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Happy New Year – some wishes for 2015

Happy New Year – some wishes for 2015

2015 Puzzle Piece Shows New Year's Festivities And Celebrations

Once again the inevitable is happening, our journey around the sun has almost come full circle. 2014 was an interesting year – of course for us soccer fans it was extra exciting with a World Cup, but I digress. As we head towards 2015 here are some wishes I have for our supply chains far and wide:

  • Better and more actionable data: Raise your hand if you are sick of hearing about big data…okay you can all put your hands down. This is not about the continued deluge of data, we all know that we are flush with data and with new technologies such as the Internet of Things (IoT) will only add to this wave of information. What we need to focus on, and achieve for our supply chains is more business data. Business data is the actionable information we can absorb, make a decision with and discard. Many of the CxOs I have spoken to this year, have pointed out that they know the information is out there, the
    Hey look...more "big data"

    Hey look…more “big data”

    issue they have is to identify and focus on the business data that their organizations can better leverage. This is no small task. It is easier to hoard mountains and mountains of data as opposed to be smart about which data to focus on and which pieces of information to lean on. Offerings from the likes of Cisco with their intercloud product provides a layer of intelligence to all that information flowing across our networks. Of course the need to do a better job of filtering and identifying that business information is vital…especially as “big data” only gets bigger. In 2015 let us hope that we become smarter about the types of data we lean on to be better with our supply chains – no easy task.

  • Continued harmonization of execution systems: The need to integrate WMS and TMS seems like a no-brainer, yet remains surprising that in many instances the systems have themselves remained in silos. It is telling that a supply chain vendor such as JDA only acquired a robust WMS solution when they merged with Red Prairie. But as more companies that are in the execution space look to not only add functionality but ensure full integration – even mega vendors like Oracle are working to add functionality such as yard management to their execution suite – one can hope that 2015 sees more of these strategic moves. The value for the end users is to have a faster and deeper visibility into the end to end execution process. For this reason, let us also hope that focused manufacturing service providers such as QAD and Plex also push out from within the factory four walls to include greater services in transportation and warehousing. Being able to monitor my entire execution process is the only way to start to eliminate the blind spots that constantly haunt our supply chains.
  • Smarter evolution of SMAC within all aspects of supply chain: What is SMAC? It isn’t what you talk on the basketball court. SMAC – Social Mobile Analytics Cloud. I look for a greater focus on the first two letters of SMAC for 2015. When it comes to analytics, supply chains have been working on ensuring we add greater layers of analytics and intelligence to our processes. This will only continue to be vital as we add…more data. As for the cloud, it continues to be an area of much debate for supply chains. By some studies, there remains a lot of skepticism when it comes to the cloud. And I understand why. It isn’t because the cloud is not a viable delivery mechanism for the tools and solutions we need to manage our supply chains, rather the business value has not been properly expressed. I am looking at you marketing and sales departments. Too often we lead with the lower total cost of ownership (TCO) or the ability to
    Decision making at the edge - at your finger tips.

    Decision making at the edge – at your finger tips.

    have access to the latest version of the software, rather than discuss why these features of the cloud open up new business models for supply chains. Smart vendors in 2015 will hone in on the business models the cloud empowers – not just lower TCO. But where 2015 holds more promise is with the social and mobile aspects of supply chain. Almost half of supply chain executives agree that social will play a vital role in their business, however less than 20% have any active strategy with social. I expect to see more partnerships such as the one between IBM and Twitter – to bring to the market solutions that these supply chain CxOs can lean on to take advantage of the nuggets that are in social. Finally 2015 will continue to see the importance of mobile in the supply chain. We already have witnessed how tablets and handhelds have impacted the factory floor, logistics, warehousing and within the store. But this is only the beginning. Smarter and more powerful devices will allow us to push decision making and control to the edges of the network. How solution providers tackle this new found power will be integral to how supply chains evolve in 2015.

I don’t think these are too much to ask of our supply chain users and vendors. Next year is an exciting one for new solutions and the continued evolution of existing technologies. But don’t we say that every year??

Happy New Year to you and your loved ones. See you on the other side!

Data to Decisions Matrix Commerce Innovation & Product-led Growth Supply Chain Automation Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software IoT Blockchain ERP Leadership Collaboration M&A Chief Supply Chain Officer

2014 HCM Highlights - Month by Month

2014 HCM Highlights - Month by Month

End of the year is a good time to review on what happened through the last 12 months – so I took a look at what made me blog about vendor events. Of course there are many other ways to look at this, but I guess the marketer in my brain looks at the timing and sequence of messages, where the calendar months play a role… there is only so much time in a year, for news, events and briefings. Layer that with acquisitions, which are not so well plannable like other events and it makes a busy year.
 
