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IDC’s 10 Predictions for CMOs for 2015

IDC PMS4colorversion 1 IDCs 10 Predictions for CMOs for 2015

By, Kathleen Schaub

What does IDC predict for tech CMOs and their teams in 2015 and beyond?

Sunrise%2B1 IDCs 10 Predictions for CMOs for 2015

Our recent report IDC FutureScape: Worldwide CMO / Customer Experience 2015 Predictionshighlights insight and perspective on long-term industry trends along with new themes that may be on the horizon. Here’s a summary.

1: 25% of High-Tech CMOs Will Be Replaced Every Year Through 2018
There are two dominant drivers behind the increased CMO turnover over the past two years. One driver centers on the cycle of new product innovations, new companies, and new CMO jobs. The second (but equal) driver centers around the required “fit” for a new CMO in the today’s tumultuous environment and the short supply of CMOs with transformational skill sets.

Guidance: Everyone in the C-Suite needs to “get” modern marketing to make the CMO successful.

2: By 2017, 25% of Marketing Organizations Will Solve Critical Skill Gaps by Deploying Centers of Excellence
The speed of marketing transformation and the increased expectations on marketing have left every marketing organization in need of updating its skill sets. In the coming years, CMOs will not only have to recruit and train talent but also create organizational structures that amplify and share best practices. Leading marketing organizations will become masters of the centers of excellence (CoE).

Guidance: Get out of your traditional silos and collaborate.

3: By 2017, 15% of B2B Companies Will Use More Than 20 Data Sources to Personalize a High-Value Customer Journey
Personalization requires a lot of data. CMOs do not suffer from a lack of data — quite the contrary. Today’s marketer has dozens, if not hundreds, of sources available. However, companies lack the time, expertise, and financial and technical resources to collect data, secure it, integrate it, deliver it, and dig through it to create actionable insights. This situation is poised for dramatic change.

Guidance: One of your new mantras must be – “do it for the data”.

4: By 2018, One in Three Marketing Organizations Will Deliver Compelling Content to All Stages of the Buyer’s Journey
CMOs reported to IDC that “building out content marketing as an organizational competency” was their #2 priority (ROI was #1). Content marketing is what companies must do when self-sufficient buyers won’t talk to sales people. While it’s easy to do content marketing; it’s hard to do content marketing well. The most progressive marketing organizations leverage marketing technology and data to develop a buyer-centric content strategy.

Guidance: Remember that it’s the buyer’s journey – not your journey for the buyer.

5: In 2015, Only One in Five Companies Will Retool to Reach LOB Buyers and Outperform Those Selling Exclusively to IT
IDC research shows that line-of-business (LOB) buyers control an average of 61% of the total IT spend. LOB buyers are harder to market to and are even more self-sufficient than technical buyers. To succeed with this new buyer, tech CMOs must move more quickly to digital, incorporate social, broaden the types of content, and enable the sales team to maximize their limited time in front of the customer.

Guidance: Worry less about how much video is in your plan and worry more about your message.

6: By 2016, 50% of Large High-Tech Marketing Organizations Will Create In-House Agencies
Advertising agencies have been slow to recognize the pervasive nature of digital. While many digital agencies exist and many have been acquired by the global holding companies, these interactive services typically managed as just another part of the portfolio of services the agency offers. Modern marketing practitioners realize that digital is now in the DNA of everything they do and are ahead of their agencies.

Guidance: Don’t wait. Take the lead.

Continue reading… 

 

2015 Will See Many Asia Pacific Internet of Things Solutions and Vendors Move Beyond the Hype, While Others Head Back to the Drawing Board

IDC PMS4colorversion 1 2015 Will See Many Asia Pacific Internet of Things Solutions and Vendors Move Beyond the Hype, While Others Head Back to the Drawing Board

International Data Corporation (IDC) envisions 2015 will be the year when Internet of Things (IoT) starts to deliver against the hype, but it will require vendors and customers alike to change their approach.

