital efforts? Learn how organizations can apply this business trends roadmap and Constellation's unique frameworks to disrupt digital businesses.

Note: This chart, as well as the pending Tech Trends for The New C-Suite are part of a forthcoming research report that details how these trends must form the foundation of the next generation of your organization.

Please add your comments, suggestions, notes on additions/omissions, and other commentary below. You can also reach me via email: dion (at) ConstellationR (dot) com or @dhinchcliffe on Twitter.

Finally, please let us know if you need help with your digital business and transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other digital leaders
  • Accessing the latest digital best practices
  • Understanding the vendor space
  • Identify options for implementation partners
  • Validating roadmaps and playbooks
  • Providing advisory and education to CXOs and boards

Additional Reading

Constellation's AstroChart For Business Trends, Q4 2016

CEN Member Chat: Trends for 2017 - Using the AstroCharts for Strategic Planning

Data to Decisions Digital Safety, Privacy & Cybersecurity Future of Work Marketing Transformation New C-Suite Next-Generation Customer Experience Tech Optimization Innovation & Product-led Growth Leadership AI ML Machine Learning LLMs Agentic AI Generative AI Analytics Automation B2B B2C CX EX Employee Experience HR HCM business Marketing SaaS PaaS IaaS Supply Chain Growth Cloud Digital Transformation Disruptive Technology eCommerce Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP finance Customer Service Content Management Collaboration M&A Enterprise Service Chief Customer Officer Chief Digital Officer Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Marketing Officer Chief People Officer Chief Procurement Officer Chief Revenue Officer Chief Supply Chain Officer Chief Experience Officer Chief Technology Officer Chief Data Officer Chief Analytics Officer Chief Information Security Officer Chief Operating Officer

Cisco's New Enterprise Agreement for Software: What It Means for Customers and Prospects

Cisco's New Enterprise Agreement for Software: What It Means for Customers and Prospects

Constellation Insights

Cisco has been trying to reorient its business around software for years, and may have just taken a step that will prove more important to that goal than any single acquisition or new product innovation.

The networking giant this week introduced a revamped Enterprise Agreement that appears to be quite customer-friendly and perhaps even unique in the software industry. 

Cisco's new EA is available for either three or five-year terms, and covers its infrastructure, security and collaboration software products. Others will be added over time, according to a statement.

Under the EA's terms, customers receive a 20 percent growth allowance. This means that customers can use up to 20 percent more supported licenses without the common "true-up" practice, wherein a vendor periodically checks for overuse and bills retroactively. 

Moreover, Cisco EA customers who exceed the 20 percent growth allowance will not be charged retroactively for the extra usage. However, their contracts will be updated at the start of the next billing period, Cisco says.

The full list of products available under the new EA is as follows:

Collaboration: Cisco Spark Flex Plan, Cisco Unified Communications Suite, Cisco Meeting Server add-on Suite, Cisco WebEx On-Premises Suite, among others.

Infrastructure: Cisco’s flagship infrastructure and data center technologies delivered through Cisco ONE Software suites: Switching, Wireless, WAN, Data Center Networking, and Data Center Cloud and Compute.

Security: Email Security Suite, Cloud and Web Security Suite, Policy and Visibility Suite, and  Security Essentials Suite.

Customers can add additional products to their EA as desired during the contract term. Another key point of flexibility is that the new EA allows customers to deploy software on-premises, in the cloud, or in a hybrid model. Cisco is providing access to a portal that gives customers a view into what they've bought and deployed, as well as when products are up for renewal. 

Analysis: A Good Deal for the Committed Customer

If you're already a sizable Cisco customer, the new EA should be well worth a look.

"Customers exploring new business models seek flexibility from their vendors in how they license usage," says Constellation Research founder and CEO R "Ray" Wang. "The 20 percent flex-up without an overage penalty is a great way for customers to expand how they use Cisco. More importantly, most customers want choice in deployment options and do not want to be limited in their usage by deployment.  This is initially good news for clients who have standardized or will want to standardize on Cisco."

Cisco says about 100 customers have signed deals under the new EA and that feedback has been good. 

It's also important for Cisco to offer this type of agreement, and some might say it's long overdue, given its long history of acquisitions and resulting tangle of different contract types brought into the mix. 

Of course, the goal is to get Cisco customers using more software, and to that end the products covered under the new EA are being offered in bundles, as well as on their own. However, bundles will get preferred pricing. Minimum pricing rules apply, however; each suite covered under the EA must have a total contract value of $250,000. 

While it remains to be seen, Cisco's move could also have a halo effect by prompting competitors to offer similar arrangements—whether as a matter of public policy, or at the negotiating table.

24/7 Access to Constellation Insights
Subscribe today for unrestricted access to expert analyst views on breaking news.

Tech Optimization Chief Financial Officer Chief Information Officer Chief Procurement Officer