Business Technology Roundtable

Many CEOs say their company is all-in on AI. Every one of their earnings calls touts AI integration. Their strategy deck features the words AI-powered a dozen times. Yet when I review these same organizations, I encounter a starkly different reality: employees using consumer  Generative AI (GenAI) tools in secret, departments building redundant solutions, and confusion about what AI transformation actually means. Recent research from Google also reveals the inconvenient truth: Just 3 percent of organizations have achieved meaningful AI transformation. However, 97 percent remain mired in what I call AI aspiration fantasy theater. This isn't a technology problem. The GenAI tools work. The models are remarkable. The issue is that we've fundamentally misunderstood what meaningful and substantive AI transformation requires. The Executive Blind Spot The data reveals a troubling pattern: executives are 15 percentage points more likely than their employees to believe that AI is alread...

Telepresence and other forms of advanced visual collaboration technologies are moving further into the mainstream of forward-looking business practices. This increase in adoption has been a global phenomenon, as more business leaders follow the numerous application examples of the early-adopters. Infonetics Research released excerpts from its second quarter 2011 (2Q11) "Enterprise Telepresence and Video Conferencing" report. Their findings demonstrate the progress that's been made so far this year. Their latest market study provides insights on market size, vendor market share, and analysis for PBX-based video phones and software, as well as dedicated video conference infrastructure and endpoints -- including immersive telepresence and software. Forecast for Continued Double-Digit Growth For the first 6 months of 2011, enterprise telepresence and video conferencing equipment revenue is up 24 percent year-over-year -- and according to the current Infonetics market...

The transition to managed cloud services is having a trickle-down effect on various stakeholders in the business technology landscape. As an example, in the evolving enterprise communications market, customer premise equipment (CPE) vendors must confront imminent erosion in their installed base -- as cloud services gain traction across the public, private, and hybrid cloud domains. According to the latest market study by ABI Research , 41 percent of all enterprise communications users -- or 386 million lines or seats -- will be on virtual infrastructure by 2016, which is posing a serious danger to the traditional CPE market. "For CPE vendors, the cloud threat is real," says ABI senior analyst Subha Rama. "By 2016, the communications CPE market will only grow 4.3 percent, while cloud communications will grow by over 21 percent, reaching $8 billion in revenues." Smaller vendors with point solutions will see cloud services rapidly displace their installed base...

More IT managers will turn to cloud services to accelerate their responsiveness to business needs. Quicker IT deployments, end-user self-service, and reduced start-up costs equate to faster time-to-market for many organizations. Others will want to take advantage of the ability to pivot more quickly and adapt to market changes. Beyond the desire for better, faster and cheaper processes, cloud services will enable entirely new business models and associated revenue streams. Acceptance will advance as cloud architectures prove out the opportunities for real business innovation and new functionality. There is no single journey to cloud adoption, but rather a wide variety of entrance ramps and paths. On the demand side, organizations have different starting points and different objectives. Fortunately, public cloud computing services can unleash an exciting mix of new technologies, architectures, and organizational approaches. Let’s consider the needs of the evolving media sector. ...

Gartner recently shared their top technology predictions. They said that increased transparency -- and the need to drive business value -- are bringing disruptive change to IT organizations in 2011 and beyond. One of their key findings: cloud computing will enable many organizations to exploit internal capabilities to establish new business service revenue streams. Other informed industry analysts share a similar point of view. Businesses are increasingly moving their computing and collaboration applications to the cloud, and their shift in IT spending reflects that change in behavior. A recent market study by In-Stat forecasts cloud computing and managed hosting spending by U.S. businesses will surpass $13 billion in 2014, up from less than 3 billion today. “Although spending across all sectors and size of business is projected to grow, there are some segments where growth will be staggering,” says Greg Potter, Research Analyst at In-Stat. Apparently, based on In-Stat’s ass...

Telepresence video communication systems enable groups of people to meet and collaborate in multiple locations worldwide -- while feeling as if they were all in the same room together. Executives can now equate the full positive impact from several tangible benefits of utilizing telepresence systems, according to the results of a new market study commissioned by the Carbon Disclosure Project . U.S. and U.K. businesses that substitute some business travel with telepresence meeting services can cut CO2 emissions by nearly 5.5 million metric tons in total -- the greenhouse gas equivalent of removing more than one million passenger vehicles from the road for one year -- and achieve total economy-wide financial benefits of almost $19 billion, by 2020. Other conclusions of the global market study determined a business with $1 billion or more in annual revenue that utilize four telepresence rooms could: Achieve a financial return on investment in as little as 15 months. Save nearly 900 busin...

The accelerating Organic IT phenomenon is being driven by executive frustration that today's business technology demands are not being fully met by their internal support organization. Some IT teams, however, have taken decisive action to free-up time to become more responsive to their savvy user's requests for new capabilities. Perhaps that's a key leading indicator why remote managed services have emerged as a rare growth area within this tough economic environment. Clearly, proactively increasing business process agility and cutting operational costs has never been more popular. As a result, annual spending on remote managed IT services by the North American Small and Medium Business (SMB) sector is expected to increase 3.3 times in the next five years. That represents a compounded annual growth rate of 28 percent, according to the latest market study by AMI-Partners . Extracting Value from Business Technology "While SMBs have been steadily increasing their relian...