 
So here you go:
 

January

An easy choice, also because not much happens in January, but it is certainly Workday’s Release 21. Workday did a remarkable job on the new user interface, and moving the complete application must be a Herculean task – even though the vendor downplayed it. And as market leaders should, it started a year of UI renovation and innovation. Later in the year – just from the major vendors – we saw (in alphabetical order) remarkable UI progress with ADP, Infor, Oracle, SAP / SuccessFactors and Ultimate. The winner has been the HCM user that probably has the best user interface experience at its disposal – when you compare with the large ‘tectonic plates’ of enterprise software – Financials, CRM, Manufacturing, Purchasing. The consequence for vendors is that UIs stale faster than ever – once you had a 2-3 year break when you moved an application to a new UI, now 12 months makes a UI already look old and staled in some areas. The blog post on the Workday release can be found here.

February

Not so easy, as already a busier month – but at the end Oracle with its first HCM World conference wins. First of all remarkable as the vendor broke off a subset of enterprise software in a separate event. And Oracle showed commitment with both Mark Hurd and Larry Ellison speaking, and showing they understand HCM. And Oracle at the point had made enough progress with Fusion HCM to get attention. Kudos also to Oracle for being the first (and only) vendor in 2014 to let us – the analysts – play with their software: 20 or so analysts played with the simplified UI and got a better and more user centric insight than with any other vendor in 2014. Read my blog post here.
 

March

A pretty tough month to call on – but Ceridian make the cut of the most remarkable HCM event in March. Kudos goes to David Ossip and team to acknowledge what Ceridian was missing (mainly in the Talent Management space) and laying out a product development agenda for the next 48 months, reaching all the way into 2016. And with that Ceridian certainly contributed in Ultimate doing the same a month later, Oracle and SAP expanding their planning horizon, even ADP extending insight into the functional road way more ahead than usual. But only Ultimate matched the complete and detailed vision, something HCM buyers and users deserve and need to know to plan out their HCM roadmaps for the years to come. Vendors tend to forget how important the 2-3 year view for their clients is, so a great step in the right direction by Ceridian. Read my blog post here.
 

April

Again a pretty busy month, Ultimate’s user conference and the takeaways make my April cut as the key HCM event in April 2014. Ultimate matched insight till ‘roadmap’ complete to what Ceridian did in March, a move their user base very much welcomed. At this point UI innovation was no longer a surprise, but a necessity, given the success of Workday’s Release 21 from January (see above). But Ultimate also build and gained the important trust of customers and prospects to deliver to the roadmap with a new Onboarding module and Succession and Performance management being demoed. Last but not least Ultimate broke a first with (real) analytics (more hereon ‘real’ analytics) having shipped a retention predictor (anyone remember the 2011 HCM buzzword ‘flight risk’) and announcing a performance predictor. Read my blog post here.
 

May

One of the busiest months of the year, easily. Cornerstone makes the cut with its vision of unified Talent Management. With the vendor making clear that the ‘world does not need another core HR system’ and with that focus on purely Talent Management and doubling efforts in that area. No surprise, a new UI got traction and again ‘real’ analytics were hinted at, maybe already hinting at the later in the year acquisition of Evolv (mentioned in my weekly recap here) – showing how important analytics have become for HCM. And Cornerstone launched their Marketplace, one of the first (if not the first) HCM vendor to do so. Read the blog post here. Honorable mention and key as the reverse trend in the industry – Workday launches the long awaited Recruiting functionality – read here.
 

June

In a still very busy month – I was told June was when things slow down by industry veterans – but slower on HCM events – NGA HR makes the cut as the main event in June 2014. New focus under its new CEO Adel Al-Saleh is taking shape and if the vendor can deliver the majority of what it outlined as its ambition for 2015, then enterprises will have a very attractive BPO offering coming from NGA HR in 2015. The bigger questions in the market is – when will BPO pick up (again) – after the first wave of BPO euphoria 10+ years ago has fizzled and largely disappointed. But the value proposition of BPO with major trends like Globalization and aging workforce looming, remains very attractive to enterprises so it will be interesting to see what will happen in 2015. Read the blog post here.
 

July

Finally a more quiet month, and the prize goes easily to Hirevue announcing (and later in 2014) delivering its Insights analytical capability. And Hirevue did everything right – it is ‘real’ analytics, so it takes and action or makes recommendations. It is trained by the business user, creating buy in ownership and personalization to get off the ground. It also creates instant value by shipping with a global model, then refined to an industry, enterprise and potentially even to a specific position. And Insights learns and improves all the way during its usage. There is very little more an analyst can ask a vendor for building an analytical product in 2014 and Hirevue pretty much nailed it. Read my blog post here.
 

August

Also very quiet – but ended with a bang, Skillsoft acquiring SumTotal. It shows that though Cornerstone may succeed with a Talent Management only strategy, but for a Learning giant like Skillsoft, Learning was getting too small. Or at least for the new private equity owners. Not much has happened news wise since then – but than this can be a good sign - as it can be a sign of concern. 2015 will show how quickly the new vendor can go beyond Learning, the first (and maybe too soon) check-in at HR Tech in Las Vegas still showed slides of Learning and Talent Management vis a vis. Read my blog post here.
 