“Companies are always looking for ways to drive business transformation, deliver competitive differentiation and enhance the customer experience, and many are now realizing that the Internet of Things can help them deliver against these goals,” says Charles Reed Anderson, AVP, Head of Mobility and Internet of Things, IDC Asia/Pacific.

Anderson explains that 2014 has seen an explosion of new IoT-related solutions, including consumer wearables, smart home products and industrial IoT solutions.

“More importantly, however, is that 2014 has seen the maturing of the wider IoT technology vendor ecosystem, which helped ensure we have the capabilities to deploy complex IoT solutions today and deliver tangible value to governments, enterprise and consumers alike.”

Drawing from the latest IDC research and internal brainstorming sessions amongst IDC’s regional and country analysts, the following are the top 10 key IoT predictions that IDC believes will have the biggest impact on the APeJ IoT industry in 2015.

1) IoT to create new markets for retail brands

During the past year, IDC has witnessed an explosion in the consumer wearables market with new fitness bands, smart watches and smart clothing being launched from traditional OEM vendors and a multitude of tech startups and 3rd platform-born players.

IDC believes that 2015 will see an influx of consumer IoT embedded into consumer retail brands/ products. Partnerships between IoT vendors (including ODM/OEM vendors) and non-tech consumer goods’ brands will emerge rapidly to create a sizable market opportunity for the IT industry.

2) Smart Watches: Early adopters will be the only adopters…for now

New smart watches will be launched on an almost weekly basis from the leading global device manufacturers, the Chinese and Taiwanese ODM vendors and tech start-ups. While interest levels are high, IDC believes the early technology adopters will be the only adopters in 2015. The combination of the small screen size, immature application developer ecosystem, and limited functionality will prevent this from reaching the wider consumer market in 2015.

3) Wearables enter the enterprise

Basic wearables, which include devices fitness bands and clips that cannot load 3rd party software, will find a lucrative new market in enterprise customers. Employee tracking, integration into corporate wellness programs, and the creation of new business models that leverage basic wearables, especially fitness bands, to enhance the customer experience will see significant adoption in 2015.

4) Free services to drive consumer IoT adoption

There is a limit to how many consumer wearable products and services consumers will be willing to purchase. In 2015, IDC believes companies will start to offer free products and services to specific customer demographic groups, but they will insist they “own” the data that is produced by the devices. This data will then be leveraged to deliver personalized marketing and drive sales or sold to 3rd parties (regulation permitting).

5) Emergence of the glass solution provider

Connected glass devices will struggle in the consumer market, however, the enterprise business case exists for many industries, particularly those industries (e.g. major equipment manufacturers) that employ large workforces that spend considerable time at customer sites for training as well as maintenance, repair and overhaul (MRO) services. IDC expects some large equipment manufacturers to build out their internal capabilities and partner ecosystems to become a glass solution provider and to reduce their considerable travel costs.

6) Industrial IoT: Businesses “talk big”, but deploy practically

Most industries believe that IoT will forever change the way their industry operates, however, ongoing concerns about both up-front (CapEx) and ongoing (OpEx) costs as well as potential security and privacy issues will ensure the deployment of “practical” solutions in 2015. Customers will focus on deploying solutions that deliver quick impact and return on investment (e.g. energy management solutions) and leverage the cost savings generated to fund more dynamic solutions going forward.

See all ten predictions… 

What is Content Marketing? IDC’s Definition of Content Marketing

IDC PMS4colorversion 1 What is Content Marketing? IDCs Definition of Content Marketing

By, Sam Melnick

If you looked away for a split second you may have missed the rise of Content Marketing from “buzz word” to “must have”. In fact, at the beginning of 2014 CMOs at the largest technology companies reported that “Building out content marketing as an organizational competency” was the 2nd most important initiative, only behind measuring ROI. Since then, they have responded by putting more budget, staff, and energy into the area, yet there is still confusion around the topic. What exactly is Content Marketing? Is it a type of marketing asset? Is it a process or a technique? Or something else?


IDC’s CMO Advisory Service, has seen this issue first hand and to help remedy the situation the group has  published a document, What Is Content Marketing? IDC Defines One of Marketing’s Most Critical New Competencies. Included within is a formal definition for Content Marketing.

