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CEN Member Chat: Is the Internet of Things Worth It?

CEN Member Chat: Is the Internet of Things Worth It?

Andy Mulholland, Constellation Research VP & Principal Analyst, offers the perspective of a former CIO on the Internet of Things, and what makes it valuable.

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Progress Report - Acumatica shows good progress on its unique path

Progress Report - Acumatica shows good progress on its unique path

We were invited to the first Acumatica analyst summit in Boston this week. For a vendor’s first event of this type, the summit was very well attended with key analysts in the audience, certainly kudos for a first event.

 
So here are my Top3 takeaways from the meetings:

A unique strategy – Acumatica is probably the only vendor in the enterprise software space that does not have a direct sales force, but exclusively sells through channels. That has happened before, but the products were standardized with little need to no demand for customization. For an ERP suite it is unique. The consequences are twofold in my view



 
  • Acumatica can focus CAPEX on product and does not have to invest precious funding dollars on expensive sales people, who need time to ramp up and learn how to sell the product, before they get into the ‘black’ for their employers.
  • Acumatica needs to focus on a very flexible, standard based product. As Acumatica does not know where partners will take the product, it needs to create value to attract them and at the same time make it easy to adopt its platform / product. 
With over 1000 customers and only 120 employees, Acumatica has a pretty unique employee population and cost structure. The bulk of the employee population works in R&D, Acumatica did not disclose specific numbers, but we think this is a safe assumption. In the go to market Acumatica needs to spare no effort to get partners up to speed quickly. The ramp up, training and marketing / sales options are attractive, with executives in charge who understand partner enablement well from their previous work experience.
 
Acumatica Marketecture

Standards and Flexibility rule – For the longest time SaaS providers have maintained that SaaS cannot be customized. Ironic as early SaaS pioneers NetSuite and Salesforce always offered customization options from the very start. Acumatica is no different and has created a powerful customization framework that allows the addition and insertions of fields, screens and control elements. Nothing teaches better than practice, and when Acumatica signed up Visma (largest Nordic ISV) to build their new product on its platform, it had to learn a more flexible and multi-tiered approach to extension and customization. The original one level for customer customization was taken by Visma, so nothing was left for its customers. But by now Acumatica has addressed this in a pretty elegant extension framework, which for a number of extensions does not even require a restart of the application, as it used dynamic and declarative (late) binding. 
 
Acumatica Deployment Options
At the same tune, standards are key - Hitting on an innuendo from Microsoft’s Build conference (my takeaways here), Acumatica made the point with ‘who wants to learn ObjectiveC’ (for those reader who don’t know that is Apple’s proprietary apps programming language). So for Acumatica it is support for C# and Microsoft SQL Server / Azure DB as well as MySQL. Using the powerful OData protocol Acumatica makes it easy for customers and partners to export, view and manipulate data. And it opens partnerships with e.g. Microsoft for Office365 and PowerBi. Acumatica is also flexible in terms of tenancy, as it supports a shared all, share apps / dedicated DB and shared nothing deployment arcitecture. And the vendor also sees deployments across different architecture, private partner clouds as well as public cloud, where (for now) fellow Seattle neighbor Amazon AWS is the most popular option. Finally Acumatica has invested in a mobile platform that allows a tech savvy user to build and deploy self-built mobile applications. A key step accounting for the trend of enabling the departmental, business end user.

On the roadmap Acumatica plans more capabilities to enrich the platform, e.g. more advanced workflow functionality, more pre-built mobile applets to aid partners to build mobile applications and deeper insights on what is happening inside of the Acumatica system in real time (BAM). 
 
Acumatica UI
xRP – a cloud ERP for late comers – Moreover we had the chance to sit down with the xRP team and talk to some early adopting partners. There are a lot of service providers and ISVs out there who are being caught in the transformation of enterprise software to become cloud based. For service providers the move to cloud is both a threat and an opportunity. A threat as implementation budgets shrink dramatically, an opportunity as the deep understanding of best practices garnered from many implementations opens the chance to become a product provider. And then there are still a lot of ISVs who for whatever reason have missed moving their core offering to the cloud. An alternative scenario has been that they only offer complimentary functionality to other enterprise automation areas. As a side note this happens even with successful vendors – see the recent NetSuite and Ultimate and SAP and IBM partnerships (see here and here). And as a testament of the market need, Acumatica has seen over 60 xRP signing up for the offering, which is only available since barely 9 months. The first ones of these partners are live, another proof point of the Acumatica platform.
 