September

A very busy month – and the only one I could not find a clear winner, so the prize gets split between (alphabetical orders – as the avid reader knows) to ADP and SAP / SuccessFactors. 
 
Let’s start with ADP that faced the challenge to have 30 or so analysts in town for a yearly briefing and having to announce that long tome Product leader Michael Capone was leading. The way how ADP and all executives communicated this, was certainly school book A+ grade. But also on the product front ADP shows a lot of progress, rolling out its new benefits enrollment to mid-market clients and sharing a roadmap for 2015. There is a lot of new ideas and innovation at ADP, that most importantly are now followed up with first products in the market, not with 100s but Millions of customers. Read my blog post here.
 
And SAP / SuccessFactors had their user conference in Las Vegas, for the first time with the new leadership of Mike Ettling in place. A good passing the baton symbolic message with Lars Dalgaard, but SAP did not muster the same presence like e.g. Oracle did in February (e.g. Bill McDermott attended a pre event, and Robert Enslin opened for Ettling). But SAP had some key announcements in store – better roadmap sharing, services improvements and a renewed focus on Learning. Integrated Learning is a smart move by SAP, as it positions itself as the organic (or ‘unified’) learning provider vs. market foes like Oracle and Workday. But maybe I have missed it – the more detailed roadmap that was announced in Las Vegas, is not out yet. As I blogged – work remains to be done – read here.    
 

October

A super busy October had a number of HCM announcements – but the key happening was HR Tech in Las Vegas, under new leadership of Steve Boese, a great first event. True to what Constellation advises our customers, be disruptors, I decided not to keep my 30+ briefings with vendors quiet and a little bit to Twitter – but shared my takeaways of the briefings in the form of a short video. And it was widely and positively accepted – so I guess I need to repeat the same going forward – but for now checkout the takeaways of 30+ vendor briefings here. Needless to say, there is a lot of investment happening in the HCM space. Better stay on top of it as otherwise your enterprise may use sub optimal software.
 

November

Another busy November, as expected. The most important November 2014 announcement goes to Workday, making (real) analytics the main focus of the keynote at the Rising user conference. No enterprise vendor in the past has given even close that space for analytics, so definitively a pioneering act by Workday. And all vendors know that analytics has a lot of promise in the future – but kudos goes to Workday for being the first to give analytics that much space. But with that comes a lot of expectations for 2015, so it will be key to see how Workday will put the six announced analytical applications in action, both product and revenue wise.
 

December

As expected – a slow month – so I share my 2015 predictions and advice from the Constellation team post:

In the next ten years 10% to 20% of the North American and European workforce will retire. Leaders need to understand and prepare for this tremendous shift so performance remains steady as many of the workforce's highly skilled workers retire.

To ensure smooth a smooth transition, ensure your HCM software systems can accommodate a massive number of retirements, successions and career path developments, and new hires from external recruiting.

Constellation fully expects employment to be a sellers’ market going forward. People leaders should ensure their HCM systems facilitate employee motivation, engagement and retention, lest they lose their best employees to competitors. Read "Globalization, HR, and Business Model Success". Additional cloud HR case studies here and here.

 

MyPOV

A really busy year in 2014 – but don’t count on 2015 being any slower. There are too many very talented startups that are likely going to get a chunk out of the established vendor’s revenue streams. The existing vendors are not idling either but have major functional pieces coming in the next quarters. And I expect new HCM software categories to emerge… but now I get carried away into predictions… this was all about a review of 2014.

What were your key activities of 2014? – please share them in the comments below. 

 

Future of Work Tech Optimization Innovation & Product-led Growth New C-Suite Data to Decisions Next-Generation Customer Experience Revenue & Growth Effectiveness Sales Marketing Digital Safety, Privacy & Cybersecurity ADP SuccessFactors workday SAP Oracle AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR LLMs Agentic AI Generative AI business Marketing IaaS Disruptive Technology Enterprise Acceleration Next Gen Apps IoT Blockchain CRM ERP finance Healthcare Customer Service Content Management Collaboration Chief People Officer Chief Information Officer Chief Customer Officer Chief Human Resources Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer

The State of the State of Privacy

The State of the State of Privacy

Constellation Research analysts are wrapping up a very busy 2014 with a series of "State of the State" reports. For my part I've looked at the state of privacy, which I feel is entering its adolescent stage.

Download Report Snapshot

Here's a summary.

1. Consumers have not given up privacy - they've been tricked out of it.
The impression is easily formed that people just don't care about privacy anymore, but in fact people are increasingly frustrated with privacy invasions. They're tired of social networks mining users' personal lives; they are dismayed that video game developers can raid a phone's contact lists with impunity; they are shocked by the deviousness of Target analyzing women's shopping histories to detect pregnant customers; and they are revolted by the way magnates help themselves to operational data like Uber's passenger movements for fun or allegedly for harassment - just because they can.