IDC’s Definition of Content Marketing

Content marketing is any marketing technique whereby media and published information (content) are used to influence buyer behavior and stimulate action leading to commercial relationships. Optimally executed content marketing delivers useful, relevant information assets that buyers consider a beneficial service rather than an interruption or a “pitch.”

What is Included Within Content Marketing?

A definition is a great start, but the question that follows is, “What is, and is not Content Marketing?” To help marketers become more grounded in this definition of content marketing the CMO Advisory Service has also published a guide for “Types of Marketing Assets.” In the graphic below you can see the break out of marketing assets into three categories:

  • Content Marketing Assets
  • Product Marketing Assets
  • Corporate Marketing Assets

Each is important to the company and within the marketing mix, but only content marketing is new in purpose and new in form. Also, key to remember is Content Marketing Assets are not replacements for Product Marketing Assets or Corporate Marketing Assets.

Types%2Bof%2BMarketing%2BAssets What is Content Marketing? IDCs Definition of Content Marketing

 

Meet the Virtual Sales Rep

IDC PMS4colorversion 1 Meet the Virtual Sales Rep

By, Kathleen Schaub

Air%2BTraffic%2BControl Meet the Virtual Sales Rep

Robert sits in an office near Provo, Utah at what looks like the console of an air traffic controller. But instead of directing jets through the airspace, he’s using Twitter to guide a software company’s buyer through her decision-journey. Part marketer, part sales, part tech service, Robert is one of an emerging breed of “virtual” sales reps. Could this be the dream team that B2B has been waiting for?

The B2B “Genius Bar”® as a Role Model

The “virtual” sales rep role in its ideal form provides the personalized, anticipatory, service of a five-star hotel. Think of it as the B2B version of an Apple Genius Bar – using virtual tools. The Apple executive team modeled the Genius Bar after Ritz-Carlton’s customer service. Hallmarks of this exemplary concierge service include a personal touch; a warm, friendly, attitude; and attention to satisfying customer needs at every step. Sales expert Anneke Seley says the “virtual” sales rep culture is a far-cry from the historical “me and my quota” rep.

Sales teams are finally coming to grips with digital age facts. The culture shift recognizes that engagement must be sensitive to the appropriate stage of the buyer’s decision-journey. “Buyers aren’t ready to buy until they are ready to buy”. Marketers all know by now that buyers prefer self-sufficiency and they avoid talking to sales people until the decision-journey is substantially complete.  IDC research shows that for tech products averages this distance averages about 50%. Now sales is also starting to appreciate that buyers are alienated when by placed prematurely into the arena. At the same time sales leaders don’t want to waste an expensive sales resource on someone who isn’t ready to buy.

Digital May Not be Enough

Content marketing is what companies must do to fill the gap when buyers won’t talk to traditional sales people.  Content marketing is a hugely important communication strategy and companies will not be successful without mastering it.

Yet, for B2B companies, a completely digital engagement solution may not ever be the right answer. For one thing, content marketing capabilities in most companies is still ramping. Even when content marketing becomes excellent, digital may never be personal enough. Some B2B solutions are so complex, customized, or require so much trust that a human must intervene for the buyer to be truly served.  It may also be in the vendor’s best interest to involve a good sales person early. One tech CMO told me that although the company could offer eCommerce, a human touch tripled the size of the deal.

Continue reading… 

IDC Reveals Worldwide Internet of Things Predictions for 2015

IDC PMS4colorversion 1 IDC Reveals Worldwide Internet of Things Predictions for 2015

Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”

FRAMINGHAM, Mass., December 3, 2014 – International Data Corporation (IDC) today hosted the IDC FutureScape: Worldwide Internet of Things 2015 Predictions Web conference. The presentation provided organizations with insight and perspective on long-term industry trends along with new themes that may be on the horizon. The Predictions Web conference series and accompanying IDC FutureScape reports are designed to help company leaders capitalize on emerging market opportunities and plan for future growth. An audio replay of today’s Web conference will be available this afternoon. To access the replay, please visit: http://bit.ly/IDCioTFutureScape2015.

