Results

IoT; Data Flow Management – the science of getting real value from IoT Data

IoT; Data Flow Management – the science of getting real value from IoT Data

The Business case for the Internet of Things -- indeed for everything becoming network connected -- lies in the positive outcomes enabled by leveraging the data collected from the instrumentation of the business as a whole. Its not just about collecting more data from existing applications, it’s about being able to obtain data in new ways. The combination of this new data and traditional analytics is expected to add Business value via ‘Insights’ that come from marring these two, previously isolated data sets, in real-time. Robust Data Flow management is required to handle the veracity, velocity, variety, and volume of IoT Data Streams when combining them with Insight Analytics.

Research report now available: The Foundational Elements for the Internet of Things (IoT)

When a canteen table gets knocked over triggering the response for a member of the canteen staff to go and pick it up that’s a real-time Event, requiring one type of “intelligent response” in the moment, and an additional action to add that data point to a data store, such that it’s available to existing analytics applications. In comparison an Insight is when the canteen manager uses an analytic application to understand that the same table gets knocked over when ever the queue exceeds 26 people. This combination of data at rest, as well as data in motion leads to positive business outcomes, both in the moment and over long term operations.

To achieve the above Event notification merely requires a simple IoT sensor attached to the table to send a report to a pre defined device that is able to affect the “in the moment fix” for an overturned table (perhaps notifying nearby canteen staff’s mobile devices). The Insight from relating together multiple data reports concerning the table being knocked over requires Data Flow Management with Insight Analytics to produce this type of new, enhanced value.

IoT Data Flow management might be considered the Internet equivalent of the IT Messaging Bus, which provides similar capabilities in the sense of distributing data, but in the diametrically opposed environment of Internet architecture versus the traditional “stove-piped” per-application architecture. This “Internet architecture” consists of non-deterministic,  loosely-coupled, stateless data flows that require a degree of managed “flow” towards dynamic, rule-based, and analytic-driven delivery.

IoT Data Flow Management is by definition a complex activity and can involve many physical “things” as well as other more ephemeral information systems.. The following example will attempt to shed light on just how varied the set of constituents may be in a typical IoT solution Data Flow solution. 

In this case the defined Business Value outcome is increased production levels achieved by focusing on factory production machines, (see previous blog defining three outcomes Machine, Process and People), specifically via an IoT connected Plastic Injection Molder. Although the Plastic Injection Molder is the single most important and critical factory production asset, it must be considered as part of the production line operation which includes the Plastic Kibbler machine which grinds plastic waste to feed the Molder with raw material, and the Carton Maker which prepares the cartons into which the output is packed.

The factory production manager will wish to increase the precision and accuracy of monitoring the Molder to discover settings for optimum speed and efficiency. Any increases in output require increased production in both cartons and kibbled plastic raw material, leading in turn to a similar efficiency exercise with the other two machines. The factory production manager will need to use all three sets of IoT/IIoT data to establish the optimum production speed that balances the capabilities of all three machines at an optimized setting.

Though Machine operational efficiency is the business value that will be measured, people are also heavily engaged in real time management of the optimization.  A further Data Flow must connect to these processes in order to enable them to engage with operational enterprise impacts.

Changes in production levels need to be matched by supporting activities carried out through the ERP IT based operations too; Purchasing will need to increase call offs inline with increased consumption of raw materials; Production Planning will need to update its data on production rates to reflect in new planning schedules; Sales may be able to offer reduced lead times, better pricing and responsiveness to customers.

IoT Data Flows create a new level of connected and integrated Enterprises linking what is popularly called Front, and Back Office with Industrial Operations into a true Digital, or Smart Enterprise.

Previous blogs in this series have defined how various other elements in the connected environment, as well as in the connected enterprise work. ‘Fog Computing’ with Network Integration Groups enables complex Groupings of sensors, gateways and platforms. Sensor Alignment/Asset Mapping at the sensor deployment stage is required to discover/align the legacy data and provide graphic positioning information on sensors. Data Flow and Insight Analytics is the final building block over these technologies and supports the sharing of IoT/IIoT data and its flow between each of the three domains of Machines, Process and People systems.

Data Flow Management operates to monitor and switch data flows at high speed accordingly to both rules and outcomes for solutions were more than simple direct sensor to reporting connections are required. Understanding what and how to deliver Outcomes leads into the complexity of recognizing Insights together with how this requires a flow to be switched.

The diagram below shows all the elements of an IoT/IIoT architecture to connect sensors to the domains, Machine, Process and People; each of which has different technology as well as a leading technology vendor with a solution Platform. In the diagram this is shown as Salesforce, SAP and GE providing Platforms to manage and integrate IoT into their area of expertise. Each vendor also provides sophisticated analytics that require being fed the ‘right’ Data Flows from which they can provide powerful Business valuable Insights. It is this ‘tangential data’ that can provide the inputs that are of the greatest value in producing ‘Insights’.

Note that this diagram deliberately omits the usual use of arrows to show connectivity as all elements and groupings function as part of a common shared Internet networking environment. The Network itself is responsible for more than straight forward connectivity, the network must add a significant additional set of capabilities to be able to determine what may be connected to what and under what conditions, (see again Fog Computing previous blog).

Adding an example of an ‘Insight’ to the Machine production example above helps understanding what Data Flow Management and Insight Analytics has the power to introduce. The factory production manager gains the Insight that on each Thursday afternoon there is a regular drop in production speed on the Plastic Molder due to a shortage of raw material from the Plastic Kibbler. At the same time the Kibbler Machine slows down due to the built up of output raw material at the same time. The situation has occurred up to three times on Thursday afternoons for periods of less than fifteen minutes each time. Other data is appended from the same time period, including the indication that the forklift transporting raw material between the two machines has been out of its working area.

IoT/IIoT provides the data in support of the truism ‘you can only manage what you can measure’, but the real breakthroughs come from non-obvious tangential data alignments through new types of analysis coupled to IoT/IIoT Data Flows.