2. Private sector surveillance is overshadowed by government intrusion, but is arguably just as bad.
Edward Snowden's revelations of a massive military-industrial surveillance effort were of course shocking, but they should not steal all the privacy limelight. In parallel with and well ahead of government spy programs, the big OSNs and search engine companies have been gathering breathtaking amounts of data, all in the interests of targeted advertising. These data stores have come to the attention of the FBI and CIA who must be delighted that someone else has done so much of their spying for them. These businesses boast that they know us better than we know ourselves. That's chilling. We need to break through into a post-Snowden world.

3. The U.S. is the Canary Islands of privacy.
The United States remains the only major economy without broad-based information privacy laws. There are almost no restraints on what American businesses may do with personal information they collect from their customers, or synthesize from their operations. In the rest of the world, most organizations must restrict their collection of data, limit the repurposing of data, and disclose their data handling practices in full. Individuals may want to move closer to European-style privacy protection, while many corporations prefer the freedom they have in America to hang on to any data they like while they figure out how to make money out of it. Digital companies like to call this "innovation" and grandiose claims are made about its criticality for the American economy, but many consumers would prefer the sort of innovation that respects their privacy while delivering value-for-data.

4. Privacy is more about politics than technology.
Privacy can be seen as a power play between individual rights and the interests of governments and businesses. Most of us actually want businesses to know quite a lot about us, but we expect them to respect what they know and to be restrained in how they use it. Privacy is less about what organizations do with information than what they choose not to do with it. Hence, privacy cannot be a technology issue. It is not about keeping things secret but rather, keeping them close. Privacy is actually the protection we need when things are not secret.

5. Land grab for "public" data accelerates.

 

Data is an immensely valuable raw material. We should re-frame unstructured data as "information ore". More than data mining, Big Data is really about data refining but unlike the stuff of traditional extractive industries, data seems inexhaustible, and the cost of extraction is near zero. 

A huge amount of Big Data activity is propelled by the misconception that data in the public domain is free for all. The reality is that many data protection laws govern the collection and use of personal data regardless of where it comes from. That is, personal data in the "public domain" is in fact encumbered. This is counter-intuitive to many, yet many public resources are regulated - including minerals, electromagnetic spectrum and intellectual property.

6. Data literacy will be key to digital safety.
Computer literacy is one thing, but data literacy is different and less tangible. We have strong privacy intuitions that have evolved over centuries but in cyberspace we lose our bearings. We don't have the familiar social cues when we go online, so now we need to develop new ones. And we need to build up a common understanding of how data flows in the digital economy. Today we train kids in financial literacy to engender a first-hand sense of how commerce works; data literacy may become even more important as a life skill. It's more than being able to work an operating system, a device and umpteen apps. It means having meaningful mental models of what goes on in computers. Without understanding this, we can't construct effective privacy policies or privacy labeling.

7. Privacy will get worse before it gets better.
Privacy is messy, even where data protection rules are well entrenched. Consider the controversial Right To Be Forgotten in Europe, which requires search engine operators to provide a mechanism for individuals to request removal of old, inaccurate and harmful reports from results. The new rule has been derived from existing privacy principles, which treat the results of search algorithms as a form of synthesis rather than a purely objective account of history, and therefore hold the search companies partly responsible for the offense their processes might produce. Yet, there are plenty of unintended consequences, and collisions with other jurisprudence. The sometimes urgent development of new protections for old civil rights is never plain sailing.

My report "Privacy Enters Adolescence" can be downloaded here. It expands on the points above, and sets out recommendations for improving awareness of how Personal Data flows in the digital economy, negotiating better deals in the data-for-value bargain, the conduct of Privacy Impact Assessments, and developing a "Privacy Bill of Rights".

Digital Safety, Privacy & Cybersecurity New C-Suite Data to Decisions Sales Marketing Security Zero Trust Chief Customer Officer Chief Information Officer Chief Information Security Officer Chief Privacy Officer

CEN Member Chat: The State of Collaboration: 2015 Trends

CEN Member Chat: The State of Collaboration: 2015 Trends

Alan Lepofsky, Constellation Research VP & Principal Analyst, reveals the top 10 items to be aware of when purchasing collaboration software. 10 minutes

Future of Work Chief Customer Officer Chief People Officer Chief Information Officer Chief Marketing Officer Chief Digital Officer On <iframe width="600" height="300" src="//www.youtube.com/embed/YPr19IhULyo" frameborder="0" allowfullscreen></iframe>
Media Name: collab-trends-webinar2.jpg

Market Move - Oracle buys Datalogix - Moves more into DaaS

Market Move - Oracle buys Datalogix - Moves more into DaaS

Market move – Oracle buys Datalogix - the next gen Apps view

This morning we learnt that Oracle has acquired Datalogix, the provider of consumer data that fuels marketing campaigns.

Instead of dissecting the press release in the usual ‘myPOV’ fashion, let’s take a step back and see what this means for the Oracle acquisition strategy, the evolution of enterprise software and next generation applications.