MyPOV

The enterprise software value chain has been a traditional one stop shop for marketing, sales, implementation and support for the longest time. Digital disruption will come to the enterprise model sooner or later, with viral selling, flush marketing, almost no sales teams, partner enablement and business user empowerment as the key trends. It is good to see a vendor practicing a lot of that today, which should make Acumatica pretty disruption proof for things happening in enterprise software sooner, than later.

On the concern side Acumatica is still very small. It needs to make sure its core offering is modern and in tune with 21st century practices. Partnering with Magento for commerce is a good move, but Acumatica cannot do similar partnership for more modern best practices too many times, otherwise it risks to become a ‘backbone’ for other partners. And then its days will be counted, so the vendor not only needs to make sure the product has a modern and attractive architecture (we give Acumatica good grades here) but its core automation capabilities need to stand the test of time as well. Lastly the user interface is short before looking dated, a common challenge, as consumerization of IT is moving user interface best practices faster than ever.

But for now it is good news for Acumatica and its customers, a good platform, flexible deployment and fast ramp up times are what enterprises and partners need. It will be interesting to see Acumatica grow in the years to come, you can count on us to observer.
 
Find more coverage on the Constellation Research website here.
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Don't Forget About Small Data

Don't Forget About Small Data

1

I'd like to share an article that I wrote for a recent sports-business themed issue of W.P. Carey Magazine (a publication from my MBA Alma Mater) that discusses the value of "small data" in sports and in business overall.

“Big data” and analytics has had a tremendous impact on the business of professional sports in the last decade, but the industry has lagged behind others in adopting customer relationship management and data modeling. Still, sports provides plenty of examples showing that data doesn’t always need to be “big” to be valuable. Smaller data points can generate a large impact, and I’ve learned over time that the most valuable source of small data is your front-line staff.

The front-line sales and retention teams are key to sustained ticket revenue in sports. Most businesses have similar staff that spend 90 percent of their workday communicating with customers, and each conversation is an opportunity not just to sell, but to collect valuable insights. CRM is the best vehicle to enable this, but more than conversation notes and expected close percentages, these interactions should be used to create robust customer profiles and insights.

Within sports, we identify several key fields that often come up in conversation: favorite player, who attends games with them and even what they don’t like about the team. We train the staff to have open conversations with fans, listen for these key topics and ask questions to delve deeper. Then within CRM, these data points are created as structured fields such as dropdown lists and checkboxes. The structure aspect makes the data more actionable than open-ended text — no worries about typos or shorthand.

In your industry, you might not have favorite players or game attendance, but I suspect there are other parallels. For example, if I’m selling cars, I’d want to ask who else may use the vehicle. Just as with sports tickets, the buyer is not always the final user, and that changes what product is the best fit. You must identify the most relevant questions for your business goals, even if sometimes the questions are not obvious.

Learning a fan’s favorite type of music may not seem relevant until there is an opportunity to offer concert tickets to help retain a high-value customer, or when the stadium operations staff chooses what music to play during timeouts. I know one team with 51 “small” data points that their staff can capture. By listening to the conversations between the staff and fans, collection efforts expanded, with each point tied to an actionable business objective. Don’t be afraid to align staff and data collection goals with incentives. If staff are judged solely on sales metrics, spending time asking these questions might not seem personally important, even though it is critical organizationally.

Finally, remember that when aggregated, small data also supports big data strategies, identifying common customer types and emerging trends, which in turn allows you to be more responsive. The days of simply waiting and measuring results are over. Use of data, both big and small, must be an ongoing, integrated process from the front lines to the back offices.

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Event Report - Informatica World 2015 - Product Progress and New Approaches

Event Report - Informatica World 2015 - Product Progress and New Approaches

We had the opportunity to attend Infomatica’s user conference Informatica World, happening this week in Las Vegas at the beautiful Cosmopolitan property in Las Vegas. The conference is well attended with over 2500 attendees (up from 2300 last year), attendees are in general positive mood and looking forward to learn more about new product functionalities. Uniquely presentations (at least the ones I attended) are always setup with a few slides and then demos with a ton of Q&A. Informatica definitively has the Doers at this conference judging from the caliber of the questions.