  • ClicktoTweet:  @IDC Reveals #Worldwideinternetofthings #Predictions2015 – Register for the webcast replay here http://bit.ly/IDCioTFutureScape2015

The predictions from the IDC FutureScape for Internet of Things are:

  1. IoT and the Cloud. Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”.
  2. IoT and security. Within two years, 90% of all IT networks will have an IoT-based security breach, although many will be considered “inconveniences.” Chief Information Security Officers (CISOs) will be forced to adopt new IoT policies.
  3. IoT at the edge. By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.
  4. IoT and network capacity. Within three years, 50% of IT networks will transition from having excess capacity to handle the additional IoT devices to being network constrained with nearly 10% of sites being overwhelmed.
  5. IoT and non-traditional infrastructure. By 2017, 90% of datacenter and enterprise systems management will rapidly adopt new business models to manage non-traditional infrastructure and BYOD device categories.
  6. IoT and vertical diversification. Today, over 50% of IoT activity is centered in manufacturing, transportation, smart city, and consumer applications, but within five years all industries will have rolled out IoT initiatives.
  7. IoT and the Smart City. Competing to build innovative and sustainable smart cities, local government will represent more than 25% of all government external spending to deploy, manage, and realize the business value of the IoT by 2018.
  8. IoT and embedded systems. By 2018, 60% of IT solutions originally developed as proprietary, closed-industry solutions will become open-sourced allowing a rush of vertical-driven IoT markets to form.
  9. IoT and wearables. Within five years, 40% of wearables will have evolved into a viable consumer mass market alternative to smartphones.
  10. IoT and millennials. By 2018, 16% of the population will be Millennials and will be accelerating IoT adoption due to their reality of living in a connected world.

“The Internet of Things will give IT managers a lot to think about,” said Vernon Turner, Senior Vice President of Research. “Enterprises will have to address every IT discipline to effectively balance the deluge of data from devices that are connected to the corporate network. In addition, IoT will drive tough organizational structure changes in companies to allow innovation to be transparent to everyone, while creating new competitive business models and products.”

The IDC FutureScape report that this Web conference is based on will be published and available within the next 24 hours. To learn more about IDC Predictions and IDC FutureScapes, please visit:www.idc.com/Predictions2015.

For additional information about these predictions or to arrange a one-on-one briefing, please contact Sarah Murray at 781-378-2674 or sarah@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarah@attunecommunications.com.

Read the original release… 

 

In 2015, Technology Shifts Accelerate and China Rules, IDC Predicts

NYT

In the year-end predictions game, most technology forecasts tend to be either blue sky or boring, flights of imagination or a firm grasp of the obvious.

For the last several years, IDC has published prediction reports that generally avoid the pitfalls of the genre, and offer a useful framework for thinking about the trajectory of trends in technology. The technology research firm’s predictions for 2015, published on Tuesday, come in a 17-page report that is rich in numbers and analysis.

Beyond the detail, a couple of larger themes stand out. First is China. Most of the reporting and commentary recently on the Chinese economy has been about its slowing growth and challenges.

“In information technology, it’s just the opposite,” Frank Gens, IDC’s chief analyst, said in an interview. “China has a roaring domestic market in technology.”

In 2015, IDC estimates that nearly 500 million smartphones will be sold in China, three times the number sold in the United States and about one third of global sales. Roughly 85 percent of the smartphones sold in China will be made by its domestic producers like Lenovo, Xiaomi, Huawei, ZTE and Coolpad.

The rising prowess of China’s homegrown smartphone makers will make it tougher on outsiders, as Samsung’s slowing growth and profits recently reflect.

More than 680 million people in China will be online next year, or 2.5 times the number in the United States. And the China numbers are poised to grow further, helped by its national initiative, the Broadband China Project, intended to give 95 percent of the country’s urban population access to high-speed broadband networks.

In all, China’s spending on information and communications technology will be more than $465 billion in 2015, a growth rate of 11 percent. The expansion of the China tech market will account for 43 percent of tech-sector growth worldwide.