Here are some key data points to consider going forward:



  • We are seeing the end of transactional applications - At this point large serial acquirers of enterprise software vendors like Oracle have no further attractive targets. Either from a valuation perspective (e.g. Salesforce.com), from a built in house and now good enough perspective (e.g. Workday) or a regulatory perspective – there are no more traditional enterprise software targets to acquire. So data service companies are a worthy target.

  • There is more than software to subscribe to – Oracle, probably better than its key competitors, understands that future revenue streams do not have to come from software subscription revenues alone, but can come also from data service royalties. 

  • Oracle is the only enterprise vendor serious on DaaS (so far) – Frankly I was surprised when Thomas Kurian positioned DaaS (Data as a Service) on equal footing with the usual three musketeers of the on demand world – IaaS, PaaS and SaaS. Back in spring 2014, more here. Datalogix is probably the largest acquisition that Oracle has made in the DaaS space.

  • When DaaS meets SaaS $s are made – From the press release it is also clear, that Oracle really understands that a winning combination of DaaS and SaaS is what secures long lasting revenue screens, creates software users like and need (aka becomes ‘sticky’) and excludes the competition very effectively. 

  • Oracle needs a BigData platform – The acquisitions of Micros and now Datalogix will stretch Oracle’s database capability in the BigData realm, but the vendor has the expertise and capital to address this. Let’s keep in mind we are talking about e.g. moving Datalogix data across many data center and possible even on premise installations (let’s not forget Oracle give the on premise install option for Fusion Applications).

 


MyPOV

A good move by Oracle, it now has added probably enough growth from acquisitions to make 2015 YoY comparisons favorable, even if it experience little organic growth. With financial analysts seldom making the ceteris paribus argument of how large both companies would be without an acquisition event, this is good news for Oracle. 


 
But the really exciting part will be to combine a network of POS data (from Micros), combined with Datalogix and Oracle Marketing applications. We know the main thrust for Digital Transformation is being executed in the marketing department, Oracle now has more offerings to open the heart (and wallets) for CMOs in 2015.

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Also worth a look for the full picture
  • Event Report - Oracle Openworld - Oracle's vision and remaining work become clear - they are both big - read here
  • Constellation Research Video Takeaways of Oracle Openworld 2014 - watch here
  • Is it all coming together for Oracle in 2014? Read here
  • From the fences - Oracle AR Meeting takeaways - read here (this was the last analyst meeting in spring 2013)
  • Takeaways from Oracle CloudWorld LA - read here (this was one of the first cloud world events overall, in January 2013)
And if you want to read more of my findings on Oracle technology - I suggest:
  • Progress Report - Good cloud progress at Oracle and a two step program - read here.
  • Oracle integrates products to create its Foundation for Cloud Applications - read here.
  • Java grows up to the enterprise - read here.
  • 1st take - Oracle in memory option for its database - very organic - read here.
  • Oracle 12c makes the database elastic - read here.
  • How the cloud can make the unlikeliest bedfellows - read here.
  • Act I - Oracle and Microsoft partner for the cloud - read here.
  • Act II - The cloud changes everything - Oracle and Salesforce.com - read here.
  • Act III - The cloud changes everything - Oracle and Netsuite with a touch of Deloitte - read here
Lastly - paying tribute to my Future of Work / HCM / SaaS research area:
  • Progress Report - Oracle HCM gathers momentum - now it needs to build on that - read here
  • Oracle pushes modern HR - there is more than technology - read here. (Takeaways from the recent HCMWorld conference).
  • Why Applications Unlimited is good a good strategy for Oracle customers and Oracle - read here.
Find more coverage on the Constellation Research website here.

 

Data to Decisions Digital Safety, Privacy & Cybersecurity Innovation & Product-led Growth Tech Optimization Future of Work infor workday salesforce SAP Oracle Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer

Oracle Ups the Their Analytics Game: Signs an Agreement to Acquire Datalogix

Oracle Ups the Their Analytics Game: Signs an Agreement to Acquire Datalogix

While difficult to do and very important, offline spending and digital marketing need to get connected. CMO’s need this data to make the right calls on their marketing mix and shape their priorities. Datalogix connects offline consumer spending to digital marketing to help marketers increase the effectiveness and measurability of their advertising.  It does this by aggregating and providing insights on over $2 trillion in consumer spending from 1,500 data partners across 110 million households to provide purchase-based targeting and drive more sales. They have over 650 customers, including 82 of the top 100 US advertisers such as Ford and Kraft, as well as 7 of the top 8 digital media publishers such as Facebook and Twitter use Datalogix to enhance their media. Oracle signed an agreement to acquire Datalogix.

How Does Datalogix  Fit Into The Oracle Cloud?