 
 

So here are my Top 3 takeaways from event:

Informatica stays the course – It was good to see that Informatica keeps building on its Intelligent Data Platform – IDP – and had five key new functionalities shown in the Day #1 keynote. With an intelligent offering for IoT with Project Atlantic, that has the goal to make sense of machine data and connect it with business data, Informatica may well have a future champion for the IoT age. Improved BigData management is coming with Project Sonoma. MDM gets enriched with Social360, brining social data into the MDM process. And Secure@Source brings important security innovations to Hadoop. The most interesting of the overall 5 in my view is Rev, the end user oriented data presentation and data analysis tool originally code named SpringBok. Business user enablement is the risk that disrupts potentially all enterprise software vendors, so it’s good for Informatica to have a horse in the game, which may help disrupt the market. More in detail is my News Analysis (here), also check out my colleague Doug Henschen’s takeaways (here).
 
Breya opens the Day #2 Keynote
Traction with Cloud Integration Products – We spoke to a number of customers and Informatica spokespeople on the Cloud Integration products, as part of our next generation Applications coverage. When enterprises and ISVs build a new enterprise software solution in 2015 it is very likely that they create an integration problem, as the new software does not run as an isolated solution. Informatica has been in the cloud integration market since almost 10 years, and is now seeing some benefits of an early mover: Over 3500 customers and 6B transactions are impressive statistics. The Informatica offering differentiates from many other products in the integration space by providing deep integration into endpoints, e.g. Salesforce, SAP, Oracle, Workday etc. Informatica maintains these, not a trivial task, given the fast release cycles of cloud products. But by now Informatica has maintained a number of these endpoints over a few years, so initial customer concerns can now be countered with a proven track record.

It was interesting that Informatica is helping adoption of the product with crowdsourcing best practices. Enterprises seldom want to go first, and technologists like to reach out to colleagues that have done the same or something similar. So with Discovery IQ users can see, who else has done the same or similar integration, certainly a modern and very helpful approach to increase adoption, foster a support community and ease common early project concerns. Equally Informatica has an integration market place, where integrations can be monetized, if desired. 
 
Informatica Cloud Product Portfolio
 
Informatica is traditionally doing a lot of business with ISVs, but it seems that the vendor is pushing even harder for these partnerships recently. At the same time Informatica is working closely with IaaS providers (most prominent are Amazon AWS and Microsoft Azure) et al. Certainly a clever move to empower ISVs (and customers) to move their data to the cloud. No surprise the most common use cases are around BigData.

And lastly we also see the drive for the empowerment of the (business) end user. With Infomatica’s Cloud Data Wizard for Salesforce, which makes it easier for users to connect Salesforce with other applications (Box and NetSuite are mentioned in the press release here), the vendor has another chip at the table (sorry for are in Las Vegas).

 
Sample of pre-package integrations of Informatica Cloud

Making life easier with DaaS – partnering with Dun & Bradstreet (D&B) – In a surprise move Informatica and Dun & Bradstreet announced a partnership already on Monday (see the press release here). In the past enterprise were confronted with a sizeable load of integration work to make a similar scope happen. Though most prominent CRM solutions have pre-built D&B interfaces (the teams of yours truly build these 3 times for 3 different vendors), implementing them was always tedious. Not only did they have to be setup, tested and validated, separate contracts had to be negotiated and signed with D&B. With the partnership of both vendors, Informatica customers can now enrich and procure their integration scenarios with D&B data in a single stop with Informatica. A significant simplification as anyone who has taken such an integration live can certainly attest.

It is also a start for Informatica into the DaaS market, which offers more opportunities to partner for the vendor as well as an additional revenue opportunity. It is early time for DaaS, but good to see the lead if Informatica amongst the enterprise integration players.

 

MyPOV

A good user conference for Informatica customers and the vendor. Good progress across all product lines and more value out of the integrated IDP offering. Reducing the time and cost to implement is certainly a value for users and Informatica delivers along those value propositions across its product portfolio. Informatica has replaced the complex pricing for cloud integration with a simpler, tiered endpoint pricing that should help sales and adoption.

It also looks that Informatica – at least for the attendees I spoke to – has been able to dissolve potential concerns around being taken private by a Private Equity player recently. It was good for Abbasi to tackle the subject directly in the keynote, but Informatica still has to share where the investment going forward is going to be, using the usual argument of being able to transform the company without the quarterly reporting pressures. The smart money is on transfomation from a perpetual license to a subscription business, and a large R&D investment. From the announcements at Informatica World it looks more like the same course, extending existing products.

As for concerns we can only raise the general enterprise software risks of quality and execution. Informatica needs to deliver the new features with good quality. It is well positioned against the threat from being disrupted by departmental users, as it has some good offerings, too, but e.g. a new player like Workato (more here), could change the enterprise integration game.