Switching the focus to the forklift truck driver rather than the machine operator reveals that on Tuesday afternoon the truck is called away to unload a particular contractor’s truck that requires a forklift with an extending carriage. The forklift providing the transport of materials between the Kibbler and the Molder is the only forklift on site with an extending carriage. Identification of the real issue to be addressed, which is no way directly associated with the symptoms shown of slow down in production at the Molder, would be a good example of key Insight benefit.

The central group of functions in the diagram described as Smart IOT Service Management contains three specific tasks that relate to the so-called ‘final mile’ challenge of IoT/IIoT. This is the mass scale challenge of connecting, identifying, collating and forwarding useful data in a useable manner to authorized Platforms such as those of Salesforce, SAP, and GE. As the role of Sensor Alignment and Asset Mapping has already been discussed the focus will be on the Data Flow Management and Insight Analytics.

Flow Data Management coupled to Insights Analytics is is a new specialized area of technology emerging in response to the high growth IoT/IIoT market place. As such it needs not only products and methodologies but also terminology to describe its new and unique manner of defining Data Flows together with an Open Source development environment and tools.

flowthings.io is a leading startup in Data Flow management, as defined above, defining their mission as; ‘the rapid creation of scalable solutions for real time data collection, complex event processing, and data delivery’.

Their website offers a set of Application Program Interfaces (APIs) to allow Developers to create scalable solutions that require complex combinations of; Real Time Data Ingestion, Complex Event Processing, Integration of Analytics, Big Data, and Knowledge systems, as well as Real Time Data Sharing across organizational boundaries. All of which are available via REST, MQTT, Webhook, and WebSockets protocols. For those serious interested in IoT/IIoT solutions building around ecosystems and enterprise wide sharing of IoT /IIoT data including intelligent distribution of data, a more detailed study of their web site is a recommended action.

The Business value of any IoT/IIoT deployment rests solely with the ability to use the resulting data to create a new level and type of detailed understanding of real time events and activities. To reach that value requires ‘final mile’ integration of Data Flows, and Insightful Outcomes from all available sensor sources with intelligent distribution to Technology vendors Platforms that will provide determination of actions. It is unlikely that any technology vender focused on delivering in their Business focus area, (machine, process, people), with the technology required will look to address ‘final mile’ Data Flow integration for a considerable period, and even then it will need to be provided in an Open Source format.

Research report now available: The Foundational Elements for the Internet of Things (IoT)

Data to Decisions Future of Work Innovation & Product-led Growth New C-Suite Tech Optimization

Seven Trends Influencing the Future of HCM

Seven Trends Influencing the Future of HCM

New technologies and changing demographics fundamentally change the workplace. My newest report, "Inside The Future of HCM",  helps you adapt to the ever-changing work paradigm by identifying the forces shaping the future of Human Capital Management. 

This report identifies seven trends influencing the Future of HCM. 

Seven Trends Influencing the Future of HCM

 State of HCM Constellation Research

HCM in 2015 Must Address Human Talent's Role in Digital Transformation 

Organizations should embrace the fundamental change that new technologies and changing demographics affect on the the workforce by using the shift as an agent of digital transformation. Constellation recommends organizations prepare their systems and people for digital transformation with six actions: 

  1. Understand your employee demographics
  2. Define your strategic direction
  3. Plan people needs for the next five years 
  4. More included in full report

The report snapshot and table of contents is available for download. 

DOWNLOAD SNAPSHOT
Future of Work Tech Optimization Next-Generation Customer Experience Digital Safety, Privacy & Cybersecurity Data to Decisions HCM HR Employee Experience AI Analytics Automation CX EX Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership Chief People Officer Chief Information Officer Chief Customer Officer Chief Human Resources Officer

First Take - Ultimate HCM UltiConnect Day #1 Keynote

First Take - Ultimate HCM UltiConnect Day #1 Keynote

We have the opportunity to attend Ultimate Software’s user conference #UltiConnect in Las Vegas. The conference is well attended, with a record 2400 attendees. 
 

So let’s look at the top 3 takeaways

Ultimate and NetSuite partner – This certainly came as a surprise – but as NetSuite CEO Zach Nelson and Ultimate CTO Adam Rogers positioned it – it’s all about helping customers to be more successful. And vendor built integration is actually highly valued by enterprises. So a good partnership for both vendors – we will now have to dive more into the details. It also questions what this partnership means for the Oracle / NetSuite HCM partnership (read here) and the TribeHR positioning of NetSuite (here are my acquisition notes). It certainly means that NetSuite has realized that to stay competitive in the HCM market – more investment is needed than the vendor may want to put in today – and so the team at NetSuite decided to partner. (And here is my SuiteWorld event report).
 
Adam Rogers open UltiConnect
Roadmap – Ultimate shared the roadmap plans for 2016 and we need to look more into a lot of details – but it looks like the heavy hitters are a new Workforce Management solution, more global capabilities (UltiPro just added German and Dutch), Payroll enhancements, and more integration and configuration capabilities. 
 
UltimatePro 2016 Roadmap

Analytics – Ultimate is no exception at putting more ‘real’ analytics into HCM. It was great to see Rogers starting with analytic functionalities being the first to list on new functionalities recently added. And equally analytics are the key additions Ultimate plans to add to its Talent Management capabilities in 2015 / 2016 as Cecile Alper Leroux shared.
 
And the beyond 2016 UltPro Roadmap

MyPOV

A great start of Ultimate’s UltiConnect conference – more meetings and briefings to follow today – so stay tuned for the event report.