Another theme in the IDC report is the quickening pace of the move from older technologies to new ones. Overall spending on technology and telecommunications, IDC estimates, will rise by a modest 3.8 percent in 2015. Yet the top-line numbers mask the trends beneath. IDC predicts there will be growth of 13 percent in what the research firm calls “3rd platform” technologies (cloud, mobile, social and big data). By contrast, older technologies will face a no-growth “near recession,” according to IDC, and “will shift fully into recession” by the second half of next year.

IDC’s 3rd platform is similar to what Gartner, another big research firm, has called a “nexus of forces” sweeping through the industry. (Gartner’s ingredients are virtually the same as IDC’s with slightly different labels — social interaction, mobility, cloud and information.) The 1st platform, in IDC’s taxonomy, was the mainframe era, running from the 1960s into the 1980s. The 2nd platform included personal computers and the Internet, and began in the 1980s and ran through the middle of the first decade of this century.

Continue reading… 

Year of Accelerating Innovation on 3rd Platform: IDC India

IDC PMS4colorversion 1 Year of Accelerating Innovation on 3rd Platform: IDC India

IDC envisions 2015 will be a year of accelerating innovation on the 3rd Platform

Jaideep Mehta, Managing Director, IDC South Asia says, “It has been about two years since organizations started to explore the benefits 3rd Platform technologies could unlock for them. 2015 is finally expected to be a year of widespread adoption of the 3rd Platform – Social, Mobile, Cloud and Big Data. IDC expects the businesses to move from a saturated 2nd Platform to a now thriving 3rd Platform era. Recovering markets, growing capabilities and innovating leaders will act as catalyst during this transition phase making 2015 a significantly positive year for the India IT eco-system.”

IDC revised IT spending growth in the Asia/Pacific (excluding Japan) (APeJ) region down from 8.7% to 5.8% in 2014 followed by a very modest increase to 6.0% in 2015. IT spending growth for the rest of the 2014-2018 forecast period is expected to climb upwards to 6.4% in 2017.

IDC expects the APeJ region to remain a most reliable engine for growth with multinational companies (MNCs) and Asian enterprises alike continuing to relentlessly look to Asia for future opportunities.

More insights will be revealed in a forthcoming report, “IDC Asia/Pacific (excluding Japan) ICT 2015 Top 10 Predictions”.

Drawing from the latest IDC research and internal brainstorming sessions amongst IDC’s regional and country analysts, the following are the top 10 key ICT predictions in 2015 that IDC believes will have the biggest commercial impact on the APeJ ICT market.

1) US$15 billion of government funding in 2015 will turn ICT plans into battlefields innovators

In 2015, IDC expects government ICT investments to be focused on the consolidation and streamlining of scarce ICT resources, the attainment of better management tools for effective decision making, and cyber-security.

In the next two to three years, IDC expects several regional authorities to utilize new sourcing models for transformational ICT, such as 3rd Platform technologies (i.e. cloud, Big Data/ analytics, mobility and social), continued Smart City programs, connected smart machines and intelligent sensors (i.e. edge computing), and the Internet of Things (IoT).

2) 60% of enterprises in 2015 will structure IT into core vs Lines of Business (LoB) IT

In 2015, IDC predicts that 60% of enterprises will structure their IT departments into two functional groups: Core IT and a separate LoB IT function. For larger organizations, these groups will become physically distinct entities, but for most Asia/Pacific enterprises this separation will be logical, as the two kinds of roles will be distinctly different but the reporting structure may not differ.

3) The software-defined battle lines will get defined in 2015

The hybrid cloud, or federated datacenter, is still the current architecture of choice for organizations trying to align their IT infrastructure to the demands of the business.

Looking ahead to 2015 and based on the IDC Asia/Pacific Transformative Infrastructure (TI) Index, between 20-25% of all organizations will already have adopted Software-Defined Networking (SDN), Software-Defined Storage (SDS), or Software-Defined Datacenter (SDDC) to deliver on their hybrid cloud architecture (such as automation, showback and service catalog capabilities) across the region.