But for now its full steam ahead for Informatica, we will be watching.



More on Informatica:
  • News Analysis - Informatica's Sohaib Abbasi showcases Innovations for the Age of Engagement - read here
  • Future of Work - One spreadsheet at a time, Informatica Springbok - read here
  • Informatica pushes the cloud integration stakes - read here.
Find more coverage on the Constellation Research website here.
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7 Trends Influencing the Future of HCM

7 Trends Influencing the Future of HCM

Holger Mueller, Constellation Research VP & Principal Analyst, shares which HCM trends make a difference in the war on talent and gain your competitive advantage.

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The Cause of Enterprise Data Breaches

The Cause of Enterprise Data Breaches

Bank robber Willie Sutton, when asked why he robbed banks, answered "That's where the money is". It's the same with breaches. Large databases are the targets of people who want data. It's that simple.

Having said that, there are different sorts of breaches and corresponding causes. Most high profile breaches are obviously driven by financial crime, where attackers typically grab payment card details. Breaches are what powers most card fraud. Organised crime gangs don't pilfer card numbers one at a time from people's computers or insecure websites (and so the standard advice to consumers to change their passwords every month and to make sure they see a browser padlock is nice but don't think it will do anything to stop mass card fraud).

Instead of blaming end user failings, we need to really turn up the heat on enterprise IT. The personal data held by big merchant organisations (including even mundane operations like car parking chains) is now worth many hundreds of millions of dollars. If this kind of value was in the form of cash or gold, you'd see Fort Knox-style security around it. Literally. But how much money does even the biggest enterprise invest in security? And what do they get for their money?

Organized Information Security CrimeThe grim reality is that no amount of conventional IT security today can prevent attacks on assets worth billions of dollars. The simple economics is against us. It's really more a matter of luck than good planning that some large organisations have yet to be breached (and that's only so far as we know).

Organised crime is truly organised. If it's card details they want, they go after the big data stores, at payments processors and large retailers. The sophistication of these attacks is amazing even to security pros. The attack on Target's Point of Sale terminals for instance was in the "can't happen" category.

The other types of criminal breach include mischief, as when the iCloud photos of celebrities were leaked last year, hacktivism, and political or cyber terrorist attacks, like the one on Sony.

There's some evidence that identity thieves are turning now to health data to power more complex forms of crime. Instead of stealing and replaying card numbers, identity thieves can use deeper, broader information like patient records to either commit fraud against health system payers, or to open bogus accounts and build them up into complex scams. The recent Anthem database breach involved extensive personal records on 80 million individuals; we have yet to see how these details will surface in the identity black markets.

The ready availability of stolen personal data is one factor we find to be driving Identity and Access Management (IDAM) innovation; see "The State of Identity Management in 2015". Next generation IDAM will eventually make stolen data less valuable, but for the foreseeable future, all enterprises holding large customer datasets we will remain prime targets for identity thieves.

European Central BankNow let's not forget simple accidents. The Australian government for example has had some clangers though these can happen to any big organisation. A few months ago a staffer accidentally attached the wrong a file to an email, and thus released the passport details of the G20 leaders. Before that, we saw a spreadsheet holding personal details of thousands of asylum seekers get mistakenly pasted into a government website HTML.

A lesson I want to bring out here is the terrible complexity and fragility of our IT systems. It doesn't take much for human error to have catastrophic results. Who among us has not accidentally hit 'Reply All' or attached the wrong file to an email? If you did an honest Threat & Risk Assessment on these sorts of everyday office systems, you'd have to conclude they are not safe to handle sensitive data nor to be operated by most human beings. But of course we simply can't afford not to use office IT. We've created a monster.

Again, criminal elements know this. The expert cryptographer Bruce Schneier once said "amateurs hack systems, professionals hack people". Access control on today's sprawling complex computer systems is generally poor, leaving the way open for inside jobs. Just look at the Chelsea Manning case, one of the worst breaches of all time, made possible by granting too high access privileges to too many staffers.

Outside government, access control is worse, and so is access logging - so system administrators often can't tell there's even been a breach until circumstantial evidence emerges. I am sure the majority of breaches are occurring without anyone knowing. It's simply inevitable.

Look at hotels. There are occasional reports of hotel IT breaches, but they are surely happening continuously. The guest details held in hotels is staggering - payment card details, license plates, travel itineraries including airline flight details, even passport numbers are held by some places. And these days, with global hotel chains, the whole booking database is available to a rogue employee from any place in the world, 24-7.