No time to read - check out my Meerkat capture of the product highlights: 
 
 


More on Ultimate from me:
  • Event Report - Ultimate's UltiConnect - Off to a great start, but the road(map) is long - read here.
  • First Take – 3 Key Takeaways from Ultimate’s UltiConnect Conference Day 1 keynote – read here.
More on NetSuite here:
  • Event Report - NetSuite powers on with targeted innovation - read here
  • Why NetSuite acquired TribeHR - read here
  • Act III the cloud changes everything - Oracle and NetSuite with a touche of Deloitte - read here
  • Act III and final day - A tale of two conferences - Sapphire and SuiteWorld - read here
  • The middle day - 2 keynotes and press releases - Sapphire and SuiteWorld - read here
  • A tale of 2 keynotes and press releases - Sapphire and SuiteWorld - read here
Find more coverage on the Constellation Research website here.
 
Future of Work Data to Decisions Innovation & Product-led Growth New C-Suite Sales Marketing Next-Generation Customer Experience Digital Safety, Privacy & Cybersecurity Tech Optimization User Conference Oracle ADP SuccessFactors workday SAP AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR Chief People Officer Chief Information Officer Chief Technology Officer Chief Customer Officer Chief Human Resources Officer Chief Information Security Officer Chief Data Officer

Event Report - ADP Meeting of the Minds - It’s all coming together for ADP in 2015 - product wise

Event Report - ADP Meeting of the Minds - It’s all coming together for ADP in 2015 - product wise

We had the opportunity to attend the 2015 edition of ADP’s Meeting of the Minds user conference, which is targeted to the large enterprise customers of ADP. The conference was very well attended, with over 1500+ client participants from over 700+ customers. The event took place in Nashville at the Gaylord Opryland Hotel – a definitive alternative to the Las Vegas and Orlando hotels.
 


 

Here are my top 3 takeaways from the conference (and checkout my First Take of Day #1 here):

Stay the course - While last year’s MOTM (read here) was all about ADP laying out the roadmap to a better future for its customers, with innovations around mobile and the paycheck and a beautiful new user interface (UI) - this year’s MOTM was all about delivery record and staying the course. As mentioned earlier, ADP did a good job in the opening keynote showing how the vendor announced innovations around ACA, Analytics and UI and has delivered on them: Each of the three areas was shown with live and video testimonial – nothing is better than hearing it straight from a customer. And the references were authentic, convincing - and most unusual for the traditional customers of the ‘old’ ADP – excited about what they are using and have rolled out. 


 
 
 
 
 
 
All 4 ADP Businesses with key stats

Affordable Care Act (ACA) - No surprise - ADP has delivered on its ACA announcements, wrapped into the ‘Health Compliance’ product. The screens and system are well designed, easy to use and when talking to practitioners they liked them and said they very helpful in day to day operations. What remains clear is that the average large enterprise is still in the process of making sense of the ACA and its implementation, with whole customer delegations visiting MOTM for the whole purpose of better understanding the ACA. At the same time it became clear during the conference what high level of distraction this is for enterprises and to what large amount it takes their attention and resources away from ultimately more strategic topics, like people development, talent management etc.
 
Screenshot of ADP Health Compliance Portal

All coming together in 2015 - Another insight was that things are coming together for ADP in the next two quarters. The vendor did not say it as explicitly in the keynotes as they could have / should have (or I may have missed it) - but all the work around the new UI, creating a middleware platform, encapsulating APIs is coming to a conclusion with the ADP fall releases. And coming to an end of a 10+ years journey, with a number of product launches and an even greater number of acquisitions during that time - it is a major achievement that ADP customers can now use almost all of ADP HCM functionality in a single, modern UI. IT teams, partners and consultants will appreciate a single API based architecture. And with developer.adp.com and marketplace.adp.com, ADP has done a lot of progressive steps, uncharacteristic of the ADP of old - to make all technical work around its products significantly easier. So 2015 is a key year from ADP from a product perspective, time for customers to notice.
 
Camby shows new Manager Portal
 

Analyst Tidbits

  • Data Cloud - ADP shared its new Data Cloud offering, and it the latest effort of the vendor to bring business intelligence to both business users and HR professionals. ADP has built an attractive front end and even more importantly has changed the backend of the system to a modern Hadoop enabled architecture. And it is open for non HR data - which is key to really understand performance – right from the first version. Even more importantly the system is ready for more relevant (and interesting) ‘real’ analytics use case. 
Masiero presents Cloud Stats
  • Global - ADP keeps investing into its global capabilities bringing together its GlobalView and Streamline products even more. Today ADP addresses 95%+ of multinational employees, pays 11M global employees and offers payroll in 104 countries. 
 
  • Developer.adp.com - ADP debuted the site last year - but either I missed the expansion then – or it has done much more to make it easier for developers from 3rd parties to understand and use its APIs. An example other vendors should take note of. 
Screenshot from dp.developer.com - Payroll APIs
 
  • New Head of Product - Last year long tenured CIO Michael Capone left ADP, and recently ADP appointed long term veteran Stuart Sackman to be the new Head of Product. We had the chance to meet with Sackman, he shared his plans for the development organization and we can say from our first impression that product development is in good hands. Also good to see that the ‘new’ ADP got rid of the ‘CIO’ title, and ‘Product’ has made its way into Sackman’s title. Sackman’s last responsibility was ADP’s Multinational Solutions business and it’s good to see an executive at the helm of products who understands globalization first hand. But Sackman has been almost ‘everywhere’ during his 22+ career at ADP – so good for ADP to have a product leader who knows all facets of the ADP business.
 

MyPOV

It easily gets seen as ‘boring’ from an analyst perspective if no major new announcements are being made, but as a former product developer, I appreciate the steady state, as this is when good things happen for customers, as ultimately value is being created. Good software is like wine, it takes time to mature, and ADP is on track to bring its innovations across its vast product suite. Gone will be the days of inconsistent UIs that troubled users, different architectures that hampered consultants and irritated IT professionals – so with all major product issues being addressed, it’s time for the ADP leadership to consider more bold moves on the go to market side.

I had the chance to ask CEO Carlos Rodriguez where he wants to see ADP in 3 years from now. In his candid character Rodriguez answered that he would like to see more product unification, the vendor finding ways to lower its cost base and continuing the visons of technology enabled services, with the emphasis a little more on the ‘T’ than on the ‘S’. Overall a very candid and fair assessment in my view.