Oracle and Datalogix’s Data as a Service cloud solutions will provide marketers and publishers with the richest understanding of consumers across both digital and traditional channels based on what they do, what they say, and what they buy. This will enable leading brands to personalize and measure every customer interaction and maximize the value of their digital marketing. The ideas of contextually relevant content and offers is finally coming into it’s own. Will this results in the brand promises so many CMO’s are trying to deliver on?

  • The combination fundamentally transforms marketing automation from executing campaigns to being able to correctly identify consumers, target them accurately with digital campaigns, allow marketers to measure which campaigns and channels are effective, and optimize how they reach consumers and spend their campaign resources.
  • The addition of Datalogix represents a further extension of Oracle’s Public Cloud strategy to combine IaaS, PaaS, SaaS and Data as a Service on a common cloud and to transform SaaS business applications and processes by integrating data within these applications.

If you want more information, you can go here:

The press release: http://www.oracle.com/us/corporate/press/2395487

More information: http://www.oracle.com/datalogix

If CMO’s are going to be able to deliver right-time, real-time contextually relevant content, offers  and conversations, then this type of data is critically important. However, the question always remains how tech savvy are the CMO’s? Many have been focused on creative most of their careers. Today’s CMO must become tech savvy or at least have a staff that is. What would help? IT. But there’s long been a struggle between IT and functional department priorities.

With the advent of SaaS, many functional departments like marketing want to be able to stand up their own technology without being pushed to the end of the line of IT priorities. However, while SaaS allows marketers to do this, many of them might benefit by having a real partnership with IT, i.e., someone who is used to buying and implementing and optimizing technology. It will be interested to see how the relationships between IT vs. functional departments will pan out over the next year.  Will they collaborate or will they remain at a standstill? Will leaders at the CXO office step in to stop the corporate politics or do they even know they exist?

@drnatalie

VP and Principal Analyst, Constellation Research

Covering Marketing, Sales and Customer Service to Deliver of Great Customer Experiences

Data to Decisions Oracle Chief Marketing Officer

Christmas is around the corner – what Santa Claus can teach us about supply chain

Christmas is around the corner – what Santa Claus can teach us about supply chain

You better watch out
You better not cry
You better not pout
I’m telling you why
Santa Claus is coming to town
Santa Claus is coming to town
Santa Claus is coming to town

Yup, the big guy dressed in red is getting ready to make his annual appearance. Bringing all the girls and boys, as well as some lucky moms and dads, presents and gifts for their Christmas trees. And all he expects in return is maybe some milk & cookies or even a carrot for his reindeer. But did we ever expect Santa Claus to provide us with some simple lessons that are applicable to our supply chains?

He has the global fulfillment thing down...

He has the global fulfillment thing down…

  • He makes and list and checks it twice. Sage advice about how to handle all the data and information that extended supply chains produce and leverage on a weekly and daily basis. Many of the conversations I have had with supply chain practitioners and service providers comes back to getting a cleaner and more complete view of all the data that their supply chain produces on a weekly and daily basis. Look at what Santa is able to do – put all those wish lists in one aggregate list. He does check it twice to ensure consistency and correct for errors. Also good advice. Since we all know what garbage in gets us…companies like Avaya have worked with solution provider Kinaxis to create a more clear and single view of their distributor network and the data that is the connecting glue. One clean and unified view! Make sure to clear out that garbage before it gets into the system – or on Santa’s list.
  • Gonna find out who’s naughty or nice. Yup Santa also looks at his data to segment his customers. Granted he has two simple categories. Our supply chains’ customers and suppliers are also segmented and they do not fall into simple “naughty” or “nice.” But maybe the simplicity of how Santa does his segmentation should drive our own. The key is identify what key variables matter to our businesses and supply chains. Determine which variables you need to identify and focus on to create the most effective segmentation. Santa might not explicitly state it, but his segmentation like our supply chains leverages a greater number of predictive analytics to drive better clarity. For example service providers such as Infosys work with a large office products manufacturer to better understand customer segments to establish service level engagements. Santa and our supply chains need to lean on tools and service providers that can help identify the variables to effectively and efficiently segment our target audience.
  • He sees you when you’re sleeping …He knows when you’re awake. Maybe Santa has a secret deal with the NSA to eves drop on our calls…okay I joke…I think…but Santa makes sure he is aware of his consumers’ characteristics and where they are in the gift receiving pipeline. If we are awake he wouldn’t deliver our presents! Your supply chain needs to be sensitive to customers and where they are in the buying cycle. Think of how companies such as Steelwedge and Salesforce have worked together to help their customers better with the S&OP process by tying in the data coming from the Salesforce CRM to get a clearer view of where customers are with regards to the transactional pipeline. It is not simply about identifying our sleeping patterns, but understanding where we stand in terms of the buying cycle what our demand is and might be – are we in a position to have our gifts delivered by Santa?
  • Santa’s a busy man he has no time to play…He’s got millions of stockings to fill on Christmas day. Wow, talk about solving the delivery to the home enigma. Santa and his reindeer are able to criss cross the global, in one night, and accurately deliver a vast number of packages, of different shapes and sizes, to millions of locations! Unbelievable. Santa is also ahead of the curve as he has been able to provide home delivery since day 1. Now I am not saying we can all find a Rudolfo with his nose so bright to guide our fulfillment and logistics departments, but there is something to say about how integrated Santa’s workshop is with his distribution center and his logistics. He cannot be expected to demonstrate this level of efficiency is he stocks the wrong goods, doesn’t properly load them to his sleigh and then takes poor routes to his delivery locations. Clearly the value for supply chains to integrate the warehousing and transportation is what Santa’s efficiencies demonstrate.  Vendors like Oracle with their integrated WMS/TMS and now yard management (that is like what Santa does with regards to managing the elves and ensuring their are efficient) or JDA with their TMS integrated with the WMS acquired in the RedPrairie merger, are prime examples of solutions that even Santa would appreciate to ensure seamless optimization between the workshop and the big red sleigh – ensure the inventory that he has to haul around the world on the night of December 24th is properly slotted and routed.