Please, don't anyone talk to me about PCI-DSS! The Payment Card Industry Data Security Standards for protecting cardholder details haven't had much effect at all. Some of the biggest breaches of all time have affected top tier merchants and payments processors which appear to have been PCI compliant. Yet the lawyers for the payments institutions will always argue that such-and-such a company wasn't "really" compliant. And the PCI auditors walk away from any liability for what happens in between audits. You can understand their position; they don't want to be accountable for wrong doings or errors committed behind their backs. However, cardholders and merchants are caught in the middle. If a big department store passes its PCI audits, surely we can expect them to be reasonably secure year-long? No, it turns out that the day after a successful audit, an IT intern can mis-configure a firewall or forget a patch; all those defences become useless, and the audit is rendered meaningless.

Which reinforces my point about the fragility of IT: it's impossible to make lasting security promises anymore.

In any case, PCI is really just a set of data handling policies and promises. They improve IT security hygiene, and ward off amateur attacks. But they are useless against organised crime or inside jobs.

There is an increasingly good argument to outsource data management. Rather than maintain brittle databases in the face of so much risk, companies are instead turning to large reputable cloud services, where the providers have the scale, resources and attention to detail to protect data in their custody. I previously looked at what matters in choosing cloud services from a geographical perspective in my Constellation Research report "Why Cloud Geography Matters in a Post-Snowden/NSA Era". And in forthcoming research I'll examine a broader set of contract-related KPIs to help buyers make the right choice of cloud service provider.

If you asked me what to do about data breaches, I'd say the short-to-medium term solution is to get with the strength and look for managed security services from specialist providers. In the longer term, we will have to see grassroots re-engineering of our networks and platforms, to harden them against penetration, and to lessen the opportunity for identity theft.

In the meantime, you can hope for the best, if you plan for the worst.

Actually, no, you can't hope.

Learn More

Getting Started Guide: Privacy Engineering
The State of Identity Management in 2015
Why Cloud Geography Matters in a Post-­Snowden/NSA Era


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Digital Safety, Privacy & Cybersecurity

Cornerstone innovates with Analytics, PaaS and Learning, but needs to watch the basics

Cornerstone innovates with Analytics, PaaS and Learning, but needs to watch the basics

We had the opportunity to attend Cornerstone’s yearly user conference, Convergence in Los Angeles, taking place from May 12th-14th 2015. The conference is well attended with over 1500 attendees, a good growth from the 1300 in San Diego last year.

Here are my Top 3 takeaways from the event:

People Potential addressed with Learning – In the morning keynote Cornerstone CEO Adam Miller spend a good time talking about People Management that he sees as being all about managing potential. And true to its roots as a Learning vendor, Cornerstone sees Learning as a key component for people to achieve their potential. The premise is of course compelling, but from our research the potential definition seemed limited to a classic, vertical career potential, with no mention of lateral and horizontal potential. But it is good to see that Cornerstone is innovating around its core, Learning again. The ability to self-create and publish content, while still being screened and vetted on appropriateness is a key capability that Cornerstone demoed.

It was also good to see how Cornerstone has completed the complete Talent Management functionality from Recruiting all the way to Compensation Management. Overall a good keynote, with great customer brands on stage (Nestle and Louis Vuitton) and a good approach to bring both PaaS and Analytics (see below) to an audience mainly composed of HR professionals.

 
Miller with Next Generation [Learning] Content

Analytics on the roadmap – Leveraging internal previous work and assets from the Evolv acquisition (more here), Cornerstone has launched its analytics offering, called Insights (seems to be a popular name these for analytical offerings). In the keynote Cornerstone oscillated between dashboards and ‘true’ analytics a few times. That should not be a surprise as reporting was a critical aspect for its customers before, so if Cornerstone can address both issues it is certainly a good move (see the press release here). The good news was that in the keynote the example areas of analytics were all ‘true’ analytics (my definition here), which in my view are analytics that refer to either actions or recommendations for a business user.

From the little we learnt about the architecture, it looks like Cornerstone has done the right moves, putting data into Hadoop clusters and then running machine learning models on top of it. Doing model thrashing, i.e. running n models and choosing the ones with the best analytical value is equally the right approach vs. a traditional singular model approach. Now it comes back, like with all other analytical offerings by all vendors in the space, to show that the models ‘really work’ and make a difference when applied across the variety of customers with very different data landscapes. But for now a good move by Cornerstone, the land grab in Analytics is on – it will be interesting to see the first customer use cases and success stories.
 