The key developments to watch with ADP is no longer if ADP can build a great and competitive product, but if ADP can change its market image from payroll / compliance to overall HCM player. This is a significant marketing positioning challenge that not only needs heavy lifting in marketing, but also in sales, delivery and the partner ecosystem. When ADP stresses more of the ‘T’ in technology enabled services, it may not as well be able to partner with almost any player in the HCM market as it does today – but may rough some feathers as ADP’s ambition is more than being a payroll / compliance vendor / provider. When the executive team starts that process and with how much pressure on the gas pedal, will be something we will follow keenly. For the longest time ADP’s issues have been around product, but those times are clearly becoming part of its history. Exciting times ahead for ADP customers, prospects, partners and ADP employees. Tough decision with delicate timing for Rodriguez and team.


 
More on ADP
 
  • First Take - ADP Meeting of the Minds - Day #1 Keynote - read here
  • Progress Report - ADP shows great vision, delivers product innovation - now it needs adoption - read here
  • Site Visit - ADP's new innovation lab in Chelsea - read here
  • News Analysis - ADP announces Spin-Off plans for Dealer Services, sharpens ADP's focus on HCM - read here.
  • Event Report - ADP's Meeting of the Minds - ADP has made up its mind (almost) - customers not yet - read here.
  • First take - 3 Key Takeaways from ADP's Meeting of the Minds Conference Day 1 Keynote - read here.
  • ADP innovates with with verve and good timing – read here.
 
And  more on the importance of the paycheck for HCM:
 
  • Could the paycheck re-invent HCM – yes it can – read here.
  • And suddenly, payroll matters again! Read here.

Find more coverage on the Constellation Research website here.
Future of Work Next-Generation Customer Experience Revenue & Growth Effectiveness Data to Decisions Innovation & Product-led Growth New C-Suite Sales Marketing Digital Safety, Privacy & Cybersecurity Tech Optimization Oracle ADP SuccessFactors workday SAP AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR Chief People Officer Chief Information Officer Chief Customer Officer Chief Human Resources Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer

Event Report: Inside The Apple #SpringForward Event

Event Report: Inside The Apple #SpringForward Event

Apple Event Announcements Shows Continued Progression In The Digital Lifestyle

The Spring Forward Apple event at Yuerba Buena gardens brought forth a slew of major announcements that pointed to the continued build out of the Steve Jobs "Star Trek" road map.
Figure 1. Tim Cook welcomes the crowd at the #SpringForward event

@apple @tim_cook #appleevent

The analysis of key announcements include:

  • Growth in Apple Stores in China . The event kicked off with a touching video of the latest Apple store opening in China. The Hangzhou West Lake store is the 18th in China and strategically located in one of the hottest shopping areas. Tim Cook emphasized the commitment to adding more stores in China. Point of View (POV): Apple's aggressive move to build out China makes perfect sense in not only combating the piracy of fake Apple stores, but also creating an opportunity to build a direct customer experience with the fastest growing global market. In a conversation with someone familiar with Apple's privacy efforts, there may be thousands of workers who believe they work at an Apple store but in fact do not. The real Apple stores will most definitely help combat the fake ones. Moreover, Apple is under-represented in coverage in the number of stores per potential buyer.
  • HBO distribution agreement with Apple TV. One of the surprises was the HBO Now limited exclusive arrangement with Apple. The service is set to be offered at $15 per month. In addition, Apple announced a price cut on Apple TV to $69 per box. (POV): Just in time for Game of Thrones, the direct to consumer streaming video service showed how the content producers intend to by pass the middlemen. Constellation expects other direct digital distribution deals to emerge. However, the market can expect more blurring between technology providers, content producers, and distribution networks. As for Apple TV, expect a new one to replace the outdated 2012 technology. Reliable sources predict the announcement as early as the Worldwide Developers conference in June.
  • New Retina Macbook. The new device sports a two pound design point, 13.1 mm thickness, Intel Core-M processor, fan-less design, all day battery, new butterfly keyboard, Force Touch trackpad, and USB Type C port. Available for sale April 10th, the Retina Macbook will come in three colors: gold, silver, and space gray. (POV): The first impression of the new Macbook was the weight. At half a pound heavier than an iPad 3, the device seemed light as a feather. Typing on the new Macbook keyboard quickly brought back memories of a great IBM Selectric feel. The specialized butterfly mechanism which replaced the old scissor keyboard produced a pleasurable sensory experience. Despite the slower clock speed at 1.1 GHz to 1.3GHZ, the device serves its purpose as a light-weight easy to use laptop .
  • Apple Research Kit. The new open source software framework helps researchers create apps that collect data for medical research while enabling opt in permissions on sharing that data with privacy controls in tact. Five apps available include Asthma Health by Mount Sinai - Download, GlucoSuccess - Download, MyHeart Counts - Download, Parkinson mPower - Download, and Share the Journey - Download (POV): The move to create Research Kit provides a complement to Health Kit. Even those who use Android devices can utilize the framework. Researchers now have a platform to address the two biggest issues - low sample sizes and poor normalization of data collection. Partnerships with global research institutions help cement the role Apple has in serving as a catalyst and nexus for medical research.
  • Apple Watch. The much anticipated event was the launch of Apple's newest product line. The watch is available in three tiers Apple Watch Sport ($349 to $399), Apple Watch ($549 to $1100) and Apple Watch Edition ($10,000 to $17,000). As the first smart watch to use Apple Pay, users can use NFC for payments. The watch also sports a haptic feedback interface (Taptic Engine), digital touch direct communication, and magnetic charging cable. A key use will be fitness apps which tack into the accelerometer, heart rate, and estimated calorie burn. (POV): Despite the slew of smart watch announcements at Mobile World Congress, few consumers and industry watchers showed interest in competitors ahead of the Apple Watch launch. Digital Touch provided both an intuitive and unique user experience. The ability to rapidly share was the key feature. A key area to watch will be how quickly developers rush to provide new apps and build out this new platform. After year's of not wearing a watch, will this be the catalyst to drive watch adoption? This remains a wait and see.