The one aspect Santa does not seem to have worry too much about, is with returns. He does not seem to have a good reverse logistics or after sales service department. But since he has gotten so much of the upfront part right he does have to worry about delivering the wrong items! Alas our supply chains do not have that luxury, and our supply chains do need to take into account reverse logistics, returns, maintenance and other after sales issues. But thanks to Santa Claus we have something to aspire to with regards to our supply chains.

Merry Christmas! Happy Holidays!

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What Uber, Netflix & Amazon can Teach Big Pharma

What Uber, Netflix & Amazon can Teach Big Pharma

1

Pharma is no longer allowed to be tone-deaf. Public scrutiny, regulatory changes, and increasing real time access to stakeholder sentiments create the expectation to be timely and relevant. One industry reaction to be timely, relevant, and commercially empathetic is a paradigm dubbed multi-channel marketing (MCM).

However MCM does not automatically engage doctors. At best MCM messages, while digitally precise, are tone deaf.

Hence, MCM cannot be a final destination for pharmaceuticals; it is a rest stop. The increasing amount of data we know about healthcare providers (HCP) will create an auditable expectation for pharmaceuticals to “get HCPs” right. Netflix suggests what we watch, Uber knows our taxi preferences, Amazon guesses our purchases, and Google Glass presents live traffic; inevitably HCPs will expect pharmaceuticals to “just know” them.

MCM falls short of really “knowing” an HCP.

The differentiator between Netflix, Uber, Amazon, Google and the pharmaceuticals industry is a small thing called context. Knowing the context of a person, interaction, or message can improve how influence is exchanged. Brands can use context to engage instead of simply marketing. Context is not simple or easy, but powerful.

The importance of context to pharmaceuticals is not new; however, how context is identified, understood, and leveraged has shifted from depending on humans (sales representatives) to depending on information systems. This shift creates a problem.Information systems do not get context. As pharmaceuticals move further away from human-to-human interaction, increasing reliance on information systems to influence HCPs, the battle for context is lost before it has started.

We need a context renaissance.

To constructively discuss context, let us examine the difference between marketing and engagement.

What is a context renaissance?

At the core, the science of getting HCP context is about the buying journey more than it is about the selling journey.

While MCM focuses on optimizing how we influence HCPs on channels through selling, MCM + context focuses on how HCPs view themselves, and how they want to be influenced while buying, ergo engagement.

There is a pronounced inside-out, versus outside-in shift in thinking. Netflix for example is completely inside-out. Netflix does not suggest a movie based on external factors such as release dates, nor does it suggest only the best rated or most viewed. Netflix knows my internal viewer context and based on the time of the day, my location, my device, my connection, and my viewing habits, Netflix suggests the best movie for me.

Can the pharmaceutical CLM have the context sophistication to be the Netflix of brand presentations for HCPs?

This is a silly question, but a powerful idea.

Context is very personal, and it is behind a set of preferences that are not exposed to marketing channels. Context is nearly impossible for information systems to harness short of some miracle in contextual technology. We need to get into the circle of context, without invading privacy or overstepping boundaries.

To do this requires a delicate mix of psychology, information and analytics. Consider some examples.

Getting the psychology right.

  1. Is Dr. Smith an introvert or an extrovert?
  2. Is the persona of Dr. Singh that of a builder or an architect?
  3. Does Dr. Sung lead with her head or her heart?

Getting information right.

  1. Is Dr. Johnson discussing your brand as an alternative even when prescribing your competitor?
  2. Is Dr. Jain growing his business with a new office in the town over?
  3. Is Dr. Jerry reading your clinical trials, and to whom did she forward them?

Getting the analytics right.

  1. What is the probability that Dr. Adams will change her perception of your brand relative to her peers?
  2. Which of your sales representatives is better to influence a doctor who is an introvert?
  3. Does a specific brand presentation provide more value to male doctors versus females, or young doctors versus older ones?