7 Analytics Use Cases presented by Cornerstone
Will PaaS give Cornerstone an Edge? – Quite a surprise, Cornerstone announced a PaaS offering, called CornerstoneEdge (hence the word play). A year ago Cornerstone announced a Marketplace, this year it is giving customers and partners a development tool, the same that Cornerstone is using for much of its own product development. Being an original Learning vendor makes the education and on ramp up of developers an easy case for Cornerstone. It is also good to see that Cornerstone has thought about the perennial integration challenge of the HR system landscape offering an integration functionality.

But the crown jewels of CornerstoneEdge are certainly the AppBuilder functionality that allows users to create new applications easily. Remarkably these users can be both developers and (sufficiently tech savvy) end users. Cornerstone has developed its own programming language, called Shelby. The motivation for that was to create an easy to use, end user friendly language. Cornerstone shared that it is object oriented, and the need to build Shelby was largely created by the lack of end user friendly programming languages on the market.

And finally Cornerstone allows the publication of the new built applications on the market place. CornerstoneEdge is supposed to roll out through the 2nd half of 2015, with general availability being planned by early 2016.

 
Corsello with 3 PaaS use cases

MyPOV

Another good user conference for Cornerstone. The vendor is growing and with all the positive dynamics are experienced by the attendees like overall growth, new functionality and customer adoption. And the new venue at the JW Marriott in downtown LA was certainly a good move, too.

On the positive side it is good to see that Cornerstone is innovating in key areas around the core offering with Analytics and a PaaS, both critical moves in our view to offer the next level of best practices for HCM. Both also help to foster a vibrant eco system. It was also good to see that Cornerstone is innovating ‘back at the roots’ with its Learning module. On the business side this was the first analyst meeting where the assembled analysts did not give Cornerstone CEO Miller a hard time for strategic direction beyond Talent Management, which basically means that Cornerstone has reached a status quo in the Talent Management space. The vendors ambition to reach 1B US$ revenue seems plausible.

On the concern side the choice of a proprietary programming language with Shelby will not woo developers, but that's ok. Cornerstone is not going after the all-purpose PaaS market, but the extension of its ecosystem and customization market. There success of CornerstoneEdge will live and die by the capabilities that enable and end user to develop (ideally) with no coding. The user interface needs improvement, there has been little innovation in the last 12 months or so and with the acceleration of UI best practices, a timeout of 2-3 quarters is the equivalent of 2-3 years not so long ago. The good news is that customers seem not (yet) to be concerned, but Cornerstone should take action soon and decisively.

Finally we did not have a chance to have the usual high level glimpse behind the curtain with Mark Goldin – so ‘flying blind’ on that aspect makes us neutral in this direction. A lot has happened in cloud infrastructure best practices, so we hope to catch up on that soon.

But overall congrats to Cornerstone to a good event, it’s still on for another two days, so stay tuned. 

And finally a collection of notes aka tweets from the conference:
 

 

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Informatica Sets New Goals For Its Growing Data Platform

Informatica Sets New Goals For Its Growing Data Platform

Informatica World 2015 Event Report. Last year at Informatica World 2014, this $1-billion-annual-revenue data-integration company introduced the Intelligent Data Platform (IDP). The goal, in part, was to unifying its various products for on-premises and cloud data integration, data cleansing, master data management and so on. The company promised the platform would delve more deeply into big data while also extending into data security, addressing boardroom-level concerns about data breaches and data privacy.

This week at Informatica World 2015, CEO Sohaib Abbasi kicked things off reviewing IDP accomplishments to date as well as new goals for “the age of engagement.” Contrasting this new age with the old “age of productivity” – in which businesses focused mostly on transactions and efficiency — Abbasi warned that the data challenges are getting harder as we try to correlate mobile, social, machine and other emerging data types with transactions managed both on premises and in the cloud.

Informatica CEO Sohaib Abbasi Informatica CEO Sohaib Abbasi details growing data challenges as the focus shifts from transactions to engagement.

“We have to understand not only what products customers bought, but also which products they like, who their friends are and who they influence,” said Abbasi, underscoring the connection between transactions and social engagement.

Informatica Rev: Self-Service Goes Public

Chief among Informatica’s IDP achievements over the last year was the September launch of Informatica Rev (originally called Project Springbok, as covered here by Holger Mueller), a self-service tool designed to help business users prepare their data with guided recommendations for tasks such as curating, cleansing, joining and enriching data. Rev’s Excel-like user interface was demonstrated by Andrew Comstock, director of product management, who showed how a data novice could bring related data sets together with a “blend” feature that spots shared data keys and automatically joins the data without coding. Users can also segment data into categories such as “small, medium and large” customers by providing labels and simple range settings.