How can your company get started with cloud computing? Well, consider following the market leaders. With a few more months of client experience, Forrester Research recently addressed the major questions that executives have about the adoption of cloud services. The key benefits that most early adopters report do not start with costs -- but rather with business flexibility. According to those that have deployed it, the benefits of cloud computing, in order of importance, are: 1. Improving time-to-application deployment. Cloud platforms give you the option of developing and deploying new applications on existing infrastructure as quickly as desired. Traditional platforms can take up to three or four months to procure, install, and configure, stalling the application deployment process. 2. Aligning IT budgets with application demand. How many Web applications does your organization deploy without exactly knowing how popular they’ll be or how much capacity you’ll need to accommodate tha...

Cisco conducted one of the first comprehensive studies of the factors associated with successful adoption of network-based collaboration solutions . You can use the study results to maximize your return on investment from today's online collaboration tools. One way is to implement business practices shown to lead to more enthusiastic collaboration. Another is to identify and then actively support the employees who are most likely to benefit. Twenty First Century Collaboration Collaboration is a process that brings people and information together to accomplish a common goal. What's new today is that in a connected world, people no longer have to be in the same location, time zone, or culture to collaborate. Tools such as videoconferencing (or TelePresence ) and web sharing enable real-time collaboration across distance. Blogs, wikis, and shared workspaces enable online collaboration across time boundaries. Cisco conducted the first formal segmentation study of collaboration tool...

Human talent fuels the business model creativity and process execution that drives today's leading enterprise innovations -- the ones that every executive truly wants to emulate. That's why savvy managers will always choose to hire the best talent -- regardless of where those key people may reside. The common obstacle, of course, is finding both productive and cost effective ways to regularly bring together a geographically distributed talent pool. Online collaboration is one approach many business leaders will consider. The growth of globally disbursed teams demands that online collaboration tools are flexible, scalable and easy to deploy. Moreover, project-centric teams often can't predict the "when and where" they’ll need to reunite their subject matter experts for an impromptu task. IT managers are increasingly being told to move from a rigid just-in-case technology investment model to a much more agile just-in-time methodology. So, what's fueling that ne...

Many of the visitors to the AT&T booth at the VoiceCon 2009 are having their first experience of a TelePresence solution in action. Tina Vestal, customer care center manager at CHEP, perhaps sums it up best with her assessment -- "it's amazing!" Earlier this week, BAE Systems Land and Armaments, part of the third largest defense company in the world, agreed to enhance their global employee collaboration and productivity with the AT&T Telepresence Solution . BAE Systems will use Telepresence to provide an in-person meeting experience with executive leadership and engineering teams across the U.S., and the United Kingdom. This capability will also be expanded to Sweden, South Africa and other regions in the future. Their TelePresence applications are intended to be far reaching, across numerous parts of their organization. Live video-based meetings will help them accelerate decision-making processes and problem-solving for high-priority projects. More Productive M...

Business Technology related market research used to be targeted primarily at the CIO or IT manager roles within an organization. How times have changed. Research and Markets has added the "Business Technology Trends & Impacts Advisory Service" subscription to their market study offerings. The service is designed to help all savvy business decision makers develop and implement an effective IT strategy , plus take advantage of the opportunities -- and face the many challenges -- today's rapidly evolving business technology changes will bring. Developing a Plan of Attack Clients will receive the usual forecasts and predictions, as well as the strategic implications of those predictions. Subscribers receive advice on practices they can employ now to help organizations succeed within the turbulent economic environment. The Cutter Business Technology Council is the source of this insight, which includes a team of IT authorities who use a collaborative forecasting approach ...

While most business leaders globally are planning on keeping their IT budgets flat and there will be no growth in 2009, a recent market study by analyst firm Datamonitor reveals that in some countries, people are much more confident about their future outlook -- with planned IT budget increases exceeding the decreases. “It is clear there has been a noticeable decline in enterprise confidence. However, the findings are not as negative as might have been expected”, says Daniel Okubo, technology analyst with Datamonitor. “Despite the rise in the proportion of IT budgets which are remaining flat, there are still a sizable proportion of enterprises which are planning to increase IT expenditure. Technology vendors should be keenly aware that the economic conditions of a country directly impacts enterprise IT budgets.” Reacting to the Downside Datamonitor surveyed 520 IT decision makers towards the end of 2008 to gain a better understanding of how business and IT decision makers are reacting...

