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Nexus of Forces Will Drive More Than 26% of Total Enterprise Software Market Revenue by 2017

Enterprise software buying is increasingly shaped by the Nexus of Forces, according to Gartner, Inc. Gartner said that technology providers must realize that the disruptive forces of cloud, information, mobile and social will reach mainstream status in 2014 and create new technology requirements, drive new purchasing and establish new competitive realities.

2017, Gartner estimates that new IT buying based on the Nexus of Forces will drive more than 26 percent of total enterprise software market revenue, up from 12 percent in 2012. This represents more than $104 billion to new worldwide enterprise software revenue from cloud, information, mobile and social initiatives in 2017.

  • Cloud-Based Services


  • Cloud and SaaS popularity and adoption have continued to increase since 2008. Buyers are under pressure to mitigate operational costs, evaluating less-capital-intensive alternatives and more modern software. In addition, annual increases in technical support and maintenance fees and business disruption because of upgrades from suite vendors are prompting IT managers to evaluate other options and vendor choices.

    Cloud-based offerings need to be tailored to specific needs and requirements. First-time purchases are commonly characterized by short time frames, limited computing requirements, and line-of-business or departmental buying. More comprehensive and mature usage of cloud-based offerings is more strategic and frequently represented by long-term projects to transform technology access/use with oversight and funding from IT management.

  • Information, Analytics and Content


  • While business intelligence (BI) and analytics have been a top CIO priority for years, recent purchasing patterns show that spending with CIOs is in more of a "wait and see" mode. Most net new spending is currently driven from outside the IT department. BI, analytics and data analysis are well-established for most large companies in traditional subject areas, such as finance and sales, but there is still extensive growth potential for diagnostic, predictive and prescriptive projects.

    Enterprise content management (ECM) can be viewed as both a business-IT strategy as well as a set of software technologies. As an IT strategy, ECM helps organizations take control of their content and, in so doing, boost effectiveness, encourage collaboration and make information easier to share. As software technologies, ECM consists of applications for content life cycle management that interoperate, but that can also be sold and used separately.

    Mobile and social forces are frequently leveraged for new ECM projects with purchasing from line-of-business managers and marketing/sales groups. New strategic and sophisticated ECM initiatives are being funded at the CxO level to focus on information governance and regulatory compliance requirements.

  • Mobility


  • Emphasis over the next few years will be on providing enterprise-class support for mobile data and applications, rising on top of the existing enterprise mobile architectures. This will be driven by key technologies, such as enterprise mobile management systems (EMMSs), mobile containers, enterprise application stores and mobile collaboration.

    Tablet and mobile users are demanding mobile device applications that exploit the capabilities of these devices and that can integrate into existing corporate systems. This trend is pushing the application software market in a new direction, and a mobile application product strategy has become a strategic imperative for all application vendors.

  • Social and Collaboration


  • The promise of the converging social, mobile, cloud and information forces is directly relevant to delivering successful collaboration and social software initiatives.

    For many organizations, first-time internal usage of social and collaboration software is primarily focused on individual and small-group communication and sharing. For organizations that are looking to move from an initial or trial phase to a richer experience and more sophisticated stage of usage, emphasis shifts to focusing on collaboration in the context of work activities. This includes enterprise-level commitments for collective intelligence, community building, knowledge sharing and virtual teaming as key drivers of expanding and enhancing usage. IT managers need to work with their users so that social and collaboration software blends naturally with the tasks they need to carry out every day.

    [Full Article]   Dec-15-2013

     

    U.S. CIOs Reveal Hiring Plans

    The just-released Robert Half Technology IT Hiring Forecast and Local Trend Report shows that 16 percent of U.S. chief information officers (CIOs) surveyed recently plan to expand their IT teams in the first half of 2014. This is up 5 points compared to projections from the previous six-month period (July-December 2013). Another 67 percent plan to hire only for open IT roles, 15 percent plan to put hiring plans on hold, and 2 percent expect to reduce their IT staffing levels in the first six months of the year.

    The surveys were developed by Robert Half Technology and conducted by an independent research firm. In order for the study to ensure that companies from all segments were represented, the sample was stratified by number of employees. The results were then weighted to reflect the proper number of employees in the U.S. Robert Half Technology is a leading provider of IT professionals on a project and full-time basis and has been tracking IT hiring activity in the United States since 1995.

    Key findings include:

  • Recruiting Challenges


  • In terms of recruiting, 63 percent of U.S. CIOs said it's somewhat or very challenging to find skilled IT professionals today, compared to 68 percent in the last half of 2013. It is most challenging to find skilled talent in the functional areas of networking (17 percent), security (14 percent) and help desk/technical support (13 percent).

  • Confidence in Business Growth and IT Investments


  • The survey results suggest U.S. CIOs are becoming more optimistic about their companies' growth and IT investments. Eighty-eight percent of CIOs reported being somewhat or very confident in their companies' prospects for growth in the first six months of 2014. This compares to 86 percent in the last half of 2013.

    Sixty-nine percent of CIOs also said they are confident that their firms will invest in IT projects in the first half of 2014. This compares to 63 percent in the last six months of 2013.

  • Skills in Demand


  • Fifty-seven percent of U.S. technology executives surveyed said that network administration is among the skill sets in greatest demand within their IT departments. Windows administration and desktop support followed, each with 51 percent of the response.