 

Figure 2. The Scene From the #AppleEvent at Yuerba Buena Gardens

<iframe align=center src=http://www.flickr.com/slideShow/index.gne?user_id=35408001@N04&set_id=72157651472657421&detail=yes frameBorder="0" scrolling=no width="640" height="480"></iframe>

The Bottom Line: Choosing What Not To Do Remains Apple's Core Strategy

Given the massive resources Apple has at its disposal, including almost $180B, and a massive patent trove, Apple's shown great discipline in the core tenant of strategy - deciding what not to do. Apple has successfully expanded its networked economy that spans content, technology enablement, and direct to consumer distribution. Building on a trusted platform, the advancements in continuity of experience, digital life style services based on trusted identity, and a value exchange system rivaled to none, show how the Apple strategy is paying off for not only consumers, but also those who expect the art of the possible to come to life.

Your POV.

Ready for a watch from Apple, research kit, and the new Macbook? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:
  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Resources

Reprints

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt. Copyright © 2001 -2014 R Wang and Insider Associates, LLC All rights reserved. Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Customer Experience
New C-Suite Marketing Transformation Tech Optimization Next-Generation Customer Experience Sales Marketing Data to Decisions Innovation & Product-led Growth Revenue & Growth Effectiveness Future of Work SoftwareInsider 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 Leadership Marketing B2B B2C CX Customer Experience EX Employee Experience Growth eCommerce Social Customer Service Content Management business HR HCM finance M&A Chief Customer Officer Chief Information Officer Chief Marketing Officer Chief Digital Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer Chief Executive Officer Chief Analytics Officer Chief Financial Officer Chief Operating Officer Chief Revenue Officer Chief Experience Officer Chief People Officer Chief Human Resources Officer

News Analysis - Pivotal makes CloudFoundry more about multi-cloud

News Analysis - Pivotal makes CloudFoundry more about multi-cloud

On March 24th Pivotal announced that it will support deployments to Amazon Web Services (AWS) per ‘one click’ from its Cloud Foundry product.
 
 

So let’s dissect the press release in the usual news analysis format – the press released can be found here:

SAN FRANCISCO – March 24, 2015 – ​Pivotal​®, the creators of Cloud Foundry®, today announced that it will provide supported access to Pivotal Web Services, which includes cloud infrastructure, to enterprise subscription customers of ​Pivotal Cloud Foundry​®, the company’s cloud native application platform. Pivotal Cloud Foundry now includes one-click Amazon Web Services (AWS) installation integration, delivering Amazon customers the simplest path to their own dedicated Cloud Foundry platform on AWS. With today’s news, the industry’s ​fastest growing open source product​ ever extends its hybrid cloud offering with enterprise integration for hosted, public, and private clouds.

 
Pivotal Momentum in 2014

MyPOV – This is an important step for Cloud Foundry customers, who – after building their next generation applications in the product want to deploy these applications to different cloud platforms. With AWS Pivotal picked the obvious market leader for public cloud and has taken an important first step in the direction of being able to deploy Cloud Foundry built application to more cloud infrastructures. It will be interesting to see what Pivotal’s next steps will be, though likely it will be in the direction of OpenStack.

“With the latest Pivotal Cloud Foundry release, Pivotal becomes the first major middleware vendor to include managed public cloud capacity in a software subscription at no additional cost,” said James Watters, vice president and general manager, Cloud Platform Group at Pivotal. “By offering hosted public cloud along with dedicated self-install on either public or private clouds, Pivotal Cloud Foundry provides the instant-on affordable capacity ​Line of Business (LOB)​ executives need with the robust security and automation features IT can also bring to private clouds. With today’s release, LOB and IT can finally agree on a single platform.”

MyPOV – If Pivotal can create piece for LOB vs IT discussions and conflicts of interest remains to be seen – but this step gives Cloud Foundry customers more choices of deployment, and more choice gives more flexibility. And it is this flexibility customers need and want to deploy their next generation applications.

Delivering the One Cloud Platform Both Business and IT Can Agree On
LOB executives have championed the use of Pivotal’s hosted services, often in combination with Pivotal Labs agile development, to quickly deliver new digital products. IT executives value Pivotal Cloud Foundry’s ability to also run on private infrastructure. With our new hybrid cloud ready subscriptions LOB developers can start immediately on AWS while their private cloud build-outs complete, or run there entirely.

 

MyPOV – Pivotal raises an interesting point here – that enterprises can win time, use e.g. AWS for development and test – while the private cloud gets ramped up. Certainly a possible scenario – but what we have found in practice is, that for most next generation application use cases, enterprises cannot pull these apps back into private cloud as they need the elasticity of the public cloud to successfully run them.

Delivering AWS Customers the Best Path to Cloud Foundry
Today’s release also brings AWS virtual appliance support for Pivotal Cloud Foundry. With this feature, AWS customers can now natively deploy Cloud Foundry applications in hours on their AWS infrastructure. This complete hybrid cloud support lets operators migrate Cloud Foundry applications freely between public and private clouds, regardless of their underlying infrastructure.


MyPOV – This is a key value add with this Cloud Foundry release. The next logical question will be if Cloud Foundry applications can be logically partitioned across private and public cloud, allowing high utilization for private cloud resources and ‘bursting’ to the public cloud as needed. But one step at the time. First you need the capabilities of this release, or you need to walk before you can run.

Delivering Pivotal Cloud Foundry with the Cloud Infrastructure Included
Today, Pivotal customers can setup Pivotal Cloud Foundry under their own AWS account, or let Pivotal manage an AWS instance on their behalf by taking advantage of our new Pivotal Web Services with Enterprise Support. This new edition of Pivotal Cloud Foundry offers hosted application instances under a customer’s existing license at no extra cost. Pivotal Web Services is ideal for rapid deployments and avoids the administrative overhead of managing a public cloud infrastructure.
 