In the past few months, AT&T has announced increased demand for managed services on new contracts ranging from just under $5 million to more than $200 million, with companies in the private, public, and non-profit sectors. The range of both the deal size and the diverse applications indicates two key facets of managed services: its advantages truly span multiple business sectors, and organizations can deploy it by selectively out-tasking their networks. The $4.9 Million Managed Services Contract For instance, Evansville, Indiana-based Berry Plastics is consolidating a number of legacy networks into a single IP-based platform. You probably have one of the plastic products in your home that Berry Plastics manufactured. The multinational company has 68 manufacturing facilities worldwide and nearly 14,000 employees. Its $4.9 million contract with AT&T includes the creation of an IP-based virtual private network (VPN) for its 76 domestic locations. Alan Letterman, manager of IMS E...

What's motivating you to think about managed network services? Is it cost? If so, you'll be surprised to hear that you're somewhat behind the times. A new report cites six top reasons companies turn to managed services, with cost ranking all the way down the list at number four. According to Warren H. Williams, Vice President and Senior Program Director of IntelliCom Analytics -- a market research firm focusing on managed services, outsourcing, and other technologies -- cost was a big factor several years ago. Today's list of motivations, however, looks like this: ● Improved overall network performance ● Increased network reliability ● Increased network availability ● Reduced operations cost ● Improved network quality of service ● Reduced business risk Cost Superseded by Convergence Cost is still important, certainly, but Williams' research over the last three years reveals a growing shift in priorities. "The corporate network has become a strategic resource; ...

While traveling across North America in recent weeks, I've heard about the same two-part trend from multiple sources: Some small businesses are reducing their IT service contracts and delaying outsourcing decisions. But on the flip-side, mid-size businesses are accelerating their move to managed services . These trends are pretty easy to explain. Consider this: 18 percent of small-business owners in October said they were at risk of going out of business because of economic conditions, up from 9 percent in August, according to an American Express survey involving 602 businesses with 100 or fewer employees. Even worse: 79 percent of small-business owners said sales are decreasing. About two-thirds of the respondents said the tightening of credit has affected their business. 51 percent said they have had to tap personal assets in order to pay business expenses. With those concerns in mind, it's increasingly difficult for small business owners to focus on their IT strategies. The...

At first glance, some small businesses are caught in a technology paradox: They need modern technologies to drive revenue higher. But they don't have enough cash to acquire that technology. A recent American Express survey found that more than half of today's U.S. small business owners are experiencing cash flow problems, reports StartupSpark.com . As a result, the top priority for most small businesses is maintaining current sources of revenue -- rather than building new ones. Have Your Cake and Eat it Too I say: Why not pursue both goals? Fact is, you don't need very deep pockets to leverage modern technology. What you really need is a predictable cost structure -- a way to know exactly how you're going to continue innovating without suffering from surprise IT costs. By now, you likely know where I'm heading: Predictable managed services contracts can help many of those worried small business owners get a handle on their IT costs. Our company, for instance, pays ...

According to a recent McKinsey & Company report, their research results demonstrated that the potential for managing servers and other IT resources remotely is essentially underutilized. However, changes in the current business environment will increase the adoption of this approach. Plato, a wise Greek philosopher, wrote about how "necessity is the mother of invention." Certainly, that perspective is equally valid today. The motivation for utilizing the resources of a service provider can be considerable. A case in point: Fortune 50 companies, with budgets of $2 billion, can save as much as $500 million of their IT infrastructure budgets. How, you may ask? Apparently, it's mostly from reducing fully-loaded labor costs. Evaluation of IT Assets and Liabilities McKinsey surveyed 141 CIOs at multinational corporations, and 34 percent of them said that they anticipate utilizing some infrastructure management services over the next three years -- which is an increase from...

It is time for IT and business decision-makers to get over their fears of 'out-tasking' various aspects of their daily operations to specialized service providers. Today's turbulent economic climate, intensifying competitive landscape and changing workplace requirements demand that organizations of all sizes re-think their business technology sourcing strategies. What I believe is still inhibiting many IT or business decision-makers from adopting Software-as-a-Service (SaaS) and managed services are a few common misconceptions and interrelated fears. Gain New Perspective, with Sharp Focus For instance, too many IT and business decision-makers continue to resist a growing assortment of SaaS and managed services which can address their business application and IT management needs because they are concerned about losing control, sacrificing performance and/or dealing with additional security risks. While all of these are legitimate concerns, THINKstrategies has found that th...

Can the current economic environment actually create an opportunity? Even though the present financial crisis will adversely affect capital investment, the uncertainties are also creating new demand for the application of certain business technology offerings. "In particular, ICT solutions that shift costs from a capital to variable component, focus on productivity increases and cost reduction, and support organizational restructuring and acquisitions are likely to see growing demand," says Andrew Milroy, ICT director at Frost & Sullivan . Four Areas of New Demand This belief that there will be a strategic increase in IT demand is the result of the consulting company's latest global market study. While their assessment acknowledges some ICT setbacks, it identifies four key areas that are likely to experience heightened demand -- sustainable IT; outsourcing, managed and hosted services; information management tools; and those services that support mergers and acquisiti...