We currently cannot answer most of these questions easily, but the answers are not unreachable. More importantly, while the answer to a single question is not earth shattering, having the answer to all nine of these can fundamentally change the way we market to doctors digitally. It can set a brand apart.

It can help us stop marketing digitally, and start engaging digitally.

 

In the gene pool of engagement, context is the single differentiator.

Almost a decade ago, the thought leadership of a Customer Interaction Hub (CIH) was introduced to the marketplace. The CIH promised to focus on interactions, extending CRM via MCM, and enabling brands to get the channels, direction of information, and speed of influence right. While novel, the CIH fell short by ignoring context.

A decade is a long time in technology. As a result the value of the CIH has expired. During the decade the construct of context became digitally reachable with new information sources, and hence the arrival of the next generation of marketing dubbed engagement. With it comes the birth of something new, the CustomerEngagement Hub (CEH). The Customer Engagement Hub can be thought of as all that made CIH great plus context.

Cegedim is delivering a Customer Engagement Hub designed specifically for Life Sciences. The Cegedim CEH will enable pharmaceuticals to understand the context of HCPs and satisfy the growing desire from doctors to be precisely understood by pharmaceuticals. No more tone deafness.

The Cegedim CEH builds logically on our innovation stack of CRM and other MCM technology, our world class MDM (Nucleus 360), and our global gold standard of HCP data (OneKey).

It is about the context, not the content, or the channels.

I write as a labor of love, in exchange I ask that you share this writing if you think others may find value,

-Richie

New C-Suite Next-Generation Customer Experience Chief Customer Officer

Constellation Research Named Top Firm of 2014

Constellation Research Named Top Firm of 2014

Thank you to our amazing customers and to my hard working colleagues for making Constellation Research the #1 Independent Analyst Firm of 2014.

Image:Constellation Research Named Top Firm of 2014

More information about the Institute of Industry Analyst Relations, visit their site here.
 

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Amazon – increases the pressure on retail – 1 hour delivery

Amazon – increases the pressure on retail – 1 hour delivery

Amazon announced earlier that in New York City…okay in one zip code of NYC – 10001 – it will offer 1 hour delivery of tens of thousands of items for customers in that zip code. Click here for press release. This service will be for those customers to are Amazon Prime members and cost an additional $7.99 (2 hour deliver is free), another “perk” for paying to be part of the cool kids on Amazon.com. It would appear that the new Amazon store on 34th street will be tasked with handling much of the distribution for these potential customers. While the 1 hour delivery is limited to this area code for now, the retail giant plans to expand to other cities in the near future. I wonder if Boston is on their list of potential target cities…hmmm.

This should come as no surprise as Amazon continues to act as the 800lb gorilla when it comes to retail and supply chain. The idea of such rapid delivery is also not a new one. Anyone remember Kozmo.com? During the dot com boom that cool .com company could be seen in many an office lobbies delivering everything from ice cream to the latest CD from TLC. Alas they could not solve the issues of having to carry such a wide array of inventory with order runs that could not cover the carrying costs, delivery costs etc. So should we expect Amazon to fare better? Maybe. The have a couple of factors in their favor that Kozmo.com did not:

  • Years of experience with running distribution centers – unlike Kozmo.com that really started as a company leveraging bike messengers to pick up small orders and deliver them, Amazon is a well oiled machine when it comes to understanding the nuances and challenges of running DCs with large arrays of SKUs. Their move into the 34th street location was seen by some as curious. But for Amazon it was clearly just the ability to place another potential distribution hub closer to its target audience.
  • Vast amounts of buying behavior data for those Amazon Prime members in that zip
    Just this little slice of the Big Apple

    Just this little slice of the Big Apple

    code…and else where for that matter. Amazon has years of historic data for those that sit in the 10001 zip code (about 20,000 people). And as we all know, Amazon is very good at figuring out what to suggest for our next purchase and even claim to know what to put on the truck before we even order it. Of those tens of thousands of items that could be delivered in that zip code, I have a feeling all the purchase data being analyzed in the Amazon cloud has identified the 1,000s (maybe only hundreds) of most likely items that are most likely to be ordered for those customers.

  • A war chest that Kozmo could only dream of. I think it is safe to say that Kozmo.com could only dream of one day having the war chest Amazon can dip into. With over $5b of cash on hand, Amazon can afford to lose money on their delivery model as they work out the details. And unlike Kozmo.com, Amazon is only servicing one part of Manhattan. I bet the bike messengers from Kozmo.com would have appreciated that much more!

What cannot be under-emphasized is the impact this will have with regards to firing another salvo across the bow of the retail world. Just like with other bold moves – think drone delivery – this  move by Amazon is as much to test out a new fulfillment and commerce model as it is to cause ripples through the retail world and beyond. The digital disruption it will create is  disproportional to the actual disruption, but it will force companies and supply chains to once again figure out how to combat Bezos and Amazon.

I wonder how de Blasio will feel once Amazon looks to fly drones up and down 34th street.

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