Pivotal Multi-Cloud Support Reality & Plans
MyPOV – Again Pivotal gives Cloud Foundry customers choice and choice is a good thing for customers. Allowing customers to either setup Cloud Foundry on their own account or have Pivotal do that for them gives customers more deployment choices. It will be interesting to see if Pivotal can support that duality for the next public cloud infrastructures that it will support. By then we will know also which deployment customers prefer overall or for which kind of projects.

Overall MyPOV

As easy PaaS vendors have made it for enterprises to build next generation application, it remains still hard for them to deploy these applications. Cloud infrastructure evolves rapidly and for enterprises to stay on top of them all the way to deploying their applications efficiently – is a huge challenge. Pivotal’s move makes it easier for enterprises to focus on their applications and how they can transform their business in the age of globalization and digital disruption – which is already a lot for enterprises to handle.

For Pivotal it means that the vendor now needs to create adoption and then deliver further public cloud deployment options. Issuing a roadmap on the next milestones is always something welcome by prospects, customers and the ecosystem. But as mentioned before – one step after another – you need to stand before you can walk, walk before you can run. Congrats to Pivotal for a key move making new PaaS investments deployed more easily to the (public) cloud.


More on Pivotal
 
  • News Analysis - Pivotal pivots to OpenSource and Hortonworks - Or: OpenSource keeps winning - read here

More on NextGeneration Applications::
 
  • Progress Report - Cloudera is all in with Hadoop - now off to verticals - read here
  • First Take - SAP Cloud for Planning - The next spreadsheet killer is off to a good start - read here
  • Market Move - Oracle buys Datalogix - moves into DaaS - read here
  • News Analysis - SAP commits to CloudFoundry and OpenStack - Key Steps - but what is the direction? Read here
  • Event Report - MongoDB is a showcase for the power of Open Source in the enterprise - read here
  • Musings - A manifesto: What are 'true' analytics? Read here
  • Future of Work - One Spreadsheet at the time - Informatica Springbok - read here
  • Musings - The Era of the no-design Database - Read here
  • Mendix - the other path to build software - read here
  • Musings - Time to ditch your datawarehouse .... - Read here
Find more coverage on the Constellation Research website here.
Tech Optimization Innovation & Product-led Growth Data to Decisions Future of Work Digital Safety, Privacy & Cybersecurity New C-Suite salesforce IBM amazon Oracle Microsoft SaaS PaaS IaaS Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP CCaaS UCaaS Collaboration Enterprise Service Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer Chief Digital Officer Chief Analytics Officer Chief Executive Officer Chief Operating Officer

What do privacy's critics have to hide?

What do privacy's critics have to hide?

Yawn. Alexander Nazaryan in Newsweek (March 22) has penned yet another tirade against privacy.

His column is all strawman. No one has ever said privacy is more important than other rights and interests. The infamous Right to be Forgotten is a case in point -- the recent European ruling is expressly about balancing competing interests, around privacy and public interest. All privacy rules and regulations, our intuitions and habits, all concede there may be over-riding factors in the mix.

So where on earth does the author and his editors get the following shrill taglines from?​

  • "You're 100% Wrong About Privacy"
  • "Our expectation of total online privacy is unrealistic and dangerous"
  • "Total privacy is a dangerous delusion".

It is so tiresome that we advocates have to keep correcting grotesque misrepresentations of our credo. The right to be let alone was recognised in American law 125 years ago, and was written into the UN International Covenant on Civil and Political Rights in 1966. Every generation witnesses again the rhetorical question "Is Privacy Dead?" (see Newsweek, 27 July 1970). The answer, after fifty years, is still "no". The very clear trend worldwide is towards more privacy regulation, not less.

Funnily enough, Nazaryan makes a case for privacy himself, when he reminds us by-the-by that "the feds do covertly collect data about us, often with the complicity of high-tech and telecom corporations" and that "any user of Google has to expect that his/her information will be used for commercial gain". Most reasonable people look to privacy to address such ugly imbalances!

Why are critics of privacy so coldly aggressive? If Nazaryan feels no harm comes from others seeing him searching porn, then we might all admire his confidence. But is it any of his business what the rest of us do in private? Or the government's business, or Google's?

Privacy is just a fundamental matter of restraint. People should only have their personal information exposed on a need-to-know basis. Individuals don't have to justify their desire for privacy! The onus must be on the watchers to justify their interests.

Why do Alexander Nazaryan and people of his ilk so despise privacy? I wonder what they have to hide?

Digital Safety, Privacy & Cybersecurity Security Zero Trust Chief Customer Officer Chief Information Officer Chief Information Security Officer Chief Privacy Officer

First Take - ADP Meeting of the Minds - Day #1 Keynote

First Take - ADP Meeting of the Minds - Day #1 Keynote

We are attending ADP’s Meeting of the Minds (MOTM) in Nashville. The conference is well attended, targeted at ADP’s North American national accounts, with over 1100 client attendees from over 550 clients.
 
 

My top three takeaways

No change in the vision – It was good to see that ADP CEO Carlos Rodriguez used the same slide to walk the audience through the ADP HCM vision. It spans from Recruiting to Retirement with a focus on client’s largest investment, challenge and opportunity – people. Keeping the vision stable is key for a number or reason – as customers need to understand and endorse it, product development takes time etc. so good to see.

 
2014 ADP Roadmap
ADP CEO Rodriguez with the 2015 ADP Roadmap
UI & Analytics – ADP made announcements in both the User Interface and Analytics space a year ago and did a good job following up with customer testimonials that it has delivered on these. The most impactful is probably the new practitioner user interface – exposing more of the new functionality ADP has created to the HR professionals. 
 