The new combinations of data that users create can be shared, so Comstock pointed out that Rev is really a public-service tool, not just a self-service tool. Not only do colleagues find these Rev-generated blendings useful and reusable, IT can take note of popular data sets created in Rev and can learn from the data-prep steps taken by end users to create hardened production data resources.

MyPOV: Self-service is a mantra these days, but not all such offerings also put an emphasis on wider collaboration and reuse. With self-service approaches there’s a risk that users can be self-centered, creating new silos of data that are only useful to them. With its combination of an Excel-like interface and automation and recommendation features, Informatica is making data access and data preparation more accessible to non-IT users.

Secure@Source Spots What’s Sensitive

Launched in April, Secure@Source is Informatica’s move deeper into the security arena (beyond data masking) with a product that takes advantage of its knowledge of the metadata. The goal is to help companies prevent data breaches while also supporting data-privacy and data-audit initiatives.

Secure@Source analyzes the metadata in Power Center repositories and spots sensitive data that might be at risk. This list of sensitive data automatically recognized includes PCI, PII and PHI data, but you can also customize to spot what’s uniquely sensitive to a particular firm. The system reveals both groups and departments that have the highest data risks, because of the nature of their data, and which groups lack adequate security controls. For now, Secure@Source is limited to structured data managed by Power Center on-premises, but the roadmap calls for support of both unstructured and cloud data external to Power Center.

MyPOV: To what degree will this product be a tough sell or, at least, a top-down sell in organizations where data-management professionals view security as somebody else’s job and where security professionals likely have their preferred vendors and approaches. I asked Informatica executives just that, and they acknowledged that they have to educate the sales force and reach out to new buyers including chief data officers and chief security officers. I suspect this product may take a while to get rolling, but Informatica is smart to tap into its knowledge of the metadata to move into the security category. Adding unstructured and cloud sources will be essential.

Project Sonoma Tracks Big Data Lineage

Abbasi put deeper big data integration on the roadmap by announcing Project Sonoma, an effort to bring development agility and governance to Hadoop-based data lakes or data hubs. Set for release in the second half of 2015 (read, late this year), Sonoma is designed to help developers make sense of  data in Hadoop-based data lakes as well as external sources so they can collect trusted, relevant data for big-data analysis. Amit Walia, senior VP and GM of data integration and data security, demonstrated how users might bring transactional as well as social and mobile data together using a Live Data Map feature. In a user scenario he searched a 4-petabyte data lake for information that might be relevant for customer-churn analysis. A Knowledge Graph component of Sonoma tracks data lineage, giving developers a better idea of whether that data can be trusted. A Social Graph component recommends social network and media sources that might fit the project.

Sonoma’s output is a report that catalogs all relevant and trusted data that might be used in a customer-churn analysis. As with Rev, the report is an enduring, sharable asset, so it can trigger collaboration and resue and save time the next time a similar project is pursued.

MyPOV: All is good in concept, but this product is a bit over-the-horizon. I have to wonder to what degree it will overlap with data-lineage and data-cataloging efforts being pursued by the Hadoop community. It will be important for Informatica to interoperate with these tools and platform options to give customers flexability and a choice. Informatica has already integrated with Cloudera Navigator, for example, which is that Hadoop distributor’s tool for tracing data lineage within its clusters. Informatica can track lineage more comprehensively.

Social360 and Big Data Relationship Management

Social360 for Informatica MDM – also expected in the second half of this year — is an enhancement of the vendor’s on-premises master data management platform, MDM 10. Informatica says the feature will help organizations match transactions with social network interactions and media mentions to spot influencers of valued customers. Suresh Menon, VP information quality solutions, demonstrated an interface in which social content pertaining to competitors, product features, channels, and customers were revealed.

Making use of social data isn’t always easy, so a Big Data Relationship Management, another coming MDM enhancement, is designed to enrich social data with demographic and sentiment data. The idea is to help spot the hot topics, the big customers, and the big influencers, aiding deeper sentiment-analysis options.

MyPOV: Here, too, I’m wondering to what extend Informatica is working with sentiment-analysis tools, vendors and options. Partner Salesforce, for example, also captures social and sentiment data, but it’s all in the context of sales, marketing or customer service. Informatica’s opportunity is to facilitate and feed broader analysis extending into supply chain and manufacturing. Plenty of apps vendors are talking about linking the social and transactional worlds, so Informatica has to stick to playing the metadata-savvy Switzerland.