4) The agile development team will be in high demand in 2015 with growth in DevOps adoptions

IDC’s IT Services Survey found that 45% of businesses are undergoing or planning to undergo application modernization projects. Their ability to scale up 3rd Platform adoption will require changes to IT operation that bring agility and overcome siloed legacy systems. This need for speed will bring the first big wave of DevOps adoption in the region and will make agile development the de facto norm.

Continue reading… 

IDC’s 2015 CIO Predictions: Demand For Analytics Continues To Skyrocket

Forbes

By 2017, 80% of the CIO’s time will be focused on analytics, cybersecurity and creating new revenue streams through digital services .

These and other insights were shared today by IDC during the webinar, IDC FutureScape: CIO Agenda Leading the 3rd Platform business and technology transformation through 2015 and beyond.  IDC sees the shift to a service paradigm in IT accelerating, along with a greater reliance on partners, clouds and global sourcing through 2017.  Based on how often analytics was mentioned in the webinar, it’s clear IDC is getting a large number of client queries in this topic area.  Demand for analytics continues to skyrocket according to Joseph Pucciarelli, Group Vice President of IT Executive Programs Research.

The research firm also sees active cognition from smart analytics replacing passive analysis and interrogation, and the proliferation of analytics applications that are more contextual than today.

IDC also is predicting that by 2017, each person will have 24 digital IDs and five or more Internet-connected devices.  The research team emphasized that these devices will require more extensive platforms than exist today for supporting the wide array of services these devices will deliver. The proliferation of devices will lead to IT departments embracing a more flexible cost model that has the potential to reduce fixed costs and permit multiple sourcing arbitrage.

IDC’s methodology included interviews with 209 CIOs globally. IDC mentioned that a full report of the results will be available later in the week.  I will update this post with the link once it is available.

Continue reading…

Cloud Spending Going Skyward, IDC Predicts

Investors.com

Spending on public cloud computing services is forecast to grow at six times the rate of the overall information technology market over the next five years, IDC says. The research firm predicts that public IT cloud spending will hit $127.5 billion in 2018, up from $56.6 billion this year.

That represents a five-year compound annual growth rate of 22.8%. In 2018, public IT cloud services will account for more than half of worldwide software, server, and storage spending growth, IDC said in a report Monday.

The cloud services market is entering an “innovation stage” that will produce an explosion of new services and value creation on top of the Internet cloud, IDC said.

“Over the next four to five years, IDC expects the community of developers to triple and to create a 10-fold increase in the number of new cloud-based solutions,” IDC analyst Frank Gens said in a statement. “Many of these solutions will become more strategic than traditional IT has ever been.

“At the same time, there will be unprecedented competition and consolidation among the leading cloud providers. This combination of explosive innovation and intense competition will make the next several years a pivotal period for current and aspiring IT market leaders.”

The Davids are taking over the smartphone world

The Business Times

NEW data released by IDC on smartphone sales last week shows that there’s a new kid on the block. According to the research agency’s Worldwide Quarterly Mobile Phone Tracker, in the third quarter of this year, Chinese phonemaker Xiaomi zoomed to the No 3 slot in the global list of top five smartphone makers in the world, behind Samsung (No 1) and Apple (No 2). The Chinese company sold 17.3 million units in the quarter for a 5.3 per cent market, pipping Lenovo (5.2 per cent) and LG (5.1 per cent) to the third spot.

It’s true that, as IDC notes, Xiaomi benefited from its focus on China and adjacent markets. This, coupled with innovative marketing, brought triple-digit year-on-year growth. But, as IDC notes again, it remains to be seen how quickly the company can move beyond its home territories to drive volumes higher.

Was this a fluke, one-off phenomenon?

No, expect more non-traditional brands in the Top 5. This is because the next billion smartphone users are not going to come from established and wealthy markets such as those in North America, Europe, Japan and pockets of Asia such as Australia, Singapore and Hong Kong. They will come from emerging markets such as India, China, Indonesia and Brazil. These markets are characterised by less brand loyalty and extreme price sensitivity.

Read on…