Cambern presents the (still WIP) Practitioner UI
New ways of analyzing data – Probably the biggest announcement was ADP Data Cloud – allowing to bring together both internal ADP and external data for better insights. ADP did not share technical details on the keynote – and you can bet we will dig deeper during the conference – but if ADP gets this right – it will make a huge impact for their customers.
Masiero introduced the ADP Data Cloud

MyPOV

A good kickoff for the MOTM conference – with a lot of time spend showing that ADP has delivered on its premises, always a good development. But also good to see that ADP is not stopping here – and continues to innovate. We will try to look into more of the announcements in the next days –stay tuned.
 
More on ADP
 
  • Progress Report - ADP shows great vision, delivers product innovation - now it needs adoption - read here
  • Site Visit - ADP's new innovation lab in Chelsea - read here
  • News Analysis - ADP announces Spin-Off plans for Dealer Services, sharpens ADP's focus on HCM - read here.
  • Event Report - ADP's Meeting of the Minds - ADP has made up its mind (almost) - customers not yet - read here.
  • First take - 3 Key Takeaways from ADP's Meeting of the Minds Conference Day 1 Keynote - read here.
  • ADP innovates with with verve and good timing – read here.
 
And  more on the importance of the paycheck for HCM:
 
  • Could the paycheck re-invent HCM – yes it can – read here.
  • And suddenly, payroll matters again! Read here.

Find more coverage on the Constellation Research website here.
2012, 2013, 2014 & 2015 (C) Holger Mueller - All Rights Reserved
Future of Work Next-Generation Customer Experience Revenue & Growth Effectiveness Data to Decisions Innovation & Product-led Growth New C-Suite Sales Marketing Digital Safety, Privacy & Cybersecurity Tech Optimization Oracle ADP SuccessFactors workday SAP AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR Chief People Officer Chief Customer Officer Chief Human Resources Officer Chief Technology Officer Chief Information Officer Chief Information Security Officer Chief Data Officer

Card Not Present fraud shows no sign of improving

Card Not Present fraud shows no sign of improving

The Australian Payments Clearing Association (APCA) releases card fraud statistics every six months for the preceding 12m period. Lockstep monitors these figures and plots the trend data. We got a bit too busy in 2014 and missed the last couple of APCA releases, so this blog is a catch up, summarising and analysing stats from calendar year 2013 and AU financial year 2014 (July 2013 to June 2014).

CNP trends pic to CY 2013
CNP trends pic to FY 2014



In the 12 months to June 2014,

  • Total card fraud rose by 22% to A$321 million
  • Card Not Present (CNP) fraud rose 27% to A$256 million
  • CNP fraud now represents 80% of all card fraud.

APCA is one of the major payments systems regulators in Australia. It has only ever had two consistent things to say about Card Not Present fraud. First, it reassures the public that CNP fraud is only rising because online shopping is rising, implying that it's really not a big deal. Second, APCA produces advice for shoppers and merchants to help them stay safe online.

I suppose that in the 1950s and 60s, when the road toll started rising dranatically and car makers we called on to improve safety, the auto industry might have played down that situation like APCA does with CNP fraud. "Of course the road toll is high" they might have said; "it's because so many people love driving!". Fraud is not a necessary part of online shopping; at some point payments regulators will have to tell us, as a matter of policy, what level of fraud they think is actually reasonable, and start to press the industry to take action. In absolute terms, CNP fraud has ballooned by a factor of 10 in the past eight years. The way it's going, annual online fraud might overtake the cost of car theft (currently $680 million) before 2020.

As for APCA's advice for shoppers to stay safe online, most of it is nearly useless. In their Christmas 2014 media release (PDF), APCA suggested:

Consumers can take simple steps to help stay safe when shopping online including:

  • Only providing their card details on secure websites - looking for the locked padlock.
  • Always keeping their PC security software up-to-date and doing a full scan often.

The truth is very few payment card details are stolen from websites or people's computers. Organised crime targets the databases of payment processors and big merchants, where they steal the details of tens of millions of cardholders at once. Four of the biggest ever known credit card breaches occurred in the last 18 months (Ref: DataLossDB):

    • 109,000,000 credit cards - Home Depot, September 2014
    • 110,000,000 credit cards - Target, December 2013
    • 145,000,000 credit cards - eBay, May 2014
    • 152,000,000 credit cards - Adobe, Oct 2013.

In its latest Data Breach Investigations Report, Verizon states that "2013 may be remembered as ... a year of transition to large-scale attacks on payment card systems".

Verizon DBIR 2014 Fig 11 Number of breaches per category over time


Verizon has plotted the trends in data breaches at different sources; it's very clear that servers (where the datsa is held) have always been the main target of cybercriminals, and are getting proportionally more attention year on year. Diagrag at right from Verizon Data Breach Investigations Report 2014.

So APCA's advice to look for website padlocks and keep anti-virus up-to-date - as important as that may be - won't do much at all to curb payment card theft or fraud. You might never have shopped online in your life, and still have your card details stolen, behind your back, at a department store breach.

Over the course of a dozen or more card fraud reports, APCA has had an on-again-off-again opinion of the credit card scheme's flagship CNP security measure, 3D Secure. In FY2011 (after CNP fraud went up 46%), APCA said "retailers should be looking at a 3D Secure solution for their online checkout". Then in their FY2012 media release, as losses kept increasing, they made no mention of 3D Secure at all.

Calendar year 2012 saw Australian CNP fraud fall for the first time ever, and APCA was back on the 3D Secure bandwagon, reporting that "The drop in CNP fraud can largely be attributed to an increase in the use of authentication tools such as MasterCard SecureCode and Verified by Visa, as well as dedicated fraud prevention tools."

Sadly, it seems 2012 was a blip. Online fraud for FY2014 (PDF) has returned to the long term trend. It's impossible to say what impact 3D Secure has really had in Australia, but penetration and consumer awareness of this technology remains low. It was surprising that APCA previously rushed to attribute a short-term drop in fraud to 3D Secure; that now seems overly optimistic, with CNP frauds continuing to mount after all.