    [Full Article]   Dec-15-2013

     

    CIO Research: 86% of Businesses are Failing to See the Strategic Value of Mobility

    Mobile Helix, the enterprise application and data security expert, announced the findings of an independent CIO survey of 300 IT decision makers in the UK and US; exploring how enterprises are making use of mobile technology. The research shows that although 78 percent of enterprises have a mobility strategy, 86 percent are failing to utilize mobility to transform their business or open new revenue streams.

    87 percent of CIOs believe that a majority of their employees would benefit from increased access to enterprise applications, like CRM, ERP and SharePoint on mobile devices. However, complexity concerns play a role in contributing to the reluctance of CIOs to invest more into mobility: 66 percent of CIOs say that they think that it’s too complex, and 72 percent say it’s too costly to integrate mobile innovations into legacy applications. Development, support and security concerns are also factors in limiting mobile initiatives. Yet, if these issues can be overcome, 70 percent of CIOs stated that there is support from their business to use mobility to drive strategic business value.

    Enterprises that fail to see mobility as a tool to transform how they do business and open up new revenue streams are missing out on the enormous potential strategic value of mobility. Only 14 percent of businesses surveyed are currently using mobility solutions to transform business processes, drive increased revenues and develop new income streams. Many CIOs are hesitant to fully explore the potential of mobility innovations as they believe the cost/benefit ratio of implementing them to be prohibitive.

    CIOs are most likely to use mobility as an extension of the office today. Less than half of enterprises are adding mobile-specific functionality to add value to specific enterprise applications. In terms of the mobile capabilities that businesses are actually integrating into their existing enterprise applications, secure offline access is the most common, with on-device storage and development tools to push real-time updates to workers. GPS/location-based capabilities are also becoming more popular.

    [Full Article]   Dec-15-2013

     

    More Firms Allowing Employees To Shop Online While At Work

    More employees may be bagging holiday bargains on the job this holiday season, a new survey suggests. Sixteen percent of chief information officers (CIOs) interviewed by staffing firm Robert Half Technology said they give their workers unrestricted access to online shopping sites — up from 10 percent last year. More than half (54 percent) said they allow on-the-job online shopping but monitor activity for excessive use. Less than one-third (29 percent) of CIOs said their firms block access to online shopping sites — down slightly from 33 percent a year ago.

    The survey is based on more than 2,300 telephone interviews with CIOs from a random sample of U.S. companies in 23 major metro areas with 100 or more employees. Robert Half Technology is a leading provider of IT professionals on a project and full-time basis.

    CIOs were asked, "What is your company's policy regarding employees shopping online while at work?" Their responses:



  • Block access to online shopping sites
    2012 - 33%, 2013 - 29%


  • Allow access but monitor for excessive use
    2012 - 55%, 2013 - 54%


  • Allow unrestricted access
    2012 - 10%, 2013 - 16%


  • Other/ don't know
    2012 - 2%, 2013 - 1%



  • Robert Half Technology offers three tips for employees who might shop online at the office this holiday season:

    Understand the policy. Don't assume your company's web policy is unrestrictive just because you haven't gotten official word. Check the company handbook, and ask around. If the policy is not clear, play it safe and use non-work times like your lunch hour to shop.

    Don't get 'lost in cyberspace.' With all the deals on Cyber Monday, you may be tempted to spend hours on end scooping up bargains. If your goal is to shop until you drop, take a vacation day.

    Limit online 'window shopping.' Conduct product research and price comparisons on your own time so you can make online purchases quickly — and get back to work faster.

    [Full Article]   Dec-08-2013

     

    Survey: Mobile and Social Technologies Complicate B2B Sales Processes

    Avanade, a global business technology solutions and managed services provider, released results from a large-scale global survey on the changing sales process and buying patterns of business and IT decision-makers. Avanade’s latest research shows the “consumerization” movement is shifting the sales process out of the control of the seller as enterprise buyers begin to mimic consumer shopping behaviors. With this shift, the value of the customer experience is now more important than price to business and IT decision-makers.

    News Highlights

  • Customer experience now tops price as the most important factor in a buying decision by an enterprise decision-maker. Notably, business buyers are willing to pay up to 30 percent more for a product or service that offers an improved customer experience.


  • Businesses no longer have control over information shared about their products or services. Sixty-one percent of business decision-makers report third-party sites and feedback from business partners, industry peers or social channels is more important than conversations with a company’s sales teams when making a purchasing decision.


  • To help navigate this change, companies are enlisting new people and departments to manage the customer experience. Compared to three years ago, customer service and call centers, IT and marketing are the leading groups now playing a larger role in the customer experience.


  • Seventy percent of respondents believe technology will primarily replace human interaction with customers in the next 10 years. Anticipating this change, businesses are making new technology investments, changing business processes and redesigning organizational roles. More than 80 percent of companies have changed at least one business process in the past three years to better interact with customers.


  • This new global study builds on findings from Avanade’s Work Redesigned research conducted in January 2013. Progressive companies are changing business processes to adapt to a new style of work influenced by mobile devices, collaboration tools and social technologies. In this latest survey, Avanade found that businesses are changing processes to embrace the new business buyer and by increasing customer service and support technologies (44 percent), increasing the number of employees interacting with customers (40 percent) and adding automation to the sales process (32 percent).

    There are business benefits to making these changes. The research shows that businesses investing in technology to support better customer service and modifying internal roles are seeing positive results. Specifically, the companies making these changes are experiencing increases in customer loyalty (61 percent), revenues (60 percent) and customer base (60 percent).

    Avanade surveyed 1,000 C-level executives, business unit leaders and IT decision-makers in 19 countries across more than 12 industries.

    [Full Article]   Dec-08-2013

     

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