The Big Picture

With its Intelligent Data Platform, Informatica is raising the level of discourse out of niche data projects and up to five prominent IT initiatives: analytics, total customer relationship, application consolidation, cloud modernization, and data governance. These five initiatives account for the lion’s share of Informatica deployments, and they are tied to larger business objectives (read, funding sources) like driving better decisions, improving cross-selling and up-selling, grappling with mergers and acquisitions, improving business agility, and getting governance, risk and compliance under control.

Out of the 2,400-plus attendees here at Informatica World 2015, most seem to be data-integration veterans who have used the company’s tools for a long time. But given packed halls for cloud and big data topics, it’s clear that demands are changing and customers are looking beyond the same old ETL and ELT workloads. In a briefing with analysts, Abbasi said that a key reason Informatica is planning to go private is to up the innovation.

“With all this disruption going on, now is the time to double down and invest even more in big data, in Rev [self service], in MDM, and in security,” he said. No doubt that will be easier without having to face public financial scrutiny.

One disruptive force Informatica didn’t mention was all the open source options commoditizing baseline capabilities like ETL. Informatica has to do more to deliver value, and it’s clearly moving quickly to do just that. I expect it to move that much more quickly once this corporate transition takes place as expected in the second or third quarter of this year.

 



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Five Reasons to Attend the Digital Disruption Tour #cxotour

Five Reasons to Attend the Digital Disruption Tour #cxotour

Join Constellation's Digital Disruption Tour
Constellation in the middle of our Digital Disruption Tour, and we'd like you to join us. 

The Digital Disruption Tour is a series of executive-level seminars where attendees learn how to effectively conquer disruptive forces in the era of digital business. 

Think about this: Since 2000, 52% of the Fortune 500 has fallen off the list as a result of mergers, acquisitions, bankruptcies, or replacements. Success in the digital era requires a new business education and a new skill set that enables executives to create business models that take advantage of the digital economy. Join the Digital Disruption Tour to learn how to identify the trends governing business in the digital era. Constellation analysts will also equip attendees with strategies to excel in digital business.

Five Reasons to Attend the Digital Disruption Tour

1. Learn how to identify disruptive trends and harness the power of disruption before your peers

2. Constellation Analysts and thought leaders will share their visions of the future of enterpise technology

3. Receive a copy of my new book, Disrupting Digital Business

4. Network over cocktails with leaders in disruptive technology and other executives who 'get it' 

5. No admission fee!

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Remember: Digital Darwinism is unkind to those who wait!

Digital Disruption Tour Dates:


May 14, 2015 - Atlanta, Georgia
June 18, 2015 - London, United Kingdom
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Networked Economy Models Emerge Should Verizon Gain Approval To Acquire AOL

Networked Economy Models Emerge Should Verizon Gain Approval To Acquire AOL

Verizon Buys AOL

The Content, Network, And, Arms Dealer Come Together With Merger

The planned acquisition of AOL by Verizon for $4.4B is more than just the acquisition of the programmatic ad platform.  Verizon is making the big shift to disrupting digital businesses for a few reasons:

  1. Shift from selling products and services to delivering brand promises.  In order to deliver on their brand promise they need to deliver at the smallest increment of an ad. This requires new programmatic ad technology that Verizon doesn’t have nor can they scale up on their own.
  2.  Enter the battle for mass personalization at scale. The goal – deliver continuity of experience across ubiquitous channels.  Using context from location data, role, relationship, time, sentiment, and business process.  The additional context signals improve the ability to deliver on right time relevancy.
  3. Build on the content strategy at Huffpo.  Use content and context to improve audience segmentation and targeting.

Bottom Line: Verizon Wants To Build A Verticalized Network Economy

This is the new future where the content (Huffpo), network (Verizon) and arms dealer/ technology (AOL) come together.

The Complete 10 Lessons Learned From Disrupting Digital Business

For those attending the full keynotes and book tours, you’ll get the complete session and in many cases a copied of a signed booked.   For those following virtually, I’ve provided the slimmed down slide share deck for your use.

You now have the 10 lessons learned to disrupt digital business in your hands. You can take this information and change the world in front of you or choose to sit on the knowledge as the world passes you by and digital darwinism consumes your organization.

I trust you will do the right thing. And when you want some company, come join us as a client at Constellation Research where we’re not afraid of the future and the art of the possible.


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