In my view, it beggars belief the payments industry has yet to treat CNP fraud as seriously as it did skimming and carding. Technologically, CNP fraud is not a hard problem. It's just the digital equivalent of analogue skimming and carding, and it could be stopped just as effectively by using chips to protect cardholder data, just as they do in Card Present payments, whether by EMV card or NFC mobile devices.

In 2012, I published a short paper on this: Calling for a Uniform Approach to Card Fraud Offline and On (PDF).

Abstract

The credit card payments system is a paragon of standardisation. No other industry has such a strong history of driving and adopting uniform technologies, infrastructure and business processes. No matter where you keep a bank account, you can use a globally branded credit card to go shopping in almost every corner of the world. The universal Four Party settlement model, and a long-standing card standard that works the same with ATMs and merchant terminals everywhere underpin seamless convenience. So with this determination to facilitate trustworthy and supremely convenient spending in every corner of the earth, it's astonishing that the industry is still yet to standardise Internet payments. We settled on the EMV standard for in-store transactions, but online we use a wide range of confusing and largely ineffective security measures. As a result, Card Not Present (CNP) fraud is growing unchecked.

This article argues that all card payments should be properly secured using standardised hardware. In particular, CNP transactions should use the very same EMV chip and cryptography as do card present payments.

Digital Safety, Privacy & Cybersecurity Infosec Chief Information Officer

Plex – working hard to get their fill

Plex – working hard to get their fill

indexAnother week another analyst day…this time it was to Detroit and a meeting with Plex Systems. Between my attempts to discover where South Detroit was located and enjoying a great tour of the Sanders Fine Chocolate factory, I was able to spend an educational day and half with the Plex executive team. The time was well spent getting an update on where Plex ended up in 2014 and where they are heading for 2015. A few take aways:

Cloud remains the theme of the day. Plex continues to push and leverage the fact that they have been focused on delivering their solutions via the cloud since day one. That all their applications and solutions are 100% cloud focused. While the reality is that users are not 100% sold on going all in with cloud based applications, the tide continues to turn. By some estimates close to half of Chief Supply Chain officers are still hesitant about the value of the cloud. However it is our contention that much of that is due to only hearing terms like “multi-tenant,” “no version upgrades,” or “lower TCO” to describe the value of the cloud. There continues to be a gap in the market of solution providers demonstrating what NEW business models the cloud allows. The elasticity the cloud offers, the ability to quickly achieve network effects or even the fluidity the cloud offers need to be the reason to leverage the cloud. For example the ability for Plex to quickly get on line a factory gives their customers the necessary flexibility to make the business decisions necessary in the current manufacturing environments. The value of the cloud is in the new business models it allows the users of cloud applications to take advantage of, not simply that it will cost less than on premise. Plex has an advantage that they are fully focused on how the business models the cloud offers, but other vendors are quickly closing that gap.

Plex continues to get its house in order: What struck me from CEO Jason Blessing’s opening discussion was the pace at which they are ramping up quota carrying sales representatives. They have doubled the number of sales reps in 2014 from 2013 and plan to continue on that trajectory in 2015. But what is more important is their reorganization of the team. Separating the farmers from the hunters, as well as assigning a team to focus on the process industry, a new focus for Plex. I realize that at times banal items like number of sales reps is not as fun to discuss as new feature function, but the reality is I have yet to see a product that sells itself. You better have the boots on the ground to drive the revenue. Plex is also making continued investments in their R&D, more than doubling the amount invested year over year in 2014. What remains to be seen is can Plex hire the Screen Shot 2015-03-19 at 3.59.02 PMright people to their sales team and will their efforts in R&D keep pace with their renewed efforts in the customer acquisition side? Based on their domestic addressable market they should have plenty of targets to go after for their pipeline. But we will also keep an eye on their potential global expansion – where will Plex make their first true foray into the international markets? China, Germany or maybe India?

Is the portfolio ready for prime time? Plex’s approach to the market by offering a three level approach: full ERP, dual ERP or Hybrid ERP is just a fancy way of saying you can buy our full suite as a stand alone, use it in conjunction with existing ERP system or buy our point solutions. An underlying theme in the discussions was Plex’s move towards enhancing their overall solution portfolio but also starting to approach more sales opportunities with stand alone modules such as MES, Supplier quality, EDI or Inventory Management. This strategy resonates with what we believe the market has an appetite for. The days or major ERP overhauls are past, even if there continues to be disgruntled customers using large ERP solutions from the usual suspects. But point solution sales or tackling parts of the ERP puzzle will continue to be ripe. The challenge for Plex is around their portfolio. They mentioned many stand alone MES opportunities, but what about the other solutions. More importantly where does their product road map go from here? Whether they have more solutions to fill out their overall portfolio as well as sell as stand alone offerings. For example – warehouse management (WMS), forecasting and planning engines or even demand sensing analytical engines. Plex must be shrewd in their decision of where to invest moving forward.

Overall it feels as if bright days are ahead for Plex. The market opportunity is ripe, they have been building on their extensive experience in the discrete manufacturing space, demonstrate a dogged focus on making their customers all “happy ERP customers” and have a cohesive management team. However, they are approaching a stage where many companies begin to lose their way or hit the proverbial wall. It will be up to the executive team to continue to have a laser focus on their primary markets and ensure they are judicious with the development of solutions and applications that complement this strategy. Often companies begin to chase shadows and false hopes while trying to maintain their growth rate. They spend too much treasure and human resources in solutions that are too tangential to their core business or chase markets that are just beyond the reach of their core competencies.

Some will win and some will lose, it is up to Plex to be the former.

Resources: 

The State of Manufacturing

DOWNLOAD SNAPSHOT

Matrix Commerce Innovation & Product-led Growth Tech Optimization Future of Work Supply Chain Automation Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software IoT Blockchain ERP Leadership Collaboration M&A Chief Information Officer Chief Supply Chain Officer